/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/210804.mbx T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, August 4, 2021, Vol. 25, No. 215 Headlines 131 ASPEN: Voluntary Chapter 11 Case Summary 801 ASBURY: Wins Cash Collateral Access Thru Aug 21 ALCO CONSTRUCTION: Case Summary & 18 Unsecured Creditors AMBICA M&J: Patel Recovers Hotel for $8.3 Million ANGEL'S SQUARE: Lender Seeks to Prohibit Cash Collateral Use ANSON FINANCIAL: Seeks Approval to Hire Lee Law Firm as Co-Counsel ANSON FINANCIAL: Seeks to Hire Weycer Kaplan as Bankruptcy Counsel ATLANTIC WORLDWIDE: Case Summary & 20 Largest Unsecured Creditors AVADIM HEALTH: Court Approves $70 Mil. Ch.11 Debt Takeback Sale B. AVERY SALON: Seeks Cash Collateral Access BAPA BROOKLYN: Voluntary Chapter 11 Case Summary BASIC ENERGY: Derek Jeong Quits as Director BOY SCOUTS OF AMERICA: Says 10,000 More Victims Back Plan BOY SCOUTS OF AMERICA: Victims Want More Insurance Info From Chubb BRAZOS ELECTRIC: Texas PUC Cannot Quash Document Demands BRONX MIRACLE: Sale Was Valid; Ch. 11 Trustee Tells 2nd Circuit CCO HOLDINGS: S&P Assigns 'BB' Rating on New Unsecured Notes CITCO ENTERPRISES: Court OKs Cash Collateral Deal Thru Dec. 31 CNX MIDSTREAM: S&P Raises ICR to 'BB-', Outlook Stable COMMUNITY HEALTH: Posts $37 Million Net Income in Second Quarter CONSOLIDATED GLASS: Files fo Chapter 7; Truckers Owed Thousands COOKE AQUACULTURE: S&P Assigns Preliminary 'B' ICR, Outlook Stable COOKE OMEGA: S&P Retains 'B+' ICR on CreditWatch Negative CSI COMPRESSCO: Incurs $12.1 Million Net Loss in Second Quarter CYTODYN INC: Incurs $154.7 Million Net Loss in Fiscal 2021 DEALER ACCESSORIES: Wins Cash Collateral Access DELTA MATERIALS: Court Conditionally Approves Disclosure Statement DIEBOLD NIXDORF: Incurs $30.3 Million Net Loss in Second Quarter DURRANI M.D.: Sale of Doctor's Condo to Pay Off Claims EAGLE HOSPITAL TRUST: To Sell Crowne Plaza for $15.5 Million EISNER ADVISORY: S&P Assigned 'B-' ICR, Outlook Stable EKSO BIONICS: Incurs $1.3 Million Net Loss in Second Quarter ENERMEX INTERNATIONAL: Voluntary Chapter 11 Case Summary ENGINEERED MACHINERY: S&P Rates New First-Lien Term Loan 'B-' ENRON CAPITAL: Creditors Meeting Set for August 10 FOX PROPERTY: Taps James M. Kilkowski as Special Counsel FREDDIE MAC: Posts $3.7 Billion Net Income in Second Quarter FRESH ACQUISITIONS: No Add'l Bids Received, Seeks Sale to Lender FURNITURE FACTORY: Debtor Will Liquidate its Assets to Pay Claims G&G HOLDINGS: Case Summary & Unsecured Creditor GIRARDI & KEESE: Auctions Furniture and More Amid Bankruptcy GUARDION HEALTH: Appoints New Chief Accounting Officer HAWAIIAN HOLDINGS: Incurs $6.18 Million Net Loss in Second Quarter HILLMAN COMPANIES: Posts $3.4 Million Net Loss in Second Quarter IDEANOMICS INC: To Invest $25 Million in MDI Keepers Fund INFRASTRUCTURE AND ENERGY: S&P Upgrades ICR to 'B+' on Refinancing INTERNATIONAL LAND: Closes $2 Million Private Placement J.J.W. METAL: Court Approves Disclosure Statement JAKKS PACIFIC: Benefit Street, T. Gahan Report 14.4% Equity Stake JETBLUE AIRWAYS: S&P Alters Outlook to Positive, Affirms 'B+' ICR JOHNSON & JOHNSON: Agrees to Delay Bankruptcy on Talc Claims L'INC D'ALINE: Case Summary & 7 Unsecured Creditors LEVEL EIGHT: Seeks Cash Collateral Access LIMETREE BAY: Scheduled to Shut Down Its St. Croix Refinery LSB INDUSTRIES: Posts $23.7 Million Net Income in Second Quarter MALLINCKRODT: Faces Revolt from Investors on Opioid Crisis Handling MIDTOWN CAMPUS: Seeks Cash Collateral Access Thru Sept 15 MINORITY CONTRACTING: Case Summary & 15 Unsecured Creditors MONOGRAM FOOD: S&P Assigns 'B' Rating, Outlook Stable NASCAR HOLDINGS: S&P Alters Outlook to Positive, Affirms 'BB+' ICR NATIONAL FINANCIAL: Seeks to Use Cash Collateral NAVICURE INC: S&P Affirms 'B-' ICR on Patientco Acquisition NAVIOS MARITIME: Starts Talks With Bondholders to Address Debt NEUROPROTEXEON: Court Tosses Ashby & Geddes' Bankruptcy Fee Appeal NINE POINT ENERGY: Bankruptcy Sale Withstands $150 Mil. Appeal NINE POINT:Court Allows Sale After $150 Mil. Lien of Caliber Denied NORTHWEST TERRITORIAL MINT: Ex-CEO, President Convicted of Fraud NORWICH DIOCESE: Seeks Access to Cash to Pay for Health Insurance NORWICH DIOCESE: Stops Probe on Priest Abuses After Ch. 11 Filing OZOP ENERGY: Designates 4,570 Shares as Series D Preferred Stock PACIFIC ENVIRONMENTAL: Seeks to Use SBA's Cash Collateral PARAGON OFFSHORE: UST Can't Force Post-Confirmation Fees PETROTEQ ENERGY: Provides Update on Mgmt. CTO Application Status PIPELINE FOODS: Seeks to Hire SierraConstellation, Appoint CRO PIPELINE FOODS: Seeks to Hire Stretto as Administrative Agent PIPELINE FOODS: Taps Ocean Park Securities as Investment Banker PIPELINE FOODS: Taps Saul Ewing Arnstein & Lehr as Legal Counsel PRIME ECO: Files Emergency Bid to Use Cash Collateral PURDUE PHARMA: Bankruptcy Highlights Court Venue Selection Battle PURDUE PHARMA: Blasted by Conn. AG, Others at Congressional Hearing ROMANS HOUSE: DIP Loan, Cash Collateral Access OK'd RWB INTERNATIONAL: Voluntary Chapter 11 Case Summary SANAM ATHENS: Case Summary & 20 Largest Unsecured Creditors SEADRILL LIMITED: Unsecureds Will Recover 0.02% Under Plan SEANERGY MARITIME: Unveils New Time Charter, $31M Financing Deals SHOOTING SPORTS: Files for Chapter 11; To Close for Good SIRIUS XM: S&P Rates New $750MM Senior Unsecured Notes 'BB' SKS CONSTRUCTION: Seeks Cash Collateral Access Thru Oct 31 SM ENERGY: Incurs $223 Million Net Loss in Second Quarter SOUTHWESTERN ENERGY: S&P Rates New Senior Unsecured Notes 'BB-' SUMMIT FAMILY: Refuses to Sell Casa Bonita Despite Bankruptcy TASEKO MINES: To Release Second Quarter 2021 Results Today TRADEMARK DEVELOPERS: Voluntary Chapter 11 Case Summary U.S. SILICA: Posts $25.9 Million Net Income in Second Quarter URBAN ONE: Reappoints Geoffrey Armstrong as Director WC 717 N HARWOOD: Voluntary Chapter 11 Case Summary WILLCO X DEVELOPMENT: Payments to Unsecureds to Start in 2022 YOUNGBLOOD SKIN: Case Summary & 20 Largest Unsecured Creditors ZIM CORPORATION: Delays Filing of Form 10-K for Year Ended March 31 ********* 131 ASPEN: Voluntary Chapter 11 Case Summary -------------------------------------------- Debtor: 131 Aspen LLC 42 Burke Creek Circle Stateline, NV 89449 Business Description: 131 Aspen LLC is engaged in activities related to real estate. Chapter 11 Petition Date: August 3, 2021 Court: United States Bankruptcy Court District of Nevada Case No.: 21-50568 Judge: Hon. Natalie M. Cox Debtor's Counsel: Kerry P. Faughnan, Esq. PO Box 335361 North Las vegas, NV 89033 Tel: (702) 301-3096 E-mail: kerry.faughnan@gmail.com Total Assets: $1,426,070 Total Liabilities: $955,449 The petition was signed by Scott Moretti, trustee, 131 Aspen Trust, the Debtor's manager. The Debtor stated it has no unsecured creditors. A full-text copy of the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/54A3DLY/131_Aspen_LLC__nvbke-21-50568__0001.0.pdf?mcid=tGE4TAMA 801 ASBURY: Wins Cash Collateral Access Thru Aug 21 --------------------------------------------------- The U.S. Bankruptcy Court for the District of New Jersey has authorized 801 Asbury Avenue, LLC to continue using cash collateral pursuant to its budget nunc pro tunc to the Petition Date, with a 20% cushion allowed to the Debtor over and above the budgeted amount, through August 21, 2021. The Debtor is indebted to National Capital Management LP and Kutztown Mortgage Partners, LLC through a series of loans from the Lenders to the Debtor and 176 Route 50, LLC, a related debtor-in-possession. The Lenders' Indebtedness is secured by a blanket lien on all of the Debtor's assets. Specifically, the Lenders' Indebtedness is evidenced by three separate Open-Ended Mortgage and Security Agreements dated as of March 15, 2019, Assignment of Rents and UCC-1 financing statements filed against the Debtor. The Debtor is currently reviewing and investigating the Lenders' loan documents to determine whether the Indebtedness is properly perfected as the first, second and third position liens encumbering all of the Debtor's assets. The Debtor is permitted to use cash collateral to maintain and preserve its assets and continue operation of its business, including but not limited to payroll, liability insurance, utilities, building maintenance and repair, professional fees, United States Trustee Quarterly Fees commencing with the first quarter of 2021 and any required monthly adequate protection payments to Lenders. With respect to repairs and maintenance, the Debtor will have the authority to conduct emergency maintenance and repairs to 801 Asbury Avenue and/or 800, 8121, 816 and 829 Central Avenue and maintain the safety of persons entering the Property; however, the Debtor will be required to present NCM with documentation and repair costs immediately thereafter; the Debtor is authorized to make necessary maintenance and repairs costing less than $750 to the Property without prior written consent from NCM; repairs and maintenance costing more than $750 will require the Debtor to provide documentation to NCM and obtain prior written consent from NCM, which will not be unreasonably withheld or delayed; the Debtor will provide documentation of all repairs and maintenance costing less than $750 to NCM, together with the end of month cash collateral budget reconciliation; and to the extent that the Debtor or entities related to the Debtor propose to perform maintenance and repairs to the Property, such work will be subject to third party bids that may be timely solicited by NCM, with the most competitive bid selected by NCM; any work performed by the Debtor will be performed at cost. As adequate protection, the Lenders are granted replacement liens in their respective prepetition collateral to the same extent, validity and priority of their respective prepetition liens, for the diminution in value of such creditor's prepetition liens in cash collateral caused by the Debtors' use and expenditure of cash collateral without the necessity of filing any documents or otherwise complying with non-bankruptcy law in order to perfect security interests and record liens, with such perfection being binding upon all parties. To the extent the adequate protection proves insufficient to protect the Lenders' interest in and to the cash collateral, the Lenders will have a superpriority administrative expense claim. The Debtor is also required to make its monthly payments to the Lenders as adequate protection payments in the amount of $3,340 for the duration of the Order. A final hearing on the matter is scheduled for August 18 at 2 p.m. A copy of the order and the Debtor's 12-week budget is available for free at https://bit.ly/3idCkHD from PacerMonitor.com. The Debtor projects $55,500 in total income and $55,500 in total disbursements during the period. About 801 Asbury Avenue, LLC 801 Asbury Avenue, LLC is a New Jersey limited liability corporation which owns and operates commercial real property in Ocean City. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 21-14401) on May 26, 2021. In the petition signed by James McCallion, sole member, the Debtor disclosed up to $10 million in both assets and liabilities. Judge Andrew B. Altenburg, Jr. oversees the case. David B. Smith, Esq. at Smith Kane Holman, LLC is the Debtor's counsel. ALCO CONSTRUCTION: Case Summary & 18 Unsecured Creditors -------------------------------------------------------- Debtor: ALCO Construction Inc. 5331 Brewster St. San Antonio TX 78233 Chapter 11 Petition Date: August 1, 2021 Court: United States Bankruptcy Court Western District of Texas Case No.: 21-50953 Debtor's Counsel: Morris E. "Trey" White III, Esq. VILLA & WHITE LLP 1100 N.W. Loop 410 Ste. 802 San Antonio, TX 78213 Tel: (210) 225-4500 Email: treywhite@villawhite.com Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Terri K. Corbett as president. A full-text copy of the petition containing, among other items, a list of the Debtor's 18 unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/QHVX4GI/ALCO_Construction_Inc__txwbke-21-50953__0001.0.pdf?mcid=tGE4TAMA AMBICA M&J: Patel Recovers Hotel for $8.3 Million ------------------------------------------------- Robin K. Cooper of Albany Business Review (New York) reports that a federal bankruptcy court judge on Wednesday, July 28, 2021, approved the sale of the Comfort Inn & Suites and Golden Corral restaurant in Wilton for $8,275,000. Current owner Niral Patel and his New York holding company, VIA TAVDI LLC, submitted the only qualifying offer. A sale is expected to close by the end of August 2021. "I think it is a fair result. I am comfortable with it. And hopefully this will portend good things in the future," Judge Robert Littlefield Jr. said during a bankruptcy sale hearing Wednesday. The sale will allow Patel to use a new corporate entity to reclaim control of the 87-room hotel, real estate, furniture, franchise agreements and the closed restaurant from the bankruptcy estate. Patel and his family operated the business for two decades and filed for Chapter 11 bankruptcy protection in January to prevent a receiver from stepping in to run the business. Court-appointed trustee Christian Dribusch has been overseeing the hotel since February after the court converted the case to a Chapter 7 bankruptcy liquidation. A half-dozen investors expressed interest in purchasing the hotel, restaurant and the seven acres that sit off Old Gick Road in Wilton. The businesses are located less than a mile east of Exit 15 of the Interstate 87 Northway. If Patel is unable to close on the purchase, the bankruptcy estate's largest creditor, SDI Matto JV Holdco LLC of Florida, is the backup bidder. "It was a lot of effort by a lot of people," Dribusch said during Wednesday's sale hearing. The court is expected to extend Dribusch's oversight of the property until sometime in September. His oversight was to expire Aug. 6. "Like thousands of small business owners across the state, we were devastated by the pandemic," Patel said in a written statement. "We are grateful that the judge has granted us the ability to move forward with our plans to reopen our restaurant and bring the hotel to full capacity both of which will create job opportunities for over 75 people looking for full or part-time positions." The Golden Corral is one of seven owned by Patel. He was forced to close all of the buffet-style restaurants in March 2020 as Covid-19 cases began to spread across the country and governments began mandating shutdowns for various businesses. The pandemic also hurt hotel occupancy as fewer people traveled. Dirbusch told the court Wednesday that occupancy and rates have increased over the past few months, and the hotel is profitable. The Patel family ran into financial problems after defaulting on a loan several years ago. They worked out a repayment plan, but ran into more problems after business declined during the Covid-19 pandemic. Niral Patel recently outlined his strategy for reopening four of his Golden Corral locations over the next few months. About Ambica M&J Two Ambica M&J Two LLC is a Single Asset Real Estate debtor (as defined in 11 U.S.C. Section 101(51B)), which owns property that's occupied by the Comfort Inn & Suites Hotel and Golden Corral restaurant at 17 Old Gick Road, Saratoga Springs, New York. Maha Laxmi II Corp. is the entity that controls the 87-room Comfort Inn. Jagdamba II Corp. controls the Golden Corral. The three entities are owned by mother-and-son team Nirmala Patel and Niral Patel. To stop a receiver from taking control of the hotel and restaurant, Ambica M&J Two LLC, Jagdamba II Corp., and Maha Laxmi II Corp. sought Chapter 11 protection (Bankr. N.D.N.Y. Case No. 21-10014 to 21-10016) on Jan. 11, 2021. The petitions were signed by Niral Patel, secretary. Ambica M&J Two estimated assets and liabilities of $1 million to $10 million. Jagdamba II Corp. estimated assets of $500,000 to $1 million and liabilities of $10 million to $50 million. Maha Laxmi II Corp. estimated assets of $1 million to $10 million and liabilities of $10 million to $50 million. The Hon. Robert E. Littlefield Jr. is the case judge. NOLAN HELLER KAUFFMAN LLP, led by Justin A. Heller, is serving as the Debtors' counsel. ANGEL'S SQUARE: Lender Seeks to Prohibit Cash Collateral Use ------------------------------------------------------------ City National Bank of Florida, the secured creditor of Angel's Square, Inc., asks the U.S. Bankruptcy Court for the Southern District of Florida, Fort Lauderdale Division, to prohibit the Debtor from using cash collateral. The Lender asserts that the Debtor has failed to obtain its consent to use cash collateral and has not filed a motion seeking authorization from the Court to use cash collateral since filing a Chapter 11 petition on April 15, 2021. The Debtor has nonetheless been using CNB's cash collateral in violation of section 363(c) of the Bankruptcy Code. The Debtor should be immediately prohibited from using cash collateral. CNB says it risks direct, immediate and substantial harm from the Debtor's continued unauthorized use of cash collateral and diminution of CNB's security interest. Prior to the Petition Date, the Debtor and its affiliate, Las Americas Bakery of Coral Ridge, Inc., d/b/a Las Orquideas Restaurant, executed and delivered: (i) a Promissory Note, dated October 12, 2018, to the Lender in the original aggregate principal amount of $1,100,000; (ii) a Mortgage, Assignment of Rents and Security Agreement, dated October 12, 2018, by the Debtor in favor of Lender and recorded in the Public Records of Broward County, Florida on October 18, 2018, which Mortgage grants the Lender, a first lien on the Property and personal property, including among other things, all leases and rents, security deposits, accounts, account receivables, contract right and proceeds generated from all of the foregoing, including the Property. In addition, the Debtor executed an Absolute Assignment of Leases, Rents and Licenses dated October 12, 2018 in favor of the Lender, which was recorded in the Public Records of Broward County, Florida on November 8, 2018, granting the Lender an unconditional, absolute and present assignment of all of the Debtor's right, title and interest in and to the Leases and Rents. The Lender is holding certain sums in escrow in the approximate amount of $32,412.73 from the closing proceeds to which it asserts a security interest. The Lender perfected its liens on the Debtor's assets and cash collateral by and through the Mortgage, the Absolute Assignment and the filing of the Uniform Commercial Code in Florida under UCC Number 201806820771. As of the Petition Date, the approximate outstanding balance of the Note was $1,071,479. As of the Petition Date, the Debtor was indebted to the Lender pursuant to the Loan Documents in the aggregate original principal amount of $1,100,000, plus accrued, and unpaid interest thereon accruing before and after the Petition Date. The Debtor scheduled CNB as a creditor holding an undisputed secured claim in the aggregate amount of $980,000. As of the filing of the Motion, the Debtor has failed to file its monthly operating reports for the months of April, May and June as required under the U.S. Trustee Guidelines. As such, the Lender has not been able to track or review the use of CNB's Cash Collateral. A copy of the motion is available at https://bit.ly/3xa7V1m from PacerMonitor.com. About Angel's Square Fort Lauderdale, Fla.-based Angel's Square, Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 21-13576) on April 15, 2021. Fernando D. Gill, registered agent, signed the petition. The Debtor owns and operates a commercial strip mall located at 5630 N. Federal Highway, Ft. Lauderdale, FL 33308 with three (3) tenants: (i) Las Americas Bakery of Coral Ridge d/b/a Las Orquideas Restaurant; (ii) Ho Lam, Inc., d/b/a Kaizen Sushi Bar & Grill and (iii) Shipping Express, LLC d/b/a Multiservicios Las Orquideas. In its petition, the Debtor disclosed total assets of up to $10 million and total liabilities of up to $1 million. Judge Peter D. Russin oversees the case. Behar Gutt & Glazer, P.A. is the Debtor's legal counsel. City National Bank of Florida, as lender, is represented by: Paul J. Battista, Esq. Mariaelena Gayo-Guitian, Esq. Genovese Joblove and Battista, P.A. 100 Southeast Second Street, Suite 4400 Miami, FL 33131 Tel: (305) 349-2300 Fax: (305) 349-2310 ANSON FINANCIAL: Seeks Approval to Hire Lee Law Firm as Co-Counsel ------------------------------------------------------------------ Anson Financial, Inc. seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to hire Lee Law Firm PLLC to serve as co-counsel with Weycer, Kaplan, Pulaski & Zuber, P.C. The firm's services include: (a) advising the Debtor of its rights, powers, duties and obligations in the Chapter 11 case; (b) taking all necessary actions to protect and preserve the estates of the Debtor, including the prosecution of actions on the Debtor's behalf, the defense of actions commenced against the Debtor, the negotiation of disputes in which the Debtor is involved, and the preparation of objections with respect to claims that are filed against the estate; (c) assisting in the investigation of the acts, conducts, assets and liabilities of the Debtor, to the extent necessary, and any other matters relevant to the case; (d) investigating and potentially prosecuting preference, fraudulent transfer, and other causes of action arising under the Debtor's avoidance powers or which are property of the estate; (e) preparing legal papers; (f) negotiating, drafting and presenting a plan for the reorganization of the Debtor's financial affairs; and (g) performing all other necessary legal services. The firm's hourly rates are as follows: Chris Lee, Esq. $350 per hour Other Shareholders $350 per hour or less Associates $250 per hour or less Paralegals $175 per hour The Debtor paid $20,068 to the law firm as a retainer and $1,732 as the Chapter 11 filing fee. Chris Lee, Esq., a shareholder of Lee Law Firm, disclosed in a court filing that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Christopher M. Lee, Esq. Lee Law Firm PLLC 8701 Bedford Euless Rd, Ste 510 Hurst, TX 76053 Tel.: 469-646-8995 Fax: 469-694-1059 About Anson Financial Anson Financial, Inc. filed a Chapter 11 petition (Bankr. N.D. Texas Case No. 21-41517) on June 25, 2021. At the time of the filing, the Debtor had between $1 million and $10 million in both assets and liabilities. J. Michael Ferguson, president, signed the petition. Judge Edward L. Morris oversees the case. The Debtor tapped Weycer, Kaplan, Pulaski & Zuber, P.C. and Lee Law Firm, PLLC as legal counsel. ANSON FINANCIAL: Seeks to Hire Weycer Kaplan as Bankruptcy Counsel ------------------------------------------------------------------ Anson Financial, Inc. seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to hire Weycer, Kaplan, Pulaski & Zuber, P.C. to serve as co-counsel with Lee Law Firm, PLLC. The firm's services include: (a) advising the Debtor of its rights, powers, duties and obligations in the Chapter 11 case; (b) taking all necessary actions to protect and preserve the estates of the Debtor, including the prosecution of actions on the Debtor's behalf, the defense of actions commenced against the Debtor, the negotiation of disputes in which the Debtor is involved, and the preparation of objections with respect to claims that are filed against the estate; (c) assisting in the investigation of the acts, conducts, assets and liabilities of the Debtor, to the extent necessary, and any other matters relevant to the case; (d) investigating and potentially prosecuting preference, fraudulent transfer, and other causes of action arising under the Debtor's avoidance powers or which are property of the estate; (e) preparing legal papers; (f) negotiating, drafting and presenting a plan for the reorganization of the Debtor's financial affairs; and (g) performing all other necessary legal services. The firm's hourly rates are as follows: Jeff Carruth, Esq. $485 per hour Other Shareholders $485 per hour or less Associates $300 per hour or less Paralegals $150 per hour The Debtor paid $21,800 to the law firm as a retainer fee, inclusive of the filing fee. Jeff Carruth, Esq., a shareholder of Weycer, disclosed in a court filing that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Jeff Carruth, Esq. Weycer, Kaplan, Pulaski & Zuber, P.C. 3030 Matlock Rd., Suite 201 Arlington, TX 76015 Tel.: (713) 341-1158 Fax: (866) 666-5322 Email: jcarruth@wkpz.com About Anson Financial Anson Financial, Inc. filed a Chapter 11 petition (Bankr. N.D. Texas Case No. 21-41517) on June 25, 2021. At the time of the filing, the Debtor had between $1 million and $10 million in both assets and liabilities. J. Michael Ferguson, president, signed the petition. Judge Edward L. Morris oversees the case. The Debtor tapped Weycer, Kaplan, Pulaski & Zuber, P.C. and Lee Law Firm, PLLC as legal counsel. ATLANTIC WORLDWIDE: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Atlantic Worldwide Shipping, LLC 10333 Harwin Drive Suite 674 Houston, TX 77036 Chapter 11 Petition Date: August 3, 2021 Court: United States Bankruptcy Court Southern District of Texas Case No.: 21-32642 Judge: Hon. Eduardo V. Rodriguez Debtor's Counsel: Robert Chamless Lane, Esq. THE LANE LAW FIRM 6200 Savoy Dr Ste 1150 Houston, TX 77036-3369 Tel: (713) 595-8200 Fax: (713) 595-8201 E-mail: notifications@lanelaw.com Total Assets: $252,080 Total Liabilities: $4,701,322 The petition was signed by Madhavadas Nair, general manager. 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/ZTY6Y5Q/Atlantic_Worldwide_Shipping_LLC__txsbke-21-32642__0001.0.pdf?mcid=tGE4TAMA AVADIM HEALTH: Court Approves $70 Mil. Ch.11 Debt Takeback Sale --------------------------------------------------------------- Law360 reports that the health care product venture Avadim Health Inc. has obtained Delaware bankruptcy court approval to hand its business to secured creditors under a debt takeback, after no competitors emerged for a $70 million bidder-to-beat Chapter 11 stalking horse sale. Under the credit bid sale agreement approved by U.S. Bankruptcy Judge Craig T. Goldblatt late Sunday, August 1, 2021, Avadim will be taken on by Midava Holdings 3 Inc., a deal affiliate of noteholders represented by administrative agent Hayfin Services LLP. Avadim, which develops and produces nonprescription topical sprays and products for hygiene, immune health and other retail and institutional uses, sought protection in Delaware. About Avadim Health Avadim Health, Inc. is a Asheville, N.C.-based healthcare and wellness company that develops, manufactures and markets topical products for the institutional care and consumer markets. It was formerly known as Avadim Technologies Inc. Avadim and its affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 21-10883) on June 1, 2021. In the petition signed by CRO Keith Daniels, Avadim disclosed total assets of between $10 million and $50 million and total liabilities of between $100 million and $500 million. Judge Craig T. Goldblatt oversees the cases. The Debtors tapped Pachulski Stang Ziehl & Jones LLP and Chapman and Cutler LLP as legal counsel, SSG Capital Advisors LLC as investment banker, and Carl Marks Advisory Group LLC as restructuring advisor. Keith Daniels, a partner at Carl Marks, serves as the Debtors' chief restructuring officer. Omni Agent Solutions is the claims and noticing agent. The U.S. Trustee for Regions 3 and 9 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases on June 9, 2021. The committee tapped Fox Rothschild, LLP and Lowenstein Sandler, LLP as its legal counsel and Province, LLC as its financial advisor. B. AVERY SALON: Seeks Cash Collateral Access -------------------------------------------- B. Avery Salon & Barbershop LLC asks the U.S. Bankruptcy Court for the Western District of Texas, San Antonio Division, 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, to purchase supplies, to pay service providers, to pay administrative expenses incurred by the Debtor's Bankruptcy Estate, and to pay other ongoing usual and necessary expenses incurred in the day-to-day operation of the practice. The Debtor projects $45,076 in total office expenses. As of the Petition Date, the creditors holding security interests in the assets of the Debtor that constitute cash collateral, include: Square Capital, LLC, The LCF Group, and HFH Capital holding a secured filing in the approximate amount of $16,045. This amount is affected by bifurcation based on collateral value and priority of claims. Other unsecured debt with the addition of undersecured claim bifurcations is estimated to be approximately $92,816. On June 2018, the Debtor entered into a financing transaction with Square for a total sum of $10,000 pursuant to a loan Security Agreement and other loan documents. The Loan and Security Agreement granted 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. Square holds a first-priority security interest in the Collateral. Square is oversecured and has an estimated secured claim of $10,883.53. LCF is second in priority amongst the secured claims on the same collateral, entering into an agreement with the Debtor and perfecting on or about April 2021, and has a blanket lien claim of $15,804 that is undersecured by $10,591. HFH is third in priority amongst the secured claims on the same collateral, entering into an agreement with the Debtor and perfecting in June 2021, and is wholly undersecured for a total of $52,941. As adequate protection for the Debtor's use of cash collateral, the Secured Creditors will each be granted a replacement lien in all post-petition property of the Debtor, of the same nature, to the same extent, and with the same priority as the lien existing as of the Petition Date. In addition, the Debtor proposes to make monthly adequate protection payments in the amount of $1,000, with $800 of that payment distributed to Square and $200 distributed to LCF. In the event that either Square or LCF fail to consent to the entry of an Order authorizing the use of cash collateral, the Debtor submits that Square enjoys an equity cushion that constitutes "adequate protection" of their interest in the Collateral. The Debtor also submits that the interests of Square and LCF in the Collateral will be adequately protected by the granting of the Post-Petition Liens and the entry of an Order authorizing and directing the Debtor to make the Post-Petition Payments. A copy of the order and the Debtor's budget is available at https://bit.ly/3ylEwTe from PacerMonitor.com. About B. Avery Salon & Barbershop LLC B. Avery Salon & Barbershop LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 21-50924) on July 28, 2021. In the petition signed by Benjamin Avery Pineda, the Debtor disclosed up to $50,000 in assets and up to $500,000 in liabilities. Heidi McLeod, Esq., at Heidi McLeod Law Office, PLLC is the Debtor's counsel. BAPA BROOKLYN: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: BAPA Brooklyn 2004, LLC 111615 Forest Central Dr. Dallas, TX 75243 Chapter 11 Petition Date: August 3, 2021 Court: United States Bankruptcy Court Northern District of Texas Case No.: 21-31421 Debtor's Counsel: Brandon Tittle, Esq. GLAST PHILLIPS & MURRAY, P.C. 14801 Quorum Drive, Suite 500 Dallas, TX 75254 Tel: 817-372-3462 E-mail: btittle@gpm-law.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Jonathan Blount, managing member. The Debtor failed to include in the petition a list of its 20 largest unsecured creditors. A full-text copy of the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/HEPM36I/BAPA_Brooklyn_2004_LLC__txnbke-21-31421__0001.0.pdf?mcid=tGE4TAMA BASIC ENERGY: Derek Jeong Quits as Director ------------------------------------------- Derek Jeong, a director of Basic Energy Services, Inc., resigned from the company effective July 30, 2021. Mr. Jeong's resignation did not involve any disagreement between him and Basic Energy Services on any matter related to the company's operations, policies, practices or otherwise. About Basic Energy Headquartered in Fort Worth, Texas, Basic Energy Services -- www.basices.com -- provides wellsite services essential to maintaining production from the oil and gas wells within its operating areas. The Company's operations are managed regionally and are concentrated in major United States onshore oil-producing regions located in Texas, California, New Mexico, Oklahoma, Arkansas, Louisiana, Wyoming, North Dakota, Colorado and Montana. Its operations are focused in prolific basins that have historically exhibited strong drilling and production economics in recent years as well as natural gas-focused shale plays characterized by prolific reserves. Specifically, the Company has a significant presence in the Permian Basin, Bakken, Los Angeles and San Joaquin Basins, Eagle Ford, Haynesville and Powder River Basin. The Company provides its services to a diverse group of over 2,000 oil and gas companies. Basic Energy reported a net loss of $268.17 million for the year ended Dec. 31, 2020, compared to a net loss of $181.90 million for the year ended Dec. 31, 2019. As of March 31, 2021, the Company had $331.10 million in total assets, $548.95 million in total liabilities, $22 million in series A participating preferred stock, and a total stockholders' deficit of $239.85 million. Dallas, Texas-based KPMG, the Company's auditor since 1992, issued a "going concern" qualification in its report dated March 31, 2021, citing that the recent decline in the customers' demand for the Company's services has had a material adverse impact on the financial condition of the Company, resulting in recurring losses from operations, a net capital deficiency, and liquidity constraints that raise substantial doubt about its ability to continue as a going concern. BOY SCOUTS OF AMERICA: Says 10,000 More Victims Back Plan --------------------------------------------------------- Daniel Gill of Bloomberg Law reports that more than 70,000 alleged sexual abuse victims now support a proposed $850 million settlement with the Boy Scouts of America that paves the way toward the organization's emergence from bankruptcy. The number of supporters is up by more than 10,000 from when the Boy Scouts filed a motion earlier this month to approve the restructuring support agreement, BSA’s lawyer, Jessica Lauria of White & Case LLP, said at a hearing Thursday, July 29, 2021. There are about 82,500 sex abuse victims that filed claims in the bankruptcy case, Lauria told the U.S. Bankruptcy Court for the District of Delaware. About Boy Scouts of America The Boy Scouts of America -- https://www.scouting.org/ -- is a federally chartered non-profit corporation under title 36 of the United States Code. Founded in 1910 and chartered by an act of Congress in 1916, the BSA's mission is to train youth in responsible citizenship, character development, and self-reliance through participation in a wide range of outdoor activities, educational programs, and, at older age levels, career-oriented programs in partnership with community organizations. Its national headquarters is located in Irving, Texas. The Boy Scouts of America and affiliate Delaware BSA, LLC, sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-10343) on Feb. 18, 2020, to deal with sexual abuse claims. Boy Scouts of America was estimated to have $1 billion to $10 billion in assets and at least $500 million in liabilities as of the bankruptcy filing. The Debtors have tapped Sidley Austin LLP as their bankruptcy counsel, Morris, Nichols, Arsht & Tunnell LLP as Delaware counsel, and Alvarez & Marsal North America, LLC as financial advisor. Omni Agent Solutions is the claims agent. The U.S. Trustee for Region 3 appointed a tort claimants' committee and an unsecured creditors' committee on March 5, 2020. The tort claimants' committee is represented by Pachulski Stang Ziehl & Jones, LLP, while the unsecured creditors' committee is represented by Kramer Levin Naftalis & Frankel, LLP. BOY SCOUTS OF AMERICA: Victims Want More Insurance Info From Chubb ------------------------------------------------------------------ Alex Wolf of Bloomberg Law reports that the Boy Scouts of America's sexual abuse victims urged a judge to compel the bankrupt organization's insurer, Chubb Group Holdings Inc., to turn over documents spelling out its liability exposure and a subsidiary's financial condition. Chubb and its subsidiary Century Indemnity Co. "have stonewalled" the victims' requests for information, lawyers for three groups representing more than 80,000 claimants said in a July 30, 2021 letter. The companies should be ordered to reveal whether Century is a solvent entity and which of Chubb's units are liable for sexual abuse claims leveled against the Boy Scouts, according to the letter. About Boy Scouts of America The Boy Scouts of America -- https://www.scouting.org/ -- is a federally chartered non-profit corporation under title 36 of the United States Code. Founded in 1910 and chartered by an act of Congress in 1916, the BSA's mission is to train youth in responsible citizenship, character development, and self-reliance through participation in a wide range of outdoor activities, educational programs, and, at older age levels, career-oriented programs in partnership with community organizations. Its national headquarters is located in Irving, Texas. The Boy Scouts of America and affiliate Delaware BSA, LLC, sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-10343) on Feb. 18, 2020, to deal with sexual abuse claims. Boy Scouts of America was estimated to have $1 billion to $10 billion in assets and at least $500 million in liabilities as of the bankruptcy filing. The Debtors have tapped Sidley Austin LLP as their bankruptcy counsel, Morris, Nichols, Arsht & Tunnell LLP as Delaware counsel, and Alvarez & Marsal North America, LLC as financial advisor. Omni Agent Solutions is the claims agent. The U.S. Trustee for Region 3 appointed a tort claimants' committee and an unsecured creditors' committee on March 5, 2020. The tort claimants' committee is represented by Pachulski Stang Ziehl & Jones, LLP, while the unsecured creditors' committee is represented by Kramer Levin Naftalis & Frankel, LLP. BRAZOS ELECTRIC: Texas PUC Cannot Quash Document Demands -------------------------------------------------------- Law360 reports that a Texas bankruptcy judge denied on Monday, August 2, 2021, a state Public Utility Commission bid to quash document demands from unsecured creditors of bankrupt Brazos Electric Power Cooperative Inc. who are probing a storm-driven, $1.9 billion Chapter 11 claim filed by power grid operators. U.S. Bankruptcy Judge David R. Jones issued the ruling without prejudice after separately directing the Electric Reliability Council of Texas, or ERCOT, to assure that the committee gets access to telephone text messages and other communications by key grid operator figures during and after a catastrophic winter freeze in February 2021 that left millions of residents without power for days. 