/raid1/www/Hosts/bankrupt/TCR_Public/210701.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Thursday, July 1, 2021, Vol. 25, No. 181
Headlines
18 IRVING STREET: Seeks to Hire George Sarkis as Real Estate Broker
2408 W. KENNEDY: Gets OK to Hire Ferrell & Company as Accountant
AINSWORTH TRUCK: Wins Cash Collateral Access Thru Aug 31
ALEX AND ANI: Asks Court Okay for Creditor, Founder Settlement
ALGON CORPORATION: Wins Interim Nod to Use Cash Thru July 9
ALPHA AGRICULTURAL: Trustee Seeks to Hire Financial Advisor
ALPHA AGRICULTURAL: Trustee Taps Husch Blackwell as Legal Counsel
AMERICAN MOBILITY: May Use Cash Collateral Thru July 7
ATLANTA METRO: Seeks to Use Cash Collateral
AUSJ-MICH LLC: Seeks to Hire Hopson Law Group as Bankruptcy Counsel
BEAR COMMUNICATIONS: Has OK to Use Cash Collateral Thru July 2
BGT INTERIOR: Wins Cash Collateral Access on Interim Basis
BIOSTAGE INC: Stockholders Elect Ting Li as Director
BISON BUILDING: Gets OK to Hire Western Business as Accountant
BOURDOW CONTRACTING: Seeks 90-day Plan Exclusivity Extension
BRAD RAGAN: Has Deal on Cash Collateral Access
BRAZOS ELECTRIC: Asks Court for More Time to File Plan
BRIGHT MOUNTAIN: To Move to OTC Pink Market Due to Audit Delay
BULLDOGGE FITNESS: Wins Cash Collateral Access Thru July 31
BUTCHER SHOP: Case Summary & 20 Largest Unsecured Creditors
CARSON VALLEY MEDICAL CENTER: S&P Rates 2021A Revenue Bonds 'BB+'
CHANNEL CLARITY: Case Summary & 20 Largest Unsecured Creditors
CHARLESTON ORTHODONTIC: Court Wants Adversary Action Filed
CHICAGOAN LOGISTIC: Seeks to Continue Factoring Deal
CHICK LUMBER: May Use Cash Collateral Until September 30
COLUMBIA INDUSTRIES: Voluntary Chapter 11 Case Summary
COMMUNITY ECO POWER: Seeks Cash Collateral Access
COMMUNITY REGIONAL: Taps Littler Mendelson as Special Counsel
COMMUNITY REGIONAL: Taps Whitney Thompson as Special Counsel
COMMUNITY THERAPIES: Seeks Use of Cash Collateral
DECK SUPPLY: May Use $32,000 Per Month of SBA Cash Collateral
DIAMONDHEAD CASINO: Posts $413,435 Net Loss in Q1 2020
EARTH FARE INC: Bankruptcy Estate Gets Wind-Down Court Approval
FAMILY FRIENDLY: Seeks to Use Cash Collateral
FLORIDA: Resident Files Class-Action Suit After Condo Collapse
FLYNN CANADA: S&P Assigns 'B' Issuer Credit Rating, Outlook Pos.
FREDERICK LLC: Files Emergency Bid to Use Cash Collateral
GENEVER HOLDINGS: Court Extends Plan Exclusivity Until July 12
GEORGE WASHINGTON: Gets $43.5 Million Bid From JMB Capital Partners
GIRARDI & KEESE: May Be Able to Pay Creditors, Erika Girardi Says
GLOBAL COURIERS: Files Emergency Bid to Use Cash Collateral
GORHAM PAPER: Court Extends Plan Exclusivity Thru August 31
HANDL NEW YORK: Case Summary & 20 Largest Unsecured Creditors
HEO INC: May Use Cash Collateral Thru July 22
HOSPITALITY WOODWORKS: Plan Exclusivity Period Extended Thru Nov. 1
HOWARD AVENUE: Seeks to Employ W. Bart Meacham as Special Counsel
INDUSTRIAL REPAIR: Wins Cash Collateral Access Thru Sept 1
INTERNATIONAL WEALTH: New Budget Until August 18 OK'd
IRM EXPRESS: Wins Cash Collateral Access Thru Sept. 1
ISIS MEDICAL: May Use Cash Collateral Thru July 31
JACKSON DURHAM: Wins Cash Collateral Access Thru July 15
K&W CAFETERIAS: Bid to Use Cash Collateral Denied
KEYSER AVENUE MEDICAL: May Use Cash Collateral on Interim Basis
KNOTEL INC: Court Okays Chapter 11 Wind-Down Bankruptcy Plan
KOSSOFF PLLC: Court Refuses to Stay Suits Seeking Missing Funds
LEVEL EIGHT: Seeks to Employ Joyce Lindauer as Bankruptcy Counsel
LIVEXLIVE MEDIA: Delays Filing of Fiscal 2021 Annual Report
LIVEXLIVE MEDIA: Reports Fiscal 2021 Preliminary Results
LOUISIANA HIGHWAY: Wins August 13 Plan Exclusivity Extension
LW RETAIL: Seeks to Hire Sills Cummis & Gross as Special Counsel
MALLINCKRODT PLC: Gets Court Okay to Sell Neurodegenerative Drug
MATT'S SMALL ENGINE: Court Conditionally OKs Disclosure Statement
McELRATH LEGAL: Taps Einwag Morrow & Associates as Accountant
MIDNIGHT MADNESS: Seeks Interim Use of PNC's Cash Collateral
MONAKER GROUP: Streeterville Swaps $600K Note for Equity
MORTGAGE INVESTORS: Gets OK to Hire Holland & Knight as Counsel
MUSEUM OF AMERICAN JEWISH: May Use Cash Collateral Until July 19
MY FL MANAGEMENT: Wins Cash Collateral Access Thru Aug 23
NATCHITOCHES MEDICAL: Taps Postlethwaite as Financial Advisor
NHC FOOD: Case Summary & 20 Largest Unsecured Creditors
NINE POINT: Court Clears Ch. 11 Sale With Caliber Lien Protections
OPTION CARE: S&P Affirms 'B' ICR on Reduced Sponsor Ownership
PACIFIC FOODS: Files for Chapter 7 Bankruptcy
PARAGON OFFSHORE: Judge Considers Trustee's Ch.11 Fee Bid Offensive
PHILADELPHIA ENTERTAINMENT: 3rd Circ. Tosses $50M License Fee Suit
PURDUE PHARMA: Asks Court to Approve $5.39 Mil. Exec Payment Plan
RANDOLPH HOSPITAL: BA Says Plan Disclosures Inadequate
REDWOOD EMPIRE: Gets Cash Collateral Access Thru July 22
REGIONAL HEALTH: Joins Russell Microcap Index
RENNOVA HEALTH: Closes Acquisition Agreement with VisualMED
ROOSEVELT INN: Seeks to Hire Reed Smith as Special Counsel
RYAN 1000: May Use Cash Collateral Thru July 8
RYAN 8641 LLC: Gets Cash Collateral Access Thru July 8
SHARE ENERGY: Seeks to Employ Reese Baker as Bankruptcy Counsel
SHARPE CONTRACTORS: To Seek Plan Confirmation on Aug. 4
STARWOOD PROPERTY: S&P Rates Sr. Unsec. Sustainability Bonds 'B+'
STEM HOLDINGS: All Five Proposals Approved at Annual Meeting
SUZUKI CAPITAL: Unsecureds to Recover 2.5% in Plan
TALK VENTURE: Court Confirms Plan
TEN & FREE: Wins Cash Collateral Access on Final Basis
TRI-STATE SPORTS: Unsecureds to Get $100 Monthly Until Paid in Full
TUMBLEWEED TINY HOUSE: Wins Cash Collateral Access Thru July 31
TWO RIVERS: Pot Greenhouse Biz Booted From Settlement
VERTEX ENERGY: To Divest Motor Oil Collection, Recycling Assets
VICTORIA'S SECRET: S&P Rates New $500MM Sr. Unsecured Notes 'B+'
WALHONDE TOOLS: Case Summary & 20 Largest Unsecured Creditors
WALKER RADIO: Wins Cash Collateral Access Thru Oct. 31
WATERVILLE-MONCLOVA: Wins Interim Cash Collateral Access
WEST C BUILDERS: Seeks Use of Cash Collateral Thru Oct 31
WEST COAST AGRICULTURAL: Seeks Cash Collateral Access
WEST COAST AGRICULTURAL: Taps Troutman Law Firm as Legal Counsel
WHOA NETWORKS: Plan Exclusivity Period Extended Until July 26
WILDFIRE INC: Revised Deal Extends Cash Access Thru July 31
WIRECO WORLDGROUP: S&P Alters Outlook to Stable, Affirms 'B-' ICR
WOODBRIDGE HOSPITALITY: Taps 'Ordinary Course' Professionals
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
18 IRVING STREET: Seeks to Hire George Sarkis as Real Estate Broker
-------------------------------------------------------------------
18 Irving Street, LLC seeks approval from the U.S. Bankruptcy Court
for the District of Massachusetts to hire George Sarkis of Douglas
Elliman as its real estate broker.
The Debtor requires a real estate broker to market for sale its
real property located at 18 Irving St., Unit 1, Somerville, Mass.
Mr. Sarkis will be paid a commission of 4.5 percent of the gross
sales price or a reduced 3.5 percent if a direct sale.
In court filings, Mr. Sarkis disclosed that he is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
Mr. Sarkis can be reached at:
George Sarkis
Douglas Elliman
20 Park Plaza
Boston, MA 02116
Office: 617.267.3500
Mobile: 781.603.8702
Email: george.sarkis@elliman.com
About 18 Irving Street
Somerville, Mass.-based 18 Irving Street, LLC sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. D. Mass. Case No.
21-10776) on May 27, 2021. In the petition signed by Gina Strauss,
manager and sole member, the Debtor disclosed $1 million to $10
million in both assets and liabilities. Judge Janet E. Bostwick
oversees the case. The Debtor tapped Alex R. Hess Law Group as
legal counsel.
2408 W. KENNEDY: Gets OK to Hire Ferrell & Company as Accountant
----------------------------------------------------------------
2408 W. Kennedy, LLC received approval from the U.S. Bankruptcy
Court for the Middle District of Florida to hire Ferrell & Company,
P.A. to prepare its tax returns.
The firm charges between $1,200 and $1,400 for each tax return.
William Ferrell, the firm's accountant who will be providing the
services, disclosed in a court filing that he is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
William Ferrell, CPA
Ferrell & Company, P.A.
2726 W. Jetton
Tampa, FL 33629
About 2408 W. Kennedy
Tampa, Fla.-based 2408 W. Kennedy, LLC filed a voluntary petition
for relief under Chapter 11 of the Bankruptcy Code (Bankr. M.D.
Fla. Case No. 21-02578) on May 18, 2021. Christopher Scott,
managing member, signed the petition. At the time of the filing,
the Debtor disclosed total assets of up to $10 million and total
liabilities of up to $1 million.
Judge Michael G. Williamson oversees the case.
David Jennis, PA, doing business as Jennis Morse Etlinger, and
Ferrell & Company, P.A. serve as the Debtor's legal counsel and
accountant, respectively.
AINSWORTH TRUCK: Wins Cash Collateral Access Thru Aug 31
--------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas,
Corpus Christi Division, has entered an order approving Ainsworth
Truck Leasing, LLC's Expedited Motion for Entry of Agreed Cash
Collateral Order.
The Debtor and Kleberg Bank have represented to the Court that they
have agreed in good faith to the terms and conditions of the Agreed
Cash Collateral Order. The parties agree that the Debtor may use
cash collateral through August 31, 2021, subject to the provisions
of the Order and to collect and receive all rents, profits,
charges, and other accounts receivable and income generated by the
Collateral.
The Debtor acknowledges that Kleberg Bank is the current owner and
holder of secured claims against the Debtor in the approximate
amount, as of the Petition Date, of not less than $141,617 in
unpaid principal, plus any and all fees, charges, reasonable costs,
and any and all other amounts to the extent allowed by the
Bankruptcy Code and applicable law in accordance with the
pre-petition loan documents between the parties.
The Debtor also acknowledges that the Pre-Petition Indebtedness is
secured by valid, enforceable, and perfected first-priority
consensual liens and security interests in all personal property of
the Debtor not otherwise encumbered by a valid and enforceable
prior security interest, including accounts receivable.
The parties agree that Kleberg Bank holds liens and security
interests in the Collateral and Cash Collateral, plus any and all
other property of this estate, real and personal, as provided under
11 U.S.C. section 552(b), the Order, the Loan Documents, and
applicable law in an amount not less than the Pre-Petition
Indebtedness, without limitation.
To the extent Cash Collateral is used, the Debtor grants Kleberg
Bank, effective nunc pro tunc as of the Petition Date as partial
adequate protection of Kleberg Bank's Interest in the Collateral
and Cash Collateral, taking into account all factors in the case
and to the extent of any diminution or usage of Kleberg Bank's
pre-petition Collateral on a dollar for dollar basis, valid,
binding, enforceable, first-priority and automatically perfected
replacement post-petition liens and security interests in, to, and
against all of the properties and assets of the Debtor. The
post-petition liens and security interests granted to Kleberg Bank
by the Order will be senior to any post-petition assignment, lien,
or interest in favor of any other person or entity, except for the
U.S. Trustee's statutory fees imposed under 28 U.S.C. section
1930.
As further adequate protection in accordance with 11 U.S.C. section
363(e), the Debtor will pay Kleberg Bank, for the benefit of
Kleberg Bank, $17.17 per day payable on a monthly basis beginning
on or before the first day of the July 2021, and continuing on or
before the first day of each consecutive month thereafter until
August 31, 2021, an order of confirmation, dismissal, or conversion
to Chapter 7 is entered in the case, whichever occurs first. All
payments will be made in good funds.
The Debtor agrees to continue maintaining, with financially sound
and reputable insurance companies, full insurance coverage,
including insurance for the Collateral, in accordance with the
applicable provisions of the Loan Documents.
These events constitute "Events of Default":
(a) any default, violation, material non-compliance, or breach
of any of the terms of the Order by the Debtor;
(b) the maturity, termination, expiration, or non-renewal of
the Order;
(c) conversion of the Debtor's case to a case under Chapter 7
of the Bankruptcy Code;
(d) the appointment of a trustee in the Debtor's case;
(e) the dismissal of the Debtor's case; or
(f) the entry of any order reversing, revoking, rescinding or
vacating the Order without the express prior written consent of
Kleberg Bank.
A copy of the order is available at https://bit.ly/35YQiGy from
PacerMonitor.com.
About Ainsworth Truck Leasing, LLC
Ainsworth Truck Leasing, LLC sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 21-21142) on
May 19, 2021. In the petition signed by David Ainsworth, Sr., sole
member, the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge David R. Jones oversees the case.
Christopher Adams, Esq. at Okin Adams LLP is the Debtor's counsel.
Kleberg Bank, as lender, is represented by:
Lisa C. Fancher, Esq.
Fritz, Byrne, Head & Gilstrap, PLLC
221 West Sixth Street, Suite 960
Austin, TX 78701
Tel: 512-322-4708
Tax: 512-477-5267
E-mail: lfancher@fbhg.law
ALEX AND ANI: Asks Court Okay for Creditor, Founder Settlement
--------------------------------------------------------------
Law360 reports that the founder of bankrupt jewelry chain Alex and
Ani LLC, its Chapter 11 estate and its creditors have asked a
Delaware bankruptcy judge to approve a three-way settlement of
multiple suits and dueling claims over company-related debts and
control, clearing the way for a sale or reorganization.
In a motion for approval filed late Monday, June 28, 2021, the
company's bankruptcy principals asked the U. S. Bankruptcy Judge
Craig T. Goldblatt to move the agreement forward without the usual
14-day waiting period ordinarily imposed following approval.
Carolyn Rafaelian founded Alex and Ani in 2004 and was the sole
equity owner until 2012, at which time she sold a 40 percent
interest to San Francisco-based private equity firm JH Partners.
JH Partners sold its interest to LC A&A Holdings, Inc. ("LC
Holdings"), an affiliate of London-based private equity firm Lion
Capital LLC, approximately two years later.
On September 13, 2019, Ms. Rafaelian personally borrowed $5 million
from Lion Capital pursuant to a promissory note and guaranty of
payment (the "Promissory Note") to fund a portion of her
commitments under the $20 million Second Lien Credit Facility in
the 2019 out-of-court restructuring.
In April 2020, Lion Capital declared a default under the Promissory
Note following Ms. Rafaelian's failure to make the required monthly
interest payments.
On June 3, 2020, Ms. Rafaelian and several of her affiliated
entities sued LC Holdings in the United States District Court for
the District of Rhode Island seeking a declaratory judgment that
Ms. Rafaelian was not in breach of the Promissory Note and
enjoining LC Holdings from foreclosing, collecting, or levying on
any collateral securing the Promissory Note.
On June 15, 2020, the Promissory Note matured. Ms. Rafaelian
failed to timely make any principal or interest payments as
required thereunder.
On June 17, 2020, Lion Capital filed an action for summary judgment
in lieu of complaint against Ms. Rafaelian and certain affiliated
guarantors under the Promissory Note in the Supreme Court of the
State of New York, New York County.
On Oct. 28, 2020, the New York Supreme Court ordered Ms. Rafaelian
to repay Lion Capital the $5 million loaned under the Promissory
Note, as well as interest and attorneys’ fees.
On June 9, 2021, Carolyn Rafaelian, A&A Pledge Co., Venice Beach
Walk, LLC (collectively, the "Rafaelian Entities"), the Debtors, LC
Holdings and LC Intermediate (together, the "Lion Entities"), and
The Bathing Club LLC (the "Purchaser") entered into the Settlement
Agreement.
The Settlement Agreement is a significant achievement for the
Debtors and provides for a path to consensus and, ultimately,
emergence from chapter 11 as a going concern.
Pursuant to the Settlement Agreement:
* A&A Pledge Co. will sell its 35 percent interest under the
Second Lien Credit Facility to the Purchaser;
* LC Holdings will sell its 35 percent of the face amount of the
first lien obligations under the First and Third Credit Facility to
the Purchaser;
* the Rafaelian Entities will dismiss and withdraw the
Litigation with prejudice;
* the Rafaelian Entities, on the one hand, and A&A Shareholding
and its subsidiaries, the Lion Entities and the Purchaser, on the
other hand, will provide mutual releases;
* Ms. Rafaelian resigned from her position on the Board of
managers of A&A Shareholding contemporaneously with executing the
settlement;
* to the extent still in effect, the non-competition agreement
between Ms. Rafaelian and A&A Shareholding will terminate upon
entry of an order approving the Settlement Agreement; and
* the Purchaser will indemnify A&A Pledge Co. and its affiliates
and certain of their respective employees and representatives from
any claims or causes of actions arising out of: (a) the inaccuracy
of any representation or warranty made by the Purchaser; and (b) a
breach of any covenant of the Purchaser under the Settlement
Agreement.
About Alex and Ani
Founded in 2004 by Carolyn Rafaelian, Alex and Ani, LLC --
http://www.alexandani.com/-- has become a premier jewelry brand,
quickly gaining popularity because of the novel and customizable
nature of its signature expandable wire bracelet. Alex and Ani has
been headquartered in East Greenwich, R.I. since 2014. Since
opening its first retail store in Newport, R.I. in 2009, Alex and
Ani has expanded to over 100 retail store locations across the
United States, Canada and Puerto Rico.
Alex and Ani and its affiliates sought Chapter 11 protection
(Bankr. D. Del. Lead Case No. 21-10918) on June 9, 2021. At the
time of the filing, the Debtor had between $100 million and $500
million in both assets and liabilities. Judge Craig T. Goldblatt
oversees the case.
The Debtor tapped Kirkland & Ellis LLP as bankruptcy counsel, Klehr
Harrison Harvey Branzburg LLP as local counsel, and Portage Point
Partners, LLC as financial advisor and investment banker. Kurtzman
Carson Consultants LLC is the notice and claims agent.
ALGON CORPORATION: Wins Interim Nod to Use Cash Thru July 9
-----------------------------------------------------------
Judge Robert A. Mark authorized Algon Corporation to continue using
cash collateral on an interim basis through July 9, 2021, to pay
its payroll and other ordinary course expenses, pursuant to the
budget. The budget provided for total disbursements of $194,512
for June 2021 and $209,387 for July 2021.
The Court ruled that EXIM Bank, as BBVA USA's assignee, and BBVA
shall have a perfected post-petition lien against the Debtor's
post-petition assets to the same extent and with the same validity
and priority as its pre-petition lien, without the need to file or
execute any document as may otherwise be required under applicable
non-bankruptcy law.
The Court further ruled the Debtor may grant BBVA and EXIM Bank a
post-petition replacement lien on all assets to the extent of any
valid perfected pre-petition lien held by BBVA and a Section 507(b)
priority with respect to any loss of adequate protection, subject
only to U.S. Trustee fees for purposes of the interim order only.
In addition to the adequate protection of EXIM's and BBVA's
interests, the Debtor may make monthly payment of $50,000 to be
delivered by July 9, 2021 to BBVA, to be divided pro rata between
EXIM Bank and BBVA in the amounts of $27,967 (representing 55.934%)
to EXIM Bank and $22,033 (representing 44.066%). The adequate
protection payments shall be delivered by wire transfer to EXIM
Bank and BBVA, to be applied subject to further Court Order as to
EXIM Bank, to an account designated by the Department of Justice
and as to BBVA to an account designated by BBVA.
The Debtor shall maintain all required insurance coverage required
by the BBVA loan documents and general liability insurance and
workers' compensation insurance.
A copy of the order is available for free at https://bit.ly/3xW1kID
from PacerMonitor.com.
A continued hearing on the Debtor's access to cash collateral is
set for July 9, 2021 at 10 a.m. via Zoom.
About Algon Corporation
Miami, Fla.-based Algon Corporation -- https://www.algon.com/ -- is
a worldwide distributor of raw materials and industrial parts for
the pharmaceutical, cosmetic, and food industries.
Algon Corp sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. S.D. Fla. Case No. 19-18864) on July 1, 2019. In the
petition signed by its president, Alfredo Suarez, the Debtor was
estimated to have assets and liabilities of less than $10 million.
The case is assigned to Judge Robert A. Mark.
The Debtor is represented by Geoffrey S. Aaronson, Esq., at
Aaronson Schantz Beiley P.A.
ALPHA AGRICULTURAL: Trustee Seeks to Hire Financial Advisor
-----------------------------------------------------------
Iana Vladimirova, the Subchapter V trustee appointed in Alpha
Agricultural Builders Inc.'s Chapter 11 case, seeks approval from
the U.S. Bankruptcy Court for the Northern District of Illinois to
hire Development Specialists, Inc. as financial restructuring
advisor.
The firm's services include:
(a) advising the Debtor and the Subchapter V trustee with
respect to the successful administration of the Debtor's bankruptcy
estate;
(b) serving as the principal contact for the trustee to manage
the communications or negotiations with outside constituents,
stakeholders, governmental agencies, any creditor committees,
secured creditors, and the representatives of each such party;
(c) assisting with the development of a plan of reorganization
and evaluating purchase offers;
(d) assisting with the ongoing development of overall business
and financial plans, including analyzing alternative strategic
plans, Chapter 11 exit strategies, exit financing and capital
structure changes;
(e) directing initiatives with other retained professionals to
assist the trustee and the Debtor, as applicable, with revenue,
operational and organizational restructuring, and other improvement
activities designed to increase cash flow or entity value to the
extent such matters form the basis of alternative strategic
restructuring plans, Chapter 11 exit strategies, exit financing,
and capital structure changes;
(f) assisting, as necessary, in the preparation of legal
papers in connection with the administration of the bankruptcy
estate;
(g) assisting with the reporting required by the Bankruptcy
Code, Office of the U.S. Trustee or secured creditors, including
but not limited to, monthly operating reports; and
(h) assisting with such other mutually agreeable matters as
may be requested by the Debtor and which fall within its scope of
expertise.
The firm's hourly rates are as follows:
Rebecca DeMarb $510 per hour
Taylor Caruso $325 per hour
Gabria Brener $260 per hour
Rebecca DeMarb, senior managing director at Development
Specialists, disclosed in a court filing that she is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Rebecca DeMarb
Development Specialists, Inc.
104 King Street, Suite 201
Madison, WI 53703
Tel.: (608) 310-5502
Email: rdemarb@dsiconsulting.com
About Alpha Agricultural Builders
Alpha Agricultural Builders Inc. filed a petition under Chapter 11
Subchapter V of the Bankruptcy Code (Bankr. N.D. Ill. Case No.
20-81507) on Aug. 25, 2020, disclosing total assets of up to
$50,000 and total liabilities of up to $500,000. The Debtor is
represented by Hampilos & Associates, Ltd.
Judge Thomas M. Lynch oversees the Debtor's Chapter 11 case.
Iana A. Vladimirova is the Subchapter V trustee appointed in the
bankruptcy case. Husch Blackwell, LLP serves as the Debtor's legal
counsel.
ALPHA AGRICULTURAL: Trustee Taps Husch Blackwell as Legal Counsel
-----------------------------------------------------------------
Iana Vladimirova, the Subchapter V trustee appointed in Alpha
Agricultural Builders Inc.'s Chapter 11 case, seeks approval from
the U.S. Bankruptcy Court for the Northern District of Illinois to
hire Husch Blackwell, LLP as her legal counsel.
The firm's services include:
(a) preparing pleadings and representing the interests of the
Debtor's estate in adversary proceedings, appeals or contested
matters before the bankruptcy court and litigation in other
courts;
(b) investigating and advising the trustee with respect to
potential claims and causes of action belonging to the estate,
including avoidance actions;
(c) instituting and prosecuting actions regarding the
determination and recovery of property of the estate;
(d) instituting and prosecuting non-routine objections to
proofs of claim;
(e) coordinating activities with the U.S. trustee as
appropriate in connection with issues of the integrity of the
bankruptcy courts and procedures;
(f) aiding in the representation of the Subchapter V trustee
in any litigation against her in her official capacity;
(g) rendering legal advice on matters involving taxation of
the estate;
(h) assisting in the resolution of title problems associated
with the estate's property, if any; and
(i) collecting any judgments that may be entered in favor of
the estate.
The firm's hourly rates are as follows:
Partners and Senior Counsels $365 - $850 per hour
Associates and Senior Associates $250 - $510 per hour
Paralegals $140 - $350 per hour
Daniel McGarry, Esq., the firm's attorney who will be providing the
services, disclosed in a court filing that he is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Daniel J. McGarry, Esq.
Husch Blackwell LLP
33 East Main Street, Suite 300
Madison, WI 53703
Tel.: (608) 255-4440
Fax: (608) 258-7138
Email: Daniel.McGarry@huschblackwell.com
About Alpha Agricultural Builders
Alpha Agricultural Builders Inc. filed a petition under Chapter 11
Subchapter V of the Bankruptcy Code (Bankr. N.D. Ill. Case No.
20-81507) on Aug. 25, 2020, disclosing total assets of up to
$50,000 and total liabilities of up to $500,000. The Debtor is
represented by Hampilos & Associates, Ltd.
Judge Thomas M. Lynch oversees the Debtor's Chapter 11 case.
Iana A. Vladimirova is the Subchapter V trustee appointed in the
bankruptcy case. Husch Blackwell, LLP serves as the Debtor's legal
counsel.
AMERICAN MOBILITY: May Use Cash Collateral Thru July 7
------------------------------------------------------
Judge Joseph N. Callaway authorized American Mobility, Inc. to
continue using cash collateral for its postpetition, necessary and
reasonable operating expenses, on an interim basis, pursuant to the
approved budget until the return hearing on the cash collateral
motion currently set for July 7, 2021.
Parties asserting an interest in the cash collateral include:
* Truist Bank, who purported to hold junior lien holder on the
cash collateral;
* Gulf Coast Bank and Trust Company, on account of a loan with an
outstanding balance of approximately $958,280 to acquire the
Debtor's stock in April 2017 by present management; and
* several different vendors and lenders related to the purchase of
inventory and equipment.
The Debtor has previously disclosed that it entered into security
agreements with Gulf Coast to secure the loan. Gulf Coast filed a
UCC-1 financing statement on all of the Debtor's assets. Each of
the equipment vendors and lenders has taken a blanket lien on some
or all of the Debtor's asses. Upon information, the Debtor
believes the lien of each of these parties is junior to that of
Gulf Coast. The Debtor opined that the maximum value of the assets
subject to cash collateral would be approximately $355,000. Based
on the UCC-1 financing statements filed by the creditors, each
would appear to hold a lien on cash collateral of the Debtor.
Truist Bank, for its part, said at the hearing on its objection to
the Debtor's cash collateral request that regardless of the present
value of the cash collateral and the amount of the Gulf Coast debt,
the issue of priority and enforceability of the debts is not ripe
and requests that the Court maintain Truist's pre-petition lien
priority and rights until the related issues and facts can be
determined.
Accordingly, Judge Callaway ruled that until a final hearing on the
matter and a determination of priority and enforceability of
claims, all secured creditors shall maintain their lien on cash
collateral and be granted a replacement lien to the same extent and
same priority as pre-petition up to the total of the cash
collateral as of the Petition Date.
A copy of the order is available for free at https://bit.ly/3w185ay
from PacerMonitor.com.
About American Mobility
American Mobility, Inc. filed a voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. E.D. N.C. Case No.
21-01352) on June 11, 2021. William Ryan, president, signed the
petition. In its petition, the Debtor disclosed total assets of up
to $500,000 and total liabilities of up to $10 million. J.M. Cook,
Esq., at J.M. Cook, PA serves as the Debtor's legal counsel.
ATLANTA METRO: Seeks to Use Cash Collateral
-------------------------------------------
Atlanta Metro Greater Builders, LLC asks the U.S. Bankruptcy Court
for the Northern District of Georgia, Atlanta Division, for
authority to use cash collateral on an interim basis.
The Debtor requires the use of cash collateral to maintain the
value of its estate.
The Debtor acquired the Ridgewood Road property by warranty deed
dated September 7, 2018, at a purchase price of $1,075,000. The
Debtor executed a Promissory Note together with a Construction Deed
to Secure Debt, Assignment of Leases and Rends, Fixture Filing and
Security Agreement, in favor of Anchor Loans, LP in the amount of
$1,569,512 which was filed in the real estate records of Fulton
County, Georgia on October 23, 2018, Deed Book 59340. Anchor Loans,
LP also recorded a UCC Financing Statement. On October 16, 2018,
Anchor Loans executed an Assignment of Deed to Secure Debt and
Security Agreement, Assignment of Rents and Lease and Other Loan
Documents in favor of Anchor Assets IX Holdco, LLC, which was
recording the real estate records of Fulton County, Georgia on
January 31, 2019.
Also on October 16, 2018, Anchor Assets Holdco IX, LLC executed an
Assignment of Deed to Secure Debt and Security Agreement,
Assignment of Rents and Lease and Other Loan Documents to Anchor
Assets IX, LLC, however the transfer instrument was recorded at
Book 59660, Page 264, which recording was prior to the transfer
from Anchor Loans L.P. to Anchor Assets IV Holdco, LLC.
On August 15, 2019, Anchor Assets IX, LLC executed an Assignment of
Security Instrument in favor of Anchor Assets XII, LLC, which was
recorded in the real estate records of Fulton County on August 20,
2019.
On November 2020, Anchor Assets XII, LLC executed an Assignment of
Security Instrument in favor of Anchor Loans, LLC, which was
recorded in the real estate records of Fulton County on November
25, 2020.
On March 15, 2021 Anchor Loans, LP executed an Assignment of
Security Instrument in favor of Anchor Assets XIV, LLC, which was
recorded in the real estate records of Fulton County on April 15,
2021 in Deed Book 63578.
The Debtor says Anchor Assets XIV LLC has, or may have, a security
interest in Cash Collateral.
The Debtor acquired Merlendale by warranty deed dated March 18,
2019 at a purchase price of $850,000 and executed a Promissory Note
and a Construction Deed to Secure Debt, Assignment of Leases and
Rends, Fixture Filing and Security Agreement, in favor of Anchor
Loans, LP in the amount of $1,567,000 which was filed in the real
estate records of Fulton County, Georgia on April 8, 2019.
On March 26, 2019, Anchor Loans, LP executed an Assignment of
Security Instrument in favor of Access Investment, LLC which was
recorded in the real estate records of Fulton County, Georgia on
April 24, 2019.
Access Investments, LLC has, or may have, a security interest in
Cash Collateral.
The Merlendale property is in the early stages of development and,
on June 25, 2021, the City of Sandy Springs issued a Code
Enforcement Notice of Violation on Merlendale for violation of city
ordinances.
The Debtor estimates that the cost to correct violations contained
in the Code Enforcement Notice of Violation to be approximately
$6,000 in materials and labor.
The Debtor estimates the time to correct the Code violations to be
2-3 days. The Debtor has until July 7, 2021 to correct the Code
violations.
As adequate protection, the Debtor proposes to grant the creditors
a replacement lien on property acquired during the Case to the same
extent, validity and priority as their respective liens existing on
the Petition Date.
A copy of the motion is available at https://bit.ly/361op0K from
PacerMonitor.com.
