/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/210825.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 25, 2021, Vol. 25, No. 236 Headlines 1 BIG RED: Seeks Approval to Hire Keller Williams as Broker 1106 MONTELLO: Seeks Approval to Hire Kutak Rock as Legal Counsel 1400 NORTHSIDE: Committee Taps Stonebridge as Accountant 232 SEIGEL: Gets OK to Hire Olshan Frome Wolosky as Special Counsel ADVANCED TISSUE: Case Summary & 20 Largest Unsecured Creditors ADVANTAGE MANUFACTURING: Court OKs Oxygen Funding Cash Deal ALISHA LLC: Case Summary & 11 Unsecured Creditors ALM LLC: Canyon Says Plan Disclosures Inadequate AMERICAN MOBILITY: Obtains Court Nod on Cash Access Thru Sept. 7 ARIZONA IDA: S&P Lowers Bonds Rating to 'CCC+(sf)', Outlook Neg. ASTON CUSTOM HOMES: Sept. 29 Plan & Disclosure Hearing Set AULT GLOBAL: Posts $41.1 Million Net Income in Second Quarter AULT GLOBAL: Regains Compliance With NYSE American Listing Rules AUTHENTIC BRANDS: Reebok Transaction No Impact on Moody's B2 CFR AVENTURA HOTEL: Court Conditionally Approves Disclosure Statement AVERY COMMERCIAL: Oct. 1 Hearing on Disclosure Statement BEAR COMMUNICATIONS: Seeks to Hire Ritchie Bros. as Auctioneer BOUCHARD TRANSPORTATION: Claimants Bailey et al., Oppose Joint Plan BOY SCOUTS OF AMERICA: Insurers Opposed Court-Approved Settlement BOY SCOUTS OF AMERICA: Victims Lawyers Seek Insurer Liability Probe BRAIN ENERGY: Case Summary & Unsecured Creditor BRICK HOUSE: Seeks to Use Zions Bank Cash Collateral BROWN INDUSTRIES: Seeks Cash Collateral Access C & C ENTITY: Seeks to Hire Schrader Real Estate as Auctioneer CAREVIEW COMMUNICATIONS: Incurs $3 Million Net Loss in 2nd Quarter CARVER BANCORP: Incurs $2.8 Million Net Loss in First Quarter CENTRAL SIGNS: Cash Collateral Bid Moot Following Plan Approval CHIDO INC: Seeks Approval to Hire A-Z Complete as Accountant CLINIGENCE HOLDINGS: Incurs $2.8 Million Net Loss in Second Quarter CORE & MAIN: S&P Raises ICR to 'B+' on Completed IPO DANE HEATING: Seeks to Use Frozen Bank Funds DANIEL R. ROUBEIN: Case Summary & 6 Unsecured Creditors DEYO TRANSPORTATION: Seeks to Hire Lane Law Firm as Legal Counsel FORUM ENERGY: S&P Alters Outlook to Stable, Affirms 'CCC+' ICR FUSE GROUP: Posts $20K Net Income in Third Quarter GIRARDI & KEESE: Lisa Rinna Dragged in Erika's Embezzlement Probe GIRARDI & KEESE: Thomas Girardi Disbarred in Central California GIRARDI & KEESE: Tom Moves to Assisted Facility as Mansion Sold Of GREENSILL CAPITAL: Administrators Try to Stave Off Lawsuit in U.S. HASTINGS ESTATE: Unsecureds Unimpaired in Plan HERMELL PRODUCTS: May Use Cash Collateral Through October 1 HH ACQUISITION: Gets OK to Hire George Smith as Real Estate Broker HOWARD HUGHES: Fitch Affirms 'BB' LT IDR, Outlook Remains Negative HPE TRANSPORTATION: Taps Frost & Associates as Bankruptcy Counsel IANTHUS CAPITAL: Lenders Ask Additional Time to Close Debt Plan INOVALON HOLDINGS: Go-Private Deal No Impact on Moody's B2 CFR INPIXON: Posts $14.5 Million Net Income in Second Quarter INTEGRATED GLOBAL: May Use Cash to Maintain Redondo Property INTEGRATED GLOBAL: May Use Cash to Maintain Rose Property J. HUNTER: Wins Cash Collateral Access Thru Oct 31 JINZHENG GROUP: Case Summary & 10 Unsecured Creditors KNOW LABS: Incurs $7.1 Million Net Loss in Third Quarter LEVANT GROUP: Seeks OK on SBA Cash Collateral Deal LIMETREE BAY: Taps Beckstedt & Kuczynski as Special Counsel LITHIA MOTORS: S&P Alters Outlook to Positive, Affirms 'BB+' ICR MAIN STREET INVESTMENTS III: Taps Mincin Law as Legal Counsel MARRONE BIO: Incurs $3 Million Net Loss in Second Quarter MARY BRICKELL: October 22 Disclosure Statement Hearing Set NANYAH VEGAS: Seeks to Hire Simons Hall Johnston as Special Counsel NATIONAL JEWELRY: Gets OK to Tap Luis D. Flores Gonzales as Counsel NUVERRA ENVIRONMENTAL: Incurs $3.9 Million Net Loss in 2nd Quarter NUVERRA ENVIRONMENTAL: Inks 2nd Amendment to 2020 Loan Agreement OCCIDENTAL PETROLEUM: S&P Upgrades ICR to 'BB' on Lower Leverage ODYSSEY AT PATERSON: Voluntary Chapter 11 Case Summary OPPENHEIMER HOLDINGS: Moody's Upgrades CFR to Ba3, Outlook Stable OXBOW CARBON: S&P Alters Outlook to Stable, Affirms 'B+' ICR PIPELINE FOODS: Wins Cash Collateral Access PIZ FAMILY: Seeks to Hire Genova & Malin as Legal Counsel PRIME ECO: Seeks Approval to Hire Wells & Bedard as CPA PRINTEX INC: Seeks to Hire Wade Stables as Tax Preparer PROFESSIONAL FINANCIAL: Affiliate Seeks to Hire Real Estate Agent PURDUE PHARMA: Creditors Defend Sackler Deal to Avoid Costly Trial PURDUE PHARMA: Ex-Director Mortimer Shocked by Guilty Plea PURDUE PHARMA: Ex-Pres. Sackler Distances from Sales Program PURDUE PHARMA: Hires Sullivan & Worcester as Conflicts Counsel PURDUE PHARMA: Narrows Down Sackler Releases After Judge Comments RESTORATIVE BRAIN: U.S. Trustee Unable to Appoint Committee ROSIE'S LLC: Seeks to Hire Moye White as Legal Counsel SAMARCO MINERACAO SA: Must Submit Its DIP Loan Plan to Trustee SANCHEZ ENERGY: Bondholders Sue Fidelity Over Massive Returns SEADRILL LTD: Reports Financial Results for First Half 2021 SHILO INN BEND: Obtains OK to Use Cash Collateral Thru Sept. 30 SOFT FINISH: Has OK to Use Cash Collateral Until Dec. 31 SONOMA PHARMACEUTICALS: Incurs $1.1 Million Net Loss in 1st Quarter SUNRISE REAL ESTATE: Posts $32.6-Mil. Net Income in Second Quarter TOUCHPOINT GROUP: Posts $1.3 Million Net Loss in Second Quarter TRANE TECHNOLOGIES: Judge Questions Move to Hive Off Liabilities TUG INC: Seeks to Employ Westside Bookkeeping as Accountant TUMBLEWEED TINY HOUSE: Wins Cash Collateral Access Thru Sept 30 URQUHART LLC: Case Summary & 20 Largest Unsecured Creditors VERITAS FARMS: Incurs $696K Net Loss in Second Quarter VERTICAL MAC: Gets Approval to Hire Stichter as Legal Counsel VPR BRANDS: Posts $265K Net Income in Second Quarter WESTERN MIDSTREAM: S&P Upgrades ICR to 'BB+', Outlook Stable WESTMOUNT GROUP: Case Summary & 6 Unsecured Creditors WOW BAR: Seeks to Use Cash Collateral Thru Final Hearing YUNHONG CTI: Posts $2.5 Million Net Income in Second Quarter ********* 1 BIG RED: Seeks Approval to Hire Keller Williams as Broker ----------------------------------------------------------- 1 Big Red, LLC seeks approval from the U.S. Bankruptcy Court for the District of Kansas to employ Keller Williams Plaza Partners to assist in the sale of its real property at 7410 Sni-ABar Road, Kansas City, Mo. The firm will receive a commission is 6 percent, to be split 3 percent listing side and 3 percent selling side of the final purchase price to be paid from the proceeds of the closing with no additional costs or fees. As disclosed in court filings, Keller Williams is disinterested within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached through: Ariel Kuchmeister Keller Williams Plaza Partners 4700 Belleview Ave Suite 210 Kansas City, MO 64112 Mobile: (913) 274-8288 Office: (913) 825-2176 Home Office: (636) 795-9069 About 1 Big Red LLC 1 Big Red, LLC, a Kansas City, Mo.-based company engaged in activities related to real estate, filed a petition for Chapter 11 protection (Bankr. D. Kan. Case No. 21-20044) on Jan. 15, 2021, listing total assets at $2.5 million and $3,094,099 in liabilities. Judge Robert D. Berger oversees the case. The Debtor tapped Colin Gotham, Esq., at Evans & Mullinix, P.A., as legal counsel. 1106 MONTELLO: Seeks Approval to Hire Kutak Rock as Legal Counsel ----------------------------------------------------------------- 1106 Montello, LLC seeks approval from the U.S. Bankruptcy Court for the District of Columbia to employ Kutak Rock, LLP to serve as legal counsel in its Chapter 11 case. The firm's hourly rates are as follows: Attorneys $360 - $600 per hour Partners $575 per hour Associates $360 per hour Paralegals $135 - $175 per hour Kutak Rock received a pre-bankruptcy retainer of $16,738 from which $6,440 for pre-bankruptcy fees and $1,738 in filing fees were paid, leaving a retainer balance of $8,560. Kutak Rock is a "disinterested person," as that phrase is defined in Section 101(14) of the Bankruptcy Code, according to court papers filed by the firm. The firm can be reached through: Michael A. Condyles, Esq. Peter J. Barrett, Esq. Jeremy S. Williams, Esq. Brian H. Richardson, Esq. Kutak Rock LLP 901 East Byrd Street, Suite 1000 Richmond, VA 23219-4071 Tel: (804) 644-1700 Fax: (804) 783-6192 About 1106 Montello LLC 1106 Montello LLC, a Washington, DC-based company engaged in activities related to real estate, filed a voluntary petition for Chapter 11 protection (Bankr. D. Colo. Case No. 21-00209) on Aug. 12, 2021, listing as much as $10 million in both assets and liabilities. Justin Thornton, the Debtor's managing member, signed the petition. Kutak Rock, LLP represents the Debtor as legal counsel. 1400 NORTHSIDE: Committee Taps Stonebridge as Accountant -------------------------------------------------------- The official committee of unsecured creditors of 1400 Northside Drive, Inc. seeks approval from the U.S. Bankruptcy Court for the Northern District of Georgia to employ Stonebridge Accounting & Forensics, LLC as its accountant and plan consultant. The committee needs the firm's services to check the Debtor's accounting of proceeds running through its ongoing business, and to advise the committee on potential refinancing and sale in connection with the Debtor's Chapter 11 plan. Spence Shumway, managing director at Stonebridge, will charge $300 per hour for his services. Mr. Shumway disclosed in a court filing that his firm is a "disinterested person" as defined by Section 101(14) of the Bankruptcy Code. The firm can be reached through: Spence Shumway, CPA, CIRA Stonebridge Accounting & Forensics LLC P.O. Box 1290 Grayson, GA 30017 Phone: +1 (770) 995-8102 Fax: +1 (770) 995-8103 Email: spence@stonebridgeaccounting.com info@stonebridgeaccounting.com About 1400 Northside Drive 1400 Northside Drive, Inc., owner of a male strip club known as Swinging Richards, filed a voluntary Chapter 11 petition (Bankr. N.D. Ga. Case No. 19-56846) on May 2, 2019. The case is jointly administered with the Chapter 11 case filed by Cummins Beveridge Jones II (Bankr. N.D. Ga. Case No. 19-20853), the Debtor's chief executive officer and chief financial officer. At the time of the filing, 1400 Northside Drive disclosed $50,000 to $100,000 in assets and $1 million to $10 million in liabilities. Judge James R. Sacca oversees the case. Paul Reece Marr, PC is the Debtor's legal counsel. On Oct. 21, 2020, the U.S. Trustee for Region 21 appointed an official committee of unsecured creditors in the Debtor's case. The committee tapped Ogier, Rothschild and Rosenfeld, PC as legal counsel and Stonebridge Accounting & Forensics, LLC as accountant and plan consultant.. 232 SEIGEL: Gets OK to Hire Olshan Frome Wolosky as Special Counsel ------------------------------------------------------------------- 232 Seigel Development, LLC and 232 Seigel Acquisition, LLC received approval from the U.S. Bankruptcy Court for the Southern District of New York to employ Olshan Frome Wolosky, LLP as special counsel. The firm will represent the Debtors in matters related to real estate, litigation and bankruptcy law. Olshan's billing rates for its lawyers range from $390 to $1,200 per hour while paralegal rates range from $250 to $390 per hour. For this matter, the firm has agreed to a 10 percent discount on its hourly rates. The firm received a retainer in the amount of $40,000. Adam Friedman, Esq., at Olshan, disclosed in a court filing that his firm and its attorneys do not have interests adverse to the Debtors, creditors and other parties in interest. The firm can be reached through: Adam H. Friedman, Esq. Olshan Frome Wolosky LLP 1325 6th Ave. New York, NY 10019 Phone: 212.451.2216 Fax: 212.451.2222 Email: afriedman@olshanlaw.com About 232 Seigel Brooklyn, N.Y.-based 232 Seigel Development, LLC and 232 Seigel Acquisition, LLC sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 20-22844) on July 14, 2020. 232 Seigel Development listed as much as $50,000 in both assets and liabilities while 232 Seigel Acquisition listed total assets of $18 million and total liabilities of more than $7.1 million. Judge Robert D. Drain oversees the cases. The Debtors tapped Backenroth Frankel & Krinsky, LLP as bankruptcy counsel and Olshan Frome Wolosky, LLP as special counsel. ADVANCED TISSUE: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Advanced Tissue, LLC 7003 Valley Ranch Drive Little Rock, AR 72223 Business Description: Advanced Tissue, LLC is part of the electronic shopping and mail-order houses industry. Chapter 11 Petition Date: August 23, 2021 Court: United States Bankruptcy Court Eastern District of Arkansas Case No.: 21-12261 Judge: Hon. Phyllis M. Jones Debtor's Counsel: Kevin P. Keech, Esq. KEECH LAW FIRM, PA 2011 South Broadway Little Rock, AR 72206 Tel: 501-221-3200 Fax: 501 221 3201 E-mail: kkeech@keechlawfirm.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $10 million to $50 million The petition was signed by Robert Betchley as CEO. 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/6I7GBBY/Advanced_Tissue_LLC__arebke-21-12261__0001.0.pdf?mcid=tGE4TAMA ADVANTAGE MANUFACTURING: Court OKs Oxygen Funding Cash Deal ----------------------------------------------------------- Judge Erithe A. Smith of the U.S. Bankruptcy Court for the Central District of California approved the stipulation between Advantage Manufacturing, Inc. and Oxygen Funding, Inc., thereby authorizing the Debtor to use cash collateral and access postpetition financing. A final hearing on the cash collateral motion is scheduled for September 30, 2021, at 10:30 a.m. Objections must be filed and served no later than September 9. Replies thereto must be filed and served by September 23. About Advantage Manufacturing Advantage Manufacturing, Inc., a Santa Ana, Calif.-based manufacturer of pool, spa and pond water filtration equipment, filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Calif. Case No. 21-11723) on July 11, 2021. Lyann Courant, chief executive officer, signed the petition. At the time of filing, the Debtor disclosed $50,000 to $100,000 in assets and $1 million to $10 million in liabilities. Judge Theodor Albert oversees the case. The Law Offices of Michael G. Spector serves as the Debtor's legal counsel. ALISHA LLC: Case Summary & 11 Unsecured Creditors ------------------------------------------------- Debtor: Alisha, LLC 1698 Northgate Drive Richmond, KY 40475 Business Description: Alisha, LLC is a Single Asset Real Estate debtor (as defined in 11 U.S.C. Section 101(51B)). The Debtor owns a real property located at 1698 Northgate Drive, Richmond, KY having a current value of $1.25 million. Chapter 11 Petition Date: August 23, 2021 Court: United States Bankruptcy Court Eastern District of Kentucky Case No.: 21-50965 Judge: Hon. Gregory R. Schaaf Debtor's Counsel: Dean A. Langdon, Esq. DELCOTTO LAW GROUP PLLC 200 North Upper St. Lexington, KY 40507 Tel: (859) 231-5800 Fax: (859) 281-1179 Total Assets: $1,307,202 Total Liabilities: $500,115 The petition was signed by Pragneshbhai Patel as member. A full-text copy of the petition containing, among other items, a list of the Debtor's 11 unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/S3G4D5Y/Alisha_LLC__kyebke-21-50965__0001.0.pdf?mcid=tGE4TAMA ALM LLC: Canyon Says Plan Disclosures Inadequate ------------------------------------------------ Secured creditor Canyon Square Investments LLC ("Canyon"), in its capacity as a secured creditor of ALM LLC d/b/a Agua La Montaña objects to final approval of the Disclosure Statement: * The Disclosure Statement fails to include concrete material information such as the source of the alleged value of the collaterals that Debtor wishes to retain under a restructured scenario. In fact, both the DS and PLN include values that appear to be speculative or interpretative, without a reasonable source, such as that of an appraiser or valuation professional. * Creditors are in the dark as to the methodology imposed by the Debtor regarding the value of the assets of the estate. This omission is material for a bankruptcy case which terms are couched primarily on cramming down secured creditors creating an enormous pool of unsecured creditors under a mere distribution of 2 percent. The valuation information is also necessary and material for the assessment of the liquidation value of the case, and for creditors to assess if the distributions are lawfully calculated taking into account the proper value of the bankruptcy estate. * In addition, the Debtor is not disclosing the relation and conflict of interest of the shareholder, Mr. Riefkohl with a related corporation named Happy Water LLC, in which the shareholder holds an ownership interest. In addition, Happy Water LLC leases space in Debtor's premises and Debtor manufactures its products using Debtor's resources; and yet, there is no disclosure as to the rental contract and/or reasons why the payments for the use of Debtor's premises and resources post-petition are not being accounted for in clear prejudice to the estate and its creditors. * As such, the DS should not be approved because it does not include adequate information of the dealings with Happy Water LLC, fails to include in detail the shareholder's conflict of interests and the reasons why this corporation is not paying for the use of the premises and resources in detriment to the estate and its creditors. Canyon objects to confirmation of the Proposed Reorganization Plan: A. The Plan is unconfirmable because it is not feasible, and Debtor has accumulated post-petition debt on a consistent basis: * In this case, a cursory review of Debtor's monthly operating reports ("MOR") shows that Debtor's projections plummeted since the filing of the petition; to the point of being almost 50% under the projected amounts presented by Debtor's financial advisors in the MOR's * It is important to stress that the projections were made post-petition, in the midst and considering the effects of the recurrent Covid-19 pandemic. However, as evinced, the Debtor has failed to come even close to such projection's month after month, on a consistent basis accumulating deficiencies in payment of post-petition obligations in detriment of the estate and its creditors. * Given the fact that Debtor cannot meet its projections post-petition and has and continues to accrue post-petition debt, the case will most likely than not end up in liquidation and/or in a posterior post confirmation modification because as proposed, the Plan is utterly unfeasible. B. Debtor's financial information, including its MORs, reveals that Debtor has no available disposable income to fund the Plan and attest to its lack of feasibility: * A cursory review of the latest filed MORs reflects that Debtor's ending cash balance was -$7,570.12 during February 2021, -$1,512.18 during April 2021. These financial documents reveal that Debtor accumulates post-petition liabilities leaving no room for the disposable income necessary to implement the proposed Plan; and no capacity to make payments outside the ordinary course of Debtor's business: * The amount of the unpaid post-petition liabilities included in Dkt. No. 29, page 28, as Exhibit E denotes a deficiency in payment in the amount of $9,576.45. More worrisome is the fact that the Debtor is not paying taxes because there are no registered payments to the IRS for February 2021, March 2021, April 2021 and May 2021. In addition, the Debtor is not paying the required water extraction fee in 2021. * Thus, when relying on the information provided, it is clear that the amount projected does not take into account the post-petition accrual of debt, which combined with the hefty payment of administrative expenses due on the effective date, it is clear that the Debtor has no capacity to pay what it proposes to pay under the terms of the proposed Plan if such Plan is confirmed. * Furthermore, in the Plan, Debtor proposes to pay Canyon two payments as a secured creditor. Under Class 1, the Debtor proposes a monthly payment of $3,815.00 and under Class 2, a monthly payment of $1,367.00; for a total payment for Canyon's alleged secured portion of the claim in the amount of $5,182.00. Currently, Debtor is paying adequate protection payments to Canyon in the amount of $4,434.00, a payment which is met only because the shareholder is paying for approximately 40% of the adequate protection payment. The Plan does not contemplate the shareholder's contribution, hence, there is no disposable income available to fund the Plan. C. Debtor's Reorganization Plan is not proposed in good faith because it serves to benefit the shareholder's interest in Happy Water LLC in violation of 11 U.S.C. §1129(a)(3) * In this case, the shareholder is grossly mismanaging the Bankruptcy Estate to benefit his other companies and the Plan continues to conceal this fact. As presented, the Debtor will continue to erode the estate because Happy Water LLC ("HH20") continues to lease space in Debtor's premises and continues to manufacture on behalf of HH20 without consideration and payment to the Debtor for the work performed on behalf of HH20. * In the DS and Plan, there is no explanation as to relation of the shareholder with HH20 or an explanation as to why the receivable of this related corporation is not accrued on a monthly basis. Debtor accepts that HH20 maintained two machineries in Debtor facilities and attests that when HH20 increases its sales, Debtor will benefit financially. However, Debtor omits the receivable and fails to disclose its accrual in the MOR, which will cause that such receivable is not considered for Debtor's reorganization efforts. * Based on this material omissions, we respectfully request that the Court deny approval of the Disclosure Statement as it fails to provide adequate information and denies the confirmation of the Plan because the Debtor's shareholder's conflict of interest with HH20 prevents it from proposing a Plan in good faith, in violation of 11 U.S.C. §1129(a)(3). D. Debtor's Plan would not provide "fair and equitable" treatment to its unsecured general creditors under a "cram-down" scenario because Mr. Riefkohl seem to retain his shares under the proposed Plan in violation of the absolute priority rule - 11 U.S.C. § 1129(b)(2)(B)(ii). * According to Debtor's Statement of Financial Affairs, Mr. Riefkohl is the holder of 100% interest of Debtor's corporation. Therefore, Mr. Riefkohl is an equity security holder of the Debtor, as such term is defined in 11 U.S.C. §101(17), and his interest in Debtor is therefore junior in comparison to the estate creditors. * However, Canyon notes that Class 11 of the Plan for "Equity Security and/or other interest holders" states that "this class includes all security and interest holders which is the owners of the stock of the Debtor. This class shall not receive any distribution under the Plan. This class is ineligible to vote". * Although the above-referenced statement suggests that Mr. Riefkohl will not be entitled to vote and/or receive distribution under the Plan, neither the Plan nor the Disclosure Statement clearly state if Mr. Riefkohl will surrender his shares or if he will retain them under the Plan. Further, Canyon notes that the valuation of Mr. Riefkohl shares in Debtor's affairs is undisclosed in Debtor's Plan and Disclosure Statement. Counsel of Canyon Square Investments LLC: JAVIER VILARIÑO CAROL J. TIRADO LOPEZ VILARIÑO & ASSOCIATES LLC PO BOX 9022515 San Juan, PR 00902-2515 Tel. (787) 565-9894 E-mail: jvilarino@vilarinolaw.com E-mail: ctirado@vilarinolaw.com About ALM LLC ALM, LLC, also known as Agua La Montana, is the owner of a fee simple title to a property in Trujillo Alto, P.R., having a current value of $860,943. ALM filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 20-04571) on Nov. 25, 2020, listing total assets of $1,083,384 and total liabilities of $2,919,967. ALM President Kristian E. Riefkohl Bravo signed the petition. Judge Mildred Caban Flores oversees the case. Gandia Fabian Law Office and Jimenez Vazquez & Associates, PSC serve as the Debtor's legal counsel and accountant, respectively. AMERICAN MOBILITY: Obtains Court Nod on Cash Access Thru Sept. 7 ---------------------------------------------------------------- Judge Joseph N. Callaway of the U.S. Bankruptcy Court for the Eastern District of North