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. 21-30725) on March 1, 2021. At the time of the filing, the Debtor disclosed assets of between $1 billion and $10 billion and liabilities of the same range. Judge David R. Jones oversees the case. 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. Ted B. Lyon & Associates, The Gallagher Law Firm, West & Associates LLP, Butch Boyd Law Firm and Boyd Smith Law Firm, PLLC serve as special litigation counsel. 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. and Lazard Freres & Co. LLC serve as the committee's financial advisor and investment banker, respectively. BRONX MIRACLE: Sale Was Valid; Ch. 11 Trustee Tells 2nd Circuit --------------------------------------------------------------- Law360 reports that the trustee of a bankrupt Bronx-based church defended both her appointment and the sale of the church property before the Second Circuit on Friday, July 30, 2021, saying nothing she did violated the church's religious freedom. In her reply to the Bronx Miracle Gospel Tabernacle Word of Faith Ministries' appeal of the order selling their property, trustee Deborah Piazza said both her appointment and the sale fell within the law and the Constitution, and that the church made its objections too late. About Bronx Miracle Gospel Tabernacle Word of Faith Ministries, Inc. Bronx Miracle Gospel Tabernacle Inc. -- http://www.bronxmiracle.org/-- is a not-for-profit religious corporation in Bronx, New York. The Debtor previously sought bankruptcy protection (Bankr. S.D.N.Y. Case No. 17-11395) on May 22, 2017. The Debtor again sought bankruptcy protection (Bankr. S.D.N.Y. Case No. 19-12447) on July 28, 2019. In the petition signed by Rev. Dr. Keith Elijah Thompson, pastor, the Debtor estimated $1 million to $10 million in both assets and liabilities. Barak P. Cardenas, Esq. at CARDENAS ISLAM & ASSOCIATES, PLLC, serves as the Debtor's counsel. On Jan. 27, 2020, the Court confirmed the appointment of Deborah J. Piazza as the Chapter 11 Trustee. On April 2, 2020, the Court appointed Tamerlain Realty Corp. as the Trustee's real estate broker. CCO HOLDINGS: S&P Assigns 'BB' Rating on New Unsecured Notes ------------------------------------------------------------ S&P Global Ratings assigned its 'BB' issue-level and '5' recovery ratings to CCO Holdings LLC's proposed unsecured notes due 2034. The '5' recovery rating indicates its expectation of modest (10%-30%; rounded estimate: 15%) recovery in a simulated default scenario. The company plans to use the proceeds from these notes for general corporate purposes, including repaying debt and funding share buybacks. S&P said, "Our issuer credit rating on the company's parent, Charter Communications Inc., remains 'BB+' because we expect the company to continue to maintain a debt-to-EBITDA ratio at the higher end of its 4x-4.5x target range, comfortably below our 5x downgrade threshold. We believe Charter generates sufficient earnings and free operating cash flow (FOCF) to carefully manage this ratio, adjusting share purchases accordingly. Demand for Charter's residential high-speed internet service is increasing, and it derives most of its earnings and cash flow from this high-margin segment. Therefore, we expect EBITDA growth of 4%-6% over the next year as it expands its broadband subscriber base 4%-6%. Based on these assumptions, which include FOCF of $7 billion-$8 billion over the next year, we have about a $12 billion placeholder for share repurchases in our base-case forecast for 2021." CITCO ENTERPRISES: Court OKs Cash Collateral Deal Thru Dec. 31 -------------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California, Northern Division, has approved the Stipulation on the Adequacy Protection and Use of Cash Collateral entered into between Debtor Citco Enterprises, Inc. and the United States of America, on behalf of its agency, the U.S. Small Business Administration. The parties agree that the Debtor is permitted to use SBA's cash collateral through and including an entry of an Order Confirming the Debtor's Plan of Reorganization or December 31, 2021, whichever occurs earlier, and must comply with all terms stated in the Stipulation. About CITCO Enterprises, Inc. CITCO Enterprises, Inc., a company that sells Halloween costumes, filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Calif. Case No. 20-11039) on Aug. 25, 2020. Caesar Ho, chief executive officer, signed the petition. At the time of filing, the Debtor disclosed $343,141 in assets and $2,324,905 in liabilities. Judge Martin R. Barash oversees the case. The Law Offices of Michael Jay Berger serves as the Debtor's legal counsel. CNX MIDSTREAM: S&P Raises ICR to 'BB-', Outlook Stable ------------------------------------------------------ S&P Global Ratings raised its issuer credit rating on CNX Midstream Partners L.P. (CNXM) to 'BB-' from 'B+'. S&P said, "Our 'BB-' issue-level rating on the company's debt is unchanged. However, we are revising our recovery rating on CNXM's senior unsecured debt to '3' from '2' to indicate our expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in a payment default scenario. While our analysis indicates recovery of greater than 90% for CNXM's unsecured debt, we generally cap our recovery ratings on the debt of companies we rate in the 'BB' category at '3'. "The stable outlook on CNXM reflects our stable outlook on CNX. The stable outlook on CNX reflects our expectation that CNX will maintain solid financial measures, including FFO to debt of more than 35% and debt to EBITDA of about 2x, supported by its modest financial policies that balance debt repayment with shareholder returns. "We raised our rating CNXM to reflect our upgrade of CNX. On July 30, 2021, we raised our issuer credit rating on CNX to 'BB-' from 'B+'. We view CNXM as integral to CNX given the 2020 take-private transaction, the companies' shared management and operations team, and CNXM's position as the primary midstream operator servicing CNX's exploration and production (E&P) activities. At the same time, CNX is the sole parent and largest customer of CNXM and accounts for over 70% of its revenue. CNX's production and drilling activity is the biggest driver of CNXM's revenue, thus it relies on its parent for future growth opportunities. Given this core relationship, we raised our issuer credit rating on CNXM to 'BB-' to equalize it with our rating on its parent. "The stable outlook on CNXM reflects our stable outlook on its parent CNX. The stable outlook on CNX reflects our expectation that it will maintain modest financial policies that support improving financial measures, including average FFO to debt of more than 35%, over the next 12 months. This reflects the company's strongly hedged portfolio over the next 18 months that we expect it will continue to add to, which will support its cash flow beyond 2022. Finally, we expect CNX's shareholder returns to remain within its operating cash flows so as to not impede the expected improvement in its financial performance. "We anticipate CNXM will marginally increase its volumes and throughput in 2021 now that it has completed its broad infrastructure build-out. We continue to expect the partnership to sustain S&P Global Ratings-adjusted debt to EBITDA of 2.0x-2.3x through 2021. "We could lower our ratings on CNXM if we lower our rating on CNX. We could lower our issuer credit rating on CNX if we forecast its leverage will weaken over the next two years such that its projected FFO to debt approaches 20% and its debt to EBITDA remains well above 3x on a sustained basis. This would most likely occur if its gas price realizations deteriorate or its capital spending rises without a commensurate increase in its production. "We could raise our rating on CNXM if we raise our rating on CNX. We could raise our ratings on CNX if it is able to expand its scale to be more consistent with that of its larger exploration and production (E&P) peers or it materially improves its asset diversity such that it develops a cushion against potential in-basin pricing volatility and/or regulatory changes in the Appalachian region. Alternatively, we could raise our ratings if CNX improves its financial measures such that its FFO to debt averages well above 45%, which would provide it with a cushion against potential cash flow volatility." COMMUNITY HEALTH: Posts $37 Million Net Income in Second Quarter ---------------------------------------------------------------- Community Health Systems, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing net income of $37 million on $3 billion of net operating revenues for the three months ended June 30, 2021, compared to net income of $93 million on $2.52 billion of net operating revenues for the three months ended June 30, 2020. For the six months ended June 30, 2021, the Company reported net income of $2 million on $6.02 billion of net operating revenues compared to net income of $126 million on $5.54 billion of net operating revenues for the same period during the prior year. As of June 30, 2021, the Company had $15.53 billion in total assets, $16.65 billion in total liabilities, $498 million in redeemable noncontrolling interests in equity of consolidated subsidiaries, and a total stockholders' deficit of $1.62 billion. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1108109/000156459021039110/cyh-10q_20210630.htm About Community Health Systems Inc. Community Health Systems, Inc. -- http://www.chs.net-- is a publicly traded hospital company and an operator of general acute care hospitals in communities across the country. The Company, through its subsidiaries, owns, leases or operates 84 affiliated hospitals in 16 states with an aggregate of approximately 13,000 licensed beds. The Company's headquarters are located in Franklin, Tennessee, a suburb south of Nashville. As of March 31, 2021, the Company had $15.59 billion in total assets, $16.70 billion in total liabilities, $481 million in redeemable noncontrolling interests in equity of consolidated subsidiaries, and a total stockholders' deficit of $1.59 billion. * * * As reported by the TCR on Dec. 29, 2020, S&P Global Ratings raised its issuer credit rating on Community Health Systems Inc. to 'CCC+' from 'SD' (selective default) and raised its rating on thecompany's unsecured debt due 2028 to 'CCC-' from 'D'. S&P said the company's recent financial transactions have improved its maturity profile and lowered interest costs. In November 2020, Fitch Ratings affirmed the Long-Term Issuer Default Ratings (IDR) of Community Health Systems, Inc. (CHS) and subsidiary CHS/Community Health Systems, Inc. at 'CCC'. CONSOLIDATED GLASS: Files fo Chapter 7; Truckers Owed Thousands --------------------------------------------------------------- Clarissa Hawes of Freight Waves reports that several trucking and logistics companies are collectively owed hundreds of thousands of dollars after a 101-year-old specialty glass fabricator and its subsidiaries ceased operations and filed Chapter 7 bankruptcy on July 14, 2021. The managing entity, Consolidated Glass Holdings Inc., lists the assets for all of the companies as between $100,000 and $500,000 and its liabilities as between $50 million and $100 million. After administrative fees are paid, no funds will be available for unsecured creditors of CGH and its subsidiaries, Neil Minihane, chief restructuring officer for CGH, stated in bankruptcy filings. CGH and its affiliates were acquired by CGH CAM Holdings, which included members of CGH's senior management team, and investment firm Czech Asset Management LP and its affiliates, in June 2020. According to the bankruptcy filings for CGH and its subsidiaries, SJC Onshore Direct Lending Fund III-4, managed by Czech Asset Management, is listed as the only secured creditor and claims it is owed more than $85 million. J.E. Berkowitz In its petition, Pennsylvania-based J.E Berkowitz (JEB) has up to 999 creditors. The former family-owned company, which was founded in 1920, sold its shares to CGH, the investment arm of private equity firm Grey Mountain Partners, in 2016, prior to the 2020 acquisition by CGH senior management and Czech Asset Management. Among the glass fabricator's top 20 unsecured creditors are several trucking and logistics companies, including R & R Express Inc. of Cleveland, owed more than $62,000; Epes Logistics Services of Greensboro, North Carolina, owed nearly $25,000; and Xpedite Services of Sapulpa, Ohio, owed nearly $11,000. Other unsecured creditors include three leasing companies: Miller Truck Leasing of Lumberton, New Jersey, owed nearly $750,200; Penske Truck Leasing of Philadelphia, owed nearly $23,000; and Nets Trailer Leasing of NJ, headquartered in Burlington, New Jersey, owed about $9,500. Eight months after CGH changed ownership, the company announced it was furloughing approximately 200 employees at JEB, headquartered in Pedricktown, New Jersey, in February. In a statement, CGH officials stated that delays and disruptions to its workforce due to the COVID-19 global pandemic took a significant toll, forcing the company “to suspend manufacturing operations at JEB.” Columbia Commercial Building Products Also in February 2021, CGH announced it was "winding down operations" at its subsidiary, Columbia Commercial Building Products, in Rockwall, Texas. JEB and Columbia Commercial Building Products were part of CGH’s architectural division. Among its list of 83 unsecured creditors are Bedrock Logistics of Dallas, owed nearly $54,000; Wright Express Fleet Services of Carol Stream, Illinois, owed more than $16,000; and Estes Freight Lines of Richmond, Virginia, owed nearly $7,400. Shaw Glass Holdings In its Chapter 7 petition, Shaw Glass Holdings, doing business as Solar Seal Massachusetts, states that it has more than 850 unsecured creditors. Among the top 20 are several trucking and logistics firms, including Nationwide Logistics of Cincinnati, owed more than $13,150; Combined Transport of Central Point, Oregon, owed nearly $13,000; and Epes Logistics Service of Greensboro, owed nearly $5,800. The company also lists such large carriers as ABF Freight Systems of West Bridgewater, Massachusetts, FedEx Freight of Pittsburgh and UPS Supply Chain Solutions of Chicago among its unsecured creditors. However, the amounts were not included in its bankruptcy filings. Former employees file suit, alleging WARN Act violations In late March, former employees filed a proposed class-action lawsuit against JEB, Consolidated Glass Holdings and Czech Asset Management. The complaint states that the companies failed to provide workers at their Pedricktown glassmaking facility with its more than 100 full-time employees with at least 60 days’ notice of a pending closure as required proper by the federal Worker Adjustment and Retraining Notification (WARN) Act and New Jersey’s Millville Dallas Airmotive Plant Job Loss Notification Act. Former JEB employees stated they were at first furloughed in early February and permanently lost their jobs a little over a month later. A creditors’ meeting for CGH and its subsidiaries is scheduled for Thursday, July 29, 2021, in Wilmington, Delaware. About Consolidated Glass Holdings Consolidated Glass Holdings Inc. (CGH) fabricates and distributes impact-resistant glass. The Company also offers architectural glass, metals, and specialty products. CGH provides its products for commercial and residential building maintenance, renovation, and construction markets. Consolidated Glass Holdings sought Chapter 7 protection (Bankr. D. Del. Case No. 21-11026) on July 14, 2021. In the petition signed, Consolidated Glass Holdings estimated assets between $100,000 and $500,000 and estimated liabilities between $50 million and $100 million. Derek C. Abbott of Morris, Nichols, Arsht & Tunnell is the Debtor's counsel. COOKE AQUACULTURE: S&P Assigns Preliminary 'B' ICR, Outlook Stable ------------------------------------------------------------------ On Aug. 2, 2021, S&P Global Ratings assigned its preliminary 'B' issuer credit rating to Black Harbor, N.B.-based integrated aquaculture operator and nutritional products company Cooke Aquaculture Inc. (CAI). At the same time, S&P Global Ratings assigned its preliminary 'B+' issue-level rating, and '2' recovery rating, to subsidiary Cooke Omega Investments Inc.'s proposed US$480 million secured term loan B, and its preliminary 'CCC+' rating, and '6' recovery rating to Cooke Omega's proposed US$580 million senior unsecured notes. S&P said, "The company will sustain a highly leveraged balance sheet even as operating performance rebounds in 2021. Pro forma the transaction, we expect CAI to exit the transaction with about 6.6x leverage based on LTM (June 30 2021) EBITDA on an S&P Global Ratings' adjusted basis. The company derives almost 50% of its revenues from the food service segment, which was severely pressured in 2020 and early 2021 because of pandemic-induced shutdowns, resulting in low double-digit percentage declines in revenues and EBITDA in 2020. In addition, the company's operating performance was negatively affected due to incremental pandemic-related costs that elevated its operating cost profile. As vaccination rates improve, economies re-open, and consumer mobility increases, we expect demand from the food service industry to improve significantly in second-half 2021, leading to a rebound in the company's operating performance. Furthermore, the farmed salmon volumes coming into North America from Chile are severely constrained due to disruptions in Chilean production. These factors should contribute to volume growth for the company's key Atlantic salmon products and drive overall revenue growth in the low-to-mid double-digit percentage area for 2021. Revenue growth and product cost savings should spur CAI's EBITDA growth and margin recovery of about 100 basis points to 21.0%-21.5%, which we view as above average when compared to protein producers within the agri-business sector. As a result, we expect year-end 2021 debt to EBITDA (on an S&P Global Ratings' adjusted basis) will improve to the 5.0x-5.5x range, which we consider highly leveraged. We also expect free cash flow to debt (on an S&P Global Ratings' adjusted basis) will remain weak in the low-single-digit percentage area as the company's capital expenditure (capex) normalizes and it resumes its growth investments. "Volatility in market prices for farmed salmon; weather- and disease-related risks to biomass; and operation in highly competitive markets are key credit risks. CAI operates within a highly fragmented and competitive aquaculture industry. We note that Norway is the largest producer of farmed Atlantic salmon globally, accounting for over 50% of overall farmed salmon in 2020; therefore, it has a strong influence on market pricing. As a result, CAI's revenues and EBITDA are highly dependent on global salmon pricing over which it has limited control, partially offset by the company's value-added products offering. Furthermore, production and sales volumes, salmon quality, and biomass inventory and production yields are important factors that affect pricing and subsequently the company's operating performance. We note that volatile market prices, weather-related negative effects on biomass, and the overall health of the biomass could expose the company's profitability to a greater degree of volatility. We understand that CAI has the ability to adjust its harvest volumes (biomass sales) in response to market demand and supply in a particular period. Therefore, in a situation of market oversupply and when prices are low, the company can limit exposure to lower prices by keeping its fish in the water for an extended period. However, in such situations, we also acknowledge that the incremental costs to maintain fish beyond its optimal harvesting period could pressure CAI's EBITDA. "CAI's leading market position in North America, operations in a highly regulated industry, adequate geographic diversity, and above-average EBITDA margins are key credit strengths.An expanding middle class in emerging markets, consumer focus on healthy diets, and consumers' positive view of the health benefits of seafood compared with other meat products are favorable industry macro trends that should benefit CAI. We positively view the company's market position as the sixth-largest farmed salmon producer globally and the largest producer in North America. We view CAI's operational proximity to the large U.S. market as a credit strength because it reduces transportation costs and allows the company to charge premium pricing based on the freshness of products when compared with Norwegian and Chilean competitors. We believe the company's vertically integrated business model (hatcheries to feed and processing, marketing, sales, and distribution) allows it to control costs, drive operating efficiencies, and produce higher profitability than other pure-play peers. We also view positively the company's geographic diversity of business operations (50% of the revenues are generated in the U.S. and the remainder in Spain, Chile, and Scotland) and limited customer concentration. "Our ratings analysis incorporates the relationship between parent CAI and Cooke Omega, and ultimate parent Cooke Inc.We believe that company's relationship with Cooke Omega, its 100% owned subsidiary, is important to CAI. Cooke Omega is the largest U.S. producer of fish meal and fish oil and contributes to about 30% of consolidated CAI EBITDA. We note that fish meal costs comprise about 40% of CAI's total costs. Therefore, we think Cooke Omega acts as a natural hedge against volatile price movements of fish meal and fish oil and contributes to the stability of CAI's consolidated profitability. Furthermore, CAI acts as a guarantor of the proposed debt to be issued at Cooke Omega and therefore we believe that the subsidiary is highly unlikely to be sold and is an integral part of consolidated CAI. As a result, based on our group rating methodology, we assess Cooke Omega as being "core" to CAI. "Furthermore, we also incorporate the credit profile of the ultimate parent Cooke Inc. within our ratings analysis on CAI. CAI contributes to about 80% of consolidated Cooke Inc.'s revenues. The other 20% is contributed by Icicle Seafoods, Seajoy Seafoods, and Cooke Seafoods USA. Therefore, we believe CAI is an integral part of the Cooke Group and, as a result, assess CAI's status within the group as "core". "We expect the company will generate positive free cash flows and maintain financial flexibility.A vertically integrated business such as CAI is significantly capital intensive. As a result, we view the lower capital expenditures (capex) in 2021 and robust positive free operating cash flows (C$135 million-C140 million) as temporary and expect the company to resume its run-rate capital spending in 2022 (C$160 million-C$165 million) to enhance scale and products offering. Despite higher capex in 2022, we expect CAI to generate positive free cash flows in the range of C$40 million-C$50 million in 2022. We also believe that with consolidated cash of about C$50 million pro forma the transaction and expectation of full availability under the proposed C$500 million revolver, CAI should have sufficient financial flexibility over the near term. "Our stable outlook on CAI reflects our view that recovery in the food service sector, largely in the second half of 2021, combined with continued demand in the retail sector, should lead to a meaningful improvement in CAI's operating performance compared with 2020. Consequently, we forecast that the company should be able to appropriately invest in expanding its business while improving its adjusted debt-to-EBITDA ratio to 5.0-5.5x by fiscal 2021 (ending Dec. 31, 2021 ). "We could lower the ratings if CAI faces operational underperformance such that debt to EBITDA increased to 7x. This situation could occur if revenues are pressured as result of demand/supply factors leading to weaker market prices for the company's key products. The company's EBITDA could also be pressured due to unexpected higher costs from a combination of factors such as loss or poor quality of biomass and higher labor costs. "We could raise the ratings on CAI if the company demonstrates a sustained improvement in operating performance and management commits to maintain leverage in the low 4x area, and if the company sustains free cash flow to debt above 5%." COOKE OMEGA: S&P Retains 'B+' ICR on CreditWatch Negative --------------------------------------------------------- S&P Global Ratings retained its ratings, including its 'B+' issuer credit rating, on Cooke Omega Investments Inc. on CreditWatch, where S&P placed them with negative implications Dec. 15, 2020. S&P Global Ratings has kept its ratings on Cooke Omega on CreditWatch pending the completion of the refinancing transaction that parent Cooke Aquaculture Inc. (CAI), which holds 100% of Cooke Omega, has proposed. S&P expects the transaction to close sometime soon. S&P said, "We expect to resolve the CreditWatch placement on the successful close of the proposed transaction. At that time, we will likely equalize our issuer credit rating on Cooke Omega with that on CAI. and withdraw our 'B+' issue-level and '3' recovery ratings on Cooke Omega's US$330 million senior notes, which we expect to be refinanced." CSI COMPRESSCO: Incurs $12.1 Million Net Loss in Second Quarter --------------------------------------------------------------- CSI Compressco LP filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $12.09 million on $69.76 million of total revenues for the three months ended June 30, 2021, compared to a net loss of $24.58 million on $72.77 million of total revenues for the three months ended June 30, 2020. For the six months ended June 30, 2021, the Company reported a net loss of $26.55 million on $135.47 million of total revenues compared to a net loss of $38.21 million on $158.21 million of total revenues for the same period during the prior year. As of June 30, 2021, the Company had $685 million in total assets, $60.53 million in total current liabilities, $676.39 million in total other liabilities, and a total partners' deficit of $51.91 million. "In the second quarter of 2021, we saw business activity starting to increase which is reflected in our results. Revenues, Adjusted EBITDA and fleet utilization all improved sequentially compared to the first quarter of 2021. We continue to see this trend improve in actual signed contracts for additional compression as well as additional forward looking quotes and activity. While we cannot predict with certainty the rest of the year's performance, the trends continue to give us optimism that 2021 will improve as the year progresses. Our customers appear more confident in their projected activity for the rest of the year and are starting to execute around those plans. We have received a number of signed orders in the second quarter both in idle equipment going back to work and some orders for new large horsepower units. These contracted units will begin deploying in the third quarter and continue through the first quarter of 2022. The overall impact of this customer activity, if it continues, is that in the second half of 2021 both the contract compression business and the aftermarket services business should continue to see improving utilization and margins," commented John Jackson, chief executive officer of CSI Compressco. "We remain excited about the future of the Partnership and the industry overall. While the improving market trends exist, we recognize that risk around results may persist during 2021, but we are optimistic about both the near-term activity levels and long-term future of the compression industry. Capital efficiency, cost management and customer service are areas we continue to aggressively pursue as these are areas we can control. We expect to deliver the highest levels of service and performance to our customers as we have the people and assets in place that allow us to execute efficiently in any environment. We believe the natural gas business has a bright future and is a critical component of the energy infrastructure both today and in the transition in the energy markets in the years ahead." Cash used in operating activities was $(9.7) million in the second quarter, compared to cash provided by operating activities of $9.6 million in the first quarter. Distributable cash flow in the second quarter was $6.5 million, resulting in a distribution coverage ratio of 13.3x. The Company expects capital expenditures for 2021 to be between $45.0 million and $50.0 million. The forecast includes between $21.0 million and $23.0 million for capital growth. Maintenance capital expenditures are expected to be between $20.0 million and $22.0 million. Investments in the Helix digitally enhanced compression system and other technologies are expected to be between $4.0 million and $5.0 million. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1449488/000144948821000036/tti-20210630.htm About Compressco CSI Compressco is a provider of compression services and equipment for natural gas and oil production, gathering, artificial lift, transmission, processing, and storage. CSI Compressco's compression and related services business includes a fleet of approximately 4,900 compressor packages providing approximately 1.2 million in aggregate horsepower, utilizing a full spectrum of low-, medium- and high-horsepower engines. CSI Compressco also provides well monitoring and automated sand separation services in conjunction with compression and related services in Mexico. CSI Compressco's aftermarket business provides compressor package reconfiguration and maintenance services. CSI Compressco's customers comprise a broad base of natural gas and oil exploration and production, midstream, transmission, and storage companies operating throughout many of the onshore producing regions of the United States, as well as in a number of foreign countries, including Mexico, Canada and Argentina. CSI Compressco is managed by Spartan Energy Partners. * * * As reported by the TCR on Feb. 25, 2021, Moody's Investors Service has completed a periodic review of the ratings of CSI Compressco LP and other ratings that are associated with the same analytical unit. Moody's said CSI Compressco's Caa1 corporate family rating reflects its modest scale relative to its peers and high but improving debt leverage. CYTODYN INC: Incurs $154.7 Million Net Loss in Fiscal 2021 ---------------------------------------------------------- Cytodyn Inc. filed with the Securities and Exchange Commission its Annual Report on Form 10-K disclosing a net loss of $154.67 million for the year ended May 31, 2021, compared to a net loss of $124.40 million for the year ended May 31, 2020. As of May 31, 2021, the Company had $132.08 million in total assets, $153.10 million in total liabilities, and a total stockholder's deficit of $21.02 million. Birmingham, Alabama-based Warren Averett, LLC, the Company's auditor since 2007, issued a "going concern" qualification in its report dated July 30, 2021, citing that the Company incurred a net loss of approximately $154,674,000 for the year ended May 31, 2021 and has an accumulated deficit of approximately $511,294,000 through May 31, 2021, which raises substantial doubt about its ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1175680/000155837021009730/cydy-20210531x10k.htm About CytoDyn Inc. Headquartered in Vancouver, Washington, CytoDyn Inc. -- http://www.cytodyn.com-- is a late-stage biotechnology company focused on the clinical development and potential commercialization of leronlimab (PRO 140), a CCR5 antagonist to treat HIV infection, with the potential for multiple therapeutic indications. DEALER ACCESSORIES: Wins Cash Collateral Access ----------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Indiana, Indianapolis Division, has authorized Dealer Accessories, LLC to use cash collateral on a final basis in the ordinary course of business. The Debtor requires the use of cash collateral in order to continue operating its business and attempt a successful reorganization pursuant to the provisions of Chapter 11 of the Bankruptcy Code. The Debtor represented that several creditors may claim a properly perfected lien against the Debtor's assets, including cash collateral, in the Debtor's cash collateral, to secure claims estimated to exceed the value of cash collateral. The Debtor is permitted to use cash collateral in accordance with the budget, with a 10% variance. As adequate protection for the Debtor's use of cash collateral, Smarter Merchant and Bluepoint Funding will be granted replacement liens in the Cash Collateral and in the post-petition property of the Debtor of the same nature and to the same extent and in the same priority held in the Cash Collateral on the Petition Date. The Adequate Protection Liens will be valid and fully perfected without any further action by any party and without the execution or the recordation of any control agreements, financing statements, security agreements, or other documents. The Adequate Protection Liens will secure obligations to the Smarter Merchant and Bluepoint Funding to the extent that the Debtor's use of the Cash Collateral diminishes the amount of the Collateral held as of the Petition Date. Adequate protection for any other secured party will be addressed when any such secured creditor so requests. These events constitute an "Event of Default:" a. A trustee or examiner is appointed in this Chapter 11 case; b. The Debtor's Chapter 11 case is converted to a Chapter 7 case or dismissed; c. The Debtor fails to comply with any term of the Order, including but not limited to its payment obligations and compliance with the Budget; d. The Debtor makes any payment not set forth in the Budget; e. The Debtor fails to comply with any of the adequate protection or reporting obligations. A copy of the order is available at https://bit.ly/3zTXqRn from PacerMonitor.com. About Dealer Accessories, LLC Dealer Accessories, LLC, d/b/a ClearBra Indy, offers paint protection film designs, professional installations, and customer service. The company sought Chapter 11 protection (Bankr. S.D. Ind. Case No. 21-03197) on July 12, 2021. On the Petition Date, the Debtor estimated $100,000 to $500,000 in assets and $1,000,000 to $10,000,000 in liabilities. The petition was signed by Kyle Owen, president. Judge James M. Carr presides over the case. KC Cohen, Lawyer, PC is the Debtor's counsel. DELTA MATERIALS: Court Conditionally Approves Disclosure Statement ------------------------------------------------------------------ Judge Erik P. Kimball has entered an order conditionally approving the Disclosure Statement with respect to the First Amended Joint Chapter 11 Plan of Reorganization of Delta Materials, LLC, et al. The hearing on final approval of the Disclosure Statement and confirmation of the Plan will be on Sept. 15, 2021, at 2:00 p.m. The hearing will be held at the United States Bankruptcy Court, The Flagler Waterview Building, 1515 North Flagler Drive, 8th Floor, Courtroom B, West Palm Beach, Florida 33401. The last day for filing and serving objections to confirmation of the Plan will be on Sept. 8, 2021. The last day for filing written acceptances or rejections of the Plan will be on Sept. 8, 2021. The last day for filing and serving objections to claims will be on Sept. 1, 2021. The last day for filing ballots accepting or rejecting the Plan will be on Sept. 8, 2021. About Delta Materials Delta Materials, LLC and Delta Aggregate, LLC, are in the business of aggregate mining, in which material such as crushed stone, gravel, sand and clay is sold for use in construction. Delta Aggregate owns the quarry a street address of 9025 and 9775 Church Road, Felda, Hendry County, Florida. Delta Materials is the lessee or owner of various pieces of mining equipment. Delta Materials and Delta Aggregate filed voluntary petitions seeking relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Lead Case No. 19-13191) on March 12, 2019. Delta Aggregate owns a property located at 9025 Church Road, Felda, Fla., having an appraised value of $22 million. At the time of filing, Delta Materials' assets totaled $22,006,491 and liabilities totaled $10,377,363. Delta Aggregate had total assets of $22,006,491 and total liabilities of $10,377,363. Judge Erik P. Kimball oversees the cases. The Debtors' counsel is Bradley S. Shraiberg, Esq., at Shraiberg Landau & Page, PA, in Boca Raton, Fla. DIEBOLD NIXDORF: Incurs $30.3 Million Net Loss in Second Quarter ---------------------------------------------------------------- Diebold Nixdorf, Incorporated filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $30.30 million on $943.5 million of net sales for the three months ended June 30, 2021, compared to a net loss of $23.1 million on $890.5 million of net sales for the three months ended June 30, 2020. For the six months ended June 30, 2021, the Company reported a net loss of $38.4 million on $1.89 billion of net sales compared to a net loss of $116.5 million on $1.80 billion of net sales for the same period during the prior year. As of June 30, 2021, the Company had $3.54 billion in total assets, $1.59 billion in total current liabilities, $2.32 billion in long-term debt, $218.6 million in pensions, postretirement and other benefits, $103.4 million in deferred income taxes, $145.6 million in other liabilities, and a total deficit of $842.6 million. Gerrard Schmid, Diebold Nixdorf president and chief executive officer, said: "Product demand accelerated during the quarter, fueled by market share gains for next-generation DN Series EASY self-checkout solutions and DN Series ATMs. By delivering our strongest quarterly order book in four years, we are clearly leveraging our differentiated banking and retail solutions. Additionally, we are experiencing strong uptake for our AllConnect Data Engine capabilities, which increase service levels and enable meaningful operating efficiencies. Total revenue increased during the quarter, led by very strong retail growth of 38%. Late in the quarter, we experienced some revenue delays from longer procurement and transport lead times due to developing global supply chain complexities. A tightening supply chain also drove higher freight costs. "Looking to the second half of the year, we expect solid demand for our solutions and are reiterating our full-year revenue forecast of 3% to 5% growth. At the same time, higher-than-expected inflation for components and logistics lead us to adjust our 2021 outlook for profit and free cash flow. We will continue to work closely with our suppliers to manage global supply chain volatility, execute our cost reduction initiatives and leverage the operating rigor we have developed during our DN Now transformation. We remain committed to delivering strong free cash flow growth as we conclude our DN Now restructuring payments." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/28823/000002882321000121/dbd-20210630.htm About Diebold Nixdorf Diebold Nixdorf, Incorporated (NYSE: DBD) automates, digitizes and transforms the way people bank and shop. As a partner to the majority of the world's top 100 financial institutions and top 25 global retailers, the Company's integrated solutions connect digital and physical channels conveniently, securely and efficiently for millions of consumers each day. The company has a presence in more than 100 countries with approximately 22,000 employees worldwide. Visit www.DieboldNixdorf.com for more information. Diebold reported net losses of $267.8 million in 2020, $344.6 million in 2019, and $528.7 million in 2018. DURRANI M.D.: Sale of Doctor's Condo to Pay Off Claims ------------------------------------------------------ Durrani, M.D., & Associates, P.A. and Omar Hayat Durrani, M.D. submitted an Amended Disclosure Statement. The Debtors are a practicing doctor and his practice. After the effective date of the order confirming the Plan, Dr. Durrani will continue to manage her own financial affairs. Total general unsecured claims are approximately $900,000. The allowed general unsecured creditors will be paid their pro rata share of the equity from the sale of the condominium, and the investment dividends per month for 60 months beginning on the 15th day of the first month following the 60th day after the effective date of the plan. Payments and distributions under the Plan will be funded by through income from the practice of medicine. A copy of the Disclosure Statement dated July 28, 2021, is available at https://bit.ly/3rJUUKY from PacerMonitor.com. About Durrani, M.D. & Associates Durrani, M.D., & Associates, P.A., offers comprehensive treatment for disorders of the kidneys, bladder and male reproductive system as well as a focus on male and female sexual health. Visit https://www.durranimd.com for more information. Durrani, M.D., & Associates filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 19-35543) on Nov. 13, 2020. The petition was signed by Omar H. Durrani, M.D., president. At the time of the filing, the Debtor had estimated assets of between $100,000 and $500,000 and liabilities of $1 million to $10 million. Judge Christopher M. Lopez oversees the case. The Debtor is represented by the Law Office of Margaret M. McClure. EAGLE HOSPITAL TRUST: To Sell Crowne Plaza for $15.5 Million ------------------------------------------------------------ Michael S. Arnold of Bloomberg News reports that a unit of Eagle Hospitality REIT has agreed to sell the Crowne Plaza Dallas Near Galleria-Addison to Lockwood Development Partners LLC for $15.5 million, according to a stock-exchange filing. Price is in addition to non-refundable deposit of $1.45 million that Lockwood Development forfeited when it defaulted on previous purchase agreement, according to statement. The deal is subject to approval of U.S. Bankruptcy Court. About Eagle Hospitality Group Eagle Hospitality Trust -- https://eagleht.com/ -- is a hospitality stapled group comprising Eagle Hospitality Real Estate Investment Trust ("Eagle H-REIT") and Eagle Hospitality Business Trust. Based in Singapore, Eagle H-REIT is established with the principal investment strategy of investing on a long-term basis, in a diversified portfolio of income-producing real estate which is used primarily for hospitality and/or hospitality-related purposes, as well as real estate-related assets in connection with the foregoing, with an initial focus on the United States. EHT US1, Inc., and 26 affiliates, including 15 LLC entities that each owns hotels in the U.S., sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 21-10036) on Jan. 18, 2021. EHT US1, Inc., estimated $500 million to $1 billion in assets and liabilities as of the bankruptcy filing. The Debtors tapped PAUL HASTINGS LLP as bankruptcy counsel; FTI CONSULTING, INC., as restructuring advisor; and MOELIS & COMPANY LLC, as investment banker. COLE SCHOTZ P.C. is the Delaware counsel. RAJAH & TANN SINGAPORE LLP is Singapore Law counsel, and WALKERS is Cayman Law counsel. DONLIN, RECANO & COMPANY, INC., is the claims agent. EISNER ADVISORY: S&P Assigned 'B-' ICR, Outlook Stable ------------------------------------------------------ S&P Global Ratings assigned its 'B-' issuer credit rating to U.S.-based accounting firm Eisner Advisory Group LLC. S&P said, "We also assigned our 'B+' issue-level and '1' recovery ratings to the company's proposed $40 million super-priority revolving credit facility and our 'B-' issue-level and '3' recovery ratings to its proposed $440 million first-lien term loan senior secured credit facility, comprising a $400 million term loan and $40 million delayed draw term loan. "The stable rating outlook reflects our view that Eisner's credit metrics will improve steadily over the next 12 months as the company maintains a balanced approach between growth and acquisition while maintaining adequate liquidity. As a result, we expect that debt leverage will decline to the low-6x area and free operating cash flow to debt will improve to over 6% by the end of 2021. "The 'B-' issuer credit rating on Eisner is based on our assessment of the company as a middle-market professional service firm that primarily participates in the highly competitive and mature audit and tax industry. The rating also reflects the company's high pro forma adjusted debt leverage of about 6.3x and our expectation that the company will maintain an acquisitive growth strategy under its financial sponsor ownership. These factors are partially offset by the company's historically stable revenue driven by recurrent and non-discretionary services and a diversified customer base. In addition, the company has an asset-lite business model that allows for healthy free cash flow generation. "We view the company's reputation and ability to attract and retain qualified professionals as key for future growth. Eisner receives a high percentage of its fees from recurring and non-discretionary services and strong year-over-year client retention rates provide good clarity regarding future revenue and cash flow generation. As such, a significant percentage of its revenue comes from repeat clients. Nevertheless, we view the contribution from audit and tax services as highly competitive, commoditized, and matured with low growth prospect. Its lack of a track record under a corporate structure and limited scale and geographic diversity partially offset these strengths. In addition, despite the large market opportunities and predictable corporate needs providing ongoing revenue opportunities for the company, we believe that competition is significant given the size and diversity of other larger accounting firms. "We expect modest organic revenue growth in the low-single-digit area for the company and the industry, allowing for stable growth and margin expansion from increasing off-shoring and technology investment to increase efficiency. For the 12 months ended January 31, 2021, the company's S&P Global Ratings' EBITDA margin was in line with most rated peers. We expect adjusted leverage will remain in the low-6x area over the next 12 months as benefit from EBITDA growth and EBITDA from acquisitions are offset with additional debt from its delayed draw term loan. Despite the company's very high debt leverage, Eisner generates good discretionary cash flow to debt, in the mid-single-digit percentage area, due to low working capital and low capital expenditure (capex) needs. In addition, we believe the company's cash flow generation will increase the flexibility for future acquisitions and enable it to deleverage faster. Nevertheless, given the company's private equity ownership and history of acquisitions, we expect to use its internally generated cash flow for acquisitions and deleverage through EBITDA growth instead of debt repayment. "We relied on unaudited financial statements that Eisner provided. Although audited financial statements for the entity were unavailable, we expect the company to provide them for the full-year 2022. "The stable rating outlook reflects our view that Eisner's credit metrics will improve steadily over the next 12 months as the company completes planned acquisitions and maintains a balanced approach between organic growth and growth from acquisitions. As a result, we expect that debt leverage will decline to the low-6x area, and free operating cash flow to debt will improve to over 6% by the end of 2021. "We could lower our rating if we believed the company's capital structure were unsustainable, which could occur if it faced operational challenges such as acquisition-integration missteps, client volume declines because of more intense competition, or reputational challenges that reduced revenue or EBITDA and led to a negligible free operating cash flow-to-debt ratio. We could also lower our rating if the company pursued substantial debt-financed acquisitions or rewarded shareholder activities such that we believed it could not comfortably service its fixed charges with organic cash flow generation. "An upgrade would likely require the company to demonstrate a track record of conservative financial policy decisions that lead us to expect adjusted debt leverage to remain below 6.5x on a sustained basis due to a combination of EBITDA growth and debt repayment. Under this scenario, we would expect consistent revenue growth and small tuck-in acquisitions that do not significantly raise leverage." EKSO BIONICS: Incurs $1.3 Million Net Loss in Second Quarter ------------------------------------------------------------ Ekso Bionics Holdings, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $1.27 million on $2.21 million of revenue for the three months ended June 30, 2021, compared to a net loss of $11.77 million on $2.26 million of revenue for the three months ended June 30, 2020. For the six months ended June 30, 2021, the Company reported a net loss of $4.94 million on $4.12 million of revenue compared to a net loss of $14.30 million on $3.73 million of revenue for the same period during the prior year. As of June 30, 2021, the Company had $52.97 million in total assets, $12.88 million in total liabilities, and $40.10 million in total stockholders' equity. As of June 30, 2021, the Company had an accumulated deficit of $204,046,000. Largely as a result of significant research and development activities related to the development of the Company's advanced technology and commercialization of such technology into its medical device business, the Company has incurred significant operating losses and negative cash flows from operations since inception. In the six months ended June 30, 2021, the Company used $5,606,000 of cash in its operations. Cash on hand as of June 30, 2021 was $45,938,000. Revenue in the second quarter of 2021 included approximately $1.9 million in EksoHealth revenue and approximately $0.3 million in EksoWorks sales. The decrease in revenue was primarily due to the Company's shift in its strategic focus on customer acquisition through the subscription model. Subscription revenues are deferred and recognized over the period of the contract, typically over 12 months. Gross profit for the quarter ended June 30, 2021 was $1.3 million, an increase of 3% compared with the same period in 2020. Gross margin was approximately 58% in the second quarter of 2021, compared with gross margin of 56% for the same period in 2020. The overall increase in gross margin was primarily due to increased EksoWorks margins, driven by the reduced cost of the EVO vest compared to the prior generation, and the reduction of collaborative arrangements, which generally have lower gross margins, in overall revenue composition. Sales and marketing expenses for the quarter ended June 30, 2021 were $1.8 million, an increase of $0.1 million compared to the same period in 2020. The increase was primarily due to increased general marketing activities. Research and development expenses for the quarter ended June 30, 2021 were $0.7 million, an increase of approximately $0.3 million compared to the same period in 2020, primarily due to investments in new product development. General and administrative expenses for the quarter ended June 30, 2021 were $2.1 million, compared to $1.9 million for the same period in 2020, an increase of $0.2 million. The increase was primarily due to increased employee headcount and compensation expense, which was partially offset by a reduction in outside legal expenses. Gain on warrant liabilities for the quarter ended June 30, 2021 was $0.9 million associated with the revaluation of warrants issued in 2019, 2020 and 2021, compared with a loss of $8.6 million due to the revaluation of warrants issued in 2015, 2019 and 2020, for the same period in 2020. "We are pleased with the execution of our commercial strategy in the second quarter, as we continued gaining traction with top inpatient rehabilitation operators, resulting in several multi-unit EksoNR orders," said Jack Peurach, president and chief executive officer of Ekso Bionics. "As we head into the second half of the year, we remain focused on building sales momentum by facilitating faster EksoNR adoption through our new subscription model. The industrial side of our business generated solid order growth in the second quarter and our commercial team is focused on expanding awareness of our innovative EVO and EksoZeroG products across several new market verticals." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1549084/000154908421000039/ekso-20210630.htm About Ekso Bionics Ekso Bionics -- http://www.eksobionics.com-- is a developer of exoskeleton solutions that amplify human potential by supporting or enhancing strength, endurance and mobility across medical and industrial applications. Founded in 2005, the Company continues to build upon its expertise to design some of the most cutting-edge, innovative wearable robots available on the market. The Company is headquartered in the Bay Area and is listed on the Nasdaq CapitalMarket under the symbol EKSO. Ekso Bionics reported a net loss of $15.83 million for the year ended Dec. 31, 2020, compared to a net loss of $12.13 million for the year ended Dec. 31, 2019. As of March 31, 2021, the Company had $56.50 million in total assets, $15.53 million in total liabilities, and $40.97 million in total stockholders' equity. ENERMEX INTERNATIONAL: Voluntary Chapter 11 Case Summary -------------------------------------------------------- Debtor: Enermex International Inc. 12543 Unison Road Houston, TX 77044 Business Description: Enermex International Inc. is a Single Asset Real Estate debtor (as defined in 11 U.S.C. Section 101(51B)). Chapter 11 Petition Date: August 2, 2021 Court: United States Bankruptcy Court Southern District of Texas Case No.: 21-32619 Debtor's Counsel: John Akard Jr., Esq. COPLEN & BANKS, P.C. 11111 McCracken, Suite A Cypress, TX 77429 Tel: (832) 237-8600 Email: johnakard@attorney-cpa.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Edgar Padilla, president/CEO. The Debtor failed to include in the petition a list of its 20 largest unsecured creditors. A full-text copy of the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/6BW3IGI/Enermex_International_Inc__txsbke-21-32619__0001.0.pdf?mcid=tGE4TAMA ENGINEERED MACHINERY: S&P Rates New First-Lien Term Loan 'B-' ------------------------------------------------------------- S&P Global Ratings assigned its 'B-' issue-level and '3' recovery ratings to diversified specialty component manufacturer Engineered Machinery Holdings Inc.'s (Duravant's) proposed $1.14 billion incremental first-lien term loan due 2028. The '3' recovery rating indicates its expectation for meaningful recovery (50%-70%; rounded estimate: 60%) in the event of a default. S&P's 'CCC+' issue level and '5' recovery ratings on the company's second-lien term loan due 2029 are unchanged by the company's proposed $375 million add-on. The '5' recovery rating indicates its expectation for modest recovery (10%-30%; rounded estimate: 10%) in the event of a default. Duravant plans to use the proceeds from the proposed debt issuance to refinance its existing $999 million first-lien term loan due 2024 and its $266 million second-lien term loan due 2025. It will also pay a $275 million shareholder distribution to its financial sponsor, Warburg Pincus. S&P said, "While the proposed debt issuance will modestly increase 2021 leverage, we expect Duravant to demonstrate solid operating performance and generate decent free cash flow over the next 12 months. Specifically, we expect the company will continue to successfully integrate the acquisitions it made during the first half of the year. With more than $80 million of cash on the balance sheet and full availability on the $235 million revolving credit facility as of June 2021, we do not anticipate any near-term liquidity issues and expect Duravant will continue to pursue modest bolt-on acquisitions. As a result, our 'B-' issuer credit rating and stable outlook on the company are unchanged." Issue Ratings--Recovery Analysis Key analytical factors -- S&P's simulated default scenario assumes a default occurring in 2023 amid a deep global recession that sharply reduces the capital spending of the company's customers and significantly reduces its sales. -- Pricing competition and substitution risk also lead to a decline in Duravant's customer base. S&P assumes that in such a scenario, the company's liquidity would be fully utilized to fund its cash shortfalls such that it could not meet its fixed obligations. -- S&P has valued the company as a going concern using a 5.5x multiple of its projected emergence EBITDA. Simulated default assumptions -- Simulated year of default: 2023 -- Implied enterprise value multiple: 5.5x -- EBITDA at emergence: $238 million -- Jurisdiction: U.S. Simplified waterfall -- Net enterprise value at default (after 5% administrative costs): $1.25 billion -- Total value available to first-lien debt collateral:$1.18 billion -- Senior secured first-lien debt claims: $1.9 billion --Recovery expectations: 50%-70% (rounded estimate: 60%) -- Total value available to second-lien debt claims: $64.9 million -- Total second-lien debt and deficiency claims: $575 million --Recovery expectations: 0%-10% (rounded estimate: 10%) Note: All debt amounts include six months of prepetition interest. ENRON CAPITAL: Creditors Meeting Set for August 10 -------------------------------------------------- A meeting of creditors of Enron Capital and Trade Resources Singapore PTE Ltd. ("company") will be held by electronic means by way of video conferencing on Aug. 10, 2021 at 10:00 a.m. (Singapore Time) for these purposes: 1) to provide an update on the status of the liquidation of the Company; 2) to approve payment of dividends to unsecured creditors of the Company; 3) to approve the remuneration and disbursements of the liquidators; 4) to ratify the appointment of Drew & Napier LLC as the liquidators' legal counsel in Singapore and approve their professional fee and disbursements; 5) to ratify the appointment of Klehr Harrison Harvey Bransburg LLP as the liquidators' legal counsel in the United States of America, approve KHHB's professional fees and disbursements and approve the reimbursements of the payments made the liquidators to KHHB; 6) to ratify the appointment of Rajah & Tann Singapore LLP as liquidators' legal counsel in Singapore and approve their professional fees and disbursements; 7) to approve the professional fees of Harry Goh as the liquidators' advisor in respect of insurance matter; 8) to approve the dissolution of the Company after the liquidators resolve all outstanding matters; and 9) any other matters. The notice was posted by: Goh Thein Phong and Chan Kheng Tek Joint and Several Liquidators c/o PricewaterhouseCoopers Advisory Services Pte. Ltd. Strait View, Marina One East Tower, Level 12 Singapore 018936 In compliance with the COVID-19 Act 2020, credits may only attend the meeting by way of video conference by submitting a duly completed proxy form (either a general proxy or special pxoy) with the liquidators and including the details of one attendee by way of email to Daisy Xu (quiying.xu@pwc.com), Tel: +65 9730-8604 or Kelvin Thor (kelvin.s.thor@pwc.com), Tel: +65 9619-4708, by 10:00 a.m. on Aug. 9, 2021 (Singapore Time). FOX PROPERTY: Taps James M. Kilkowski as Special Counsel -------------------------------------------------------- Fox Property Holdings, LLC seeks approval from the U.S. Bankruptcy Court for the Central District of California to employ the Law Offices of James M. Kilkowski as special counsel. The Debtor needs the firm's legal assistance in connection with a case (Case No. CIV SB 2103495) filed in the Superior Court of the State of California San Bernardino County, captioned Ayreianna Armstrong vs. Fox Property Holdings, LLC, CHINA TV Media Group (USA), Inc., G.W. Group, LLC, George Luk, Rodrick Wayne Moore, Jr. aka Roddy Ricch, Ji Li. The firm will be paid at the rate of $550 per hour and reimbursed for out-of-pocket expenses incurred. James Kilkowski, Esq., disclosed in a court filing that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: James M. Kilkowski, Esq. Law Offices of James M. Kilkowski 1900 Avenue of the Stars, 25th Floor Los Angeles, CA 90067-4506 Tel: (310) 282-8995 Email: jmk@wilkil.com About Fox Property Holdings Fox Property Holdings, LLC owns a commercial real property in San Bernardino, Calif. The company's headquarter is located at 12803 Schabarum Avenue, Irwindale, Calif. Dr. Ji Li is the managing member and 100% equity holder of the company. Fox Property Holdings sought protection under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Calif. Case No. 18-10524) on Jan. 17, 2018. In the petition signed by Ji Li, the Debtor was estimated to have assets of $10 million to $50 million and liabilities of $1 million to $10 million. Judge Robert N. Kwan oversees the case. The Debtor tapped Levene, Neale, Bender, Yoo & Brill LLP as its bankruptcy counsel. Park & Lim and the Law Offices of James M. Kilkowski serve as special litigation counsel. FREDDIE MAC: Posts $3.7 Billion Net Income in Second Quarter ------------------------------------------------------------ Federal Home Loan Mortgage Corporation (Freddie Mac) reported net income of $3.7 billion for the second quarter of 2021, an increase of 107% year-over-year, primarily driven by higher net revenues and a credit reserve release, primarily in the Single-Family segment. The company also reported comprehensive income of $3.6 billion for the second quarter of 2021, an increase of 86% year-over-year. Net revenues increased 41% year-over-year to $5.9 billion, primarily driven by higher net interest income. Net interest income increased 66% year-over-year to $4.8 billion, primarily driven by continued growth in the Single-Family mortgage portfolio, higher average guarantee fee rates on the Single-Family mortgage portfolio, and higher deferred fee income recognition. Credit-related income was $0.2 billion for the second quarter of 2021, compared to credit-related expense of $0.7 billion for the second quarter of 2020, driven by a reserve release due to realized house price appreciation and improving economic conditions. Credit-related expense in the second quarter of 2020 was primarily driven by the negative economic effects of the COVID-19 pandemic. "In the second quarter, we provided critical support for the housing market, delivered a strong financial performance, and continued to manage our risks well. I'm very proud that during the quarter, we continued to advance our mission by providing liquidity, stability, and affordability to the market and by helping families keep their homes during the pandemic," said Michael J. DeVito, chief executive officer. As of June 30, 2021, Freddie Mac had $2.84 trillion in total assets, $2.81 trillion in total liabilities, and $22.40 billion in total equity. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1026214/000102621421000080/fmcc-20210630.htm#i54e994504f7e49f0bf8a3439254939e2_115 About Freddie Mac Federal National Mortgage Association (Freddie Mac) is a GSE chartered by Congress in 1970. The Company's public mission is to provide liquidity, stability, and affordability to the U.S. housing market. Freddie Mac does this primarily by purchasing residential mortgage loans originated by lenders. In most instances, it packages these loans into guaranteed mortgage-related securities, which are sold in the global capital markets and transfer interest-rate and liquidity risks to third-party investors. In addition, the Company transfers mortgage credit risk exposure to third-party investors through its credit risk transfer programs, which include securities- and insurance-based offerings. The Company also invests in mortgage loans and mortgage-related securities. The Company does not originate loans or lend money directly to mortgage borrowers. Since September 2008, Freddie Mac has been operating under conservatorship with FHFA as Conservator. The support provided by Treasury pursuant to the Purchase Agreement enables the company to maintain access to the debt markets and have adequate liquidity to conduct its normal business operations. The amount of funding available to Freddie Mac under the Purchase Agreement was $140.2 billion at June 30, 2021. Due to changes to the terms of the senior preferred stock pursuant to the January 2021 Letter Agreement, the company will not be required to pay a dividend to Treasury until it has built sufficient capital to meet the capital requirements and buffers set forth in the Enterprise Regulatory Capital Framework (ERCF). As a result, the company was not required to pay a dividend to Treasury on the senior preferred stock in June 2021. As the company builds capital during this period, the quarterly increases in its Net Worth Amount have been, or will be, added to the aggregate liquidation preference of the senior preferred stock. The liquidation preference of the senior preferred stock increased to $91.4 billion on June 30, 2021 based on the $2.4 billion increase in the Net Worth Amount during the first quarter of 2021, and will increase to $95.0 billion on Sept. 30, 2021 based on the $3.6 billion increase in the Net Worth Amount during the second quarter of 2021. Freddie Mac reported net income of $2.77 billion for the quarter ended March 31, 2021, compared to net income of $2.91 billion for the quarter ended March 31, 2020. As of March 31, 2021, the Company had $2.74 trillion in total assets, $2.72 trillion in total liabilities, and $18.79 billion in total equity. FRESH ACQUISITIONS: No Add'l Bids Received, Seeks Sale to Lender ---------------------------------------------------------------- Daniel Gill of Bloomberg Law reports that Old Country Buffet and affiliated restaurant chains canceled a bankruptcy auction after deciding to accept the only qualified offer submitted by a lender. The lender, VitaNova Brands LLC, which is also currently managing the debtors, submitted a bid that includes debt forgiveness and assumption of liabilities, lead debtor Fresh Acquisitions LLC said in a notice filed Thursday, July 29, 2021, in the U.S. Bankruptcy Court for the Northern District of Texas. VitaNova issued a $3.5 million debtor-in-possession loan to Fresh Acquisitions, and offered to cancel the amount of the loan the debtor actually received. About Fresh Acquisitions LLC and Buffets LLC Fresh Acquisitions LLC and Buffets, LLC operate independentrestaurant brands and are based in San Antonio, Texas. Prior to the COVID-19 pandemic, Fresh Acquisitions and its affiliates were a significant operator of buffet-style restaurants in the United States with approximately 90 stores operating in 27 states. Fresh Acquisitions' concepts include six buffet restaurant chains and a full-service steakhouse, operating under the names Furr's Fresh Buffet, Old Country Buffet, Country Buffet, HomeTown Buffet, Ryan's, Fire Mountain, and Tahoe Joe's Famous Steakhouse, respectively. Buffets Holdings, Inc. filed for Chapter 11 relief in January 2008 and won confirmation of a reorganization plan in April 2009. In January 2012, Buffets again sought Chapter 11 protection and emerged from bankruptcy in July 2012. On Aug. 19, 2015, Alamo Ovation, LLC acquired Buffets Restaurants Holdings, Inc., and as a result of the merger, Buffets operated over 300 restaurants in 35 states. Down to 150 restaurants in 25 states after closing unprofitable locations, Buffets LLC and its affiliated entities sought Chapter 11 protection (Bankr. W.D. Texas Case No. Lead Case No. 16-50557) in San Antonio, Texas, on March 7, 2016. On April 27, 2017, the court confirmed the Debtors' Second Amended Joint Plan of Reorganization. The effective date of the Plan was May 18, 2017. Fresh Acquisitions and 14 affiliates, including Buffets LLC (also known as Ovation Brands) sought Chapter 11 protection (Bankr. N.D. Texas Lead Case No. 21-30721) on April 20, 2021. Fresh Acquisitions was estimated to have $1 million to $10 million in assets and $10 million to $50 million in liabilities. The Hon. Harlin Dewayne Hale is the case judge. In the 2021 cases, the Debtors tapped Gray Reed as bankruptcy counsel, Katten Muchin Rosenman LLP as special counsel, Hilco Real Estate, LLC as real estate consultant, and GlassRatner Capital & Advisory Group LLC, doing business as B. Riley Advisory Services, as restructuring advisor. Mark Shapiro, GlassRatner's senior managing director, serves as the Debtors' chief restructuring officer. BMC Group, Inc. is the claims and noticing agent. Arizona Bank & Trust, as creditor, is represented by Patrick A. Clisham, Esq., at Engelman Berger, PC while the Debtors' DIP lender is represented by J. Michael Sutherland, Esq., at Carrington Coleman. On April 30, 2021, the U.S. Trustee for Region 7 appointed an official committee of unsecured creditors in the Debtors' Chapter 11 cases. Dickinson Wright, PLLC and Caliber Advisors, LLC serve as the committee's legal counsel and financial advisor, respectively. FURNITURE FACTORY: Debtor Will Liquidate its Assets to Pay Claims ----------------------------------------------------------------- Furniture Factory Ultimate Holding, L.P., et al., submitted a Plan and a Disclosure Statement. The Plan provides for the wind down of the Debtors' affairs, continued liquidation of the Debtors' remaining assets to Cash, and the distribution of the net proceeds realized therefrom, in addition to Cash on hand on the Effective Date of the Plan, to creditors holding Allowed Claims as of the Record Date in accordance with the relative priorities established in the Bankruptcy Code. The Plan does not provide for a distribution to holders of Intercompany Claims, Subordinated Claims, or Interests, and their votes are not being solicited as each is deemed to reject the Plan. The Plan contemplates the appointment of a Liquidation Trustee, selected by the Creditors' Committee, to, among other things, receive the Liquidation Trust Assets, establish and maintain such operating, reserve, and trust accounts as are necessary and appropriate to carry out the terms of the Liquidation Trust and the Plan, including the Liquidation Trust Claims Reserve, invest Cash that is a Liquidation Trust Asset, pursue objections to, estimation of, and settlements of all Claims, regardless of whether any such Claim is listed on the Debtors' Schedules, other than Claims that are Allowed pursuant to the Plan, prosecute, settle, or abandon any Retained Causes of Action, calculate all distributions made under the Plan (unless otherwise provided in the Plan), and authorize and make, through the Distribution Agent, all distributions to be made under the Plan. Class 7 General Unsecured Claims filed against the Debtors to date is approximately $30.1 million. Many General Unsecured Claims filed against the Debtors are duplicative, erroneously classified, paid, unsupportable and/or for contingent/unliquidated amounts and will be the subject of claims objections filed by the Debtors or Liquidation Trustee. Each holder of such Allowed General Unsecured Claim shall receive its pro rata share of the Beneficial Trust Interests, which Beneficial Trust Interests shall entitle the holders thereof to receive their pro rata share of the Liquidation Trust Assets. Class 7 is impaired. Counsel for the Debtors: Domenic E. Pacitti Michael W. Yurkewicz Sally E. Veghte KLEHR HARRISON HARVEY BRANZBURG LLP 919 N. Market Street, Suite 1000 Wilmington, DE 19801 Telephone: (302) 426-1189 Facsimile: (302) 426-9193 Email: dpacitti@klehr.com Email: myurkewicz@klehr.com Email: sveghte@klehr.com A copy of the Disclosure Statement dated July 28, 2021, is available at https://bit.ly/3fc7PQC from Stretto, the claims agent. About Furniture Factory Ultimate Holding Furniture Factory Outlet, LLC retails furniture and accessories products and serves customers in the United States. It was founded in 1984 in Muldrow, Okla., around an original concept of providing quality furniture at highly competitive prices with its "lowest price every day" guarantee. Furniture Factory and its affiliates, including Furniture Factory Outlet, LLC, sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-12816) on November 5, 2020. Furniture Factory was estimated to have $10 million to $50 million in assets and liabilities. The Honorable John T. Dorsey is the case judge before Judge J. Kate Stickles took over the case. The Debtors tapped Klehr Harrison Harvey Branzburg LLP as legal counsel, Focalpoint Securities LLC as an investment banker, RAS Management Advisors LLC as a financial advisor, and B. Riley Real Estate, LLC as their real property lease consultant. Stretto is the claims agent. G&G HOLDINGS: Case Summary & Unsecured Creditor ----------------------------------------------- Debtor: G&G Holdings, LLC 2020 Murrell Road Rockledge, FL 32955 Business Description: G&G Holdings, LLC is a Single Asset Real Estate debtor (as defined in 11 U.S.C. Section 101(51B)). Chapter 11 Petition Date: August 3, 2021 Court: United States Bankruptcy Court Middle District of Florida Case No.: 21-03551 Debtor's Counsel: Justin M. Luna, Esq. LATHAM LUNA EDEN & BEAUDINE LLP 201 S. Orange Avenue Suite 1400 Orlando, FL 32801 Tel: (407) 481-5800 Fax: (407) 481-5801 E-mail: jluna@lathamluna.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $500,000 to $1 million The petition was signed by Gisela Pennington as managing member. The Debtor listed Brevard Cty Tax Collector as its sole unsecured creditor holding a claim of $83. A full-text copy of the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/HIAMM5Q/GG_Holdings_LLC__flmbke-21-03551__0001.0.pdf?mcid=tGE4TAMA GIRARDI & KEESE: Auctions Furniture and More Amid Bankruptcy ------------------------------------------------------------ Ally Mauch of Explore People reports that Tom Girardi's former law firm is set to auction off various items later this summer of 2021 amid their ongoing bankruptcy case. Tom, 82, and the firm, Girardi Keese, were previously sued for allegedly embezzling funds from several families who lost loved ones in a 2018 Boeing plane crash, and he was later sued by his business partners, resulting in a chapter 7 bankruptcy petition in December -- one month after estranged wife Erika Girardi filed for divorce from him. In order to begin paying off the creditors in the ongoing bankruptcy case, items from the law office will be sold sometime in August 2021 or September 2021, per an auction page posted by Three Sixty Asset Advisors. The items include a Cadillac, vintage books, a piano, wine, art, oriental rugs, sports and music memorabilia and furniture. A poster of Julia Roberts from the movie Erin Brockovich is also being auctioned off — a reference to Tom's famous case against the Pacific Gas and Electric Company in the 1990s which inspired the film. In addition to Tom and Girardi Keese, Erika, 50, has also been named in the bankruptcy case. In June 2021, the petitioning creditors filed three separate motions that accused the Real Housewives of Beverly Hills star of refusing to turn over bank statements and other documents to the bankruptcy trustee, according to copies of the motions obtained by PEOPLE. The court ultimately ruled in favor of the creditors, ordering that Erika's accountant Michael Ullman, divorce lawyer Larry Ginsburg and landlord Benjamin Khakshour turn over various "key documents," including her pay stubs, bank statements and any emails and text messages pertaining to her finances. Weeks later, the attorney for the bankruptcy trustee, Ronald Richards, claimed that Erika and two of her businesses, EJ Global, LLC and Pretty Mess, Inc., received jewelry and other luxury items purchased using funds belonging to Girardi Keese, per a document obtained by PEOPLE. It also claimed Erika received lottery payments that belong to the Girardi Keese estate in addition to the "luxury items," adding up to a total of $25 million. The document further claimed that "the defendants" (Erika and her businesses) and "the debtor" (Girardi Keese) "conspired to conceal" the funds to keep the money away from the creditors in the bankruptcy case, which include Tom's former business partners as well as some of his former clients. "Erika has used her glamor and notoriety to continue to aid and abet in sham transactions that have occurred with respect to large transfers of assets from the Debtor," it said, adding that Erika has "refused to return" the lottery payments and luxury items, instead receiving or diverting them for her "own benefit." A lawyer for Erika did not immediately respond to PEOPLE's request for comment at the time. Amid the former couple's many legal woes, Tom has additionally been diagnosed with dementia and Alzheimer's disease and placed under a conservatorship. After his younger brother Robert was named as his temporary conservator in February, the appointment was made permanent in June 2021. "It's obviously a heartbreaking situation for Robert, but we agree with the court's rulings yesterday, July 29, 2021, " Robert's lawyer, Nicholas Van Brunt, said in a statement to PEOPLE at the time. 