About Atlanta Metro Greater Builders
Marletta, Ga.-based Atlanta Metro Greater Builders, LLC filed a
voluntary petition for relief under Chapter 11 of the Bankruptcy
Code (Bankr. N.D. Ga. Case No. 21-54171) on May 31, 2021. Eric
Fair, managing member, signed the petition. At the time of filing,
the Debtor had between $1 million and $10 million in both assets
and liabilities.
Danowitz Legal, PC serves as the Debtor's legal counsel.
AUSJ-MICH LLC: Seeks to Hire Hopson Law Group as Bankruptcy Counsel
-------------------------------------------------------------------
AUSJ-MICH, LLC seeks approval from the U.S. Bankruptcy Court for
the Northern District of Mississippi to hire Hopson Law Group to
serve as legal counsel in its Chapter 11 case.
The firm's services include:
(a) taking all necessary action to protect and preserve the
estate of the Debtor, including the prosecution of actions on the
Debtor's behalf, the defense of any actions commenced against the
Debtor, the negotiation of disputes in which the Debtor is
involved, and the preparation of objections to claims filed against
the estate;
(b) providing legal advice with respect to the Debtor's powers
and duties in the continued operation of its business and
management of its properties;
(c) negotiating, preparing, and pursuing confirmation of a
plan and approval of a disclosure statement;
(d) preparing legal papers;
(e) appearing in court;
(f) assisting with any disposition of the Debtor's assets by
sale or otherwise;
(g) reviewing all pleadings filed in the Debtor's case;
(h) assisting the Debtor with its insurance recovery
litigation; and
(i) performing all other legal services.
The firm's hourly rates are as follows:
Derek Hopson Sr., Esq. $350 per hour
D. Dewayne Hopson Jr., Esq. $175 per hour
Paralegals $100 per hour
The Debtor initially paid $3,000 to the law firm as a retainer and
a balance of $7,500 remains.
D. Dewayne Hopson, Jr., Esq., the firm's attorney who will be
handling the case, disclosed in a court filing that he is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
D. Dewayne Hopson, Jr., Esq.
Hopson Law Group
P.O. Box 266
Clarksdale, MS 38614
Phone: 662-624-4100
Email: derekhopsonjrhlf@gmail.com
dewaynehopson@hopsonlawfirm.net
AUSJ-MICH LLC
AUSJ-MICH LLC filed a Chapter 11 bankruptcy petition (Bankr. N.D.
Miss. Case No. 21-10832) on April 28, 2021. At the time of the
filing, the Debtor had between $100,001 and $500,000 in both assets
and liabilities. Judge Jason D. Woodard oversees the case. The
Debtor is represented by D. Dewayne Hopson Jr., Esq., at Hopson Law
Group.
BEAR COMMUNICATIONS: Has OK to Use Cash Collateral Thru July 2
--------------------------------------------------------------
Judge Dale L. Somers authorized Bear Communications, LLC to use
Cash Collateral through July 2, 2021, on an interim basis, to pay
for business operating expenses in accordance the budget.
The budget provided for total costs, on a monthly basis, as
follows:
$1,458,473 for the month ended June 27, 2021;
$1,499,473 for the month ended July 25, 2021;
$1,508,473 for the month ended August 22, 2021;
$1,474,973 for the month ended September 19, 2021; and
$1,515,973 for the month ended October 17; 2021.
The budget also provided for monthly adequate protection payments
to Central Bank of the Midwest for $50,768 and the U.S. Small
Business Administration for $436.
In addition to the adequate protection payments specified in the
budget, the Bank and the SBA shall receive an additional and
replacement security interest and lien that is in the same priority
as existed on the Petition Date to the extent each of the Bank and
the SBA holds a prepetition valid, binding, enforceable,
non‐avoidable and perfected security interest in the Debtor's
prepetition cash collateral, in the same categories of assets
acquired by the Debtor post‐petition in which the Bank and the
SBA had pre‐petition security interests, and only to the extent
of diminution in the cash collateral, together with any proceeds
thereof.
In the event it is later determined by the Court or by agreement of
the parties that the Bank or the SBA is not entitled to the
protections under Section 506(b) of the Bankruptcy Code, then the
adequate protection payments made to the Bank and the SBA will be
disgorged for the benefit of the Debtor's unsecured creditors.
The Bank and the SBA reserve their rights to assert superpriority
claims pursuant to Sections 503(b) and 507(b) of the Bankruptcy
Code to the extent the Bank or the SBA has a claim against the
Debtor arising from the diminution in the value of their Cash
Collateral.
A copy of the order is available for free at https://bit.ly/3jgAlDB
from PacerMonitor.com.
Counsel for Central Bank of The Midwest:
Paul M. Croker, Esq.
Erin M. Edelman, Esq.
Armstrong Teasdale LLP
2345 Grand Blvd., Ste. 1500
Kansas City, MO 64108‐2617
Telephone: (816) 221‐3420
Facsimile: (816) 221‐0786
Email: pcroker@atlllp.com
eedelman@atllp.com
Counsel for the U.S. Small Business Association:
Brian D. Sheern, Esq.
Duston J. Slinkard, Acting U.S. Attorney
District of Kansas
Department of Justice
301 N. Main St., Ste. 1200
Wichita, KS 67202‐4812
Telephone: (316) 269‐6481
Facsimile: (316) 269‐6484
Email: brian.sheern@usdoj.gov
About Bear Communications
Lawrence, Kan.-based Bear Communications, LLC --
http://www.bearcommunications.net-- is a communications contractor
offering aerial construction, underground construction, splicing,
subscriber drop placement, residential and commercial
installations, residential/commercial wiring, consulting, and
testing services.
Bear Communications filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Kansas Case No.
21-10495) on May 28, 2021. At the time of the filing, the Debtor
disclosed total assets of up to $50 million and total liabilities
of up to $100 million. Judge Dale L. Somers presides over the
case.
W. Thomas Gilman, Esq., at Hinkle Law Firm LLC, represents the
Debtor as legal counsel.
BGT INTERIOR: Wins Cash Collateral Access on Interim Basis
----------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
has authorized BGT Interior Solutions, Inc. to use cash collateral
in accordance with the budget, with a 5% variance.
The Debtor is directed to immediately, and continue to segregate,
remit, and deposit all Cash Collateral in the Debtor's accounts,
possession, custody, or control, and which the Debtor may receive
in the future, in accordance with the applicable cash management
orders entered by the Court.
For the adequate protection of the interests of Veritex Community
Bank, the lender, against diminution in value of its interests in
the Cash Collateral, the Lender is granted a continuing valid,
binding, enforceable, and automatically perfected postpetition
security interest in, and replacement liens on, any and all
presently owned and hereafter acquired assets of the Debtor and all
other assets of the Debtor and its estate, together with the
proceeds thereof.
The Lender's adequate protection liens on the collateral will have
the same validity and priority as the Lender's lien on the Debtor's
property as existed on the Petition Date and the Order is without
prejudice for the U.S. Trustee, any statutorily appointed
committee, or any other party in interest in these cases to
challenge the validity and priority of the Lender's liens at a
later date, which right may be limited in future cash collateral
orders approved by the Court.
The U.S. Small Business Administration will be granted a
post-petition replacement lien junior to Veritex Bank, N.A.
replacement lien on all new accounts, from and after the date of
filing of the case, as security for the use of Cash Collateral, but
only to the extent of the Debtor's post-Petition use of the Cash
Collateral.
The Debtor's access to Cash Collateral will terminate immediately
upon the earliest to occur of these events: (i) the conclusion of
the Final Hearing, (ii) the entry of an order dismissing the
Bankruptcy Case, (iii) the entry of an order converting the
Bankruptcy Case to chapter 7; (iv) the entry of an order appointing
a trustee or an examiner with expanded powers for the Debtor's
estate or with respect to the Debtor's property; (v) the entry of
an order reversing, vacating, or otherwise amending, supplementing,
or modifying the Order, (vi) the entry of an order granting relief
from the automatic stay to any creditor (other than Veritex)
holding or asserting a lien in the Collateral, (vii) the entry of
an order for relief under Section 506(c) of the Bankruptcy Code
with respect to the Collateral, (viii) the filing by the Debtor,
without Veritex's prior written consent, of any motion in the
Bankruptcy Case to obtain financing under Section 364 from any
person or entity other than Veritex, or to grant a lien, security
interest, or claim with respect to the Collateral in favor of any
party other than Veritex; or (ix) the Debtor's breach or failure to
comply with any term or provision of the Order.
A final hearing on the matter is scheduled for July 6, 2021 at 11
a.m.
A copy of the order and the Debtor's bi-weekly interim budget is
available at https://bit.ly/3holsf from PacerMonitor.com.
The Debtor projects total deposits of $1.1 million and total
expenses of $916,366.
About BGT Interior Solutions, Inc.
BGT Interior Solutions, Inc. owns and operates a business known as
BGT Interior Services, Inc., which provides multi-family luxury
interior finish packages to the construction industry in Texas and
nationwide. The company specializes in custom turn-key flooring and
countertop packages to fit a variety of multi-family, hospitality,
or commercial settings. The company offers custom design services
and interior finish packages, providing its customers a single
point of contact from fabrication to installation.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 21-32124) on June 23,
2021. In the petition signed by Robert Wagner, vice president and
director, the Debtor disclosed up to %50,000 in both assets and
liabilities.
Judge Eduardo V. Rodriguez oversees the case.
Kimberly A. Bartley, Esq. at Waldron & Schneider, L.L.P. is the
Debtor's counsel.
Veritex Community Bank, as creditor, is represented by:
Shelley Bush Marmon, Esq.
Crady Jewett McCulley & Houren LLP
2727 Allen Parkway, Suite 1700
Houston, TX 77019-2125
Tel: 713-739-7007
Fax: 713-739-8403
Email: smarmon@cjmhlaw.com
BIOSTAGE INC: Stockholders Elect Ting Li as Director
----------------------------------------------------
Biostage, Inc. held its Annual Meeting of Stockholders at which the
Company's stockholders elected Ting Li as a Class II director,
nominated by the Board of Directors, for a three-year term, such
term to continue until the annual meeting of stockholders in 2024
and until such Director's successor is duly elected and qualified
or until her earlier resignation or removal.
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 March 31, 2021, the Company had $1.25
million in total assets, $875,000 in total liabilities, and
$381,000 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.
BISON BUILDING: Gets OK to Hire Western Business as Accountant
--------------------------------------------------------------
Bison Building Systems, Inc. received approval from the U.S.
Bankruptcy Court for the District of Montana to employ Western
Business & Tax as its accountant.
The firm's services include tax and accounting preparation.
Jeffery D. O'Brien, the firm's accountant who will be providing the
services, will charge $150 per hour.
As disclosed in court filings, Western Business is a "disinterested
person" as defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Jeffery D. O'Brien, CPA
Western Business & Tax
130 1st Ave W
Kalispell, MT 59901
Phone: +1 406-751-3300
About Bison Building Systems
Bison Building Systems, Inc. filed a Chapter 11 bankruptcy petition
(Bankr. D. Mont. Case No. 21-90063) on April 20, 2021, disclosing
under $1 million in both assets and liabilities. The Debtor tapped
Morgan Pierce, PLLP as legal counsel and Sky Country Consulting,
Inc. and Western Business & Tax as accountant.
BOURDOW CONTRACTING: Seeks 90-day Plan Exclusivity Extension
------------------------------------------------------------
Bourdow Contracting, LLC requests the U.S. Bankruptcy Court for the
Eastern District of Michigan, Northern Division to extend by 90
days the exclusive periods during which the Debtor may file a plan
of reorganization through September 12, 2021, or the time requested
in the Debtor's Settlement Pleadings.
The Debtor, with the assistance of the Subchapter V Trustee, was in
negotiations with the key creditor, Trustees of the Operating
Engineers, Local 324 Pension Fund.
The Debtor proposed the Fund earlier in the case and the Counsel
for the Fund was not able to meet with the Trustees of the Fund
until June 2, 2021. Also, the counsel for the Fund made a
counteroffer to the Debtor on June 4, 2021. The Fund reached an
agreement with the Debtor on June 9, 2021.
This is the major constituent and the settlement will, subject to
the approval of the Court, resulting in dismissal of this Chapter
11 proceeding. The settlement requires the payment of the sum of
$700,000 to the Fund.
The Debtor will need to borrow this amount from a relative and the
Debtor's ability to fund the settlement is therefore conditioned
upon the consummation of this loan. The Debtor's counsel is
currently drafting pleadings and a settlement agreement, which will
be filed with the Court on the third week of June, assuming
concurrence of the parties.
In the case before the Court, the nature of the decision-making
process by the Fund is by the committee and could not react quickly
to the Debtor's proposals. The Debtor's settlement proposals that
were supposed to be responded to in days, took weeks for the Fund
to respond, and the response was precipitated by the impending
mediation, and those delays were beyond the Debtor's control.
For these reasons, although the Debtor fully believes the
consideration will be paid and the dismissal of the case will
become permanently effective, the Debtor wants to retain its right
to file a plan and complete the Chapter 11 process if some
unforeseen circumstance occurs and believes it is entitled to under
11 USC 1189(b).
A copy of the Debtor's Motion to extend is available at
https://bit.ly/3jBRyau from PacerMonitor.com.
About Bourdow Contracting
Bourdow Contracting, LLC, a construction company based in Bay City,
Mich., filed its voluntary petition for relief under Chapter 11 of
the Bankruptcy Code (Bankr. E.D. Mich. Case No. 21-20360) on March
27, 2021. Jason A. Bourdow, the managing member, signed the
petition. In its petition, the Debtor disclosed $100,000 to
$500,000 in assets and $1 million to $10 million in liabilities.
Judge Daniel S. Oppermanbaycity is the case judge. Warner Norcross
& Judd, LLP and Greenwood Financial & Consulting, PLLC serve as the
Debtor's legal counsel and accountant, respectively.
BRAD RAGAN: Has Deal on Cash Collateral Access
----------------------------------------------
Brad Ragan Recycling and Ziegler Tire and Supply Company have
advised the U.S. Bankruptcy Court for the Western District of
Kentucky, Bowling Green Division, that they have reached an
agreement regarding the Debtor's use of cash collateral and now
wish to memorialize the terms of this agreement to an agreed
order.
Ziegler holds a properly perfected security interest in the
Debtor's receivables and inventory as a result of its UCC financing
statement being File No. 2020-3062638-72.01.
Ziegler is willing to consent to the use of cash collateral only
upon the terms and conditions contained in the proposed Order.
The parties agree that the Debtor may continue to use, in the
ordinary course of business, all cash collateral, including without
limitation, all accounts receivable generated by the Debtor in
Possession in its ordinary business operations, and inventory
subject to Ziegler's security interest pending a final hearing and
further order of the Court.
The Debtor is authorized to use the cash collateral solely for the
Debtor's business, and only in the amounts, and only for the
purpose as specified in the Interim Budget.
As adequate protection of and for Ziegler's interest in the cash
collateral, the Debtor will grant Ziegler a continued security
interest in its accounts receivable and inventory in the ordinary
course of business, whether pre or postpetition, to the extent of
its security interest as existed in the cash collateral prior to
commencement of the Bankruptcy case.
As further adequate protection, the Debtor will pay monthly,
beginning June 15, 2021, an amount equal to 1% of Ziegler’s
secured claim and will pay all post-petition invoices when due.
A copy of the agreed motion is available at https://bit.ly/3qyE2pB
from PacerMonitor.com.
About Brad Ragan Recycling
Brad Ragan Recycling Inc., a Glasgow, Ky.-based manufacturer of
rubber products, filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. W.D. Ky. Case No.
21-10305) on May 1, 2021. Brad Ragan, the majority owner and
president, signed the petition. At the time of filing, the Debtor
disclosed total assets of up to $1 million and total liabilities of
up to 10 million.
Judge Joan A. Lloyd oversees the case.
Darren K. Mexic, Esq. serves as the Debtor's legal counsel.
BRAZOS ELECTRIC: Asks Court for More Time to File Plan
------------------------------------------------------
Maria Chutchian of Reuters reports that Brazos Electric Power
Cooperative is seeking an additional four months to maintain
control of its bankruptcy case, saying that recently enacted laws
aimed at mitigating the financial fallout of February's winter
storm in Texas have complicated its restructuring efforts.
In court papers filed on Monday, June 28, 2021, the co-op asked
U.S. Bankruptcy Judge David Jones in Houston to extend its
exclusive period to file a Chapter 11 plan through Oct. 27, 2021
and its corresponding period to solicit creditor votes for the plan
through Dec. 28, 2021. A hearing on the motion has not yet been
scheduled.
Brazos filed for bankruptcy in March after the winter storm that
knocked out power for millions in Texas left it with a $2.1 billion
bill from the state's grid operator, the Electric Reliability
Council of Texas (ERCOT). Brazos has disputed the bill.
Brazos, which is Texas's largest and oldest electric co-op, says it
needs to extend its exclusivity period in part because two laws
recently signed by Texas Governor Greg Abbott have introduced new
complications in the case. The laws enable co-ops like Brazos to
use securitization financing to recover certain costs incurred as a
result of the storm. But the co-op says that solution, under which
co-ops could be kicked out of the market if they don't pay the
costs in full, could have devastating consequences for its
members.
"Although the Debtor's and its advisers' analysis is ongoing, these
laws appear to only compound the complexities of the Debtor's case,
raising potential hurdles to the Debtor's ability to continue as a
market participant in the ERCOT power region and complicating the
Debtor’s restructuring strategy and ongoing plan negotiations,"
Brazos said in Monday's, June 28, 2021, filing.
The co-op indicated in the motion that it may pursue "potential
challenges related to" the new laws.
Brazos also noted that its restructuring is already more
complicated than a typical commercial Chapter 11 case in light of
its structure as a member-owned co-op.
The $2.1 billion bill from ERCOT for the seven days the storm
lasted is nearly three times the co-op's total power cost from
2020, which was $774 million, according to court papers. For
several days during the storm, ERCOT had set electricity prices at
$9,000 per megawatt hour.
Brazos owes about $2 billion in funded debt and $340 million in
trade debt. It is funding operations during the bankruptcy with the
help of a $350 million loan provided by a J.P Morgan Chase Bank-led
group of lenders.
About Brazos Electric Power Cooperative
Brazos Electric Power Cooperative Inc. is a 3,994-megawatt
transmission and generation cooperative which members' service
territory covers 68 counties from the Texas Panhandle to Houston.
It was organized in 1941 and the first cooperative formed in the
Lone Star state with the primary intent of generating and supplying
electrical power. At present, Brazos Electric is the largest
generation and transmission cooperative in the state and is the
wholesale power supplier for its 16 member-owner distribution
cooperatives and one municipal system.
Brazos Electric filed a voluntary petition for relief under Chapter
11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 21-0725)
on March 1, 2021. At the time of the filing, the Debtor disclosed
assets of between $1 billion and $10 billion and liabilities of the
same range.
Judge David R. Jones oversees the case.
The Debtor tapped Norton Rose Fulbright US, LLP as bankruptcy
counsel, Foley & Lardner LLP and Eversheds Sutherland US LLP as
special counsel, Collet & Associates LLC as investment banker, and
Berkeley Research Group, LLC as financial advisor. Stretto is the
claims and noticing agent.
The U.S. Trustee for Region 7 appointed an official committee of
unsecured creditors in the Debtor's case on March 15, 2021. The
committee is represented by the law firms of Porter Hedges, LLP and
Kramer, Levin, Naftalis & Frankel, LLP. FTI Consulting, Inc. is
the committee's financial advisor.
Kevin Lippman of Munsch Hardt Kopf & Harr is representing ERCOT.
BRIGHT MOUNTAIN: To Move to OTC Pink Market Due to Audit Delay
--------------------------------------------------------------
Bright Mountain Media, Inc. provided a corporate update on the
status of its OTCQB exchange listing and go-forward capital markets
and operational initiatives.
The delay in the Company's FY2020 10-K Audit will cause Bright
Mountain Media stock to be moved from the OTCQB exchange to the OTC
Pink market on July 1, 2021. The Company's ticker symbol will
remain unchanged and no action is required by shareholders as part
of this move.
Bright Mountain Media anticipates becoming current in the middle of
July with its 2020 Form 10-K and then proceed with its subsequent
quarterly filings and applying to relist to the OTCQB exchange by
the end of August 2021.
"The restatements driving the audit delay are being resolved as we
speak and are non-cash in nature, with no impact on the future
commercial prospects of the company," said Kip Speyer, Chairman and
chief executive officer of Bright Mountain Media. "In fact, we are
currently undertaking an aggressive cost reduction initiative to
right-size our corporate infrastructure and further expedite our
path to cash flow breakeven."
"We believe that we can significantly reduce operating expenses
while maintaining our revenue base - which stood at approximately
$16 million in FY2020 - and emerge in a better financial position
to enable our planned future transition to profitability. I look
forward to providing our shareholders with updates on this front as
they become available and would like to thank them for their
continued support as we grow our end-to-end digital media and
advertising services platform."
About Bright Mountain
Based in Boca Raton, Fla., Bright Mountain Media, Inc. --
www.brightmountainmedia.com -- is an end-to-end digital media and
advertising services platform, efficiently connecting brands with
targeted consumer demographics. In addition to its corporate
website, the Company owns and/or manages 24 websites which are
customized to provide its niche users, including active, reserve
and retired military, law enforcement, first responders and other
public safety employees with products, information and news that
the Company believes may be of interest to them. The Company also
owns an ad network which was acquired in September 2017.
Bright Mountain reported a net loss of $3.40 million for the year
ended Dec. 31, 2019, compared to a net loss of $5.22 million for
the year ended Dec. 31, 2018. As of Sept. 30, 2020, the Company
had $42.77 million in total assets, $29.92 million in total
liabilities, and $12.85 million in total shareholders' equity.
EisnerAmper LLP, in Iselin, New Jersey, the Company's auditor since
2018, issued a "going concern" qualification in its report dated
May 14, 2020, citing that the Company has experienced recurring net
losses, cash outflows from operating activities, and has an
accumulated deficit that raise substantial doubt about its ability
to continue as a going concern.
BULLDOGGE FITNESS: Wins Cash Collateral Access Thru July 31
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois has
authorized Bulldogge Fitness Group, Inc. to use cash collateral in
which Wells Fargo Bank, N.A. asserts an interest on an interim
basis through July 31, 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. The bank 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.
The Prepetition Secured Lender will be secured by a lien to the
same extent, priority and validity as existed prior to the Petition
date; that the Prepetition Secured Lender will receive a security
interest in and replacement lien upon all of the Debtor's now
existing or hereafter acquired property. The replacement lien will
be the same lien as existed as the prepetition valid liens of
record.
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
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 debtor-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 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
August 2 at 2 p.m.
A copy of the order and the Debtor's July operating budget is
available for free at https://bit.ly/3653Mk2 from
PacerMonitor.com.
The Debtor projects total estimated income of $66,318 and total
expenses of $84,804 for the month of July.
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.
BUTCHER SHOP: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Butcher Shop of Cordova, LLC
107 S. Germantown Parkway
Cordova, TN 38018-4201
Chapter 11 Petition Date: June 29, 2021
Court: United States Bankruptcy Court
Western District of Tennessee
Case No.: 21-22100
Judge: Hon. Jennie D. Latta
Debtor's Counsel: Steven N. Douglass, Esq.
HARRIS SHELTON, PLLC
40 S. Main Street, Suite 2210
Memphis, TN 38103-2555
Tel: (901) 525-1455
Fax: (901) 526-4084
E-mail: sdouglass@harrisshelton.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Dennis Day, member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/UAUX4GA/Butcher_Shop_of_Cordova_LLC__tnwbke-21-22100__0001.0.pdf?mcid=tGE4TAMA
CARSON VALLEY MEDICAL CENTER: S&P Rates 2021A Revenue Bonds 'BB+'
-----------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' long-term rating to the
Public Finance Authority, Wis.'s approximately $40.8 million series
2021A revenue bonds issued on behalf of Washoe Barton Medical
Clinic dba Carson Valley Medical Center, Nev. The outlook is
stable.
"The 'BB+' rating reflects our view of CVMC's essentiality as a
formally designated critical access hospital and the only hospital
in its primary service area with a unique corporate structure that
provides technology and physician support," said S&P Global Ratings
credit analyst Aamna Shah. "CVMC's limited PSA and small revenue
base present inherent challenges, including frequent outmigration
of services and physician recruitment risk," Ms. Shah added.
The proceeds of the series 2021A bonds ($48.1 million) will be used
to finance the expansion and renovation of the Medical Center,
purchase equipment and furnishings ($40 million), and refinance the
series 2013 bonds (which are currently guaranteed by Barton).
Remaining proceeds will go toward a debt service reserve fund ($2.8
million) and for costs of issuance.
S&P said, "We view CVMC's social risk as higher than our view of
the sector standard due to its highly vulnerable economic
fundamentals and market position as CVMC operates in a limited PSA
(39,000), characterized by weak economic fundamentals and a
vulnerable payor mix. While employment is concentrated in tourism
and gaming, proximity to Lake Tahoe has resulted in favorable
population trends with further growth expected in the medium to
long term. In addition, we believe the lingering effects of the
pandemic exposes the entire sector to additional risks that could
present financial pressure in the short and medium term.
"We also analyzed CVMC's environment risk and deem that it is in
line with our view of the sector. While CVMC is in an area
susceptible to earthquakes, we believe this risk is mitigated by
management's indication that all their buildings are up to code and
meet state seismic requirements.
"Lastly, we analyzed CVMC's governance risk and deem it in line
with our view of the sector." While CVMC is the sole member of the
obligated group, the medical center is co-owned (50/50) by Renown
Health (Renown) and Barton Healthcare System (Barton). CVMC's
information technology (IT) system is hosted by Barton's IT network
and the medical center maintains its electronic health record
system through Renown's EHR platform, which has resulted in
enhanced physician alignment and is also supportive from a
cybersecurity standpoint.
CVMC is a full-service critical access hospital in Gardnerville,
Nev. The hospital's primary service is limited (39,000) and
consists of four zip codes across the towns of Gardnerville,
Minden, and Wellington. The PSA collectively represents
approximately 78.5% of total patient discharges.
CHANNEL CLARITY: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Channel Clarity Holdings LLC
215 W Ohio Street, 6th Floor
Chicago, IL 60654
Chapter 11 Petition Date: June 30, 2021
Court: United States Bankruptcy Court
Northern District of Illinois
Case No.: 21-07972
Judge: Hon. Lashonda A. Hunt
Debtor's Counsel: Scott R. Clar, Esq.
CRANE, SIMON, CLAR & GOODMAN
Suite 3950
135 South LaSalle Street
Chicago, IL 60603-4297
Tel: 312-641-6777
Fax: 312-641-7114
E-mail: sclar@cranesimon.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Brock Flagstad, managing member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/BFYD4FY/Channel_Clarity_Holdings_LLC__ilnbke-21-07972__0001.0.pdf?mcid=tGE4TAMA
CHARLESTON ORTHODONTIC: Court Wants Adversary Action Filed
----------------------------------------------------------
Judge John E. Waites entered an order granting Charleston
Orthodontic Specialists, LLC's motion to use cash collateral on an
interim basis. Specifically, the Court ordered the Debtor to file
an adversary proceeding within 30 days from entry of the order in
order to address the issues raised by the Debtor's creditors,
Fundkite and Pinnacle Bank.
The Court has been made aware by AKF, Inc., d/b/a FundKite, and
Pinnacle Bank that additional time is needed to discuss the various
issues, and they have consented to an additional 30-day deadline
for the filing of an adversary proceeding. The parties have
represented to the Court that the purpose of the extension request
is to allow for negotiations to continue and not to unnecessarily
delay the Debtor's case.
A copy of the Court's June 22 order is available for free at
https://bit.ly/3gX2hdW from PacerMonitor.com.
As previously reported in the Troubled Company Reporter, the
Bankruptcy Court in a May 25 order authorized the Debtor to use
cash collateral on an interim basis in accordance with prior cash
collateral orders, subject to the arguments of AKF Inc., d/b/a
FundKite, the Debtor and Pinnacle Bank. Fundkite opposed the
Debtor's use of cash collateral, asserting ownership of certain of
the Debtor's funds and receivables. The Debtor and Pinnacle Bank
dispute Fundkite's claim.
To resolve FundKite's objection, the Court directed the Debtor to:
* initiate an adversary proceeding, within 30 days from the
date of the entry of the current Order, seeking a determination of
the nature of FundKite's transaction with the Debtor and a
determination whether or not the funds which FundKite alleges it
owns are property of the bankruptcy estate;
* immediately pay FundKite $800 monthly in exchange for use of
the property it claims ownership of until the Court issues a final
ruling in the adversary proceeding. Each monthly payment will be
credited to FundKite's indebtedness with the Debtor.
About Charleston Orthodontic Specialists
Charleston Orthodontic Specialists, LLC filed its voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
D.S.C. Case No. 21-00827) on March 24, 2021. At the time of the
filing, the Debtor disclosed up to $10 million in assets and up to
$50 million in liabilities.
Judge John E. Waites presides over the case. Ivan N. Nossokoff,
Esq., at Ivan N. Nossokoff, LLC, represents the Debtor as legal
counsel.
Creditor, AKF Inc., d/b/a FundKite is represented by Johnson Law
Firm, P.A. and Kaminski Law PLLC. Pinnacle Bank, also a creditor,
is represented by Parker Poe Adams & Bernstein LLP.
CHICAGOAN LOGISTIC: Seeks to Continue Factoring Deal
----------------------------------------------------
Chicagoan Logistic Company sought permission from the Bankruptcy
Court to continue its prepetition factoring arrangement with
Partners Funding, Inc., during the pendency of its Chapter 11
case.
Partners Funding will purchase from the Debtor -- and the Debtor
will sell to Partners Funding -- all of the Debtor's postpetitioin
accounts receivable based on the terms of a Factoring Agreement
dated May 30, 2017. The amount of postpetition factoring shall be
at Partners Funding's discretion. The cost of the borrowing shall
be 0.8% of the face amount of the invoices purchased by Partners
Funding.
The Debtor proposed to grant Partners Funding postpetition first
priority lien on the same assets on which it enjoys a prepetition
lien -- essentially a lien on all of the Debtor's assets. Partners
Funding's liens shall be senior to the claim of any entity claiming
an interest in the DIP collateral, but subject and junior to claims
for professional fees and expenses of the Debtor. Partners
Funding's claims shall constitute a super-priority administrative
expense claim under Section 364(c)(1) of the Bankruptcy Code, which
shall have priority over any and all administrative expenses of the
kind specified in Sections 503(b) and 507(b) of the Bankruptcy
Code, except for claims for professional fees and expenses of the
Debtor.
The Debtor also asked the Bankruptcy Court for permission to use
the proceeds of the postpetition financing from Partners Funding
and of all cash collateral in accordance with the budget.
The Debtor requires immediate access to advances from Partners
Funding under the Agreement and access to the Cash Collateral to
permit, among other things, the orderly continuation of the
operation of its business, to maintain business relationships with
its vendors, suppliers, and customers, to make payroll, to make
necessary and urgent capital expenditures, to pay the costs of
administration of its estate, and to satisfy other working capital
and operational needs.
As of the Petition Date, the Debtor owed Partners Funding $421,1709
plus fees and costs pursuant to the Agreement.
As adequate protection for any diminution in the value of Partners
Funding's interest in the Cash Collateral resulting from its usage,
to the extent the interest constitutes valid and perfected lien and
security interest as of the Petition Date, Partners Funding shall
receive replacement liens of the same priority and to the same
extent and in the same collateral as Partners Funding had
prepetition.
A copy of the motion is available for free at
https://bit.ly/3dfX2DS from PacerMonitor.com.
About Chicagoan Logistic Company
Chicagoan Logistic Company, with principal place of business at
3612 N. Sacramento Avenue, Chicago, Illinois, is in the general
freight trucking industry. The Debtor filed a Chapter 11 petition
(Bankr. N.D. Ill. Case No. 21-07154) on June 5, 2021.
On the Petition Date, the Debtor estimated between $500,000 and
$1,000,000 in assets and between $1,000,000 and $10,000,000 in
liabilities. The petition was signed by Serkan Kaputluoglu,
president.
Laxmi P. Sarathy is the Debtor's counsel. Judge Janet S. Baer was
initially assigned to the case. The case was later assigned to
Judge Carol A. Doyle.
Affiliate, NAHAUL, Inc. filed for Chapter 11 (Bankr. N.D. Ill. Case
No. 21-07152) on June 5, 2021, listing under $500,000 in assets and
$1 million to $10 million in liabilities. Judge Doyle presides
over the case.
The two cases are not jointly administered.
Buchalter, A Professional Corporation represents creditor, Partners
Funding. Vadim Serebro, Esq., serves as counsel to creditor, World
Global Capital LLC d/b/a Funderslink. ATX MCA Fund I, LLC, also a
creditor of the Debtor, is represented by The Magnozzi Law Firm,
P.C. Creditor BMO Harris is represented by Howard & Howard.
CHICK LUMBER: May Use Cash Collateral Until September 30
--------------------------------------------------------
Judge Bruce A. Harwood authorized Chick Lumber, Inc. to use cash
collateral until 11:59 p.m. on September 30, 2021, to pay the costs
and expenses incurred in the ordinary course of its business to the
extent provided for in the budget up to $1,813,912 during the
period between July 1 and September 30, 2021.