Carolina granted the request of American Mobility, Inc. to use cash collateral through September 7, 2021, on an interim basis. The Debtor may use the cash collateral for reasonable operating expenses incurred postpetition, pursuant to the budget. Gulf Coast Bank and Trust and Truist Bank are given continuing replacement liens in the Debtor's inventory, accounts and proceeds thereof, to the extent of the creditors' existing prepetition liens. Gulf Coast, in addition, is granted an allowable claim to the extent of diminution in the value of its collateral. The Debtor shall deposit with its counsel $37,000, representing accrued profits during the course of its bankruptcy case, to be held in trust pending distribution under the Plan or a further Court order. A copy of the order is available for free at https://bit.ly/3Dey0AE from PacerMonitor.com. Counsel for Gulf Coast Bank and Trust: James W. Sheedy, Esq. Driscoll Sheedy, P.A. 11520 N. Community House Road, Suite 200 Rock Hill, SC 29730 Telephone: (704) 341-2101 Email: jimsheedy@driscollsheedy.com Counsel for Truist Bank: Jill C. Walters, Esq. Womble Bond Dickinson LLP 555 Fayetteville St., Suite 1100 Raleigh, NC 27601 Telephone: (919) 755-2185 Email: Jill.Walters@wbd-us.com About American Mobility American Mobility, Inc. operates a retail company selling and servicing medical equipment directly to consumers in the Wake County area in North Carolina. American Mobility filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.C. Case No. 21-01352) on June 11, 2021. William Ryan, president, signed the petition. In its petition, the Debtor disclosed total assets of up to $500,000 and total liabilities of up to $10 million. Judge Joseph N. Callaway oversees the case. J.M. Cook, Esq., at J.M. Cook, PA, serves as the Debtor's legal counsel. ARIZONA IDA: S&P Lowers Bonds Rating to 'CCC+(sf)', Outlook Neg. ---------------------------------------------------------------- S&P Global Ratings lowered its long-term ratings on Arizona Industrial Development Authority's series 2019A, 2019B, and 2019C senior living revenue bonds (Great Lakes Senior Living Communities LLC Project) each to 'CCC+(sf)' from 'B+(sf)', 'B(sf)', and 'B-(sf)', respectively. At the same time, S&P Global Ratings removed all the ratings from CreditWatch, where they had been placed with negative implications on March 3, 2021. The outlook is negative. "The downgrade on the series 2019A, 2019B, and 2019C bonds reflects our view that the project's financial position is currently vulnerable and dependent on favorable business, financial, and economic conditions to meet its financial commitments," said S&P Global Ratings credit analyst Daniel Pulter. While the project may not face a near-term credit or payment crisis, S&P believes its financial commitments may be unsustainable in the long term. S&P is assigning a rating of 'CCC+' to all three series of bonds due to a structural feature, outlined in transaction documents, that states' proceeds from a foreclosure shall be applied to the payment of the principal and interest due and unpaid on all series of bonds outstanding, regardless of lien priority. S&P said, "We have analyzed the project's environmental, social, and governance (ESG) risks relative to its coverage and liquidity, management and governance, and market position. The recent uptick in COVID-19 cases driven by the Delta variant, both across the country and globally, indicates we have not yet fully emerged from the pandemic and its related social and economic impacts. While many of the property's residents are fully vaccinated, risks of and challenges to the normal move-in process, as well as marketing efforts, have continued to strain occupancy in age-restricted properties. In particular, due to the tangible financial impact of the COVID-19 pandemic on project financials in 2020 and persisting into 2021, we continue to view social risk as elevated for the project. We view the project's governance and environmental risks to be in line with the sector average. "If debt service reserve funds are drawn upon, or if specific default scenarios--such as a near-term liquidity crisis, violation of financial covenants, or a distressed exchange--appear to be likely or inevitable, we could lower the rating. "Should the project demonstrate substantial financial improvement, as evidenced by sustained increases in maximum annual debt service coverage and the full funding of replacement reserves, we could revise the outlook to stable." ASTON CUSTOM HOMES: Sept. 29 Plan & Disclosure Hearing Set ---------------------------------------------------------- On Aug. 9, 2021, Aston Custom Homes & Design, Inc., filed with the U.S. Bankruptcy Court for the Northern District of Texas a Disclosure Statement along with a proposed Chapter 11 Plan of Reorganization. On Aug. 19, 2021, Judge Stacey G. Jernigan conditionally approved the Disclosure Statement and ordered that: * Sept. 22, 2021, is fixed as the last day for filing written acceptances or rejections of the Debtor's proposed Chapter 11 Plan. * Sept. 22, 2021, is fixed as the last day for filing and serving written objections to final approval of the Debtor's Disclosure Statement; or confirmation of the Debtor's proposed Chapter 11. * Sept. 29, 2021, at 1:30 p.m. is the Hearing to consider final approval of the Debtor's Disclosure Statement (if a written objection has been timely filed) and to consider the confirmation of the Debtor's proposed Chapter 11 Plan. A copy of the order dated August 19, 2021, is available at https://bit.ly/3y40Csj from PacerMonitor.com at no charge. Attorneys for Debtor: Joyce W. Lindauer, Esq. Kerry S. Alleyne, Esq. Guy H. Holman, Esq. Joyce W. Lindauer Attorney, PLLC 1412 Main Street, Suite 500 Dallas, TX 75202 Telephone: (972) 503-4033 Facsimile: (972) 503-4034 Email: joyce@joycelindauer.com About Aston Custom Homes & Design Aston Custom Homes & Design, Inc. -- http://www.astoncustomhome.com/-- is a home design and construction company based in Dallas, Texas. It specializes in the reconstruction of historic homes. Aston Custom Homes & Design sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Texas Case No. 21-30208) on Feb. 1, 2021. At the time of the filing, the Debtor disclosed assets of between $1 million and $10 million and liabilities of the same range. Judge Stacey G. Jernigan oversees the Debtor's case. The Debtor is represented by Joyce W. Lindauer Attorney, PLLC. AULT GLOBAL: Posts $41.1 Million Net Income in Second Quarter ------------------------------------------------------------- Ault Global Holdings, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing net income of $41.13 million on $62.13 million of total revenue for the three months ended June 30, 2021, compared to a net loss of $1.38 million on $5.40 million of total revenue for the three months ended June 30, 2020. For the six months ended June 30, 2021, the Company reported net income of $44.21 million on $75.38 million of total revenue compared to a net loss of $7.91 million on $11.01 million of total revenue for the six months ended June 30, 2020. As of June 30, 2021, the Company had $259.10 million in total assets, $27.71 million in total liabilities, and $231.39 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/896493/000121465921008691/ag8921010q.htm About Ault Global Holdings Ault Global Holdings, Inc. (fka DPW Holdings, Inc.) is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact. Through its wholly and majority-owned subsidiaries and strategic investments, the Company provides mission-critical products that support a diverse range of industries, including defense/aerospace, industrial, telecommunications, medical, and textiles. In addition, the Company extends credit to select entrepreneurial businesses through a licensed lending subsidiary. Ault Global reported a net loss of $32.73 million for the year ended Dec. 31, 2020, compared to a net loss of $32.94 million for the year ended Dec. 31, 2019. As of March 31, 2021, the Company had $234.03 million in total assets, $57.56 million in total liabilities, and $176.47 million in total stockholders' equity. AULT GLOBAL: Regains Compliance With NYSE American Listing Rules ---------------------------------------------------------------- Ault Global Holdings, Inc. received written notice from the NYSE American LLC stating that AGH has regained compliance with all continued listing standards set forth in Section 704 of the NYSE American Company Guide. By meeting the continued listing requirements, AGH has resolved its continued listing deficiency and the ".BC" designation, signifying noncompliance with the NYSE American's listing standards, was removed from the Company's "DPW" trading symbol. Commenting on the matter, AGH's Executive Chairman Milton C. Ault, III stated, "We are pleased that we have regained compliance with the NYSE American's continued listing standards. Mr. Ault continued, noting "With this matter resolved, we remain focused on growing our operations and revenues." As previously announced, the Company was notified by the NYSE American that the Company was not in compliance with the continued listing standards of Section 704 of the Company Guide for its inability to hold its annual shareholder meeting during its fiscal year end Dec. 31, 2020. On Aug. 13, 2021, the Company held its annual shareholder meeting and regained compliance. About Ault Global Holdings Ault Global Holdings, Inc. (fka DPW Holdings, Inc.) is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact. Through its wholly and majority-owned subsidiaries and strategic investments, the Company provides mission-critical products that support a diverse range of industries, including defense/aerospace, industrial, telecommunications, medical, and textiles. In addition, the Company extends credit to select entrepreneurial businesses through a licensed lending subsidiary. Ault Global reported a net loss of $32.73 million for the year ended Dec. 31, 2020, compared to a net loss of $32.94 million for the year ended Dec. 31, 2019. As of June 30, 2021, the Company had $259.10 million in total assets, $27.71 million in total liabilities, and $231.39 million in total stockholders' equity. AUTHENTIC BRANDS: Reebok Transaction No Impact on Moody's B2 CFR ---------------------------------------------------------------- Moody's Investors Service said that ABG Intermediate Holdings 2 LLC's (dba "Authentic Brands") proposed debt-financed acquisition of active and footwear brand Reebok has no immediate impact on its credit ratings. On August 12, 2021, both Authentic Brands [1] (B2 Stable) and adidas AG [2] (A2 Stable) announced that Authentic Brands entered into a definitive agreement to purchase Reebok from adidas AG for a total consideration of up to EUR2.1 billion, with the majority to be paid in cash at closing and the remainder comprised of deferred and contingent consideration. The transaction is expected to close in the first quarter of 2022, subject to customary closing conditions including regulatory approval. Authentic Brands' B2 corporate family rating and stable outlook are not currently impacted despite the expected significant increase in debt to fund the acquisition and heightened integration and execution risks, particularly since Reebok's sales growth has consistently lagged behind that of adidas and the brand's turnaround, launched in 2016, is still ongoing. Authentic Brands has exhibited steady operating performance over the past few years, including demonstrated resilience through the coronavirus pandemic, and the company has developed a strong track record of acquiring, integrating and growing brands. Authentic Brands' financial leverage has declined significantly over the past 12 months due to continued revenue and EBITDA growth, and it continues to generate strong free cash flow. For the latest twelve month period ended March 2021, Moody's lease-adjusted debt-to-EBITDA declined below 5 times and EBITA/Interest coverage improved to over 4 times; levels that are better than Moody's upward rating indicators. These numbers exclude earnings for the acquisitions of Eddie Bauer, which closed on June 1, and Heritage Brands, which closed on August 2. Prior to the proposed acquisition of Reebok, Moody's expected continued improvement over the next twelve months due to continued organic growth and additional earnings related to the recent acquisitions. Per Moody's estimations, pro forma leverage could increase well over 6.5 times upon closing of the acquisition to the extent it is fully debt financed. However, its core earnings growth and strong free cash flow supports subsequent credit metric improvement. While Authentic Brands disclosed that it has received financing commitments, the amount of debt to be raised for the transaction has not yet been publicly disclosed, and the ultimate size of the transaction, timing of deferred and contingent consideration, and impact on Authentic Brands' revenue, earnings and credit metrics remains uncertain. In addition, the amount, timing, and use of proceeds from a potential initial public offering ("IPO") also remain uncertain. Moody's will continue to monitor these developments. Headquartered in New York, NY, ABG Intermediate Holdings 2 LLC is the borrowing entity for holding company Authentic Brands Group LLC (dba "Authentic Brands"). Authentic Brands is a brand management company with a portfolio of over 50 brands. The company also has control over the use of the name, image and likeness of several celebrities. The company is majority owned by private equity firms, with affiliates of BlackRock being the largest shareholders, followed by General Atlantic, Leonard Green, Lion Capital, Simon Property Group, management and other co-investors. Authentic Brands is privately owned and does not publicly disclose its financial information. Annual revenue exceeds $500 million. AVENTURA HOTEL: Court Conditionally Approves Disclosure Statement ----------------------------------------------------------------- Judge Robert A. Mark has entered an order conditionally approving the Disclosure Statement of Aventura Hotel Properties, LLC and Triptych Miami Holdings, LLC. The Court has set a Consolidated Hearing to consider confirmation of the Amended Plan and approval of the Disclosure Statement on Monday, Sept. 13, 2021, at 11:00 a.m. (EST) by Zoom Video Conference. The last day for filing and serving objections to confirmation of the Amended Plan will be on Tuesday, Sept. 7, 2021. The deadline for objections to final approval of the disclosure statement will be on Tuesday, Sept. 7, 2021. The last day for filing a ballot accepting or rejecting the Amended Plan will be on Tuesday, Sept. 7, 2021. Counsel to the Debtor: Jesus M. Suarez Genovese Joblove & Battista, P.A. 100 SE 2nd Street, 44th Floor Miami, Florida 33131 Tel: 305-349-2300 Fax: 305-349-2310 E-mail: jsuarez@gjb-law.com About Aventura Hotel Properties Aventura Hotel Properties, LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 21-12374) on March 12, 2021. Francisco Arocha, the manager, signed the petition. In the petition, the Debtor disclosed assets of between $10 million and $50 million and liabilities of the same range. Judge Jay A. Cristol oversees the case. Genovese Joblove & Battista, P.A. is the Debtor's legal counsel and Avison Young Florida as real estate broker. AVERY COMMERCIAL: Oct. 1 Hearing on Disclosure Statement -------------------------------------------------------- Judge David R. Jones will convene a hearing to consider the approval of the disclosure statement of Avery Commercial Small C, LLC by video on Oct. 1, 2021, at 9:00 a.m. Sept. 24, 2021, is fixed as the last day for filing and serving written objections to the disclosure statement. About Avery Commercial Avery Commercial Small C, LLC, sought protection under Chapter 11 of the Bankruptcy Code on Feb. 22, 2021 (Bankr. S.D. Tex. Case No. 21-50020). Brian T. Moreno, the Debtor's vice president and chief operating officer, signed the petition. In the petition, the Debtor disclosed total assets of $4,985,519 and total liabilities of $3,398,302. The Debtor is represented by Carl M. Barto, Esq., at the Law Offices of Carl M. Barto. Great Western Bank, a secured creditor, is represented by: Diann M. Bartek, Esq. Jeana Long, Esq. Dykema Gossett PLLC 1400 N. McColl Road, Suite 204 McAllen, TX 78501 Telephone: (956) 984-7400 Facsimile: (956) 984-7499 Email: dbartek@dykema.com jlong@dykema.com Wells Fargo Bank, also as a secured creditor, is represented by: Robert L. Barrows, Esq. Warren, Drugan & Barrows, P.C. 800 Broadway, Suite 200 San Antonio, TX 78215 Telephone: (210) 226-4131 Facsimile: (210) 224-6488 Email: rbarrows@wdblaw.com BEAR COMMUNICATIONS: Seeks to Hire Ritchie Bros. as Auctioneer -------------------------------------------------------------- Bear Communications, LLC seeks approval from the U.S. Bankruptcy Court for the District of Kansas to hire Ritchie Bros. Auctioneers to appraise and sell its equipment and machinery. The firm will be entitled to a commission based on the gross sale price of each piece of equipment as follows: (a) 9.25 percent for any lot in excess of $2,500; and (b) 9.25 percent for any lot realizing $2,500 or less, with a minimum fee of $100 per lot. Cassey Bader of Ritchie Bros. Auctioneers disclosed in a court filing that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Ritchie Group can be reached through: Cassey Bader Ritchie Bros. Auctioneers (America) Inc. 1800 W. Old Highway Odessa, MO 64076 Phone: 816‐663‐4096 About Bear Communications Lawrence, Kan.-based Bear Communications, LLC -- http://www.bearcommunications.net-- is a communications contractor offering aerial construction, underground construction, splicing, subscriber drop placement, residential and commercial installations, residential and commercial wiring, consulting, and testing services. Bear Communications filed its voluntary petition for Chapter 11 protection (Bankr. D. Kansas Case No. 21-10495) on May 28, 2021, disclosing total assets of up to $50 million and total liabilities of up to $100 million. Judge Dale L. Somers presides over the case. W. Thomas Gilman, Esq., at Hinkle Law Firm LLC, represents the Debtor as legal counsel. The U.S. Trustee for Region 20 appointed an official committee of unsecured creditors in the Debtor's case on June 29, 2021. The committee is represented by Robert Hammeke, Esq. BOUCHARD TRANSPORTATION: Claimants Bailey et al., Oppose Joint Plan ------------------------------------------------------------------- Claimants Bailey, et al., and Babson et al. file a further objection to the Joint Plan of Bouchard Transportation Co., Inc. and its Debtor Affiliates Pursuant to Chapter 11. Claimants point out that the Plan seeks to treat the properly prepared and supported claims of Bailey, et al. and Babson et al. as Group Schedule A(i), which would be outside of the Litigation Trust, and somehow, with no financial backing, refer these cases back to the United States District Court for the Southern District of New York. Further, claimants support the concept proposed by Peak Credit LLC and Summit LLC that before further professional fees and administrative expenses are paid out, a carve out of the estates' cash be set aside for the claims of the secured creditors who have maritime liens against the Debtors various vessels. This would include the claims asserted in Bailey and Babson. Claimants all contend that they have a security interest in the vessels for the damages sought. Claimants Bailey et al. and Babson et al. request the Plan be judicially modified to the extent that the Court determines that the Debtors have carried their burden on Bankruptcy Code section 1129(a)(9)(A), requiring that the Plan provide for full payment of professional fees on the plan effective date, and otherwise satisfied confirmation requirements, confirmation should be conditioned on the confirmation order requiring the Debtors to fully fund a separate reserve for the maritime lien claims (including claims for under due the former Bouchard employees claiming herein under the Fair Labor Standards Act) before professionals employed are paid further and before the "Professional Fee Escrow Account" is funded. This relief is needed because the Plan definition of "Waterfall Recovery" calls for full payment of administrative expenses before any amounts are paid on account of "other" secured claims (i.e. maritime lien claims), and said payment priority under the Plan presents significant risk that the Debtors' estates will be left without sufficient cash to pay allowed maritime lien claims after the professional fee escrow has been fully funded, in contravention of provisions of the Sale Order providing that maritime liens attach to cash sale proceeds. A full-text copy of Claimants' objection dated August 17, 2021, is available at https://bit.ly/3k982FY from Stretto, the claims agent. Attorneys for Claimants: HOFMANN & SCHWEITZER Paul T. Hofmann, Esq. (PH1356) 212 W. 35th Street, 12th Floor New York, N.Y. 10001 Tel: (212) 465-8840 Fax: 212-465-8849 E-mail: paulhofmann@hofmannlawfirm.com About Bouchard Transportation Founded in 1918, Bouchard Transportation Co., Inc.'s first cargo was a shipment of coal. By 1931, Bouchard acquired its first oil barge. Over the past 100 years and five generations later, Bouchard has expanded its fleet, which now consists of 25 barges and 26 tugs of various sizes, capacities and capabilities, with services operating in the United States, Canada and the Caribbean. Bouchard and certain of its affiliates sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 20-34682) on Sept. 28, 2020. At the time of the filing, the Debtors estimated assets of between $500 million and $1 billion and liabilities of between $100 million and $500 million. Judge David R. Jones oversees the cases. The Debtors tapped Kirkland & Ellis LLP, Kirkland & Ellis International LLP and Jackson Walker LLP as their legal counsel; Portage Point Partners, LLC as restructuring advisor; Jefferies LLC as investment banker; Berkeley Research Group, LLC as financial advisor; and Grant Thornton, LLP as tax consultant. Stretto is the claims agent. The U.S. Trustee for Region 7 appointed an official committee of unsecured creditors in the Debtors' cases. The committee tapped Ropes & Gray LLP as bankruptcy counsel, Clyde & Co US LLP as maritime counsel, and Berkeley Research Group LLC as financial advisor. BOY SCOUTS OF AMERICA: Insurers Opposed Court-Approved Settlement ----------------------------------------------------------------- Maria Chutchian of Reuters reports that the judge overseeing the Boy Scouts of America bankruptcy on Thursday, August 19, 2021, approved the youth organization's request to sign off on an $850 million settlement to resolve tens of thousands of sex abuse claims. The ruling by U.S. Bankruptcy Judge Laurie Selber Silverstein of Delaware will enable the Boy Scouts to move ahead with a proposed reorganization plan that would allow the group to exit bankruptcy by the end of 2021. "I find that debtors have met the relevant standard," she said in a court hearing. The organization must still obtain approval from creditors to move ahead with the deal in a formal plan to exit bankruptcy. The creditors include victims of the abuse, who generally supported the settlement. Founded in 1910, the Boy Scouts filed for Chapter 11 bankruptcy protection in February 2020 after being hit with a flood of sexual abuse lawsuits. Claims multiplied after several U.S. states passed laws allowing accusers, including adults, to sue over allegations dating back several decades. The Boy Scouts have apologized and said they are committed to fulfilling their "social and moral responsibility to equitably compensate survivors." The organization has said "nothing can undo the tragic abuse that victims suffered" and that it believed the bankruptcy process was the best way to compensate them. The Boy Scouts said in a statement that Silverstein's ruling is “an important development in Boy Scouts of America's financial restructuring. The settlement is backed by 250 local councils but opposed by insurers, who say representatives of the abuse claimants had too much say in the negotiations. The Boy Scouts' insurers, which include Century Indemnity Company and Hartford Financial Services Group, had argued throughout the bankruptcy process that some claims may be fraudulent. Unless the Boy Scouts reach a resolution with the insurers, they are likely to fight over the final bankruptcy plan. Century declined to comment on the judge's ruling. Hartford did not immediately return a request for comment. About 82,000 sex abuse claims have been filed against the Boy Scouts. In addition to the $850 million, the settlement includes the creation of a “child protection committee” designed to ensure safety for Scouts in future. The judge rejected a provision of the deal that would have allowed the Boy Scouts to pay up to $10.5 million in fees and expenses accrued by lawyers representing several thousand victims. She also rejected the organization's request to toss a prior deal through which insurer Hartford Financial Services Group agreed to contribute $650 million to a settlement, leaving its dispute with Hartford lingering. The Boy Scouts effectively abandoned the Hartford agreement after representatives of victims said they would not support it. Lawyers for the Boy Scouts, the insurers and victims of abuse are expected to appear before Silverstein on Aug. 25. 