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. be reached at: 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 GUARDION HEALTH: Appoints New Chief Accounting Officer ------------------------------------------------------ Guardion Health Sciences, Inc. appointed Jeffrey Benjamin as its chief accounting officer effective as of Aug. 1, 2021. Since April 2021, Jeffrey Benjamin has served as the corporate controller of the Company. From January 2020 to February 2020, Mr. Benjamin served as a consultant to Capstone Turbine, a provider of clean and green on-site energy solutions, and from September 2019 until January 2020, he served as consulting controller of Mendocino Farms Sandwich Market. In addition, from October 2017 until April 2018, Mr. Benjamin served as VP Finance of Ritter Pharmaceuticals, Inc. (currently known as Qualigen Therapeutics (Nasdaq: QLGN)), a biotechnology company currently focused on developing novel therapeutics for the treatment of cancer and infectious diseases, and from February 2017 to October 2017, he served as consulting controller of Unified Grocers, a wholesale grocery cooperative, which subsequently merged with SUPERVALU. Mr. Benjamin previously served in various other capacities including, but not limited to, Principal of Tatum by Randstad; chief financial officer of Communications Infrastructure Corporation; Corporate Controller of Liaison Technologies; Vice President, Corporate Controller of Internap Network Services Corp; and Controller of UPS Capital. Mr. Benjamin is a Certified Public Accountant in the State of New York and received his B.A. in accounting and information systems from Queens College, City University of New York. On July 29, 2021, the Company entered into an employment agreement with Mr. Benjamin pursuant to which Mr. Benjamin serves as chief accounting officer of the Company effective as of Aug. 1, 2021. The term of the Employment Agreement will continue until June 30, 2022 and thereafter shall continue on an at-will basis, unless earlier terminated pursuant to the terms of the Employment Agreement. Pursuant to the Employment Agreement, Mr. Benjamin shall receive an annual base salary of $250,000, or such greater amount as may be determined by the Company from time to time. In addition, Mr. Benjamin will be eligible to participate in such retirement, life insurance, fringe and other employee benefit plans that the Company maintains for its full-time employees and shall be eligible to be reimbursed for reasonable documented expenses. In the event the Company is required to restate its publicly issued financial statements as a result of intentional misconduct by Mr. Benjamin, he will be required to reimburse the Company for any bonuses advanced to and profits received by him from the sale of the Company's securities during the 12 months subsequent to the initial issuance of such financial statements. Furthermore, any compensation paid to Mr. Benjamin will be subject to clawback as may be required by law or otherwise. Pursuant to the Employment Agreement, the Company may terminate Mr. Benjamin's employment (i) for death, (ii) for Disability (as defined in the Employment Agreement), (iii) for Cause (as defined in the Employment Agreement), (iv) without Cause upon 60 days prior written notice or (v) during the At-Will Period with or without Cause upon 60 days prior written notice. Pursuant to the Employment Agreement, Mr. Benjamin may terminate his employment (i) for any reason upon 60 days prior written notice to the Company, (ii) during the Initial Term, for Good Reason (as defined in the Employment Agreement) or (iii) during the At-Will Period with or without reason, and without any notice requirement. In the event Mr. Benjamin's employment is terminated (i) for death, (ii) upon his Disability or (iii) by the Company for Cause during the Term or in the event that the Term is terminated during the At-Will Period or (iv) Mr. Benjamin terminates his employment during the Term for any reason other than Good Reason, Mr. Benjamin shall be entitled to receive his then base salary and Benefits accrued through the date of his death or termination. In the event the Company terminates the Term and Mr. Benjamin's employment without Cause during the Initial Term, including if Mr. Benjamin's employment is terminated following a Change in Control (as defined in the Employment Agreement) during such period, or if Mr. Benjamin terminates his employment for Good Reason during the Initial Term, Mr. Benjamin shall be entitled to receive (i) six months of his then base salary and payment for continuation of Benefits or, if after Dec. 31, 2021, three months of his then base salary and payment for continuation of Benefits and (ii) his then base salary and accrued Benefits through the date of termination. As a prerequisite to receiving the severance described above (in excess of Mr. Benjamin's then base salary and Benefits accrued through the date of termination) (i) in the event that the Company terminates the Term and Mr. Benjamin's employment without Cause during the Initial Term, including if Mr. Benjamin's employment is terminated following a Change in Control, or (ii) Mr. Benjamin terminates his employment for Good Reason during the Initial Term, Mr. Benjamin will be required to execute a Release (as defined in the Employment Agreement) in favor of the Company within 45 days of the date of his termination. About Guardion Health Sciences Headquartered in San Diego, California, Guardion -- http://www.guardionhealth.com-- is a specialty health sciences company that develops clinically supported nutrition, medical foods and medical devices, with a focus in the ocular health marketplace. Located in San Diego, California, the Company combines targeted nutrition with innovative, evidence-based diagnostic technology. Guardion Health reported a net loss of $8.57 million for the year ended Dec. 31, 2020, compared to a net loss of $10.88 million for the year ended Dec. 31, 2019. As of March 31, 2021, the Company had $44.70 million in total assets, $1.21 million in total liabilities, and $43.49 million in total stockholders' equity. HAWAIIAN HOLDINGS: Incurs $6.18 Million Net Loss in Second Quarter ------------------------------------------------------------------ Hawaiian Holdings, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $6.18 million on $410.78 million of total operating revenue for the three months ended June 30, 2021, compared to a net loss of $106.90 million on $60 million of total operating revenue for the three months ended June 30, 2020. For the six months ended June 30, 2021, the Company reported a net loss of $66.87 million on $593 million of total operating revenue compared to a net loss of $251.28 million on $619.15 million of total operating revenue for the same period during the prior year. As of June 30, 2021, the Company had $5.22 billion in total assets, $1.44 billion in total current liabilities, $1.89 billion in long-term debt, $1.28 billion in total other liabilities and deferred credits, and $610.47 million in total shareholders' equity. Cash, cash equivalents and short-term investments (excluding restricted cash) totaled approximately $2,181.6 million as of June 30, 2021, compared to approximately $864.4 million as of Dec. 31, 2020. As a result of the COVID-19 pandemic, the Company took actions in 2020 to increase liquidity and augment its financial position and continued to do so in the first quarter of 2021 with the closing of its $1.2 billion loyalty and intellectual property financing. In connection with the Company's first quarter financing activities, its total debt obligations increased $879.3 million, or 76.5% as of June 30, 2021 as compared to Dec. 31, 2020. As of June 30, 2021, the Company's current assets exceeded its current liabilities by approximately $1,045.5 million as compared to $113.9 million as of Dec. 31, 2020. Approximately $823.1 million of its current liabilities relate to its advanced ticket sales and frequent flyer deferred revenue, both of which largely represent revenue to be recognized for future travel. The Company said, "We cannot assure you that the assumptions used to estimate our liquidity requirements will be correct because we have never previously experienced such an unprecedented event impacting global travel, and as a consequence, our ability to predict the full impact of the COVID-19 pandemic is uncertain. In addition, the magnitude and duration of the COVID-19 pandemic is uncertain. However, based on the improving customer demand environment, assumptions and estimates made with respect to the ongoing recovery of our operations to pre-COVID-19 pandemic levels, and our financial condition, we believe that the liquidity described in the preceding paragraphs will be sufficient to fund our liquidity requirements over at least the next twelve months and we are no longer actively seeking to raise capital." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1172222/000117222221000075/ha-20210630.htm About Hawaiian Holdings Hawaiian Holdings, Inc.'s primary asset is sole ownership of all issued and outstanding shares of common stock of Hawaiian Airlines, Inc. The Company is engaged in the scheduled air transportation of passengers and cargo amongst the Hawaiian Islands (the Neighbor Island routes) and between the Hawaiian Islands and certain cities in the United States (the North America routes together with the Neighbor Island routes, the Domestic routes), and between the Hawaiian Islands and the South Pacific, Australia, New Zealand and Asia (the International routes), collectively referred to as its Scheduled Operations. Hawaiian Holdings reported a net loss of $510.93 million for the year ended Dec. 31, 2020, compared to net income of $223.98 million for the year ended Dec. 31, 2019. * * * As reported by the TCR on April 12, 2021, S&P Global Ratings revised its ratings outlook to positive from negative and affirmed its 'CCC+' issuer credit rating on Hawaiian Holdings Inc. (parent of Hawaiian Airlines). "The positive outlook indicates that we could raise our ratings on Hawaiian if we see sustained improvements in traffic resulting in funds from operations (FFO) to debt improving to at least the mid-single-digit-percent area in 2022 and further in 2023, with the company also continuing to maintain adequate liquidity. HILLMAN COMPANIES: Posts $3.4 Million Net Loss in Second Quarter ---------------------------------------------------------------- The Hillman Companies, Inc. reported a net loss of $3.39 million on $375.72 million of net sales for the 13 weeks ended June 26, 2021, compared to a net loss of $5.04 million on $346.71 million of net sales for the 13 weeks ended June 27, 2020. For the 26 weeks ended June 26, 2021, the Company reported a net loss of $12.36 million on $717 million of net sales compared to a net loss of $19.84 million on $642.55 million of net sales for the 26 weeks ended June 27, 2020. As of June 26, 2021, the Company had $2.60 billion in total assets, $2.23 billion in total liabilities, and $363.85 million in total stockholders' equity. Doug Cahill, chairman, president and chief executive officer, stated "It has been an exciting time for Hillman with the closing of the transaction with Landcadia III and on July 15th ringing the bell and becoming a publicly traded company on Nasdaq under the symbol 'HLMN'. With the transaction complete and the recapitalization of our balance sheet, we are even better positioned to do what we do best, solved complexity, labor and logistics problems for best-in-class retailers from big box to your local hardware stores. I can't remember a time in the hardware and home improvement business when these were more important to our retailers than they are right now." A full-text copy of the press release is available for free at: https://www.sec.gov/Archives/edgar/data/1029831/000102983121000059/ex991q22021.htm About Hillman Founded in 1964 and headquartered in Cincinnati, Ohio, Hillman -- www.hillmangroup.com -- is a North American provider of complete hardware solutions, delivered to over 40,000 locations. Hillman designs innovative product and merchandising solutions for complex categories that deliver an outstanding customer experience to home improvement centers, mass merchants, national and regional hardware stores, pet supply stores, and OEM & Industrial customers. The Company reported a net loss of $24.50 million for the year ended Dec. 26, 2020, a net loss of $85.48 million for the year ended Dec. 28, 2019, and a net loss of $58.68 million for the year ended Dec. 29, 2018. * * * As reported by the TCR on Jan. 29, 2021, Fitch Ratings has placed the 'CCC+' Issuer Default Rating (IDR) of The Hillman Companies, Inc. and The Hillman Group, Inc. (HLMN) on Rating Watch Positive. These actions follow the company's announcement that its current private equity sponsor, CCMP, plans to divest a majority of its ownership position to a publicly held special purpose acquisition company. IDEANOMICS INC: To Invest $25 Million in MDI Keepers Fund --------------------------------------------------------- Ideanomics, Inc. entered into a subscription agreement to invest $25,000,000 in the Minority Depository Institution Keepers Fund over a period of three years. The MDI Fund is sponsored by the National Bankers' Association, an organization of minority-owned banks that aims to increase inclusivity in the financial services industry. The MDI Fund will provide capital resources primarily in low and moderate income areas to grow a more skilled workforce, increase employment opportunities, and support businesses' growth among minority and underserved communities. About Ideanomics Ideanomics is a global company focused on the convergence of financial services and industries experiencing technological disruption. Its Mobile Energy Global (MEG) division is a service provider which facilitates the adoption of electric vehicles by commercial fleet operators through offering vehicle procurement, finance and leasing, and energy management solutions under its innovative sales to financing to charging (S2F2C) business model. Ideanomics Capital is focused on disruptive fintech solutions and services across the financial services industry. Together, MEG and Ideanomics Capital provide their global customers and partners with leading technologies and services designed to improve transparency, efficiency, and accountability, and its shareholders with the opportunity to participate in high-potential, growth industries. The Company is headquartered in New York, NY, with operations in the U.S., China, Ukraine, and Malaysia. Ideanomics reported a net loss of $106.04 million for the year ended Dec. 31, 2020, compared to a net loss of $96.83 million for the year ended Dec. 31, 2019. As of March 31, 2021, the Company had $569.90 million in total assets, $140.37 million in total liabilities, $1.26 million in convertible preferred stock, $7.6 million in redeemable non-controlling interest, and $420.67 million in total equity. INFRASTRUCTURE AND ENERGY: S&P Upgrades ICR to 'B+' on Refinancing ------------------------------------------------------------------ S&P Global Ratings raised its issuer credit rating on Infrastructure and Energy Alternatives Inc. (IEA) to 'B+' from 'B'. The outlook is stable. S&P said, "At the same time, we assigned our 'B+' issue-level rating and '4' recovery rating to the proposed $300 million senior unsecured notes. "The stable outlook reflects our expectation for improved credit measures following the refinancing transaction, assuming stable operating performance and cash flows for the full year 2021, with adjusted debt to EBITDA below 3x. "Following the proposed refinancing we expect IEA's adjusted debt to EBITDA to improve to below 3x.The proposed refinancing includes issuance of $300 million of senior unsecured notes due 2029 and $201.3 million of common stock to repay its existing term loan due 2024, redeem its series B preferred stock, pay fees and expenses, and add cash to the balance sheet. The common stock offering was completed on July 29, 2021. In addition, IEA will replace its existing $75 million revolving credit facility with an upsized $150 million revolving credit facility expiring 2026. Pro forma for the transaction, we anticipate IEA will have lower debt balances and lower interest expense, along with improved liquidity. Our base case forecast assumes its adjusted debt leverage below 3x, with free operating cash flow (FOCF) to debt in the midteen digit percent area over the next 12 to 24 months. "We anticipate IEA's earnings will continue to benefit from supportive demand conditions for renewable energy projects.In our view, the business, particularly its renewables segment, will continue to benefit from increasing demand for clean energy projects, bolstered by the recent new multiyear coal ash contract and the extension of production tax credit and solar investment tax credit. We believe the company's near-term growth will be supported by its healthy backlog of work. As of June 30, 2021, IEA had about $2.8 billion backlog, of which we expect a substantial portion will convert to revenues in the next 12 months. Additionally, we anticipate IEA will maintain relatively stable adjusted EBITDA margins in the high-single-digit percent area and generate good cash flows. Still, in our view, IEA's lower leverage is somewhat offset by the inherent volatility in earnings due to its participation in the cyclical engineering and construction (E&C) industry. Profitability can fluctuate due to unanticipated project losses, project delays, or adverse weather. "The stable outlook reflects our expectation for improved credit measures following the refinancing transaction, assuming stable operating performance and cash flows for the full year 2021, with adjusted debt to EBITDA below 3x." S&P could lower its ratings on IEA if its: -- Adjusted debt to EBITDA increases above 5x or FOCF to debt declines below 5% on a sustained basis. This could be caused by weaker-than-anticipated operating performance due to unexpected material project delays or losses; or -- Credit ratios weaken to these levels because of more aggressive financial policy or large debt-financed acquisitions. S&P said, "Although less likely, we could raise our rating on IEA if the business, in our view, established a track record of stable earnings generation and maintained adjusted debt to EBITDA well below 3x with FOCF to adjusted debt above 15% on a sustained basis. This would provide adequate cushion for underperformance in the event of cost overruns, including unanticipated cost increases on fixed price and guaranteed maximum price contracts, and lead to an improved assessment of cash flow adequacy. We would also need to believe that the company were committed to a financial policy of maintaining these metrics." INTERNATIONAL LAND: Closes $2 Million Private Placement ------------------------------------------------------- International Land Alliance, Inc. has closed its previously announced private placement with a single institutional investor for the purchase of 3,000,000 shares of its common stock at a purchase price per share of $0.68. Additionally, ILA issued to the investor warrants to purchase up to 3,000,000 shares of common stock. The warrants have an exercise price of $0.68 per share, are immediately exercisable and will expire five and one half years from the issuance date. H.C. Wainwright & Co. acted as exclusive placement agent for the offering. The gross proceeds to ILA, before deducting placement agent fees and other offering expenses, were approximately $2.0 million. ILA intends to use the net proceeds from the offering for construction, sales and marketing, debt retirement and general working capital purposes. About Land International International Land Alliance, Inc. -- https://ila.company -- is an international land investment and development firm based in San Diego, California. The Company is focused on acquiring attractive raw land primarily in Northern Baja California, often within driving distance from Southern California. The Company's principal activities are purchasing properties, obtaining zoning and other entitlements required to subdivide the properties into residential and commercial building lots, securing financing for the purchase of the lots, improving the properties' infrastructure and amenities, and selling the lots to homebuyers, retirees, investors and commercial developers. International Land reported a net loss of $2.67 million for the year ended Dec. 31, 2020, compared to a net loss of $1.59 million for the year ended Dec. 31, 2019. As of March 31, 2021, the Company had $2.64 million in total assets, $4.02 million in total liabilities, $293,500 in preferred stock series B, and a total stockholders' deficit of $1.66 million. Irvine, California-based Haskell & White LLP, the Company's auditor since 2019, issued a "going concern" qualification in its report dated April 2, 2021, citing that the Company has experienced recurring losses from operations, has limited financial resources to repay its debt obligations, will require substantial new capital to execute its business plans, and the real estate industry in which it operates faces significant uncertainty due to the COVID-19 pandemic, which raise substantial doubt about its ability to continue as a going concern. J.J.W. METAL: Court Approves Disclosure Statement ------------------------------------------------- Judge Edward A. Godoy has entered an order approving the Disclosure Statement of J J W Metal Corp. A hearing for the consideration of confirmation of the Plan and of such objections as may be made to the confirmation of the Plan will be held on Sept. 10, 2021, at 9:30 a.m. via Microsoft Teams. Any objection to confirmation of the Plan is due 14 days prior to the date of the hearing on confirmation of the Plan. Acceptances or rejections of the Plan may be filed in writing by the holders of all claims on/or before 14 days prior to the date of the hearing on confirmation of the Plan. About J.J.W. Metal Corp. Palmer, P.R.-based J.J.W. Metal Corp. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 20-04536) on Nov. 23, 2020. In the petition signed by Jorge Rodriguez Quinones, president, the Debtor disclosed total assets of $1,649,341 and total liabilities of $1,750,865. Judge Edward A. Godoy oversees the case. The Debtor tapped Charles A. Cuprill, PSC, Law Offices as bankruptcy counsel, and Gino Negretti Lavergne, Esq., and Frank Inserni Milam, Esq., as special counsel. It also tapped the consulting services of Luis R. Carrasquillo & Co. PSC, Intelligence & Investigations Group Inc., Risk Assessment & Management (RAM) Group Inc., Arturo Vazquez Cancel, and ISFPE LLC. JAKKS PACIFIC: Benefit Street, T. Gahan Report 14.4% Equity Stake ----------------------------------------------------------------- In a Schedule 13D filed with the Securities and Exchange Commission, Benefit Street Partners L.L.C. and Thomas J. Gahan disclosed that as of July 21, 2021, they beneficially own 1,356,639 shares of common stock of Jakks Pacific, Inc., which represents 14.4 percent of the shares outstanding. The aggregate percentage of Common Stock reported was calculated based upon 9,400,000 shares of Common Stock outstanding as of July 27, 2021. Benefit Street Partners is a registered investment adviser under Section 203 of the Investment Advisers Act of 1940, as amended. BSP, either directly or through one or more affiliated entities, serves as the investment adviser to funds and accounts managed by it. Mr. Gahan controls BSP in his role as chief executive officer of BSP's sole managing member. A full-text copy of the regulatory filing is available for free at: https://www.sec.gov/Archives/edgar/data/1009829/000090571821000983/jakks_13djul212021.htm About Jakks Pacific JAKKS Pacific, Inc. -- www.jakks.com -- is a designer, manufacturer and marketer of toys and consumer products sold throughout the world, with its headquarters in Santa Monica, California. JAKKS Pacific's popular proprietary brands include Fly Wheels, Kitten Catfe, Perfectly Cute, ReDo Skateboard Co, X-Power, Disguise, Moose Mountain, Maui, Kids Only!; a wide range of entertainment-inspired products featuring premier licensed properties; and C'est Moi, a new generation of clean beauty. Jakks Pacific reported a net loss of $14.14 million for the year ended Dec. 31, 2020, compared to a net loss of $55.38 million for the year ended Dec. 31, 2019. As of March 31, 2021, the Company had $298.41 million in total assets, $301.99 million in total liabilities, $2.07 million in preferred stock, and a total stockholders' deficit of $5.65 million. Los Angeles, California-based BDO USA, LLP, the Company's auditor since 2006, included a "going concern" paragraph in its report dated March 19, 2021, citing that the Company's primary sources of working capital are cash flows from operations and borrowings under its credit facility. The Company's cash flows from operations are primarily impacted by the Company's sales, which are seasonal, and any change in timing or amount of sales may impact the Company's operating cash flows. The Company owes $124.5 million on its term loan and has borrowing capacity under its credit facility of $37.3 million as of Dec. 31, 2020. During 2020, the Company reached an agreement with its holders of its term loan and the holder of its revolving credit facility, to amend the New Term Loan Agreement and defer the Company's EBITDA covenant requirement until March 31, 2022 and reduced the trailing 12-month EBITDA requirement to $25.0 million. Based on the Company's operating plan, management believes that the current working capital combined with expected operating and financing cashflows to be sufficient to fund the Company's operations and satisfy the Company's obligations as they come due for at least one year from the financial statement issuance date. JETBLUE AIRWAYS: S&P Alters Outlook to Positive, Affirms 'B+' ICR ----------------------------------------------------------------- S&P Global Ratings revised its ratings outlook to positive from negative and affirmed its 'B+' issuer credit rating on JetBlue Airways Corp. S&P said, "The positive outlook reflects that we could raise our ratings on JetBlue if we see continued improvement in demand, resulting in funds from operations (FFO) improving to above 20% on a sustained basis. "We expect JetBlue will continue to benefit from the recent increase in demand for domestic travel, given its predominantly leisure-focused domestic network.Domestic leisure travel in the U.S. has rebounded as a result of the increasing level of vaccinations and easing of travel restrictions brought on by the COVID-19 pandemic. As a predominantly leisure-travel focused airline (business revenue was about 20% of total revenue in 2019) focused largely on domestic and short-haul international markets, we expect JetBlue to continue to benefit from these positive demand trends through the remainder of 2021 and into 2022. JetBlue's international operations (which accounted for about 30% of its revenue in 2019) are focused in the Caribbean and Latin America, markets we expect to recover ahead of long-haul international destinations. While the recent increase in COVID-19 infections raises uncertainty into the traffic and revenue recovery, we do not foresee a return to widespread lockdowns. "We forecast a continued gradual improvement in JetBlue's operating results through 2022." JetBlue's operations in 2020 and early 2021 were somewhat more affected than many of its peers, given its significant presence in the northeastern states, many of which had more stringent COVID-19 related travel and quarantine restrictions than most other states across the U.S. The company also had significant capital spending obligations, which resulted in significantly higher debt levels than 2019's. However, thus far in 2021, JetBlue has made progress toward reducing its debt levels. In the first quarter of 2021, the company repaid its revolving credit facility, and in the second quarter, the company prepaid the remaining $722 million of the $750 million term loan that it entered into in June 2020 to raise liquidity. The company's reported net debt as of June 30, 2021 was lower than pre-pandemic levels (debt level remains significantly higher than pre-pandemic levels on an S&P Global Ratings-adjusted basis, since we do not net cash against debt for JetBlue). S&P said, "We expect revenue and profitability to continue to improve gradually through 2022, as the company ramps up its operations in response to stronger demand. We forecast FFO to debt at about 10% in 2021 (negative in 2020), growing to the mid-20% area in 2022, supported by improving operations as well as lower debt and interest expense. In 2019, FFO to debt was 46.4%. "We continue to assess JetBlue's liquidity as adequate. We expect liquidity sources to be about 2.9x uses over the next 12 months. As of June 30, 2021, JetBlue had about $3.2 billion cash and equivalents (excluding $550 million of minimum liquidity it is required to maintain under covenants in its credit facilities) and availability under its $550 million revolving credit facility. We also expect it to generate cash FFO of $600 million-$700 million over the next 12 months. Key uses of liquidity include capital spending of about $1 billion and debt amortization of over $500 million over the next 12 months. "We believe the company will reduce its liquidity cushion somewhat as the recovery gains traction, but that it will maintain significantly more cash than pre-pandemic levels, at least through the end of 2021." Environmental, Social, and Governance (ESG) credit factors for this credit rating change. -- Health and safety S&P said, "The positive outlook reflects our expectation that JetBlue's operating and financial performance will continue to improve in the second half of 2021 and into 2022, supported by an ongoing recovery in demand for domestic leisure air travel. We expect FFO to debt of about 10% in 2021, improving to the mid-20% area in 2022. "We could raise our rating on JetBlue over the next year if we see continued improvement in demand, resulting in FFO to debt improving to above 20% on a sustained basis. "We could revise our outlook on JetBlue to stable over the next year if we come to believe that demand recovery will be materially more prolonged or weaker than expected, such that we expect FFO to remain below 20% on a sustained basis." JOHNSON & JOHNSON: Agrees to Delay Bankruptcy on Talc Claims ------------------------------------------------------------ Steven Church of Bloomberg News reports that Johnson & Johnson agreed to wait to take any actions in bankruptcy court to resolve billions of dollars in potential health claims related to allegedly tainted baby powder. J&J will maintain the "status quo" in its current dispute with people who claim they were harmed by the talc J&J used in its baby powder, bankruptcy attorney Ted Tsekerides said during a bankruptcy court hearing Thursday, July 29, 2021. Lawyers for some alleged victims have asked U.S. Bankruptcy Judge Laurie Silverstein to block the consumer products giant from putting the health claims into a unit that could file bankruptcy. About Johnson & Johnson Based in Skillman, New Jersey, Johnson & Johnson Consumer Companies Inc. engages in the research and development of products. The Company provides products for newborns, babies, toddlers, and mothers, including cleansers, skin care, moisturizers, hair care, diaper care, sun protection, and nursing products. * * * Johnson & Johnson has chosen law firm Jones Day to advise it as it explores placing a subsidiary in bankruptcy to settle thousands of personal injury claims linking talcum-based baby powder to cancer, Dow Jones reported. J&J could move talc-related liabilities into a new unit formed specifically for bankruptcy, protecting income-producing assets. L'INC D'ALINE: Case Summary & 7 Unsecured Creditors --------------------------------------------------- Debtor: L'Inc D'Aline Corporation 7470 Cerritos Avenue Stanton, CA 90680 Chapter 11 Petition Date: August 3, 2021 Court: United States Bankruptcy Court Central District of California Case No.: 21-11906 Judge: Hon. Scott C. Clarkson Debtor's Counsel: Michael Jay Berger, Esq. LAW OFFICES OF MICHAEL JAY BERGER 9454 Wilshire Boulevard, 6th Floor Beverly Hills, CA 90212 Tel: (310) 271-6223 Fax: (310) 271-9805 Email: michael.berger@bankruptcypower.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Zaal John Haddadin, chief executive officer. A full-text copy of the petition containing, among other items, a list of the Debtor's seven unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/LF3LEXY/LInc_DAline_Corporation__cacbke-21-11906__0001.0.pdf?mcid=tGE4TAMA LEVEL EIGHT: Seeks Cash Collateral Access ----------------------------------------- Level Eight, Inc. asks the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division, for authority to use cash collateral on an interim basis. Level Eight asserts the request is an emergency matter since the Debtor has no outside sources of funding available to it and must rely on the use of cash collateral to continue its operations. The Debtor intends to rearrange its affairs and needs to continue to operate in order to pay its ongoing expenses, generate additional income and to propose a plan in the case. Spectra Bank, the Debtor's secured creditor, asserts liens on the Debtor's personal property including accounts. Level Eight says it can adequately protect the interests of the Secured Lender as set forth in the proposed Interim Order by providing the Secured Lender with post-petition liens, a priority claim in the Chapter 11 bankruptcy case, and cash flow payments. The cash collateral will be used to continue the Debtor's ongoing operations. A copy of the motion is available at https://bit.ly/3rLGZ6V from PacerMonitor.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. The Debtor operates a scrap metal recycling facility located in Dallas, Texas. 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. LIMETREE BAY: Scheduled to Shut Down Its St. Croix Refinery ----------------------------------------------------------- Law360 reports that Limetree Bay Refining LLC told a Texas bankruptcy judge Monday that it had repaired a damaged section of its St. Croix refinery and was preparing a plan to decommission and shutter it -- maybe permanently -- after environmental incidents caused it to stop production in May 2021. During a virtual hearing, debtor attorney Elizabeth A. Green of BakerHostetler said a flaring stack that was damaged in a fire and led to a "rainout" of oil in the residential areas adjacent to the refinery has been repaired, allowing Limetree Bay to commence the removal of the oil and gas trapped in the facility. About Limetree Bay Limetree Bay Energy is a large-scale energy complex strategically located in St. Croix, U.S. Virgin Islands. The complex consists of Limetree Bay Refining, a refinery with peak processing capacity of 650 thousand barrels of petroleum feedstock per day, and Limetree Bay Terminal, a 34-million-barrel crude and petroleum products storage and marine terminal facility serving the refinery and third-party customers. Limetree Bay Refining, LLC, restarted operations in February 2021, and is capable of processing around 200,000 barrels per day. Key restart work at the site began in 2018, including the 62,000 barrels per day modern, delayed Coker unit, extensive desulfurization capacity, and a reformer unit to produce clean, low-sulfur transportation fuels. The restart project provided much needed economic development in the U.S.V.I. and created more than 4,000 construction jobs at its peak. Limetree Bay Refining, LLC and its affiliates sought Chapter 11 protection on July 12, 2021. The lead case is In re Limetree Bay Services, LLC (Bankr. S.D. Tex. Case No. 21-32351). Limetree Bay refining listed at least $1 billion in assets and at least $500 million in liabilities as of the bankruptcy filing. Baker Hostetler is acting as legal counsel for the Company and B. Riley Financial Inc. has been retained as restructuring advisor. LSB INDUSTRIES: Posts $23.7 Million Net Income in Second Quarter ---------------------------------------------------------------- LSB Industries, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing net income of $23.67 million on $140.7 million of net sales for the three months ended June 30, 2021, compared to a net loss of $365,000 on $105.03 million of net sales for the three months ended June 30, 2020. For the six months ended June 30, 2021, the Company reported net income of $10.39 million on $238.81 million of net sales compared to a net loss of $19.82 million on $188.44 million of net sales for the same period during the prior year. As of June 30, 2021, the Company had $1.05 billion in total assets, $95.32 million in total current liabilities, $461.46 million in long-term debt, $20.28 million in noncurrent operating lease liabilities, $7.37 million in other noncurrent accrued and other liabilities, $31.2 million in deferred income taxes, $292.85 million in redeemable preferred stocks, and $141.02 million in total stockholders' equity. Net cash provided by operating activities was $30.6 million for first half of 2021 compared to $19.4 million for the same period of 2020, a change of $11.2 million. Net cash used by investing activities was $14.5 million for the first half of 2021 compared to $17.7 million for the same period of 2020, a change of $3.1 million. For the first half of 2021 and 2020, the net cash used relates primarily to expenditures for PP&E. Net cash used by financing activities was $14.7 million for the first half of 2021 compared to net cash provided of $32.0 million for the same period of 2020, a change of $46.7 million. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/60714/000156459021039117/lxu-10q_20210630.htm About LSB Industries Headquartered in Oklahoma City, Oklahoma, LSB Industries, Inc. -- http://www.lsbindustries.com-- manufactures and sells chemical products for the agricultural, mining, and industrial markets. The Company owns and operates facilities in Cherokee, Alabama, El Dorado, Arkansas and Pryor, Oklahoma, and operates a facility for a global chemical company in Baytown, Texas. LSB's products are sold through distributors and directly to end customers throughout the United States. As of March 31, 2021, the Company had $1.05 billion in total assets, $124.32 million in total current liabilities, $463.67 million in long-term debt, $20.24 million in noncurrent operating lease liabilities, $6.33 million in other noncurrent accrued and other liabilities, $31.27 million in deferred income taxes, $282.12 million in redeemable preferred stock, $127.04 million in total stockholders' equity. * * * As reported by the TCR on July 22, 2021, S&P Global Ratings placed all of its ratings on LSB Industries--including the 'CCC+' issuer credit rating, on CreditWatch with positive implications. S&P said, "We expect to resolve the CreditWatch placement in the next few months if the company receives the necessary shareholder approval and the exchange transaction is consummated as proposed. As reported by the TCR on July 23, 2021, Moody's Investors Service placed the Caa1 corporate family rating, the Caa1-PD probability rating of default rating of LSB Industries, Inc. and the Caa1 senior secured instrument rating under review for upgrade following the company's announcement that it reached an agreement to convert its redeemable preferred shares into common stock. Moody's also upgraded the speculative grade liquidity rating to SGL-2 from SGL-3. MALLINCKRODT: Faces Revolt from Investors on Opioid Crisis Handling ------------------------------------------------------------------- Joe Brennan of The Irish Times reports that shareholders in Mallinckrodt, the Dublin-based but US-run drugmaker in the middle of a bankruptcy reorganisation, are being urged by a leading corporate advisory firm to vote against some directors as a parting rebuke over its handling of the US opioid crisis and executive pay. Mallinckrodt filed for bankruptcy in Delaware last October 2020 as the company was overwhelmed by lawsuits accusing it of deceptively marketing opioids. The company is pursuing a US court-supervised Chapter 11 reorganisation that would set up a $1.6 billion trust to resolve opioid-related claims with states, local governments and private individuals. The plan, supported by certain creditors and subject to broader votes by early September, would see unsecured bondholders take control of the company, some $1.3 billion of debt being eliminated and general unsecured creditors split $150 million in cash. Existing shareholders are set to be wiped out by the debt restructuring. Glass Lewis, an influential shareholder advisory firm on corporate governance, said it recognises Mallinckrodt's actions in recent years to respond to the opioid epidemic, with its website providing information about its role in addressing opioid abuse and misuse. Oversight role "However, question whether the board has properly exercised its regulatory oversight role in the years preceding the US government's crackdown vis-à-vis the deceptive marketing schemes of opiate manufactures," Glass Lewis said. "This concern is amplified by the relatively limited refreshment that the board has effected since such issues became a matter of global interest in 2017." As such, Glass Lewis is calling on investors to vote against the re-election of board members Martin Carroll and Kneeland Youngblood at the group's annual general meeting in Dublin next month. Both have been members of Mallinckrodt committees covering governance and compliance since the company floated in New York in 2013. Almost 500,000 people died from overdoses involving opioids, including prescription and illicit drugs, in the US in the 20 years to 2019, according to figures from the US Centres for Disease Control and Prevention. Mallinckrodt was the third opioid maker to seek Chapter 11 bankruptcy protection. "The company's legal issues, bankruptcy and loss of exchange-trading status have had a significant negative impact on shareholder value and the company's reputation," Glass Lewis said. Discontent "While it is likely that the board will be reconstituted upon the company's emergence from bankruptcy, we believe that there is sufficient grounds for shareholders to signal their discontent this year by voting against the aforementioned directors at the annual meeting." Glass Lewis has also urged shareholders to vote against the re-election of directors David Carlucci, Mr Carroll, David Norton and Anne Whitaker, all members of Mallinckrodt's human resources and compensation committee, over concerns around executive pay practices. A spokesman for Mallinckrodt declined to comment on the Glass Lewis report. The Irish Times reported last week that a stand-off between Mallinckrodt and a small group of dissident shareholders, claiming their rights are being suppressed during the debt reorganisation, is on track to be aired before the High Court in Dublin later this year. New York-based asset-management firm Buxton Helmsley, which is leading a group of investors that own about 5.6 per cent of Mallinckrodt, has claimed that it has been thwarted by Mallinckrodt and the Delaware court as it sought a seat at the debt negotiation table. Mallinckrodt successfully filed an objection in late 2020 against the formation of an official committee for existing shareholders, and also secured an order from the Delaware court in April 2021 which effectively bans Buxton Helmsley, led by Alexander Parker, from taking a number of actions. These include using its shares to call an extraordinary general meeting, put forward resolutions at the upcoming agm, or taking legal action without the US court's approval. However, Mr Parker has said he plans to raise his issues before the Irish High Court when the drugmaker files for examinership to rubber-stamp the restructuring. About Mallinckrodt 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. MIDTOWN CAMPUS: Seeks Cash Collateral Access Thru Sept 15 --------------------------------------------------------- Midtown Campus Properties, LLC asks the U.S. Bankruptcy Court for the Southern District of Florida, Miami Division, for authority to use the cash collateral of Best Meridian International Insurance Company, the Senior DIP Lender, and the U.S. Bank, as indenture trustee and Prepetition Lender, on a further interim basis through September 15, 2021, in accordance with the budget. The Debtor also seeks permission to provide adequate protection to the Lenders. The Debtor is party to a Loan Agreement with Florida Development Finance Corporation dated January 31, 2019. Amounts due and owing under the Loan Agreement are payable to U.S. Bank, as the indenture trustee under the Trust Indenture dated January 31, 2019, between U.S. Bank and the Issuer. Florida Development Finance issued Student Housing Revenue Bonds in the aggregate amount of $77,820,000 to finance and/or refinance the Debtor's student housing project in Gainesville, Florida. The Debtor's obligations under the Bonds, the Loan Agreement, and the Indenture are secured by the Leasehold Mortgage, Assignment of Leases, Security Agreement and Fixture Filing dated as of January 1, 2019, given by the Debtor, as mortgagor, to U.S. Bank, as mortgagee, whereby the U.S. Bank asserts that it holds a valid, enforceable, binding, non-avoidable and perfected lien on assets of the Debtor as described in the Prepetition Loan Documents, which Prepetition Liens the U.S. Bank asserts are senior to all claims and interests in the Prepetition Collateral, and junior only to the DIP Priming Liens granted under the Priming DIP Order and the Junior DIP Liens attaching to the Junior DIP Lender Excepted Collateral. For the avoidance of doubt, the DIP Priming Liens are subordinate to and subject to the Carve-Out and the Fee Reserve for Professional Expenses and the Professional Expense Escrow. The Debtor, together with its management company Asset Campus USA, LLC, have prepared a new expense Budget for the period of August 1, 2021 through September 15, 2021, which provide for the payment of items (i) associated with the operation, maintenance and repair of the Project including, without limitation, for such items as marketing, cable, television, utilities, and repairs and maintenance and other general administrative expenses, and (ii) U.S. Trustee Fees, provided that: (a) The Debtor's aggregate expenditures of Cash Collateral will be within 20% of the aggregate monthly gross disbursements identified in the Budget, measured as of the last business day of each month, which Budget may be updated by the Debtor and Asset Campus during the Fifth Cash Collateral Period as appropriate and needed in connection with the management of the Project, subject in all respects to approval by the Senior DIP Lender and the Prepetition Lender, or Order of the Court; provided further that in the event the variance is greater than 10%, the Debtor will disclose to the Prepetition Lender the cause of the variance and consult the Prepetition Lender about remedying the variance and amending the Budget if necessary; (b) All expenditures of Cash Collateral will be only to the extent required to make ordinary, necessary, and reasonable payments with respect to the Project and/or for the category of items set forth in the Budget; and (c) None of the Cash Collateral will be used to pay professionals retained by the Debtor. As adequate protection for the Debtor's use of cash collateral, the Prepetition Lender is being granted valid, binding, enforceable, and perfected replacement liens upon and security interests in all assets of the Debtor. Additionally, the Prepetition Lender will be granted an allowed superpriority administrative expense claim in the Bankruptcy Case. A copy of the Motion and the Debtor's budget for August and September is available for free at https://bit.ly/3C4Thwa from PacerMonitor.com. The Debtor projects $587,021 in total gross potential rent and $220,297 in total operating expenses for August. About Midtown Campus Properties, LLC Midtown Campus Properties, LLC, is a single asset real estate that owns the Midtown Apartments. The Midtown Apartments is a 310-unit student housing apartment complex currently under construction at 104 NW 17th St in Gainesville, Florida, just across from the University of Florida. It consists of a six-story main building, a parking garage for resident and public use, and commercial retail space. Each unit includes a full-size kitchen, carpet, tile, and hardwood floors and be fully furnished. It is located near several Midtown bars and restaurants frequented by students, and just a couple of minutes' walk from Ben Hill Griffin Stadium. Midtown Campus Properties sought Chapter 11 protection (Bankr. S.D. Fla. Case No. 20-15173) on May 8, 2020. The Debtor was estimated to have $50 million to $100 million in assets and liabilities as of the bankruptcy filing. The Honorable Robert A. Mark is the presiding judge. The Debtor tapped Genovese Joblove & Battista, P.A., as bankruptcy counsel; and The Bosch Group, Inc., as construction consultants. No creditors' committee has been appointed in this case. In addition, no trustee or examiner has been appointed. MINORITY CONTRACTING: Case Summary & 15 Unsecured Creditors ----------------------------------------------------------- Debtor: Minority Contracting Service, LLC 863 Springfield Hwy Goodlettsville, TN 37072 Chapter 11 Petition Date: July 31, 2021 Court: United States Bankruptcy Court Middle District of Tennessee Case No.: 21-02355 Judge: Hon. Randal S. Mashburn Debtor's Counsel: Steven L. Lefkovitz, Esq. LEFKOVITZ & LEFKOVITZ 618 Church St., #410 Nashville, TN 37219 Tel: 615-256-8300 Fax: 615-255-4516 E-mail: slefkovitz@lefkovitz.com Total Assets: $233,625 Total Liabilities: $1,535,200 The petition was signed by Todd Jordan Mason as chief manager. A full-text copy of the petition containing, among other items, a list of the Debtor's 15 unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/SXKG6BQ/Minority_Contracting_Service_LLC__tnmbke-21-02355__0001.0.pdf?mcid=tGE4TAMA MONOGRAM FOOD: S&P Assigns 'B' Rating, Outlook Stable ----------------------------------------------------- S&P Global Ratings assigned its 'B' issuer credit rating to the co-manufacturer and private-label producer Monogram Food Solutions LLC and its 'B' issue rating to the proposed $535 million senior secured first-lien credit facility. The recovery rating is '3', reflecting its expectation for meaningful (50%-70%; rounded estimate: 60%) recovery in the event of default. The stable outlook reflects S&P's expectation that Monogram will continue to profitably add new business and modestly expand adjusted EBITDA margins such that it sustains S&P Global Ratings-adjusted leverage between 5.5x-6.0x over the next year. PPC Investment Partners L.P. and co-investors will acquire a controlling stake in Memphis-based Monogram. To partially finance the purchase, refinance the existing debt capital structure, and provide funds for ongoing business needs, the company has launched a $100 million five-year revolving credit facility and $435 million seven-year term loan B facility. S&P said, "We expect Monogram will demonstrate aggressive financial policies under the control of PPC. S&P Global Ratings expects Monogram's credit ratios will remain highly leveraged, including adjusted debt to EBITDA above 5x. We estimate that pro forma adjusted leverage at close is about 6.2x. Moreover, financial sponsors typically have relatively short investment time horizons and use significant amounts of debt to maximize returns through leveraged merger and acquisition (M&A) activity and distributions. We believe under PPC influence that Monogram will prioritize M&A activity." Monogram has a narrow business focus and is concentrated with less than a dozen financially solid customers. Monogram has an outsized presence in jerky, bacon, and corndogs (collectively, almost 45% of sales). It's possible these solidly growing, on-trend categories could stagnate if consumer preferences change, potentially due to perceived health factors. The company is primarily a co-manufacturer and private-label producer of protein products, snacks and appetizers for large, financially solid packaged food, quick service/fast casual restaurant, and retail grocery customers. S&P believes the company has a clear history with respect to product recalls, contributing to its ability to win new business. It's fairly concentrated customer base--the top 10 of which account for over 70% of sales and the top 3 almost one-third--has significant bargaining power in the supply chain; their pricing and product portfolio decisions can have a significant impact on outsourced manufacturers such as Monogram. The company participates primarily in smaller niche categories, which reduces, but does not eliminate, the risk of packaged food customers insourcing the business, especially if these categories continue to grow. S&P is aware of one instance where a customer insourced its business from Monogram, though it believes the negative impact on profitability was modest. The company is a leader in some of its niche categories, including corndogs, but has small overall market shares when compared to the broader respective categories (mid-to-high-single-digit share), primarily competing with national and store brands that it does not produce. The company's profit margins are in the lower half of our industry peer set, though the negative effects of probable input cost volatility is minimized because of contractual pass-through arrangements with customers. Monogram's management team has expanded its previously weak adjusted EBITDA margin considerably over the last 12 to 18 months, though it's in the lower half of what we typically see for outsourced manufacturers. S&P said, "We believe at least part of the improvement resulted from the successful turnaround of several acquisitions--which were known underperformers when purchased between 2009 and 2016--and the ramp up of capital expenditures (capex) that increased automation and enabled the company to win significant new business in expanding categories. Sales growth was solid in 2019 prior to the onset of the pandemic, though much of Monogram's margin expansion materialized after the quarter ended June 30, 2020, which can be attributed to its good execution in on-trend categories and an increase in higher margin private-label business. Results through June 30, 2021, demonstrate continued sales and adjusted EBITDA strengthening; however, we cannot rule out the possibility of some retrenchment should the economy continue to reopen and consumers increase consumption of food away from home. We believe about 80% of sales are generated in retail grocery, with only 20% in the food away from home segment." Profit margins in the sector are modest, though the risk of earnings volatility due to expected input cost increases should be limited because of contractual pass-through arrangements. S&P believes customer contracts covering around 80% of Monogram's sales provide meaningful input cost protection (via true-up, banded, and cost-plus mechanisms) on key ingredients such as batter, pork, vegetables, cheese, poultry, and beef. Monogram is more exposed to cost volatility on its small portfolio of owned brands, which account for less than 15% of sales. S&P said, "We assume Monogram will be able to successfully manage potential private-label market share growth, particularly with respect to its co-manufacturing business. Management expects robust private-label expansion (despite its recently subdued store brand growth), ahead of growth estimates for co-manufactured products. We believe private-label expansion is likely in an increasingly inflationary environment. We assume Monogram has been able to manage potential private-label channel conflicts with its packaged food customers (which is the company's largest customer vertical), in part because the higher manufacturing throughput enables it to reduce unit costs, and because packaged food companies have recognized store brand competition is here to stay." The company will continue to expand its manufacturing and distribution footprint. It's likely Monogram will continue to grow its footprint both organically and through select acquisitions, the latter demonstrated by its June 2021 acquisition of supplier Quality Food Products (QFP). Monogram has capacity expansion plans to take advantage of continued solid growth opportunities driven in part by client demand, which will result in only modestly positive free operating cash flow (FOCF) over the next 12 to 18 months. Organic credit ratio improvement could be delayed if the company is not able to profitably ramp up the phase one expansion of its Medford facility, which management believes will reach over 50% utilization shortly after opening. S&P said, "Although not included in our forecast, it's possible Monogram could continue to build out its footprint, even after completion of its two planned expansions given its growth focus and demand outlook. The company expects mid- to high-single-digit topline growth due to private-label share gains and increased use of co-manufacturing by packaged food companies. "The stable outlook reflects our expectation that Monogram will continue to profitably add new business and modestly expand adjusted EBITDA margins such that it sustains adjusted leverage between 5.5x-6.0x over the next 12 months. We expect about $5 million to $10 million FOCF over the next year (about $50 million excluding expansion capex)." S&P could lower the rating over the next year if adjusted leverage approaches 7x, which could occur if: -- The company loses significant business due to customers bringing manufacturing back in house. -- Its customers demand lower pricing, possibly due to escalating competition in an inflationary environment. -- It experiences delays in completing facilities expansion or fails to fill new capacity due to lower than expected demand. -- The reopening of the U.S. economy accelerates significantly, causing a material decline in demand for products at retail grocery, including Monogram's niche protein products. -- Financial policy becomes more aggressive, potentially due to additional debt-financed expansion or acquisition activity. Although unlikely over the next 12 months, S&P could raise its ratings if: -- Adjusted EBITDA continues to improve and S&P believes that the company will adopt less-aggressive financial policies, including sustaining leverage below 5x. This would include our strong belief that PPC will not direct Monogram to pursue debt-financed dividends or acquisitions that would lead to a meaningful deterioration of credit ratios. NASCAR HOLDINGS: S&P Alters Outlook to Positive, Affirms 'BB+' ICR ------------------------------------------------------------------ S&P Global Ratings revised its outlook on NASCAR Holdings LLC to positive from negative because it now expects leverage will decline below its 3.75x upgrade threshold over the next year as the company's revenue continues to recover from the pandemic. At the same time, S&P affirmed the 'BB' issuer credit rating on NASCAR. S&P said, "We also raised the issue-level rating on the company's senior secured debt to 'BB+' from 'BB', reflecting the recent $81.5 million voluntary term loan repayment in the first quarter of 2021. "The positive outlook reflects our expectation for an improvement in live attendance, sponsorships, and advertising-related revenue that should result in leverage of high-3x in 2021 and low-3x in 2022, as well as our belief that NASCAR intends to operate with a lower level of leverage over time. "The outlook revision reflects the anticipated leverage reduction in 2021 and 2022, driven by a recovery in live attendance, sponsorships, and advertising-related revenues. Our updated base case assumes that 2021 league revenue and track and event-related revenue will recover to 60%-70% of 2019 levels on a pro forma basis incorporating the NASCAR and International Speedway Corp. (ISC) merger. League revenues are generated from national and official status sponsorships, event sanctioning, and licensing fees using the leagues' intellectual property. These revenues were mostly resilient in 2020 and will gradually recover in 2021 based on increasing sponsorship demand. Track and event-related revenue, which are derived from ticketing, food and beverage sales, sponsorships at the track-level, and some advertising demand, are currently rebounding and we expect they will recover substantially. NASCAR expects its tracks to resume full attendance capacity for the remainder of 2021, resulting in full-year attendance of perhaps 50% or higher of 2019 levels. While the uneven pace of the economic recovery and high unemployment rates could eventually cause admissions recovery to plateau within the next few years, we believe that could be offset by pent-up demand for leisure activities. Our base case for 2022 incorporates a lingering impact from social-distancing measures and the economic downturn that results in slightly less than full recovery of admissions revenue compared to 2019 levels. "We believe NASCAR intends to operate with lower levels of leverage over time. We believe NASCAR plans to reduce leverage and maintain it at a lower level over time. Our understanding is that the controlling France family historically had a financial policy of operating NASCAR and International Speedway Corp. with low leverage. Our measure of ISC's adjusted net leverage prior to its take-private transaction by NASCAR was less than 1x. While opportunities might emerge from time to time that could increase leverage, such as the 2019 take-private transaction involving ISC, we believe NASCAR would be motivated to reduce leverage subsequently. We view NASCAR's recent voluntary debt repayment as evidence of its financial posture. We also believe there are few large-scale acquisition opportunities available, such that any potential acquisitions would be unlikely to significantly increase leverage above 3.75x." NASCAR's multiyear broadcasting contract helps provide revenue stability. Media rights revenues will likely account for more than 65% of total revenue in 2021. NASCAR has a 10-year broadcast media-rights agreement for three national touring series with NBC Sports Group and Fox Sports Media Group through the 2024 season. The agreement provides NASCAR high-margin contractual revenue with annual price escalators. Broadcasting-related media-rights revenue mitigated declines from other revenue channels in 2020 and will continue to be a source of revenue stability as long as NASCAR delivers full race schedules. S&P understands that even if there is some variability in the timing of races during the year, broadcasting revenue is not affected as long as the full race schedule is delivered. Even if new COVID variants emerge and hamper sports activity, S&P believes NASCAR could deliver a full race schedule since motorsports might be more conducive to social distancing than some other sports that require closer physical contact between athletes. NASCAR was the first among major sports to resume competitions in 2020 (restarting in May), showing their ability to safely deliver races. Sports programming remains the glue holding the linear TV bundle together. Sports programming continues to be a key must-have genre for television. Sports generates higher audience ratings and sees smaller declines than other genres like scripted drama and comedy that face growing competition from similar content on streaming platforms. S&P said, "As a result, we believe the broadcast networks will continue to pay premiums for live sports. NASCAR in particular is well-positioned as audience ratings for its races were essentially flat in 2020 compared to 2019. We believe this will benefit NASCAR in the next round of negotiations with their broadcast partners. NBC will also be moving some NASCAR programming to the USA Network as it shuts down the NBCSN sports network by the end of 2021, a move which will increase NASCAR's addressable television audience. Nonetheless, NASCAR's television ratings are down significantly since it was last awarded its media-rights contract in 2013." For this reason, while it is almost certain the company will be able to renegotiate another long-term broadcasting deal, the dollar amounts and terms of a future contract will depend on how the company is able to manage interest in the sport to maintain viewership and how demand for sports among media broadcasters changes as consumers continue to move from linear television to streaming services. How NASCAR decides to allocate its digital rights will likely be a significant factor in its next contract negotiations with the broadcast networks. The NASCAR brand benefits from a large fan base despite variability in viewership from year to year. NASCAR owns and sanctions the NASCAR Cup Series, Xfinity Series, and Camping World Truck Series, which are the most viewed motorsports series in the U.S. NASCAR also generates a portion of its revenue from national sponsorships, marketing and advertising, and licensing fees using the league's and tracks' intellectual property. NASCAR benefits from its national official status sponsorships and licensing fees, compared to peer Speedway Motorsports LLC, which primarily generates track-level sponsorships. Environmental, social, and governance (ESG) credit factors for this credit rating change: -- Health and safety S&P said, "The positive outlook reflects our expectation for an improvement in live attendance, sponsorships, and advertising-related revenue that should result in leverage of high-3x in 2021 and low-3x in 2022, as well as our belief that NASCAR intends to operate with a lower level of leverage over time. "We could raise the rating if revenue, EBITDA, and cash flow continue to recover from the pandemic, thereby increasing the certainty that leverage will decline below 3.75x on a sustained basis. An upgrade would also be dependent on our view of the controlling France family's commitment to maintain leverage below 3.75x over the long-term, including potential cash distributions. We would also need to be more certain that maintenance capital spending and discretionary track developments would be in alignment with leverage being sustained below 3.75x. "While unlikely, we could lower the rating if we believe leverage will be sustained above 4.5x. This could result if the company is unable to deliver its full race schedule, there is a slower recovery in attendance due to consumer health and safety concerns, or sponsorship and marketing revenue is weaker than we assume." NATIONAL FINANCIAL: Seeks to Use Cash Collateral ------------------------------------------------ National Financial Holdings, Inc. asked the U.S. Bankruptcy Court for the Southern District of Florida to authorize the use of cash collateral to pay the Debtor's regular operating expenses, as well as the administrative expenses in its Chapter 11 proceedings as they become due. The Debtor is seeking to use the cash collateral according to the budget until the date of the next interim hearing. The Debtor is in the process of preparing a monthly budget and will file same with the Court in advance of the hearing on the motion. Bradham Funding, LLC and the United States Small Business Association may have interest in the Debtor's cash collateral. Bradham may have a lien on all assets of the Debtor by virtue of a Secured Revolving Promissory Note dated August 6, 2018 and a related UCC-1 statement that was duly filed. The SBA may have a lien on the Debtor's cash collateral by virtue of a UCC-1 financing statement filed in July 2020. The SBA secured collateral included all tangible and intangible personal property of the Debtor. The Debtor proposed to grant a replacement lien to Bradham and the SBA to the same extent as any pre-petition lien on all property set forth in the respective security agreements and related lien documents on an interim basis through and including the interim hearing of the cash collateral motion, which will occur on August 10, 2021 at 1:30 p.m. A copy of the motion is available for free at https://bit.ly/3fjTWQp from PacerMonitor.com. About National Financial Holdings, Inc. Founded in 2015 as Finova Financial, National Financial Holdings, Inc. operates a vehicle title loan financing company in Palm Beach Gardens, Florida. The company filed a Chapter 11 petition (Bankr. S.D. Fla. Case No. 21-16989) on July 17, 2021. On the Petition Date, the Debtor estimated up to $50,000 in assets and $1,000,000 to $10,000,000 in liabilities. Derek Acree, chief legal officer, signed the petition. Judge Erik P. Kimball was assigned to the case before Judge Mindy A. Mora took over. Kelley, Fulton & Kaplan, P.L. serves as the Debtor's counsel. NAVICURE INC: S&P Affirms 'B-' ICR on Patientco Acquisition ----------------------------------------------------------- S&P Global Ratings affirmed its 'B-' issuer credit rating and issue-level ratings on U.S. software as a service (SaaS)-based medical claims management and patient payment solutions provider Navicure Inc.'s (d/b/a Waystar) first- and second-lien debt, including the incremental add-ons. S&P's recovery rating on the first-lien debt remains '3'. However, it revised its estimated recovery on the first-lien debt to a rounded estimate of 60% from 65%, which reflects the small decline in recovery prospects due to the addition of the new accounts receivable (AR) securitization program. The stable outlook reflects the company's high leverage and aggressive growth strategy, but also recognizes its good competitive position in a favorable business niche, solid track record of successful acquisition integration, and strong free cash flow. Waystar is raising additional debt to help finance its pending acquisition of Patientco Holdings Inc. in excess of $450 million. The acquisition of Patientco soon after the leveraging acquisition of eSolutions is consistent with its historically aggressive growth strategy. S&P said, "We expect this pattern to continue. The rating affirmation and stable outlook reflect our view that the company will remain in an aggressive growth mode and that leverage, net of a good history of integration, will remain high at above 10x in 2021 and 2022. We expect deleveraging to be limited because we believe Waystar will focus on growth, through additional acquisitions. While we expect Patientco to provide little additional EBITDA for several years, we believe the company generates sufficient EBITDA, and cash flow to absorb the higher interest and amortization expenses." With providers seeking ways to optimize cash collections and with patient's out-of-pocket costs rising, Patientco should fill an important niche and strengthen Waystar's ability to collect payments from patients. Patientco provides patient communications, engagement, and payments platform, which provides services such as estimates, financial education, payment plans, and counseling as well as collections. The company is consumer-facing, increasing transparency and using multiple channels to provide consumer-friendly options for paying medical bills, assisting providers in the collection of these harder-to-collect portions of their revenue. S&P said, "We expect annual organic revenue growth of 8%-11%. This growth reflects benefits from industry tailwinds and the value Waystar provides customers, despite challenges from larger competitors. We expect such organic growth with relative revenue stability and predictability in its subscription-based SaaS model. We believe organic growth is supported by good bookings, aided by strengthening cross-selling opportunities. Customer concentration is low, with the top 10 contributing less than 10% of annual revenue. We do not expect much turnover in the customer base due to high switching costs related to significant near-term disruptions from such transitions. Waystar's value to its customer base of health care systems and other providers as an outsourced revenue cycle management(RCM) solution helps improve revenue yields, generate efficiencies, and lower costs. "We expect EBITDA margins to erode slightly due to the high valuation multiple paid for Patientco, which by itself does not generate meaningful EBITDA.We expect EBITDA margin to decline slightly to the low-30% area in 2021, aided by the full-year impact of earlier acquisitions, synergies from small tuck-in acquisitions, the roll-off of integration costs and lower research and development expenses from the transition of all acquired platforms to a single platform. However, we expect margins to remain flat as the company continues to acquire businesses at very high valuation multiples. We expect Waystar to maintain adequate liquidity, sufficient to cover its interest payments and annual amortization. We estimate free cash flow of $45 million to $50 million in 2021, which takes into account EBITDA, additional interest expense, minimal working capital usage, and capital expenditure (capex) requirements. "The stable outlook reflects our expectations that, despite EBITDA growth and steady cash flow generation, the company's aggressive growth will keep it very highly leveraged, similar to rated peers. Moreover, the rating reflects the aggressive financial policies and objectives of the financial sponsor, which does not include debt reduction. "We could lower the ratings if Waystar's growth far underperforms our base case. We believe the most likely factors that could hurt its bookings or ability to raise prices are focused around competitive forces. We would need to see a sustainable erosion of EBITDA margin of at least 300 basis points (bps), which we believe could result in leverage above 11.5x and nearly zero free cash flow. Another path to a lower rating includes large debt-financed acquisitions or dividend recapitalization that meaningfully raises interest payments and erases cash flow. "We could raise the rating if Waystar increases bookings and prices higher than what we include in our base case, and that we believe it is committed to maintaining adjusted leverage below 8x and sustainably generate free cash flow to debt above 3%." NAVIOS MARITIME: Starts Talks With Bondholders to Address Debt -------------------------------------------------------------- Allison McNeely of Bloomberg News, citing people with knowledge of the matter, reports that Navios Maritime Holdings Inc., the shipping company, has started negotiating with bondholders about giving it more time to repay debt that starts maturing as soon as January. The company, which transports iron ore, coal and grain in a fleet of almost 40 vessels, is being advised by Fried, Frank, Harris, Shriver & Jacobson, while some of its note holders are organized with Akin Gump Strauss Hauer & Feld and PJT Partners Inc., the people said, who asked not to be identified discussing confidential matters. About Navios Maritime Headquartered in Pireas, Greece, Navios Maritime Holdings, Inc. offers maritime freight transportation services. NEUROPROTEXEON: Court Tosses Ashby & Geddes' Bankruptcy Fee Appeal ------------------------------------------------------------------ Law360 reports that a Delaware federal judge denied Ashby & Geddes PA's bid to force a lender to fund a roughly $980,000 carve-out reserve to pay professional fees in the now-closed bankruptcy case of life sciences company NeuroproteXeon Inc. In a Thursday, July 29, 2021, memorandum opinion, U.S. District Court Judge Maryellen Noreika said that she does not have jurisdiction to decide a cross-appeal mounted by Ashby & Geddes, former counsel to NeuroproteXeon in its Delaware bankruptcy case, related to a dispute over whether the lender should have been required to fund the carve-out for professional fees. The judge rejected Ashby & Geddes' contention. In a cross-appeal related to a dispute with JMB Capital Partners Lending, LLC before the U.S. District Court for the District of Delaware, A&G challenges the Bankruptcy Court's failure to direct JMB to fund a carve-out for professional fees under a debtor-in-possession financing order and its failure to award A&G its fees and costs incurred in connection with its request for relief ("Fees and Costs Question"). JMB has moved to dismiss the appeal on the basis that there is no final order or judgment and that the District Court lacks jurisdiction. "The crux of A&G's legal position is that, to the extent that a court grants in the future any form of relief requested by JMB, such that JMB recovers on its collateral and takes ownership of the Debtors' assets (either in its own name or through an affiliate, including Shady Bird), JMB must be required to fund the Carve-Out in the Carve-Out Reserve Amount. Assuming arguendo that the Court is in agreement with A&G's position, the Court must still disagree that the Bankruptcy Court, as A&G asserts, "rejected" this argument or otherwise misinterpreted its Final DIP Order. To the contrary, as the Auction was set aside and the assets abandoned, it does not appear from the record that JMB in fact has ever recovered its collateral or taken ownership of the Debtors' assets. Certainly, neither party makes this assertion in the briefing. At the time of this Cross-Appeal, at least, the Bankruptcy Court had not been called upon to make that determination and has issued no order as to the issues raised in the Cross-Appeal that could be considered final even under the Third Circuit's pragmatic, flexible approach to the finality of bankruptcy court orders," the District Court said in its ruling. A copy of the Opinion is available at PacerMonitor.com at https://bit.ly/3xkBTzM The case is JMB CAPITAL PARTNERS LENDING, LLC, Appellant/Cross-Appellee, v. NEUROPROTEXEON, INC., et al., Appellee/Cross-Appellant, (D. Del., C.A. No. 20-1210 (MN)). The Chapter 7 case is In re NEUROPROTEXEON, INC., et al. (Bankr. D. Del. Case No. 19-12676 (MFW)). Frederick B. Rosner, Scott J. Leonhardt, Jason A. Gibson, THE ROSNER LAW GROUP LLC, Wilmington, DE; Robert M Hirsh, Rachel Maimin, LOWENSTEIN SANDLER LLP, New York, NY – Counsel to JMB Capital Partners Lending, LLC. William P. Bowden, Gregory A. Taylor, Stacy L. Newman, Katharina Earle, ASHBY & GEDDES, P.A., Wilmington, DE – Former Counsel to the Debtors and Debtors-in-Possession. About NeuroproteXeon, Inc. NeuroproteXeon, Inc. and its subsidiaries -- https://www.neuroprotexeon.com -- are generally engaged in the development, commercialization and marketing of pharmaceutical agents, medical devices and/or other life sciences technologies. Since 2018, the Group has concentrated on developing, testing and obtaining worldwide regulatory approval of a product consisting of pharmaceutical grade xenon gas for inhalation, which has been trademarked under the name XENEXTM, and a propriety device which delivers a combination of XENEXTM and oxygen to the respiratory system of persons who experience Post-Cardiac Arrest Syndrome. The companies each filed Chapter 11 petitions (Bankr. D. Del. Lead Case No. 19-12676) on December 16, 2019. Ashby & Geddes, P.A., served as the Debtors' general bankruptcy counsel; Brown Rudnick, LLP, is the Debtors' special counsel. Emerald Capital Advisors, Corp., is the Debtors' financial advisor; Lincoln Partners Advisors LLC was the Debtors' investment banker. Omni Agent Solutions, Inc., served as the Debtors' claims & noticing agent. * * * NeuroproteXeon's case was converted to a Chapter 7 liquidation on August 27, 2020. NINE POINT ENERGY: Bankruptcy Sale Withstands $150 Mil. Appeal -------------------------------------------------------------- Andrew Scurria of The Wall Street Journal reports that a federal judge said Friday that Nine Point Energy Holdings Inc.'s planned bankruptcy sale can proceed without honoring a pipeline company's claim. Goldman Sachs Group Inc. and other Nine Point lenders can buy the company out of bankruptcy free of a $150 million claim asserted by pipeline operator Caliber Midstream Partners LP, according to the ruling by Judge Richard Andrews of the U.S. District Court in Wilmington, Del. Caliber Measurement Services LLC, et al., took before the District Court an appeal from the Bankruptcy Court's June 29, 2021 order approving the sale of substantially all assets of Nine Point Energy, et al. Caliber argued that it was entitled to a Statutory Well Lien to secure future performance revenues under the RCA in the amount of $150 million. "The bankruptcy court correctly determined that Caliber is not entitled to a statutory well lien for any services or materials that Caliber has not yet provided under the MSAs. The statutory language makes clear that such liens only attach to "the amount due" for materials or services that already have been furnished," the District Court ruled. A copy of the Memorandum Opinion is available at PacerMonitor.com at https://bit.ly/3jkYasp 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. NINE POINT:Court Allows Sale After $150 Mil. Lien of Caliber Denied ------------------------------------------------------------------- Daniel Gill of Bloomberg Law reports that Nine Point Energy Holdings Inc. defeated a challenge to its planned bankruptcy sale after a federal district court held that Caliber Midstream Partners LP doesn't have a $150 million lien on the assets to be sold. The July 30, 2021 decision affirms a bankruptcy court ruling that Nine Point's former oil and gas gathering contract with Caliber didn't give rise to the lien under North Dakota state law. Nine Point's proposed sale to its lenders, which include Goldman Sachs Group Inc. and Prudential Financial Inc., now can go forward after having been temporarily hung up on Caliber's assertion of the lien. 