The Debtor shall make these Adequate Protection Payments on the
last day of each month:
$632.68 to Ford Motor Credit;
$481.70 to JELD-WEN, Inc.;
$226.60 to Citizens One Auto Finance;
$219.06 to Citizens One Auto Finance;
$211.94 to Citizens One Auto Finance;
$82.22 to Hitachi Capital Financial;
$63.25 to Wells Fargo Equipment Finance, Inc. - Moffett
Machine; and
$39.52 to Wells Fargo Equipment Finance, Inc. - Forklift;
$37.83 to GreatAmerica Financial Services Corp.;
$24.66 to BFG Corporation (H2H NC Paint Tinter);
The Debtor shall also make $1,197.93 in adequate protection payment
on the last day of each month to an Escrow account for the benefit
of Citizens Financial Group, Inc. (RBS Citizens), as the assignee
of the Claim of American Express Bank, FSB (Amex FSB), and RBS
Citizens to the extent that it holds an allowed secured claim.
The Debtor shall deposit monthly with Counsel to the Debtor the RBS
Citizens-Amex Adequate Protection Payment given the dispute between
the Debtor, RBS Citizens and Amex FSB regarding the validity,
enforceability, perfection and priority of the security interests
in the Debtor's cash collateral and other property claimed by them.
The Escrow Agent shall deposit each APP Escrow Payment in a
non-interest bearing IOLTA Account in the name of the Escrow Agent,
for the benefit RBS Citizens, Amex Bank and the Debtor (the RBS
Citizens-Amex APP Escrow Account) with Citizens Bank, N.A. or
another banking institution qualified to serve as a depository for
property of the estate. Pending the further order or orders of the
Bankruptcy Court, the Escrow Agent shall hold the funds in the RBS
Citizens-Amex APP Escrow Account.
Each Record Lienholder (including RBS Citizens) is granted a
replacement lien in the Debtor's post-petition property of the same
kinds and types as the collateral in which it held valid and
enforceable, perfected liens on the Petition Date as security for
any loss or diminution in the value of the collateral, which shall
have the same priority as it had on the Petition Date.
Notwithstanding the provision for the payment of Administrative
Accounting and Administrative Legal fees in the budget, no payments
shall be made to Proposed Counsel or any accountant unless the
Bankruptcy Court approves the retention of a professional and an
application for an order permitting the payment of fees and/or the
reimbursement of expenses. Pending the approval of payment
applications, the Proposed Counsel shall hold the payments in
escrow subject to the further order of the Bankruptcy Court.
A hearing to consider the Debtor's continued use of cash collateral
will be held September 22, 2021 at 2 p.m. Objections must be filed
on or before September 15.
A copy of order is available for free at https://bit.ly/3hg8tNo
from PacerMonitor.com.
About Chick Lumber, Inc.
Chick Lumber, Inc. -- https://www.chicklumber.com/ -- is a dealer
of lumber, plywood, steel beams, engineered wood, trusses, steel
and asphalt roofing, windows, doors, siding, trim, stair parts, and
finish materials. It also offers drafting and design, installation,
delivery, outside sales, and plan reading and estimating services.
The Debtor sought Chapter 11 protection (Bankr. D.N.H. Case No.
19-11252) on Sept. 9, 2019, in Concord. In the petition signed by
Salvatore Massa, president, the Debtor disclosed between $1 million
and $10 million in both assets and liabilities.
Judge Bruce A. Harwood oversees the case.
William S. Gannon PLLC is the Debtor's legal counsel.
The Office of the U.S. Trustee appointed a committee of unsecured
creditors on Oct. 3, 2019. The Committee is represented by
Goldstein & McClintock, LLLP as its legal counsel.
COLUMBIA INDUSTRIES: Voluntary Chapter 11 Case Summary
------------------------------------------------------
Debtor: Columbia Industries Holding Company, LLC
4515 NE Elliott Circle
Corvallis, OR 97330
Business Description: Columbia Industries Holding Company, LLC
is a Single Asset Real Estate debtor (as
defined in 11 U.S.C. Section 101(51B)).
Chapter 11 Petition Date: June 30, 2021
Court: United States Bankruptcy Court
District of Oregon
Case No.: 21-61133
Judge: Hon. Thomas M. Renn
Debtor's Counsel: Christopher N. Coyle, Esq.
VANDEN BOS & CHAPMAN, LLP
319 SW Washington
Suite 520
Portland, OR 97204
Tel: 503-241-4869
Email: chris@vbcattorneys.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by William Tosheff, member manager.
The Debtor stated it has no creditors holding unsecured claims.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/Y3IL4GI/Columbia_Industries_Holding_Company__orbke-21-61133__0001.0.pdf?mcid=tGE4TAMA
COMMUNITY ECO POWER: Seeks Cash Collateral Access
-------------------------------------------------
Community Eco Power, LLC, Community Eco Springfield, LLC, and
Community Eco Pittsfield, LLC ask the U.S. Bankruptcy Court for the
District of Massachusetts, Western Division, for authority to,
among other things, use cash collateral.
The Debtors contend that access to Cash Collateral is necessary to
avoid immediate and irreparable harm to the Debtors and their
estates.
The parties that assert an interest in the Debtor's Cash Collateral
are Alterna Capital Solutions LLC and SDI, Inc.
Prior to the Petition Date, the Debtors engaged in certain
transactions with the Prepetition Secured Creditors that resulted
in the Debtors granting liens on certain of their assets to secure
certain of those debt obligations.
On August 19, 2020, the Debtors entered into an Invoice Purchase
and Security Agreement with Alterna. To secure the Debtors'
obligations to Alterna, the Debtors granted Alterna security
interests in all or substantially all of the Debtors' personal
property, including Cash Collateral. On August 17, 2020, Alterna
filed UCC Financing Statement 20205673829 with the Delaware
Secretary of State (as to CE Power); UCC Financing Statement
202008177373366 with the New York Secretary of State (as to CE
Pittsfield); and UCC Financing Statement 202008177373378 with the
New York Secretary of State (as to CE Springfield).
On August 31, 2020, the Debtors entered into a Note and Security
Agreement with SDI. The SDI Agreement constitutes a resolution
regarding CE Power's indebtedness to SDI under that certain MRO
Services Agreement. Pursuant to the SDI Agreement, the Debtors were
indebted to SDI in the original principal amount of $5,540,000. The
Debtors also granted SDI security interests in all or substantially
all of the Debtors' personal property, including Cash Collateral.
On August 31, 2020, SDI filed UCC Financing Statement 20206006508
with the Delaware Secretary of State (as to CE Power); UCC
Financing Statement 202008317496316 with the New York Secretary of
State (as to CE Pittsfield); and UCC Financing Statement
202008317496328 with the New York Secretary of State (as to CE
Springfield).
The Debtors assert that as reflected in their Budget, the aggregate
value of the Cash Collateral increases over the course of the
period reflected in the Budget compared to the Cash Collateral
available on the Petition Date. The Prepetition Secured Creditors,
therefore, are adequately protected by this increase in the value
of Cash Collateral over time and further adequate protection is not
required.
As additional adequate protection, the Prepetition Secured
Creditors will receive continuing liens on postpetition Cash
Collateral. To the extent of a diminution in the value of a
Prepetition Secured Creditor's interest in Cash Collateral after
the Petition Date, the Debtors will provide adequate protection in
the form of replacement liens up to the amount of such diminution
to the respective Prepetition Secured Creditor on unencumbered real
property owned by the Debtors. The Replacement Liens and the
Continuing Liens will be valid, binding, enforceable, and fully
perfected without the necessity of the execution, filing, or
recording of security agreements, pledge agreements, financing
statements, or other agreements by the Debtors or any Prepetition
Secured Creditor.
The Prepetition Secured Creditors will also be granted
administrative claims under section 507(b) of the Bankruptcy Code
to the extent that the other forms of adequate protection set forth
in the Interim Order and the Final Order do not adequately protect
the diminution in the value of the respective party's interest in
Cash Collateral after the Petition Date.
A copy of the motion is available at https://bit.ly/35U9uFp from
PacerMonitor.com.
About Community Eco Power, LLC
Community Eco Power, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 21-30234) on June
25, 2021. In the petition signed by Richard Fish, president and
chief executive officer, the Debtor disclosed up to $50,000 in
assets and up to $10 million in liabilities.
D. Sam Anderson, Esq., Adam R. Prescott, Esq., and Kyle D. Smith,
Esq. at Bernstein, Shur, Sawyer and Nelson, PA is the Debtor's
counsel.
COMMUNITY REGIONAL: Taps Littler Mendelson as Special Counsel
-------------------------------------------------------------
Community Regional Anesthesia Medical Group, Inc. seeks approval
from the U.S. Bankruptcy Court for the Eastern District of
California to hire Littler Mendelson, PC as its special counsel.
The firm will represent the Debtor in labor and employment matters.
Ryan Eddings, Esq., at Littler Mendelson, disclosed in a court
filing that he is a "disinterested person" as the term is defined
in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Ryan Eddings, Esq.
Littler Mendelson, PC
5200 N. Palm Ave., Suite 302
Fresno, CA 93704
Office: (559) 244-7500
Direct: (559) 244-7533
Fax: (559) 244-7525
Email: reddings@littler.com
About Community Regional
Anesthesia Medical Group, Inc.
Community Regional Anesthesia Medical Group, Inc. provides
anesthesia services for Community Medical Centers (CMC) at its
three major hospitals, Community Regional Medical Center, Clovis
Community Medical Center, and Fresno Heart and Surgical Hospital.
Community Regional Anesthesia Medical Group filed a Chapter 11
petition (Bankr. E.D. Calif. Case No. 21-11542) on June 15, 2021.
Carolyn Larsen, executive director, signed the petition. In the
petition, the Debtor disclosed $7,412,863 in total assets and
$8,891,012 in total liabilities.
Judge Rene Lastreto II presides over the Debtor's Chapter 11 case.
Lisa Holder is the Subchapter V trustee appointed in the case.
The Debtor tapped Wanger Jones Helsley as bankruptcy counsel, and
Littler Mendelson, PC and Whitney Thompson & Jeffcoach as special
counsel.
COMMUNITY REGIONAL: Taps Whitney Thompson as Special Counsel
------------------------------------------------------------
Community Regional Anesthesia Medical Group, Inc. seeks approval
from the U.S. Bankruptcy Court for the Eastern District of
California to employ Whitney Thompson & Jeffcoach as special
counsel.
The firm's services include handling of healthcare and employment
law issues, business and transaction, and defense of the Portillo
medical malpractice suit.
Mandy Jeffcoach, Esq., the firm's attorney who will handle the
case, disclosed in a court filing that she is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Mandy Jeffcoach, Esq.
Whitney Thompson & Jeffcoach
970 W. Alluvial Avenue
Fresno, CA 93711
Phone: (559) 753-2550/(559) 753-2553
Fax: (559) 753-2560
Email: mjeffcoach@wtjlaw.com
About Community Regional
Anesthesia Medical Group, Inc.
Community Regional Anesthesia Medical Group, Inc. provides
anesthesia services for Community Medical Centers (CMC) at its
three major hospitals, Community Regional Medical Center, Clovis
Community Medical Center, and Fresno Heart and Surgical Hospital.
Community Regional Anesthesia Medical Group filed a Chapter 11
petition (Bankr. E.D. Calif. Case No. 21-11542) on June 15, 2021.
Carolyn Larsen, executive director, signed the petition. In the
petition, the Debtor disclosed $7,412,863 in total assets and
$8,891,012 in total liabilities.
Judge Rene Lastreto II presides over the Debtor's Chapter 11 case.
Lisa Holder is the Subchapter V trustee appointed in the case.
The Debtor tapped Wanger Jones Helsley as bankruptcy counsel, and
Littler Mendelson, PC and Whitney Thompson & Jeffcoach as special
counsel.
COMMUNITY THERAPIES: Seeks Use of Cash Collateral
-------------------------------------------------
Community Therapies asks the U.S. Bankruptcy Court for the Central
District of California, Los Angeles Division, for authority to use
cash collateral.
The Debtor requires access to and use of cash collateral in order
to operate its business, pay wages, suppliers, current taxes, and
other necessary expenses of running a business.
The Debtor estimates that it owes $1.6 million in federal payroll
taxes, and $110,000 in taxes to the Employment Development
Department. Exact figures are unavailable at the moment because of
the emergency nature of this case; counsel has not been able to
find anyone at the Internal Revenue Service or EDD who can verity
the totals owed, nor how much of these sums are actually priority
liabilities.
The Debtor collects more than $150,000 per month from a client
agency which pays for the Debtor's provision of physical and
occupational therapy services. The Debtor believes that some part
of this income constitutes Cash Collateral under 11 U.S.C. sec.
363(a) and belongs to the taxing authorities according to their
legal priorities.
The Debtor's major client, North Los Angeles Regional Center, holds
approximately $500,000 in accounts receivable owing to the Debtor.
The IRS has filed notices of federal tax lien covering the entire
amount owed, as has the EDD. The Debtor believes all accounts
receivable are subject to the lien notices.
The Debtor assumes that all taxes owed are priority in nature, and
that it must pay these priority taxes in full over the course of 60
months. This represents a monthly payment of approximately $26,700
to the IRS and $1,850 to the EDD.
The Debtor proposes to make monthly payments of $26,700 to the IRS
on the 24th day of the month for the next 60 months. The payments
will satisfy both the Code's requirements for handling a priority
tax debt in a chapter 11 plan, and at the same time provide
adequate protection against the diminution in value of the IRS's
collateral.
The priority taxes owing to the EDD total $110,295. In order to
consummate its plan, the Debtor must pay this sum over the course
of the next five years, or approximately $1,850 per month. The
Debtor proposes to make monthly payments of $1,850 to the EDD,
starting on the 24th of July, for the next 60 months. The payments
will satisfy both the Code's requirements for handling a priority
tax debt in a chapter 11 plan, and at the same time provide
adequate protection against the diminution in value of the EDD's
collateral.
A copy of the motion is available at https://bit.ly/3jpanOf from
PacerMonitor.com.
About Community Therapies
Community Therapies works with children and adults with various
disabilities in need of therapy services such as speech/ language,
early intervention for children birth to three with developmental
delays, disabilities, including autism spectrum disorders,
occupational therapy, sensory integration, nutrition, behavior,
social skills/friendship groups, family support groups, infant
massage, specialized programs for language and reading, and
relationship building for parent/child.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 21-11111) on June 24,
2021. In the petition signed by Roy Jensen, president, the Debtor
disclosed under $50,000 in assets and under $10 million in
liabilities.
Judge Victoria S. Kaufman oversees the case.
John D. Faucher, Esq., at Faucher Law is the Debtor's counsel.
DECK SUPPLY: May Use $32,000 Per Month of SBA Cash Collateral
-------------------------------------------------------------
Judge Charles Novack authorized Deck Supply Warehouse, LLC to use
up to $32,000 per month of cash collateral belonging to the United
States Business Administration to pay operating expenses. The
Court's order was pursuant to the agreement reached between the
Debtor and the SBA.
The SBA is granted a post-petition replacement lien on all assets
of the Debtor, as adequate protection for any diminution in value
of its interest, to the same extent as SBA had a valid and
perfected security interest in the prepetition collateral and all
proceeds therefrom. The postpetition replacement lien granted to
the SBA shall be subject to a carve-out for the payment of
compensation and expense reimbursement to any trustee appointed in
the Debtor's case.
A copy of the order is available for free at https://bit.ly/3w04TMr
from PacerMonitor.com.
About Deck Supply Warehouse, LLC
Deck Supply Warehouse, LLC is wholesaler of premium decking
materials. Deck Supply filed a Chapter 11 petition (Bankr. N.D.
Cal. Case No. 21-10266) on May 27, 2021 in the U.S. Bankruptcy
Court for the Northern District of California.
In the Petition signed by Jeanette Leavens, managing member, the
Debtor disclosed $569,116 in total assets and $1,518,068 in total
liabilities as of May 26, 2021.
Judge Charles Novack presides over the case.
The Law Offices of Brian A. Barboza represents the Debtor as
counsel.
DIAMONDHEAD CASINO: Posts $413,435 Net Loss in Q1 2020
------------------------------------------------------
Diamondhead Casino Corporation filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q disclosing a
net loss of $413,435 for the three months ended March 31, 2020,
compared to a net loss of $1.01 million for the three months ended
March 31, 2019.
As of March 31, 2020, the Company had $5.48 million in total
assets, $13.10 million in total liabilities, and a total
stockholders' deficit of $7.63 million.
The Company has incurred losses over the past several years, has no
operations, generates no operating revenues, and as reflected in
the accompanying unaudited condensed consolidated financial
statements, incurred a net loss applicable to common stockholders
of $438,835 for the three months ended March 31, 2020. In
addition, the Company had an accumulated deficit of $39,887,054 at
March 31, 2020. Due to its lack of financial resources and certain
lawsuits filed against it, the Company has been forced to explore
other alternatives, including a sale of part or all of the
Property.
The Company has had no operations since it ended its gambling
cruise ship operations in 2000. Since that time, the Company has
concentrated its efforts on the development of its Diamondhead,
Mississippi property. That development is dependent upon the
Company obtaining the necessary capital, through either equity
and/or debt financing, unilaterally or in conjunction with one or
more partners, to master plan, design, obtain permits for,
construct, open, and operate a casino resort.
In the past, in order to raise capital to continue to pay on-going
costs and expenses, the Company has borrowed funds, through Private
Placements of convertible instruments as well as through other
secured notes. The Company is in default with respect to payment
of both principal and interest under the terms of most of these
instruments. In addition, at March 31, 2020, the Company had
$8,615,210 of accounts payable and accrued expenses and only $234
cash on hand.
The Company said the above conditions raise substantial doubt as to
the Company's ability to continue as a going concern.
COVID-19
Diamondhead stated, "The Company had no casino or other operations
in 2020 when COVID-19 surfaced. Therefore, the Company did not
experience the adverse consequences that other casino companies
experienced from COVID-19 based on their cessation of
casino-related operations. However, as a result of COVID, the
Company's sole employee, its President, was unable to travel
domestically or internationally to meet with potential investors or
potential joint venture partners or to meet with outside,
independent contractors. The extent to which COVID-19 may have
affected the market for financing new construction in the
hospitality, hotel and casino industries given the impact of
COVID-19 on this segment of the economy is unknown. The Company
did not incur any extraordinary expenses as a result of COVID-19,
nor did it obtain any loans under the CARES Act."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/844887/000149315221015347/form10-q.htm
About Diamondhead Casino
Alexandria, Virginia-based Diamondhead Casino's intent is and has
been to construct a casino resort and other amenities on the
Property unilaterally or, in conjunction with one or more joint
venture partners. However, the Company has been unable to date, to
obtain financing to move the project forward and/or enter into a
joint venture partnership. Now, due to its lack of financial
resources, the Company has been forced to explore other
alternatives, including a sale of part or all of the Property. The
Company's preference is to sell only part of the Property inasmuch
as this would appear to be in the best interest of the stockholders
of the Company. However, there can be no assurance the Company
will be able to sell only part of the Property. The Company
intends to continue to pursue a joint venture partnership and/or
other financing while seeking a viable purchaser for part or all of
the Property. Thus, on March 25, 2019, Mississippi Gaming
Corporation, a wholly owned subsidiary of the Company, entered into
a brokerage agreement with an unrelated third party to seek a buyer
for all or part of the Property or, alternatively, to seek a joint
venture partner for the project. This contract has now expired,
but the Company continues to work with the brokerage firm.
Diamondhead Casino reported a net loss of $1.27 million for the
year ended Dec. 31, 2019, compared to a net loss of $1.28 million
for the year ended Dec. 31, 2018. As of Dec. 31, 2019, the Company
had $5.48 million in total assets, $12.67 million in total
liabilities, and a total stockholders' deficit of $7.19 million.
Marlton, New Jersey-based Friedman LLP issued a "going concern"
qualification in its report dated March 16, 2021, citing that the
Company has incurred significant recurring net losses over the past
several years. In addition, the Company has no operations. These
conditions raise substantial doubt about the Company's ability to
continue as a going concern. The Company's continued existence is
dependent upon its ability to raise the necessary capital with
which to satisfy liabilities, fund future costs and expenses and
develop the Diamondhead, Mississippi property.
EARTH FARE INC: Bankruptcy Estate Gets Wind-Down Court Approval
---------------------------------------------------------------
Leslie A. Pappas of Bloomberg Law reports that Health food grocery
chain Earth Fare Inc. will dissolve its bankruptcy estate and
distribute remaining asset sale proceeds, following a judge's
approval of its liquidation plan.
The Chapter 11 plan will repay first-lien lenders about 20% of the
$62.9 million they are owed, set aside $4 million for certain trade
creditors, and pay nothing for general unsecured claims.
Judge Karen B. Owens of the U.S. Bankruptcy Court for the District
of Delaware approved the plan at a hearing Tuesday, June 29, 2021,
after no one raised objections.
About Earth Fare
Founded in 1975 in Asheville, N.C., Earth Fare, Inc. --
http://www.earthfare.com/-- is a natural and organic food retailer
with locations across 10 states. It offers groceries and wellness
and beauty products.
Earth Fare and its affiliate, EF Investment Holdings, Inc., sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del.
Lead Case No. 20-10256) on Feb. 4, 2020. At the time of the filing,
the Debtors each disclosed assets of between $100 million and $500
million and liabilities of the same range.
Judge Karen B. Owens oversees the cases.
The Debtors tapped Young Conaway Stargatt & Taylor, LLP as legal
counsel; FTI Consulting, Inc. as financial and restructuring
advisor; and Epiq Corporate Restructuring, LLC as claims,
solicitation and balloting agent. Malfitano Advisors, LLC provides
disposition advisory services to the Debtors.
The U.S. Trustee for Region 3 appointed five creditors to serve on
the official committee of unsecured creditors in the Chapter 11
cases of Earth Fare, Inc. and EF Investment Holdings, Inc. The
Committee retained Pachulski Stang Ziehl & Jones LLP, as counsel,
and Alvarez & Marsal North America, LLC, as financial advisor.
FAMILY FRIENDLY: Seeks to Use Cash Collateral
---------------------------------------------
Family Friendly Contracting LLC asks the U.S. Bankruptcy Court for
the District of Maryland, Greenbelt Division, for authority to use
cash collateral and provide adequate protection.
The Debtor requires the use of Cash Collateral to meet its ordinary
and necessary expenses, including but not limited to payroll,
insurance, utilities, taxes, licenses, and vendors so that it may
maintain and preserve the value of its assets for the benefit of
its estate and creditors.
In November 2020, FFC Holdings, LLC entered into a Membership
Interest Purchase Agreement to purchase the Debtor (and its
associated real property) from Stephen Lyons who was its sole
owner. FFC Holdings purchased the Debtor for $4,650,000, a value
based upon, among other things, incoming revenue documentation.
Unfortunately, Mr. Lyons overstated the incoming revenue, provided
inaccurate and misleading information as it pertains to accounts
receivable and accounts payable, and utilized an improper referral
system and other questionable business practices. These omissions
and misrepresentations detrimentally and severely impacted the
Debtor's ability to properly operate and satisfy its financial
obligations.
The Debtor's principal secured creditor is Live Oak Banking
Company. On November 20, 2020, Live Oak made a loan to the Debtor
to facilitate the closing of the purchase from Lyons. Live Oak
asserts a lien on all of the Debtor's assets, including cash
collateral, as defined in Section 363(a) of the Bankruptcy Code.
The Debtor has insufficient revenue to pay the monthly obligations
owing to Live Oak.
The Debtor asserts that Live Oak is not a fully secured creditor.
As adequate protection for Live Oak, the Debtor proposes to (a)
file its monthly operating reports in a timely manner setting forth
its income, expenditures and use of Cash Collateral in compliance
with the Budgets; (b) keep its assets in good working order,
maintenance and repair, and (c) request that the Court grant Live
Oak replacement liens on the same assets on which it held
prepetition liens and all products and proceeds thereof in the
Interim Period.
A copy of the motion is available at https://bit.ly/3A8v0nQ from
PacerMonitor.com.
About Family Friendly Contracting LLC
Family Friendly Contracting LLC is a local home improvement,
restoration and contract management company that provides reliable
services to homeowners and commercial properties in Maryland, D.C.
and West Virginia. Its commercial and residential services include
fire and smoke restoration, water and flood damage restoration,
storm and wind damage restoration, remodeling, additions, basement
finishing, and service support for property management companies.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Md. Case No. 21-14213) on June 27, 2021.
In the petition signed by Adam Borcz, chief financial officer, the
Debtor disclosed up to $10 million in both assets and liabilities.
Paul Sweeney, Esq. at Yumkas, Vidmar, Sweeney & Mulrenin, LLC is
the Debtor's counsel.
FLORIDA: Resident Files Class-Action Suit After Condo Collapse
--------------------------------------------------------------
Elisha Fieldstadt at nbcnews.com reports that a resident of
Champlain Towers South, the Florida high-rise condo building that
partially collapsed, filed a class-action lawsuit less than 24
hours after nearly half the building was reduced to rubble.
The suit, filed by Manuel Drezner in Miami-Dade County said its
purpose is to "compensate the victims of this unfathomable loss."
Part of the 12-story building in Surfside, near Miami Beach,
collapsed. Of the building's 136 units, 55 in the northeast
corridor were gone in a matter of seconds.
Four people were dead and 11 had been hurt, officials said.
A staggering 159 people were unaccounted for, while 120 people from
the building were accounted for, Miami-Dade County Mayor Daniella
Levine Cava told reporters.
The suit said Champlain Towers South Condominium Association Inc.
"failed to adequately secure the building, placing the lives and
property of its occupants and visitors . . . at risk resulting in
the collapse of the building."
"At all relevant times, defendant was aware, or reasonably should
have been aware that the plaintiff's and the class's lives and
property were at risk due to the lack of precautions taken at
Champlain Towers South," according to the suit.
Officials have not yet determined the cause of the collapse. The
lawsuit said the defendants reserve the right to amend the filing
as more information and potential victims become known.
An agreement attached to the suit between Champlain Towers South
Condominium Association Inc. and condominium owners said "the
association shall maintain, repair and replace at the association's
own expense . . . all portions of the units . . . contributing to
the support of the building, which portions should include but not
limited to, the outside of the building and load bearing columns."
The suit said the agreement was clearly breached by Champlain
Towers South Condominium Association Inc.
The suit also quotes Kenneth Direktor, an attorney for Becker, a
law firm that has worked for the building since 1993, saying that
"repair needs had been identified" at the building.
Direktor did not immediately respond to requests for comment, but
Donna Berger, another attorney with Becker Lawyers, told NBC News
that it was "disappointing" for a lawsuit "to be the focus right
now of any owner in Champlain Towers South, when almost 100 of
their neighbors are still unaccounted for."
About 70 percent of the building was occupied at the time of the
collapse, Berger said.
"I feel as a culture we've become so accustomed from moving from
one tragic event to another, and there's often a rush to judgment,"
she said. "This was a community that was functioning well and doing
the right things and just struck with a freak tragedy."
Berger added that Champlain Towers South Condominium board member
Nancy Levin, who served as vice president, was among the group of
people unaccounted for.
"How in the span of less than a day could an attorney file a
lawsuit alleging anything? Every expert on the site doesn't know
what happened, yet some attorney has decided that he has figured
this all out," Berger added. "Certainly, if there's culpable
parties, they should be held accountable, but first and foremost
our focus is on the search and rescue efforts."
She said engineers would look at whether construction of a
high-rise next door "played any sort of role in destabilizing the
building."
Berger said the building had recently hired an engineer to undergo
a 40-year recertification process, as is required under Miami-Dade
County building code. Champlain Towers South was built in 1981.
Any property in the county that was built four decades or longer
ago is required to complete the inspection process within a few
years of that anniversary to certify "each building or structure is
structurally and electrically safe for the specified use for
continued occupancy," according to the county's notice sent to
property owners.
Champlain Towers South was undergoing a roof replacement to be in
compliance with the report, Berger said.
Public records did not show many issues regarding the building
beyond two lawsuits over alleged cracks in a unit's exterior wall.
Surfside Mayor Charles Burkett told reporters that he often jogged
by the building. He said he knew it had undergone some minor
construction and roof work that included a recent crane, but he
noted that many buildings undergo similar maintenance.
Champlain Towers South is across from a beach in the oceanfront
community of about 6,000 people.
Photos showed people gawking from the beach at the pile of rubble
below dozens of condos seemingly sliced in half and exposed to the
open air. [GN]
FLYNN CANADA: S&P Assigns 'B' Issuer Credit Rating, Outlook Pos.
----------------------------------------------------------------
S&P Global Ratings assigned its 'B' long-term issuer credit rating
to Toronto-based Flynn Canada Ltd., North America's largest
building envelope contractor. The outlook is positive. At the same
time, S&P Global Ratings assigned its 'B' issue-level rating and
'3' recovery rating to the company's proposed secured term loan and
revolving credit facility.
The positive outlook reflects S&P's expectation that Flynn will
generate credit measures that are strong for the rating beyond
2021, including an adjusted debt-to-EBITDA ratio sustained below
5x, led by the expected recovery in economic activity and
infrastructure spending, and steady demand for building services in
Canada and the U.S.
The proposed term loan issuance will lead to elevated leverage for
the company in 2021. Flynn plans to issue a new US$300 million term
loan B, with proceeds used primarily to refinance its existing debt
(about U$150 million; not rated) and fund a special dividend payout
(approximately US$112 million) to its shareholders. In addition,
the company will allocate US$30 million to pre-fund a future
acquisition, which S&P expects will expand Flynn's geographic
presence in the U.S. In tandem with this debt transaction, the
company also intends to obtain a US$85 million revolving credit
facility (RCF).
S&P said, "On a pro forma basis, we expect Flynn will have an
adjusted debt-to-EBITDA ratio (leverage) of over 5x in 2021, with
steady improvement to below 5x in the following two years. In our
view, the trend in Flynn's prospective credit measures is positive
and linked mainly to stronger macroeconomic conditions and
infrastructure spending in Canada and the U.S. We expect a
corresponding increase in demand for the company's core roofing,
architectural metals, glazing (windows), and building services
businesses, with relatively stable margins. As a result, we
estimate higher earnings and cash flow will primarily drive the
improvement in Flynn's leverage and cash flow coverage ratios
beyond this year."
However, leverage at the outset of the proposed debt transaction is
high and due in part to a material return to shareholders. In
addition, our financial risk assessment on the company is derived
primarily from Flynn's forecast operating results in 2022 and 2023,
amid a period of slowing estimated growth relative to very robust
levels assumed this year. S&P said, "Over this period, we do not
expect significant debt reduction and the company is likely to be
acquisitive, but our forecast free cash flow is modest. In our
view, more time is required for the company to demonstrate a
commitment and capacity to deleverage before we contemplate a
higher rating."
Flynn is a leading building envelope contractor in North America
but its scale is modest, and the company is exposed to industry
cyclicality. Flynn is the Canadian market leader in building
envelope contracting market, with about 10%-15% market share in key
cities in Canada. The company has also developed a growing presence
in the U.S. since its entrance to this market in 2014, with
operations in 15 cities. The building envelope market is highly
localized and fragmented, with many regional operators providing
similar services, and Flynn typically competes with local,
small-scale contractors.
The company has a long-track record of successful operation, with
more than 40 years of experience in the building envelope market.
Flynn has long-standing relationships with national and global
companies, including large-scale engineering and construction firms
and retailers, which facilitates high levels of repeat business. In
S&P's view, the company's national presence also provides operating
flexibility and contributes to a competitive advantage over peers.
S&P said, "Our view of Flynn's business risk is constrained by the
company's relatively modest scale of operations within the broader
business services industry, and exposure to construction market
cyclicality. Flynn's adjusted EBITDA is well below that of other
rated business services companies. In our view, the comparatively
lower base of earnings heightens sensitivity of profitability to
weaker-than-expected operating results. In addition, Flynn operates
in highly localized and fragmented markets, which are extremely
price-competitive and cyclical. In our view, this contributes to
low margins for Flynn and other building envelope companies
compared with the broader business services industry. We expect
Flynn's EBITDA margins to remain in the high-single-digit area over
the next few years. In addition, approximately three-quarters of
the company's revenue is derived from new construction projects. We
view the construction industry as highly cyclical, and this exposes
Flynn's operating results to lower activity levels that would
follow a sustained period of economic weakness."
However, the company has maintained relatively stable margins, as
demonstrated in 2020 despite pandemic-related disruptions to its
business. Its service-based business model requires limited capital
requirements--typically 1%-2% of total revenue--that reduces
financial risk associated with high levels of unused equipment and
working capital. Flynn's asset-light business also contributes to
returns on capital that S&P expects will remain above 10%, which is
favorable relative to certain of its closest peers and in the
context of lower operating margins.
S&P said, "We expect that steady growth in Flynn's earnings and
cash flow over the next few years should lead to stronger credit
measures. We expect stronger economic activity and infrastructure
spending over the next few years to underpin growth in Flynn's
earnings and cash flows. In our view, energy efficiency concerns
are likely to support continued investments by commercial landlords
in a largely aging stock of buildings in Canada and the U.S. Demand
for building repair, maintenance, and upgrade services should also
remain steady. We assume the building envelope market will expand
by 3%-5% annually over the next few years, with notable growth in
2021 as economies rebound from the COVID-19 pandemic. Furthermore,
despite sharply higher raw material costs this year, we expect the
company will continue to limit the impact on its earnings and
profitability through pass-throughs in its customer contracts.