2021. 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 Lawyers Seek Insurer Liability Probe ------------------------------------------------------------------- Law360 reports that a coalition of lawyers for alleged Boy Scouts victims of sexual abuse have urged a Delaware bankruptcy judge to order Century Insurance and Chubb Group to provide records on former affiliate policies and abilities to meet a $1.3 billion settlement payout proposed earlier this 2021. The Official Committee of Tort Claimants told Judge Laurie Selber Silverstein in a letter filed late Friday, August 20, 2021, that affiliates of Century -- described earlier this 2021 as having $1.3 billion available in addition to a separate $650 million Hartford Insurance settlement offer -- are refusing to respond to questions about a related insurer's restructuring. 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. BRAIN ENERGY: Case Summary & Unsecured Creditor ----------------------------------------------- Debtor: Brain Energy Holdings LLC 153 Clinton Street Brooklyn, NY 11201 Business Description: Brain Energy Holdings LLC is a Single Asset Real Estate debtor (as defined in 11 U.S.C. Section 101(51B)). The Company is the fee simple owner of a 6 floor mixed use brownstone located at 153 Clinton Street, Brooklyn, NY having a current value of $4.5 million. Chapter 11 Petition Date: August 24, 2021 Court: United States Bankruptcy Court Eastern District of New York Case No.: 21-42150 Judge: Hon. Nancy Hershey Lord Debtor's Counsel: Douglas Pick, Esq. PICK & ZABICKI LLP 369 Lexington Avenue 12th Floor New York City, NY 10017 Tel: (212) 695-6000 Email: dpick@picklaw.net Total Assets: $4,501,100 Total Liabilities: $4,411,145 The petition was signed by Anthony Spartalis as managing member. The Debtor listed JPMorgan Chase Bank, N.A. as its sole unsecured creditor holding a claim of $29,069. A full-text copy of the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/ZPCAWWA/Brain_Energy_Holdings_LLC__nyebke-21-42150__0001.0.pdf?mcid=tGE4TAMA BRICK HOUSE: Seeks to Use Zions Bank Cash Collateral ----------------------------------------------------- Brick House Properties, LLC asked the U.S. Bankruptcy Court for the District of Utah to authorize its use of cash collateral through and including November 30, 2021, on a final basis. Before the Petition Date, the Debtor obtained financing from Zions Bank, encumbering with a first priority trust deed on a property consisting of three acres of land in two parcels which the Debtor rents out to tenants. The Debtor has granted the Bank an assignment of leases, rents and income from the Property. The Debtor said it needs the cash collateral to be able to continue operating as a going concern and manage the Property. The budget filed with the Court included monthly payments to Zions Bank of $5,315; payment to the Debtor's counsel, Cohne Kinghorn, P.C., for $10,000 and $900 for property taxes, among others. The Debtor's account balance as of August 19, 2021, was $59,694. Monthly income from rents total $8,450. The Debtor assured the Court that it has substantial equity cushion for Zions Bank's claim, which aggregate approximately $781,211 as of the Petition Date, against Property which is valued in excess of $1,234,000 as of the bankruptcy filing. A copy of the motion is available for free at https://bit.ly/3mmolSw from PacerMonitor.com. About Brick House Properties, LLC Brick House Properties filed a Chapter 11 bankruptcy petition (Bankr. D. Utah Case No. 20-26250) on Oct. 21, 2020, estimating under $1 million in both assets and liabilities. Brick House Properties owns two parcels of real property in Riverton, Utah. It leases portions of the property to four related persons and entities: (i) Our Journey School LLC (the "Pre-Elementary School"); (ii) Our Journey, Inc. (the "Elementary School"); (iii) Hidden Valais Ranch LLC (the "Farm"); and (iv) Emily and Josh Aune. Emily Aune is the sole member of the Debtor, and is also the sole member and owner of the Farm. She is a 90% owner in the Pre-Elementary School. The Elementary School is a 501(3)(c) non-profit and is managed by a board which Emily and Josh are members of. Judge Kevin Anderson oversees the case. The Debtor is represented by Cohne Kinghorn, P.C. as counsel. BROWN INDUSTRIES: Seeks Cash Collateral Access ---------------------------------------------- Brown Industries, Inc. asks the U.S. Bankruptcy Court for the Northern District of Georgia, Rome Division, for authority to use cash collateral in accordance with the proposed budget. The Debtor requires the use of cash collateral for the continued operation of its business, to maintain the value of its property and for an effective reorganization. The Debtor is a party to a Receivables-Backed Working Capital Facility with Brown Corporation, BWR Holding, and Leonard J. Fabiano II, whereby the Debtor pledged various of its accounts receivable in exchange for advances of funds on credit by the Lenders. The Lenders assert they are owed in excess of $4.7 million pursuant to the Facility. The Lenders assert liens and security interests in the Debtor's interests in the Receivables. The Lenders also assert that the proceeds received from the Receivables are "cash collateral" as defined in 11 U.S.C. section 363(a). However, the Lenders are all insiders of the Debtor. Further, although the Facility was executed on November 23, 2019, and the Debtor received advances of funds in November 2020 from the Lenders, no UCC-1 financing statements perfecting the Lenders' interest in the Receivables were filed until July 26, 2021. The Debtor is also a party to a Master Lease Agreement dated as of April 28, 2016 with First American Commercial Bancorp, Inc., pursuant to which, the Debtor leased various pieces of equipment from First American under a finance lease arrangement. On August 9, 2018, First American, filed a UCC-1 Financing Statement asserting an interest in the Debtor's assets. However, the Debtor is not aware of any document that it signed granting First American any security interest in or lien on any of its account receivables. The Lease only grants First American a security interest in and lien on the equipment leased to the Debtor pursuant to the Lease. The Debtor is willing to provide these adequate protection for the use of cash collateral: (a) Each of the Lenders and First American will be given a replacement lien in postpetition accounts receivable and proceeds thereof to the extent that, and only to the extent that, such pre-petition liens are valid, properly perfected, non-avoidable and enforceable interests, and in the same relative priority; and (b) Cash collateral may only be used for items set forth in a budget to be approved by the Court, on the terms of the proposed order. A copy of the order and the Debtor's budget is available at https://bit.ly/2Wj0CrL from PacerMonitor.com. The Debtor projects $607,298 in accounts receivable for the week ending September 3, 2021. About Brown Industries, Inc. Brown Industries, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 21-41010) on August 20, 2021. In the petition signed by Darren J. Wilcox, co-chief executive officer and president, the Debtor disclosed up to $50 million in both assets and liabilities. J. Robert Williamson, Esq., at Scroggins & Williamson, represents the Debtor as counsel. C & C ENTITY: Seeks to Hire Schrader Real Estate as Auctioneer -------------------------------------------------------------- C & C Entity, L.P. and its affiliates seek approval from the U.S. Bankruptcy Court for the Eastern District of Pennsylvania to employ Schrader Real Estate and Auction Company, Inc. as their auctioneer. The firm will be facilitating and effectuating the marketing and sale of the estates' assets consistent with the Debtors' bid and sale procedures. Schrader will receive a commission of 5 percent of gross sale proceeds up to $7 million and 6 percent for all sale proceeds in excess of $7 million. In the event the stalking horse bidder is the winning bidder, Schrader has agreed to limit its commission to 2.5 percent on the first $5 million existing offer, with The Food Partners also entitled to receive a similar 2.5 percent commission. In the event the existing stalking horse bid exceeds the $5 million current offer price, Schrader will be entitled to a further commission of 5 percent of any additional amount over $5 million up to $7 million and 6 percent of any additional amounts over $7 million. As disclosed in court filings, Schrader does not represent interests adverse to the Debtors or their estates. The firm can be reached through: Rex D. Schrader II Schrader Real Estate & Auction Co. Inc 950 Liberty Dr. Columbia City, IN 46725 Phone: +1 800-451-2709 Email: rd@schraderauction.com About C & C Entity L.P. C & C Entity, L.P. filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code on Sept. 18, 2020. Affiliates, Cardile Mushrooms Inc. and Cardile Mushrooms C&M, LLC also sought Chapter 11 protection on the same date. Cardile Mushrooms C&M LLC packs and distributes fresh mushrooms like Whites/Buttons, Portabella, Criminis, Oysters and Shiitakes. The cases are jointly administered under C&C Entity, L.P.'s case (Bankr. E.D. Pa. Case No. 20-13775). At the time of the filing, C & C Entity had estimated assets of less than $50,000 and liabilities of less than $50,000. Cardile Mushrooms, Inc. and Cardile Mushrooms C&M, LLC each disclosed assets of up to $50,000 and liabilities between $1,000,000 and $10,000,000. C & C President Charles Cardile, Jr. signed the petitions. Judge Ashely M. Chan oversees the case. The Debtor tapped Offit Kurman, P.C. as its legal counsel and Umbreit Wileczek & Associates, P.C. as its accountant. CAREVIEW COMMUNICATIONS: Incurs $3 Million Net Loss in 2nd Quarter ------------------------------------------------------------------ Careview Communications, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $3.02 million on $1.55 million of net revenues for the three months ended June 30, 2021, compared to a net loss of $3.08 million on $1.68 million of net revenues for the three months ended June 30, 2020. For the six months ended June 30, 2021, the Company reported a net loss of $5.51 million on $3.87 million of net revenues compared to a net loss of $6.02 million on $3.39 million of net revenues for the same period a year ago. As of June 30, 2021, the Company had $5.20 million in total assets, $113.44 million in total liabilities, and a total stockholders' deficit of $108.24 million. The Company has experienced net losses and significant cash outflows from cash used in operating activities over the past years. As of and for the six months ended June 30, 2021, the Company had an accumulated deficit of approximately $193,317,000, loss from operations of approximately $(503,000), net cash provided by operating activities of approximately $223,000, and an ending cash balance of approximately $428,000. As of June 30, 2021, the Company had cash and a working capital deficit of approximately $85,000,000 consisting primarily of notes payables and senior secured notes. "Management has evaluated the significance of the conditions described above in relation to the Company's ability to meet its obligations and concluded that, without additional funding, the Company will not have sufficient funds to meet its obligations within one year from the date the condensed consolidated financial statements were issued. While management will look to continue funding operations by increased sales volumes and raising additional capital from sources such as sales of its debt or equity securities or loans to meet operating cash requirements, there is no assurance that management's plans will be successful. Management continues to monitor the immediate and future cash flows needs of the company in a variety of ways which include forecasted net cash flows from operations, capital expenditure control, new inventory orders, debt modifications, increases sales outreach, streamlining and controlling general and administrative costs, competitive industry pricing, sale of equities, debt conversions, new product or services offerings, and new business partnerships. The Company's net losses, cash outflows, and working capital deficit raise substantial doubt exists about the Company's ability to continue as a going concern through August 16, 2022. The accompanying condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. This basis of accounting contemplates the recovery of the Company's assets and the satisfaction of liabilities in the normal course of business. A successful transition to attaining profitable operations is dependent upon achieving a level of positive cash flows adequate to support the Company's cost structure," CareView stated in the regulatory filing. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1377149/000138713121008561/crvw-10q_063021.htm About CareView Communications CareView Communications, Inc. -- http://www.care-view.com-- is a provider of products and on-demand application services for the healthcare industry, specializing in bedside video monitoring, software tools to improve hospital communications and operations, and patient education and entertainment packages. Its proprietary, high-speed data network system is the next generation of patient care monitoring that allows real-time bedside and point-of-care video monitoring designed to improve patient safety and overall hospital costs. The entertainment packages and patient education enhance the patient's quality of stay. CareView is dedicated to working with all types of hospitals, nursing homes, adult living centers and selected outpatient care facilities domestically and internationally. The Company's corporate offices are located at 405 State Highway 121 Bypass, Suite B-240, Lewisville, TX 75067. Careview reported a net loss of $11.68 million for the year ended Dec. 31, 2020, compared to a net loss of $14.14 million for the year ended Dec. 31, 2019. As of Dec. 31, 2020, the Company had $5.50 million in total assets, $108.76 million in total liabilities, and a total stockholders' deficit of $103.26 million. BDO USA, LLP, in Dallas, Texas, the Company's auditor since 2010, issued a "going concern" qualification in its report dated April 8, 2021, citing that the Company has suffered recurring losses from operations and has accumulated losses since inception that raise substantial doubt about its ability to continue as a going concern. CARVER BANCORP: Incurs $2.8 Million Net Loss in First Quarter ------------------------------------------------------------- Carver Bancorp, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $2.76 million on $5.33 million of total interest income for the three months ended June 30, 2021, compared to a net loss of $812,000 on $4.79 million of total interest income for the three months ended June 30, 2020. As of June 30, 2021, the Company had $682.93 million in total assets, $631.24 million in total liabilities, and $51.69 million in total equity. At June 30, 2021, total assets were $682.9 million, reflecting an increase of $6.2 million, or 0.9%, from total assets of $676.7 million at March 31, 2021. The increase was primarily attributable to increases of $3.1 million in cash and cash equivalents and $4.7 million in the Bank's net loan portfolio, partially offset by a decrease of $2.4 million in the investment portfolio. Total cash and cash equivalents increased $3.1 million, or 4.1%, from $75.6 million at March 31, 2021 to $78.7 million at June 30, 2021. The increase in cash was primarily due to an increase in total deposits of $11.7 million and paydowns received on investment securities. These increases were partially offset by net loan activity and repayment of advances on the PPPLF. In addition, the Company made a payment of approximately $3.2 million to settle the deferred interest on its subordinated debt associated with its trust preferred securities during the three months ended June 30, 2021. Total investment securities decreased $2.4 million, or 2.5%, to $91.9 million at June 30, 2021, compared to $94.3 million at March 31, 2021 due to scheduled principal payments received and early payoff of a $1.7 million mortgage-backed security in the held-to-maturity portfolio during the first quarter. Gross portfolio loans increased $4.8 million, or 1.0%, to $488.3 million at June 30, 2021, compared to $483.5 million at March 31, 2021 primarily due to new loan originations of $45.5 million, of which $14.1 million were part of the SBA's PPP, and $8.4 million were from loan pool purchases. The new volume was partially offset by attrition and payoffs of $47.5 million. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1016178/000101617821000017/carv-20210630.htm About Carver Bancorp Carver Bancorp, Inc., is the holding company for Carver Federal Savings Bank, a federally chartered savings bank. The Company is headquartered in New York, New York. The Company conducts business as a unitary savings and loan holding company, and the principal business of the Company consists of the operation of its wholly-owned subsidiary, Carver Federal. Carver Federal was founded in 1948 to serve African-American communities whose residents, businesses and institutions had limited access to mainstream financial services. The Bank remains headquartered in Harlem, and predominantly all of its seven branches and four stand-alone 24/7 ATM centers are located in low- to moderate-income neighborhoods. Carver Bancorp reported a net loss of $3.89 million for the year ended March 31, 2021, compared to a net loss of $5.42 million for the year ended March 31, 2020. As of March 31, 2021, the Company had $676.75 million in total assets, $624.45 million in total liabilities, and $52.30 million in total equity. CENTRAL SIGNS: Cash Collateral Bid Moot Following Plan Approval --------------------------------------------------------------- Judge Karen S. Jennemann of the U.S. Bankruptcy Court for the Middle District of Florida denied as moot Central Signs, LLC's Motion to Use Cash Collateral, the Debtor's Plan of Reorganization having been confirmed. A copy of the order is available for free at https://bit.ly/2UGtqJR from PacerMonitor.com. About Central Signs Central Signs, LLC -- https://www.central-signs.com/ -- designs, manufactures, installs and maintains custom signage and lighting. It is the fee simple owner of a warehouse and factory located at 517 Mason Ave., Daytona Beach, Fla., having a comparable value of $650,000. Central Signs sought protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 21-01312) on March 26, 2021. In the petition signed by Charles H. Hutcherson, manager, the Debtor disclosed $987,080 in assets and $3,597,627 in liabilities. Anne-Marie L. Bowen, P.A. and Latham, Luna, Eden & Beaudine, LLP represent the Debtor as legal counsel. Judge Karen S. Jennemann is assigned to the case. CHIDO INC: Seeks Approval to Hire A-Z Complete as Accountant ------------------------------------------------------------ Chido, Inc. seeks approval from the U.S. Bankruptcy Court for the Western District of Texas to hire A-Z Complete Business Service, Inc. as its accountant. The firm's services include preparing the Debtor's monthly operating reports, 90-day cash flow projection, 2020 Form 1120 tax return, and sales tax reports, and working on cash flow projections for the Debtor's Chapter 11 plan of reorganization. The firm's hourly rates are as follows: Accountant $50 per hour Other Staff $35 per hour A retainer of $600 has been paid to Martha Pacheco, the firm's accountant who will be providing the services. Ms. Pacheco disclosed in a court filing that her firm does not represent interests adverse to the Debtor and its estate. A-Z Complete can be reached through: Martha Pacheco A-Z Complete Business Service, Inc. 805 E Yandell Dr. El Paso, Texas, 79902 Tel: (915) 542-1211 About Chido Inc. Chido, Inc. filed its voluntary petition for Chapter 11 protection (Bankr. W.D. Tex. Case No. 21-30449) on June 4, 2021, listing up to $500,000 in assets and up to $50,000 in liabilities. Judge H. Christopher Mott oversees the case. The Law Office of E.P. Bud Kirk serves as the Debtor's legal counsel. CLINIGENCE HOLDINGS: Incurs $2.8 Million Net Loss in Second Quarter ------------------------------------------------------------------- Clinigence Holdings, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $2.79 million on $5.29 million of sales for the three months ended June 30, 2021, compared to net income of $227,306 on $378,588 of sales for the three months ended June 30, 2020. For the six months ended June 30, 2021, the Company reported a net loss of $7.27 million on $7.30 million of sales compared to a net loss of $895,424 on $844,218 of sales for the same period during the prior year. As of June 30, 2021, the Company had $77.36 million in total assets, $10.09 million in total liabilities, and $67.26 million in total stockholders' equity. The Company had cash of $4,795,175 for the six months ended June 30, 2021, compared to $ 26,931 as of Dec. 31, 2020, an increase of $4,768,244 or 177%. Clinigence stated, "Historically, we have had a working capital deficiency and we have operated at a net loss since inception. With the acquisition of AHP we generate cash primarily from capitation contracts. In order to execute our business plans, including the expansion of operations, our primary capital requirements in 2021 are likely to rise. It is not possible to quantify those costs at this point in time, in that they depend on AHP, AHAs and Clinigence Health's business opportunities and the state of the overall economy. We anticipate raising capital in the private markets to cover any such costs, though there can be no guaranty we will be able to do so on terms we deem to be acceptable. We do not have any plans at this point in time to obtain a line of credit or other loan facility from a commercial bank. We believe we have sufficient liquidity to fund our operations through at least the next 12 months." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1479681/000160706221000272/clnh081321form10q.htm About Clinigence Holdings Clinigence Holdings, a fully reporting, publicly-held company -- http://www.clinigencehealth.com-- is a healthcare information technology company providing an advanced, cloud-based platform that enables healthcare organizations to provide value-based care and population health management. The Clinigence platform aggregates clinical and claims data across multiple settings, information systems and sources to create a holistic view of each patient and provider and virtually unlimited insights into patient populations. Clinigence reported a net loss of $5.65 million in 2020 following a net loss of $7.12 million in 2019. As of March 31, 2021, the Company had $75.93 million in total assets, $9.67 million in total liabilities, and $66.26 million in total stockholders' equity. New York, NY-based Marcum LLP, the Company's auditor since 2020, issued a "going concern" qualification in its report dated March 31, 2021, citing that the Company has a significant working capital deficiency, has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. CORE & MAIN: S&P Raises ICR to 'B+' on Completed IPO ---------------------------------------------------- S&P Global Ratings raised its issuer credit rating on U.S. water infrastructure distributor Core & Main L.P. to 'B+' from 'B' and assigned its 'B+' issue-level and '4' recovery ratings (rounded estimate: 40%) to the company's $1.5 billion term loan B due 2028. The stable outlook reflects S&P's expectation that adjusted leverage will remain in the 3.5x-4.0x range over the next 12 months, based on favorable end-market demand combined with lower debt. S&P said, "We expect credit metrics to benefit from lower debt and interest expense. We expect debt to EBITDA of 3.5x-4.0x over the next 12 months, down from slightly over 6x in fiscal 2021 (ended Jan. 31, 2021) supported by about $800 million in debt reduction." Core & Main used the $664 million of net IPO proceeds, its new $1.5 billion term loan B, and $210 million of cash on hand to retire its entire capital structure and pay associated fees. The company repaid the $1.26 billion outstanding on its term loan B, its $750 million of outstanding senior notes due 2025, and its $300 million outstanding of senior payment-in-kind notes due 2024. As part of the transaction, Core & Main also extended the maturity of its asset-based lending (ABL) facility to 2026 and upsized the facility to $850 million from $700 million. S&P said, "We expect Core & Main to benefit from growth in its end markets, contributions from acquisitions, and its relatively stable margins, despite commodity price inflation. We anticipate the company will benefit from strong volume growth across its product lines, including pipes, valves, and fittings and storm drainage, fire protection, and meter products. In addition, we forecast the robust new construction activity in the residential sector, which accounts for 18% of Core & Main's sales, will supplement its growth in municipal and commercial demand over the next year. The company derives about 45% of its revenue from municipalities for maintaining their existing water systems or constructing new ones and 37% from the commercial end markets. Our expectation for a 12% increase in Core & Main's revenue for 2022 includes the contributions from recent acquisitions, which include $217 million in acquisitions completed in fiscal 2021 and about $160 million completed so far in fiscal 2022. We also expect Core & Main to benefit from inflation in the prices of its commodity-based products, such as PVC pipe, given its ability to pass through its rising commodity costs to its customers. As a result, we expect stable adjusted EBITDA margins of 10%-11% in fiscal 2022." Core & Main remains financial sponsor owned, despite the IPO. The company will remain majority owned by Clayton, Dubilier & Rice LLC (CD&R), whose ownership stake remains at about 80%. As a result, S&P views the company as financial sponsor owned, which incorporates its expectation for a more aggressive financial policy, potentially including leveraging transactions and dividend distributions. However, if CD&R continues to divest its equity stake after the IPO and reduces its control over Core & Main's operations, S&P believes risk would decline. S&P said, "The stable outlook reflects our expectation that adjusted leverage will remain in the 3.5x-4.0x range over the next 12 months, based on favorable end-market demand combined with lower debt. "We could raise our rating on Core & Main over the next 12 months if the company maintains adjusted leverage well below 4x and we expect the financial sponsors to relinquish control over the intermediate term or lessen ownership below 40%." Although unlikely given S&P's expectation for growth in Core & Main's end markets, we could lower our rating over the next 12 months if: -- The company takes on a more aggressive financial policy including large debt-financed acquisitions or dividends such that debt to EBITDA exceeds 5x for a sustained period; or -- EBITDA margins deteriorate below 8% (compared to our 10%-11% assumption). This could occur as a result of unexpected high and sudden costs increases that the company cannot immediately pass on to customers, as well as deterioration from acquisitions. DANE HEATING: Seeks to Use Frozen Bank Funds -------------------------------------------- Dane Heating & Air Conditioning, Inc. asked the U.S. Bankruptcy Court for the Northern District of Illinois to authorize the use of cash collateral, in particular, the frozen bank accounts at PNC Bank with a balance of $5,800 and which the Debtor proposed to use to operate its business. The Debtor has been subject to one creditor who issued citations or non-wage garnishment to third parties resulting in the freezing of the bank accounts. Pursuant to the budget filed in Court, the Debtor provided for $61,596 in total monthly expenses, details of which may be accessed for free at https://bit.ly/3854NJV from PacerMonitor.com. As of the Petition Date, the Debtor owed secured lender, Kapitus, LLC, $4,664 for principal and interest on a prepetition loan Kapitus extended to the Debtor. Kapitus holds a perfected lien on substantially all of the Debtor's prepetition assets. LeLund Enterprises, Inc. -- as Subordinate Lien Holder -- may have a secured interest in the Debtor's accounts arising from a non-wage garnishment in Cook County against the debtor's account at PNC Bank. The Debtor said LeLund's garnishment lien is inferior to the Kapitus lien and is either wholly unsecured or partially secured. The Debtor proposed to grant the Secured Lender and the Subordinate Lien Holder replacement liens in the same priority existing as of the Petition Date, without prejudice to a final determination of the Subordinate Lien Holder's lien priority or a lien avoidance under Sections 547(a) and 506 of the Bankruptcy Code. In addition, the Debtor proposed to grant the Secured Lender an administrative expense claim under Section 507(b) of the Bankruptcy Code, and pay the Secured Lender $500 per month until further Court order. The Debtor is seeking that the freeze on its account at PNC Bank be lifted to allow the Debtor access to the funds. Other than the cash collateral, the Debtor said it does not have sufficient working capital available to finance its on-going business operations. A copy of the motion is available for free at https://bit.ly/3854NJV from PacerMonitor.com. The Court will consider the request at a hearing on August 26, 2021 at 9 a.m. Counsel for the Debtor: Richard G. Larsen, Esq. Springer Larsen Greene, LLC 300 S. County Farm Road, Suite G Wheaton, IL 60187 Telephone: (630) 510-0000 Email: rlarsen@springerbrown.com About Dane Heating & Air Conditioning, Inc. Dane Heating & Air Conditioning, Inc. filed a petition under Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ill. Case No. 21-09701) on August 18, 2021. On the Petition Date, the Debtor estimated $100,000 to $500,000 in assets and $500,000 to $1,000,000 in liabilities. The petition was signed by Dane Jajic, president. Judge Deborah L. Thorne is assigned to the case. Springer Larsen Greene, LLC serves as counsel for the Debtor. Ken Novak has been appointed Subchapter V Trustee for the Debtor. DANIEL R. ROUBEIN: Case Summary & 6 Unsecured Creditors ------------------------------------------------------- Debtor: Daniel R. Roubein MD PA 107 Faries Park Decatur, IL 62526 Chapter 11 Petition Date: August 24, 2021 Court: United States Bankruptcy Court Central District of Illinois Case No.: 21-70617 Judge: Hon. Mary P. Gorman Debtor's Counsel: David K. Welch, Esq. BURKE, WARREN, MACKAY & SERRITELLA, P.C. 330 N. Wabash 21st Floor Chicago, IL 60611 Tel: 312-840-7122 E-mail: dwelch@burkelaw.com Total Assets: $1,082 Total Liabilities: $1,793,578 The petition was signed by Daniel R. Roubein M.D. as president. A full-text copy of the petition containing, among other items, a list of the Debtor's six unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/65TCO3Y/Daniel_R_Roubein_MD_PA__ilcbke-21-70617__0001.0.pdf?mcid=tGE4TAMA DEYO TRANSPORTATION: Seeks to Hire Lane Law Firm as Legal Counsel ----------------------------------------------------------------- Deyo Transportation Services, LLC, seeks approval from the U.S. Bankruptcy Court for the Western District of Texas to hire The Lane Law Firm, PLLC to serve as legal counsel in its Chapter 11 case. The firm's services include: (a) assisting the Debtor in the administration of the case; (b) assisting the Debtor in analyzing its assets and liabilities, investigating the extent and validity of lien and claims, and participating in and reviewing any proposed asset sales or dispositions; (c) attending meetings and negotiating with representatives of secured creditors; (d) assisting the Debtor in the preparation, analysis, and negotiation of any plan of reorganization and disclosure statement; (e) taking all necessary action to protect and preserve the interests of the Debtor; (f) appearing, as appropriate, before the bankruptcy court, the appellate courts and other courts in which matters may be heard; and (g) performing all other necessary legal services. The firm's hourly rates are as follows: Robert C. Lane, Esq. $450 per hour Associate Attorneys $250 - $375 per hour Paralegals/legal assistants $125 - $170 per hour The Debtor paid $30,000 to the law firm for financial advice and representation. Robert Lane, Esq., the firm's attorney who will be providing the services, disclosed in a court filing that he is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Robert C. Lane The Lane Law Firm, PLLC 6200 Savoy, Suite 1150 Houston, TX 77036 Tel.: (713) 595-8200 Fax: (713) 595-8201 Email: notifications@lanelaw.com About Deyo Transportation Services Deyo Transportation Services, LLC filed a petition for Chapter 11 protection (Bankr. W.D. Texas Case No. 21-70126) on Aug. 16, 2021, listing as much as $500,000 in both assets and liabilities. Judge Tony M. Davis oversees the case. Robert Chamless Lane, Esq., at The Lane Law Firm, LLC, represents the Debtor as legal counsel. FORUM ENERGY: S&P Alters Outlook to Stable, Affirms 'CCC+' ICR -------------------------------------------------------------- S&P Global Ratings revised its outlook on Forum Energy Technologies Inc., a Houston-based oilfield products and services provider, to stable from negative and affirmed its 'CCC+' issuer credit rating. S&P also affirmed its 'CCC+' issue-level on its 9% convertible secured notes due 2025 and the recovery rating remains '4'. S&P withdrew its 'CCC-' issue-level and '6' recovery ratings on the company's 6.25% senior unsecured notes due 2021, as Forum has repaid these notes. The stable outlook reflects S&P's view that despite expecting leverage to remain at unsustainable levels over the next 12 months, including funds from operations (FFO) to debt of about 5%, we expect Forum will maintain adequate liquidity and generate a small amount of FOCF. S&P's 'CCC+' rating reflects Forum's unsustainable credit measures. S&P said, "We expect a modest improvement in cash flow and leverage metrics as a result of the company's debt repayment and cost reduction efforts, as well as improving sector conditions. However, we believe metrics will remain unsustainable over the next 12 to 24 months, with FFO to debt of about 5% and debt to EBITDA of about 8x. Forum repaid about $58 million of principal amount of its 2025 notes during the first half of 2021, which it funded using a portion of the $105 million in proceeds from the sale of its ABZ and Quadrant valve brands in December 2020. Forum had about $259 million of its 2025 notes remaining as of mid-2021. In addition, Forum undertook cost reduction efforts throughout 2020, which included the discontinuation of less profitable product and service lines, closing of facilities, and headcount reductions, which we expect to provide a sustained improvement in its fixed cost base. Despite our expectation that leverage metrics will remain unsustainable, we expect the company will generate a modest amount of positive FOCF and maintain adequate liquidity for at least the next 12 months, supporting our outlook revision to stable from negative. We project annual revenue growth between 5% and 10% in both 2021 and 2022 and capital expenditures of $5 million-$10 million per year." Sector conditions in the oilfield services sector remain challenging despite recent improvements. Strengthening crude oil and natural gas prices in the first half of 2021 supported a slow but steady increase in drilling and completions activity in the U.S. and internationally, which led to a modest improvement in revenues for Forum. S&P said, "However, the active rig count remains well below pre-pandemic levels and we expect capital discipline from exploration and production (E&P) companies will continue to moderate the pace of demand growth for oilfield product and service providers like Forum. In addition, we believe the oversupply of oilfield equipment will continue to hamper pricing power and margins in the near term." Leverage measures could benefit from Forum's 2025 notes' equity conversion feature. About $120 million of Forum's $259 million of 9% convertible secured notes would be mandatorily converted into equity upon meeting certain trading thresholds, which would result in improved leverage measures. Forum's common stock currently trades at around two-thirds of the required $30 per share 20 trading day minimum average price for the conversion feature to be triggered. S&P said, "The stable outlook reflects our view that even though we expect Forum's leverage to remain at an unsustainable level over the next 12 months, we expect it will maintain adequate liquidity and generate a modest amount of positive free operating cash flow, lowering the chance of a downgrade over the same period. We expect FFO to debt to average about 5% and debt to EBITDA of 8x, over the next 12 months. "We could lower the rating if the company's liquidity weakens or if we expect the company to engage in a distressed debt transaction. This would most likely result from sustained low commodity prices affecting exploration and production (E&P) spending levels and drilling activity, reducing demand for products and services that Forum offers. "We could consider an upgrade if Forum's credit metrics improve such that we no longer consider them unsustainable, including FFO to debt comfortably above 12%, while also maintaining adequate liquidity. This would most likely result from an improvement in commodity prices leading to higher demand for Forum's products and services and the possible conversion of Forum's convertible notes into equity." FUSE GROUP: Posts $20K Net Income in Third Quarter -------------------------------------------------- Fuse Group Holding Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing net income of $20,058 on $150,000 of revenue for the three months ended June 30, 2021, compared to net income of $52,000 on $200,000 of revenue for the three months ended June 30, 2020. For the nine months ended June 30, 2021, the Company reported a net loss of $13,517 on $500,000 of revenue compared to net income of $16,156 on $650,000 of revenue for the same period during the prior year. As of June 30, 2021, the Company had $2.16 million in total assets, $125,276 in total liabilities, and $2.04 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1636051/000118518521001137/fuseent20210630_10q.htm About Fuse Group Headquartered in Arcadia, CA, Fuse Group provides consulting services to mining industry clients to find acquisition targets within the parameters set by the clients, when the mine owner is considering selling its mining rights. The services of Fuse Group and Fuse Processing, Inc. include due diligence on the potential mine seller and the mine, such as ownership of the mine and whether the mine meets all operation requirements and/or is currently in operation. Fuse Group reported a net loss of $51,411 for the year ended Sept. 30, 2020, compared to a net loss of $79,656 for the year ended Sept. 30, 2019. As of Sept. 30, 2020, the Company had $1.24 million in total assets, $191,102 in total liabilities, and 1.05 million in total stockholders' equity. El Segundo, Calif.-based Prager Metis, CPA's LLP, the Company's auditor since 2019, issued a "going concern" qualification in its report dated Dec. 16, 2020, citing that the Company had recurring losses from operations and an accumulated deficit. These conditions, among others, raise substantial doubt about the Company's ability to continue as a going concern. GIRARDI & KEESE: Lisa Rinna Dragged in Erika's Embezzlement Probe ----------------------------------------------------------------- Ryan Naumann of Radar Online reports that Real Housewives of Beverly Hills star Lisa Rinna is set to be deposed as part of the investigation into Erika Jayne's finances. The lawyer in charge of looking into Jayne, Ronald Richards, revealed he has plans to question Lisa under oath. Richards is currently looking into claims Jayne helped her husband Thomas Girardi embezzle millions of his former clients' money. His creditors claim the duo spent the money to help fund their lavish lifestyle. As part of Girardi's Chapter 7 bankruptcy, which his creditors forced him into earlier this year, the trustee presiding over the case sued Jayne for the return of $25 million. The trustee claims Girardi transferred millions to Jayne's entertainment company EJ Global in an attempt to hide his assets. The once-respected lawyer's former clients and business partners are currently going after Jayne for money owed to them by Girardi. Jayne reportedly spent $14 million on American Express purchased from 2008 until 2020. Richards recently spoke about the case to Adam Newell on YouTube. He said he will have trouble getting the court to allow him to question Rinna. He points out Rinna has been defending Jayne publicly and on this season of RHOBH. "If you combine [the business manager] with the fact that Lisa Rinna's been defending her, and she's been vouching for her saying that she wasn't involved, so if you're gonna make a statement of fact, you better have a basis of knowledge," he said. "And so if Lisa Rinna is defending her, then we're going to get testimony from her to see why does she have personal knowledge that Erika Girardi has no liability here." During his interview, Richards added, "Lisa Rinna has gone beyond just saying, 'Hey, I'm giving her the benefit of the doubt or innocent until proven guilty." "She's gone to the further extreme and said, 'She didn't do anything. She's basically innocent,'" he said. "Well, is that just a lie or are you sort of grandstanding, or do you have facts?" he asked. Over the weekend, Jayne posted screenshots of two death threats she received on social media. Rinna jumped in pleading with people to stop sending threats. Neither commented on the claims Jayne spent the $20-25 million meant for burn victims, orphans, and widows. Richards wasn't convinced with Rinna's defense writing, "Pretending you care @lisarinna while your referring EG to your biz manager to make a successor company and publicly claiming she lacks any legal culpability while doing absolutely nothing for the victims falls on deaf ears and rings hallow. This is not TV, your words do matter." As Radar previously reported, Jayne attempted to have Richards removed from the investigation. She claimed he harassed her online by constantly talking about the case. The judge wasn't swayed and ordered Richards to proceed. About Girardi & Keese Girardi and Keese or Girardi & Keese was a Los Angeles-based law firm founded in 1965 by lawyers Thomas Girardi and Robert Keese. It served clients in California in a variety of legal areas. It was known for representing plaintiffs against major corporations. An involuntary Chapter 7 petition (Bankr. C.D. Cal. Case No. 20-21022) was filed in December 2020 against GIRARDI KEESE by alleged creditors Jill O'Callahan, Robert M. Keese, John Abassian, Erika Saldana, Virginia Antonio, and Kimberly Archie. The petitioners' attorneys: Andrew Goodman Goodman Law Offices, Apc Tel: 818-802-5044 E-mail: agoodman@andyglaw.com Elissa D. Miller, a member of the firm SulmeyerKupetz, has been appointed as Chapter 7 trustee. The Chapter 7 trustee can be reached at: Elissa D. Miller 333 South Grand Ave., Suite 3400 Los Angeles, California 90071-1406 Telephone: (213) 626-2311 Facsimile: (213) 629-4520 E-mail: emiller@sulmeyerlaw.com GIRARDI & KEESE: Thomas Girardi Disbarred in Central California --------------------------------------------------------------- Law360 reports that a California federal judge disbarred infamous trial lawyer Thomas V. Girardi on Friday, August 20, 2021, forbidding him from practicing law in federal courts in Los Angeles and the surrounding region. Plaintiffs attorney Thomas V. Girardi was disbarred from the Central District of California on Friday, August 20, 2021. Girardi, who was diagnosed with Alzheimer's disease, has been accused of stealing from former clients. Chief U.S. District Judge Philip Gutierrez struck Girardi from the list of lawyers authorized to practice law in the U.S. District Court for the Central District of California. About Girardi & Keese Girardi and Keese or Girardi & Keese was a Los Angeles-based law firm founded in 1965 by lawyers Thomas Girardi and Robert Keese. It served clients in California in a variety of legal areas. It was known for representing plaintiffs against major corporations. An involuntary Chapter 7 petition (Bankr. C.D. Cal. Case No. 20-21022) was filed in December 2020 against GIRARDI KEESE by alleged creditors Jill O'Callahan, Robert M. Keese, John Abassian, Erika Saldana, Virginia Antonio, and Kimberly Archie. The petitioners' attorneys: Andrew Goodman Goodman Law Offices, Apc Tel: 818-802-5044 E-mail: agoodman@andyglaw.com Elissa D. Miller, a member of the firm SulmeyerKupetz, has been appointed as Chapter 7 trustee. The Chapter 7 trustee can be reached at: Elissa D. Miller 333 South Grand Ave., Suite 3400 Los Angeles, California 90071-1406 Telephone: (213) 626-2311 Facsimile: (213) 629-4520 E-mail: emiller@sulmeyerlaw.com GIRARDI & KEESE: Tom Moves to Assisted Facility as Mansion Sold Of ------------------------------------------------------------------ Ryan Neumann of Radar Online reports that Real Housewives of Beverly Hills star Erika Jayne's estranged husband Thomas Girardi was spotted checking out senior living facilities in Los Angeles as his Pasadena mega-mansion is set to be sold off. The 82-year-old onetime hotshot lawyer was photographed touring a home with an assistant. Girardi, who was known for rocking custom designer suits, was wearing a purple baggy sweater with a ruffled pair of khaki pants. At one point, Girardi had a fortune worth an estimated $264 million. Girardi, who is suffering from dementia, currently lives in a 4-bedroom, 9-bathroom, 10,277 sq. ft. mansion by himself. Jayne left her husband of 21 years as soon as his financial problems started to pile up. For the entire 2021, Girardi has been living in the mansion with a skeleton crew of staff. Earlier this year, he was forced into Chapter 7 bankruptcy by his many creditors. They told the court he refused to pay up on tens of millions owed. His former clients, including orphans, widows, and fire burn victims, believe Girardi embezzled their money to help fund his lavish lifestyle with Jayne. In one federal lawsuit, the Bravo star is a named defendant and accused of playing a role in the scheme. As Radar first reported, the trustee presiding over the bankruptcy recently sued Jayne for the return of $25 million and luxury items. He believes Girardi transferred assets to his wife at a time when he knew he could not pay his debts. For her part, Jayne has publicly denied knowing anything about her husband's finances. However, the record show her entertainment company EJ Global received between $20-$25 million from 2008 until 2020. The lawyer investigating Jayne believes the reality star spent $14 million in American Express purchases alone. Jayne refuses to return a dime to the bankruptcy claiming everything in her possession were "gifts" from her husband, despite her knowing many people claim he screwed them over. About Girardi & Keese Girardi and Keese or Girardi & Keese was a Los Angeles-based law firm