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. NORTHWEST TERRITORIAL MINT: Ex-CEO, President Convicted of Fraud ---------------------------------------------------------------- The United States Attorneys Office announced that the former President & CEO of Northwest Territorial Mint, a now-bankrupt company dealing in precious metals, was convicted July 30, 2021, in U.S. District Court in Seattle of 14 federal felonies resulting from a Ponzi-like scheme that defrauded customers of millions of dollars. Acting U.S. Attorney Tessa M. Gorman said that after more than three weeks of testimony and evidence, the jury deliberated about two days before convicting Bernard Ross Hansen, 60, aka Ross B. Hansen of multiple counts of wire and mail fraud. The jury also convicted Vault Manager Diane Renee Erdmann, 48, of 13 counts of wire fraud and mail fraud following the trial. Sentencing for both Mr. Hansen and Ms. Erdmann is scheduled for October 29, 2021. Northwest Territorial Mint (NWTM) operated both a custom business that involved the manufacturing of medallions and other awards, and a bullion business that involved the selling, buying, exchanging, storing, and leasing of gold, silver, and other precious metals. The company had offices in Federal Way and Auburn, Washington, but declared bankruptcy on April 1, 2016. According to records in the case and testimony at trial, Hansen and Erdmann defrauded NWTM customers in a variety of ways. The evidence at trial showed that Hansen and Erdmann lied about shipping times for bullion, used customer money to expand the business to other states, and used customer money to pay their own personal expenses. In this way the company lacked enough assets to fulfill customer orders and used new customer money to pay off older customers in a Ponzi-like scheme. In total, over 2500 customers paid for orders, or made bullion sales or exchanges, that were either never fulfilled or never refunded. The total loss to these customers was more than $25,000,000. In closing arguments, Assistant United States Attorney Benjamin Diggs told the jury “They tried to make this company look solid – like the metals they sold – but in fact it was a house of cards.” In addition to the bullion customer fraud, the evidence at trial demonstrated that Hansen and Erdmann defrauded customers who paid NWTM to safely and securely store bullion in the NWTM vaults. Evidence and testimony at trial showed that Hansen and Erdmann used this bullion that was supposed to be in secure storage to fulfill other orders. In April 2016, the NWTM vaults were inventoried and all or part of the stored bullion for more than 50 customers was missing. The missing bullion was worth more than $4.9 million. Each of the counts of conviction are punishable by up to 20 years in prison. U.S. District Judge Richard A. Jones will determine the appropriate sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The case was investigated by the FBI. The case was prosecuted by Assistant United States Attorneys Brian Werner and Benjamin Diggs. About Northwest Territorial Northwest Territorial Mint LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Wash. Case No. 16-11767) on April 1, 2016. The petition was signed by Ross B. Hansen, member. The Debtor estimated both assets and liabilities in the range of $10 million to $50 million. The case is assigned to Judge Christopher M. Alston. The Debtor was represented by J. Todd Tracy, Esq., at The Tracy Law Group PLLC. The official committee of unsecured creditors, formed on April 15, 2016, retained Miller Nash Graham & Dunn LLP as its bankruptcy counsel, and Lorraine Barrick LLC as financial advisor. On April 11, 2016, Mark Calvert was appointed as Chapter 11 trustee for the Debtor. Upon his appointment, the Trustee took control over the business operations of the Debtor and initiated his investigation of the financial affairs of the bankruptcy estate. K&L GATES LLP is counsel to the Trustee. JAMES G. MURPHY INC. is auctioneer for the Trustee. NORWICH DIOCESE: Seeks Access to Cash to Pay for Health Insurance ----------------------------------------------------------------- The Norwich Roman Catholic Diocesan Corporation, a/k/a, the Roman Catholic Diocese of Norwich, asked the U.S. Bankruptcy Court for the District of Connecticut to approve the stipulation the Debtor entered into with People's United Bank, National Association (PUB) related to the Debtor's consensual use of cash in certain deposit accounts located at PUB. The deposit accounts include one that is designated as Medical Account, which is used for paying insurance premiums for health care coverage for non-debtor employees and clergy along with the Debtor's employees and clergy. PUB and the Debtor agreed that the Medical Account could be utilized to pay the Health Insurance Premiums due on July 30, 2021, without the need for the granting of the Motion or approval of the Cash Collateral Stipulation, so long as the Motion and Cash Collateral Stipulation were filed by July 29. PUB asserts that it holds a first priority security interest in and right to set off the Deposit Accounts, including the Medical Account. The Debtor disputes these assertions. The Cash Collateral Stipulation provides for adequate protection to PUB to the extent of the validity, priority and extent of its liens on the Deposit Accounts as of the Petition Date and the granting of any such protections subject to Debtor's reservation of rights and remedies to contest. Without the use of the Medical Account, the Debtor said the employees and clergy could be at risk of losing health care coverage. A copy of the motion is available for free at https://bit.ly/3rNjpH1from Epiq, claims agent. About The Norwich Roman Catholic Diocesan Corporation The Norwich Roman Catholic Diocesan Corporation is a nonprofit corporation that gives endowments to parishes, schools, and other organizations in the Diocese of Norwich, a Latin Church ecclesiastical territory or diocese of the Catholic Church in Connecticut and a small part of New York. The Norwich Roman Catholic Diocesan Corporation sought Chapter 11 protection (Bankr. D. Conn. 2:21-bk-20687) on July 15, 2021. The Debtor estimated $10 million to $50 million in assets against liabilities of more than $50 million. Judge James J. Tancredi oversees the case. The Debtor tapped Robinson & Cole, LLP, led by Patrick M. Birney, Esq., as its legal counsel. Epiq Corporate Restructuring, LLC is the claims and noticing agent. NORWICH DIOCESE: Stops Probe on Priest Abuses After Ch. 11 Filing ----------------------------------------------------------------- Joe Wojtas of The Day reports that the Roman Catholic Diocese of Norwich stopped its 17-month-long investigation into the sexual assault of children by its priests after filing for bankruptcy earlier this month. It appears that people who allege they were sexually abused by priests and other members of the diocese, but are barred by the statute of limitations from filing lawsuits in state court, will be able to file claims during the upcoming bankruptcy process. However, it also appears the awards to people who file claims against the diocese through the bankruptcy process will be far less than what they could have received through the judicial system. The diocese originally had asked the bankruptcy court to redact all information about its finances, debts and assets from the public court filings but reversed course during a hearing this past week as victims and their attorneys were expected to oppose the move. New London attorney Kelly Reardon, whose firm has won millions of dollars in settlements for victims of sex assaulted by diocesan priests, said bankruptcy in cases such as this is never a good thing for victims because the payments are diminished. "But I'm at least hopeful we can work through the process and the diocese will be transparent about its assets to determine the maximum amount of assets that are available to the victims," she said. She added one downside of a bankruptcy proceeding is the longer it goes on, the more of the assets go toward attorneys' fees and other bankruptcy costs. "We want to make sure this is quickly resolved so the biggest percentage possible of the assets goes to the claimants," she said. "If this drags on for years, it will be a disaster." About Norwich Diocese The Diocese of Norwich is a Latin Church ecclesiastical territory or diocese of the Catholic Church in Connecticut and a small part of New York. The Norwich Roman Catholic Diocesan Corporation sought Chapter 11 protection (Bankr. D. Conn. 2:21-bk-20687) on July 15, 2021. The Debtor estimated $10 million to $50 million in assets against liabilities of more than $50 million. The Hon. James J Tancredi is the case judge. Robinson & Cole LLP, led by Patrick M. Birney, is the Debtor's counsel. OZOP ENERGY: Designates 4,570 Shares as Series D Preferred Stock ---------------------------------------------------------------- Ozop Energy Solutions Corp. filed with the Secretary of State of the State of Nevada on July 27, 2021, an Amended and Restated Certificate of Designation of Series D Preferred Stock. Under the terms of the Series D Amendment, 4,570 shares of the Company's preferred stock will be designated as Series D Convertible Preferred Stock. The holders of the Series D Convertible Preferred Stock shall not be entitled to receive dividends. Any holder may, at any time convert any number of shares of Series D Convertible Preferred Stock held by such holder into a number of fully paid and nonassessable shares of common stock determined by multiplying the number of issued and outstanding shares of common stock of the Company on the date of conversion, by 1.5 and dividing that number by the number of shares of Series D Convertible Preferred Stock being converted. Except as provided in the Series D Amendment or as otherwise required by law, no holder of the Series D Convertible Preferred Stock shall be entitled to vote on any matter submitted to the shareholders of the Company for their vote, waiver, release or other action. The Series D Convertible Preferred Stock shall not bear any liquidation rights. About Ozop Energy Solutions Ozop Energy Solutions (http://ozopenergy.com)invents, designs, develops, manufactures, and distributes ultra-high-power chargers, inverters, and power supplies for a wide variety of applications in the defense, heavy industrial, aircraft ground support, maritime and other sectors. The Company's strategy focuses on capturing a significant share of the rapidly growing renewable energy market as a provider of assets and infrastructure needed to store energy. OZOP Energy reported a net loss of $20.48 million for the year ended Dec. 31, 2020, compared to a net loss of $571,595 for the year ended Dec. 31, 2019. As of March 31, 2021, the Company had $11.44 million in total assets, $71.72 million in total liabilities, and a total stockholders' deficit of $60.28 million. Hackensack, New Jersey-based Prager Metis CPA's LLC, the Company's auditor since 2018, issued a "going concern" qualification in its report dated April 15, 2021, citing that as of Dec. 31, 2020, the Company had an accumulated deficit of $21,793,375 and a working capital deficit of $4,604,189. In addition, the Company has generated losses since inception. These factors, among others, raise substantial doubt regarding the Company's ability to continue as a going concern. PACIFIC ENVIRONMENTAL: Seeks to Use SBA's Cash Collateral --------------------------------------------------------- Pacific Environmental Technologies, Inc. asked the U.S. Bankruptcy Court for the Central District of California to authorize the use of cash collateral of its secured creditors, the United States Small Business Administration (SBA) and Forward Financing LLC. In order to effectively reorganize, the Debtor said it must be able to use the cash collateral of its Secured Creditors to pay the reasonable expenses it incurs during the ordinary course of its business. On July 17, 2020, the Debtor obtained a $150,000 loan from the SBA. The Loan is secured by the Debtor's assets by virtue of a duly filed UCC Financing Statement. Pursuant to the terms of the SBA loan agreement, the Debtor is required to pay the SBA $731 monthly effective August 2021. As such, the Debtor proposes to start making adequate protection payments to the SBA for $731 effective August 2021, upon obtaining Court approval on the cash collateral motion. The Debtor was a party with Forward Financing, LLC with respect to the sale of the Debtor's future receivables by Forward Financing. Forward Financing's interest is secured by virtue of a duly filed UCC Financing Statement. The Debtor proposes to pay $1,500 in monthly adequate protection payments, with the first payment due within seven days from the date of the entry of the order approving the Debtor's cash collateral motion. All subsequent adequate protection payments will be paid by the 15th of every month. Employment Development Department (EDD) filed a State Tax Lien amounting to $12,419 for unpaid taxes for the fourth quarter of 2020. The Debtor is not offering any monthly adequate protection payments to EDD since EDD's claim will be provided for payment at an applicable statutory interest rate through the Debtor's Subchapter V Reorganization Plan. A copy of the motion is available for free at https://bit.ly/37cJs0Q from PacerMonitor.com. Counsel for the Debtor: Michael Jay Berger, Esq. Law Offices of Michael Jay Berger 9454 Wilshire Boulevard, 6th floor Beverly Hills, CA 90212 Telephone: (310) 271-6223 Facsimile: (310) 271-9805 Email: michael.bergerbankruptcypower.com About Pacific Environmental Technologies Pacific Environmental Technologies, Inc. -- http://www.peticleanair.com/-- offers modular, softwall, mobile, and conventional cleanrooms, as well as refrigerated storages, freezers, and solar and energy storages to pharmaceutical, aerospace and industrial companies. The company filed a petition under Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 21-16058) on July 28, 2021. On the Petition Date, the Debtor estimated $50,000 to $100,000 in assets and $1,000,000 to $10,000,000 in liabilities. The petition was signed by CEO Jon Wayne Gow. Judge Deborah J. Saltzman oversees the case. The Law Offices of Michael Jay Berger represents the Debtor as counsel. PARAGON OFFSHORE: UST Can't Force Post-Confirmation Fees -------------------------------------------------------- Steven B. Smith and Elizabeth Plowman of Herrick, Feinstein LLP wrote an article on Mondaq titled "Paragon Offshore, Plc: US Trustee Denied Quarterly Fees Based On Litigation Trust's Payments To Its Beneficiaries." The U.S. Bankruptcy Court for the District of Delaware recently denied the US Trustee's motion to compel post-confirmation quarterly fees from Paragon Offshore, plc under 28 U.S.C. Sec. 1930.1 The court described the case's facts as simple: Paragon (and some related entities) filed for Chapter 11 in early 2016. In June of 2017, its reorganization plan was approved. The plan established a litigation trust (the Paragon Litigation Trust) to pursue certain claims against third parties. The plan (and the litigation trust agreement) became effective in July of 2017, and the claims were transferred into the trust from July through September 2017 (without Paragon retaining any interest in or control over them). During that time, Paragon's distributions exceeded $623 million, and Paragon paid the US Trustee the then-applicable maximum fee for those distributions under 28 U.S.C. § 1930. In December of 2017, the litigation trust brought its claims against third parties. The case settled for $90.375 million (approved in February of 2021), and the settlement payments to the trust occurred in mid-March. The trust began distributing those payments to its beneficiaries, and the US Trustee moved to compel Paragon and the Paragon Litigation Trust to pay post-confirmation quarterly fees under Section 1930(a)(6) based on the trust's payments to its beneficiaries. The court denied the US Trustee's motion, holding that the payments from the trust to its beneficiaries were not "disbursements" under Section 1930(a)(6) because they were made for the benefit of the trust's interest holders—not the debtor (Paragon). The "ultimate payment" triggering quarterly fees occurred when Paragon transferred its third-party claims to the trust without retaining any interest or control over them. The US Trustee didn't appeal the decision (even though its deadline to do so has already passed). It will be interesting to see how broadly (or narrowly) Paragon will be applied in other cases (if at all), and whether its reasoning can be used when structuring reorganization plans or post-confirmation trust documents to limit/avoid quarterly fees due to the US Trustee. 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. PETROTEQ ENERGY: Provides Update on Mgmt. CTO Application Status ---------------------------------------------------------------- Petroteq Energy Inc. provided a bi-weekly update on the status of the Company's application for a management cease trade order which has now been filed by the Company with its principal regulator, the Ontario Securities Commission, under National Policy 12-203 - Management Cease Trade Orders ("NP 12-203"), following the Company's announcement on July 16, 2021 that it will be unable to file its quarterly report on Form 10-Q (and related certifications) for the period ended May 31, 2021 on or before July 30, 2021, as required under Canadian National Instrument 51-102 -- Continuous Disclosure Obligations. The MCTO, if granted, will not affect the ability of investors who are not insiders to trade in the securities of the Company. No decision has yet been ‎made by the Ontario Securities Commission on this application. The Company continues to work closely with its auditor to remedy the default status and file the Documents and the restatements of its Periodic Financial Statements (as such term is defined in the announcement), as soon as possible. As referenced in the announcement, the Audit Committee of Petroteq has engaged legal counsel to undertake a review of the Settlement ‎Agreement, the Note and the Security Agreement with the view to determining whether they are enforceable (and, in particular, whether the Security Agreement has properly charged the Company's ‎right, title and interest in the Oil and Gas Leases as personal property, and whether any security interests purportedly granted pursuant to the Security Agreement have been perfected under applicable ‎law), and whether the related liability should be classified as an actual or contingent liability.‎ The Company confirms that since the date of the announcement: (i) except as set out above, there has been no material change to the information set out in the announcement that has not been generally disclosed; (ii) the Company is satisfying and confirms that it intends to continue to satisfy the provisions of the alternative information guidelines under NP 12-203 and issue bi-weekly default status reports for so long as the delay in filing the Documents is continuing, each of which will be issued in the form of a press release; (iii) there has not been any other specified default by the Company under NP 12-203; (iv) the Company is not subject to any insolvency proceedings; and (v) there is no material information concerning the affairs of the Company that has not been generally disclosed. The Company also announced that it has closed the (i) equity financing of ‎17,874,996 units ‎at US$0.12 per unit for gross proceeds of US$2,144,999.92, (ii) debt financing of a US$3,000,000 ‎principal amount (including a 20% OID) convertible secured debenture and 20,833,333 ‎transferable common share purchase warrants, for the total subscription price of US$2,500,000, and (iii) debt financing of a US$120,000 ‎principal amount (including a 20% OID) convertible debenture and 833,333 ‎transferable common share purchase warrants, for the total subscription price of US$100,000, ‎previously announced on July 13, 2021. In connection with the above noted financings, the Company paid registered dealers and finders (i) an aggregate cash commission of $237,999.99, and (ii) non-transferable compensation options to purchase 5,785,415 common shares of the Company at an exercise price of US$0.12 per share for a period of twenty-four months from closing for 316,666 of the options and 48 months from closing for 5,468,749 of the options. About Petroteq Energy Inc. Petroteq -- www.Petroteq.energy -- is a clean technology company focused on the development, implementation and licensing of a patented, environmentally safe and sustainable technology for the extraction and reclamation of heavy oil and bitumen from oil sands and mineable oil deposits. Petroteq is currently focused on developing its oil sands resources at Asphalt Ridge and upgrading production capacity at its heavy oil extraction facility located near Vernal, Utah. Petroteq reported a net loss and comprehensive loss of $12.38 million for the year ended Aug. 30, 2020, compared to a net loss and comprehensive loss of $15.78 million for the year ended Aug. 31, 2019. Vancouver, British Columbia, Canada-based Hay & Watson, the Company's auditor since 2012, issued a "going concern" qualification in its report dated Dec. 15, 2020, citing that the Company has had recurring losses from operations and has a net capital deficiency, which raises substantial doubt about its ability to continue as a going concern. PIPELINE FOODS: Seeks to Hire SierraConstellation, Appoint CRO -------------------------------------------------------------- Pipeline Foods, LLC and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Delaware to employ SierraConstellation Partners, LLC and appoint Winston Mar, the firm's senior managing director, as chief restructuring officer. The firm will provide these services: a. prepare a 13-week cash flow forecast and update on a weekly basis to manage liquidity and communicate with various stakeholders, including the lenders; b. communicate with the lenders to create "runway" to identify more fulsome strategic alternatives; c. review current reduction plan and other cost line-items to identify additional cost-saving opportunities; and d. identify other strategic and restructuring alternatives that will position the Debtors for long-term sustainability. The firm's hourly rates are as follows: Partner/Principal $790 to $865 per hour Managing Director $605 to $685 per hour Senior Directors $550 to $605 per hour Directors $420 to $525 per hour Associates $235 per hour Analyst $185 per hour Prior to the petition date, the firm received from the Debtors a retainer of $575,000. The firm will also be reimbursed for out-of-pocket expenses incurred. Mr. Mar disclosed in a court filing that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Winston Mar SierraConstellation Partners, LLC 355 S Grand Ave. Suite 1450 Los Angeles, CA 90071 Tel: (213) 289-9060 Email: info@sierraconstellation.com About Pipeline Foods Pipeline Foods, LLC -- https://www.pipelinefoods.com/ -- is the first U.S.-based supply chain solutions company focused exclusively on non-GMO, organic, and regenerative food and feed. It is based in Fridley, Minn. Pipeline Foods and its affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 21-11002) on July 8, 2021. The affiliates are Pipeline Holdings, LLC, Pipeline Foods Real Estate Holding Company, LLC, Pipeline Foods, ULC, Pipeline Foods Southern Cone S.R.L., and Pipeline Foods II, LLC. Judge Karen B. Owens handles the cases. In the petition signed by CRO Winston Mar, Pipeline Foods disclosed assets of between $100 million and $500 million and liabilities of between $100 million and $500 million. The Debtors tapped Saul Ewing Arnstein & Lehr, LLP as legal counsel, Ocean Park Securities, LLC as investment banker, and SierraConstellation Partners as financial advisor. Winston Mar of SierraConstellation Partners serves as chief restructuring officer. Stretto is the claims and noticing agent and administrative agent. Bryan Cave Leighton Paisner, LLP serves as legal counsel to the Board of Directors. PIPELINE FOODS: Seeks to Hire Stretto as Administrative Agent ------------------------------------------------------------- Pipeline Foods, LLC and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Delaware to employ Stretto as administrative agent. The firm will render these services: a) Assist with, among other things, solicitation, balloting and tabulation of votes, and prepare any related reports in support of confirmation of a Chapter 11 plan; b) Prepare an official ballot certification and, if necessary, testify in support of the ballot tabulation results; c) Assist in the preparation of the Debtors' schedules of assets and liabilities and statements of financial affairs, and gather data in conjunction therewith; d) Provide a confidential data room, if requested; and e) Manage and coordinate any distributions pursuant to the plan. The firm's hourly rates are as follows: Director of Solicitation $250 per hour Solicitation Associate $230 per hour Director $210 to $250 per hour Associate/Senior Associate $70 to $200 per hour Analyst $33 to $66 per hour The firm received a retainer in the total amount of $25,000. Sheryl Betance, a senior managing director at Stretto's Corporate Restructuring, disclosed in court filings that her firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Sheryl Betance Stretto 410 Exchange, Ste. 100 Irvine, CA 92602 Telephone: (714) 716-1872 Email: Sheryl.betance@stretto.com About Pipeline Foods Pipeline Foods, LLC -- https://www.pipelinefoods.com/ -- is the first U.S.-based supply chain solutions company focused exclusively on non-GMO, organic, and regenerative food and feed. It is based in Fridley, Minn. Pipeline Foods and its affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 21-11002) on July 8, 2021. The affiliates are Pipeline Holdings, LLC, Pipeline Foods Real Estate Holding Company, LLC, Pipeline Foods, ULC, Pipeline Foods Southern Cone S.R.L., and Pipeline Foods II, LLC. Judge Karen B. Owens handles the cases. In the petition signed by CRO Winston Mar, Pipeline Foods disclosed assets of between $100 million and $500 million and liabilities of between $100 million and $500 million. The Debtors tapped Saul Ewing Arnstein & Lehr, LLP as legal counsel, Ocean Park Securities, LLC as investment banker, and SierraConstellation Partners as financial advisor. Winston Mar of SierraConstellation Partners serves as chief restructuring officer. Stretto is the claims and noticing agent and administrative agent. Bryan Cave Leighton Paisner, LLP serves as legal counsel to the Board of Directors. PIPELINE FOODS: Taps Ocean Park Securities as Investment Banker --------------------------------------------------------------- Pipeline Foods, LLC and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Delaware to employ Ocean Park Securities, LLC as investment banker. The firm will provide these services: a. develop a list of targeted buyers, specialty debt providers, strategic parties and other third parties; b. map out the strategy and approach to the potential buyers based on Debtors' and stakeholders' objectives; c. assist in preparing marketing materials including sales teaser, business presentation and data room; d. contact potential buyers to solicit interest level and market feedback; e. work with the Debtors and their stakeholders on analyzing and proposing transaction structures; f. assist in negotiating non-disclosure agreements with potential buyers; g. facilitate calls and meetings between the Debtors and potential buyers to discuss transaction parameters; h. prepare financial valuation analyses; i. manage due diligence process with interested parties in conjunction with the Debtors; j. negotiate term sheets and final transaction agreements with interested parties; k. review transaction documentation with the Debtors and their legal counsel; l. provide updates on weekly calls and meetings with the Debtors' management and stakeholders; and m. obtain debt and equity financing, including but not limited to debtor-in-possession financing, if applicable and if requested. The firm will be paid as follows: a. Monthly Fees. Commencing on July 21, 2021, whether or not a transaction or financing is proposed or consummated, the Debtors shall pay Ocean Park Securities (i) an initial advisory fee of $90,000 and (ii) $60,000 per month thereafter. b. Transaction Fee. Upon the completion by the Debtors of each transaction, the Debtors shall pay the firm a transaction fee equal to the greater of (i) 2.5 percent of the value of such transaction, which will be paid in cash and earned in full or (ii) the minimum transaction fee of $600,000. However, if there are multiple transactions and if the value on a particular transaction is less than $10 million, the minimum fee for that particular transaction only shall be $250,000. If the value on a particular transaction is less than $3 million, there shall be no minimum fee for that particular transaction. c. Financing Fee. Upon the completion by the Debtors of each financing, the Debtors shall pay the firm a new capital fee or financing fee, which will be paid in cash and earned in full, according to the following schedule: i. Debt Capital. Upon the first closing of a debt capital facility or transaction that constitutes a financing, the Debtors shall pay the firm a financing fee in cash equal to 2 percent of the total gross proceeds available to the Debtors by such financing. ii. Equity Capital. Upon the first closing of an equity capital raise or transaction that constitutes a financing, the Debtors shall pay the firm a financing fee in cash equal to 6 percent of the gross proceeds received by the Debtors. d. Flat Fee for the Debtor-in-Possession Financing Led, Agented or Provided by Cooperatieve Rabobank V.A., New York Branch. If the firm is engaged by the Debtors to assist on matters relating to the Rabobank DIP financing fee, upon a final closing or entry of a final order approving of a financing led, agented or provided by Cooperatieve Rabobank, then the Debtors shall pay the firm a cash fee of $75,000. e. Crediting of Monthly Fees. To the extent that (i) a transaction fee exceeds the $600,000 minimum fee or (ii) a financing fee exceeds the minimum fee, the firm agrees to credit 50 percent of the aggregate amount of monthly fees actually paid to the firm against the amount that such transaction fee or financing fee exceeds the minimum fees, as applicable. f. Break-Up Fee. If the Debtors receive any break-up, topping or other fee or payment from another person (including any deposit forfeited by another person and any payment as reimbursement of expenses) following or in connection with the termination, abandonment or failure to occur of any proposed transaction, alternative transaction or any settlement of, or judgment in, any litigation or dispute relating to such termination, abandonment or failure, then the Debtors shall pay the firm a break-up fee in an amount equal to 10 percent of the "break-up consideration." Ocean Park Securities will also be reimbursed for out-of-pocket expenses incurred. Bruce Comer, a managing director at Ocean Park Securities, disclosed in a court filing that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Bruce Comer Ocean Park Securities, LLC 655 Deep Valley Drive, 340-D Rolling Hills Estates, CA 90274 Tel: (310) 670-2093 Fax: (310) 670-4107 Email: bruce@oceanpk.com About Pipeline Foods Pipeline Foods, LLC -- https://www.pipelinefoods.com/ -- is the first U.S.-based supply chain solutions company focused exclusively on non-GMO, organic, and regenerative food and feed. It is based in Fridley, Minn. Pipeline Foods and its affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 21-11002) on July 8, 2021. The affiliates are Pipeline Holdings, LLC, Pipeline Foods Real Estate Holding Company, LLC, Pipeline Foods, ULC, Pipeline Foods Southern Cone S.R.L., and Pipeline Foods II, LLC. Judge Karen B. Owens handles the cases. In the petition signed by CRO Winston Mar, Pipeline Foods disclosed assets of between $100 million and $500 million and liabilities of between $100 million and $500 million. The Debtors tapped Saul Ewing Arnstein & Lehr, LLP as legal counsel, Ocean Park Securities, LLC as investment banker, and SierraConstellation Partners as financial advisor. Winston Mar of SierraConstellation Partners serves as chief restructuring officer. Stretto is the claims and noticing agent and administrative agent. Bryan Cave Leighton Paisner, LLP serves as legal counsel to the Board of Directors. PIPELINE FOODS: Taps Saul Ewing Arnstein & Lehr as Legal Counsel ---------------------------------------------------------------- Pipeline Foods, LLC and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Delaware to employ Saul Ewing Arnstein & Lehr, LLP to serve as legal counsel in their Chapter 11 cases. The firm's services include: a. providing legal advice with respect to the Debtors' powers and duties in the continued operation of their businesses and management of their properties; b. preparing and pursuing confirmation of a Chapter 11 plan and approval of a disclosure statement; c. preparing legal papers; d. appearing in court; e. providing assistance concerning any investigation of the assets, liabilities and financial condition of the Debtors that may be required under local, state or federal law or orders of the bankruptcy court or any other court of competent jurisdiction; f. providing counseling with respect to the assumption or rejection of executory contracts and leases, sales of assets and other bankruptcy-related matters; and g. performing all other legal services. The firm's hourly rates are as follows: Partners $410 to $1,050 per hour Special Counsel $395 to $850 per hour Associates $260 to $475 per hour Paraprofessionals $125 to $370 per hour Prior to the petition date, the Debtors paid the firm a retainer of $510,000. The firm will also be reimbursed for out-of-pocket expenses incurred. In accordance with Appendix B-Guidelines for reviewing fee applications filed by attorneys in larger Chapter 11 cases, Saul Ewing Arnstein & Lehr provided the following in response to the request for additional information: Question: Did you agree to any variations from, or alternatives to, your standard or customary billing arrangements for this engagement? Response: No. Question: Do any of the professionals included in this engagement vary their rate based on the geographic location of the bankruptcy case? Response: No. Question: If you represented the client in the 12 months prepetition, disclose your billing rates and material financial terms for the prepetition engagement, including any adjustments during the 12 months prepetition. If your billing rates and material financial terms have changed postpetition, explain the difference and the reasons for the difference. Response: The firm was retained by the Debtors on or about April 15, 2021 for restructuring advice. The billing rates and material terms for this prepetition restructuring engagement are the same as the rates and terms proposed in the Debtors' employment application. Question: Has your client approved your prospective budget and staffing plan, and, if so for what budget period? Response: The Debtors approved or will be approving a prospective budget and staffing plan for the firm's engagement for the post-petition period, as appropriate. In accordance with the U.S. Trustee Guidelines, the budget may be amended as necessary to reflect changed or unanticipated developments. Monique DiSabatino, Esq., a partner at Saul Ewing Arnstein & Lehr, disclosed in a court filing that her firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Monique B. DiSabatino, Esq. Mark Minuti, Esq. Saul Ewing Arnstein & Lehr LLP 1201 N. Market Street, Suite 2300 Wilmington, DE 19801 Telephone: (302) 421-6800 Email: monique.disabatino@saul.com mark.minuti@saul.com About Pipeline Foods Pipeline Foods, LLC -- https://www.pipelinefoods.com/ -- is the first U.S.