Flynn's EBITDA will likely increase at the high end of the market
(about 5% annually organically), with modest contributions from
future acquisitions.
"We believe Flynn will generate positive free cash flow over the
next few years. In our view, free cash flow will provide a degree
of financial flexibility to fund modest acquisitions without
incurring debt, and we have incorporated this into our estimates.
However, we also assume regular dividends that limit material cash
flow available for debt repayment beyond term loan amortization.
Therefore, our assumption for leverage to decline and remain below
5x depends heavily on prospective growth in Flynn's earnings.
"Flynn's capital structure includes preferred shares held by the
company's largest shareholder, Fremont Private Holdings LLC, and we
treat this as debt. The preferred shares include a put option
(Fremont can exercise on six months' notice) and add about a turn
to our leverage calculation, but do not include a cash interest
component starting in 2021. In our view, the lack of interest
payments contributes to relatively favorable cash flow coverage
ratios that we incorporate into our financial risk assessment on
the company.
"The positive outlook reflects our expectation that the company
will generate credit measures that are commensurate with a higher
rating beyond 2021, including an adjusted debt-to-EBITDA ratio
sustained below 5x. We believe the expected recovery in economic
activity and infrastructure spending, and steady demand for
building services in Canada and the U.S., will enable Flynn to
generate higher earnings and cash flow and a corresponding
improvement in its credit profile.
"We could upgrade the company, over the next 12 months, if the
company maintains adjusted debt to EBITDA below 5x on a sustained
basis. In our view, this will likely require the company to meet or
exceed our estimates for 2021, with strong prospects for continued
growth in its core roofing, architectural metals, glazing (windows)
and building services businesses. We would also expect the company
to generate positive discretionary cash flow, thereby reducing the
risk of higher debt associated with potential acquisitions.
"We could revise the outlook to stable if, over the next 12 months,
we the company's adjusted debt-to-EBITDA ratio remains at or above
5x on a sustained basis. In our view, this could follow earnings
and cash flow that are below our expectations in 2021, most likely
from a slower-than-expected demand in Flynn's core end markets. In
this scenario, we would expect to temper our expectations for
prospective improvement in the company's operating results and
credit measures. A material debt-financed acquisition could also
lead us to revise the outlook to stable."
FREDERICK LLC: Files Emergency Bid to Use Cash Collateral
---------------------------------------------------------
The Frederick, LLC asks the U.S. Bankruptcy Court for the District
of Massachusetts for authority to use cash collateral.
The Debtor requires the use of cash collateral to continue its
business operations uninterrupted. The Debtor intends to use the
cash collateral to pay employees, purchase supplies, pay service
providers, pay administrative expenses incurred by the Debtor's
bankruptcy estate, acquire inventory, and pay other ongoing usual
and necessary expenses incurred in the day-to-day operation of the
business.
The Debtor owns and operates the Kemble Inn, a nine-guestroom
mansion built in the 1880s, and Table Six, a fine dining restaurant
and bar, located in Lenox, Massachusetts. Before the Covid-19
pandemic, the Debtor operated its business as a traditional hotel
and restaurant. Currently, due to the Covid-19 pandemic, the
restaurant is open only to guests of the inn. It currently has
approximately three employees, including its managing member, plus
two independent contractors.
Generally, the Debtor's strongest financial months, in terms of
revenue, are from the end of May to early October. The Debtor's
books and records indicate that in 2019, it had gross revenue of
$921,384 and realized an operating loss of $104,623, and, in 2020,
the Debtor had gross revenue of approximately $127,173 and realized
an operating loss of approximately $245,072. As of June 28, 2021,
the Debtor's gross revenue was approximately $129,268 and it is
currently showing net ordinary income of $24,444.52 year-to-date.
The filing of the Debtor's bankruptcy case was precipitated by a
series of events that resulted in insufficient cash flow and
availability of credit to continue its current operations; the
Debtor's financial troubles were exacerbated by the Covid-19
pandemic. In 2020, following its closure due to the Covid-19
pandemic, the Debtor defaulted on its secured debt owed to Adams
Community Bank and ACB called its loans. On April 13, 2021, ACB
assigned its loans with the Debtor to MA Opportunity Investments,
LLC. MAOI scheduled a foreclosure auction sale of the Debtor's
assets on June 30, 2021.
As of the Petition Date, the principal assets of the business have
an estimated value of not less than $3,316,480 consisting of real
estate and related inn and restaurant furnishings, having a value
of approximately $3,200,000, and approximately $116,480 in cash.
As of the Petition Date, the Debtor's secured debts of the business
total approximately $3,141,348. Unsecured debt is estimated to be
approximately $101,000.
On September 18, 2017, the Debtor entered into a financing
transaction with ACB, whereby it loaned the Debtor the total sum of
$2,400,000 pursuant to a Loan and Security Agreement . The 2017
Loan is secured by a mortgage on the Debtor's real estate and a
security interest in all of the Debtor's assets including, but not
limited to, all accounts, accounts receivable, inventory, general
intangibles, equipment, deposit accounts, and their proceeds. The
2017 Mortgage was recorded in the Berkshire Middle District
Registry of Deeds and the Personal Property security interest was
perfected by the filing of a UCC-1 with the Secretary of the
Commonwealth of Massachusetts. The MAOI holds a first-priority
security interest in the Collateral.
The total balance currently due to MAOI is approximately
$2,600,000. MAOI is fully secured.
On December 2019, the Debtor entered into a financing agreement
with American Express whereby AmEx loaned the Debtor the total sum
of $164,850 pursuant to a Promissory Note. The Note is secured by a
security interest in all of the Debtor's Personal Property. The
security interest was granted pursuant to a Security Agreement
dated December 2019 and perfected by the filing of a UCC-1 with the
Secretary of the Commonwealth of Massachusetts. AmEx holds a
second-priority security interest in the Personal Property.
The total balance currently due to AmEx is approximately $91,348.
AmEx is fully secured.
On April 12, 2020, the Debtor entered into a financing transaction
with the U.S. Small Business Administration whereby the SBA loaned
the Debtor the total sum of $427,600 pursuant to a Promissory Note.
The Note is secured by a security interest in all of the Personal
Property. The security interest was granted pursuant to a Security
Agreement dated April 12, 2020 and perfected by the filing of a
UCC-1 with the Secretary of the Commonwealth of Massachusetts. The
SBA holds a third-priority security interest in the Personal
Property.
The total balance currently due to the SBA is approximately
$427,600. The SBA is fully secured.
The Debtor asserts that the Secured Parties will be adequately
protected from the Debtor's use of cash collateral in that the
Post-Petition Liens prevent the diminution in value of the Secured
Parties' interest in their collateral. The Debtor says its proposed
use of cash collateral balances the parties' interests while
"achieving the paramount goal of debtor rehabilitation."
During the period covered by the Budget (through August 2021), the
Debtor projects its cash will increase from approximately $116,000
to $285,000. This activity reflects the seasonality of the Debtor's
business.
A copy of the motion and the Debtor's budget for July to October is
available at https://bit.ly/3x8c1rI from PacerMonitor.com.
About The Frederick, LLC
The Frederick, LLC owns and operates the Kemble Inn, a
nine-guestroom mansion built in the 1880s, and Table Six, a fine
dining restaurant and bar, located in Lenox, Massachusetts.
It sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. D. Mass. Case No. 21-30240) on June 28, 2021. In the
petition signed by Scott M. Shortt, manager, the Debtor disclosed
up to $10 million in both assets and liabilities.
Judge Elizabeth D. Katz oversees the case.
Andrea M. O'Connor, Esq. at FITZGERALD ATTORNEYS AT LAW, P.C. is
the Debtor's counsel.
GENEVER HOLDINGS: Court Extends Plan Exclusivity Until July 12
--------------------------------------------------------------
Judge James L. Garrity Jr. of the U.S. Bankruptcy Court for the
Southern District of New York extended by 90 days the periods
within which Debtor Genever Holdings, LLC has the exclusive right
to file a Plan of reorganization from April 12, 2021, until July
12, 2021, and to solicit acceptances from June 11, 2021, to
September 9, 2021.
The extension will now give the Debtor additional time to create a
unified plan that needs to be negotiated and developed in
conjunction with the marketing process. The Debtor anticipates that
by the end of the exclusivity periods extension, the marketing
effort will be well underway, at which time the Debtor, the Court,
and all creditors and interested parties will be in a better
position to evaluate the next steps.
A copy of the Court's Extension Order is available at
https://bit.ly/3d2m0GK from PacerMonitor.com.
About Genever Holdings
Genever Holdings is the owner of the entire 18th Floor Apartment
and auxiliary units in the Sherry Netherland Hotel located at 781
Fifth Avenue, New York, NY 10022.
Genever Holdings LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No.
20-12411) on October 12, 2020. The petition was signed by Yanping
Wang, authorized representative. At the time of filing, the Debtor
estimated $50 million to $100 million in both assets and
liabilities.
Judge James L. Garrity Jr. is the case judge. Kevin J. Nash, Esq.,
at Goldberg Weprin Finkel Goldstein LLP serves as the Debtor's
counsel.
GEORGE WASHINGTON: Gets $43.5 Million Bid From JMB Capital Partners
-------------------------------------------------------------------
Leslie A. Pappas of Bloomberg Law reports that the bankrupt
developer of the George Washington Bridge Bus Station, the George
Washington Bridge Bus Station Development Venture LLC, in Manhattan
has landed an offer from a lender to buy the company for $43.5
million after a higher offer fell through.
The lender, JMB Capital Partners Lending LLC, will place the
starting bid in an Aug. 6, 2021 bankruptcy auction for
substantially all of George Washington Bridge Bus Station
Development Venture LLC's assets.
The bid is less than half the $92 million original stalking horse
bid that Monarch Alternative Capital LP had agreed in April 2021 to
place at a bankruptcy auction.
About George Washington Bridge Bus Station
George Washington Bridge Bus Station Development Venture LLC the
lead developer of a public/private venture renovation and
improvement project for the George Washington Bus Station, located
at the east end of the George Washington Bridge, which is owned and
operated by the Port Authority of New York and New Jersey,
George Washington Bridge Bus Station Development Venture LLC sought
Chapter 11 protection (Bankr. S.D.N.Y. Case No. 19-13196) on Oct.
7, 2019. In its petition, it estimated assets between $50 million
and $100 million and liabilities between $100 million and $500
million. The case is handled by Honorable Judge Shelley C. Chapman.
Cole Schotz P.C., led by Rebecca W. Hollander, is serving as the
Debtor's counsel.
GIRARDI & KEESE: May Be Able to Pay Creditors, Erika Girardi Says
-----------------------------------------------------------------
Law360 reports that the bankrupt law firm, Girardi & Keese, founded
by disgraced attorney Thomas V. Girardi might be able to pay in
full the $130 million it owes to victims and other creditors, but
only if it carefully manages the lucrative batch of lawsuits that
must now be handed off to other firms to finish up, according to
Girardi's reality TV star ex-wife, Erika.
Erika Girardi made those assertions Monday, June 28, 2021, while
objecting to a request by Girardi Keese's liquidation trustee to
turn over 100 of the bankrupt firm's cases to Pittsburgh plaintiffs
firm Goldberg Persky White PC, which had previously been co-counsel
on the cases.
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
GLOBAL COURIERS: Files Emergency Bid to Use Cash Collateral
-----------------------------------------------------------
Global Couriers Inc. asks the U.S. Bankruptcy Court for the Western
District of Kentucky, Louisville Division, for authority to use
cash collateral.
In order to operate during the chapter 11 case and maintain the
value of the Debtor's business as a going concern and prevent harm
to the Debtor's employees and customers, the Debtor must utilize
prepetition collateral, including the Cash Collateral. As a
trucking company, the Debtor incurs costs for fuel, insurance, and
labor, which must be paid to continue operating. Without the
immediate use of the Cash Collateral, the Debtor would be unable to
pay operating expenses, including, without limitation, amounts
coming due after the Petition Date to employees for payroll,
insurers for vehicle insurance and fringe benefits, utility
providers for service, and the various other parties with which
Debtor does business.
CHTD Company is the beneficiary of a UCC financing statement filed
against the Debtor on August 16, 2019. It purports to perfect an
interest in all personal property of the Debtor. The Debtor
believes, but reserves the right to reconsider, that CHTD has a
first priority lien on all its assets and equipment other than
titled vehicles. This would give CHTD a potential interest in the
Cash Collateral.
According to CHTD, the Debtor's outstanding balance is
approximately $58,228.
The Debtor does not believe any other creditor has an interest in
its Cash Collateral.
As and for adequate protection, the Debtor proposes to make monthly
payments of $1,878.57 to CHTD, which is an amount equal to the
diminution in value of CHTD's security, if any, caused by Debtor's
use of Cash Collateral, effective as of the Petition Date.
Based on the Budget, the Debtor's monthly expenses are $75,811.54
exclusive of the payment to CHTD; with payment to CHTD, Debtor's
monthly expenses total $77,690.11.
The Debtor says it can afford the monthly payments to CHTD because
it anticipates monthly income of approximately $95,000.
A copy of the motion is available at https://bit.ly/3qzRjyn from
PacerMonitor.com.
About Global Couriers Inc.
Global Couriers Inc. is a trucking company. It sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Ky. Case
No. 21-31391) on June 28, 2021. In the petition signed by Alma W.
Watkins, treasurer, the Debtor disclosed up to $500,000 in both
assets and liabilities.
David M. Cantor, Esq. at Seiller Waterman LLC is the Debtor's
counsel.
GORHAM PAPER: Court Extends Plan Exclusivity Thru August 31
-----------------------------------------------------------
Judge Karen B. Owens of the U.S. Bankruptcy Court for the District
of Delaware extended the periods within which Gorham Paper and
Tissue, LLC and its affiliates have the exclusive right to file a
Chapter 11 Plan through and including August 31, 2021, and to
solicit acceptances through and including November 1, 2021.
The Debtors are acting transparently and continue to work with the
Committee, Zohar III, and others to reach a consensus on a proposed
plan of liquidation. The additional time will allow the Debtors to
continue executing their Chapter 11 strategy without interference
from any competing plan.
A copy of the Court's Extension Order is available at
https://bit.ly/3x7p0Kd from Donlinrecano.com.
About Gorham Paper and Tissue
Founded in 2011, Gorham Paper and Tissue LLC --
http://www.gorhampt.com/-- operates a paper mill and manufactures
customized tissues, towels, and specialty packaging.
Gorham Paper and Tissue and affiliate White Mountain Tissue, LLC
sought Chapter 11 protection (Bankr. D.N.H. Lead Case No. 20 12814
and 20-12815) on November 4, 2020. Gorham Paper was estimated to
have assets of $1 million to $10 million and liabilities of $50
million to $100 million.
The Honorable Karen B. Owens is the case judge. The Debtors tapped
Bernstein, Shur, Sawyer & Nelson, P.A. as their bankruptcy counsel,
Polsinelli PC as local counsel, and B. Riley Securities as an
investment banker. Donlin Recano & Company, Inc. is the claims and
noticing agent.
On November 10, 2020, The U.S. Trustee for Regions 3 and 9
appointed an official committee of unsecured creditors. Reed Smith
is the committee's legal counsel.
HANDL NEW YORK: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: HANDL New York, LLC
203 LaFayette Street
#7C
New York, NY 10012
Business Description: The Debtor is a supplier of cell phone cases
and attachable phone holders and stands.
Chapter 11 Petition Date: June 30, 2021
Court: United States Bankruptcy Court
District of Delaware
Case No.: 21-10984
Judge: Hon. John T. Dorsey
Debtor's Counsel: Adam Hiller, Esq.
HILLER LAW, LLC
1500 N French St.
Wilmington, DE 19801
Tel: 302-442-7677
Email: ahiller@adamhillerlaw.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Allen Hirsch, principal manager.
A copy of the Debtor's list of 20 largest unsecured creditors is
available for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/LNXXS3Y/HANDL_New_York_LLC__debke-21-10984__0001.3.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/K2OE75I/HANDL_New_York_LLC__debke-21-10984__0001.0.pdf?mcid=tGE4TAMA
HEO INC: May Use Cash Collateral Thru July 22
---------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Georgia,
Gainesville Division, has authorized Heo, Inc. to use cash
collateral on an interim basis through July 22, 2021, the date of
the final hearing. The Interim Period may be extended by further
Court order.
The Debtor alleges that to preserve the value of its assets, it
requires the use of the Cash Collateral in accordance with the
Order.
To provide adequate protection for the Debtor's use of the Cash
Collateral, the Lenders, to the extent they hold a valid lien,
security interest, or right of setoff as of the Petition Date under
applicable law, are granted a valid and properly perfected lien on
all property acquired by the Debtor after the Petition Date. The
Adequate Protection Liens will be deemed automatically valid and
perfected upon entry of the Order. As further adequate protection
for Bank of Hope, Debtor will continue to make monthly
interest-only payments.
A copy of the order is available at https://bit.ly/3hns6CW from
PacerMonitor.com.
About Heo, Inc.
Heo, Inc. owns and operates a commercial building located at 1356
Union Avenue Memphis, Tennessee. Heo, Inc. is wholly owned and
operated by Hyo S. Heo.
Heo, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. N.D. Ga. Case No. 21-20173) on February 18, 2021. In
the petition signed by Hyo Sook Heo, authorized representative, the
Debtor disclosed up to $100,000 in assets and up to $10 million in
liabilities.
Judge James R. Sacca oversees the case.
Rountree Leitman & Klein, LLC represents the Debtor as counsel.
HOSPITALITY WOODWORKS: Plan Exclusivity Period Extended Thru Nov. 1
-------------------------------------------------------------------
At the behest of Hospitality Woodworks, LLC, Judge Lisa Ritchey
Craig of the U.S. Bankruptcy Court for the Northern District of
Georgia, Atlanta Division extended the period in which the Debtor
may file any chapter 11 plan through and including November 1,
2021, and to solicit votes to accept a proposed chapter 11 plan
through and including December 30, 2021. This is the Debtor's first
exclusivity periods extension.
The Debtor continues to make good faith efforts to reorganize, has
diligently working towards a plan of reorganization and preparing
adequate information. As has been indicated in previous hearings,
the Debtor was severely impacted by Covid-19 and the related
restaurant shutdowns.
The Debtor will use the additional time to improve its cash flow
while the restaurant industry rebounds. What the plan of
reorganization looks like will depend on revenue improvements over
the next several months, since it is difficult at this early stage
of the case to formulate a plan, until the Debtor see how things
play out over the next few months as life gradually returns to
normal and restaurants, as well as similar hospitality businesses,
move forward with projects that were previously put on hold last
year.
Also, the Debtor is paying its undisputed post-petition obligations
as they come due.
The extension will give the Debtor more time to get a better sense
of its future cash flow and develop a plan that best satisfies the
needs of the Debtor's estate and its creditors and continue good
faith negotiations with its stakeholders.
A copy of the Debtor's Motion to extend is available at
https://bit.ly/3qivQtv from PacerMonitor.com.
A copy of the Court's Extension Order is available at
https://bit.ly/3wQjc7x from PacerMonitor.com.
About Hospitality Woodworks
Hospitality Woodworks, LLC is a manufacturer and installer of
custom furniture and millwork commercial interiors, including
upscale restaurants, hotels, and convention centers, primarily in
the southeastern United States, working directly with local and
national companies that operate those facilities.
Hospitality Woodworks sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 21-51852) on March
5, 2021. In the petition signed by David Robinson, owner, the
Debtor disclosed up to $500,000 in assets and up to $1 million in
liabilities.
William A. Rountree, Esq., at Rountree, Leitman & Klein, LLC
represents the Debtor as counsel.
HOWARD AVENUE: Seeks to Employ W. Bart Meacham as Special Counsel
-----------------------------------------------------------------
Howard Avenue Station, LLC seeks approval from the U.S. Bankruptcy
Court for the Middle District of Florida to hire W. Bart Meacham,
Esq., an attorney practicing in Tampa, Fla., to serve as special
counsel.
The Debtor requires a special counsel to represent it in an appeal
pending in the U.S. District Court for the Middle District of
Florida (Case No. 19-cv-2490), which concerns a commercial lease
between the Debtor and its landlord.
The Debtor will pay the law firm under a proposed contingency fee
arrangement.
W. Bart Meacham, Esq., the firm's attorney who shall handle the
case, disclosed in a court filing that he is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
W. Bart Meacham, Esq.
308 East Plymouth Street
Tampa, FL 33603-5957
Tel: (813) 223-6334
Fax: (813) 425-6969
Email: wbartmeacham@yahoo.com
About Howard Avenue Station
Tampa, Fla.-based Howard Avenue Station, LLC filed a voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
M.D. Fla. Case No. 12-08821) on June 6, 2012. In the petition
signed by Thomas Oriz, managing member, the Debtor disclosed $1
million to $10 million in both assets and liabilities.
Judge Catherine Peek McEwen oversees the case.
Stichter Riedel Blain & Postler, P.A. and W. Bart Meacham, Esq.,
serve as the Debtor's bankruptcy counsel and special counsel,
respectively.
INDUSTRIAL REPAIR: Wins Cash Collateral Access Thru Sept 1
----------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Ohio has
authorized Industrial Repair and Manufacturing, Inc. to use the
cash collateral of First Security Bank of Nevada and Buckeye State
Bank on an interim basis, and provide adequate protection.
The Debtor is authorized to use cash collateral to pay all ordinary
and necessary expenses consistent with the Debtor's budget, with a
variance of 15%.
As adequate protection for the Debtor's use of cash collateral,
FSBN will be entitled to receive a monthly payment of $18,157. FSBN
is also granted a postpetition perfected security interest to the
same extent and with the same priority as the bank held on a
prepetition basis in the Debtor's property. The FSBN Replacement
Lien will be deemed to be perfected immediately upon the entry of
the Interim Order without the need for filing any further
documentation.
In addition, FSBN is authorized, and the stay of 11 U.S.C. section
362 is lifted so as to allow FSBN, to file any documentation it
deems appropriate and necessary to perfect the interest.
Meanwhile, the Debtor will not make any payments to Buckeye, but
the bank is granted a post-petition perfected security interest
under section 361(2) to the same extent and with the same priority
as BSB held on a prepetition basis in the Debtor's property. The
BSB Replacement Lien will be deemed to be perfected immediately
upon the entry of the Interim Order without the need for filing any
further documentation.
As additional adequate protection, the Debtor will maintain
insurance on all its property and pay appropriate taxes and account
for all cash use.
Both Replacement Liens will have the same relative priority as the
Prepetition Liens held by both banks in the Debtor's Property as of
the Petition Date.
These events constitute Events of Default:
(a) The confirmation, conversion or dismissal of this Chapter
11 case;
(b) The Debtor's unauthorized use of the Cash Collateral;
(c) The Debtor ceasing operation of its business as a
Debtor-In-Possession under the Bankruptcy Code;
(d) Entry of a Court Order terminating the Cash Collateral
Order for cause;
(e) Entry of an order granting either FSBN or FSB relief from
the automatic stay;
(f) A specific order of yhe Court terminating the Order and/or
the entry of a court order superseding the Order, including a final
order entered by the Court; or
(g) September 1, 2021.
A further hearing on the use of cash collateral is scheduled for
August 18, 2021 at 9:30 a.m.
A copy of the order and the Debtor's budget for July and August is
available for free at https://bit.ly/3A9DlYj from
PacerMonitor.com.
The Debtor projects total revenues of $220,740 and total expenses
of $179,783 for the two-month period.
About Industrial Repair and Manufacturing
Industrial Repair and Manufacturing, Inc. provides warehousing and
storage services. It is the fee simple owner of a storage
warehouse located at 265 Rogers St., Delta, Ohio, valued at $1.42
million.
Industrial Repair and Manufacturing filed its voluntary petition
for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D.
Ohio Case No. 21-30505) on March 26, 2021. Peggy Toedter,
treasurer, signed the petition. At the time of filing, the Debtor
disclosed $1,926,975 in assets and $5,756,050 in liabilities.
Judge Mary Ann Whipple oversees the case. Steven L. Diller, Esq.,
at Diller and Rice, LLC, serves as the Debtor's counsel.
First Security Bank of Nevada, as creditor, is represented by
Jeffrey R. Sylvester, Esq. at Sylvester & Polednak Ltd.
Buckeye State Bank, as creditor, is represented by Scott N.
Schaeffer, Esq. at Kemp, Schaeffer & Rowe Co., LPA.
INTERNATIONAL WEALTH: New Budget Until August 18 OK'd
-----------------------------------------------------
Judge David S. Jones authorized International Wealth Tax Advisors,
LLC to continue using the cash collateral of JPMorgan Chase Bank
based on a new 90-day budget for the period from May 18 to August
18, 2021. The budget provided for $254,461 in total expenses for
the 90-day period or a monthly average of $74,204.
Since the period covered by the final budget has elapsed, the
Debtor proposed the new budget to sustain it through the case's
successful conclusion. The final order authorizing the Debtor's
use of the cash collateral was entered on February 5, 2021, and was
modified on April 26, 2021. The Debtor has provided
parties-in-interest with at least 10 days' notice of the request
for an order approving the New Budget. The Court accordingly
amended the final order to incorporate the approved new budget.
A copy of the order is available for free at https://bit.ly/3w0v0mk
from PacerMonitor.com.
About International Wealth Tax Advisors, LLC
Founded in 2015 and located on Madison Avenue in the heart of New
York City, International Wealth Tax Advisors -- https://iwtas.com/
-- provides highly personalized, secure and private global tax and
accounting and consulting to clients worldwide.
International Wealth Tax Advisors sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 21-10041)
on Jan. 11, 2021. At the time of filing, the Debtor estimated
assets of between $100,001 and $500,000 and liabilities of between
$1 million and $10 million.
Judge Shelley C. Chapman oversees the case.
The Debtor tapped Platzer, Swergold, Levine, Goldberg, Katz &
Jaslow, LLP as its counsel.
Yann Geron, Esq., is the Subchapter V Trustee appointed in the
Debtor's Chapter 11 case.
JPMorgan Chase Bank, creditor, is represented by A. Albert
Buonamici, Esq.
IRM EXPRESS: Wins Cash Collateral Access Thru Sept. 1
-----------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Ohio has
authorized IRM Express, LLC to use cash collateral on an interim
basis and provide adequate protection payments.
The Debtor requires immediate authority to use cash collateral to
fund its day-to-day operations and ultimately put forth a viable
plan. Specifically, the Debtor needs to pay for operating expenses
as provided in the budget in order to maintain and preserve its
assets and continue the operation of its business.
The parties with an interest in the cash collateral are First
Security Bank of Nevada and Buckeye State Bank.
The Debtor is permitted to use the cash collateral of FSBN and BSB
to pay all ordinary and necessary expenses consistent with the
Debtor's budget, except that the Debtor is also authorized: (i) to
exceed any line item on the Budget by an amount up to 15% of each
such line item; or (ii) to exceed any line item by more than 15% so
long as the total of all amounts in excess of all line items for
the Budget do not exceed 10% in the aggregate of the total Budget.
In addition, the Debtor will, under its Budget, be entitled to pay
to BSL Transport Leasing, Inc., the sum of $1,000 per month while
the Order is in effect and to the extent such payment is necessary
for BSL Transport Leasing, Inc. to pay such sum to BSB as and for
adequate protection. Provided that the adequate protection
payments are made, the Debtor will, in addition to the expenses set
forth in its Budget, be further entitled to pay from its Budget,
these expenses and costs:
(a) fees of the United States Trustee assessed under 28 U.S.C.
section 1930;
(b) professional fees and expenses, including those of the
Subchapter V trustee appointed in this case, upon application to
and allowance by the Court;
(c) any further adequate protection payments ordered by the
Court; and
(d) after notice and the opportunity for hearing, any further
expenses and/or costs allowed pursuant to court order.
Industrial Repair and Manufacturing, Inc., an entity related to the
Debtor, will, as and for the Debtor's Use of FSBN's Collateral,
including its Cash Collateral, pay to FSBN a monthly payment of
$18,156.93. The payment will be due on the 5th day of every month
while the Interim Order is in effect. In the event Industrial
Repair and Manufacturing Inc. is unable to timely and fully make
the FSBN Payment, the Debtor will be required to timely and fully
make the FSBN Payment.
As adequate protection for the Debtor's use of cash collateral,
FSBN is granted a postpetition perfected security interest under
section 361(2) of the Bankruptcy Code to the same extent and with
the same priority as FSBN held on a prepetition basis in the
Debtor's property. The FSBN Replacement Lien will be deemed to be
perfected immediately upon the entry of the Court of the Interim
Order without the need for filing any further documentation. In
addition, FSBN is authorized, and the stay of 11 U.S.C. section 362
is lifted so as to allow FSBN to file any documentation it deems
appropriate and necessary to perfect this interest.
The Debtor will not make any payments to BSB, but BSB is granted a
post-petition perfected security interest under section 361(2) to
the same extent and with the same priority as BSB held on a
prepetition basis in the Debtor's property. The BSB Replacement
Lien will be deemed to be perfected immediately upon the entry of
the Interim Order without the need for filing any further
documentation.
The FSBN and BSB Replacement Liens will have the same relative
priority as the Prepetition Liens held by the banks in the Debtor's
Property as of the Petition Date.
These events constitute Events of Default:
(a) The confirmation, conversion or dismissal of this Chapter
11 case;
(b) The Debtor's unauthorized use of the Cash Collateral;
(c) The Debtor ceasing operation of its business as a
Debtor-In-Possession under the Bankruptcy Code;
(d) Entry of a Court Order terminating the Cash Collateral
Order for cause;
(e) Entry of an order granting either FSBN or FSB relief from
the automatic stay;
(f) A specific order of the Court terminating the Order and/or
the entry of a court order superseding the Order, including a final
order entered by the Court; or
(g) September 1, 2021.
A further hearing on the use of cash collateral is scheduled for
August 18, 2021 at 9:30 a.m.
A copy of the order and the Debtor's budget is available at
https://bit.ly/35X7aO3 from PacerMonitor.com.
The Debtor projects total revenues of $146,000 and total expenses
of $142,810 for the two-month period.
About IRM Express, LLC
IRM Express, LLC is a licensed and bonded shipping and freight
company and operates from Delta, Ohio. Its business operations are
primarily operating as a third-party logistics service which allows
companies to outsource all things associated with logistics
including warehousing, transportation and pick-pack. It also
employs a FAA Repair Station. It leases most of its vehicles from a
related company, BSL Transport Leasing, Inc.
IRM Express sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ohio Case No. 21-30506 on March 26,
2021. In the petition signed by William Toedter, managing member,
the Debtor disclosed up to $500,000 in assets and up to $10 million
in liabilities.
Judge Mary Ann Whipple oversees the case.
Eric R. Neuman, Esq., at Diller and Rice, LLC is the Debtor's
counsel.
ISIS MEDICAL: May Use Cash Collateral Thru July 31
--------------------------------------------------
Judge Guy R. Humphrey authorized ISIS Medical, Inc. to use cash
collateral on an interim basis, pursuant to a third supplemental
budget and in accordance with the agreement between the Debtor and
FC Bank, extending the Debtor's access to cash collateral through
the earlier of July 31, 2021, or five business days following the
Debtor's receipt from FC Bank of written notice of default of the
current third stipulated order -- in the event the Debtor falls
into default.
The budget provided for $392,450 in total cash outflows for June
2021, and $378,750 for July 2021.
The Court ruled that FC Bank will receive $30,000 monthly upon
approval of the current Third Stipulated Order, and each subsequent
payment shall be made no later than 30 calendar days thereafter.
A copy of the Third Stipulated Order is available for free at
https://bit.ly/3vTCXtK from PacerMonitor.com.
About ISIS Medical
ISIS Medical, Inc., filed for Chapter 11 bankruptcy protection
(Bankr. S.D. Ohio Case No. 20-32705) on Dec. 17, 2020. Colleen
Duch, vice-president and sole shareholder of the Debtor, signed the
petition. At the time of the filing, the Debtor disclosed
$13,900,974 in assets and $6,034,068 in liabilities.
Judge Guy R. Humphrey oversees the case.
JACKSON DURHAM: Wins Cash Collateral Access Thru July 15
--------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Tennessee,
Nashville Division, has authorized Jackson Durham Floral-Event
Design, LLC to use cash collateral on an interim basis in
accordance with the budget through July 15, 2021, the date of the
final hearing.
The Debtor is authorized to use cash collateral nunc pro tunc to
the Petition Date. The Debtor is not authorized to exceed 110% of
the aggregate cap for any operating expense line item within a
weekly budget period absent additional authorization of the Court.
The Debtor said its ability to finance its operations and complete
a successful Chapter 11 reorganization requires continued use of
cash collateral.