founded in 1965 by lawyers Thomas Girardi and Robert Keese. It served clients in California in a variety of legal areas. It was known for representing plaintiffs against major corporations. An involuntary Chapter 7 petition (Bankr. C.D. Cal. Case No. 20-21022) was filed in December 2020 against GIRARDI KEESE by alleged creditors Jill O'Callahan, Robert M. Keese, John Abassian, Erika Saldana, Virginia Antonio, and Kimberly Archie. The petitioners' attorneys: Andrew Goodman Goodman Law Offices, Apc Tel: 818-802-5044 E-mail: agoodman@andyglaw.com Elissa D. Miller, a member of the firm SulmeyerKupetz, has been appointed as Chapter 7 trustee. The Chapter 7 trustee can be reached at: Elissa D. Miller 333 South Grand Ave., Suite 3400 Los Angeles, California 90071-1406 Telephone: (213) 626-2311 Facsimile: (213) 629-4520 E-mail: emiller@sulmeyerlaw.com GREENSILL CAPITAL: Administrators Try to Stave Off Lawsuit in U.S. ------------------------------------------------------------------ Jenny Wiggins of The Financial Review reports that Greensill Capital's main UK operating business has filed for bankruptcy in the US to protect its assets ahead of a September hearing on a lawsuit brought by former client Bluestone Resources. The Chapter 15 filing, which was made last week, in the US Bankruptcy Court is separate to the earlier Chapter 11 bankruptcy filing of the supply chain finance group's US operations. It comes as Greensill Capital UK's (GCUK) administrators try to stop the potential seizure of assets. The GCUK administrators said they want to "protect GCUK's assets and operations in the United States and stay the commencement or continuation of US litigation." Trusts associated with Mr Greensill's family, including the AD Greensill Family Trust and the Peter Greensill Family Trust as well as the Pine Valley Investments Trust (of which founder Lex Greensill and his brother Peter are directors), have been named as corporate owners of GCUK. Each of the trusts owns more than 10 percent of GCUK's Australian parent, Greensill Capital Pty Ltd. Former client Bluestone Resources, a US coal miner owned by the Republican governor of West Virginia, filed a lawsuit against GCUK, founder Lex Greensill and former vice-chairman Roland Hartley-Urquhart in March that alleged fraud and breach of contract, and asked for unspecified damages. GCUK, Mr. Greensill and Mr. Hartley-Urquhart are due to respond to the Bluestone complaint by September 13 with a pretrial conference scheduled for September 20, 2021. GCUK asked for the Chapter 15 petition to be heard before that date and a hearing has been scheduled for September 10, 2021. The Bluestone lawsuit alleged that its $US780 million ($1.09 billion) in financing received from Greensill Capital included "prospective receivables" based on existing customers but also entities "that were not and might not ever become customers of Bluestone." How exactly Greensill Capital provided finance to its clients is being scrutinised by regulators, including the UK's Serious Fraud Office. In its Chapter 15 filing, GCUK said it had three types of working capital financing: supply chain finance, accounts receivable finance and future accounts receivables finance "under which GCUK would provide funding to clients against future accounts receivable expected from specified client customers." The filling noted that insurance policies provided by the Bond & Credit Company, which is owned by Japan's Tokio Marine, represented "significant contingent liabilities for GCUK that are likely to crystallise in the near term" because the firm has to bear the first loss if claims are made and because it agreed to directly indemnify some loss payees. Octet CEO Clive Isenberg, who will appear before a parliamentary committee on Wednesday, says some of Greensill Capital's business practices were "unacceptable." Earnd co-founder Josh Vernon learnt some valuable lessons about what it means to have your company acquired through his one year under the Greensill Capital umbrella. How a local fintech survived the Greensill saga Each Bond & Credit Co policy consists of two inter-linked policies, one issued to Greensill Bank and Greensill Pty Ltd, and another issued to GCUK and Greensill Pty Ltd. Separately, the US Bankruptcy Court has approved the sale of securitisation specialist Finacity, a subsidiary of Greensill Capital's US business, to US private group White Oak Global Advisors despite concerns raised by creditors. White Oak, which already provides some trade finance, said it had previously tried to buy Finacity before it was sold to Greensill Capital. It said last month that it saw it as “an attractive opportunity independent from Greensill Capital’s bankruptcy.” White Oak is in talks with former Greensill Capital client GFG Alliance over providing financing to its Australian businesses, including the Whyalla Steelworks. About Greensill Capital Greensill is an independent financial services firm and principal investor group based in the United Kingdom and Australia. It offers structures trade finance, working capital optimization, specialty financing and contract monetization. Greensill Capital Pty is the parent company for the Greensill Group. Greensill began to unravel in March 2021 when its main insurer stopped providing credit insurance on US$4.1 billion of debt in portfolios it had created for clients including Swiss bank Credit Suisse. Greensill Capital (UK) Limited and Greensill Capital Management Company (UK) Limited filed for insolvency in Britain on March 8, 2021. Matthew James Byrnes, Philip Campbell-Wilson and Michael McCann of Grant Thornton were appointed as administrators. Greensill Capital Pty Ltd. filed insolvency proceedings in Australia. Matt Byrnes, Phil Campbell-Wilson, and Michael McCann of Grant Thornton Australia Ltd, were appointed as voluntary administrators in Australia. Greensill Capital Inc. filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 21-10561) on March 25, 2021. Jill M. Frizzley, director, signed the petition. In the petition, the Debtor listed assets of between $10 million and $50 million and liabilities of between $50 million and $100 million. The case is handled by Judge Michael E. Wiles. In the Chapter 11 case, the Debtor tapped Segal & Segal LLP as bankruptcy counsel, Mayer Brown LLP as special counsel, and GLC Advisors & Co., LLC and GLCA Securities, LLC as investment bankers and financial advisors. Matthew Tocks is the chief restructuring officer of the Debtor. The official committee of unsecured creditors is represented by Arent Fox LLP. Greensill Capital (UK) Limited filed a Chapter 15 petition (Bankr.S.D.N.Y. Case No. 21-11473) to seek U.S. recognition of its UK proceedings on Aug. 18, 2021. ALLEN & OVERY LLP, led by Laura R. Hall, is the Debtor's counsel in the Chapter 15 case. HASTINGS ESTATE: Unsecureds Unimpaired in Plan ---------------------------------------------- Hastings Estate Company Inc. ("HEC") submitted a Combined Disclosure Statement and Chapter 11 Plan of Reorganization. The Plan of Reorganization sets forth HEC's plan to restructure its debts. The Plan is a reorganizing plan. The Debtor's sole asset of meaningful value is the Hastings Building. The Debtors have obtained an appraisal for the Property, dated Jan. 22, 2021, prepared by Integra Realty Resources. The appraisal values the Property "as is," as of December 17, 2020, at $10,450,000. The as-is appraised value of the Property well exceeds the amount of all debt of Hastings Estate Company Inc. and Hastings Master Tenant, LLC. The secured claims of Pender and of Jefferson County (for real property taxes) are categorized as Class 1 and 2. They will be paid in full upon closing of the proposed new financing. Non-insider unsecured creditors are categorized as Class 3 creditors. They will be paid in full upon closing of the proposed new financing. Class 3 is unimpaired. Insider unsecured creditors are categorized as Class 4 creditors. They will be partly paid pro rata, while retaining all prepetition rights against the Project. The Plan will be funded by new financing to be obtained from Legalist. Attorneys for the Chapter 11 Debtor: Alan J. Wenokur Faye Rasch WENOKUR RIORDAN PLLC 600 STEWART STREET, SUITE 1300 SEATTLE, WASHINGTON 98101 206.682.6224 (WENOKUR) 206.903.0401 (RIORDAN) A copy of the Disclosure Statement dated August 18, 2021, is available at https://bit.ly/3z5jvMP from PacerMonitor.com. About Hastings Estate Company Port Townsend, Wash.-based Hastings Estate Company, Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Wash. Case No. 21-10995) on May 20, 2021. At the time of filing, the Debtor had between $1 million and $10 million in both assets and liabilities. Judge Marc Barreca oversees the case. Wenokur Riordan, PLLC and Harris & Wakayama, PLLC serve as the Debtor's bankruptcy counsel and special counsel, respectively. The Debtor also tapped the services of Candace Monroe, an accountant practicing in Washington. HERMELL PRODUCTS: May Use Cash Collateral Through October 1 ----------------------------------------------------------- Judge James J. Tancredi of the U.S. Bankruptcy Court for the District of Connecticut authorized Hermell Products, Inc. to use the cash collateral until October 1, 2021, or the occurrence of a Termination Event in the Debtor's case. The cash collateral shall be used to pay for the Debtor's actual and necessary ordinary course expenses, as budgeted, to avoid irreparable harm to the estate. The approved budget provided for $40,663 in total expenses for August 2021 and $38,057 in total expenses for September 2021. Claimants -- (i) Windsor Federal Savings and Loan Association; (ii) The Business Backer, LLC; (iii) Celtic Bank/Kabbage Funding; (iv) State of Connecticut Department of Economic and Community Development; and the (v) U.S. Small Business Administration -- assert an interest in the cash collateral. The Court ruled that in exchange for the Debtor's use of the cash collateral, the Claimants are granted replacement liens on all personal and real property of the Debtor with the same validity, extent and priority that each Claimant possessed on the Petition Date, to the extent of diminution in value of each Claimant's secured position postpetition. The Claimants shall also be allowed administrative expense claims pursuant to Sections 503(b) and 507(b) of the Bankruptcy Code, subject to the Carve Out. The Carve Out includes up to $20,000 in allowed administrative claims of attorneys and professionals retained by the Debtor in its Chapter 11 case, and amounts due and owing to the Debtor's employees for postpetition wages. A copy of the interim order is available for free at https://bit.ly/3jdyM98 from PacerMonitor.com. Hearing on the use of cash collateral, on a final basis, will be held on September 30, 2021 at 2 p.m. via Zoom.gov. The Debtor must file and serve a proposed final order and budget by 12 p.m. on September 27. Objections to the Debtor's further use of cash collateral must be filed and served by September 29. About Hermell Products Hermell Products, Inc. -- https://www.hermell.com/ -- offers comfortable and supportive medical equipment including, orthopedic supports, slings, cervical and lumbar cushions, foot care products, decubitus care products, wheelchair and seating cushions, and a collection of products for the bed. Hermell Products sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Conn. Case No. 21-20284) on March 25, 2021. In the petition signed by Ronald G. Pollack, president, the Debtor disclosed $710,254 in assets and $2,125,418 in liabilities. Judge James J. Tancredi oversees the case. The Debtor tapped Novak Law Office, P.C. as its legal counsel and Bardaglio Hart & Shuman, LLC as its accountant. Timothy Miltenberger has been appointed Sub-chapter V Trustee of the estate. HH ACQUISITION: Gets OK to Hire George Smith as Real Estate Broker ------------------------------------------------------------------ HH Acquisition CS, LLC received approval from the U.S. Bankruptcy Court for the District of Arizona to hire Los Angeles-based real estate broker George Smith Partners. George Smith will represent the Debtor in the negotiation with Westminster Capital, Inc., a Delaware corporation, regarding the sale of a franchised Hyatt House hotel in Colorado Springs, Colo. The firm will receive a 2.5 percent commission on the sale price. As disclosed in court filings, George Smith is "disinterested" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached through: Gary E. Mozer George Smith Partners 10250 Constellation Blvd., Suite 2700 Los Angeles, CA 90067 Phone: 310-867-2995/310-867-2910 Mobile: 310-339-7700 Email: gmozer@gspartners.com About HH Acquisition CS HH Acquisition CS, LLC, a company based in Colorado Springs, Colo., filed a petition for Chapter 11 protection (Bankr. D. Ariz. Case No. 21-05211) on July 6, 2021, listing as much as $50 million in both assets and liabilities. Ian Clifton, the Debtor's authorized representative, signed the petition. Judge Daniel P. Collins oversees the case. The Debtor tapped Cross Law Firm, P.L.C. to handle its Chapter 11 case and Hostmark Hospitality Group, LLC to manage its Hyatt House hotel in Colorado Springs, Colo. HOWARD HUGHES: Fitch Affirms 'BB' LT IDR, Outlook Remains Negative ------------------------------------------------------------------ Fitch Ratings has affirmed Howard Hughes Corporation's (HHC) Long-Term Issuer Default Rating (IDR) at 'BB' and unsecured bonds at 'BB'/'RR4'. The Rating Outlook remains Negative. In addition, Fitch has upgraded the company's senior secured debt to 'BBB-'/'RR1' from 'BB+'/'RR1', a two notch uplift from its IDR. The rating reflects HHC's strong portfolio asset quality within its core markets in, and around strategic master planned communities (MPC), in select Sunbelt markets and the mid-Atlantic and Hawaii. The ratings also consider the company's strategic land portfolio, development capability and track record, with the expectation the company will increase its portfolio mix of recurring NOI from contractual rents. Fitch expects HHC's leverage to decrease to 11.5x in 2021, driven by operating asset NOI recovery, increased condo sales and execution of dispositions. Through the forecast period, Fitch expects leverage to return to levels consistent with the 'BB' rating. The Negative Outlook reflects the near-term uncertainty around the recovery trajectory, given the impact from the coronavirus pandemic and some unevenness in the condo sales business, which potentially could lead to higher leverage in the interim period. KEY RATING DRIVERS Key Assets in Attractive Markets: HHC owns strategic asset positions in select Sunbelt and mid-Atlantic markets, which benefit from migration and job growth, but also face lower physical and zoning barriers to entry. Through its operating asset, MPC, and development segments, the company is able to plan and grow its communities over multi-year periods while increasing its base of recurring income. The company's MPC total over 80,000 gross acres of land with 10,000 residential acres to be developed, and 3,200 acres designated for commercial development. Land and Condo Development Volatility: Fitch views HHC's rental income risk profile as below average relative to its equity REIT peers, generally consistent with high speculative grade category. The company generated approximately 53% of 2020 revenues contractual rents from its operating portfolio properties, including office, multifamily, retail and, to a lesser extent, hotels located in and adjacent to its master planned communities. The company's development-for-sale segments provide incremental cash flow but possess increased volatility. Fitch anticipates an increase in earnings for these segments over the next two years surpassing pre-pandemic levels, with a drop in 2023 with subsequent rebound in 2024. This volatility is due to the acceleration of Ward Village and Victoria Place presales and timing of the future condo development pipeline. High Income-Based Leverage: HHC's net debt to recurring operating EBITDA leverage is high relative to low investment grade rated equity REIT peers, partly due to the company's development focus and related non-income producing assets. Moreover, the company generates a high percentage of income from non-recurring asset sales within its master planned community (MPC) and strategic developments segments, which Fitch views as more volatile than contractual rental income. Fitch expects Operating Asset NOI to recover and surpass pre-pandemic levels by 2022, in addition to anticipated deliveries of condo projects. As revenues recover and development assets are completed, Fitch anticipates leverage declining to around 7x over the forecast period to 2024. Fitch also considers HHC's net debt/capital, a supplemental metric commonly used to analyze homebuilders, which was 39.8% for the quarter ended June 30 2021, and 39.1% for the full year ended Dec. 31, 2020. Fitch expects this metric to sustain in the low 40% range during the forecast period through 2024. Prefunded Development Mitigates Risk: HHC prefunds all development with non-recourse secured debt. The company does not begin construction until all necessary cash is on the balance sheet. Fitch views this strategy as mitigating unfunded development pipeline risk. As of June 30, 2021, projects under construction had an estimated total cost of $4.3 billion, with $1.5 million remaining to be spent, including $869 million of committed debt to be drawn. As of June 30, 2021, unfunded development cost to complete represents 5.0% of undepreciated assets. However, after considering the financing for 1700 Pavilion and Tanager Echo, expected to close in 3Q21, it is roughly 3.7%. Fitch generally views development cost to complete as a percentage of undepreciated assets over 10% as a concern. The company only develops core MPCs, which Fitch views positively. In May 2021, HHC received approval from NYC Landmarks Preservation Commission for the proposal of redeveloping 250 Water Street (in the Seaport District) parking lot to condos, affordable housings, and community/ office space. Fitch believes this coupled with the decrease in COVID-related restrictions in NYC will contribute positively to the Seaport District in the forecast years. Adequate Near-Term Liquidity: The company's ample near- term liquidity is primarily due to $1.1 billion readily available cash as of June 30, 2021 and remaining availability of $185 million on the company's secured revolving credit facilities. The company enhanced its liquidity though a ~$600 million equity issuance during the first quarter of 2020. As of June 30, 2021, projects under construction had an estimated total cost of $4.3 billion, with $1.5 million remaining to be spent, including $869 million of committed debt to be drawn. Speculative Grade Capital Access: HHC has demonstrated capital access to the unsecured bond market as the company issued $750 million and $1.3 billion senior unsecured notes in 2020 and 2021, respectively. The company has $2 billion in non-core assets it plans to redeploy into investment opportunities. Fitch's model provides for $1.9 billion on dispositions over the forecast period to fund spending needs and debt repayment. Strategic Management Shift: Since the management shift in 2019, HHC has established a transformation plan. The plan details reducing $45 million-$50 million annually in G&A expenses, disposing of $2 billion of non-core assets, and refining development focus to only core MPCs. Fitch believes the plan is on course, as evidenced by the realized G&A reductions, but will take a couple years to execute. DERIVATION SUMMARY Although HHC has not elected REIT status, Fitch views select U.S. equity REITs and, to a lesser extent, U.S. homebuilders as comparable peers, notwithstanding the company's differentiated business model that includes ownership of multiple commercial property types in and around select MPCs, as well as its high exposure to sales income from developed lots and merchant developments. The company generates approximately half of its revenue from contractual rents from its operating portfolio properties, including office, multifamily, retail and, to a lesser extent, hotels located in and adjacent to its MPCs. HHC's portfolio is more diversified by property type than higher-rated, Sunbelt-focused multifamily REIT peers Camden Property Trust (A-/Stable) and Mid-America Apartment Communities (BBB+/Positive); however, the company operates at considerably higher net debt/recurring operating EBITDA leverage and reliance on non-contractual residential land sales. HHC's portfolio is more diversified by geography and property type than Mid-Atlantic office and multifamily REIT peer Mack-Cali Realty Corporation (B/Negative), including greater exposure to select Sunbelt markets, which benefit from migration and job growth but also face lower physical and zoning barriers to entry. Fitch considers debt to capitalization as a secondary leverage measure given HHC's high level of non-income-producing land and homebuilding industry exposure. Fitch expects the company will operate with a debt capitalization ratio of 40%-45% over the forecast period, which is moderately above the 35% to 40% range for homebuilding peer Toll Brothers, Inc. (BBB-/Stable). KEY ASSUMPTIONS Fitch's key assumptions within the rating case for the issuer include: -- Operating Asset SSNOI growth 6% in 2021, 12% in 2022, 8% in 2023 and 4% in 2024 (driven by hospitality improvement particularly in the early years); -- $1.9 billion of dispositions at 6% cap rate through the forecast period; -- Strategic Development Revenues of $400 million in 2021, $600 million in 2022, $0 in 2023 and returning to $600 million in 2024; -- Development deliveries of $1.7 billion at 6% yields through the forecasted period. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- REIT (net debt to recurring operating EBITDA) sustaining below 7x, assuming a similar or modestly greater percentage of NOI from contractual rents; -- REIT fixed charge coverage sustaining above 2.5x; -- Growth in HHC's operating assets resulting in NOI from recurring contractual rental income comprising 70% of net operating income; -- Growth in unencumbered assets and/or UA/UD coverage improving to 1.75x, or greater. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Fitch expectations of net leverage (net debt to operating EBITDA) sustaining above 9x and/or a net debt to capital ratio sustaining above 45%; -- Expectations of REIT fixed charge coverage sustaining below 1.5x; -- Expectations of deteriorating access to capital markets; -- Execution missteps related to HHC's transformation plan in key areas, such as reducing corporate overhead, non-core asset sales, and growing the contribution from recurring operating portfolio rents. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. LIQUIDITY AND DEBT STRUCTURE Fitch estimates HHC's base case liquidity coverage at 1.4x through YE 2021 and improves to 1.5x, assuming 80% secured refinancing. The company's sources include approximately $278 million in retained cash flow, $185 million availability on its credit facilities, approximately $1.1 billion of cash on hand and $869 million committed debt to be drawn on existing development projects. Fitch defines liquidity coverage as sources of liquidity divided by uses of liquidity. Sources include unrestricted cash, availability under unsecured revolving credit facilities and retained cash flows from operating activities after dividends. Uses include pro rata debt maturities, expected recurring capex and forecast (re)development costs. ESG Considerations Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. ISSUER PROFILE The Howard Hughes Corporation owns, manages, and develops commercial, residential, and hospitality operating properties in the United States. It operates through four segments: Operating Assets; Master Planned Communities (MPCs); Seaport District; and Strategic Developments. As of Dec. 31, 2020, the Operating Assets segment owned 15 retail, 33 office, 12 multi-family, 3 hospitality, and 13 other operating assets and investments primarily located in The Woodlands, Texas; Chicago, Illinois; Columbia, Maryland; Las Vegas, Nevada; and Honolulu, Hawaii. HPE TRANSPORTATION: Taps Frost & Associates as Bankruptcy Counsel ----------------------------------------------------------------- HPE Transportation, LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of Virginia to employ Frost & Associates, LLC to serve as legal counsel in its Chapter 11 case. The firm will render these services: a. advise the Debtor with respect to its powers and duties in the operation of its business and the management of its properties pursuant to the Bankruptcy Code; b. prepare legal papers; c. assist in analyses and representation with respect to lawsuits to which the Debtor is or may be a party; d. negotiate, prepare and seek approval of a plan of reorganization; e. represent the Debtor at all hearings, meetings of creditors and other proceedings; and f. perform all other legal services. The Debtor paid to the firm an advanced retainer of $1,200. As disclosed in court filings, Frost & Associates is a disinterested party within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached through: Daniel A. Staeven, Esq. Frost & Associates, LLC 8280 Willow Oaks Corporate Drive, Suite 600 Fairfax, VA 22031 Phone: (571)-490-8269 Email: Dan.Staeven@FrostTaxLaw.com About HPE Transportation HPE Transportation, LLC filed a petition for Chapter 11 protection (Bankr. E.D. Va. Case No. 21-50650) on Aug. 12, 2021, listing as much as $50,000 in both assets and liabilities. Frost & Associates, LLC serves as the Debtor's legal counsel. IANTHUS CAPITAL: Lenders Ask Additional Time to Close Debt Plan --------------------------------------------------------------- Law360 reports that cannabis company iAnthus announced Monday, August 23, 2021, that its creditors have sought to unilaterally extend the deadline for closing its debt reorganization plan until regulators in a handful of states grant change-of-ownership approvals necessary for the deal to go through. According to iAnthus, cannabis-focused private equity firm Gotham Green Partners has petitioned a Canadian court either to ratify the deadline extension or amend the restructuring plan to bar iAnthus from terminating the agreement without a court order. "No hearing date for the application has been set," iAnthus said in its announcement Monday. August 23, 2021. About iAnthus Capital iAnthus Capital Holdings, Inc. (CSE: IAN, OTCQX: ITHUF) -- https://www.iAnthus.com/ -- owns and operates licensed cannabis cultivation, processing and dispensary facilities throughout the United States, providing investors diversified exposure to the U.S. regulated cannabis industry. Founded by entrepreneurs with decades of experience in operations, investment banking, corporate finance, law and healthcare services, iAnthus provides a unique combination of capital and hands-on operating and management expertise. iAnthus currently has a presence in 11 states and operates 33 dispensaries (AZ-4, MA-1, MD-3, FL-14, NY-3, CO-1, VT-1 and NM-6 where iAnthus has minority ownership). On April 6, 2020, iAnthus said it did not make applicable interest payments due on its 13.0% Senior Secured Debentures and 13.0% Unsecured Convertible Debentures due on March 31, 2020. As of March 31, 2020, the aggregate principal amount outstanding on iAnthus' debt obligations total $159.2 million, including $97.5 million of Secured Debentures, $60.0 million of Unsecured Debentures and $1.7 million of other debt obligations. iAnthus explained that the decline in the overall public equity cannabis markets, coupled with the extraordinary market conditions that began in Q1 2020 due to the novel coronavirus known as COVID-19 ("COVID-19") pandemic, have negatively impacted the financing markets and have caused liquidity constraints for the Company. INOVALON HOLDINGS: Go-Private Deal No Impact on Moody's B2 CFR -------------------------------------------------------------- Moody's Investors Service said that the recently announced go-private transaction by Inovalon Holdings, Inc. does not affect the existing B2 Corporate Family Rating or stable outlook. Inovalon recently announced that it will be acquired by a consortium of private equity firms that includes Nordic Capital, Insight Capital and 22C Capital for $7.3 billion in an all cash transaction. The company plans to terminate the existing credit facilities upon completion of the buy-out. Inovalon has an undrawn $100 million revolver and $884.7 million term loan B. Upon completion of the buy-out and payoff of the facilities Moody's will withdraw ratings on the credit facilities. The buyers are financing a portion of the purchase with up to $3 billion in debt from commitments from Blackstone Credit, Owl Rock Capital Advisors LLC, and Apollo Global Funding, LLC. This debt would be placed at the parent entity with which Inovalon will merge. The B2 CFR ratings reflects Inovalon's improving credit metrics, consistent revenue growth, strong EBITDA margins in the 30% area and stability in customer retention rates. Inovalon's revenue has grown each year over the past few years driven by increasing adaptability of data driven solutions by customers across the healthcare sector and increasing customer count. Revenue growth slowed down in 2020 to the low single digit area as profitability declined for many companies in the healthcare sector and spending on technology declined, however over the LTM June 2021 period revenue growth recovered to the low double-digit area. Inovalon's solutions are applicable to payers, healthcare providers, pharmacies, drug manufacturers and consumers and the company counts many of the largest corporations in each segment as customers. The revenue base in largely subscription based and customer retention has ranged in the 87% to 93% (by customer count) over the past 6-7 years. Moody's expects that the positive trend of technology adaption will continue and that Inovalon is well positioned to grow its revenue base. Industry tailwinds include favorable demographics, the need to contain rising healthcare spend and find efficient ways to provide service and increasing regulatory complexity. Inovalon operates in the data-driven cloud technology solutions marketplace for the healthcare sector. A largely predictable recurring revenue model, due to the subscription base as well as solid rates of profitability, provide ratings support. However, the credit profile is constrained by Inovalon's niche product and sector focus, small scale with about $719 million of LTM revenue as of June 2021 and high (albeit decreasing) debt/EBITDA. The company also faces competition from much larger companies that have a broader product offering and resources and where consolidation has been a feature of the healthcare solutions market. Based in Bowie, Maryland, Inovalon is a cloud-based analytics platform company serving the healthcare industry. The company's Inovalon ONE(R) Platform aggregates and customizes information about patients, medical events, healthcare providers and physicians using a large primary source dataset, the MORE2 Registry(R). This data source includes data pertaining to more than one million physicians, 584,000 clinical facilities, 338 million unique patients, and 63 billion medical events. The Inovalon ONE(R) Platform provides data validation and integration, advanced analytics, data-driven intervention solutions and business processing services to healthcare organizations. It is highly customizable and allows customers to build their own interface according to their particular needs and infrastructure in place. Inovalon's customers include providers of health care plans, physicians, healthcare providers and pharmaceutical companies and includes most of the largest providers in each customer type. The company generated $718.7 million of revenue for the LTM June 2021 period. INPIXON: Posts $14.5 Million Net Income in Second Quarter --------------------------------------------------------- Inpixon filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing net income of $14.51 million on $3.45 million of revenues for the three months ended June 30, 2021, compared to a net loss of $7.30 million on $1.08 million of revenues for the three months ended June 30, 2020. For the six months ended June 30, 2021, the Company reported net income of $1.97 million on $6.41 million of revenues compared to a net loss of $13.47 million on $2.88 million of revenues for the same period during the prior year. As of June 30, 2021, the Company had $174.41 million in total assets, $28.93 million in total liabilities, and $145.49 million in total stockholders' equity. Management Commentary Nadir Ali, CEO of Inpixon, stated, "We continue to make tremendous growth strides, reporting a 221% increase in revenue for the three months ended June 30, 2021 as compared to the same period last year, in addition to $14.8 million in net income attributable to the stockholders of Inpixon primarily resulting from the settlement of a note receivable with equity. As a result of our expanded Indoor Intelligence product offering, we are increasing our SaaS subscription sales, and we are beginning to see higher recurring revenue streams and increases in the average selling price for certain of our products. We have had strong momentum, securing several new customer relationships for our smart office app following the acquisition of The CXApp during the second quarter of 2021. Organizations need to keep pace with the continuously evolving work environment in order to maintain a productive, satisfied and safe workforce. They are seeking simplified and comprehensive workplace solutions that can support hybrid return-to-the-office initiatives and selecting Inpixon to help them create and deliver a connected workplace where employees work in a mix of on-site and remote options. By delivering the best possible workplace experience for employees, one that fosters engagement and collaboration via a unified, user-friendly mobile app, we believe organizations can increase employee retention rates and remain competitive in the market." "We are delivering a range of solutions that enhance indoor experiences by allowing our customers to provide smarter, safer and more secure environments. With activity around in-person events restarting including conferences and executive briefings, the need to deliver hybrid event options remains, and our app and events platform is optimized to deliver hybrid and omni-device experiences in a way that we believe other event app vendors don't provide. We are also delivering solutions for other work environments such as industrial, manufacturing and mining, where heavy equipment and vehicles are in close proximity to one another or people, and determining precise location is critical to ensure the safety of visitors and personnel. Utilization of our chirp and UWB technologies, such as is offered with our recently launched Inpixon Asset Tag and Inpixon Personnel Tag, can deliver increased visibility of people and assets, enhancing safety and resource utilization. Our technology offers a unique performance profile combining high accuracy, long operational range and interference resilience that makes it an excellent choice for a wide range of location and ranging use cases. According to MarketsandMarkets, the RTLS market is expected to grow at a CAGR of 24.8% during 2020-2025, and we expect to ride this wave of sharp growth," Mr. Ali said. "Overall, we have approximately $70 million available to the company as of June 30, 2021 including approximately $24.9 million in cash and an additional $45.3 million in short-term investments. With our strong financial position and increasing market awareness, we believe we are well positioned to aggressively penetrate the Indoor Intelligence market with the ability to offer products and solutions to satisfy the range of Indoor Intelligence needs. We are excited and pleased with the momentum we are gaining and look forward to providing updates regarding contract wins, technology enhancements and more as developments unfold," Mr. Ali further said. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1529113/000162828021017145/inpx-20210630.htm About Inpixon Headquartered in Palo Alto, Calif., Inpixon (Nasdaq: INPX) is an indoor data company and specializes in indoor intelligence. The Company's indoor location data platform and patented technologies ingest and integrate data with indoor maps enabling users to harness the power of indoor data to create actionable intelligence. Inpixon reported a net loss of $29.21 million for the year ended Dec. 31, 2020, compared to a net loss of $33.98 million for the year ended Dec. 31, 2019. As of Dec. 31, 2020, the Company had $59.01 million in total assets, $14.33 million in total liabilities, and $44.68 million in total stockholders' equity. INTEGRATED GLOBAL: May Use Cash to Maintain Redondo Property ------------------------------------------------------------ Judge Sandra R. Klein of the U.S. Bankruptcy Court for the Central District of California authorized Integrated Global Concepts Medical Group, Inc., on an interim basis, to use $1,000 of prepetition cash collateral for the two-week period starting August 18, 2021, to pay for regular maintenance expenses with respect to the Debtor's property located at 845 Redondo, Long Beach, California. A continued hearing on the matter will be held on September 1, 2021 at 9 a.m. The Court will convene a further hearing on December 1, 2021 at 9 a.m. A copy of the order is available for free at https://bit.ly/2XVCQCN from PacerMonitor.com. About Integrated Global Concepts Medical Group, Inc. Integrated Global Concepts Medical Group, Inc. filed a Chapter 11 petition (Bankr. C.D. Cal. Case No. 21-16329) on August 9, 2021. On the date of filing, the Debtor estimated $1 million to $10 million in both assets and liabilities. The petition was signed by Michael Brenner, president and CEO. Judge Sandra R. Klein is assigned to the case. Haberbush, LLP represents the Debtor as counsel. INTEGRATED GLOBAL: May Use Cash to Maintain Rose Property --------------------------------------------------------- Integrated Global Concepts Medical Group, Inc. may use $1,000 in cash collateral to pay for regular maintenance expenses of its property located at 800 Rose, Long Beach, California, according to a ruling signed by Judge Sandra R. Klein of the U.S. Bankruptcy Court for the Central District of California. The authorized use of cash collateral covers landscaping, janitorial and other like expenses incurred in maintaining the Property during the two-week period beginning August 18, 2021. A copy of the order is available for free at https://bit.ly/3jdBZoQ from PacerMonitor.com. A hearing on the motion is continued to September 1, 2021 at 9 a.m. A further hearing is scheduled for 9 a.m. on December 1, 2021. About Integrated Global Concepts Medical Group, Inc. Integrated Global Concepts Medical Group, Inc. filed a Chapter 11 petition (Bankr. C.D. Cal. Case No. 21-16329) on August 9, 2021. On the date of filing, the Debtor estimated $1 million to $10 million in both assets and liabilities. The petition was signed by Michael Brenner, president and CEO. Judge Sandra R. Klein is assigned to the case. Haberbush, LLP represents the Debtor as counsel. J. HUNTER: Wins Cash Collateral Access Thru Oct 31 -------------------------------------------------- The U.S. Bankruptcy Court for the District of New Hampshire has authorized J. Hunter Properties, LLC to use cash collateral of RFLF1, LLC, Eastern Bank, Yamajala Real Estate, LLC, and Investor Capital in the ordinary course of its business through October 31, 2021, in accordance with the budget. The Debtor requires the use of cash collateral to preserve the operations, value, and integrity of its business. The Debtor is directed to pay RFLF1, LLC, Eastern Bank and Investor Capital their monthly payments of $11,000, $774 and $1,100, respectively, each month commencing August 1. These payments will continue pending further Court order. The Order will terminate upon the earliest of: (i) the last day of the Use Period; (ii) the earliest date on which a preliminary or final hearing on cash collateral requirements can be held under the notice and service requirements of Bankruptcy Rules 4001(b) and (d) and 7004(h); (iii) appointment of a Trustee pursuant to Bankruptcy Code Section 1104; (iv) conversion of the Debtor's case to one under Chapter 7 of the Bankruptcy Code; (v) dismissal of the Debtor's case; or (vi) entry of an order granting a Motion for Relief from Automatic Stay with respect to any property that is RFLF1, LLC, Eastern Bank, Yamajala Real Estate, LLC, and Investor Capital's collateral. A final hearing on the Debtor's use of Cash Collateral is scheduled for October 20 at 2 p.m. Objections are due October 13. A copy of the order and the Debtor's budget for September 1 to October 31 is available at https://bit.ly/3kjepq3 from PacerMonitor.com. The Debtor projects $21,300 in total income and $17,697 in total expenses for September. About J. Hunter Properties, LLC J. Hunter Properties, LLC is a New Hampshire Limited Liability Company which buys, owns and holds real estate in the State of New Hampshire and Massachusetts, with a principal business office at 314 Lafayette Road, Suite 3, Hampton, New Hampshire. Jessica Lapa is the manager of J. Hunter Properties. The Company has been in the real estate purchasing, owning and holding business for over seven years. J. Hunter Properties sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.H. Case No. 21-10429) on July 15, 2021. In the petition signed by Jessica Lapa, manager, the Debtor disclosed up to $10 million in both assets and liabilities. Eleanor Wm. Dahar, Esq., at Victor W. Dahar Professional Association is the Debtor's counsel. JINZHENG GROUP: Case Summary & 10 Unsecured Creditors ----------------------------------------------------- Debtor: Jinzheng Group (USA) LLC 100 E. Huntington Dr., Ste. 207 Alhambra, CA 91801 Business Description: Jinzheng Group (USA) LLC owns multiple properties in Los Angeles County. Chapter 11 Petition Date: August 24, 2021 Court: United States Bankruptcy Court Central District of California Case No.: 21-16674 Judge: Hon. Ernest M. Robles Debtor's Counsel: Donna C. Bullock, Esq. LAW OFFICES OF DONNA BULLOCK 800 W. 6th St., Ste. 1250 Los Angeles, CA 90017 Tel: (562) 726-0778 Email: donna.bullock@ymail.com Estimated Assets: $10 million to $50 million Estimated Liabilities: $10 million to $50 million The petition was signed by Betty Zheng as manager. A full-text copy of the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/JUIT2ZI/JINZHENG_GROUP_USA_LLC__cacbke-21-16674__0001.0.pdf?mcid=tGE4TAMA List of Debtor's 10 Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ 1. Best Alliance Litigation $0 16133 Ventura Blvd. Suite 700 Encino, CA 91438 2. BOBS LLC Litigation $0 Attn: Barry Shy 7525 Avalon Bay St Las Vegas, NV 89139 3. Craig Fry & Associates Permit & $200,000 990 S. Arroya Pkwy #4 Entitlement Pasadena, CA 91105 Processing Laura Liu Tel: 323-451-7376 4. Homes Loans Unlimited Broker Base Fee $186,550 28859 Phantom Trail Santa Clarita, CA 91390 Dan Triana Tel: 661-305-2773 5. Land Design Consultants Civil Engineer $100,000 800 Royal Oaks Drive Suite 104 Monrovia, CA 91016 Pam Want Tel: 626-578-7000 Email: pwang@ldcla.com 6. Law Offices of Attorneys Fees $0 Matthew C. Mullhofer 2107 N. Broadway Suite 103 Santa Ana, CA 92706 7. Phalanx Site Security $180,000 424 E. 15th Street Suite 10 Los Angeles, CA 90015 Anthony Rodriguez President Tel: 213-494-8542 Email: anthony@phalanz.group 8. Shawn Charles Broker Base Fee $186,550 Sourgose 24730 Avenue Tibbits #180 Valencia, CA 91355 Tel: 818-807-9442 9. Testa Capital Group Broker Base Fees $186,550 620 Newport Center Drive Suite 1100 Newport Beach, CA 92660 10. UltraSystems Environmental $100,000 Environmental Engineer 16431 Scientific Way Irvine, CA 92618 Hassan Ayati Tel: 949-788-4900 Email: hayati@ultrasystems.com KNOW LABS: Incurs $7.1 Million Net Loss in Third Quarter -------------------------------------------------------- Know Labs, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $7.09 million on zero revenue for the three months ended June 30, 2021, compared to a net loss of $2.91 million on zero revenue for the three months ended June 30, 2020. For the nine months ended June 30, 2021, the Company reported a net loss of $17.76 million on zero revenue compared to a net loss of $9.25 million on $121,939 of revenue for the same period during the prior year. As of June 30, 2021, the Company had $14.03 million in total assets, $7.82 million in total current liabilities, $205,633 in total non-current liabilities, and $6 million in total stockholders' equity. The Company had cash of approximately $13,870,000 and net working capital of approximately $11,088,000 (net of convertible notes payable and right of use asset and liabilities) as of June 30, 2021. The Company has experienced net losses since inception and it expects losses to continue as it commercializes its ChromaID technology. As of June 30, 2021, the Company had an accumulated deficit of $73,730,000 and net losses in the amount of $17,764,000, $13,563,000, and $7,612,000 for the nine months ended June 30, 2021 and the years ended 2020 and 2019, respectively. During the nine months ended June 30, 2021, the Company incurred non-cash expenses of $12,203,424. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1074828/000165495421009080/knwn_10q.htm About Know Labs Know Labs, Inc., was incorporated under the laws of the State of Nevada in 1998. Since 2007, the Company has been focused primarily on research and development of proprietary technologies which can be used to authenticate and diagnose a wide variety of organic and non-organic substances and materials. The Company's Common Stock trades on the OTCQB Exchange under the symbol "KNWN." Know Labs reported a net loss of $13.56 million for the year ended Sept. 30, 2020, compared to a net loss of $7.61 million for the year ended Sept. 30, 2019. As of March 31, 2021, the Company had $15.91 million in total assets, $8.06 million in total current liabilities, $432,059 in total non-current liabilities, and $7.41 million in total stockholders' equity. BPM LLP, in Walnut Creek, California, the Company's auditor since 2019, issued a "going concern" qualification in its report dated Dec. 29, 2020, citing that the Company has sustained a net loss from operations and has an accumulated deficit since inception. These factors raise substantial doubt about the Company's ability to continue as a going concern. LEVANT GROUP: Seeks OK on SBA Cash Collateral Deal -------------------------------------------------- Levant Group asked the U.S. Bankruptcy Court for the Central District of California to approve the stipulation it entered into with the United States of America, on behalf of the U.S. Small Business Administration, regarding the Debtor's use of cash collateral. Prior to the Chapter 11 petition, the Debtor owed the SBA $150,000 for a loan obtained on May 12, 2020. The terms of the Loan required the Debtor to pay the SBA $731 monthly beginning on the 12th month after the date of execution of a Note in SBA's favor. The Loan is amortized over a 30-year period and is secured by all of the Debtor's tangible and intangible personal property. The parties agree that all the personal property collateral consisted SBA's cash collateral, which the SBA allows the Debtor to use for its ordinary and necessary expenses, according to the budget, the stipulation and for no unauthorized purpose, until the entry of an order confirming a reorganization plan in the Debtor's case, or October 31, 2021, whichever occurs first. As adequate protection, the Debtor and the SBA agree that the SBA shall receive a replacement lien to the extent the automatic stay, the use, sale or lease of the personal property collateral would result in a decrease in the value of SBA's interest in the collateral postpetition. The parties also agree the SBA shall have a secured claim of $150,000, plus all accrued interest, and the Debtor shall diligently seek confirmation of a Chapter 11 reorganization plan in its case. The parties further agree that the use of cash collateral may be renewed by subsequent stipulation or by a Court order. A copy of the stipulation is available for free at https://bit.ly/3kew3eF from PacerMonitor.com. About Levant Group Levant Group sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Calif. Case No. 21-14537) on May 31, 2021, listing $100,001 to $500,000 in both assets and liabilities. Judge Deborah J Saltzman presides over the case. RoseAnn Frazee, Esq., at Frazee Law Group, represents the Debtor as legal counsel. LIMETREE BAY: Taps Beckstedt & Kuczynski as Special Counsel ----------------------------------------------------------- Limetree Bay Services, LLC and its affiliates seek approval from the U.S. Bankruptcy Court for the Southern District of Texas to hire Beckstedt & Kuczynski, LLP as their special counsel. The firm will represent the Debtors in several pending actions, including, without limitation, class actions pending in the District Court of the U.S. Virgin Islands and other lawsuits in the local U.S. Virgin Islands courts. The firm's hourly rates are as follows: Carl A. Beckstedt III, Partner $450 per hour Robert J. Kuczynski, Partner $350 per hour Carl Beckstedt III, Esq., a partner of Beckstedt & Kuczynski, disclosed in a court filing that his firm does not represent or hold any interest adverse to the Debtors and their estates. The firm can be reached through: Carl A. Beckstedt III, Esq. Beckstedt & Kuczynski LLP Beckstedt & Kuczynski 7 Church Street Christiansted St. Croix, U.S. Virgin Islands Phone: (340) 719-8086, ext. 201 Fax: (800) 886-6831 Email: Carl@beckstedtlaw.com 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. Texas Case No. 21-32351). Limetree Bay Terminals, LLC did not file for bankruptcy. In the petitions signed by Mark Shapiro, chief restructuring officer, Limetree Bay Services disclosed up to $10 million in assets and up to $50,000 in liabilities. Limetree Bay Refining, LLC, estimated up to $10 billion in assets and up to $1 billion in liabilities. The Debtors tapped Baker & Hostetler LLP as bankruptcy counsel, Beckstedt & Kuczynski LLP as special counsel, and GlassRatner Advisory & Capital LLC, doing business as B. Riley Advisory Services, as restructuring advisor. Mark Shapiro of GlassRatner is the Debtors' chief restructuring officer. The U.S. Trustee for Region 7 appointed an official committee of unsecured creditors in the Debtors' cases on July 26, 2021. Pachulski Stang Ziehl & Jones, LLP and Conway MacKenzie, LLC serve as the committee's legal counsel and financial advisor, respectively. 