-based supply chain solutions company focused exclusively on non-GMO, organic, and regenerative food and feed. It is based in Fridley, Minn. Pipeline Foods and its affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 21-11002) on July 8, 2021. The affiliates are Pipeline Holdings, LLC, Pipeline Foods Real Estate Holding Company, LLC, Pipeline Foods, ULC, Pipeline Foods Southern Cone S.R.L., and Pipeline Foods II, LLC. Judge Karen B. Owens handles the cases. In the petition signed by CRO Winston Mar, Pipeline Foods disclosed assets of between $100 million and $500 million and liabilities of between $100 million and $500 million. The Debtors tapped Saul Ewing Arnstein & Lehr, LLP as legal counsel, Ocean Park Securities, LLC as investment banker, and SierraConstellation Partners as financial advisor. Winston Mar of SierraConstellation Partners serves as chief restructuring officer. Stretto is the claims and noticing agent and administrative agent. Bryan Cave Leighton Paisner, LLP serves as legal counsel to the Board of Directors. PRIME ECO: Files Emergency Bid to Use Cash Collateral ----------------------------------------------------- Prime Eco Group, Inc. asks the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, for authority to use cash collateral on an emergency basis. The Debtor explains that, absent such use, it would be required to cease operations and not be able to meet its financial obligations. The Debtor is indebted to Austin Financial Services, Inc., and the Small Business Administration, who both have liens against the Debtor's cash collateral, which requires the emergency motion. The cash collateral at issue is income from the Debtor's regular business. The Debtor is requesting authorization for use of cash collateral for 14 days in the amount of $122,000. The Debtor consents to giving Austin Financial and the SBA replacement liens. A copy of the motion and the Debtor's 14-day and 30-day budgets is available at https://bit.ly/3798WfF from PacerMonitor.com. The Debtor projects $369,000 in total income and $335,101 in total expenses for the 30-day period. About Prime Eco Group, Inc. Prime Eco Group, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 21-32560) on July 30, 2021. In the petition filed by Fernando Guzman, president and chief executive officer, the Debtor disclosed up to $10 million in both assets and liabilities. The Law Office of Margaret M. McClure is the Debtor's counsel. PURDUE PHARMA: Bankruptcy Highlights Court Venue Selection Battle ----------------------------------------------------------------- Alex Wolf of Bloomberg Law reports that Purdue Pharma LP's seeming ability to handpick its bankruptcy case judge has renewed discussions over a fight to stop large companies from forum shopping. The issue recently has become harder to ignore, as Purdue, the National Rifle Association, the Boy Scouts of America, and other large organizations maneuver to get the court—and the judge—that they believe will most benefit them, without regard to their base of operations. A recently introduced House bill (H.R. 4193) would require Chapter 11 proceedings to take place at the location of the debtor's principal place of business or main assets. "The bankruptcy system is supposed to work for everyone, but in many cases it works only for the powerful," House Judiciary Committee Chairman Jerrold Nadler (D-N.Y.) said during a July 28 hearing on corporate abuse of bankruptcy law. "And too often it works best for big corporations and the very wealthy who have not even filed for bankruptcy." Judges' predilections and where proceedings are held can have large ramifications for bankruptcy plan payouts. Once largely considered to be an esoteric legal strategy affecting deep-pocket creditors, the forum-shopping issue also has had profound effects on recent cases with large bases of working- and middle-class claimants, such as the Boy Scouts of America. Three bankruptcy judges out of 375 heard 57% of all large public company Chapter 11 cases in 2020, according to David Lieberman of Webster, Chamberlain & Bean LLP. The Boy Scouts, which filed in Delaware, is based in Texas. The NRA filed for bankruptcy in Texas despite being headquartered in Virginia and incorporated in New York. "There are several high-profile cases that highlight the question in a way that's more salient to the public," said University of Chicago Law School professor Anthony Casey. Distressed companies with savvy bankruptcy lawyers are steering cases to courts known for approving certain pro-debtor requests, and with little regard for the venues’ proximity to creditors, forum shopping critics say. The process also alienates employees and consumers from the restructuring process, they say. Others defend the practice as a way to ensure predictability and a judge with the right experience. Companies benefit from having their proceedings heard in sophisticated bankruptcy jurisdictions, Casey said. Remote hearings that became pervasive during the Covid pandemic also have stirred conversations on whether court locations matter at all. Forum shopping also avoids undue influence from local politicians in situations where a case affects their constituencies, Casey said. Manufacturing Jurisdiction Nearly two decades of legislative efforts in both chambers of Congress have failed to gain much traction. Venue shopping became more pronounced after the 2008 recession pushed major companies to seek refuge in two of the busiest bankruptcy courts -- the U.S. Bankruptcy Court for the Southern District of New York, and the U.S. Bankruptcy Court for the District of Delaware. Both courts are known for efficient and predictable handling of major business reorganizations. More recently, the U.S. Bankruptcy Court for the Southern District of Texas and the U.S. Bankruptcy Court for the Eastern District of Virginia have developed similar reputations. "You can sort of manufacture jurisdiction by making sure you have an entity in the district you want to file in," McGuireWoods LLP attorney Douglas Foley said. "Big firms that file cases have some certainty as to which judge they’re going to get and what types of rulings they’re going to get." People had lots of “innocent explanations” for companies gravitating toward Delaware and Manhattan, said Lynn LoPucki, a bankruptcy scholar at UCLA School of Law. But a recent shift of major cases to venues with only one or two judges—like Richmond, Va., Houston, and White Plains, N.Y.—has changed the debate, according to LoPucki, who manages a database of large, publicly traded companies’ bankruptcies. Those judges "are giving the people who bring them the cases whatever they want," he said. White Plains Judge Stamford, Connecticut-based Purdue filed its case in the Southern District of New York’s White Plains location, ensuring that proceedings ended up with Judge Robert Drain, the only jurist at the suburban courthouse who hears corporate bankruptcies. The company filed bankruptcy just six months after changing the corporate address for one of its units to White Plains. Purdue could have filed Chapter 11 in Connecticut, or even Manhattan, part of the same district as White Plains and featuring a much larger bench of experienced judges. The company said in a statement that its White Plains entity, Purdue Pharma Inc., has been in New York state since it was incorporated in 1990. "White Plains is about 15 miles from our corporate headquarters and is the closest federal Bankruptcy courthouse," it said. Drain has a debtor-friendly reputation, and the company and its owners are trying to protect their assets, Lieberman said. "It's hard to sort of turn a blind eye and not realize what's happening to try to get Judge Drain," Foley said. “People file in White Plains because they know they're going to get him." The OxyContin manufacturer now is on the verge of court approval for its plan to settle the legal claims of addiction victims, state governments, and municipal entities that have borne the brunt of the U.S. opioid crisis. The plan would release the controlling family -- the Sacklers -- from future opioid-related lawsuits in exchange for their contribution of roughly $4.2 billion to a larger settlement fund. "I just hope that these higher profile cases will get someone's attention," Elissa Miller of SulmeyerKupetz said, referring to legislative activity brewing on the issue. Changing Calculus The House bill, if passed, could go a long way to appease venue-shopping critics and limit cases like Purdue's. Reps. Zoe Lofgren (D-Calif.) and Ken Buck (R-Colo.), who introduced the bill, said it will "ensure the case is heard in a court familiar with all the affected stakeholders." Versions of the measure have been revived at various times since the early 2000s, but has never picked up enough steam to get a floor vote. But Purdue's bankruptcy and the public outrage the case has generated "changed the calculus," Lieberman said. 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. PURDUE PHARMA: Blasted by Conn. AG, Others at Congressional Hearing ------------------------------------------------------------------- Connecticut Attorney General William Tong told a Congressional committee Wednesday, July 28, 2021, that bankruptcy reform is needed to close a "loophole" that he said the owners of Purdue Pharma are exploiting to evade accountability for their role in the opioid crisis. Through its Chapter 11 bankruptcy, Stamford-based Purdue is seeking court approval of a settlement plan that would include releasing the company and the Sackler family members who own the firm from several thousand complaints accusing the company of fueling the opioid crisis with deceptive OxyContin marketing, as well as potential claims. The Sacklers, however, did not personally file for bankruptcy. "The Sacklers want the court to force us to accept this deal and force sovereign states like Connecticut to release our claims against the nondebtor Sacklers," Tong told a hearing of the House Judiciary Subcommittee on Antitrust, Commercial, and Administrative Law. "To permit nondebtors to abuse the bankruptcy process like this is an outrage, and Connecticut strongly encourages you to stop this abuse." Tong is one of nine state attorneys general who oppose Purdue’s plan. In a related move, U.S. Sen Richard Blumenthal, D-Conn., announced Monday, July 26, 2021, he would introduce a Senate version of the "Stop Shielding Assets from Corporate Known Liability by Eliminating Non-Debtor Releases Act," or SACKLER Act. Introduced in the House in March by two Democrats, the bill aims to prevent those who have not filed for bankruptcy from obtaining releases from lawsuits brought by government bodies. "The Sacklers, personally, have no basis to seek the protections of the bankruptcy court," Tong said. "If they were bankrupt, then all of their money, all of their assets would be in the control of the bankruptcy court. And the court could decide to distribute those assets to help thousands, if not millions, of victims and their families." Purdue officials and representatives of the Sacklers have denied that the company or its owners misused the bankruptcy system. "As a blue-ribbon panel of judges, academics and practitioners found a few years ago, removing this tool would take money away from deserving creditors," Purdue said in a statement. "Applied to this bankruptcy case, it would result in the destruction of billions of dollars of value that would otherwise go to state and local communities to abate the opioid crisis. Furthermore, it would in future cases allow a single entity to block a plan supported by and in the best interest of all other stakeholders." The family of late Purdue founder Mortimer Sackler declined to comment on the hearing. A message left for a representative of late Purdue founder Raymond Sackler’s family was not immediately returned. Many concerns about bankruptcy law The hearing was the first of several planned by the Judiciary Committee to examine bankruptcy law and reforms. House Judiciary Committee Chairman Jerrold Nadler, D-N.Y., announced he had introduced a related bill. Nadler asked Tong for his response to: "people who defend the use of nondebtor releases say that they can deliver a bigger settlement in the bankruptcy process, which benefits everyone." "That's clearly not the case," Tong replied. "That threat that the Sacklers might get away with it pushes that (settlement) number down. So people rush to make a deal because they’re worried if they don’t make a deal, the judge will cram the deal down and force us to accept releases.” Purdue values its settlement offer at more than $10 billion, and about 95 percent of its bankruptcy creditors have voted to support the plan. In total, the Sacklers have agreed to contribute about $4.3 billion in cash to the settlement and allow $175 million held in Sackler family charities to go toward abating the opioid crisis. In 2020, the Sackler family’s net worth was estimated by Forbes at nearly $11 billion. Tong and the other attorneys general said the Sacklers’ offer is too low in an epidemic that resulted in nearly 50,000 opioid-involved deaths in the U.S. in 2019 and said the terms do not acknowledge the Sacklers' alleged financial misconduct. In an announcement, Tong said the Sacklers "made at least $11 billion in profits from producing and deceptively marketing OxyContin." The Sacklers have denied any financial wrongdoing and reject allegations that they were involved in the fraudulent sale and marketing of OxyContin. Connecticut filed its complaint against the company and its owners in December 2018, and Tong took over supervision of the case when he was sworn in as attorney general the following month. Among other witnesses, several professors specializing in bankruptcy law pointed to issues such as "judge-picking" that they said often undermine Chapter 11 cases. Purdue's case is managed by Judge Robert Drain in federal bankruptcy court in White Plains, N.Y. "The key to the Sacklers getting away with it is that Purdue abused the local bankruptcy case assignment rules to handpick the judge for its case," said Adam Levitin, a law professor at Georgetown University. "Purdue picked this judge because it knew it was likely to rule in its favor on all the key issues, including a release of the Sacklers. So far, he has not disappointed. Litigation against the Sacklers has already been stayed for almost two years." Levitin said all Chapter 11 cases, other than small-business cases and individual-debtor cases, "should be randomly assigned to judges within a district." In response, Purdue said in its statement that "Purdue Pharma Inc., the general partner of Purdue Pharma LP, has been a N.Y. corporation since its incorporation on Oct. 1, 1990. White Plains is about 15 miles from our corporate headquarters and is the closest federal bankruptcy courthouse. Thus it was the most appropriate place for us to file." U.S. Rep. Ken Buck, R-Colo., the subcommittee's ranking member, said he co-sponsored legislation requiring Chapter 11 proceedings to "take place where the principal place of business or principal assets of a corporation are located." Alexis Pleus, whose oldest son died of a heroin overdose in 2014 a number of years after he was prescribed OxyContin, also called for bankruptcy reform. "Somehow, the Sacklers are free from the drug war, they walk away unscathed, uncharged for mass murder," said Pleus, founder and executive director of Truth Pharm, a Binghamton, N.Y.-based nonprofit focused on reducing the harms of substance use. "They have changed and impacted our country for generations. They even get to keep the money they accumulated as a result of it, leaving the burden and expense on the American people." The hearing also examined other bankruptcies, including that of USA Gymnastics. Tasha Schwikert Moser, an attorney who won a bronze medal in gymnastics at the 2000 Olympics, told the committee that the bankruptcy system has stymied claims from her and many other gymnasts that relate to sexual abuse by former sports doctor Larry Nassar, who was sentenced to 40 to 175 years in prison in 2018. "After USA Gymnastics' bankruptcy, I learned a sad reality — that the bankruptcy would hurt my efforts to get relief in our civil justice system for my independent claims against the Olympic Committee," Moser said. "Bankruptcy courts exerted extraordinary powers, that I never had thought possible, over my claims against the Olympic Committee." 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. ROMANS HOUSE: DIP Loan, Cash Collateral Access OK'd --------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division, has authorized Michael A. McConnell, the Chapter 11 trustee of Romans House, LLC and Healthcore System Management, LLC to, among other things, use cash collateral on a final basis and obtain post-petition financing. The Trustee is authorized to immediately borrow and incur the Postpetition Loans in an aggregate principal amount not to exceed $500,000. Of that amount, $224,389 was previously borrowed or incurred by the Debtors pursuant to the terms and conditions of the Term Sheet and the Interim Order. As adequate protection for the Debtor's cash collateral, Pender West Credit 1 REIT, L.L.C. and Pender Capital Asset Based Lending Fund I, LP and Pender ABL I Holdings UBI, LLC, each as transferees of and successor in interest to Original Prepetition Lender, are granted additional and replacement continuing valid, binding, enforceable, non-avoidable, and automatically perfected post-petition security interests in and liens on the Debtors' assets. The Adequate Protection Liens will be junior only to: (i) the Carve Out; and (ii) Permitted Prior Senior Liens. The Adequate Protection Liens will otherwise be senior to all other security interests in, liens on, or claims against any of the Adequate Protection Collateral. As further adequate protection against any Diminution in Value of the interests of the Prepetition Lenders in the Prepetition Collateral, the Prepetition Lenders are each granted as and to the extent provided by sections 503(b) and 507(b) of the Bankruptcy Code an allowed super priority administrative expense claim in each of the Chapter 11 Cases and any Successor Case. Except for the Carve Out, the Adequate Protection Superpriority Claims will have priority over all administrative expense claims and unsecured claims against the Debtors or their estates, now existing or hereafter arising, of any kind or nature. As an accommodation to the Trustee and the Debtors, the Prepetition Lenders have agreed to defer any requests for adequate protection payments from Romans to Current Prepetition Lenders during the period covered by the Approved Budget, but reserve in full the rights of the Prepetition Lenders as to any future demands for adequate protection payments from Romans. The Prepetition Lenders also agree to defer any requirement that Healthcore make use and occupancy payments to the Current Lender for the land and improvements thereon commonly known as 4607 E. California Parkway, Fort Worth, Texas, and consisting of an assisted living facility operating under the name "Vincent Victoria Village Assisted Living" for the duration of the Specified Period, but reserve in full the rights of the Prepetition Lenders to require future use and occupancy payments from Healthcore. A copy of the order is available at https://bit.ly/3zYktdM from PacerMonitor.com. About Romans House Based in Fort Worth, Texas, Romans House, LLC operates Tandy Village Assisted Living, a continuing care retirement community and assisted living facility for the elderly in Fort Worth, Texas. Affiliate Healthcore System Management, LLC, operates Vincent Victoria Village Assisted Living, also an assisted living facility for the elderly. Romans House, LLC, and Healthcore System sought Chapter 11 protection (Bankr. N.D. Tex. Case No. 19-45023 and 19-45024) on Dec. 9, 2019. Romans House was estimated to have $1 million to $10 million in assets and liabilities while Healthcore was estimated to have $1 million to $10 million in assets and $10 million to $50 million in liabilities. The Hon. Edward L. Morris is the case judge. Demarco Mitchell, PLLC, is the Debtors' legal counsel. Levene, Neale, Bender, Yoo & Brill L.L.P., serves as their co-bankruptcy counsel. Pender Capital Asset Based Lending Fund I, LP, as lender is represented by Ross and Smith, P.C. RWB INTERNATIONAL: Voluntary Chapter 11 Case Summary ---------------------------------------------------- Debtor: RWB International Family Property Company, L.L.C. 1227 S Bonham Amarillo, TX 79102 Chapter 11 Petition Date: August 2, 2021 Court: United States Bankruptcy Court Northern District of Texas Case No.: 21-20178 Debtor's Counsel: Jeff Carruth, Esq. WEYCER, KAPLAN, PULASKI & ZUBER, P.C. 3030 Matlock Rd. Suite 201 Arlington, TX 76015 Tel: (713) 341-1158 Fax: (866) 666-5322 E-mail: jcarruth@wkpz.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Ryan W. Bernard, manager. The Debtor failed to include in the petition a list of its 20 largest unsecured creditors. A full-text copy of the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/LKOH53A/RWB_International_Family_Property__txnbke-21-20178__0004.0.pdf?mcid=tGE4TAMA SANAM ATHENS: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Sanam Athens Lodging Inc. 120 Shadow Lake Drive Conyers, GA 30094 Business Description: Sanam Athens Lodging Inc. is part of the traveler accommodation industry. Chapter 11 Petition Date: August 3, 2021 Court: United States Bankruptcy Court Northern District of Georgia Case No.: 21-55769 Debtor's Counsel: Paul Reece Marr, Esq. PAUL REECE MARR, P.C. Building 24, Suite 350 1640 Powers Ferry Road Marietta, GA 30067 Tel: (770) 984-2255 Email: paul.marr@marrlegal.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Sunita Patel, 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/B5QVZXA/Sanam_Athens_Lodging_Inc__ganbke-21-55769__0001.0.pdf?mcid=tGE4TAMA SEADRILL LIMITED: Unsecureds Will Recover 0.02% Under Plan ---------------------------------------------------------- Seadrill Limited, et al., submitted a Joint Chapter 11 Plan of Reorganization and a Disclosure Statement. The Debtors and certain stakeholders, including holders of approximately 57.8 percent of the Claims arising under the Prepetition Credit Facilities, support confirmation of the Plan pursuant to the Plan Support and Lock-Up Agreement. Despite Seadrill's prepetition efforts to build consensus for a restructuring transaction, as of the Petition Date, the parties had not agreed on the terms of a comprehensive, consensual restructuring. In large part, this was due to the different debt holdings of the CoCom and the Ad Hoc Group and the disparate views those groups held about the optimal approach to this restructuring. Most of Seadrill's secured debt is contained in 12 distinct silos, each secured by one or more individual rigs as collateral, and which share pari passu first liens in common collateral consisting primarily of cash. Following the Petition Date, the Debtors have continued to build consensus with their constituents. After extensive negotiations, on July 23, 2021, (i) the Debtors and the Consenting Lenders executed the Plan Support Agreement, pursuant to which the Consenting Lenders holding 57.8 percent of the aggregate Credit Agreement Claims have agreed to support the Plan, and (ii) the Backstop Parties and the Company entered into the Backstop Commitment Letter, pursuant to which the Backstop Parties will backstop a $300 million new money credit facility. The Plan provides for the reorganization of the Debtors as a going concern with a deleveraged capital structure and sufficient liquidity to fund the Debtors' post-emergence business plan. The Plan, among other things, provides the following: * Holders of Allowed Credit Agreement Claims will (a) receive $750 million of takeback debt, (b) be entitled to participate in a $300 million new-money raise under the New First Lien Facility, and (c) receive 83 percent of equity in Reorganized Seadrill, subject to dilution by the Management Incentive Plan and the Convertible Bond Equity (if any), on account of their Allowed Credit Agreement Claims, and 16.75 percent of equity in Reorganized Seadrill if such holders elect to participate in the Rights Offering (including, for the avoidance of doubt, the Backstop Parties), in accordance with the Backstop Commitment Letter and the New First Lien Finance Documents, subject to dilution by the Management Incentive Plan, the Convertible Bond Equity (if any); * Where applicable, Net Scrap Proceeds from the recycled Rigs will be paid in cash to the lenders under the applicable facilities; * Holders of the $360 million Asia Offshore Drilling credit facility will receive the option to elect (a) their pro rata share of the AOD silo's takeback debt and equity allocation, or (b) their pro rata share of cash for the full amount of their claim in lieu of such debt and equity allocations; and * If Classes 4 and 6 each vote to accept the Plan, holders of Interests in Seadrill Limited will receive a Pro Rata share of 0.25 percent of the New Seadrill Common Shares, subject to dilution by the Management Incentive Plan and the Convertible Bond Equity (if any). To capture the full benefit of the compromises embodied in the Plan and the Plan Support Agreement, and to avoid any default under the Cash Collateral Order, the Debtors must move through these chapter 11 cases at a steady pace. The Cash Collateral Order has certain key milestones, including: * entry of an order confirming the Disclosure Statement on or before July 30, 2021; and * entry of an order confirming the Plan on or before August 31, 2021. Moreover, the Plan Support Agreement contains the following milestones: * entry of an order of the Bankruptcy Court approving the Disclosure Statement within 45 days of the Plan Support Agreement Effective Date (i.e. by September 6, 2021); * entry of an order of the Bankruptcy Court confirming the Plan within 105 days of the Plan Support Agreement Effective Date (i.e. by November 5, 2021); and * occurrence of the Effective Date within 165 days of the Plan Support Agreement Effective Date (i.e. by January 4, 2022). The formulation of the restructuring embodied in the Plan Support Agreement, the Backstop Commitment Letter, and the Plan is a significant achievement for the Debtors in the face of historic commodity price declines and a depressed operating environment. The Debtors strongly believe that the Plan is in the best interests of the Debtors' estates, and represents the best available alternative at this time. Given the Debtors' core strengths, including their modern fleet, highly-skilled workforce, global reach, and successful operating and safety track record, the Debtors are confident they can efficiently implement the restructuring set forth in the Plan Support Agreement, the Backstop Commitment Letter, and the Plan to ensure their long-term viability and success. For these reasons, the Debtors strongly recommend that holders of Claims and Interests in the Voting Classes vote to accept the Plan. Under the Plan, Class 6 General Unsecured Claims total $1,124,035,708. Each holder of an Allowed General Unsecured Claim against the Debtors shall receive its Pro Rata share of $250,000 in Cash; provided, however, that holders of Credit Agreement Claims shall be deemed to have waived their recovery (but not their right to vote) on account of their General Unsecured Claims. Creditors will recover 0.02% of their claims. Class 6 is impaired. On the Effective Date, the Reorganized Debtors, including Reorganized Seadrill, shall consummate the Rights Offering in accordance with the Rights Offering Procedures, the Backstop Commitment Letter, the Plan, and the New Credit Facility Term Sheet. Subscription Rights to participate in the Rights Offering shall be allocated among the holders of Credit Agreement Claims as of a specified record date in accordance with the Rights Offering Procedures, the Backstop Commitment Letter, and the Plan. The issuance of such Subscription Rights shall be exempt from SEC registration under section 1145 of the Bankruptcy Code and shall not constitute an invitation or offer to sell, or the solicitation of an invitation or offer to buy, any securities in contravention of any applicable law in any jurisdiction. Holders of the Subscription Rights, which include the Backstop Parties, shall receive the right to lend up to $300 million under the New First Lien Facility in accordance with and pursuant to the Plan, the Rights Offering Procedures, the Backstop Commitment Letter, and the New Credit Facility Term Sheet. Rights Offering Participants shall also receive, in consideration for their participation in the Rights Offering, 12.5% (the "Rights Offering Percentage") of the issued and outstanding New Seadrill Common Shares as of the Effective Date (subject to dilution by the Management Incentive Plan and the Convertible Bond Equity (if any)) allocated among the Rights Offering Participants based on the total Subscription Rights subscribed by such Person relative to the total Subscription Rights subscribed by all such Persons (the "Rights Offering Participation Equity"), provided, that if the Rights Offering is not fully subscribed, the Rights Offering Percentage shall equal 12.5% multiplied by a fraction, the numerator of which is the principal amount of the New First Lien Facility committed in the Rights Offering and the denominator of which is $300 million. As consideration for the Backstop Commitment of each Backstop Party and the other agreements of the Backstop Parties as set forth in the Backstop Commitment Letter, (a) the Backstop Parties will be issued the number of New Seadrill Common Shares equal to the sum of: (1) (x) the percentage of 12.5% minus the Rights Offering Percentage multiplied by (y) the total number of New Seadrill Common Shares issued and outstanding on the Effective Date (subject to dilution by the Management Incentive Plan and the Convertible Bond Equity (if any)), plus (2) 4.25% multiplied by (y) the total number of New Seadrill Common Shares issued and outstanding on the Effective Date (subject to dilution by the Management Incentive Plan and the Convertible Bond Equity (if any)) (the "Equity Commitment Premium", and together with the New Seadrill Common Shares described in the foregoing clause (1), the "Backstop Participation Equity"); and (b) the Debtors shall pay or cause to be paid in cash to the Backstop Parties a premium (the "Commitment Premium") equal to 7.5% of the $300 million in total commitments under the New First Lien Facility, in each case, allocated among the Backstop Parties as set forth in the Backstop Commitment Letter. Co-Counsel to the Debtors: Matthew D. Cavenaugh Jennifer F. Wertz Vienna F. Anaya Victoria Argeroplos (TX Bar No. 24105799) JACKSON WALKER L.L.P. 1401 McKinney Street, Suite 1900 Houston, TX 77010 Telephone: (713) 752-4200 Facsimile: (713) 752-4221 Email: mcavenaugh@jw.com jwertz@jw.com vanaya@jw.com vargeroplos@jw.com Co-Counsel to the Debtors: Anup Sathy, P.C. Ross M. Kwasteniet, P.C. Brad Weiland Spencer Winters KIRKLAND & ELLIS LLP KIRKLAND & ELLIS INTERNATIONAL LLP 300 North LaSalle Street Chicago, Illinois 60654 Telephone: (312) 862-2000 Facsimile: (312) 862-2200 Email: asathy@kirkland.com rkwasteniet@kirkland.com bweiland@kirkland.com spencer.winters@kirkland.com - and – Christopher Marcus, P.C. KIRKLAND & ELLIS LLP KIRKLAND & ELLIS INTERNATIONAL LLP 601 Lexington Avenue New York, New York 10022 Telephone: (212) 446-4800 Facsimile: (212) 446-4900 Email: cmarcus@kirkland.com A copy of the Disclosure Statement dated July 24, 2021, is available at https://bit.ly/37beZAm from PacerMonitor.com. About Seadrill Ltd. Seadrill Limited (OSE:SDRL, OTCQX:SDRLF) -- http://www.seapdrill.com/-- is a deepwater drilling contractor providing drilling services to the oil and gas industry. As of March 31, 2018, it had a fleet of over 35 offshore drilling units that include 12 semi-submersible rigs, 7 drillships, and 16 jack-up rigs. On Sept. 12, 2017, Seadrill Limited sought Chapter 11 protection after reaching terms of a reorganization plan that would restructure $8 billion of funded debt. It emerged from bankruptcy in July 2018. Demand for exploration and drilling has fallen further during the COVID-19 pandemic as oil firms seek to preserve cash, idling more rigs and leading to additional overcapacity among companies serving the industry. In June 2020, Seadrill wrote down the value of its rigs by $1.2 billion and said it planned to scrap 10 rigs. Seadrill said it is in talks with lenders on a restructuring of its $5.7 billion bank debt. Seadrill Partners LLC, a limited liability company formed by deep-water drilling contractor Seadrill Ltd. to own, operate and acquire offshore drilling rigs, along with its affiliates, sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 20-35740) on Dec. 1, 2020, after its parent company swept one of its bank accounts to pay disputed management fees. Mohsin Y. Meghji, authorized signatory, signed the petitions. On Feb. 7, 2021, Seadrill GCC Operations Ltd., Asia Offshore Drilling Limited, Asia Offshore Rig 1 Limited, Asia Offshore Rig 2 Limited, and Asia Offshore Rig 3 Limited sought Chapter 11 protection. Seadrill GCC estimated $100 million to $500 million in assets and liabilities as of the bankruptcy filing. Additionally, on Feb. 10, 2021, Seadrill Limited and 114 affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code with the Court. The lead case is In re Seadrill Limited (Bankr. S.D. Tex. Case No. 21-30427). Seadrill Limited disclosed $7.291 billion in assets against $7.193 billion in liabilities as of the bankruptcy filing. In the new Chapter 11 cases, the Debtors tapped Kirkland & Ellis LLP as counsel; Houlihan Lokey, Inc. as financial advisor; Alvarez & Marsal North America, LLC as restructuring advisor; Jackson Walker LLP as co-bankruptcy counsel; Slaughter and May as co-corporate counsel; Advokatfirmaet Thommessen AS as Norwegian counsel; and Conyers Dill & Pearman as Bermuda counsel. Prime Clerk LLC is the claims agent. On April 9, 2021, the board of directors of Debtor Seadrill North Atlantic Holdings Limited unanimously adopted resolutions appointing Steven G. Panagos and Jeffrey S. Stein as independent directors to the board. Seadrill North Atlantic Holdings Limited tapped Katten Muchin Rosenman LLP as counsel and AMA Capital Partners, LLC as financial advisor at the sole direction of independent directors. SEANERGY MARITIME: Unveils New Time Charter, $31M Financing Deals ----------------------------------------------------------------- Seanergy Maritime Holdings Corp. reported that, taking advantage of the current strong market conditions, it has fixed one more of its Capesize vessels, the M/V Worldship, under a fixed-rate time charter with a world-leading U.S. commodity trading company, which is already amongst the Company's charterers. Moreover, Seanergy successfully concluded the financing of two of its new acquisitions, the 2012-built Capesize M/V Hellasship and the 2010-built M/V Patriotship through a sale and leaseback agreement with a major Chinese financial institution. Time Charter Agreement for M/V Worldship The M/V Worldship has been fixed on a T/C with a world-leading U.S. commodity trading company, at a gross daily rate of $31,750 for a period of about 12-16 months. The T/C is expected to commence immediately upon the M/V Worldship's upcoming delivery, which is anticipated within August 2021. Financing of the M/V Hellasship and the M/V Patriotship The Vessels were sold and chartered back on a bareboat basis for a five-year period and the combined financing amount is $30.9 million and the applicable interest rate is LIBOR + 3.50%. Following the second anniversary of the bareboat charter, the Company has continuous options to repurchase the Vessels while at the end of the 5-year bareboat period, it has the option to repurchase the two vessels for $15.3 million in total. Stamatis Tsantanis, the Company's chairman & chief executive officer, stated: "I am very pleased to announce these important transactions for our Company. The debt financings we have secured so far for our recent vessel acquisitions are competitively priced and conservatively structured, resulting in low break-even rates that enhance our significant free cash-flow generating capacity." "On the chartering front, we are taking advantage of the current strong rate environment to increase exposure to fixed-rate T/Cs. The M/V Worldship is the second vessel that will be deployed in a T/C with duration longer than 12 months and at a fixed rate exceeding $30,000/ day. The repeat business with our existing charterers affirms the operating and commercial excellence of our Capesize fleet. Following the delivery of the M/V Worldship to her charterer, 93% percent of our fleet will be employed under