These parties assert an interest in the Debtor's cash collateral:
a. CHTD Company filed a UCC-1 financing statement, Document
No. 834009230001, with the Texas Secretary of State, asserting a
lien in substantially all of Debtor's assets. This lien secures
that certain secured promissory note in favor of Swift Financial,
LLC, as servicing agent for WebBank.
b. Pinnacle Bank filed a UCC-1 financing statement, Document
No. 936440590001, with the Texas Secretary of State, asserting a
lien in substantially all of the Debtor's assets. This lien secures
that certain secured promissory note in favor of Pinnacle Bank.
c. Sirrom Partners, L.P. filed a UCC-1 financing statement,
Document No. 936129840001, with the Texas Secretary of State,
asserting a lien in substantially all the of Debtor's assets. This
lien secures a secured promissory note in favor of Sirrom. The
Sirrom loan was approved as a debtor-in-possession loan by Court
order on February 14, 2020 (Doc. No. 99, Case No. 3:20-bk-00122),
and Sirrom was granted a priming position over Pinnacle.
As adequate protection for the Debtor's use of cash collateral, the
Secured Creditors will receive a replacement security interest
under Section 361(2) of the Bankruptcy Code in the Debtor's
post-petition property and proceeds thereof to the same extent and
priority as each Secured Creditors' purported security interest in
Debtor's pre-petition property and the proceeds thereof.
The Debtor will make monthly payments of interest only, beginning
July 1 and on the first of each month thereafter, to Pinnacle,
which payments are approximately $1,800. The limitation of interest
accrual for the Debtor's junior Secured Creditor will benefit the
Debtor's remaining priority and unsecured creditors during the
pendency of the case.
The replacement liens and security interests granted will be deemed
perfected upon entry of the Order without the necessity of any of
the Secured Creditors taking possession of any collateral or filing
financing statements or other documents.
The Debtor is also directed to keep its assets insured by
reasonable and sufficient insurance coverage as required by the
terms of any applicable loan documents executed by the Debtor in
favor of the Secured Creditors, and will, upon request and
reasonable notice, provide the Secured Creditors with financial
statements setting forth the Debtor's revenue and expenses to allow
the Secured Creditors to determine the extent to which Debtor is
complying with the cash collateral Budget.
A copy of the order is available for free at https://bit.ly/3h4ZX4W
from PacerMonitor.com.
About Jackson Durham Floral - Event Design, LLC
Jackson Durham Floral - Event Design, LLC is a full-service event
design company. It sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Tenn. Case No. 21-01907) on June 21,
2021. In the petition signed by Sara M. Garner, managing member,
the Debtor disclosed $303,554 in assets and $1,719,793 in
liabilities.
Judge Marian F. Harrison oversees the case.
R. Alex Payne, Esq. at Dunham Hildebrand, PLLC is the Debtor's
counsel.
K&W CAFETERIAS: Bid to Use Cash Collateral Denied
-------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of North
Carolina, Winston-Salem Division, has denied the Motion for
Interim and Final Orders Granting Authority to Use Cash Collateral
filed by K & W Cafeterias, Inc. back on September 2, 2020.
The Court has entered its Order Confirming First Amended Plan of
Reorganization as Modified on June 23, 2021. As a result, the
Motion is denied as moot.
About K&W Cafeterias
K&W Cafeterias, Inc., a company based in Winston Salem, N.C., filed
a Chapter 11 petition (Bankr. M.D.N.C. Case No. 20-50674) on Sept.
2, 2020. In the petition signed by Dax C. Allred, president, the
Debtor disclosed $30,085,274 in assets and $22,189,229 in
liabilities.
Judge Benjamin A. Kahn presides over the case.
The Debtor tapped Northen Blue, LLP as its bankruptcy counsel, Bell
Davis & Pitt P.A. and Constangy Brooks Smith & Prophete LLP as its
special counsel, and Leonard, Call at Kingston Inc. as its broker.
William Miller, a U.S. bankruptcy administrator, appointed a
committee to represent unsecured creditors in Debtor's Chapter 11
case. The committee is represented by Waldrep Wall Babcock &
Bailey, PLLC.
KEYSER AVENUE MEDICAL: May Use Cash Collateral on Interim Basis
---------------------------------------------------------------
Judge Stephen D. Wheelis authorized Keyser Avenue Medical Park, LLC
(KAMP) and Natchitoches Medical Specialists, LLC to use cash
collateral on an interim basis.
Judge Wheelis ruled that:
a. KAMP is authorized to deposit rent and expense checks totaling
$23,405 into a DIP account which KAMP will open with BOM Bank;
b. From the rent and expense checks totaling $23,405, KAMP is
authorized to transfer to NMS $120 representing three months of Dr.
Tummala's expenses owed to NMS, for deposit in the NMS DIP account
with BOM Bank;
c. NMS is authorized to deposit rent and expense checks from
Clinical Pathology Laboratories, Inc. totaling $3,258.66 in the NMS
DIP account at BOM Bank;
d. From the CPL rent and expense checks totaling $3,258.66, NMS
is authorized to transfer to KAMP $2,588 representing three months
of CPL's rent owed to KAMP, for deposit in the KAMP DIP account
with BOM Bank;
e. KAMP is authorized to continue transferring the expense
amounts paid by or on behalf of Dr. Tummala ($40/month) to NMS as
those payments are received by KAMP, for deposit in the NMS DIP
account with BOM Bank;
f. NMS is authorized to continue transferring the rent amounts
paid by or on behalf of CPL ($862.75/month) to KAMP as those
payments are received by NMS, for deposit in the KAMP DIP account
with BOM Bank; and
g. KAMP is authorized to use rental income, as cash collateral of
BOM Bank, under Section 363 of the Bankruptcy Code for property
insurance, building maintenance, repairs and ongoing operation in
an amount not to exceed $10,000 per quarter commencing June 2021,
absent approval of BOM Bank.
BOM Bank is granted a post-petition lien on the Debtors'
postpetition properties of the kind and nature that it holds in
pre-petition property of KAMP, to the extent it does not already
have the same, in the same priority as it held in pre-petition
property.
Further, on an interim basis, KAMP is authorized to make an
adequate protection payment to BOM Bank for $15,205 on or before
July 6, 2021 representing 28 days' worth of interest on its loan
with BOM Bank.
A final hearing on the motion is scheduled on July 14, 2021 at 9:30
a.m. Objections must be filed and served no later than July 7.
A copy of the order is available for free at https://bit.ly/3h9XO6D
from PacerMonitor.com.
About Keyser Avenue Medical Park, LLC
Keyser Avenue Medical Park, LLC owns a land and building at 1029
Keyser Ave. valued at $2.4 million. It sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. La. Case No.
21-80221) on June 11, 2021. In the petition signed by James Knecht,
MD, managing member, the Debtor disclosed $3,051,857 in assets and
$3,931,792 in liabilities.
Affiliate, Natchitoches Medical Specialists, LLC, filed for Chapter
11 protection (Bankr. W.D. La. Case No. 21-80137) on April 11,
2021. The two cases are jointly administered under Natchitoches'
case.
Judge Stephen D. Wheelis oversees the cases.
Bradley L. Drell, Esq. at Gold, Weems, Bruser, Sues & Rundell is
the Debtors' counsel.
KNOTEL INC: Court Okays Chapter 11 Wind-Down Bankruptcy Plan
------------------------------------------------------------
Alex Wolf of Bloomberg Law reports that the bankrupt estate of
Knotel Inc. won court approval to wind down in bankruptcy after the
shared work-space business was sold to lender Digiatech LLC, an
affiliate of commercial real estate firm Newmark Group Inc.
Knotel's Chapter 11 plan was proposed jointly by the company and
the official committee of unsecured creditors, representing parties
owed between $300 million and $450 million. General unsecured
creditors will recover up to an estimated 2.4% on their claims
through a $6.2 million cash reserve and the creation of a
liquidation trust that can pursue potential legal claims against
directors and officers.
About Knotel Inc.
Knotel -- http://www.Knotel.com/-- is a flexible workspace
platform that matches, tailors, and manages space for customers.
New York-based Knotel offers workspace properties such as desks,
open, and private spaces on rent for companies in 20 global
markets. In the U.S., Knotel primarily serves in the New York City
and San Francisco areas.
Knotel Inc., founded in 2015, raised hundreds of millions of
dollars from investors. It expanded rapidly for years and was one
of the more aggressive competitors in the co-working and flexible
office space sector, becoming one of WeWork's fiercest rivals.
As the COVID-19 pandemic upended the co-working industry, Knotel,
Inc., and its U.S. subsidiaries sought Chapter 11 protection
(Bankr. D. Del. Case No. 21-10146) on January 30, 2021, to pursue a
sale of the assets to Newmark Group.
Knotel estimated $1 billion to $10 billion in assets and
liabilities as of the bankruptcy filing.
Morris, Nichols, Arsht & Tunnell LLP is serving as the Company's
counsel. Moelis & Company is an investment banker. Omni Agent
Solutions is the claims agent.
KOSSOFF PLLC: Court Refuses to Stay Suits Seeking Missing Funds
---------------------------------------------------------------
Law360 reports that a judge has declined to stay multiple actions
seeking to recover millions in missing escrow funds from New York
City real estate attorney Mitchell Kossoff, rejecting his argument
that moving ahead would compromise his Fifth Amendment right not to
self-incriminate.
In a one-page order issued Monday, June 28, 2021, New York Supreme
Court Justice Jennifer Schecter said that the case records include
"no indication" that "actual criminal proceedings" into Kossoff are
underway. And, regardless, the financial records sought in the
instant suits "cannot be withheld by him on Fifth Amendment
grounds.
About Kossoff PLLC
Kossoff PLLC is a real estate law firm based in New York City. It
operated as a law firm with offices located at 217 Broadway in New
York City. The firm held itself out as a law firm that provided
full-service real estate legal services specializing in litigation
and transactional matters, including leasing, sale and acquisition
of real property, commercial landlord tenant matters, real estate
litigation, and city, state and federal agency regulatory matters
Mitchell H. Kossoff, the firm's founder and only known managing
member, is alleged to have failed to and/or refused to return
millions of dollars of client funds when requested by clients.
Since on or about April 1, 2021, Kossoff's whereabouts have been
unknown, and Kossoffhas ceased all communications with the Debtor's
clients and with the attorneys and staff who were employed by the
Debtor.
Kossoff PLLC is subject to an involuntary petition for Chapter 7
bankruptcy (Bankr. S.D.N.Y. Case No. 21-10699) by creditors on
April 13, 2021. The case is handled by Honorable Judge David S
Jones.
Gran Sabana Corp NV, Louis & Jeanmarie Giordano, and other former
clients of the Debtor signed the involuntary petition. Carter
Ledyard & Milburn LLP, led by Aaron R. Cahn, represents the
petitioners.
Veteran restructuring lawyer Albert Togut of Togut, Segal & Segal
LLP, was named as Chapter 7 Trustee. He tapped his own firm as
counsel in the case.
LEVEL EIGHT: Seeks to Employ Joyce Lindauer as Bankruptcy Counsel
-----------------------------------------------------------------
Level Eight, Inc. seeks approval from the U.S. Bankruptcy Court for
the Northern District of Texas to hire Joyce W. Lindauer Attorney,
PLLC to serve as legal counsel in its Chapter 11 case.
The firm's hourly rates are as follows:
Joyce W. Lindauer, Esq. $450 per hour
Kerry S. Alleyne, Esq. $300 per hour
Guy H. Holman, Esq. $250 per hour
Dian Gwinnup $125 per hour
The Debtor paid a filing fee of $1,738.
Joyce Lindauer, Esq., the owner of the law firm, disclosed in a
court filing that she is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Joyce W. Lindauer, Esq.
Kerry S. Alleyne, Esq.
Guy H. Holman, Esq.
Joyce W. Lindauer Attorney, PLLC
1412 Main Street, Suite 500
Dallas, TX 75202
Tel.: (972) 503-4033
Fax: (972) 503-4034
Email: joyce@joycelindauer.com
About Level Eight
Arlington, Texas-based Level Eight, Inc. sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. N.D. Texas Case No.
21-41365) on June 7, 2021. In the petition signed by Bhavesh
Patel, president, the Debtor disclosed total assets of up to
$50,000 in assets and total liabilities of $10 million. Judge Mark
X. Mullin oversees the case. The Debtor tapped Joyce W. Lindauer,
Esq., as legal counsel.
LIVEXLIVE MEDIA: Delays Filing of Fiscal 2021 Annual Report
-----------------------------------------------------------
LiveXLive Media, Inc. filed a Form 12b-25 with the Securities and
Exchange Commission notifying the delay in the filing of its Annual
Report on Form 10-K for the fiscal year ended March 31, 2021.
LiveXLive Media was unable to file its Annual Report within the
prescribed time period without unreasonable effort or expense as a
result of the Company completing the accounting of its acquisition
of Customized Personalization Solutions, which was acquired in
December 2020 and has resulted in a delay of the filing of the Form
10-K. The Company is continuing to finalize the Form 10-K and
completing its financial statements to be included therein. The
Company does not expect its financial results to be included in the
Form 10-K, when filed, to reflect any material changes from those
included in the Company's press release issued on June 28, 2021,
which announced the preliminary results for the quarter and fiscal
year ended March 31, 2021. The Company expects to file the Form
10-K as soon as possible, but no later than July 14, 2021, the
fifteenth calendar day following the prescribed due date of the
Form 10-K.
The Company's management is also in the process of assessing the
effectiveness of the Company's internal control over financial
reporting and its disclosure controls and procedures. Although the
assessment is not yet complete, the Company expects to report
material weaknesses in the Company's internal control over
financial reporting; specifically, controls over material
non-recurring transactions, such as complex financial instruments,
business combinations, and classification of liabilities,
transaction-level controls over a newly acquired business, and
financial reporting and related disclosures. Therefore, the
Company's internal control over financial reporting as of March 31,
2021 was not effective. Management expects to recommend to the
audit committee of the Company's various measures intended to
remediate and improve the Company's internal control over financial
reporting.
About LiveXLive Media
Headquartered in West Hollywood, CA, LiveXLive --
http://www.livexlive.com-- is a global digital media company
focused on live entertainment. The Company operates LiveXLive, a
live music video streaming platform; and Slacker Radio, a streaming
music pioneer; and also produces original music-related content.
LiveXLive is at 'live social music network', delivering premium
livestreams, digital audio and on-demand music experiences from the
world's top music festivals and concerts, including Rock in Rio,
EDC Las Vegas, Hangout Music Festival, and many more. LiveXLive
also gives audiences access to premium original content, artist
exclusives and industry interviews. Through its owned and operated
Internet radio service, Slacker Radio(www.slacker.com), LiveXLive
delivers its users access to millions of songs and hundreds of
expert-curated stations.
LiveXLive reported a net loss of $38.93 million for the year ended
March 31, 2020, compared to a net loss of $37.76 million for the
year ended March 31, 2019. As of Sept. 30, 2020, the Company had
$81.01 million in total assets, $67.81 million in total
liabilities, and $13.20 million in total stockholders' equity.
BDO USA, LLP, in Los Angeles, California, the Company's auditor
since 2018, issued a "going concern" qualification in its report
dated June 26, 2020, citing that the Company has suffered recurring
losses from operations, negative cash flows from operating
activities and has a net capital deficiency that raise substantial
doubt about its ability to continue as a going concern. In
addition, the COVID-19 pandemic could have a material adverse
impact on the Company's results of operations, cash flows and
liquidity.
LIVEXLIVE MEDIA: Reports Fiscal 2021 Preliminary Results
--------------------------------------------------------
LiveXLive Media, Inc. announced record revenue and contribution
margin for its fourth fiscal quarter and year ended March 31,
2021.
In fiscal 2021, LiveXLive posted record revenue of $65.2 million,
as well as record contribution margin of $16.2 million. The
increases were driven by growth in advertising, merchandising,
pay-per-view and sponsorship revenue. On a U.S. GAAP basis,
LiveXLive recorded a loss from operations of ($29.4) million and a
net loss of ($41.8) million. On a non-GAAP basis, Adjusted
Operating Loss narrowed to ($5.8) million from ($12.6) million in
fiscal 2020.
LiveXLive's CEO and Chairman, Robert Ellin, commented, "Despite
tremendous headwinds in calendar 2020 due to COVID 19, we managed
record financial results across nearly all operating metrics. We
were able to complete two extremely additive and accretive
acquisitions - PodcastOne and our new merchandise company, CPS,
which rounds out our flywheel of associated businesses. With the
imminent return of live music events, we expect an increase in
revenue from nearly every aspect of our flywheel – live ticket
sales, live stream, pay-per-view, advertising, sponsorship, NFTs,
and specialty merchandise."
Mr. Ellin continued, "We are building long term, sustainable,
valuable franchises in audio music, podcasting, OTT, pay-per-view
and live streaming."
Recent Highlights
* LiveXLive's production of the inaugural live PPV of the
Social
Gloves: Battle of the Platforms event delivered over 3.5
billion total impressions and Social Gloves drove over 8,000
new paid subscribers of the LiveXLive app.
* Since launching its PPV platform, LiveXLive has generated
approximately $16 million in PPV packages, sponsorships, and
merchandise sales in the current calendar year.
* As previously announced in January 2021, with the assistance
of
J.P. Morgan, LiveXLive is continuing a process to explore
strategic alternatives in order to enhance shareholder value.
Potential alternatives may include, among others, a strategic
acquisition, divestiture, merger, sale or other form of
business combination. There can be no assurance that
LiveXLive's efforts will result in a specific transaction or
any particular outcome or its timing.
* During fiscal year 2021, LiveXLive livestreamed 146 live music
events and 1,781 artists across the LiveXLive platform,
generating over 149 million live views.
* LiveXLive's 24-hour linear OTT streaming channel reaches over
294 million people on Amazon Fire, Roku, Apple TV, SLING,
Xumo,
and ReachTV, Consumable TV streaming original content, artist
interviews, concerts, festivals, ancillary event-related
content, and short-form video content from around the world.
* Paid subscribers as of March 31, 2021 increased to 1,073,000
as
compared to 848,000 subscribers at March 31, 2020 and paid
subscribers as of June 15, 2021 increased to over 1,100,000 as
compared to 857,000 a year ago. Included in the total number
as of March 31, 2021 and June 15, 2021 are certain subscribers
which are the subject of a contractual dispute. LiveXLive is
currently not recognizing revenue related to these
subscribers.
Monthly average revenue per user was $3.48 for the 4th Quarter
of Fiscal 2021.
* PodcastOne had over 2.27 billion podcast downloads in Fiscal
2021 and its franchise of exclusive shows has now grown to
more
than 235 and now produces more than 300 podcast episodes per
week. Total social media reach across the exclusive talent
roster of PodcastOne now exceeds 282 million.
* Engagements within LiveXLive's social media channels garnered
a
triple-digit year-over-year increase with total engagements up
over 20% and average engagements per post up 25%.
* Announced in December 2020, LiveXLive's board of directors
authorized the repurchase up to two million shares of
LiveXLive's outstanding common stock from time to time,
subject
to certain compliance with applicable laws and regulations.
* In June 2021, LiveXLive entered into a new two-year $7 Million
secured revolving credit facility with East West Bank that
will
bear interest at the Prime Rate plus 0.5%. Cash and cash
equivalents as of June 25, 2021 was approximately $25
Million.
Fourth Quarter 2021 Results Summary Discussion
For the Q4 fiscal 2021, LiveXLive posted record revenue of $21.0
million versus $9.9 million. The increase was largely due to the
growth in advertising and sponsorship revenue driven by the
acquisition of PodcastOne as well as merchandising revenue from the
acquisition of CPS, offset by a decrease in subscription revenue as
a result of certain subscribers subject to a contractual dispute
with an OEM. Paid subscribers as of March 31, 2021 increased 27%
to 1,073,000, a net increase of approximately 225,000 as compared
to 848,000 million subscribers at March 31, 2020. Included in the
total number as of March 31, 2021 are certain subscribers which are
the subject of a contractual dispute. LiveXLive is currently not
recognizing revenue related to these subscribers. Monthly average
revenue per user was $3.48 as of March 31, 2021.
LiveXLive live streamed 37 live events during Q4 fiscal 2021, as
compared to 14 in Q4 fiscal 2020, significantly reduced the cost
per event, and made incremental investments of $0.7 million to
drive long-term growth in its live event franchises.
Q4 fiscal 2021 Operating Loss of ($8.8) million was higher as
compared to a ($7.9) million Operating Loss in Q4 fiscal 2020. The
$0.9 million increase was largely driven by increased operating
expenses of $2.9 million, primarily as a result of higher sales and
marketing costs related to live events.
Q4 fiscal 2021 AOL of ($2.5) million increased by 14%, or $0.3
million when compared to Q4 fiscal 2020 AOL of ($2.2) million. Q4
fiscal 2021 AOL was comprised of Operations AOL of ($1.1) million
and Corporate loss of ($1.4) million. The Operations AOL of ($1.1)
million was driven by a marketing campaign which impacted operating
results by approximately $1.0 million along with investments of
$0.7 million in our live events franchises during the quarter.
Capital expenditures for Q4 fiscal 2021 totaled approximately $1.0
million, which were largely driven by capitalized software costs
associated with development of the Company's integrated music
player and pay-per-view services.
At March 31, 2021, LiveXLive had $18.8 million in cash and cash
equivalents, which includes restricted cash of $0.1 million. In
June 2021, LiveXLive entered into a secured revolving credit
facility with East West Bank with a borrowing capacity of up to
$7.0 million. In connection with this credit facility, the holders
of LiveXLive's 8.5% Senior Secured Convertible Notes agreed to
extend the maturity date of their notes to June 3, 2023 and
subordinate their security interest in all of the Company's
assets.
Subsequent to March 31, 2021, LiveXLive received notification from
its lenders under the Small Business Administration's Payroll
Protection Program that the entire balance of the approximately
$2.5 million of PPP loans were forgiven.
The Company is in process of finalizing the accounting of its
recent acquisition, Customized Personalization Solutions, which was
acquired in December 2020, as a result, the Company will file an
extension for its Annual Report on Form 10-K for the year ended
March 31, 2021. The Company's financial results and guidance may
be subject to change based on the outcome of this process.
The Company expects that it will finalize its financial statements
and file the related Annual Report as soon as practicable within
the extension period.
A full-text copy of the press release is available for free at:
https://www.sec.gov/Archives/edgar/data/1491419/000121390021034477/ea143420ex99-1_livexlive.htm
About LiveXLive Media
Headquartered in West Hollywood, CA, LiveXLive --
http://www.livexlive.com-- is a global digital media company
focused on live entertainment. The Company operates LiveXLive, a
live music video streaming platform; and Slacker Radio, a streaming
music pioneer; and also produces original music-related content.
LiveXLive is at 'live social music network', delivering premium
livestreams, digital audio and on-demand music experiences from the
world's top music festivals and concerts, including Rock in Rio,
EDC Las Vegas, Hangout Music Festival, and many more. LiveXLive
also gives audiences access to premium original content, artist
exclusives and industry interviews. Through its owned and operated
Internet radio service, Slacker Radio(www.slacker.com), LiveXLive
delivers its users access to millions of songs and hundreds of
expert-curated stations.
LiveXLive reported a net loss of $38.93 million for the year ended
March 31, 2020, compared to a net loss of $37.76 million for the
year ended March 31, 2019. As of Sept. 30, 2020, the Company had
$81.01 million in total assets, $67.81 million in total
liabilities, and $13.20 million in total stockholders' equity.
BDO USA, LLP, in Los Angeles, California, the Company's auditor
since 2018, issued a "going concern" qualification in its report
dated June 26, 2020, citing that the Company has suffered recurring
losses from operations, negative cash flows from operating
activities and has a net capital deficiency that raise substantial
doubt about its ability to continue as a going concern. In
addition, the COVID-19 pandemic could have a material adverse
impact on the Company's results of operations, cash flows and
liquidity.
LOUISIANA HIGHWAY: Wins August 13 Plan Exclusivity Extension
------------------------------------------------------------
Judge Douglas D. Dodd of the U.S. Bankruptcy Court for the Middle
District of Louisiana extended the periods within which Louisiana
Highway St. Gabriel, LLC and its affiliates have the exclusive
right to file a plan and any amendments by 120 days, through August
13, 2021, and to obtain acceptances to a Plan by 60 days through
October 12, 2021. This is the Debtors' first extension of their
exclusivity periods.
On February 22, 2021, the Debtors filed an adversary proceeding
against Defendants LVS II SPE I, LLC, B2 FIE VII, LLC, FIE VIII,
and U.S. Bank National Association, seeking among other things, a
determination that the mortgages and security devices allegedly
encumbering title to properties owned by Debtors and purportedly
securing indebtedness owed to Lender are defective, invalid and
unenforceable, that the mortgages and security devices do not
lawfully encumber title to real and personal property and that the
mortgages and security devices should be stricken from the public
records.
The Debtors have made substantial progress in their chapter 11
cases. They have filed their schedules and statement of financial
affairs, defeated FIE VIII's motion to dismiss, and commenced the
Adversary Proceeding, and once the Defendants file their responsive
pleadings, the Adversary Proceeding will quickly begin to move
toward a trial and final determination. Upon a resolution of the
Adversary Proceeding, the Debtors will be in a position to file a
plan. The Debtors are also paying their debts as they become due.
The extension in this Section 1121 Motion will not harm any party
in interest in these chapter 11 cases. Rather, it will increase the
likelihood of a successful plan of reorganization that maximizes
the reorganization value.
These cases have been pending for just under 4 months. The
extension will not pressure creditors, but allow them sufficient
time to resolve the Adversary Proceeding, which is an unresolved
contingency and the cornerstone of the Debtors' plan.
A copy of the Debtors' Motion to extend is available at
https://bit.ly/3j3xrC4 from PacerMonitor.com.
A copy of the Court's Extension Order is available at
https://bit.ly/2STVjgJ from PacerMonitor.com.
About Louisiana Highway St. Gabriel
Louisiana Highway St. Gabriel, LLC and five affiliates filed their
voluntary petitions for relief under Chapter 11 of the Bankruptcy
Code (Bankr. M.D. La. Lead Case No. 20-10824) on December 17, 2020.
At the time of the filing, Louisiana Highway had estimated assets
of less than $50,000 and liabilities of between $500,001 and $1
million.
Judge Douglas D. Dodd oversees the case.
The Debtors tapped William H. Patrick, III, Esq., at Fishman
Haygood LLP as counsel and Maestri-Murrell, Inc. as real estate
broker.
LW RETAIL: Seeks to Hire Sills Cummis & Gross as Special Counsel
----------------------------------------------------------------
LW Retail Associates, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of New York to hire Sills Cummis &
Gross, P.C. to serve as its special counsel.
The Debtor needs the firm's legal services in connection with the
pending adversary proceeding involving its tenant, Millennium
Sports Management Company, as well as in drafting the proposed
amendment to their lease.
The firm's hourly rates are as follows:
Clint Kakstys, Esq. $675 per hour
Associates $325 to $650 per hour
Paraprofessionals $195 to $295 per hour
The Debtor initially paid $7,5000 to the firm.
Clint Kakstys, Esq., the firm's attorney who will be providing the
services, disclosed in a court filing that he is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Clint Kakstys, Esq.
Sills Cummis & Gross P.C.
101 Park Avenue, 28th Floor
New York, NY 10178
Phone: (646) 735-3705
Email: ckakstys@sillscummis.com
About LW Retail Associates
Brooklyn, N.Y.-based 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. Judge Elizabeth S. Stong oversees
the case.
The Debtor tapped DelBello Donnellan Weingarten Wise & Wiederkehr,
LLP as bankruptcy counsel, and Goldberg Weprin Finkel Goldstein LLP
and Sills Cummis & Gross P.C. as special counsel.
MALLINCKRODT PLC: Gets Court Okay to Sell Neurodegenerative Drug
----------------------------------------------------------------
Daniel Gill of Bloomberg Law reports that Mallinckrodt PLC received
a judge's approval to sell its neurodegenerative treatment
adrabetadex, ensuring the drug's continued trials and patients'
access while the company's bankruptcy proceedings continue.
Mandos LLC will pay $1 million and a portion of future sales, up to
6%. Mallinckrodt will also receive an additional $1.5 million if
the Federal Drug Administration approves the medication, which
treats a rare, fatal childhood disease, Niemann-Pick Type C Disease
("NPC").
The sale, approved Tuesday by Judge John T. Dorsey of the U.S.
Bankruptcy Court for the District of Delaware, also calls for
Mandos to pay an additional $500,000 upon approval.
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.
MATT'S SMALL ENGINE: Court Conditionally OKs Disclosure Statement
-----------------------------------------------------------------
Judge Karen K. Specie has entered an order conditionally approving
the Disclosure Statement explaining the Plan of Matt's Small Engine
Repair LLC.
A confirmation hearing will be held on August 18, 2021, at 1:30
p.m., Eastern Time, via ZOOM VIDEO CONFERENCE.
Aug. 11, 2021, is fixed as the last day for filing and serving
written objections to the Disclosure Statement and is fixed as the
last day for filing acceptances or rejections of the plan.
Objections to confirmation shall be filed and served 7 days before
the confirmation hearing.
About Matt's Small Engine
Matt's Small Engine Repair LLC is a Florida corporation limited
liability company owned by its managing member and founder, Matthew
Roberts, along with his wife, Casey Roberts. The Debtor filed a
Chapter 11 petition (Bankr. N.D. Fla. Case No. 21-40220) on June
22, 2021. The Debtor is represented by Allen P. Turnage, Esq. of
LAW OFFICE OF ALLEN TURNAGE, P.A.
McELRATH LEGAL: Taps Einwag Morrow & Associates as Accountant
-------------------------------------------------------------
McElrath Legal Holding, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Pennsylvania to hire Einwag
Morrow & Associates to prepare its payroll tax returns and provide
other necessary accounting services.
The firm's hourly rates are as follows:
Senior CPA accountant $230 per hour
Junior CPA accountant $135 per hour
Non-CPA accountant $135 per hour
Support staff $43 per hour
Ronald Einwag, the firm's accountant who will be providing the
services, disclosed in a court filing that he is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Ronald J. Einwag, CPA
Einwag Morrow & Associates
20 Stanwix Street, No. 630
Pittsburgh, PA 15222
Phone: (412) 281-8428
About McElrath Legal Holdings
Headquartered in Pittsburgh, Pa., McElrath Legal Holding, LLC is a
law firm doing primarily Chapter 13 debtor work.
McElrath Legal Holding first filed for Chapter 11 bankruptcy
protection (Bankr. W.D. Pa. Case No. 16-22568) on July 11, 2016,
disclosing total assets of up to $50,000 and total liabilities of
up to $10 million. In the previous case, the Debtor obtained
confirmation of its bankruptcy plan.
McElrath Legal Holdings again filed a Chapter 11 petition (Bankr.
W.D. Pa. Case No. 21-20110) on Jan. 20, 2021. At the time of the
filing, the Debtor had between $100,001 and $500,000 in both assets
and liabilities.
Judge Carlota M. Bohm oversees the case.
Gary W. Short, Esq., who served as the bankruptcy attorney in the
previous case, is also representing the Debtor in the new case.
MIDNIGHT MADNESS: Seeks Interim Use of PNC's Cash Collateral
------------------------------------------------------------
Midnight Madness Distilling LLC asked the Bankruptcy Court to
authorize, on an interim basis, the use of cash collateral in which
PNC Bank, N.A. has an interest, and to provide interim adequate
protection to PNC, pursuant to a budget.
A copy of the 13-week cash flow budget is available for free at
https://bit.ly/35VQnuA from PacerMonitor.com
Prepetition, the Debtor borrowed funds from PNC pursuant to a Loan
Agreement dated April 19, 2019. In addition, the Debtor financed
its machinery and equipment through PNC's wholly-owned subsidiary,
PNC Equipment Finance.
* an Equipment Line of Credit Note dated April 16, 2019 for
$1,258,640;
* a Committed Line of Credit Note dated April 19, 2019 for
$250,000;
* an Equipment Line of Credit Note dated May 15, 2019 for
$1,141,360; and
* a Term Note dated June 7, 2019 for $800,000.
As of the Petition Date, the Debtor owed PNC approximately of
$2,500,000.
Pursuant to a Security Agreement dated April 19, 2019 and a Cross
Collateralization Agreement dated May 17, 2019, PNC has a first
priority blanket lien on all of the Debtor's inventory, chattel
paper, accounts, machinery, equipment, and general intangibles and
a second priority mortgage lien on the Debtor's real property
located at 118 N. Main Street, Trumbauersville, Pennsylvania. PNC
filed financing statements perfecting its blanket lien with the
Secretary of State of the Commonwealth of Pennsylvania.
The Debtor also proposed to grant PNC replacement liens on
post-petition accounts and proceeds thereof if the use of the Cash
Collateral diminishes the value of PNC's interest.
A copy of the motion is available for free at
https://bit.ly/3qABuYb from PacerMonitor.com.
About Midnight Madness Distilling LLC
Midnight Madness Distilling LLC -- d/b/a Faber Distilling, f/k/a
Theobald & Oppenheimer LLC -- operates in the beverage
manufacturing industry. The Debtor sought Chapter 11 protection
(Bankr. E.D. Pa. Case No. 21-11750) on June 21, 2021, in the U.S.
Bankruptcy Court for the Eastern District of Pennsylvania.
In the petition signed by Casey Parzych, manager, the Debtor
estimated $1 million to $10 million in both assets and
liabilities.