405 Sentinel, LLC serves as administrative and collateral agent for the DIP lenders. LITHIA MOTORS: S&P Alters Outlook to Positive, Affirms 'BB+' ICR ---------------------------------------------------------------- S&P Global Ratings revised its outlook to positive from stable and affirmed its 'BB+' issuer credit rating on Lithia Motors Inc. The positive outlook reflects Lithia's steady operations, improving scale, and strong credit metrics despite a very aggressive acquisition strategy. Along with other auto dealerships, Lithia is earning very strong margins on elevated prices of new and used cars because of the global semiconductor shortage. S&P said, "While we don't expect the company to sustain these margins long term, we now expect the strong pricing environment will likely last longer, albeit declining, into 2022. Lithia has had limited issues integrating acquired dealerships, although it would be difficult to track operational inefficiencies given the strong pricing environment driving down selling, general, and administrative (SG&A) costs as a percent of sales. We now expect strong vehicle prices will allow Lithia to better absorb integration inefficiencies through 2023." Growth of Lithia's Driveway business could present near-term risks, despite increasing its national presence over the next five years. S&P believes through this portal Lithia can engage with customers and optimize revenue, especially in regions where it has a meager footprint. However, if Driveway expands quickly, it may necessitate higher spending on advertising and logistics as Lithia expands into new markets and it takes time for them to mature. Still, given that Lithia only made 550 transactions on the Driveway platform in June, the ramp-up may be slower, which could limit excessive investment. S&P will continue to monitor other risks, for example that vehicles sold online do not translate into as much parts and service business if the online customer is less attached to the physical dealership. Parts and service is the most profitable part of the dealership business after finance and insurance. Lithia's balanced funding strategy supports credit quality. The company has used both equity and debt to fund acquisitions, with a focus on more equity than debt. Expanding its financial policy while maintaining strong credit metrics is a key supporting factor in our outlook revision. The positive outlook reflects the potential that S&P will raise its rating over the next 12 months if Lithia continues to operate well as it efficiently integrates acquired dealerships and manages costs while expanding Driveway. S&P could upgrade Lithia in the next 12 months if: -- The company maintains leverage comfortably below 3x and its FOCF-to-debt ratio above 15%; -- It extends its track record of efficiently integrating acquisitions while ramping up Driveway and managing SG&A as a percent of sales; and -- S&P believes its strategic business, financial policies, governance, and capital structure are consistent with a higher rating, including using substantial free cash flow or equity to fund acquisitions. S&P could revise its outlook on Lithia to stable in the next 12 months if leverage trends back to 3x or higher. This could occur because of: -- Issues integrating acquisitions; -- Higher prices for debt-funded acquisitions; or -- Higher-than-expected costs to expand its online businesses. MAIN STREET INVESTMENTS III: Taps Mincin Law as Legal Counsel ------------------------------------------------------------- Main Street Investments III, LLC seeks approval from the U.S. Bankruptcy Court for the District of Nevada to hire Mincin Law, PLLC to serve as legal counsel in its Chapter 11 case. The Debtor needs the firm's legal assistance to: a. institute, prosecute or defend any lawsuit, adversary proceeding or contested matter arising out of the Debtor's bankruptcy proceeding in which it may be a party; b. obtain necessary court approval for recovery and liquidation of estate assets; c. determine the priorities and status of claims and file claim objections; and d. prepare a disclosure statement and bankruptcy plan. David Mincin, Esq., the attorney who will be handling the case, will be paid an hourly fee of $350. As disclosed in court filings, Mr. Mincin neither holds nor represents any interest adverse to the Debtor's bankruptcy estate. The firm can be reached through: David Mincin, Esq. Mincin Law PLLC 7465 W. Lake Mead Boulevard, #100 Las Vegas, NV 89128 Tel: (702) 852-1957 Email: dmincin@mincinlaw.com About Main Street Investments III Main Street Investments III, LLC, a Las Vegas-based company, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Nev. Case No. 21-14042) on Aug. 16, 2021, listing $1,570,226 in assets and $1,141,858 in liabilities. David LeGrand, the Debtor's manager, signed the petition. Judge Mike K. Nakagawa presides over the case. David Mincin, Esq., at Mincin Law PLLC, represents the Debtor as legal counsel. MARRONE BIO: Incurs $3 Million Net Loss in Second Quarter --------------------------------------------------------- Marrone Bio Innovations, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $3.04 million on $12.60 million of total revenues for the three months ended June 30, 2021, compared to a net loss of $2.87 million on $12.18 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 $6.30 million on $23.64 million of total revenues compared to a net loss of $9.89 million on $21.83 million of total revenues for the six months ended June 30, 2020. As of June 30, 2021, the Company had $85.62 million in total assets, $50.94 million in total liabilities, and $34.68 million in total stockholders' equity. "Despite external short-term headwinds, we grew revenues and made significant improvements across our key metrics - particularly Adjusted EBITDA - in the first half of the year. We expect to return to a more normalized revenue growth rate in the second half of the year, while carefully managing discretionary spending to ensure we continue our progress toward delivering Adjusted EBITDA breakeven in the near-term," said Chief Executive Officer Kevin Helash. "For the full year, we are projecting revenue growth in the mid-teens, and annual gross margins in the upper 50% range. We expect operating expenses to remain in line with those for 2020, adjusting for inflation," Helash added. "We have multiple avenues to achieve Adjusted EBITDA breakeven, and believe we can sustain our upward trajectory and advance our leadership in sustainable agriculture." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1441693/000149315221020156/form10-q.htm About Marrone Bio Innovations Based in Davis, California, Marrone Bio Innovations, Inc. -- http://www.marronebio.com-- discovers, develops and sells innovative biological products for crop protection, plant health and waterway systems treatment. The Company's portfolio of 15 products helps customers operate more sustainably while increasing their return on investment. The company's commercial products are sold globally and supported by a robust portfolio of over 500 issued and pending patents. Its agricultural end markets include row crops; fruits and vegetables; trees, nuts and vines; and greenhouse production. The company's research and development program uses proprietary technologies to isolate and screen naturally occurring microorganisms and plant extracts to create new, sustainable solutions in agriculture. Marrone Bio reported a net loss of $20.17 million for the year ended Dec. 31, 2020, compared to a net loss of $37.17 million for the year ended Dec. 31, 2019. As of March 31, 2021, the Company had $86.46 million in total assets, $51.11 million in total liabilities, and $35.35 million in total stockholders' equity. MARY BRICKELL: October 22 Disclosure Statement Hearing Set ---------------------------------------------------------- On Aug. 6, 2021, Mary Brickell Village Hotel, LLC, filed with the U.S. Bankruptcy Court for the Southern District of Florida a Disclosure Statement for Chapter 11 Plan. On Aug. 19, 2021, Judge Robert A. Mark ordered that: * Oct. 22, 2021, at 10:00 a.m. via video conference is the hearing to consider approval of the disclosure statement. * Oct. 15, 2021, is the last day for filing and serving objections to the disclosure statement. A copy of the order dated August 19, 2021, is available at https://bit.ly/3miD94A from PacerMonitor.com at no charge. Debtor's Counsel: PACK LAW 51 Northeast 24th Street, Suite 108 Miami, Florida 33137 Telephone: (305) 916-4500 Joseph A. Pack Email: joe@packlaw.com Jessey J. Krehl Email: jessey@packlaw.com About Mary Brickell Village Hotel Mary Brickell Village Hotel, LLC operates the Aloft Miami Brickell Hotel. The Hotel consists of fourteen stories, one hundred and sixty rooms, a fitness center, a large pool deck, a nine-hundred square-foot terrace for events, and one hundred valet parking spaces. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 21-17103) on July 21, 2021. In the petition signed by Pedro Villar, president, the Debtor disclosed up to $50 million in both assets and liabilities. Judge Robert A. Mark oversees the case. Joseph A. Pack, Esq., at Pack Law is the Debtor's counsel. NANYAH VEGAS: Seeks to Hire Simons Hall Johnston as Special Counsel ------------------------------------------------------------------- Nanyah Vegas, LLC seeks approval from the U.S. Bankruptcy Court for the District of Nevada to hire Simons Hall Johnston, PC as its special counsel. The Debtor needs the firm's legal assistance in a state court litigation (Case No. A686303) pending in the Eighth Judicial District Court for the State of Nevada. Yoav Harlap, the Debtor's manager, has agreed to pay the firm for its representation of the Debtor. As disclosed in court filings, Simons Hall Johnston is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached through: Mark G. Simons, Esq. Simons Hall Johnston PC 6490 S. McCarran Boulevard, Suite F-46 Reno, NV 89509 Phone: 775-785-0088 About Nanyah Vegas Reno, Nev.-based Nanyah Vegas, LLC filed its voluntary petition for Chapter 11 protection (Bankr. D. Nev. Case No. 21-50226) on March 29, 2021, disclosed zero asset and total liabilities of $1,491,831. Yoav Harlap, managing member, signed the petition. Judge Bruce T. Beesley oversees the case. Darby Law Practice, Ltd. and Simons Hall Johnston, PC serve as the Debtor's bankruptcy counsel and special counsel, respectively. NATIONAL JEWELRY: Gets OK to Tap Luis D. Flores Gonzales as Counsel ------------------------------------------------------------------- National Jewelry, LLC received approval from the U.S. Bankruptcy Court for the District of Puerto Rico to hire the Law Offices of Luis D. Flores Gonzales to serve as legal counsel in its Chapter 11 case. The firm's services include: a. advising the Debtor with respect to its duties, powers and responsibilities; b. advising the Debtor in connection with its reorganization planning; c. assisting the Debtor in negotiations with creditors to formulate a feasible plan of reorganization; d. preparing legal documents and appearing before the court; and e. providing other legal services. The firm's hourly rates are as follows: Luis D. Flores Gonzales, Esq. $200 per hour Certified Legal assistants $60 per hour Paraprofessional persons $40 per hour The Debtor paid $5,000 to the law firm as a retainer fee. Luis Gonzales, Esq., disclosed in a court filing that he is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Luis D. Flores Gonzales, Esq. Law Offices of Luis D. Flores Gonzales Ave. Ponce De Lleon 1225, Suite MZ-9 VIG Tower, Santurce, PR 00907 Tel: 787-758-3606 Email: ldfglaw@yahoo.com About National Jewelry National Jewelry, LLC filed a petition for Chapter 11 protection (Bankr. D.P.R. Case No. 21-01742) on June 4, 2021, disclosing total assets of up to $50,000 and total liabilities of up to $500,000. Judge Enrique S. Lamoutte Inclan oversees the case. The Debtor is represented by the Law Offices of Luis D. Flores Gonzales. NUVERRA ENVIRONMENTAL: Incurs $3.9 Million Net Loss in 2nd Quarter ------------------------------------------------------------------ Nuverra Environmental Solutions, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $3.86 million on $24.77 million of total revenue for the three months ended June 30, 2021, compared to a net loss of $6.78 million on $24.47 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 $11.46 million on $48.44 million of total revenue compared to a net loss of $29.82 million on $62.41 million of total revenue for the six months ended June 30, 2020. As of June 30, 2021, the Company had $174.53 million in total assets, $53.52 million in total liabilities, and $121.01 million in total shareholders' equity. "As we climb out of the activity decline caused by the COVID-19 pandemic, we continue our ongoing efforts to lower our cost structure. To better reflect the markets we serve, we are taking steps to rationalize our fleet and facility footprint and continuing our work on increasing efficiency in our service dispatch processes and other back office systems. We expect our G&A expense to be lower in the second half of 2021. While we are focused on recovering pricing lost during the COVID-19 induced downturn, we face significant inflationary pressures that offset those hard fought price increases, including higher wage costs due to competition for employees and fuel prices. Finally, I would like to recognize that throughout all of the changes our industry has undergone, the people at Nuverra continue to safely execute excellent customer service. I would like to thank all of the great people at Nuverra for their hard work, dedication and focus throughout all of the challenges we have faced over the past year," said Pat Bond, chief executive officer. Net cash used in operating activities for the six months ended June 30, 2021 was $2.4 million, mainly attributable to a gain recorded on PPP Loan forgiveness of $(4.0) million, increase of $0.1 million in accounts receivable, increase of $0.7 million in prepaid expenses, while capital expenditures net of asset sales consumed $1.1 million. Asset sales were related to unused or underutilized assets. Gross capital expenditures for the six months ended June 30, 2021 of $1.3 million primarily included the purchase of property, plant and equipment as well as expenditures to extend the useful life and productivity of the Company's fleet, equipment and disposal wells. Total liquidity available as of June 30, 2021 was $12.4 million. This consisted of $7.4 million of cash and $5.0 million available under the Company's operating line of credit. As of June 30, 2021, total debt outstanding was $29.0 million, consisting of $13.0 million under its equipment term loan, $9.7 million under the Company's real estate loan, $0.2 million under its vehicle term loan, $0.1 million for an equipment term loan and $6.9 million of finance leases for vehicle financings and real property leases, less $0.9 million of debt issuance costs. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1403853/000140385321000052/nes-20210630.htm About Nuverra Nuverra Environmental Solutions, Inc. provides water logistics and oilfield services to customers focused on the development and ongoing production of oil and natural gas from shale formations in the United States. Its services include the delivery, collection, and disposal of solid and liquid materials that are used in and generated by the drilling, completion, and ongoing production of shale oil and natural gas. The Company provides a suite of solutions to customers who demand safety, environmental compliance and accountability from their service providers. Nuverra Environmental reported a net loss of $44.14 million for the year ended Dec. 31, 2020, compared to a net loss of $54.94 million for the year ended Dec. 31, 2019. As of March 31, 2021, the Company had $184 million in total assets, $59.40 million in total liabilities, and $124.6 million in total shareholders' equity. NUVERRA ENVIRONMENTAL: Inks 2nd Amendment to 2020 Loan Agreement ---------------------------------------------------------------- Nuverra Environmental Solutions, Inc. entered into a second amendment to the loan agreement dated Nov. 16, 2020, with First International Bank & Trust, a North Dakota banking corporation, in order to increase by $531,166 the maximum availability under the letter of credit facility and make certain other modifications to the terms of the loan agreement, including (i) modifying the debt service coverage ratio covenant, contained in section 5(N) of the loan agreement, so that it would first be tested for the fiscal year ending Dec. 31, 2022, (ii) permitting the sale or other disposition of certain assets and other equipment, and (iii) temporarily increasing the interest rate on the real estate term loan by 1.5% per annum. As amended, the letter of credit facility provides for the issuance of letters of credit of up to $5.880 million in aggregate face amount and is evidenced by an existing amended and restated promissory note (letter of credit loan), dated Jan. 25, 2021, in the face amount of $5,349,000 and a newly executed promissory note (letter of credit loan-insurance), dated Aug. 19, 2021, in the face amount of $531,166. All other terms of the letter of credit facility remain unchanged. The second amendment also provides for the addition of certain real property located in Mackenzie County, North Dakota, to a mortgage previously granted by Nuverra in favor of First International Bank. A full-text copy of the Second Amendment to Loan Agreement is available for free at: https://www.sec.gov/Archives/edgar/data/1403853/000140385321000050/exhibit101conformed8192021.htm About Nuverra Nuverra Environmental Solutions, Inc. provides water logistics and oilfield services to customers focused on the development and ongoing production of oil and natural gas from shale formations in the United States. Its services include the delivery, collection, and disposal of solid and liquid materials that are used in and generated by the drilling, completion, and ongoing production of shale oil and natural gas. The Company provides a suite of solutions to customers who demand safety, environmental compliance and accountability from their service providers. Nuverra Environmental reported a net loss of $44.14 million for the year ended Dec. 31, 2020, compared to a net loss of $54.94 million for the year ended Dec. 31, 2019. As of June 30, 2021, the Company had $174.53 million in total assets, $53.52 million in total liabilities, and $121.01 million in total shareholders' equity. OCCIDENTAL PETROLEUM: S&P Upgrades ICR to 'BB' on Lower Leverage ---------------------------------------------------------------- S&P Global Ratings raised its issuer credit rating on Occidental Petroleum Corp. (OXY) and its issue-level ratings on its debt to 'BB' from 'BB-'. S&P's recovery rating (50%-70% recovery) on the company's unsecured debt remains '3', though it is revising its rounded recovery estimate to 60% from 50%. S&P said, "OXY's leverage profile has significantly improved, and we expect management to continue prioritizing debt reduction. We are anticipating average FFO/debt of almost 20% with debt/EBITDA around 4x, which has improved based on our latest oil and gas price forecast as well as the company's recent tender for more than $3 billion of its notes maturing through 2026. OXY has now retired more than $12 billion of debt since acquiring Anadarko, and we expect debt reduction to remain a priority with another $2 billion of debt that may be redeemable heading into 2022." Furthermore, the company is targeting a near-term debt structure in the mid-$20 billion range or less and looking to fund the effort with near-term discretionary cash flow and proceeds from asset sales. Management has also reiterated that debt reduction will continue to be prioritized over shareholder returns until OXY's credit profile improves, which should drive more sustainable leverage metrics. Solid operational performance and asset sales support stronger financial measures. OXY delivered stronger earnings by reducing its base decline and stabilizing production rates while cutting operating expenses and overhead by more than $2 billion last year. S&P also expects the company to benefit from its chemicals business, which is less correlated to oil and gas prices and has performed well due to strong demand for polyvinyl chloride (PVC) and caustic soda. Although S&P believes the pace of asset sales could slow after this year with the company nearing the lower end of its post-acquisition divestiture target, the Ghana asset is still being marketed and its minority stake in Western Midstream Partners L.P. (WES) holds substantial market value, with the company likely to remain opportunistic with its diverse asset portfolio going forward. The company's strong liquidity position and its modest near-term debt maturity schedule provide a buffer against potential market volatility. Although the OXY's quarter-end cash balance of $4.6 billion has almost certainly declined following the completion of its debt tender in July, we expect the company will maintain around $2 billion of year-end cash on hand in addition to its undrawn $5 billion revolver, which combine for a strong buffer against potential future commodity price volatility and unforeseen operational and litigation risks. The company also recently added a $400 million receivables securitization facility, which remains unused, and we expect management will soon look to extend its revolving credit facility, which is currently set to expire in early 2023. OXY's debt maturity schedule is very manageable over the next few years due to recent refinancing and debt-retirement activity, with slightly more than $2 billion due through the end of 2023 and a staggered timetable beyond that timeframe. S&P said, "The stable outlook on OXY reflects our expectation that it will continue to prioritize debt reduction through excess cash flow and asset sales. We expect average leverage metrics to remain elevated but improved with almost 20% FFO/debt and around 4x debt/EBITDA over the next two years." S&P could lower its rating on OXY if: -- Its adjusted debt to EBITDA increases and approaches 5.0x, with FFO/debt nearing 12%. This could occur if oil and gas prices retreat for a prolonged period and the company does not meet S&P's cash flow expectations; or -- Contrary to S&P's expectations, it comes to believe OXY is overly reliant on the capital markets, aggressively spends capital, or favors shareholder returns over debt reduction. S&P could raise its rating on OXY if its financial metrics improve relative to its base-case scenario such that its average FFO to debt significantly exceeds 20% while its debt to EBITDA approaches 3x on a sustained basis, combined with the expectation for further balance sheet strengthening. This would most likely occur if commodity prices increase or the company achieves debt reduction beyond our current expectations while maintaining at least adequate liquidity and prudent financial policy focused on further debt reduction. ODYSSEY AT PATERSON: Voluntary Chapter 11 Case Summary ------------------------------------------------------ Debtor: The Odyssey at Paterson, LLC 5 Hopkins Court Parsippany, NJ 07054 Business Description: The Odyssey at Paterson is a Single Asset Real Estate debtor (as defined in 11 U.S.C. Section 101(51B)). Chapter 11 Petition Date: August 24, 2021 Court: United States Bankruptcy Court District of New Jersey Case No.: 21-16724 Debtor's Counsel: David L. Stevens, Esq. SCURA, WIGFIELD, HEYER, STEVENS & CAMMAROTA, LLP 1599 Hamburg Turnpike Wayne, NJ 07470 Tel: 973-696-8391 Email: ecfbkfilings@scuramealey.