medium to long-term time charters. "The consistent implementation of our strategy through 2021 is delivering significant value to the Company. We continue to explore partnerships and opportunities to further increase value for our shareholders." About Seanergy Maritime Greece-based Seanergy Maritime Holdings Corp. -- http://www.seanergymaritime.com-- is the only pure-play Capesize ship-owner publicly listed in the US. Seanergy provides marine dry bulk transportation services through a modern fleet of Capesize vessels. On a 'fully-delivered' basis, the Company's fleet will consist of 16 Capesize vessels with average age of 11.8 years and aggregate cargo carrying capacity of above 2,800,000 dwt. Seanergy Maritime reported a net loss of $18.35 million for the year ended Dec. 31, 2020, compared to a net loss of $11.70 million for the year ended Dec. 31, 2019. As of Dec. 31, 2020, the Company had $295.24 million in total assets, $199.55 million in total liabilities, and $95.69 million in total stockholders' equity. SHOOTING SPORTS: Files for Chapter 11; To Close for Good -------------------------------------------------------- Erika Wells of Triangle Business Journal (NC) reports that longtime Raleigh gun dealer, Shooting Sports Wholesale LLC, has filed to reorganize through Chapter 11 bankruptcy and plans to permanently close after operating for 24 years. Business began to decline for the family-owned company after Warren's father, Robert Warren II died in 2018, and the pandemic added to the financial strain, said representing attorney Danny Bradford in Cary. The father-son team started the business in 1997. "In 2020, with Covid, their gross receipts decreased by about 75 percent," Bradford said. "They need to liquidate to shut it down because they are not able to make the cashflow requirements to keep it open." The company's gross revenue was about $70,000 in the first seven months of 2021, according to the filing. Last year, the company grossed about $577,000 and about $1 million for 2019. Warren, who has run the company with his wife, laid off their three employees in March. They plan to liquidate the remaining inventory through a private sale as well as an auction in the coming weeks, Bradford said. "They closed officially the day before we filed the case but they weren't really open for business since the end of March," he added. "They appreciate all the years of support that they received from the community," Bradford said. The independent sporting arms dealer leased space at 2400 Atlantic Ave. in Raleigh for $4,900 per month, according to the documents. Shooting Sports Wholesale only sold to businesses with an approved federal firearms license, according to its website. Additionally, the company was approved for a $22,400 Payroll Protection Program loan in April 2020 that has since been forgiven. About Shooting Sports Wholesale Shooting Sports Wholesale LLC is a wholesaler of firearms and ammunition in Raleigh, North Carolina. Shooting Sports Wholesale LLC sought Chapter 11 protection (Bankr. E.D.N.C. Case No. 21-01669) on July 27, 2021. In the petition signed by Robert S. Warren, III, as member, Shooting Sports Wholesale LLC estimated assets of $81,766 and liabilities of $2,344,295. The case is handled by Honorable Judge Joseph N. Callaway. Danny Bradford, Esq. of PAUL D. BRADFORD, PLLC, is the Debtor's counsel. SIRIUS XM: S&P Rates New $750MM Senior Unsecured Notes 'BB' ----------------------------------------------------------- S&P Global Ratings assigned its 'BB' issue-level rating and '3' recovery rating to New York-based satellite radio operator Sirius XM Radio Inc.'s proposed $750 million senior unsecured notes due in 2026 and $1.25 billion senior unsecured notes due in 2031. The '3' recovery rating indicates its expectation for meaningful (50%-70%; rounded estimate: 50%) recovery for lenders in the event of a payment default. Sirius XM plans to use the proceeds to redeem $1 billion of its 4.625% senior unsecured notes due in 2024 ($1.5 billion outstanding) and all of its 5.375% senior unsecured notes due in 2026 ($1 billion outstanding). S&P said, "Our 'BB' issuer credit rating and stable outlook on Sirius XM are unchanged because the proposed transaction is neutral for leverage. We expect net leverage will remain in the mid-3x area over the next year as the company returns all free operating cash flow to shareholders. We expect modest EBITDA growth of 2%-4% in 2021 largely driven by advertising revenue growth." SKS CONSTRUCTION: Seeks Cash Collateral Access Thru Oct 31 ---------------------------------------------------------- SKS Construction, Inc. asks the U.S. Bankruptcy Court for the Eastern District of Virginia, Richmond Division, for entry of an order approving its agreement with Blue Ridge Bank, N.A. authorizing the Debtor to use cash collateral in accordance with the budget and provide adequate protection. The Debtor requires the use of cash collateral in the ordinary course of business to continue operating. SKS is indebted to the Bank pursuant to a Promissory Note dated October 25, 2019, in the principal amount of $928,495, with a payoff of $904,728, as of June 11, 2021. The Note is secured by the Debtor's equipment, accounts, receivables, and a deed of trust on the Debtor's real property located at 8515 Indian Hills Park, Spotsylvania, VA 22408. The Note is guaranteed by both Steven Zuchowski and John Zuchowski, SKS's owners. SKS and the Bank's agreement over the use of cash collateral will cover through and including October 31, 2021. As adequate protection for the Debtor's use of cash collateral, the Bank will be granted replacement security interests and liens in the collateral type held by the bank as of the petition date, to include new receivables generated by the Debtor post-petition and any proceeds generated from turnover actions, which have been or will be filed, in connection with receivables or other claims of the Debtor. The replacement liens will be deemed perfected without the necessity for the filing or execution of documents. As additional adequate protection, the Debtor will make $2,000 in monthly adequate protection payments to the Bank, during the months of August, September and October 2021, with the payments due by no later than the 20th day of each month. As additional adequate protection, the non-debtors, Steven and Wendy Zuchowski, will timely grant the Bank a deed of trust equal to $100,000—second in priority behind a deed of trust securing an outstanding principal balance not to exceed $32,000 at any time -- on certain real estate owned by them that is located at 10503 Rhoads Drive. Fredericksburg, VA 22407. A copy of the motion is available at https://bit.ly/3yfnoP6 from PacerMonitor.com. About SKS Construction, Inc. SKS Construction, Inc. is a privately owned construction company, based in Fredericksburg, Virginia. It was founded in 1993 and its main lines of business include excavation, site development, underground utilities, and general construction. The Debtor filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Va. Case No. 21-31862) on June 9, 2021. The petition was signed by Steven J. Zuchowski, vice-president. At the time of filing, the Debtor estimated $1 million to $10 million in both assets and liabilities. David K. Spiro, Esq., at Spiro & Browne, PLLC, represents the Debtor as its counsel. SM ENERGY: Incurs $223 Million Net Loss in Second Quarter --------------------------------------------------------- SM Energy Company filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $222.99 million on $563.85 million of total operating revenues and other income for the three months ended June 30, 2021, compared to a net loss of $89.25 million on $169.63 million of total operating revenues and other income for the three months ended June 30, 2020. For the six months ended June 30, 2021, the Company reported a net loss of $474.26 million on $1 billion of total operating revenues and other income compared to a net loss of $501.15 million on $525.37 million of total operating revenues and other income for the same period during the prior year. As of June 30, 2021, the Company had $5.05 billion in total assets, $1.05 billion in total current liabilities, $2.45 billion in total noncurrent liabilities, and $1.55 billion in total stockholders' equity. SM Energy said, "We expect our 2021 capital program to be funded by cash flows from operations. Although we expect cash flows from operations to be sufficient to fund our expected 2021 capital program, we may also use borrowings under our revolving credit facility or may elect to raise funds through new debt or equity offerings or from other sources of financing. If we raise additional funds through the issuance of equity or convertible debt securities, the percentage ownership of our current stockholders could be diluted, and these newly issued securities may have rights, preferences, or privileges senior to those of existing stockholders and bondholders. Additionally, we may enter into cost carrying and sharing arrangements with third parties for certain exploration or development programs. All of our sources of liquidity can be affected by the general conditions of the broader economy, force majeure events, fluctuations in commodity prices, operating costs, tax law changes, and volumes produced, all of which affect us and our industry." SM Energy's credit ratings impact the availability of and cost for the company to borrow additional funds. During the first half of 2021, three major credit rating agencies upgraded SM Energy's credit ratings, citing its improved debt leverage and its expected ability to generate meaningful free cash flows, among other reasons. Additionally, one of these major credit rating agencies further upgraded SM Energy's credit rating in conjunction with the issuance of its 2028 Senior Notes. "We have no control over the market prices for oil, gas, or NGLs, although we may be able to influence the amount of our realized revenues from our oil, gas, and NGL sales through the use of derivative contracts as part of our commodity price risk management program. Commodity derivative contracts may limit the prices we receive for our oil, gas, and NGL sales if oil, gas, or NGL prices rise substantially over the price established by the commodity derivative contract," SM Energy said. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/893538/000089353821000081/sm-20210630.htm About SM Energy SM Energy Company is an independent energy company engaged in the acquisition, exploration, development, and production of crude oil, natural gas, and natural gas liquids in the state of Texas. SM Energy reported a net loss of $764.61 million for the year ended Dec. 31, 2020, compared to a net loss of $187 million for the year ended Dec. 31, 2019. As of March 31, 2021, the Company had $5.02 billion in total assets, $776.62 million in total current liabilities, $2.47 billion in total noncurrent liabilities, and $1.77 billion in total stockholders' equity. SOUTHWESTERN ENERGY: S&P Rates New Senior Unsecured Notes 'BB-' --------------------------------------------------------------- S&P Global Ratings assigned its 'BB-' issue-level rating and '3' recovery rating to Southwestern Energy Co.'s proposed $700 million senior unsecured notes maturing in 2029 and placed the issue-level rating on CreditWatch with positive implications, in line with all of its other ratings on the company. The '3' recovery rating indicates its expectation for meaningful (50%-70%; rounded estimate: 55%) recovery of principal for creditors in the event of a payment default. In anticipation of its acquisition of Indigo Natural Resources LLC, Southwestern has commenced an offer to exchange up to $700 million in aggregate principal amount of its new 5.375% senior unsecured notes due 2029, plus $5 cash if validly tendered by the early tender date, for Indigo's existing notes. The exchange notes will be issued by Southwestern and guaranteed by certain of its subsidiaries. The CreditWatch reflects S&P's expectation that it will raise its issuer credit rating and senior unsecured issue-level rating on Southwestern at the close of its acquisition of Indigo, which it expects will occur in the third quarter of 2021. The Indigo acquisition will increase Southwestern's geographic diversity by providing it with another core natural gas play in the Haynesville Shale, boosting its pro forma reserves to 15 trillion cubic feet and production to approximately 4.1 billion cubic feet equivalent per day as of year-end 2020. S&P said, "In addition, we expect Indigo's good cost structure and pricing in the Gulf Coast market to increase Southwestern's exploration and production (E&P) margin by $0.15 to $1.30 per million cubic feet equivalent, which will improve its profitability. The acquisition will also decrease the company's exposure to in-basin pricing in Appalachia, which has historically been affected by significant pricing differentials. Furthermore, it provides Southwestern with multiple sales locations in Greater Appalachia and the Gulf Coast with exposure to areas of growing liquified natural gas demand. We anticipate the company will likely maintain financial policies that support continued free cash flow generation and debt reduction. The company has stated that it expects to generate $1.2 billion of free cash flow through 2023. We expect Southwestern will use this cash flow for absolute debt reduction, including to pay off its remaining $207 million of unsecured notes due 2022. In addition, we view this transaction as deleveraging and estimate it will lower the company's net debt to EBITDA by about 0.4x." SUMMIT FAMILY: Refuses to Sell Casa Bonita Despite Bankruptcy ------------------------------------------------------------- Omar Letson of The Richest reports that despite bankruptcy, Casa Bonita refuses to sell its restaurant to creators of TV series South Park. The restaurant Casa Bonita, widely beloved by the locals of Colorado, was the back drop of several South Park episodes. Though the restaurant's been feeding people ever since the the early '70s, it filed for Chapter 11 bankruptcy back in April. The creators of the iconic adult cartoon, Matt Stone and Trey Parker have swooped in to save the establishment by attempting to purchase it. Unfortunately for them, it looks like Casa Bonita isn't for sale. Summit Family Restaurants, the company which owns the restaurant filed for Chapter 11 protection on April 6, 2021. This was mainly due to the lack of steady business brought on by the pandemic. According to Denver 7, Summit Family Restaurants is currently looking at "noncontingent liquated debts below $7.5 million." Casa Bonita's received a great deal of publicity from the creators in the past. The Mexican restaurant first appeared in a South Park episode in 2003, as well as being a setting within the franchise's video game South Park: The Fractured but Whole which was released in 2017. So when news came out of the restaurant being under bankruptcy, the show's creators were more than willing to spring into action. "We are absolutely trying to buy it. We are going to do everything we can," co creator, Trey Parker told the Hollywood Reporter, "We want to make it right and make it amazing." The creators went on to discuss the changes they intend to make to Casa Bonita should they be successful in their plans of buying. "For a moment when it was like, 'Casa Bonita is going to close down,’ we said," Parker went on, "'We're going to go buy it.' And I felt like it was the crowning achievement of my life." Though they may have to wait awhile before getting too excited because, according to Summit, the restaurants not for sale. Summit Family Restaurants informed TMZ that they've received several proposals from people looking to buy the popular Mexican spot. Though they're not taking any into considering at the moment, even in light of filling for bankruptcy. They intend to get back up and running the minute that they've squared away their financial setbacks. Parker and Stone have actually been throwing around the idea of buying Casa Bonita for a few years now -- apparently ever since 2016. But, while they may not be able to carry out their plans anytime soon, that doesn't mean they won't be able to purchase the establishment in the future. A representative at Summit told TMZ that, if Casa Bonita ever does go up for sale, the creators will be one of the first people considered to be considered as its new owners. About Summit Family Restaurants Scottsdale, Ariz.-based Summit Family Restaurants Inc. owns and operates Denver restaurant Casa Bonita. The restaurant, which opened in 1974, shut its doors in March 2020, at the beginning of the COVID-19 pandemic. Summit's parent, Star Buffet, Inc., owns and operates restaurants in several western states, Oklahoma and Florida. It operates restaurants under the HomeTown Buffet, JB's Restaurants, BuddyFreddys, JJ North's Country Buffet, Holiday House, Casa Bonita, and North's Star Buffet names. Star Buffet's restaurants provide customers with a variety of fresh food at moderate prices. Summit Family Restaurants filed a petition under Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Case No. 21-02477) on April 6, 2021. The Debtor disclosed total assets of $3.682 million and total liabilities of $4.425 million as of March 31, 2021. On June 23, 2021, the Debtor's Chapter 11 proceeding was transferred to the U.S. Bankruptcy Court for the District of Colorado and was assigned a new case number (Case No. 21-13328). Judge Brenda K. Martin oversees the case. Kutner Brinen Dickey Riley, PC serves as the Debtor's legal counsel. TASEKO MINES: To Release Second Quarter 2021 Results Today ---------------------------------------------------------- Taseko Mines Limited will release its second quarter 2021 financial results after market close today. The Company will host a telephone conference call and live webcast on Thursday, Aug. 5, 2021 at 11:00 a.m. Eastern Time (8:00 a.m. Pacific) to discuss these results. After opening remarks by management, there will be a question and answer session open to analysts and investors. The conference call may be accessed by dialing 416-764-8688 in Canada, 888-390-0546 in the United States, 08006522435 in the United Kingdom, or online at tasekomines.com/investors/events. The conference call will be archived for later playback until Aug. 19, 2021 and can be accessed by dialing 416-764-8677 Canada, 1-888-390-0541 in the United States, or online at tasekomines.com/investors/events and using the passcode 121055 # For further information on Taseko, please see the Company's website tasekomines.com or contact: Brian Bergot, Vice President, Investor Relations – (778) 373-4533 or toll free 1 (877) 441-4533 About Taseko Taseko Mines Limited -- http://www.tasekomines.com-- is a mining company focused on the operation and development of mines in North America. Headquartered in Vancouver, Taseko operates the state-of-the-art Gibraltar Mine, the second largest copper mine in Canada. Taseko Mines reported a net loss of C$23.52 million for the year ended Dec. 31, 2020, compared to a net loss of C$53.38 million for the year ended Dec. 31, 2019. * * * As reported by the TCR on Aug. 31, 2020, Moody's Investors Service revised the rating outlook for Taseko Mines Limited to stable from negative. At the same time, Moody's affirmed Taseko's Corporate Family Rating (CFR) at Caa1, its Probability of Default Rating at Caa1-PD and its senior secured note ratings at Caa1. "The outlook revision to stable reflects our expectation the company will generate marginally positive free cash flow as copper prices have strengthened," said Jamie Koutsoukis, Moody's vice president, senior analyst. TRADEMARK DEVELOPERS: Voluntary Chapter 11 Case Summary ------------------------------------------------------- Debtor: Trademark Developers, LTD 5432 W Atlantic Blvd. Margate, FL 33063 Business Description: Trademark Developers, LTD is the owner of commercial strip centers. Chapter 11 Petition Date: August 3, 2021 Court: United States Bankruptcy Court Northern District of Florida Case No.: 21-17632 Judge: Hon. Scott M. Grossman Debtor's Counsel: Kevin Christopher Gleason, Esq. FLORIDA BANKRUPTCY GROUP, LLC 4121 N 31 Ave Hollywood, FL 33021 Tel: (954) 893-7670 E-mail: bankruptcylawyer@aol.com Total Assets: $3,950,000 Total Debts: $3,759,628 Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Jean Novak, personal representative of the Estate of Lois McHale Wagner. The Debtor filed an empty list of its 20 largest unsecured creditors. A full-text copy of the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/OSI4TCQ/Trademark_Developers_LTD__flsbke-21-17632__0001.0.pdf?mcid=tGE4TAMA U.S. SILICA: Posts $25.9 Million Net Income in Second Quarter ------------------------------------------------------------- U.S. Silica Holdings, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing net income of $25.90 million on $317.30 million of total sales for the three months ended June 30, 2021, compared to a net loss of $32.62 million on $172.54 million of total sales for the three months ended June 30, 2020. For the six months ended June 30, 2021, the Company reported net income of $4.97 million on $551.72 million of total sales compared to a net loss of $105.22 million on $442.14 million of total sales for the six months ended June 30, 2020. As of June 30, 2021, the Company had $2.26 billion in total assets, $1.61 billion in total liabilities, and $648.74 million in total stockholders' equity. As of June 30, 2021, the Company had $212.7 million in cash and cash equivalents and total debt was $1.235 billion. The Company's $100.0 million Revolver had $25.0 million drawn, with $22.0 million allocated for letters of credit, and availability of $53.0 million. On July 27, 2021, the Company paid off its $25.0 million outstanding Revolver balance. Capital expenditures in the second quarter totaled $3.6 million. During the second quarter of 2021, the Company generated $68.3 million in cash flow from operations including the cash settlement. However, excluding the $48.9 million customer settlement, cash flow from operations would have been $23.3 million. The Company remains focused on building on its fundamental operating successes, its disciplined approach to expanding its business, ensuring that it generates sustainable free cash flow and continuing to de-lever its balance sheet. The second quarter results were positively impacted by $46.9 million net, or $0.46 per diluted share, due to a customer settlement of $48.9 million, or $0.49 per diluted share, recorded in the Oil & Gas segment, and partially offset by delayed winter weather impacts and facility closure costs. Bryan Shinn, chief executive officer, commented, "Our strong financial and operational performance during the second quarter exceeded both revenue and Adjusted EBITDA expectations. Additionally, we recorded sequential volume growth in both of our operating segments, supported by the broader market recovery and constructive commodity prices. "In the Industrial & Specialty Products segment, second quarter revenue grew at a rate that exceeded GDP growth and we recently announced our third price increase this year for our industrial and specialty products beginning September 1st. Our Oil & Gas segment benefited from strong commodity prices and completions activity, as we out-executed our competition and gained market share in the second quarter, which drove sequential increases in proppant volumes and SandBox delivered loads. "I'm also happy to report that in late June, we came to an agreement with a customer to settle a dispute regarding fees related to minimum purchase commitments from 2014-2020. As a result of this resolution, the Company received approximately $128 million of consideration, including $90 million in cash. Half of the cash settlement amount was received in the second quarter and the balance was received in July. We have used a portion of this settlement to pay off our outstanding revolver balance of $25 million. "Our commitment to deleveraging the balance sheet remains a key corporate initiative. As the macro environment continues to improve, we are focused on prioritizing free cash flow, growing the Industrial & Specialty Products segment, and maximizing efficiencies in the Oil & Gas segment." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1524741/000152474121000036/slca-20210630.htm About U.S. Silica Headquartered in Katy, Texas, U.S. Silica Holdings, Inc. -- http://www.ussilica.com-- is a global performance materials company and a producer of commercial silica used in a wide range of industrial applications and in the oil and gas industry. In addition, through its subsidiary EP Minerals, LLC, the Company produces products derived from diatomaceous earth, perlite, engineered clays, and non-activated clays. U.S. Silica reported a net loss of $115.12 million in 2020, a net loss of $329.75 million in 2019, and a net loss of $200.82 million in 2018. As of March 31, 2021, the Company had $2.21 billion in total assets, $1.59 billion in total liabilities, and $618.27 million in total stockholders' equity. URBAN ONE: Reappoints Geoffrey Armstrong as Director ---------------------------------------------------- Geoffrey D. Armstrong has been reappointed to the board of directors of Urban One, Inc. Mr. Armstrong will serve as a Class B Director until the Company's 2022 Annual Meeting of Stockholders and until his successor is duly elected and qualified, effective immediately. He will serve as a member of the board's audit and compensation committees. Until November 2020, Mr. Armstrong previously served as a director and the chairman of the audit committee of the Company since June 2001 and May 2002, respectively. Mr. Armstrong is chief executive officer of 310 Partners, a private investment firm. From March 1999 through September 2000, Mr. Armstrong was the chief financial officer of AMFM, which was publicly traded on the New York Stock Exchange until it was purchased by Clear Channel Communications in September 2000. From June 1998 to February 1999, Mr. Armstrong was chief operating officer and a director of Capstar Broadcasting Corporation, which merged with AMFM in July 1999. Mr. Armstrong was a founder of SFX Broadcasting, which went public in 1993, and subsequently served as chief financial officer, chief operating officer and a director until the company was sold in 1998 to AMFM. Mr. Armstrong has also served on the board of directors of Nexstar Media Group, Inc., SFXii Entertainment, Capstar Broadcasting Corporation, AMFM and SFX Broadcasting. Mr. Armstrong brings to Urban One's board of directors his extensive experience as the chief executive officer of several publicly traded companies in the broadcast and communications industry, as well as a member of the audit committee of several publicly traded companies. His service on the boards of public companies in diverse industries allows him to offer a broad perspective on corporate governance, risk management and operating issues facing corporations today. City of Richmond Host Community Agreement On July 29, 2021, RVA Entertainment Holdings, LLC, a wholly owned unrestricted subsidiary of the Company, entered into a Host Community Agreement with the City of Richmond for the development of the ONE Casino + Resort. The HCA imposes certain obligations on RVAEH in connection with the development of the Project. These commitments include but are not limited to: (i) a $26 million upfront payment due upon successful passage of a citywide referendum permitting development of the Project; (ii) annual financial commitments upon opening of the Project; (iii) commitments with respect to the design, standards and "look and feel" of the Project; (iv) commitments with respect to programming and operation of the Project; (v) commitments with respect to wages and benefits and hiring and contracting goals; (vi) commitments with respect to the construction and funding of needed public and private infrastructure; (vii) area beautification commitments; (viii) timing obligations; (ix) commitments with respect to insurance and indemnification of the City and (x) restrictions on certain transfers of the Project or management of the Project. In connection with the HCA, RVAEH and its development partner Pacific Peninsula Entertainment funded the Upfront Payment into escrow to be released to the City upon successful passage of the Referendum or back to RVAEH in the event the Referendum fails. On July 29, 2021, the City of Richmond formally filed a petition to the Circuit Court for the City of Richmond calling for the Referendum to be added to the ballot for Nov. 2, 2021 citywide elections. A full copy of the HCA as adopted by the City of Richmond City Council can be found at https://www.rva.gov/sites/default/files/2021-07/Richmond%20Host%20Community%20Agreement%20-%20FINAL.pdf and the above summary is qualified in its entirety by reference to the actual agreement. About Urban One Headquartered in Silver Spring, Maryland, Urban One, Inc. (together with its subsidiaries) -- www.urban1.com -- is an urban-oriented, multi-media company that primarily targets African-American and urban consumers. The Company's core business is its radio broadcasting franchise which is the largest radio broadcasting operation that primarily targets African-American and urban listeners. As of Dec. 31, 2020, the Company owned or operated 63 independently formatted, revenue producing broadcast stations (including 54 FM or AM stations, 7 HD stations, and the 2 low power television stations it operates) located in 13 of the most populous African-American markets in the United States. While a core source of the Company's revenue has historically been and remains the sale of local and national advertising for broadcast on its radio stations, its strategy is to operate the premier multi-media entertainment and information content provider targeting African-American and urban consumers. Urban One received notice from The Nasdaq Stock Market, Inc. that as a result of the resignation of Geoffrey Armstrong as a director of the Company effective Nov. 23, 2020 the Company was no longer in compliance with Nasdaq's audit committee requirements as set forth in Nasdaq Marketplace Rule 5605 since Mr. Armstrong had been a member of the audit committee. Urban One reported a consolidated net loss attributable to common stockholders of $8.11 million for the year ended Dec. 31, 2020. As of March 31, 2021, the Company had $1.17 billion in total assets, $957.19 million in total liabilities, $12.74 million in redeemable noncontrolling interests, and $198.83 million in total stockholders' equity. WC 717 N HARWOOD: Voluntary Chapter 11 Case Summary --------------------------------------------------- Debtor: WC 717 N Harwood Property LLC 814 Lavaca Street Austin, TX 78701 Business Description: WC 717 N Harwood Property LLC is a Single Asset Real Estate debtor (as defined in 11 U.S.C. Section 101(51B)). Chapter 11 Petition Date: August 3, 2021 Court: United States Bankruptcy Court Western District of Texas Case No.: 21-10630 Judge: Hon. Tony M. Davis Debtor's Counsel: Mark H. Ralston, Esq. FISHMAN JACKSON RONQUILLO PLLC 13155 Noel Road, Ste. 700 Dallas, TX 75240 Tel: (972) 419-5544 Email: mralston@fjrpllc.com Estimated Assets: $100 million to $500 million Estimated Liabilities: $50 million to $100 million The petition was signed by Natin Paul as authorized signatory. The Debtor failed to include in the petition a list of its 20 largest unsecured creditors. A full-text copy of the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/SCURU3Y/WC_717_N_Harwood_Property_LLC__txwbke-21-10630__0001.0.pdf?mcid=tGE4TAMA WILLCO X DEVELOPMENT: Payments to Unsecureds to Start in 2022 ------------------------------------------------------------- Willco X Development, LLLP, submitted a Second Amended Disclosure Statement. The Reorganized Debtor will operate its business following confirmation of its Plan and will pay its creditors with allowed claims pursuant to the provisions of the confirmed Plan from its ongoing operations. At present, the Debtor is not actively marketing the hotel for sale, although it receives inquiries periodically. If the party contacting the Debtor seems legitimate, has the wherewithal to purchase the hotel, and is acting in good faith, discussions ensue. This will be the case going forward, however, the Debtor is not committing to a sale in the near term. Once the hotel's revenues stabilize post-pandemic, it should increase the value of the business and there is no need to sell the property until this occurs, provided it can positively cash flow, which it can, and creditors can be paid within a reasonable period of time. Even now, the value of the property far exceeds all claims. If the property is sold as opposed to refinanced, creditors will be paid in full. If the property cannot be sold to pay creditors in full, it will not be sold. As of the date of the filing of the bankruptcy petition, the Debtor's Assets consist of real and personal property assets. The Debtor's Real Property is located at 14275 Lincoln Street, Thornton, Colorado, Adams County. The Real and Personal Property has an appraised value of $25 million. The appraisal was prepared for Wells Fargo Bank, N.A. in 2019. Real Property values in Colorado have increased since the Covid-19 pandemic. The Debtor believes there is no need to incur the costs of an updated appraisal. The property is worth appreciably more than the total debt against it. Earlier, the Debtor received an offer of purchase from an independent buyer which was for $29,500,000. The Debtor did not pursue the offer because the prospective purchaser wanted to have the right to negotiate down the claims against the Estate, which the Debtor did not want to occur. The Debtor's personal property consists of cash and bank account(s), furniture, fixtures and equipment, and accounts receivable including approximately $1.2 million owed by Spirit Hospitality, LLC. Under the Plan, Class 20 Allowed Unsecured Claims are impaired. The holders of allowed unsecured claims in Class 20 shall be paid the allowed amount of their unsecured claims plus interest at the current Federal Judgment Interest Rate on a Pro Rata basis from Debtor's Net Income from Operations with the first payment commencing 6 months following the establishment of a Working Capital Reserve of $250,000 and continuing every 6 months thereafter until paid in full. The Working Capital Reserve will be retained in the Debtor's operating account. It is intended to provide a cushion for the Debtor's working capital needs throughout the progress of the Plan. Estimated Class 20 unsecured claims total $1,566,653. It is anticipated that Class 20 payments shall commence during the first quarter of 2022. In addition, assuming a sale or refinance in 2024 as required under the Plan, it is projected that Class 20 creditors will be paid in full the remaining balance of their claims at that time. Counsel for the Debtor: Jeffrey A. Weinman WEINMAN & ASSOCIATES, P.C. 730 17th Street, Suite 240 Denver, CO 80202-3506 Telephone: (303) 572-1010 Facsimile: (303) 572-1011 E-mail: jweinman@weinmanpc.com A copy of the Disclosure Statement dated July 28, 2021, is available at https://bit.ly/3BUzFuo from PacerMonitor.com. About Willco X Development LLP Willco X Development, LLLP, operator of the Hilton Garden Inn of Thornton in Colo., filed a Chapter 11 petition (Bankr. D. Colo. Case No. 20-16438) on Sept. 29, 2020. The Debtor was estimated to have $10 million to $50 million in assets and liabilities as of the bankruptcy filing. Judge Thomas B. McNamara oversees the case. Weinman & Associates, P.C., led by Jeffrey A. Weinman, is the Debtor's legal counsel. Independent Bank, as lender, is represented by John F. Young, Esq., at Markus Williams Young & Hunsicker LLC. YOUNGBLOOD SKIN: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Youngblood Skin Care Products, LLC d/b/a Youngblood Mineral Cosmetics 4583 Ish Drive Simi Valley, CA 93063 Case No.: 21-10808 Business Description: Youngblood Skin Care Products operates as a cosmetics company. Chapter 11 Petition Date: August 2, 2021 Court: United States Bankruptcy Court Central District of California Judge: Hon. Deborah J. Saltzman Debtor's Counsel: Dean G. Rallis Jr., Esq. HAHN & HAHN LLP 301 E. Colorado Blvd., 9th Floor Pasadena, CA 91101-1977 Tel: (626) 796-9123 Email: drallis@hahnlawyers.com Debtor's Financial Advisor: Mike Paulsin PREFERRED CFO Debtor's Accountant: COHEN & FREEDMAN Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Jason Toth, the Debtor's executive vice president. A copy of the Debtor's list of 20 largest unsecured creditors is available for free at PacerMonitor.com at: 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/2K6VCMY/Youngblood_Skin_Care_Products__cacbke-21-10808__0001.0.pdf?mcid=tGE4TAMA ZIM CORPORATION: Delays Filing of Form 10-K for Year Ended March 31 ------------------------------------------------------------------- ZIM Corporation 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 year ended March 31, 2021. The Company's management has been working with its external auditors on a complex issue relating to the reclassification of certain historical financial information to reflect discontinued operations. The Company continues to work on this complex issue, and as a result, the Registrant is unable to file its Annual Report on Form 20-F within the prescribed time period without unreasonable effort or expense. The Company expects to file within the extension period. About ZIM Corporation Headquartered in Ontario, Canada, ZIM Corporation -- www.zim.biz -- is a provider of software products and services for the database and mobile markets. ZIM products and services are used by enterprises in the design, development and management of business, database and mobile applications. ZIM also provides mobile content to the consumer market. ZIM Corporation reported a net loss of $9,000 for the year ended March 31, 2020, compared to net income of $703,516 for the year ended March 31, 2019. As of Dec. 31, 2020, the Company had $1.27 million in total assets, $49,515 in total liabilities, and $1.22 million in shareholders' equity. Ottawa, Canada-based MNP LLP, the Company's auditor since 2015, issued a "going concern" qualification in its report dated July 28, 2020, citing that the Company has an accumulated deficit as at March 31, 2020 of $20,631,105 and has a history of operating losses which raise substantial doubt about the Company's ability to continue as a going concern. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. 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