Judge Magdeline D. Coleman is assigned to the case. Flaster
Greenberg PC is the Debtor's counsel.
MONAKER GROUP: Streeterville Swaps $600K Note for Equity
--------------------------------------------------------
Monaker Group, Inc. had entered into an exchange agreement with
Streeterville Capital, LLC, pursuant to which Streeterville
exchanged $600,000 of a June 2021 requested redemption of $1.25
million under the November 2020 Streeterville Note (which amount
was partitioned into a separate promissory note) for 300,000 shares
of the Company's common stock.
As previously reported in the Current Report on Form 8-K filed by
Monaker Group, Inc. with the Securities and Exchange Commission on
Nov. 27, 2020, the Company sold Streeterville, an accredited
investor, a secured promissory note in the original principal
amount of $5,520,000 on Nov. 23, 2020. Streeterville paid
consideration of (a) $3,500,000 in cash; and (b) issued the Company
a promissory note in the amount of $1,500,000, in consideration for
the November 2020 Streeterville Note (which November 2020 Investor
Note was funded on Jan. 6, 2021), which included an original issue
discount of $500,000 and reimbursement of Streeterville's
transaction expenses of $20,000.
The November 2020 Streeterville Note bears interest at a rate of
10% per annum and matures 12 months after its issuance date (i.e.,
on Nov. 23, 2021). From time to time, beginning six months after
issuance, Streeterville may redeem a portion of the November 2020
Streeterville Note, not to exceed an amount of $875,000 per month
if the Investor Note has not been funded by Streeterville, and
$1.25 million in the event the Investor Note has been funded in
full (which as discussed above, it has). In the event the Company
doesn't pay the amount of any requested redemption within three
trading days, an amount equal to 25% of such redemption amount is
added to the outstanding balance of the November 2020 Streeterville
Note.
About Monaker Group
Headquartered in Sunrise, Florida, Monaker Group, Inc. --
www.Monakergroup.com -- is an innovative technology company that is
building next generation solutions to power the travel, gaming, and
cryptocurrency industries.
Monaker Group reported a net loss of $16.51 million for the year
ended Feb. 28, 2021, compared to a net loss of $9.45 million for
the year ended Feb. 29, 2020. As of Feb. 28, 2021, the Company had
$25.99 million in total assets, $6.83 million in total liabilities,
and $19.16 million in total stockholders' equity.
Sugar Land, Texas-based TPS Thayer, LLC, the Company's auditor
since 2020, issued a "going concern" qualification in its report
dated June 7, 2021, citing that the Company has suffered recurring
losses from operations and has stockholders' deficit that raise
substantial doubt about its ability to continue as a going concern.
MORTGAGE INVESTORS: Gets OK to Hire Holland & Knight as Counsel
---------------------------------------------------------------
Mortgage Investors Corp. received approval from the U.S. Bankruptcy
Court for the Middle District of Florida to hire Holland & Knight,
LLP to serve as legal counsel in its Chapter 11 case.
The firm's services include:
(a) rendering legal advice with respect to the Debtor's powers
and duties, the continued operation of its business, and the
management of its property;
(b) preparing legal papers;
(c) appearing before the court and the Office of the U.S.
Trustee;
(d) assisting with and participating in negotiations with
creditors and other parties in interest in preparing a plan of
reorganization and taking necessary legal steps to confirm such a
plan;
(e) representing the Debtor in all adversary proceedings,
contested matters, and matters involving administration of the
case;
(f) representing the Debtor in negotiations with potential
financing sources, and preparing contracts, security instruments,
and other documents necessary to obtain financing; and
(g) performing all other necessary legal services.
W. Keith Fendrick, the firm's lead attorney who will handle the
case, will be paid at an hourly rate of $500.
Mr. Fendrick disclosed in a court filing that he is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
W. Keith Fendrick, Esq.
Holland & Knight LLP
100 N. Tampa St., Suite 4100
Tampa, FL 33602
Tel: 813-227-8500
Fax: 813-229-0134
Email: keith.fendrick@hklaw.com
About Mortgage Investors Corp.
Mortgage Investors Corp. is a St. Petersburg, Fla.-based company
founded in 1938 and owned by entrepreneur and former Tampa Bay
Rowdies owner Bill Edwards. It offered mortgage refinancing
solutions and serves military veterans in Florida.
Mortgage Investors sought Chapter 11 protection (Bankr. M.D. Fla.
Case No. 21-02521) on May 14, 2021. At the time of the filing, the
Debtor had between $100,001 and $500,000 in assets and between $1
million and $10 million in liabilities. Judge Caryl E. Delano
oversees the case. W. Keith Fendrick, Esq., at Holland & Knight,
LLP, serves as the Debtor's legal counsel.
MUSEUM OF AMERICAN JEWISH: May Use Cash Collateral Until July 19
----------------------------------------------------------------
Judge Magdeline D. Coleman authorized Museum of American Jewish
History, d/b/a National Museum of American Jewish History, to use
cash collateral until July 19, 2021, to pay Court-approved expenses
and other obligations as set forth in the budget.
The budget provided for total operating disbursements on a weekly
basis, as follows:
$82,500 for the week ending July 4, 2021;
$73,365 for the week ending July 11, 2021;
$82,500 for the week ending July 18, 2021; and
$73,365 for the week ending July 25, 2021.
The Court granted UMB Bank, N.A., or any duly appointed successor
trustee, replacement security interests in and replacement liens on
all of the Debtor's post-petition assets as to which UMB Bank, as
Indenture Trustee, held a pre-petition lien, provided that such
lien on post-petition assets shall apply only to the types of
collateral in which the Indenture Trustee held a valid and
enforceable prepetition lien. The replacement liens having the
same validity, extent, and priority as the liens of the Indenture
Trustee on the pre-petition collateral shall be equal to the
aggregate diminution in value, if any, after the Petition Date of
the pre-petition cash collateral.
Pursuant to the request of the Indenture Trustee and the Debtor,
the Court made no determination, as of the entry of the current
order, regarding the validity, extent, or priority of the liens of
the Indenture Trustee on the pre-petition collateral.
A hearing on the Debtor's continued use of the cash collateral is
scheduled for 11:30 a.m. on July 14, 2021. Objections must be
filed and served no later than 4 p.m., prevailing Eastern Time,
five business days before to the said hearing.
A copy of the 17th Interim Order is available for free at
https://bit.ly/35VS6QA from Donlin Recano, claims agent.
About Museum of American Jewish History
The Museum of American Jewish History -- https://www.nmajh.org/ --
is a Pennsylvania non-profit organization which operates the
National Museum of American Jewish History, the only museum in the
nation dedicated exclusively to exploring and interpreting the
American Jewish experience. The museum presents educational and
public programs that preserve, explore and celebrate the history of
Jews in America. The museum was established in 1976 and is housed
in the Philadelphia's Independence Mall.
On March 1, 2020, Museum of American Jewish History sought Chapter
11 protection (Bankr. E.D. Pa. Case No. 20-11285). The Debtor was
estimated to have $10 million to $50 million in assets and
liabilities. Judge Magdeline D. Coleman oversees the case. The
Debtor tapped Dilworth Paxson, LLP as its legal counsel and Donlin,
Recano & Company, Inc. as its claims agent.
MY FL MANAGEMENT: Wins Cash Collateral Access Thru Aug 23
---------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Florida,
Fort Lauderdale Division, has authorized My FL Management, LLC to
use cash collateral on a further interim basis through August 23,
2021.
The Debtor is permitted to use the Cash Collateral to operate in
the ordinary course of its business as provided in the Debtor's
Budget, subject to a 10% variance.
The Court ruled that A&D Mortgage LLC, the creditor, will receive
monthly payments in the amount of $69,202 as contemplated by the
Budget, as adequate protection payments. A&D is also granted valid
and perfected replacement liens on any and all of the Debtor's
property that A&D had valid and perfected liens on as of the
Petition Date.
A further hearing on the matter is scheduled for August 18 at 1:30
p.m.
A copy of the order and the Debtor's budget from August to October
is available at https://bit.ly/3do87D9 from PacerMonitor.com.
The Debtor projects $409,500 in total income and $331,477.33 in
total expenses for August.
About My FL Management
MY FL Management LLC owns Royal Beach Palace, a hotel located in
the residential Lauderdale-by-the-Sea.
Fort Lauderdale, Fla.-based MY FL Management sought Chapter 11
protection (Bankr. S.D. Fla. Case No. 21-11028) on Feb. 2, 2021.
Yuri Gnesin, manager, signed the petition. In the petition, the
Debtor disclosed assets of between $1 million and $10 million and
liabilities of the same range.
Judge Scott M. Grossman oversees the case.
The Debtor tapped Edelboim Lieberman Revah Oshinsky, PLLC as its
legal counsel and Karlinsky & Golub CPAs, PLLC as its accountant.
NATCHITOCHES MEDICAL: Taps Postlethwaite as Financial Advisor
-------------------------------------------------------------
Natchitoches Medical Specialists, LLC seeks approval from the U.S.
Bankruptcy Court for the Western District of Louisiana to hire
Postlethwaite & Netterville, APAC as financial advisor.
The firm's services include:
(a) assisting the Debtor with record keeping and preparation
of financial statements;
(b) reviewing financial information;
(c) preparing filings, including, but not limited to,
schedules of assets and liabilities, statements of financial
affairs, and monthly
operating reports;
(d) preparing liquidation analysis and a monthly analysis of
financial information (including analysis of significant changes
financially, operationally or otherwise);
(e) assisting with the preparation of the proposed business
plan and financial projections;
(f) preparing or reviewing documents necessary for
confirmation;
(g) assisting with claims resolution procedures, including,
but not limited to, analyses of creditors' claims by type and
entity; and
(h) providing such other financial advisory services as may be
required by additional issues and developments.
The firm's hourly rates are as follows:
Directors $315 - $425 per hour
Associate Directors $220 - $315 per hour
Managers $165 - $220 per hour
Seniors $135 - $165 per hour
Staff $110 - $135 per hour
Jason Macmorran, director at Postlethwaite & Netterville, disclosed
in a court filing that he is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
About Natchitoches Medical Specialists
Natchitoches Medical Specialists, LLC, a Natchitoches, La.-based
company that operates in the healthcare industry, sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. W.D. La. Case No.
21-80137) on April 11, 2021. At the time of the filing, the Debtor
disclosed total assets of $8,009,156 and total liabilities of
$286,300.
Affiliate, Keyser Avenue Medical Park, LLC, filed for Chapter 11
protection (Bankr. W.D. La. Case No. 21-80221) on June 11, 2021.
The two cases are jointly administered under Natchitoches' case.
Judge Stephen D. Wheelis oversees the cases.
Natchitoches and Keyser are represented by Diment & Associates, LLC
and Gold Weems Bruser Sues & Rundell, APLC, respectively.
NHC FOOD: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------
Debtor: NHC Food Company Inc.
5182 Old Dixie Hwy
Forest Park, GA 30297
Chapter 11 Petition Date: June 29, 2021
Court: United States Bankruptcy Court
Northern District of Georgia
Case No.: 21-54899
Debtor's Counsel: William A. Rountree, Esq.
ROUNTREE, LEITMAN & KLEIN, LLC
Century Plaza I
2987 Clairmont Road, Ste 350
Atlanta, GA 30329
Tel: 404-584-1238
Fax: 404 704-0246
E-mail: swenger@rlklawfirm.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by You Nay Khao, owner.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/WQCLJ3I/NHC_Food_Company_Inc__ganbke-21-54899__0001.0.pdf?mcid=tGE4TAMA
NINE POINT: Court Clears Ch. 11 Sale With Caliber Lien Protections
------------------------------------------------------------------
Law360 reports that the $250 million Chapter 11 sale of oil and gas
driller Nine Point Energy cleared a Delaware bankruptcy court
Tuesday, June 29, 2021 after the debtor, its buyers and a midstream
service provider agreed to language protecting the collateral of
the contractor.
During a virtual hearing, U.S. Bankruptcy Judge Mary F. Walrath
said she would sign an update sale order that included new language
providing adequate protection for the liens of Caliber Midstream, a
day after the court said Caliber had more than $7 million in valid
liens against the debtor for drilling and operational services.
About Nine Point Energy
Nine Point Energy Holdings, Inc. -- https://ninepointenergy.com/ --
is a private exploration and production company focused on value
creation through the safe, efficient development of oil and gas
assets within the Williston Basin.
Nine Point Energy Holdings, Inc. sought Chapter 11 protection
(Bankr. D. Del. Case No. 21-10570) as the Lead Case, on March 15,
2021. The three affiliates that concurrently filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code are
Nine Point Energy, LLC (Bankr. D. Del. Case No. 21-10571), Foxtrot
Resources, LLC (Bankr. D. Del. Case No. 21-10572), and Leaf
Minerals, LLC (Bankr. D. Del. Case No. 21-10573). The cases are
assigned to Judge Mary F. Walrath.
The Debtors estimated assets and liabilities (on a consolidated
basis) in the range $100 million to $500 million.
The Debtors tapped as counsel the following: Michael R. Nestor,
Esq. Kara Hammond Coyle, Esq. Ashley E. Jacobs, Esq., and Jacob D.
Morton, Esq., at Young Conaway Stargatt & Taylor, LLP; Richard A.
Levy, Esq., Caroline A. Reckler, Esq., and Jonathan Gordon, Esq.,
at Latham & Watkins LLP; and George A. Davis, Esq., Nacif Taousse,
Esq., Alistair K. Fatheazam, Esq., and Jonathan J. Weichselbaum,
Esq., at Latham & Watkins LLP.
The Debtors engaged AlixPartners LLP as their financial advisor,
Perella Weinberg Partners L.P. as their investment banker, and
Lyons, Benenson & Co., Inc., as their compensation consultant.
OPTION CARE: S&P Affirms 'B' ICR on Reduced Sponsor Ownership
-------------------------------------------------------------
S&P Global Ratings affirmed its 'B' issuer credit rating on
U.S.-based home- and alternate-site infusion services provider
Option Care Health Inc., which reflects its expectation that
adjusted debt to EBITDA will remain at or above 5x through most of
the year.
S&P said, "Our positive outlook reflects the likelihood that we
could upgrade the company within the next 12 months if credit
measures improve in line with our expectations, including sustained
adjusted debt to EBITDA of below 5x.
"We believe the reduced ownership stake by private equity
alleviates financial policy risk and increases the likelihood that
Option Care Health's adjusted debt to EBITDA will fall below 5x.
Madison Dearborn Partners (MDP) has reduced its ownership stake
below 40% following several public equity offerings. We expect the
reduced ownership stake will result in the financial sponsor having
less influence on the company's strategy and capital deployment.
"We expect gross debt to EBITDA will decline to below 5x by
year-end 2021 and improve further in subsequent years, stemming
primarily from positive organic revenue growth and steady EBITDA
margins. Option Care Health's public commitment to reducing net
leverage to below 4x by year-end 2021 further supports our
forecast.
"The positive outlook primarily reflects our expectation for
adjusted debt to EBITDA to improve to below 5x over the next 12
months supported by mid-single-digit-percent organic revenue
growth, modest EBITDA margin expansion, and significant free
operating cash flow generation of at least $85 million that should
facilitate debt reduction.
"We could upgrade Option Care Health within the next 12 months if
adjusted debt to EBITDA falls and remains below 5x. In this
scenario, we would likely expect modest EBITDA expansion from
mid-single-digit-percent revenue growth and steady EBITDA margins.
"We could revise our outlook to stable within the next 12 months if
adjusted debt to EBITDA remains at or above 5x, or if our view of
the company's financial policy leads us to believe that leverage is
less likely to be sustained below 5x. This could occur if Option
Care Health's financial performance weakens or if the company
reverses on its commitment to reduce leverage."
PACIFIC FOODS: Files for Chapter 7 Bankruptcy
---------------------------------------------
Marianas Variety reports that Pacific Foods LLC, doing business as
IHOP and Ajisen Ramen, has filed for Chapter 7 bankruptcy in
federal court.
"Since we acquired IHOP and Ajisen in 2016, we went through three
different disasters," Pacific Foods president Ralph N. Yumul told
Variety. He was referring to Typhoon Mangkhut, Super Typhoon Yutu
and the Covid-19 pandemic.
"As a new company, there is no way for us to recover."
Yumul, who is also the House floor leader, told Variety that their
company has been unable to pay several vendors.
"We are very apologetic for the inconvenience," he added as he
acknowledged that other lawsuits will be filed against their
company by other unpaid vendors.
"I understand that," he said. "We are not trying to just pay one
— we are trying to pay everybody. I have to pay."
On Monday, Yumul appeared before Superior Court Associate Judge
Kenneth L. Govendo for a hearing regarding Triple J's lawsuit
against Pacific Foods over the nonpayment of goods amounting to
$10,067.81 including interest.
Triple J, through attorney James R. Stump, filed the complaint last
year and asserted 28 breaches of contract for various goods against
Pacific Foods CNMI, the former operator of Ajisen and IHOP.
At the hearing, Stump asked Yumul if his company can make any
payments.
When Yumul told the lawyer that his company has filed for
bankruptcy protection, Stump said he would like to have a copy of
the Chapter 7 bankruptcy filing.
Judge Govendo, for his part, told the parties that if the federal
court approves the petition for bankruptcy the local court will
follow the direction of the federal court.
In March 2021, Bank of Guam sued the former IHOP Saipan operators
in Superior Court and demanded a payment of $317,238.28.
On June 15, 2021, a Guam-based vendor, Ecolab (Guam) LLC, served
Yumul with a complaint for nonpayment of rental equipment and
merchandise.
According to court documents, Ecolab is suing Pacific Foods in the
amount of $5,218.35.
According to Investopedia, Chapter 7 bankruptcy is sometimes called
"liquidation" bankruptcy.
"Businesses going through this type of bankruptcy are past the
stage of reorganization and must sell off assets to pay their
creditors... The bankruptcy court will appoint a trustee to ensure
that creditors are paid off in the right order, following the rules
of 'absolute priority.'"
"Secured debt takes precedence over unsecured debt in a bankruptcy
and is first in line to be paid off. Loans issued by banks or other
financial institutions that are secured by a specific asset, such
as a building or a piece of expensive machinery, are examples of
secured debt. Whatever assets and cash remain after all the secured
creditors have been paid are pooled together and distributed to
creditors with unsecured debt."
About Pacific Foods LLC
Pacific Foods LLC, which does business as IHOP and Ajisen Ramen,
produces natural and organic food products. The Company offers
broth, soups, grain beverages, coffees, pot pies, meals, and
special diets. Pacific Foods serves customers in the United
States.
Pacific Foods LLC sought Chapter 7 protection (Bankr. D. Northern
Mariana Islands Case No. 21-00001) on June 23, 2021. Vincent J.
Seman, of Seman Law Offices LLC, is the Debtor's counsel.
PARAGON OFFSHORE: Judge Considers Trustee's Ch.11 Fee Bid Offensive
-------------------------------------------------------------------
Law360 reports that a Delaware bankruptcy judge has called an
attempt by the U.S. Trustee's Office to charge $250,000 in
quarterly fees to the litigation trust of former debtor Paragon
Offshore "offensive," saying the request for fees on the
disbursement of a $90 million settlement was seeking to double-dip
on fees already paid by the debtor.
In a letter opinion issued late Monday, June 28, 2021, by U.S.
Bankruptcy Judge Christopher S. Sontchi, the court said the U.S.
Trustee's Office has already collected $250,000 in quarterly fees
from Noble PLC, the former parent of offshore drilling rig owner
Paragon.
About Prospector Offshore
and Paragon Offshore
Paragon Offshore Plc, and several affiliates filed Chapter 11
bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10385 to
16-10410) on Feb. 14, 2016. The Delaware Bankruptcy Court entered
an order on June 7, 2017, confirming the 2016 Debtors' Fifth Joint
Chapter 11 Plan of Reorganization.
Prospector Offshore Drilling S.a r.l. and three affiliates filed
separate Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos.
17-11572 to 17-11575) on July 20, 2017. The affiliates are
Prospector Rig 1 Contracting Company S.a r.l.; Prospector Rig 5
Contracting Company S.a r.l.; and Paragon Offshore plc (in
administration).
The Hon. Christopher S. Sontchi presides over the cases.
The Debtors are represented by Gary T. Holtzer, Esq., and Stephen
A. Youngman, Esq., at Weil, Gotshal & Manges LLP, and Mark D.
Collins, Esq., Amanda R. Steele, Esq., and Joseph C. Barsalona II,
Esq., at Richards, Layton & Finger, P.A., as counsel. The Debtors
hired as their financial advisors, Lazard Freres & Co. LLC; as
their restructuring advisor, AlixPartners, LLP; and as their
claims, noticing and solicitation agent, Kurtzman Carson
Consultants LLC.
In the petitions signed by Senior VIce President and CFO Lee M.
Ahlstrom, the Debtors estimated $1 billion to $10 billion in both
assets and liabilities.
The Debtors' bankruptcy filing came two days after the Paragon
Offshore group completed its corporate and financial reorganization
on July 18, 2017. The plan of reorganization under chapter 11 of
the U.S. Bankruptcy Code substantially de-levered Paragon
Offshore's ongoing business, eliminating approximately $2.3 billion
of secured and unsecured debt.
PHILADELPHIA ENTERTAINMENT: 3rd Circ. Tosses $50M License Fee Suit
------------------------------------------------------------------
Law360 reports that the bankrupt developer of a failed Philadelphia
casino can't sue the state to get back $50 million it paid for a
slot machine license because the license was not the developer's
"property," a Third Circuit panel ruled Tuesday, June 29, 2021.
Philadelphia Entertainment and Development Partners LP cannot sue
Pennsylvania to recover its license fee because the license was not
property over which the bankruptcy court had jurisdiction in PEDP's
adversary proceeding, which had claimed the state's 2010 revocation
of that license was effectively a "fraudulent transfer" under the
Pennsylvania Uniform Fraudulent Transfer Act, the appellate court
said.
About Philadelphia Entertainment
Philadelphia Entertainment and Development Partners, L.P., filed a
Chapter 11 bankruptcy petition (Bankr. E.D. Pa. Case No. 14-12482)
on March 31, 2014. Brian R. Ford signed the petition as authorized
signatory. The Debtor estimated assets of at least $10 million and
liabilities of at least $50 million. DLA Piper LLP (US) serves as
the Debtor's counsel. Judge Magdeline D. Coleman oversaw the case.
Philadelphia Entertainment and Development Partners, L.P., notified
the Bankruptcy Court that the Effective Date of its First Modified
Chapter 11 Plan of Liquidation occurred on Aug. 18, 2014. The
bankruptcy judge on July 28, 2014, confirmed the Plan dated as of
March 10, 2014; as modified on May 27.
PURDUE PHARMA: Asks Court to Approve $5.39 Mil. Exec Payment Plan
-----------------------------------------------------------------
Law360 reports that Purdue Pharma asked a New York bankruptcy court
Monday, June 28, 2021, to approve the OxyContin drugmaker's 2021
employee incentive and retention plans, which propose to pay its
top five executives up to $5.39 million this 2021, with its general
counsel receiving a seven-figure pay package.
In a 46-page motion, the drugmaker asked the bankruptcy judge to
approve a 2021 compensation payment plan under which Purdue CEO
Craig Landau would receive up to $2. 19 million, Chief Financial
Officer Edward Mahony would earn up to $755,900 and General Counsel
Marc Kesselman would get up to $1.76 million for their work this
2021.
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.
RANDOLPH HOSPITAL: BA Says Plan Disclosures Inadequate
------------------------------------------------------
The United States Bankruptcy Administrator ("BA") objects to the
Disclosure Statement for the Randolph Hospital, Inc.' Joint Plan of
Liquidation, asserting that it fails to provide adequate
information in at least the following respects:
* The sale transaction with American Healthcare Systems is
inadequately described; the schedule for closing the transaction is
material to the accuracy of the disclosure statement;
* There is no hypothetical Chapter 7 liquidation analysis;
* The description of the treatment of secured claims is
incomplete, as it is unclear whether they will have an unsecured
deficiency claim after the liquidation of their collateral. There
is an issue to their impairment.
* There is no description of the Debtor's assets, particularly
the personal property assets, including the receivables;
* As there is neither a liquidation analysis nor a description
of the debtor's assets, there is insufficient information regarding
the value of those assets (or the net sales price);
* Section VII "Classification and Treatment of Claims" is
incomplete, as it fails to estimate the recovery to creditors.
* There is no discussion of the possibility of avoidance
litigation and the payment of any net proceeds into the Liquidation
Trust.
* The effect of substantive consolidation and the elimination of
intercompany claims is not addressed;
* The existence and status of non-bankruptcy litigation is not
discussed.
* The amount of administrative claims is not disclosed.
About Randolph Hospital
Randolph Hospital -- https://www.randolphhealth.org/ -- operates as
a hospital that provides inpatient and outpatient services in North
Carolina. The Company offers, among other services, cancer care,
imaging, maternity services, cardiac services, surgical services,
outpatient specialty clinics, rehabilitation services, and
emergency services.
Randolph Hospital, Inc. and its affiliates, MRI of Asheboro, LLC
and Randolph Specialty Group Practice, each filed a voluntary
petition for relief under chapter 11 of the Bankruptcy Code (Bankr.
M.D.N.C. Lead Case No. 20-10247) on March 6, 2020. In the petition
signed by CRO Louis E. Robichaux IV, Randolph Hospital was
estimated to have $100 million to $500 million in both assets and
liabilities.
Judge Lena Mansori James oversees the case.
The Debtor is represented by Jody A. Bedenbaugh, Esq. and Graham S.
Mitchell, Esq., at Nelson Mullins Riley & Scarborough LLP. Epiq
Corporate Restructuring, LLC is the claims agent.
The Official Committee of Unsecured Creditors is represented by
Andrew H. Sherman, Esq., Boris I. Mankovetskiy, Esq., and Sills,
Cummis & Gross, P.C. The Bank of America, as the Lender, is
represented by Scott Vaughn, Esq.
REDWOOD EMPIRE: Gets Cash Collateral Access Thru July 22
--------------------------------------------------------
Judge Eddward P. Ballinger, Jr. authorized Redwood Empire Lodging,
LP to use cash collateral through and including July 22, 2021, to
pay postpetition expenses, pursuant to the budget, subject to a 10%
allowed line-item variance. The Debtor may not exceed the 10%
permitted variance without the prior written consent of Pacific
Premier -- with respect to the Page Hotel -- and Poppy and S&K --
with respect to the Rohnert Park Hotel -- or further Court order.
The Debtor shall not, during the interim period, pay (i) any wages
or other amounts to any insider, including Debra Heckert; (ii) any
fees or costs charged by the accounting firm Wyatt Whitchurch &
Anderson, and (iii) any franchise fees or charges owed to Best
Western International, Inc.
The Court ruled that lenders, who assert an interest in the cash
collateral, are granted as adequate protection, valid and perfected
security interests in the Debtor's postpetition assets of the same
type and to the same extent and priority as existed prior to the
Petition Date, which replacement liens will secure will secure
repayment of the indebtedness owing to the lenders, up to the
amount of actual postpetition diminution in value of each
respective lenders' interest in cash collateral caused by the
Debtor's postpetition use thereof.
A copy of the order, including the budgets of each of Best Western
(Page, Arizona) and Best Western (Rohnert, California) is available
for free at https://bit.ly/2U9ZncM from PacerMonitor.com.
The next hearing on the Motion will be on July 21, 2021, at 10:00
a.m. (AZ Time). Objections must be filed on or before July 15.
About Redwood Empire Lodging, LP
Redwood Empire Lodging, LP owns and operates two hotels -- the Best
Western Plus located at 208 N Lake Powell Boulevard, Page, Arizona
86040, and the Best Western Sonoma Winegrower's Inn, located at
6500 Redwood Drive, Rohnert Park, California 94928.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 21-04678) on June 16,
2021. In the petition signed by Debra Heckert, member, the Debtor
disclosed up to $50 million in both assets and liabilities.
Isaac M. Gabriel, Esq., at Quarles & Brady LLP is the Debtor's
counsel.
REGIONAL HEALTH: Joins Russell Microcap Index
---------------------------------------------
Regional Health Properties, Inc. has joined the Russell Microcap
Index at the conclusion of the 2021 Russell indexes annual
reconstitution effective upon the US market open on June 28, 2001,
in accordance with a final list of additions posted June 28, 2001.
Membership in the Russell Microcap Index, which remains in place
for one year, means automatic inclusion in the appropriate growth
and value style indexes. FTSE Russell determines membership for
its Russell indexes primarily by objective, market-capitalization
rankings and style attributes.
Brent Morrison, Regional Health Properties' chief executive officer
and president, commented, "Inclusion in the Russell index will
provide a welcome opportunity for us to reach a wider audience of
potential investors as the fundamentals of our business begin to
stabilize following the pandemic and its impact on the senior
living and long-term care markets. We are proactively taking
actions to improve the performance of our portfolio and strengthen
our balance sheet, which we believe improves our investment
profile."
Russell indexes are widely used by investment managers and
institutional investors for index funds and as benchmarks for
active investment strategies. Approximately $10.6 trillion in
assets are benchmarked against Russell's US indexes. Russell
indexes are part of FTSE Russell, a leading global index provider.
About Regional Health
Regional Health Properties, Inc. (NYSE American: RHE) (NYSE
American: RHEpA) -- http://www.regionalhealthproperties.com-- is a
self-managed healthcare real estate investment company that invests
primarily in real estate purposed for senior living and long-term
healthcare through facility lease and sub-lease transactions.
Regional Health reported a net loss attributable to common
stockholders of $9.68 million for the year ended Dec. 31, 2020,
compared to a net loss attributable to common stockholders of $3.49
million for the year ended Dec. 31, 2019. As of March 31, 2021,
the Company had $108.97 million in total assets, $97.84 million in
total liabilities, and $11.12 million in total stockholders'
equity.
RENNOVA HEALTH: Closes Acquisition Agreement with VisualMED
-----------------------------------------------------------
Rennova Health, Inc. has closed its agreement with VisualMED
Clinical Solutions Corp. (VisualMED), a Nevada based public
company, to merge its software and genetic testing interpretation
divisions, Health Technology Solutions, Inc. (HTS) and Advanced
Molecular Services Group, Inc., (AMSG) and their subsidiaries into
VisualMED. These entities will operate as wholly owned subsidiaries
of VisualMED which will immediately take the steps required to
complete a name and trading symbol change.
VisualMED intends to complete the required filings to become
compliant with SEC reporting requirements to become a fully
reporting company as soon as practical.
Rennova and VisualMed intend to take the necessary steps to comply
with the relevant regulations and rules to permit Rennova to
distribute shares in VisualMED to its shareholders at some time in
the future.
"We are delighted to have closed this transaction," said Seamus
Lagan, CEO of Rennova.
"Our software division has an exciting vision and plan to use our
current solutions to create an innovative and we believe unique
software solution for the health care industry. We remain
convinced that vision can be better delivered and create more value
for Rennova shareholders as a separate public entity."
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 March 31, 2021, the Company
had $11.21 million in total assets, $64.12 million in total
liabilities, and a total stockholders' deficit of $52.91 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.
ROOSEVELT INN: Seeks to Hire Reed Smith as Special Counsel
----------------------------------------------------------
Roosevelt Inn, LLC and Roosevelt Motor Inn, Inc. seek approval from
the U.S. Bankruptcy Court for the Eastern District of Pennsylvania
to hire Reed Smith, LLP as special insurance coverage counsel.
The Debtors need the firm's legal advice on insurance coverage
issues related to litigation involving their insurance carriers,
Samsung Fire & Marine Insurance Co. Ltd. and Public Service Mutual
Insurance.
The Samsung litigation is pending in the U.S. District Court for
the Eastern District of Pennsylvania while the PSMI litigation is
pending in the Philadelphia Court of Common Pleas.
The firm's hourly rates are as follows:
John N. Ellison, Esq. $1,200 per hour
Shruti D. Engstrom, Esq. $825 per hour
Associates $495 - $530 per hour
Paralegals $290 – 380 per hour
The firm provided a 10 percent discount off of its hourly rates.
John Ellison, Esq., the firm's attorney who will be providing the
services, disclosed in a court filing that he is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
John N. Ellison, Esq.
Reed Smith, LLP
Three Logan Square, Suite 300
Philadelpha, PA 19103
Tel.: +1 215 851 8100
Fax: +1 215 851 1420
About Roosevelt Inn and Roosevelt Motor Inn
Roosevelt Inn, LLC is a Philadelphia, Pa.-based company that
operates in the traveler accommodation industry.
Roosevelt Inn and its affiliate, Roosevelt Motor Inn, Inc., filed
voluntary petitions for relief under Chapter 11 of the Bankruptcy
Code (Bankr. E.D. Penn. Lead Case No. 21-11697) on June 16, 2021.
Anthony Uzzo, manager, signed the petitions. At the time of the
filing, the Debtors had between $1 million and $10 million in both
assets and liabilities.
Judge Ashely M. Chan presides over the cases.
The Debtors tapped Karalis PC as bankruptcy counsel, Asterion Inc.
as financial advisor, A. Uzzo & Company, CPA's PC as bookkeeper,
and Blank Rome LLP and Reed Smith LLP as special counsel.
RYAN 1000: May Use Cash Collateral Thru July 8
----------------------------------------------
Judge Beth E. Hanan authorized Ryan 1000, LLC, on an interim basis,
to use cash collateral in which Waterstone Bank, SSB may have
interest solely for purposes of paying its necessary monthly
operating expenses until the earliest to occur of:
* July 8, 2021;
* entry of a further Court order modifying or terminating the
Debtor's authority to use cash collateral; or
* the dismissal or conversion of the Debtor's case to one under
Chapter 7 of the Bankruptcy Code.
As adequate protection to Waterstone for the use of its cash
collateral, the Debtor will grant Waterstone a replacement lien of
the same priority to the same extent and in the same collateral as
Waterstone had pre-petition. The Debtor will also make adequate
protection payment of $1,330 to Waterstone.
A copy of the order is available for free at https://bit.ly/3hbIIxC
from PacerMonitor.com.
About Ryan 1000 LLC
Ryan 1000, LLC, a single asset real estate company based in
Milwaukee, Wisc., filed a petition under Subchapter V of Chapter 11
of the Bankruptcy Code (Bankr. E.D. Wisc. Case No. 21-21326) on
March 15, 2021. David Ryan, sole shareholder, signed the petition.
At the time of the filing, the Debtor disclosed up to $50,000 in
both assets and liabilities. Judge Beth E. Hanan oversees the
case. Strouse Law Offices represents the Debtor as legal counsel.
RYAN 8641 LLC: Gets Cash Collateral Access Thru July 8
------------------------------------------------------
Judge Beth E. Hanan authorized Ryan 8641 LLC to use, on an interim
basis, the cash collateral of Waterston Bank to pay for necessary
monthly operating expenses. The Debtor's authority to use cash
collateral shall expire on the earliest to occur of:
* July 8, 2021;
* a further Court order modifying or terminating the Debtor's
authority to use cash collateral; or
* the dismissal or conversion of Debtor's case to a case under
Chapter 7.
The Court ruled that the Debtor may grant Waterstone a replacement
lien of the same priority to the same extent and in the same
collateral as Waterstone had pre-petition. The Debtor is also
directed to make a monthly adequate protection payment of $1,186 to
Waterstone.
A copy of the order is available for free at https://bit.ly/35TAdlk
from PacerMonitor.com.
About Ryan 8641 LLC
Ryan 8641 LLC, a single asset real estate company based in
Milwaukee, Wisc., filed a petition under Subchapter V of Chapter 11
of the Bankruptcy Code (Bankr. E.D. Wisc. Case No. 21-21327) on
March 15, 2021. David Ryan, sole shareholder, signed the petition.
Judge Beth E. Hanan presides over the case. Strouse Law Offices
represents the Debtor as legal counsel.
SHARE ENERGY: Seeks to Employ Reese Baker as Bankruptcy Counsel
---------------------------------------------------------------
Share Energy Group, LLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of Texas to hire Reese Baker, Esq.,
of Baker & Associates, to handle its Chapter 11 case.
The Debtor needs a bankruptcy attorney to:
(a) analyze the financial situation and give legal advice to
the Debtor with respect to its duties under the Bankruptcy Code;
(b) prepare legal papers;
(c) represent the Debtor at the first meeting of creditors;
(d) represent the Debtor in all proceedings before the
bankruptcy court and in any other judicial or administrative
proceeding where its rights may be litigated or otherwise
affected;
(f) prepare and file a disclosure statement, if necessary, and
a Chapter 11 plan of reorganization; and
(g) assist the Debtor in any matters relating to or arising
out of its bankruptcy case.
The Debtor paid $10,000 to Mr. Baker, which was applied to filing
fees and pre-bankruptcy fees and expenses.
Mr. Baker disclosed in a court filing that he is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
Mr. Baker can be reached at:
Reese W. Baker, Esq.
Baker & Associates
950 Echo Lane, Ste 300
Houston, TX 77024
Tel.: (713) 869-9200
Fax: (713) 869-9100
Email: courtdocs@bakerassociates.net
About Share Energy Group
Share Energy Group, LLC owns and operates scrap tire recycling
facility at 3811 Fuqua St., in Houston. The plant is the only
facility in Texas with the recycling process and only one of three
in the United States.
Share Energy Group sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Texas Case No. 21-31764) on May 28,
2021. In the petition signed by Omar Pimentel, president, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Marvin Isgur oversees the case. Reese W. Baker, Esq., at
Baker & Associates is the Debtor's legal counsel.
SHARPE CONTRACTORS: To Seek Plan Confirmation on Aug. 4
-------------------------------------------------------
Judge Paul Baisier has entered an order approving the Disclosure
Statement explaining the Plan of Sharpe Contractors, LLC.
A hearing on confirmation of the Plan will be held on Aug. 4, 2021,
at 9:30 a.m., in Courtroom 1202, United States Courthouse, 75 Ted
Turner Drive, SW, Atlanta, Georgia 30303.
July 28, 2021, is fixed as the last day for filing and serving
written objections to confirmation of the Plan.
July 28, 2021, is fixed as the last day for filing written
acceptances or rejections of the Plan.
Chapter 11 Plan
According to the Fourth Amended Disclosure Statement, the Debtor's
primary asset is its pre-petition accounts receivable. The Debtor
does not own any heavy equipment or real property. The Debtor's
accounts receivable was approximately $176,000 as of the Petition
Date; however, much of that accounts receivable was earmarked for
subcontractors on active projects.
The Plan will treat claims as follows:
* Class 1 (Bank of America). BOA has filed a proof of claim for
$751,365.26. The Debtor will make monthly principal and interest
payments on BOA's secured claim amortized over 6 years at 4.5%
interest, in the estimated amount of $2,793.83. Class 1 is
impaired.
* Class 2 (Selective Insurance Co. of America). Selective shall
have a secured claim to the extent any Bonded Contract Funds are
paid or due to be paid to it by the respective obligees on the
Bonded Projects and shall receive no direct payment from Debtor on
its secured claim unless the Debtor receives any Bonded Contract
Funds from any source that the Court determines should be paid to
Selective. Selective and Debtor estimate the value of the Bonded
Contract Funds to be $2,012,395.96 for voting purposes, though the
actual amount received may be lower. Selective's remaining claim
shall be treated as unsecured in Class 9. Class 2 is impaired.
* Class 3 (Century Fire Protection, LLC). Any security interest
or attachment asserted by Century is junior in priority to the lien
of the Class 1 Secured Claimant. As a result, Debtor's collateral
has no equity for Century's claim to attach, and Debtor will treat
Century's entire claim as an unsecured claim in Class 9
($24,127.92). Century shall have a secured claim of $0.00. Class 3
is impaired.
* Class 4 (24 Capital, LLC). Any security interest or
attachment asserted by 24 Capital is junior in priority to the lien
of the Class 1 Secured Claimant. As a result, Debtor's collateral
has no equity for 24 Capital's claim to attach, and Debtor will
treat 24 Capital's entire claim as an unsecured claim in Class 9
($359,250.00). 24 Capital shall have a secured claim of $0.00.
Class 4 is impaired.
* Class 5 (American Funding Services). Any security interest or
attachment asserted by AFS is junior in priority to the lien of the
Class 1 Secured Claimant. As a result, Debtor's collateral has no
equity for AFS's claim to attach, and Debtor will treat AFS's
entire claim as an unsecured claim in Class 9 ($349,150). AFS shall
have a secured claim of $0.00. Class 5 is impaired.
* Class 6 (Alfa Advance Funding). Any security interest or
attachment asserted by AAF is junior in priority to the lien of the
Class 1 Secured Claimant. As a result, Debtor's collateral has no
equity for AAF's claim to attach, and Debtor will treat AAF's
entire claim as an unsecured claim in Class 9. AAF shall have a
secured claim of $0.00. Class 6 is impaired.
* Class 7 (Ridge Petroleum, Inc). Any security interest or
attachment asserted by Ridge is junior in priority to the lien of
the Class 1 Secured Claimant. As a result, Debtor's collateral has
no equity for Ridge's claim to attach, and Debtor will treat
Ridge's entire claim as an unsecured claim in Class 9. Ridge shall
have a secured claim of $0.00. Class 7 is impaired.
* Class 8 (Michael Page International, Inc.). Any security
interest or attachment asserted by MPI is junior in priority to the
lien of the Class 1 Secured Claimant. As a result, Debtor's
collateral has no equity for MPI's claim to attach, and Debtor will
treat MPI's entire claim as an unsecured claim in Class 9. MPI
shall have a secured claim of $0.00. Class 8 is impaired.
* Class 9: General Unsecured Creditors. Class 9 consists of all
non-insider general unsecured creditors of the Debtor, including
all Secured Claimants' deficiency claims that are reclassified as
Class 9 claimants. Holders of Class 9 claims shall be paid a pro
rata share of $800,000. Mr. Shane Sharpe shall contribute the
entire amount of the disbursements to Class 9 in 14 semi-annual
payments of $40,000 beginning 6 months following the Effective Date
and continuing every 6 months until the 14th payment is made. Mr.
Sharpe shall also make a payment of $80,000 on month 24, month 48,
and month 72 (the "Lump-Sum Payments") following the Effective
Date. The Semi-Annual Payments and Lump-Sum Payments together total
$800,000. Class 9 is impaired.
Funds necessary to fund the plan will be derived from two sources.
The payments to the Class 1 creditors will be made by the Debtor
from its operating income. The payments to unsecured creditors
will be made by Shane Sharpe, the Debtor's sole member.
A copy of the Order is available at https://bit.ly/2SqUWdf from
PacerMonitor.com.
A copy of the Disclosure Statement is available at
https://bit.ly/3zULsb7 from PacerMonitor.com.
About Sharpe Contractors
Sharpe Contractors, LLC, filed a Chapter 11 bankruptcy petition
(Bankr. N.D. Ga. Case No. Case 20-72638) on Dec. 14, 2020. At the
time of filing, the Debtor estimated 100,001 to $500,000 in assets
and $1,000,001 to $10 million in liabilities. The Debtor hired
Wiggam & Greer, LLC, as counsel, and Simmons & Jamieson, CPA as
accountant.
STARWOOD PROPERTY: S&P Rates Sr. Unsec. Sustainability Bonds 'B+'
-----------------------------------------------------------------
S&P Global Ratings assigned its 'B+' issue rating to Starwood
Property Trust Inc.'s proposed offering of $400 million of senior
unsecured sustainability bonds due 2026. The company will use the
proceeds of the offering--which will have little impact on its
leverage--to finance or refinance eligible green or social
projects. Until full allocation to such projects, the proceeds will
also help the company prepay the $700 million of senior notes due
in December 2021 when they become eligible for redemption without
premium in September.
S&P said, "We rate the bonds a notch below Starwood's issuer credit
rating of 'BB-' because of their structural subordination to the
secured debt that makes up most of the company's liabilities. But
we view favorably the use of unsecured debt because it demonstrates
Starwood's access to the capital markets and helps unencumber
assets.
"We recently revised the outlook on our rating on Starwood to
stable from negative mostly on a reduction in asset quality
pressures relating to the ongoing economic rebound. The company has
continued to report very low levels of problem loans, maintaining
its track record since its 2009 inception of virtually no losses.
"Our rating on Starwood continues to balance that strong track
record and its good diversification across real estate lending,
investing and servicing against its concentration in commercial
real estate in general, and its use of repurchase facilities with
margin call provisions.
"The stable outlook reflects our expectation that, over the next
year, Starwood--helped by the rebounding economy--will report
mostly stable asset quality trends while maintaining adequate
liquidity and leverage of 3.0x-4.0x, as measured by debt to
adjusted total equity. Pandemic-related changes and pressures in
commercial real estate, such as in the office market, may still
create challenges for the company and other lenders in the next few
years, but we expect it to work through those over time while
maintaining leverage, funding, and liquidity near current levels."
STEM HOLDINGS: All Five Proposals Approved at Annual Meeting
------------------------------------------------------------
Stem Holdings, Inc. held its 2021 Annual Meeting of Shareholders at
which the shareholders:
(1) elected Adam Berk, Steve Hubbard, Garrett M. Bender, Lindy
Snider, Dennis Suskind, Salvador Villanueva, Brian Hayek,
and Robert L. B. Diener as directors for terms expiring at
the
Annual Meeting in the year 2022;
(2) approved a proposal to amend the Company's Articles of
Incorporation to increase the number of authorized common
shares from 300,000,000 shares to 750,000,000 shares;
(3) approved a proposal to authorize a reverse split of the
Company's outstanding Common Shares, at the discretion of
the
Board of Directors within a range of one post-split common
share for each two pre-split common shares outstanding on the
record date and ten pre-split common share;
(4) approved a proposal to authorize a change of name of the
Company to Driven by Stem, Inc.; and
(5) approved a proposal to ratify the Audit Committee's
appointment of LJ Soldinger LLC as the Company's independent
registered public accounting firm for the year ending
Sept. 30, 2021.
About Stem Holdings
Headquartered in Boca Raton, Florida, Stem Holdings, Inc. --
http://www.stemholdings.com-- is a multi-state, vertically
integrated, cannabis company that, through its subsidiaries and its
investments, is engaged in the manufacture, possession, use, sale,
distribution or branding of cannabis, and holds licenses in the
adult use and medical cannabis marketplace in the states of Oregon,
Nevada, California, Oklahoma and Massachusetts.
Stem Holdings reported a net loss of $11.49 million for the year
ended Sept. 30, 2020, compared to a net loss of $28.98 million for
the year ended Sept. 30, 2019. At March 31, 2021, the Company had
approximate balances of cash and cash equivalents of $4.6 million,
negative working capital of approximately $17 million, and an
accumulated deficit of $63 million.
LJ Soldinger Associates, LLC, in Deer Park, IL, the Company's
auditor since 2017, issued a "going concern" qualification in its
report dated Dec. 24, 2020, citing that the Company and its
affiliates, had net losses of $11.5 million and $28.985 million,
negative working capital of $9.235 million and $2.635 million and
accumulated deficits of $51.386 million and $40.384 million as of
and for the year ended Sept. 30, 2020 and 2019, respectively. In
addition, the Company has commenced operations in the production
and sale of cannabis and related products, an activity that is
illegal under United States Federal law for any purpose, by way of
Title II of the Comprehensive Drug Abuse Prevention and Control Act
of 1970, otherwise known as the Controlled Substances Act of 1970.
These facts raises substantial doubt as to the Company's ability to
continue as a going concern.
SUZUKI CAPITAL: Unsecureds to Recover 2.5% in Plan
--------------------------------------------------
Suzuki Capital LLC submitted a First Amended Chapter 11 Plan of
Reorganization.
This Plan is a contract between the Debtor and all of its creditor
constituencies. It provides the mechanism, timing, and details of
all treatment and payment of creditor claims. It is the blueprint
for the Debtor's emergence from bankruptcy as a stronger and viable
entity. The information contained in this document is designed to
provide creditors and interest holders of the Debtor with
information to enable them to make an informed judgment concerning
the method by which the Debtor plans to reorganize and emerge from
bankruptcy. If the Bankruptcy Court confirms the Plan, it will be
binding on the Debtor, its creditors, equity holders, and other
interested parties.
This Plan provides for a comprehensive reorganization of the Debtor
to preserve its going-concern value and future business. Under
this Plan, the Debtor will pay (i) the tax portion of the Internal
Revenue Service's secured claim in the sum of $98,294 in full with
interest at 9% per annum in equal quarterly installment over 6
years commencing on October 1, 2021; (ii) the priority tax claims
in full in equal quarterly installments over 5 years commencing on
Oct. 1, 2021 with interest at 9% per annum; and, (iii) pay Allowed
Unsecured Claims, which is inclusive of the Internal Revenue
Service's claim for penalties and interest for the tax period Sept.
30, 2015 through June 24, 2019 in the total sum of $79,987.01, from
Available Funds, which is distribution the Debtor estimates will be
approximately 2.5% of each Allowed Unsecured Claim in quarterly
payments over 60 months commencing April 1, 2022.
A confirmation hearing will be held on July 29, 2021, at 10 a.m.
ET.
Any objection must be filed and served on or before July 22, 2021.
A copy of the Disclosure Statement is available at
https://bit.ly/3zZYu74 from PacerMonitor.com.
About Suzuki Capital
Suzuki Capital, LLC, sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 21-10338) on Feb. 23,
2021. Sammy Isamu Suzuki, chief executive officer, signed the
petition. In the petition, the Debtor disclosed assets of between
$100,000 and $500,000 and liabilities of between $1 million and $10
million.
Judge Michael E. Wiles oversees the case.
Platzer Swergold Levine Goldberg Katz & Jaslow, LLP is the Debtor's
legal counsel.
TALK VENTURE: Court Confirms Plan
---------------------------------
Judge Theodor C. Albert has entered an order that the 2nd Amended
Plan filed by Talk Venture Group, Inc., is confirmed and approved
by this Court.
The 2nd Amended Plan is confirmed pursuant to 11 U.S.C. Sec.
1129(a) as to all classes, except for Class 1(E).
Upon the substantial consummation of the 2nd Amended Plan, the
Debtor shall file an Application for a Final Decree as required by
Federal Rule of Bankruptcy Procedure 3022.
The Effective Date, as defined in the 2nd Amended Plan, shall be
the first business day that is 14 calendar days after the entry of
the order confirming the 2nd Amended Plan, with payments beginning
by the first day of the following month.
A Post-Confirmation Status Conference regarding the 2nd Amended
Chapter 11 Plan will take place on Dec. 8, 2021 at 10:00 a.m.
The Debtor must file a Post Confirmation Status Report no later
than November 24, 2021, explaining what progress has been made
toward consummation of the confirmed 2nd Amended Plan of
Reorganization.
Talk Venture Group Inc. acknowledges and understands that, on the
debt owed to the Missouri Department of Revenue (MDOR) for
withholding and sales tax amounts as set out in the Proofs of Claim
filed by MDOR and the Plan for Mr. Paul Se Won Kim, that Talk
Venture Group, Inc. is liable for those amounts and their payment.
Talk Venture Group Inc. agrees that it will make payment pursuant
to Section III(B)(ii) of the Second Amended Chapter 11 Plan of
Reorganization should Mr. Paul Se Won Kim default or not make
payments as described in the confirmed Chapter 11 Plan of
Reorganization in case 20-10168.
About Talk Venture Group
Talk Venture Group, Inc., sells a variety of products, including
baby safety products, auto towing straps, security surveillance
cameras, and bicycling apparel and shoes. Talk Venture Group filed
for Chapter 11 bankruptcy protection (Bankr. C.D. Cal. Case No.
19-14893) on Dec. 19, 2019. In the petition signed by Paul Se Won
Kim, its president, the Debtor was estimated to have under $500,000
in assets and under $10 million in liabilities. The Hon. Theodor
Albert oversees the case. The Debtor is represented by Michael Jay
Berger, Esq., at Law Offices of Michael Jay Berger.
TEN & FREE: Wins Cash Collateral Access on Final Basis
------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Texas,
Sherman Division, has authorized Ten & Free, Inc. to use cash
collateral on a final basis.
The Debtor asserted it has an immediate need to use the cash
collateral in which Forward Financing, LLC, Fox Capital Group,
Inc., Diesel Funding, LLC, Swift Financial and the Internal Revenue
Service may assert an interest, to permit the orderly continuation
of the operation of its business; maintain business relationships
with vendors, suppliers and customers; and satisfy other
operational needs.
As adequate protection for the Debtor's use of Cash Collateral and
to the extent of any diminution in value of the Secured Lenders'
interest in the Debtor's assets securing the Indebtedness, the
Secured Lenders are granted from, on and after the Petition Date,
valid and automatically perfected first priority replacement liens
and security interests in and upon all of the properties and assets
of the Debtor, real and personal, including, but not limited to,
those assets described in the Loan Documents, to the same extent
and validity as existed as of the Petition Date.
The Debtor's authority to use Cash Collateral under the Final Order
terminates upon occurrence of these events:
a. Conversion of the Debtor's chapter 11 case to a case under
chapter 7 of the Bankruptcy Code;
b. The appointment of a chapter 11 trustee under the Bankruptcy
Code;
c. the closing of a sale of all or substantially all of the
Debtor's assets; or
d. confirmation of a Plan of Reorganization
A copy of the order and the Debtor's monthly budget is available
for free at https://bit.ly/3hlftZi from PacerMonitor.com.
The Debtor projects total income of $105,000 and total expenses of
$99,463.97.
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.
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.
TRI-STATE SPORTS: Unsecureds to Get $100 Monthly Until Paid in Full
-------------------------------------------------------------------
Tri State Sports, Inc., submitted an Amended Plan of
Reorganization.
The Plan will treat claims as follows:
* Class 3 Claimants (Allowed Secured Claim of Caz Creek Tx,
LLC). Caz has filed a Proof of Claim in the amount of $12,699.63.
Caz shall have a secured claim in the amount of $12,699.63. The Caz
Secured Claim shall be paid in 120 equal monthly installments with
interest at the rate of 13.9% per annum commencing on the Effective
Date. Class 3 is impaired.
* Class 4 Claimant (Allowed Claims of Propel Financial Services,
LLC). The Propel Financial Services, LLC shall have two claims:
-- Class 4-1. Propel has filed a Proof of Claim on the Note in
the amount of $78,223.55. Propel shall have a secured claim for the
Note in the amount of $78,223.55 ("Propel Secured Claim #1"). The
Propel Secured Claim #1 shall be paid in 120 equal monthly
installments with interest at the rate of 14.8% per annum
commencing on the Effective Date.
-- Class 4-2. Propel shall have a secured claim for the Note in
the amount of $10,582.37 ("Propel Secured Claim #2"). The Propel
Secured Claim #2 shall be paid in 120 equal monthly installments
with interest at the rate of 14.8% per annum commencing on the
Effective Date. Propel shall retain its liens on the Collateral
until paid in full under the terms of this Plan.
The Class 4-1 and 4-2 Claimants are impaired.
* Class 5: Allowed Secured Claims of Ovation Services LLC as
agent for FGMS Holdings LLC. Ovation Services LLC as agent for FGMS
Holdings LLC ("Ovation"), shall have allowed secured claims for a
total amount of $147,582.29 plus 9.90% post-petition interest
starting from the Petition Date, plus reasonable and necessary
attorneys' fees and costs. Ovation's claims relating to proof of
claims #5, # 6 and #7 (together with interest, costs, charges, and
fees pursuant to 11 U.S.C. §506(b)) shall be paid in the following
manner: Within ten business days of the entry of the order
confirming the Plan, the Debtor and Ovation will execute new loan
documents that provide for the repayment of the total claims over
84 months at the interest rate of 9.9%. Class 5 is impaired.
* Class 6 Claimant (Allowed Claims of Unsecured Creditors ). The
Allowed Claims of Unsecured Creditors which shall share pro rata in
a monthly payment of $100 commencing on the Effective Date until
paid in full on their allowed claims. Class 6 is impaired.
The Debtor's obligations under the Plan will be satisfied out of
the Debtor's ongoing rental of the properties.
Attorneys for the Debtor:
Eric A. Liepins
ERIC A. LIEPINS, P.C.
12770 Coit Road
Suite 850
Dallas, Texas 75251
Tel: (972) 991-5591
Fax: (972) 991-5788
A copy of the Disclosure Statement is available at
https://bit.ly/2UrrFQf from PacerMonitor.com.
About Tri-State Sports Entertainment
Tri-State Sports Entertainment, Inc., sought protection under
Chapter 11 of the US Bankruptcy Code (Bankr. N.D. Tex. Case No.
20-42675) on August 25, 2020, disclosing under $1 million in both
assets and liabilities. Eric A. Liepins, Esq., is the Debtor's
counsel.
TUMBLEWEED TINY HOUSE: Wins Cash Collateral Access Thru July 31
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Colorado authorized
Tumbleweed Tiny House Company, Inc. to use cash collateral through
July 31, 2021, pursuant to the terms of the stipulation between the
Debtor and Janine Sagert.
As previously reported by the Troubled Company Reporter, Sagert
asserts a $150,000 claim against the Debtor as of the Petition
Date. Pursuant to their Loan Agreement, the Debtor is required to
make interest only payments of $1,000 to Ms. Sagert on the last day
of each month. The Debtor granted Ms. Sagert a security interest
in 75% of the Debtor's assets up to the first $200,000, in addition
to other things. Ms. Sagert filed a UCC Financing Statement to
perfect any security interests granted under the Loan Agreement.
As adequate protection for the Debtor's use of cash collateral,
Sagert is granted replacement lien and security interest upon the
Debtor's postpetition assets with the same priority and validity as
Sagert's pre-petition liens to the extent of the Debtor's
post-petition use of the proceeds of Sagert's pre-petition
collateral.
To the extent that the Adequate Protection Liens prove to be
insufficient, Sagert will be granted superpriority administrative
expense claims under section 507(b) of the Bankruptcy Code.
The Debtor will pay Sagert $1,000 per month by the last day of each
month beginning on May 28 through July 31, 2021, unless the payment
schedule is modified by a confirmed plan of reorganization.
A copy of the order is available at https://bit.ly/3AbTlJp from
PacerMonitor.com.
About Tumbleweed Tiny House Company
Tumbleweed Tiny House Company, Inc., a manufacturer of tiny house
RVs, sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. D. Colo. Case No. 20-11564) on March 4, 2020. At the time
of filing, the Debtor estimated between $500,000 and $1 million in
assets and between $1 million and $10 million in liabilities.
Judge Kimberley H. Tyson oversees the case.
Wadsworth Garber Warner Conrardy, P.C., and Gerard Fox Law, P.C.,
serve as the Debtor's bankruptcy counsel and special counsel,
respectively. Stockman Kast Ryan + Company is the Debtor's
accountant.
TWO RIVERS: Pot Greenhouse Biz Booted From Settlement
-----------------------------------------------------
Law360 reports that the company that operates a bankrupt marijuana
greenhouse leasing business was dismissed from a proposed
shareholder class action Tuesday, June 29, 2021, after the judge
agreed with its investors that the company was blocking them from
moving forward with a settlement.
U.S. District Judge Philip A. Brimmer of Colorado said in the order
that dismissing Two Rivers Water and Farming Co. from the case is
appropriate because as long as it is a defendant in the case, it
must participate in any class action certification and settlement
proceedings through counsel.
About Two Rivers and Farming
Two Rivers -- http://www.2riverswater.com/-- is a Colorado-based
company with a diverse asset base of land and water that plans to
monetize assets through recently acquired hemp companies to form an
integrated seed-to-consumer enterprise. The Company is positioned
to grow various strains of hemp with proprietary genetics, to sell
bulk biomass, process and extract Phytocannabinoids, and to develop
and distribute consumer products. The Company has developed a line
of proprietary whole-plant hemp-products, based on an innovative
first-to-market Nature's Whole Spectrum approach.
As of Sept. 30, 2019, the Company had $45.50 million in total
assets, $22.45 million in total liabilities, and $23.05 million in
total stockholders' equity.
GrowCo, Inc., was incorporated on May 4, 2014, by John R. McKowen
as the funding vehicle for two large scale commercial greenhouse
operations in Pueblo, Colorado. t was originally intended that the
greenhouses would be leased to commercial marijuana growers.
GrowCo, Inc., sought Chapter 11 protection (Bankr. D.D.C. Case No.
19-10512) on Jan. 24, 2019. At the time of filing, the Debtor
estimated assets and debt are $1 million to $10 million. The case
is assigned to Hon. Joseph G. Rosania Jr. The Debtor is represented
by:
WADSWORTH GARBER WARNER CONRARDY, P.C.
David V. Wadsworth
David J. Warner
2580 W. Main St., Suite 200
Littleton, CO 80120
Tel: (303) 296-1999
Fax: (303) 296-7600
VERTEX ENERGY: To Divest Motor Oil Collection, Recycling Assets
---------------------------------------------------------------
Vertex Energy, Inc. has entered into a definitive agreement to sell
its portfolio of used motor oil collection and recycling assets to
Safety-Kleen Systems, Inc., a subsidiary of Clean Harbors, Inc.,
for a total cash consideration of $140 million, subject to working
capital and other adjustments. The transaction is expected to
close during the third quarter 2021, contingent upon regulatory
clearance, various customary closing conditions and the approval of
Vertex shareholders.
Under the terms of the Agreement, Safety-Kleen will acquire the 69
million gallon per year Marrero used oil refinery in Louisiana; the
20 million gallon per year Heartland used oil refinery in Ohio; the
H&H and Heartland used oil collections business; the Nickco oil
filters and absorbent materials recycling facility in East Texas;
and the Cedar Marine terminal in Baytown, Texas. Collectively,
these assets generated first quarter 2021 operating income of $4.5
million and Adjusted EBITDA of $5.7 million.
STRATEGIC RATIONALE
* Transaction facilitates balance sheet transformation. After
retiring $6.3 million in term debt, together with the payment
of transaction-related fees and financial obligations, total
net cash proceeds from the transaction to Vertex are expected
to be approximately $90 million. A portion of the gross cash
proceeds from the transaction is planned to be used by Vertex
to exercise its option to repurchase Tensile Capital's
interest
in the Myrtle Grove facility located in Belle Chase,
Louisiana,
thereby allowing Vertex to resume 100% ownership in the
asset.
The Company anticipates that 5 million shares of remaining,
outstanding B and B1 convertible preferred stock that have not
already converted will be fully converted into common equity
by
the end of the second quarter 2021. Vertex believes net cash
proceeds from this transaction, together with a planned $125
million term loan facility, are sufficient to support the
Company's near-term funding requirements without the issuance
of common equity.
* Transaction to provide funding for new pre-treatment unit at
Myrtle Grove. Vertex intends to commence development of a
renewable feedstock pre-treatment unit at Myrtle Grove
beginning in the fourth quarter 2021. Vertex believes this
project will provide increased feedstock processing
optionality, positioning the Company to achieve a lower landed
cost of feedstock, over the long-term. Upon completion of the
project by year-end 2023, Vertex anticipates the new pre-
treatment capability will generate between $75 to $100 million
of incremental Adjusted EBITDA annually. The initial
anticipated capital expenditure related to the development of
the pre-treatment unit is estimated to be approximately $40
million.
* Transaction supports capital deployment into higher-return
energy transition opportunities. This transaction positions
Vertex to redeploy capital from used motor oil (UMO) and re-
refining assets into energy transition assets of scale. Vertex
believes this capital deployment represents an attractive
arbitrage opportunity, one that positions the Company to
achieve meaningful growth in Adjusted EBITDA, free cash flow
and net income, over a multi-year period.
MANAGEMENT COMMENTARY
"This transaction will achieve several important objectives, the
combination of which will advance our strategy of becoming a
leading pure-play energy transition company of scale," stated
Benjamin P. Cowart, President and CEO of Vertex. "First and
foremost, these asset sales will allow for a full recapitalization
of our balance sheet. After retiring costly term debt and other
financial obligations, we expect to bring approximately $90 million
of cash into our business at the close of this transaction."
"Over the near-term, we intend to allocate net cash proceeds from
the transaction toward both organic and inorganic growth
opportunities, consistent with our stated strategy," continued
Cowart. "Today, we announced that we plan to use a portion of the
net cash proceeds to fund initial development of a pre-treatment
technology at our Myrtle Grove facility, one that we expect will
increase our ability to process and market a wider range of
cost-advantaged renewable feedstocks. We believe the pre-treatment
of second-generation organic feedstocks have the potential to
contribute significant, incremental cash flow from operations upon
planned completion by year-end 2023."
"During the past decade, Vertex has assembled one of the leading
independent UMO collections and re-refining networks in the United
States," continued Cowart. "After careful consideration, our Board
of Directors concluded that the sale of these assets to
Safety-Kleen was the optimal outcome for all shareholders, given
our focus on pursuing higher-growth, higher-margin energy
transition businesses. Safety-Kleen recognized the value of our
black oil recycling assets, resulting in a compelling all-cash
offer."
"As for our many dedicated employees who will be joining
Safety-Kleen in conjunction with this transaction, I want to
express my deep gratitude for your many efforts on behalf of our
organization," noted Cowart. "Clean Harbors, the parent company of
Safety-Kleen, is a leading provider of environmental and industrial
services, a team whose focus on sustainable business practices is
closely aligned with our own. We look forward to completing this
transaction by the end of the third quarter 2021."
"We expect this transaction to simplify our business and capital
structure, directing our collective focus on assets, products and
technologies that support the low-carbon energy transition. We
look forward to providing additional updates on our progress over
the coming months," concluded Cowart.
ADVISORS
Houlihan Lokey is acting as financial advisors to Vertex on the
transaction. H.C. Wainwright issued a fairness opinion to Vertex in
regards to the proposed asset sale to Safety-Kleen. Vallum
Advisors acted as financial communications counsel to Vertex.
About Vertex Energy
Houston-based Vertex Energy, Inc. (NASDAQ: VTNR) is a specialty
refiner of alternative feedstocks and marketer of high-purity
petroleum products. Vertex is one of the largest processors of
used motor oil in the U.S., with operations located in Houston and
Port Arthur (TX), Marrero (LA) and Heartland (OH). Vertex also
co-owns a facility, Myrtle Grove, located on a 41-acre industrial
complex along the Gulf Coast in Belle Chasse, LA, with existing
hydro-processing and plant infrastructure assets, that include nine
million gallons of storage. The Company has built a reputation as
a key supplier of Group II+ and Group III Base Oils to the
lubricant manufacturing industry throughout North America.
Vertex Energy reported a net loss attributable to the company of
$12.04 million for the year ended Dec. 31, 2020, compared to a net
loss attributable to the company of $5.05 million for the year
ended Dec. 31, 2019. As of Dec. 31, 2020, the Company had $122.10
million in total assets, $60.81 million in total liabilities,
$55.37 million in total temporary equity, and $5.92 million in
total equity.
VICTORIA'S SECRET: S&P Rates New $500MM Sr. Unsecured Notes 'B+'
----------------------------------------------------------------
S&P Global Ratings assigned its 'B+' issue-level rating and '5'
recovery rating to U.S.-based specialty apparel retailer
Victoria’s Secret & Co.'s (VS) proposed $500 million senior
unsecured notes maturing in 2029. The '5' recovery rating indicates
its expectation for modest (10%-30%; rounded estimate: 20%)
recovery in the event of a payment default.
The company plans to use the proceeds from this issuance, along
with the proceeds from its previously announced $500 million
first-lien term loan B, to return capital to Bath and Body Works
following the completion of its spin-off as an independent
publicly-traded company.
S&P's 'BB-' issuer credit rating and stable outlook on VS are
unchanged and reflect its expectation that it will recover a
significant portion of the sales lost amid the coronavirus pandemic
in 2021 while maintaining margins above pre-pandemic levels, which
will reduce leverage to the high-1x area and enable it to generate
good free operating cash flow.
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- S&P's simulated default scenario contemplates a default
occurring due to a steep decline in the company's EBITDA stemming
from several factors, including a deterioration in its competitive
standing--because of ineffective merchandising and marketing
strategies--and intensified competition. S&P believes this could
occur amid a protracted decline in the economy and a weak consumer
spending environment.
-- S&P assumes that VS would reorganize as a going concern to
maximize its lenders' recovery prospects. S&P applies a 5x multiple
to its projected emergence-level EBITDA to arrive at its estimated
gross emergence value.
Simulated default assumptions
-- Simulated year of default: 2025
-- EBITDA at emergence: About $230 million
-- Implied enterprise value (EV) multiple: 5x
-- Estimated gross EV at emergence: About $1.2 billion
Simplified waterfall
-- Net EV after 5% administrative costs: About $1.1 billion
-- Revolver-related claims*: $470 million (not rated)
-- Senior secured term loan claims*: $500 million
--Recovery expectations: 90%-100% (rounded estimate: 95%)
-- Senior unsecured claims and non-debt unsecured claims*: $630
million
--Recovery expectations: 10%-30% (rounded estimate: 20%)
*All debt amounts include six months of prepetition interest.
WALHONDE TOOLS: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Walhonde Tools, Inc.
1255 Childress Rd.
South Charleston, WV 25309
Business Description: Walhonde Tools Inc. produces and markets
precision tube and pipe fitting tools for
the power, pulp & paper, petro-chemical,
food and drug processing, shipbuilding, and
repair industries worldwide.
Chapter 11 Petition Date: June 29, 2021
Court: United States Bankruptcy Court
Western District of West Virginia
Case No.: 21-20150
Judge: Hon. Mckay B. Mignault
Debtor's Counsel: Andrew S. Nason, Esq.
PEPPER AND NASON
8 Hale St.
Charleston, WV 25301
Tel: 304-346-0361
Fax: 304-346-1054
E-mail: tinas@peppernason.com
Total Assets: $866,207
Total Liabilities: $1,660,552
The petition was signed by Matthew McClure, president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/CJMXSFY/Walhonde_Tools_Inc__wvsbke-21-20150__0001.0.pdf?mcid=tGE4TAMA
WALKER RADIO: Wins Cash Collateral Access Thru Oct. 31
------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas,
Lubbock Division, has authorized Walker Radio Group LLC and David
Joel Walker to use cash collateral on an interim basis through
October 31, 2021.
The U.S. Small Business Administration and Trinity Compress Real
Estate Company assert interests, liens and security interests in
various assets of the Debtors' bankruptcy estates.
The parties agree and stipulate to continue operating under the
terms of the Second Agreed Order for Continued Use of Funds the
period from July 1, 2021, through the earlier to occur of October
31 or the date of confirmation of a Subchapter V Plan.
The Court says the terms with respect to the use of the funds as
being in compliance with the regulations governing loans derived
from the SBA EIDL program as set forth in the Second Agreed Order
Granting Debtors' Use of Funds will continue in force and effect as
will the obligations of the Debtors to properly account for the use
of such funds in their monthly operating reports. Furthermore, all
other provisions relating to the accounting and use of such funds
will continue to apply and be enforced.
A hearing on the Debtors' continued use of cash collateral is
scheduled for October 27 at 1:30 p.m.
A copy of the order and the Debtor's budget from June to October is
available at https://bit.ly/3jtgMbi from PacerMonitor.com.
The Debtor projects $69,656 in beginning cash balance and $16,969
in total monthly expenses for July 2021.
About Walker Radio Group LLC
Walker Radio Group, LLC filed a voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Case
No.20-50234) on Dec. 9, 2020, listing under $1 million in both
assets and liabilities.
Judge Robert L. Jones oversees the case.
The Debtor tapped Mullin Hoard & Brown, LLP as legal counsel and
Richard A. Newman at Howard, Cunningham, Houchin & Turner, LLP as
accountant.
The U.S. Small Business Administration, as lender, is represented
by Erin Nealy Cox, Esq.,U.S. States Attorney and Donna K. Webb,
Esq., Assistant U.S. Attorney.
Trinity Compress Real Estate Company, as lender, is represented by
Max R. Tarbox, Esq. at Tarbox Law, P.C.
WATERVILLE-MONCLOVA: Wins Interim Cash Collateral Access
--------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Ohio has
authorized Waterville-Monclova Properties, LLC to use cash
collateral on an interim basis in accordance with the budget, with
a 15% variance.
The parties with an interest in the cash collateral are First
Security Bank of Nevada and Buckeye State Bank.
The Debtor is authorized to use the cash collateral of First
Security to pay all ordinary and necessary expenses. As adequate
protection for the Debtor's use of cash collateral, First Security
is granted a postpetition perfected security interest to the same
extent and with the same priority as it held on a prepetition basis
in the Debtor's property. The Replacement Lien will be deemed to be
perfected immediately upon the entry of the Interim Order without
the need for filing any further documentation. In addition, First
Security is authorized, and the stay of 11 U.S.C. section 362 is
lifted so as to allow First Security, to file any documentation it
deems appropriate and necessary to perfect this interest.
The Court says Buckeye will not be entitled to any adequate
protection payments for the Debtor's use of cash collateral
concerning the Debtor's real property located at 1140 East Main
Street, Delta, Ohio. As and for the Debtor's use of cash collateral
related to its property at 1440 Waterville-Monclova Road,
Waterville, Ohio, Buckeye is entitled to adequate protection.
In addition to any security interests preserved by 11 U.S.C.
section 552(b), and to the extent the stay or the Debtor's use,
sale, or lease of Buckeye's collateral results in a decrease in the
value of its interest in its Collateral, Buckeye is granted a
post-petition perfected security interest under section 361(2) to
the same extent and with the same priority as it held on a
prepetition basis in the Debtor's property. The Replacement Lien
will be deemed to be perfected immediately upon the entry of the
Interim Order without the need for filing any further
documentation.
The Debtor is also directed to maintain insurance on all its
property and pay appropriate taxes and account for all cash use.
The Replacement Liens will have the same relative priority as the
Pre-petition Liens held by both banks in the Debtor's Property as
of the Petition Date.
A further hearing on the Debtor's use of cash collateral is
scheduled for August 18, 2021, at 9:30 a.m.
A copy of the order and the Debtor's budget for July and August is
available for free at https://bit.ly/3gWA2Mr PacerMonitor.com.
The Debtor projects monthly net income of:
July August
---------- ----------
Main St, Delta, OH $20,350.00 $20,350.00
Waterville $3,120.95 $3,120.95
About Waterville-Monclova Properties, LLC
Waterville-Monclova Properties, LLC is an active and operating Ohio
Limited Liability Company. It was formed in 2006. Its business
operations consist of holding and renting certain real property.
Waterville-Monclova Properties sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. N.D. Ohio Case No. 21-30508) on
March 26, 2021. In the petition signed by Peggy Toedter, managing
member, the Debtor disclosed up to $10 million in both assets and
liabilities.
Eric R. Neuman, Esq., at DILLER & RICE is the Debtor's counsel.
Patricia B. Fugee has been appointed as Subchapter V Trustee.
WEST C BUILDERS: Seeks Use of Cash Collateral Thru Oct 31
---------------------------------------------------------
West C Builders, Inc., asks the U.S. Bankruptcy Court for the
Northern District of California, Santa Rosa Division, for authority
to use cash collateral through October 31, 2021, and provide
additional adequate protection for such use, to the extent it
results in a diminution of pre-petition collateral.
The Debtor generates income through operating its construction
business. This income is arguable "cash collateral," as the term is
defined by Bankruptcy Code section 363(c). The secured creditors
that may assert a secured interest in the Debtor's cash are Cadence
Bank and the United States Small Business Administration. The
Debtor is indebted to Cadence and the SBA by virtue of loan
agreements, each secured by way of recorded UCC-1 Financing
Statements.
The Debtor requires use of the money on deposit in the bank
accounts that existed at the time the petition was filed which
collectively had a balance of $516,270. In addition, the Debtor
requires the use of the receivables and income generated from its
continuing operations.
The Debtor's payments to Cadence Bank were not in arrears at the
time of the bankruptcy filing. The Debtor offers as adequate
protection of the interests of Cadence and the SBA pending further
order:
a. To the extent of the present value of their interest in
cash collateral, a continuing first-in-priority lien on receivables
from the operation of the business of the Debtor;
b. The Debtor will make ongoing monthly payments to Cadence
Bank in the regular monthly amount of $3,911 by the 15th day of
each month;
c. The obligation owed to the SBA as of the petition date is
believed to be $150,000. Payments to the SBA have not yet begun.
The Debtor proposes to make payments in the amount of $500 to the
SBA by the 15th day of each month.
d. The Debtor also offers replacement liens in favor of
Cadence and the SBA. The replacement liens will secure any
postpetition diminution in the value of each secured creditor's
interest in the collateral, provided such lien will be subordinated
to the compensation and administrative expense reimbursements
allowed. The replacement lien will encumber only post-petition
property of the same type as such creditor's prepetition
collateral, the cash proceeds of which the Debtor is authorized to
use. To the extent multiple creditors assert an interest in the
same collateral, the Debtor requests that the replacement liens be
granted to each creditor in the same priority as the creditor's
liens attach to the cash collateral used.
Due to the time pressures associated with the filing, the Debtor
has been unable to negotiate stipulations for use of cash
collateral with the secured creditors.
The Debtor's counsel has been in communication with counsel for
Cadence and the Debtor hopes to negotiate stipulations for the
Court's consideration at the time of the final hearing of the
Motion.
A copy of the motion is available at https://bit.ly/2Sx8CDy from
PacerMonitor.com.
About West C Builders, Inc.
West C Builders, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 21-10263) on May
26, 2021. In the petition signed by Anton D. Council, president,
the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge Roger L. Efremsky oversees the case.
Gina R. Klump, Esq. at Law Office of Gina R. Klump is the Debtor's
counsel.
WEST COAST AGRICULTURAL: Seeks Cash Collateral Access
-----------------------------------------------------
West Coast Agricultural Construction Company asks the U.S.
Bankruptcy Court for the District of Oregon for authority to use
cash collateral of up to $40,434 a month on an interim basis and to
grant a replacement lien.
The Debtor needs to use account receivables and cash to continue
operation of their business. The Debtor has monthly cash needs of
$2,350 for the remainder of June and $38,034 for July. The bank
accounts and accounts receivable total approximately $158,275 as of
the bankruptcy filing date.
The secured creditors are Columbia Bank and the U.S. Small Business
Administration. The first lien of Columbia Bank has a current
balance of approximately $1,332.389. The second lien of the SBA has
a balance of approximately $149,910.
As for adequate protection pursuant to 11 U.S.C. sections 361, 363,
and 364, the Secured Creditors will be granted a security interest
and replacement lien, dollar for dollar, in all of the
Post-Petition accounts and accounts receivables to replace their
security interest and liens in collateral to the extent of
Pre-Petition cash collateral utilized by the Debtor during the
pendency of the bankruptcy proceeding. The Creditors also have a
security interest in inventory, equipment, furniture, supplies,
machinery and vehicles valued at $1,780,8996. Columbia Bank also
has a security interest in collateral owned by the Debtor's
shareholder.
A copy of the motion and the Debtor's budget for June 24 to
December 31, 2021, is available at https://bit.ly/3gVyVwH from
PacerMonitor.com.
The Debtor projects $363,838 in beginning bank balance and $404,894
in total operating costs.
About West Coast Agricultural Construction Company
West Coast Agricultural Construction Company sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ore. Case
No. 21-61099) on June 24, 2021. In the petition signed by Brandt N.
Hayden, president, the Debtor disclosed up tp $10 million in both
assets and liabilities.
Ted A. Troutman at Troutman Law Firm P.C. is the Debtor's counsel.
WEST COAST AGRICULTURAL: Taps Troutman Law Firm as Legal Counsel
----------------------------------------------------------------
West Coast Agricultural Construction Company seeks approval from
the U.S. Bankruptcy Court for the District of Oregon to hire
Troutman Law Firm, PC to serve as legal counsel in its Chapter 11
case.
The firm's hourly rates are as follows:
Attorney $495 per hour
Paralegal $220 per hour
The Debtor paid $25,000 to the law firm as a retainer fee.
Ted Troutman, Esq., the firm's attorney who will be handling the
case, disclosed in a court filing that he is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Ted A. Troutman, Esq.
Troutman Law Firm, PC
5075 SW Griffith Dr., Suite 220
Beaverton, OR 97005
Tel.: (503) 292-6788
Fax: (503) 596-2371
Email: tedtroutman@sbcglobal.net
About West Coast Agricultural Construction
Salem, Ore.-based West Coast Agricultural Construction Company
sought protection under Chapter 11 of the Bankruptcy Code (Bankr.
D. Ore. Case No. 21-61099) on June 24, 2021. At the time of the
filing, the Debtor had between $1 million and $10 million in both
assets and liabilities. Judge David W. Hercher oversees the case.
Troutman Law Firm, PC is the Debtor's legal counsel.
WHOA NETWORKS: Plan Exclusivity Period Extended Until July 26
-------------------------------------------------------------
At the behest of Whoa Networks, Inc. and its affiliates, Judge
Scott M. Grossman of the U.S. Bankruptcy Court for the Southern
District of Florida, Ft. Lauderdale Division extended the period in
which the Debtors may file a plan of reorganization from May 27,
2021, to and including July 26, 2021, and to solicit acceptances
from July 26, 2021, to and including September 24, 2021. This is
the Debtors' second extension of exclusivity periods.
The Debtors have behaved in a manner consistent with their
fiduciary obligations to their creditor constituencies, evidencing
proper motive when they requested the exclusivity periods
extension.
The Debtors have also engaged in ongoing and productive settlement
discussions with Radius Bank and Johnson Bank towards a consensual
restructuring of the debt owed to each Senior Secured Lender. In
connection, the Debtors have provided substantial documentation to
Radius Bank and responded to several inquiries of Radius Bank in
respect of the Debtors' assets and operations. The Debtors are
optimistic that they will be able to reach a consensual resolution
with Radius Bank and Johnson Bank in respect of the restructuring
of their debt under a plan of reorganization.
Additionally, the Debtors and their professionals are continuing to
analyze certain remaining equipment finance agreements, to
negotiate the terms of additional adequate protection packages for
such lenders, as well as their proposed treatment under a plan of
reorganization.
The Debtors have also addressed other matters related to the
Chapter 11 Cases and obtained first-day relief, filed the required
schedules of assets and liabilities, statements of financial
affairs, and amendments thereto, complied with the various United
States Trustee disclosures, and filed the monthly
Debtor-in-Possession reports. The Debtors have satisfied all of
their post-petition obligations on a current basis.
The Debtors are paying their post-petition obligations in a timely
fashion consistent with the Cash Collateral Orders. The Debtors
have been managing their business effectively and preserving the
value of their assets for the benefit of all creditors.
The extension of the Exclusive Periods will permit the Debtors to
focus their attention on developing a plan that is supported by the
Senior Secured Lenders, equipment finance companies, and other
constituencies. Also, the extension will not prejudice creditors in
any way because it will avoid the drain on estate assets attendant
to the potential proposal of a plan that does not have creditor
support.
With the Debtors continuing their business operations and the
opportunity to negotiate certain plan terms before the filing
deadline, all stakeholders will also benefit from the continued
stability and predictability.
A copy of the Debtors' Motion to extend is available at
https://bit.ly/3vIdN16 from PacerMonitor.com.
A copy of the Court's Extension Order is available at
https://bit.ly/35H2TxR from PacerMonitor.com.
About Whoa Networks
Whoa Networks is a secure cloud services provider (CSP). It
specializes in security, compliance, cloud, and enterprise
solutions for customers.
Whoa Networks and its affiliates filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla.
Lead Case No. 20-21883) on October 29, 2020. Mark Amarant,
authorized officer, signed the petitions.
At the time of filing, Whoa Networks, Inc., a Florida Corporation,
was estimated to have $1 million to $10 million in assets and $10
million to $50 million in liabilities.
Whoa Networks, Inc., a Delaware Corporation, disclosed $500,000 to
$1 million in assets and $1 million to $10 million in liabilities
while Hipskind Technology Solutions Group, Incorporated and
Platinum Systems Holdings, LLC disclosed $1 million to $10 million
in both assets and liabilities.
Judge Scott M. Grossman replaced Judge Peter D. Russin, who
previously oversees the Debtors' case. Genovese Joblove & Battista,
P.A., led by Paul J. Battista, Esq., is the Debtors' legal counsel.
WILDFIRE INC: Revised Deal Extends Cash Access Thru July 31
-----------------------------------------------------------
Judge Sandra R. Klein approved the third stipulation among Wildfire
Inc., JPMorgan Chase Bank, NA and the United States Small Business
Administration.
On February 23, 2021, the parties entered into a stipulation
governing the Debtor's authority to use the cash collateral through
May 23, 2021. On February 25, the Court entered the order
authorizing the Debtor to use cash collateral on a final basis.
On April 20 and subsequently on May 7, 2021, the parties further
amended the terms of the cash collateral order extending the
Debtor's authority to use the cash collateral.
Through the current third stipulation, the parties sought to amend
the final cash collateral order, extending the Second Amended Final
Cash Collateral Order from June 19 through July 31, 2021, or the
effective date of a plan of reorganization, whichever comes first.
A copy of the third stipulation is available for free at
https://bit.ly/3qwx30x from PacerMonitor.com.
A copy of the order is available for free at https://bit.ly/3h97v5o
from PacerMonitor.com.
Counsel for JPMorgan Chase Bank, NA:
Todd S. Garan, Esq.
Aldrige Pite, LLP
3600 American River Drive, Suite 105
Sacramento, CA 95864
Telephone: 877-319-8840
Email: tgaran@aldridgepite.com
About Wildfire Inc.
Wildfire Inc. -- https://wildfirelighting.com -- has focused on
creating innovative products designed to produce
audience-captivating black light visual effects.
Wildfire filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 21-10161) on Jan.
11, 2021. John Berardi, chief executive officer, signed the
petition. At the time of filing, the Debtor disclosed $1,166,843
in assets and $738,105 on liabilities.
Judge Sandra R. Klein presides over the case.
Portillo Ronk Legal Team serves as the Debtor's legal counsel.
Aldrige Pite, LLP represents JPMorgan Chase Bank, NA, secured
creditor.
WIRECO WORLDGROUP: S&P Alters Outlook to Stable, Affirms 'B-' ICR
-----------------------------------------------------------------
S&P Global Ratings affirmed its 'B-' issuer credit rating on
U.S.-based steel and synthetic rope manufacturer WireCo WorldGroup
Inc. and revised its outlook to stable from negative.
S&P said, "We also affirmed our 'B' issue-level rating on the
company's $436 million (outstanding) senior secured term loan and
our 'CCC+' issue-level rating on its $125 million second-lien
senior secured term loan. The recovery ratings remain '2' and '5',
respectively."
The stable outlook reflects that WireCo should sustain leverage
below 6x in 2021 and 2022 due to a strong post-pandemic recovery in
most of its end markets.
WireCo's operating performance is improving faster than
anticipated, boosted by a strong rebound in most of its end
markets. Order rates recovered strongly over the past several
months, driven by a robust post-pandemic demand recovery across
largely all of its end markets, except for oil and gas, which has
recovered from 2020 lows but will remain below pre-pandemic levels
over our forecast horizon. S&P expects WireCo's order rates in key
end markets, such as industrial, mining, and maritime, to
contribute to robust earnings in 2021 and 2022. WireCo is
well-positioned, with its synthetic rope and high-performance rope
brands, to serve industries that are experiencing positive growth
due to green energy investments globally, such as the growth in
offshore wind projects and improved demand from underground mining
driven by the surge in battery metals required to support electric
vehicle batteries. In addition, WireCo's global crane rope brands
should continue to experience meaningful order rate growth as build
rates in the original equipment manufacturer crane market are
surging in anticipation of increased infrastructure spending growth
over next 12-24 months. This is a favorable market for WireCo as it
also involves consistent replacement sales over the life of the
crane.
S&P said, "While credit metrics remain weak on a last 12 months
(LTM) basis, we expect leverage to recover to below 6x in 2021 and
2022. We forecast EBITDA recovering to $90 million-$110 million in
2021, compared with about $50 million in 2020 and $80 million in
2019. While we expect 2021 revenue to be below 2019 levels
partially due to lower oil and gas business, we expect EBITDA
generation to be higher due to structural cost improvements
realized in 2020 and the company's continued prioritization of high
margin product sales over high volume orders in the backdrop of
higher order rates. Robust market conditions and order levels
should support improved operating leverage from overall volume
growth. As a result, leverage should trend below 6x throughout the
remainder of the year compared with above 9x LTM as of March 31,
2021. We note that WireCo is experiencing rapidly increasing raw
materials prices. However, most of the company's contracts adjust
to reflect raw material spot prices or have surcharge mechanisms
built in to reflect raw material costs. Where there is price
exposure the company is managing risk with timely pricing increases
to reflect costs. As a result, we expect EBITDA margins should not
be materially affected by the rapid raw material price inflation
experienced so far this year."
The stable outlook reflects that WireCo should sustain leverage
below 6x in 2021 and 2022 due to a strong post-pandemic recovery
from most of its end market.
S&P could raise the rating if market demand, operational efficiency
efforts, and new commercial strategies resulted in a higher EBITDA
margin profile while overall volume capacity remained the same,
such that:
-- EBITDA generation and profitability improves faster than
anticipated so that leverage trends toward 5x;
-- Leverage comes down from elevated levels so that the company is
able to access capital markets to address its debt maturities in
2023 and 2024.
S&P could lower the rating within the next 12 months if the company
did not address its upcoming debt maturities by mid-2022 because
substantially all its capital structure becomes due between August
2023 and September 2024.
WOODBRIDGE HOSPITALITY: Taps 'Ordinary Course' Professionals
------------------------------------------------------------
Woodbridge Hospitality, L.L.C. seeks approval from the U.S.
Bankruptcy Court for the District of Arizona to employ
professionals utilized in the ordinary course of its business.
The "ordinary course" professionals include the Debtor's tax
counsel, DeConcini McDonald Yetwin and Lacy, P.C., and tax
accountant, R&A, CPAs. The Debtor requires these OCPs to:
(a) provide legal and accounting advice and services relating
to tax matters;
(b) prepare, review or audit financial statements to meet
regulatory requirements; and
(c) provide accounting services such as tax return
preparation, tax planning, and general advisement.
The Debtor will seek court approval in the event that any OCP's
fees and expenses exceed $5,000 for any given month.
As disclosed in court filings, the OCPs do not have an interest
materially adverse to the Debtor, the bankruptcy estate, creditors,
or other parties in interest.
About Woodbridge Hospitality
Scottsdale, Ariz.-based Woodbridge Hospitality, L.L.C. is a company
that operates in the hotel and motel industry. It conducts
business under the name Suites on Scottsdale.
Woodbridge Hospitality filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Case No.
21-04096) on May 26, 2021. Sukhbinder Khangura, the Debtor's
manager, signed the petition. At the time of filing, the Debtor
had between $10 million and $50 million in both assets and
liabilities.
Judge Paul Sala presides over the case.
Randy Nussbaum, Esq., at Sacks Tierney P.A., represents the Debtor
as legal counsel.
Canyon Community Bank, as lender, is represented by Michael
McGrath, Esq. at Mesch Clark Rothschild.
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re Supportive Health LLC
Bankr. D.N.J. Case No. 21-15113
Chapter 11 Petition filed June 22, 2021
See
https://www.pacermonitor.com/view/N75JH4Q/Supportive_Health_LLC__njbke-21-15113__0001.0.pdf?mcid=tGE4TAMA
represented by: Joseph Lento, Esq.
LENTO LAW GROUP, P.C.
E-mail: LentoGroupFile@gmail.com
In re Barbara Jo Stark
Bankr. D. Minn. Case No. 21-41138
Chapter 11 Petition filed June 23, 2021
In re Charles W Cain, Jr.
Bankr. D.N.J. Case No. 21-15149
Chapter 11 Petition filed June 23, 2021
represented by: Ellen M. McDowell, Esq.
In re Camarino Assocaiates Inc
Bankr. E.D.N.Y. Case No. 21-41638
Chapter 11 Petition filed June 23, 2021
See
https://www.pacermonitor.com/view/KRHJ3GA/Camarino_Assocaiates_Inc__nyebke-21-41638__0001.0.pdf?mcid=tGE4TAMA
represented by: Narissa A. Joseph, Esq.
LAW OFFICE OF NARISSA A. JOSEPH
E-mail: njosephlaw@aol.com
In re Saqib A. Siddiqui
Bankr. S.D. Fla. Case No. 21-16111
Chapter 11 Petition filed June 24, 2021
represented by: Nathan Mancuso, Esq.
In re Wilson Gomer MD Prof Medical Corporation
Bankr. C.D. Cal. Case No. 21-13502
Chapter 11 Petition filed June 25, 2021
See
https://www.pacermonitor.com/view/2CNAAFA/Wilson_Gomer_MD_Professional_Medical__cacbke-21-13502__0001.0.pdf?mcid=tGE4TAMA
represented by: Jason E. Turner, Esq.
J. TURNER LAW GROUP, APC
E-mail: jturner@jturnerlawgroup.com
In re Mabel Sridhar
Bankr. N.D. Cal. Case No. 21-50865
Chapter 11 Petition filed June 25, 2021
In re Greg D. Greer
Bankr. N.D. Fla. Case No. 21-40225
Chapter 11 Petition filed June 25, 2021
represented by: Byron Wright, Esq.
In re Bonnie Tile II, LLC
Bankr. S.D. Fla. Case No. 21-16210
Chapter 11 Petition filed June 25, 2021
See
https://www.pacermonitor.com/view/6N2PFEA/Bonnie_Tile_II_LLC__flsbke-21-16210__0001.0.pdf?mcid=tGE4TAMA
represented by: Craig I. Kelley, Esq.
KELLEY, FULTON & KAPLAN, P.L.
E-mail: craig@kelleylawoffice.com
In re Talk of the Town Banquet & Catering, Inc.
Bankr. S.D. Fla. Case No. 21-16200
Chapter 11 Petition filed June 25, 2021
See
https://www.pacermonitor.com/view/T5ELZYI/Talk_of_the_Town_Banquet__Catering__flsbke-21-16200__0001.0.pdf?mcid=tGE4TAMA
represented by: Brian K. McMahon, Esq.
BRIAN K. MCMAHON
E-mail: briankmcmahon@gmail.com
In re John F Salceda
Bankr. N.D. Ill. Case No. 21-07836
Chapter 11 Petition filed June 25, 2021
represented by: Penelope N. Bach, Esq.
In re Soaring Stars Therapy & Learning Center, Inc
Bankr. D. Md. Case No. 21-14195
Chapter 11 Petition filed June 25, 2021
See
https://www.pacermonitor.com/view/BPSFAPY/Soaring_Stars_Therapy__Learning__mdbke-21-14195__0001.0.pdf?mcid=tGE4TAMA
represented by: Tilman Dunbar, Jr., Esq.
LAW OFFICES OF TILMAN DUNBAR, JR.
Email: tdunbar@tdunbarlawoffices.com
In re All Weather Mechanical Services LLC
Bankr. W.D. Mo. Case No. 21-40808
Chapter 11 Petition filed June 25, 2021
See
https://www.pacermonitor.com/view/ZO2NFKY/All_Weather_Mechanical_Services__mowbke-21-40808__0001.0.pdf?mcid=tGE4TAMA
represented by: Ryan A. Blay, Esq.
VM LAW, PC
E-mail: bankruptcy@wagonergroup.com
In re E 4 Food and Entertainment, Inc.
Bankr. S.D. Fla. Case No. 21-16246
Chapter 11 Petition filed June 27, 2021
See
https://www.pacermonitor.com/view/27MOSBI/E_4_FOOD_AND_ENTERTAINMENT_INC__flsbke-21-16246__0001.0.pdf?mcid=tGE4TAMA
represented by: Adam D. Farber, Esq.
LAW OFFICES OF ADAM FARBER, P.A.
E-mail: afarber@adamfarberlaw.com
In re Charel Hebert Palmer and Jamaal Sharif Palmer
Bankr. N.D. Ga. Case No. 21-54862
Chapter 11 Petition filed June 28, 2021
represented by: Leslie M. Pineyro, Esq.
JONES AND WALDEN, LLC
In re Global Couriers Inc.
Bankr. W.D. Ky. Case No. 21-31391
Chapter 11 Petition filed June 28, 2021
See
https://www.pacermonitor.com/view/AHOENNY/Global_Couriers_Inc__kywbke-21-31391__0001.0.pdf?mcid=tGE4TAMA
represented by: David M. Cantor, Esq.
SEILLER WATERMAN LLC
E-mail: cantor@derbycitylaw.com
In re Linwood Jackson Jones and Dianne Regina Jones
Bankr. E.D.N.C. Case No. 21-01444
Chapter 11 Petition filed June 28, 2021
represented by: David Mills, Esq.
In re Ridgetop Ag LLC
Bankr. W.D. Wisc. Case No. 21-11388
Chapter 11 Petition filed June 28, 2021
See
https://www.pacermonitor.com/view/YCAC5PY/Ridgetop_Ag_LLC__wiwbke-21-11388__0001.0.pdf?mcid=tGE4TAMA
represented by: Carrie Werle, Esq.
KREKELER STROTHER, S.C.
E-mail: cwerle@ks-lawfirm.com
In re Gary John Neville
Bankr. C.D. Cal. Case No. 21-15313
Chapter 11 Petition filed June 29, 2021
represented by: Dennis McGoldrick, Esq.
In re TW Benjamin Corp.
Bankr. M.D. Fla. Case No. 21-03429
Chapter 11 Petition filed June 29, 2021
See
https://www.pacermonitor.com/view/W36CGUQ/TW_Benjamin_Corp__flmbke-21-03429__0001.0.pdf?mcid=tGE4TAMA
represented by: Benjamin G. Martin, Esq.
LAW OFFICES OF BENJAMIN MARTIN
In re Wagner Law Group, PLLC
Bankr. S.D. Fla. Case No. 21-16346
Chapter 11 Petition filed June 29, 2021
See
https://www.pacermonitor.com/view/PECRNOI/Wagner_Law_Group_PLLC__flsbke-21-16346__0001.0.pdf?mcid=tGE4TAMA
represented by: Ryan C. Wagner, Esq.
WAGNER LAW GROUP, PLLC
E-mail: ryan@wagnerlawgroup.us
In re AP Markets, Inc.
Bankr. N.D. Ill. Case No. 21-07969
Chapter 11 Petition filed June 29, 2021
See
https://www.pacermonitor.com/view/4M5NKZI/AP_Markets_Inc__ilnbke-21-07969__0001.0.pdf?mcid=tGE4TAMA
represented by: J. Kevin Benjamin, Esq.
BENJAMIN LEGAL SERVICES PLC
E-mail: attorneys@benjaminlaw.com
In re Keith M Austin and Jody J Austin
Bankr. M.D.N.C. Case No. 21-50424
Chapter 11 Petition filed June 29, 2021
represented by: Charles Ivey, Esq.
In re Patricia Diane Austin
Bankr. M.D.N.C. Case No. 21-50425
Chapter 11 Petition filed June 29, 2021
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine
Tumanda, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog,
Meriam Fernandez, Joel Anthony G. Lopez, Cecil R. Villacampa,
Sheryl Joy P. Olano, Psyche A. Castillon, Ivy B. Magdadaro, Carlo
Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors.
Copyright 2021. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers. Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.
The TCR subscription rate is $975 for 6 months delivered via
e-mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each. For subscription information, contact Peter A.
Chapman at 215-945-7000.
*** End of Transmission ***