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Jong Jin Kim as CEO/member. 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/Y7HBI5Y/The_Odyssey_at_Paterson_LLC__njbke-21-16724__0001.0.pdf?mcid=tGE4TAMA OPPENHEIMER HOLDINGS: Moody's Upgrades CFR to Ba3, Outlook Stable ----------------------------------------------------------------- Moody's Investors Service upgraded to Ba3 from B1 Oppenheimer Holdings, Inc.'s corporate family rating and senior secured debt rating. Moody's said Oppenheimer's outlook is stable. Moody's has taken the following rating actions: Issuer: Oppenheimer Holdings, Inc. Corporate Family Rating, Upgraded to Ba3 from B1 Backed Senior Secured Notes, Upgraded to Ba3 from B1 Outlook Actions: Issuer: Oppenheimer Holdings, Inc. Outlook, Remains Stable RATINGS RATIONALE Moody's said Oppenheimer's ratings upgrade reflect the firm's diversified revenue base with improving profitability, growing mix of advisory revenue and strong debt leverage. Over the past two years, Oppenheimer has successfully navigated a challenging operating environment, especially during the period of highly volatile financial markets. Moody's said the upgrade also reflects Oppenheimer's significant investment in risk management and controls in recent years which has help substantially reduce the firm's historically elevated level of regulatory compliance issues. Oppenheimer's credit profile has benefited from greater profitability within the private client division despite the low interest rate environment, driven by growing revenue from advisory fees. Moody's said Oppenheimer's earnings benefit from a growing mix of advisory revenue, which are more recurring and stable than transaction commission-based revenue. The firm's asset management segment has also grown in recent quarters, driven by net new asset inflows, but also from the rise in overall financial markets. Moody's said that Oppenheimer prudently manages the risks from its capital markets segment and that the firm has been able to grow the business. Moody's expects the capital markets segment to experience revenue volatility given the cyclical nature of its different subsegments, factors that are reflected in the rating. The firm's Moody's-adjusted debt/EBITDA for the trailing twelve months ended June 2021 was 1.1x, a significant improvement from 2.7x a year ago, driven by the strong underlying performance and also reflecting the September 2020 refinancing which led to reduction in debt outstanding to $125 million from $150 million. The stable outlook is based on Moody's expectation that Oppenheimer will continue to benefit from its diversified revenue base and from a growing mix of advisory revenue, while facing some revenue volatility from its capital markets segment. The stable outlook also reflects Moody's expectation that Oppenheimer will maintain a favorable debt leverage profile. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Factors that could lead to an upgrade: Achieving sustainable revenue growth during periods of lower capital markets activities Continued demonstration of a sustained improvement in risk management and controls Factors that could lead to a downgrade: Significant acquisition outside of Oppenheimer's historical core competencies or into higher-risk business activities A broad slowdown in revenue generation leading to Moody's-adjusted debt leverage at or worse than 3.5x on a sustained basis Any significant new risk management failures or related litigation The principal methodology used in these ratings was Securities Industry Service Providers Methodology published in November 2019. OXBOW CARBON: S&P Alters Outlook to Stable, Affirms 'B+' ICR ------------------------------------------------------------ S&P Global Ratings revised its outlook on U.S.-based petroleum and calcined coke producer Oxbow Carbon LLC to stable from negative and affirmed its 'B+' issuer credit rating. S&P said, "Our 'BB-' issue level and '2' recovery ratings on the company's first-lien credit facilities remain unchanged. "The stable outlook reflects our belief that Oxbow will sustain leverage between 3.5x-4.0x over the next 12 months, an improvement over our previous forecast of above 4.5x for the same period, with increased free cash flow generation and modest growth in volumes as the global economy continues its recovery from the pandemic. "We expect end market dynamics buoyed by strong macroeconomic trends to drive improvements in Oxbow's financial metrics. We anticipate the company will increase its EBITDA by 35% in 2021 primarily due to a strong commodity price environment and a slow but steady growth in its volumes as the company's customers gradually scale up production in response to the global recovery. Contrary to our outlook in 2020, we now expect North America and Asia-Pacific (APAC) real GDPs to each grow by 6.7% in 2021 and by 3.7% and 4.9% in 2022, respectively. These regions account for roughly 60% of revenue. The price of the high-margined calcined petroleum coke, a key input in manufacturing aluminum, also increased over 40% year-to-date compared to 2020, benefiting from the high demand for aluminum. We also anticipate the rebound in the steel markets to positively influence the marketing and distribution segments, which have seen price improvement of between 40%-50% relative to last year. We expect this favorable trend to hold for the rest of 2021 with some moderation. Though we expect a further drop in the prices in 2022, it will be offset by increases in volumes as Oxbow's customers scale up operations with increased market certainty. "Oxbow will continue to profit from the strained China-Australia trade relationship, which has led to increased Chinese demand for petcoke, a direct substitute for coal in energy production. We also expect the company to benefit from an improved supply of petcoke (a byproduct of petroleum refining) to meet rallying end-market demand as oil refineries increase production. "We expect the company to reduce leverage, generate strong free operating cash flow (FOCF), and maintain adequate liquidity to finance its operations. We expect a strong improvement in FOCF in 2022 as the company reduces its investments in inventories (after increasing investments in 2021 due to the high commodity price environment). Furthermore, the company has no plans to undertake any capital projects, limiting capex to routine annual maintenance and repair works. We believe the calcined coke business will continue to provide a steady income base, while gradual volume improvements in the marketing segment will cascade into stronger cash flow metrics. As such, we expect adjusted leverage between 3.5x-4.0x over the next 18 months. This compares favorably to our previous forecast of leverage peaking just below 6x. We believe the company will continue to produce strong cash flows sufficient to fund mandatory debt amortization of $40 million and distributions as well as to accelerate debt repayments with excess cash flow sweep provisions. "We expect Oxbow's earnings will continue to exhibit significant volatility relative to its peers due to its exposure to cyclical end-markets. Between 2018 and 2020, Oxbow's EBITDA declined by 46%, due to weaker volumes and prices in 2019, further exacerbated by the on onset of COVID in 2020. We believe the company is exposed to commodity price fluctuations, primarily aluminum and coke, as well as the cyclicality associated with autos, aerospace, oil and gas, and construction end-markets. Despite the high-margined calcined business providing steady support during the height of the pandemic, the company's significant dependence on this segment contributes to the risk of significant instability in cash flows during times of stress. "The stable outlook on Oxbow reflects our expectation of improved EBITDA and cash flow generation in 2021 supported by strong industry tailwinds. We believe the company will be able to maintain steady EBITDA margins and adjusted leverage between 3.5x-4.0x over the next 12-24 months. "We could lower our rating if the rally in end-market demand stagnates and commodity prices weaken beyond the expected moderation. We could also lower the rating if petcoke supply is stifled due to reduced oil refinery activities." In such scenarios, S&P will expect: -- Adjusted leverage to exceed 6x -- Gross Margins below 16% S&P could raise its rating if the company if the company is able to sustain S&P Global Ratings-adjusted leverage below 4x. This could happen if the company demonstrates stability in its earnings for several quarters and/or executes a more conservative financial policy flexed towards debt reduction beyond the mandatory amortization. PIPELINE FOODS: Wins Cash Collateral Access ------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware has authorized Pipeline Foods, LLC, and its affiliated debtors to use cash collateral on a final basis. The Debtors have a critical need to continue using prepetition collateral, including cash collateral, in order to permit, among other things, the orderly continuation of the operation of their organization; maintain business relationships with vendors, suppliers, and customers; make payroll; and satisfy other working capital and operational needs. On June 26, 2018, Pipeline Foods, LLC, as borrower, and each of the other Debtors, as guarantors, entered into an Uncommitted Revolving Credit Agreement, pursuant to which Cooperatieve Rabobank U.A., New York Branch, as administrative agent, issuer and lender, along with ING Capital LLC, as lender, and CoBank, ACB, as lender, agreed to make revolving loans in an aggregate amount of $60,000,000 to Pipeline Foods. Additionally, pursuant to the Credit Agreement, Cooperatieve Rabobank U.A., New York Branch, agreed to make swingline loans to Pipeline Foods in an aggregate amount not exceeding $5,000,000. As of the Petition Date, the Debtors were liable to the Prepetition Rabobank Secured Parties pursuant to the Prepetition Rabobank Loan Documents for: (a) the aggregate principal amount not less than (1) $42,553,512.64 in respect of the Revolving Loans made to Pipeline Foods, and (2) $1,800,000 in respect of the Letters of Credit issued on behalf of Pipeline Foods, if the letters of credit are ultimately drawn; and (b) accrued and unpaid interest, fees, expenses (including advisors fees and expenses, in each case, that are chargeable or reimbursable under the Prepetition Rabobank Loan Documents), disbursements, charges, claims, indemnities and other costs and obligations of whatever nature incurred in connection therewith which are chargeable or otherwise reimbursable under the Prepetition Rabobank Loan Documents or applicable law. Pursuant to and in connection with the Prepetition Rabobank Loan Documents, each Debtor granted to Rabobank as collateral agent, for the benefit of the Prepetition Rabobank Secured Parties, continuing, legal, valid, binding, properly perfected, enforceable, non-avoidable first priority liens on and security interests in all of the "Collateral." Pipeline Foods, as borrower, and Compeer as lender, entered into a Credit Agreement, dated as of February 22, 2019. This agreement provided for a term loan in the amount of $26,000,000. To secure its obligations under the Compeer-Pipeline Foods Credit Agreement, Pipeline Foods granted to Compeer, inter alia, a security interest in all of its personal property. A UCC-1 Financing Statement was filed with the Delaware Secretary of State on February 22, 2019. As adequate protection for the Debtors' use of cash collateral, the Secured Parties are granted valid, binding, continuing enforceable, fully perfected, first priority senior replacement liens and security interests in any and all tangible and intangible pre- and postpetition property of the Debtors. The Adequate Protection Obligations due to the Prepetition Rabobank Agent will constitute allowed superpriority administrative expense claims. The Debtors will pay to the Prepetition Rabobank Agent all accrued and unpaid interests at the non-default rate. The Adequate Protection Obligations due to the Prepetition Rabobank Agent will constitute allowed superpriority administrative expense claims against the Debtors in the amount of any actual diminution (if any) in value of the Prepetition Rabobank Collateral. These events constitute an "Event of Default:" -- the effective date of a confirmed chapter 11 plan in these Chapter 11 Cases; -- the failure to meet or satisfy any of the following milestones: a. entry of an order, in form and substance acceptable to the Prepetition Rabobank Agent (with the consent of the Required Lenders), approving the sale of the Debtors' inventory out of the ordinary course of business pursuant to section 363 of the Bankruptcy Code, on or prior to August 11, 2021; provided, however, that this milestone shall be subject to modification by the Court for Court administrative reasons; b. other Case Milestones as may be agreed to by the Prepetition Rabobank Agent, the Debtors, and the Creditors' Committee; -- the date the Debtors file or otherwise support any motion, pleading, or other document that materially, negatively affects the Prepetition Rabobank Secured Parties, provided, that if, pursuant to a plan of reorganization, the Prepetition Rabobank Obligations and any Adequate Protection Obligations are Paid in Full on the effective date of such plan, such consent shall not be required; -- the date the Debtors object to or otherwise fail to approve any Revised Budget; -- five business days after the expiration of the Budget unless a supplemental Budget has been agreed upon by the Debtors and the Prepetition Rabobank Agent (with the consent of the Required Lenders); -- five business days after the issuance by any governmental authority, including any regulatory authority or court of competent jurisdiction (but excluding, for the avoidance of doubt, any Indian tribe, or court, tribunal, judiciary, committee or instrumentality thereof), of any ruling, judgment, or order enjoining the consummation of or rendering illegal the Plan and either (i) such ruling, judgment, or order has been issued at the request of or with the acquiescence of the Debtors or (ii) in all other circumstances, such ruling, judgment, or order has not been stayed, reversed, or vacated within 30 days after such issuance; -- any Debtor's failure to comply with any of the material terms or conditions of the Final Order, including, but not limited to, (a) the use of Cash Collateral for any purpose other than as permitted in this Final Order, or (b) failure to comply with the Budget; -- the failure of the Debtors to make any payment under the Final Order to the Prepetition Rabobank Agent within five business days after such payment becomes due (other than payments required under Paragraphs 5(iv) and 5(v) of the Final Order, which payments shall be made as required therein); -- the date of the Debtors' filing of an application, motion, or other pleading seeking to amend, modify, supplement, or extend this Final Order without the prior written of the Prepetition Rabobank Agent; -- the Final Order ceases, for any reason (other than by reason of the express written agreement by the Prepetition Rabobank Agent (with the consent of the Required Lenders), to be in full force and effect in any material respect, or any Debtor so asserts in writing, or the Adequate Protection Liens or Adequate Protection Superpriority Claims created by the Final Order cease in any material respect to be enforceable and of the same effect and priority purported to be created hereby or any Debtor so asserts in writing; -- the Court will have entered an order reversing, amending, supplementing, staying, vacating, or otherwise modifying the Final Order in a manner materially adverse to the Prepetition Rabobank Secured Parties without the consent of the Prepetition Rabobank Agent (with the consent of the Required Lenders); -- the date of an application, motion, or other pleading is filed by the Debtors for the approval of any superpriority claim or any lien in these Chapter 11 Cases that is pari passu with or senior to the Adequate Protection Superpriority Claims, or the Adequate Protection Liens without the prior written consent of the Prepetition Rabobank Agent (with the consent of the Required Lenders); -- the date any of the Debtors file any pleading or commence any action against the Prepetition Rabobank Secured Parties challenging the validity or enforceability of the Prepetition Rabobank Obligations or the Prepetition Rabobank Liens or seeking to avoid, disallow, subordinate, or recharacterize any claim, lien, or interest held by any of the Prepetition Rabobank Secured Parties arising under or related to the Prepetition Rabobank Obligations; -- the date (a) any court enters an order dismissing the Chapter 11 Cases, converting the Chapter 11 Cases to cases under chapter 7 of the Bankruptcy Code, appointing a trustee, responsible officer, or examiner with expanded powers relating to the operation of the organization in the Chapter 11 Cases, or terminating the Debtors' exclusivity under Bankruptcy Code section 1121, unless consented to in writing by the Prepetition Rabobank Agent (with the consent of the Required Lenders), or (b) the Debtors apply for, consent to, acquiesce in any such dismissal, conversion, or appointment; -- the Court will have entered an order granting relief from the automatic stay to the holder or holders of any security interest to permit foreclosure (or the granting of a deed in lieu of foreclosure or the like) on any of the Debtors' assets which have an aggregate value in excess of $50,000; -- the return of goods pursuant to Bankruptcy Code section 546(h) (or other return of goods on account of any prepetition indebtedness) to any creditor of any Debtor or any creditor's taking any setoff against any of its prepetition indebtedness based upon any such return of goods pursuant to Bankruptcy Code section 553 or otherwise; and -- the filing of any pleading by any Debtor in support of (in any such case by way of any motion or other pleading filed with the Court or any other writing to another party in interest executed by or on behalf of any such Debtor) any other person's opposition to any motion filed in the Court by the Prepetition Rabobank Agent or the Prepetition Rabobank Secured Parties seeking confirmation of the amount of its claims or the validity or enforceability of the Prepetition Rabobank Liens or the Adequate Protection Liens, except with regard to good faith disputes over the payment of expenses and fees. A copy of the order and the Debtor's 12-week budget is available at https://bit.ly/3mpV4GE from Stretto, the claims agent. The Debtor projects $28,636 in total receipts and $5,830 in total operating disbursements. About Pipeline Foods Pipeline Foods -- 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. Its dedicated team brings transparent, sustainable supply chain solutions to connect the dots for its farming partners and end users of organic grains and ingredients. Pipeline Foods LLC 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. In the petition signed by CRO Winston Mar, Pipeline Foods estimated assets between $100 million and $500 million and estimated liabilities of between $100 million and $500 million. The cases are handled by Honorable Judge Karen B. Owens. Pipeline Foods is represented by Saul Ewing Arnstein & Lehr, LLP with Michael Gesas as lead counsel. SierraConstellation Partners serves as financial advisor. Winston Mar of SierraConstellation Partners serves as CRO. Stretto serves as claims agent. Bryan Cave Leighton Paisner LLP serves as counsel to the Board of Directors. PIZ FAMILY: Seeks to Hire Genova & Malin as Legal Counsel --------------------------------------------------------- Piz Family Deli, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of New York to hire Genova, Malin & Trier, LLP, as its counsel. The firm's services include: a. advising the Debtor regarding its powers and duties in the management of its property; b. taking the necessary actions to void liens against the Debtor's property; c. preparing bankruptcy schedules and legal papers; and d. other legal services necessary to administer the case. Michelle Trier, Esq., a partner at Genova & Malin, disclosed in court filings that the firm is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Andrea B. Malin, Esq. Michelle L. Trier, Esq. Genova & Malin Hampton Business Center 1136 Route 9 Wappingers Falls, NY 12590 Telephone: (845) 298-1600 About Piz Family Deli, Inc. Piz Family Deli, Inc. filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 21-35618) on August 13, 2021, listing $100,001 to $500,000 in both assets and liabilities. Judge Cecelia G. Morris presides over the case. Michelle L Trier, Esq. at Genova & Malin represents the Debtor as counsel. PRIME ECO: Seeks Approval to Hire Wells & Bedard as CPA ------------------------------------------------------- Prime Eco Group, Inc. and Prime Eco Supply, LLC seek approval from the U.S. Bankruptcy Court for the Southern District of Texas to hire Wells & Bedard, P.C. as its accountants. The firm will be preparing corporate and personal tax returns, preparation of Monthly Operating Reports, Monthly Financial Reports, monthly reconciliation, any other business services directly related to these proceedings. The firm will be paid as follows: -- a flat fee of $3,500 for preparing the 2020 corporate tax return -- a flat fee of $1,500 for preparing the 2020 personal tax return; -- a monthly fee of $350 for preparing Prime Eco Group, Inc.'s Monthly Operating Reports; -- a monthly fee of $125 for preparing Prime Eco Supply, LLC's Monthly Operating Reports; -- a monthly fee of $125 for preparing the personal Monthly Financial Report; -- a monthly fee of $539.84 for QuickBooks software hosting reimbursement; -- a monthly fee of $250 to review and adjust entries of corporate books; -- a flat fee of $2,500 to reconcile corporate books to the 2019 Tax Return, review books and make necessary adjusting; -- a flat fee of $2,000 for initial setup of the corporate tax return in tax software including entering all fixed assets for depreciation; -- a flat fee of $2,000 for preliminary work on the Employee Retention Tax Credit to resume after the end of the 3rd and 4th Quarter; and -- $300 per hour for consulting and additional projects that arise, which includes all expenses relative to the completion of the service or document. Wells & Bedard represents no interest adverse to the Debtors or their estate in the matters upon which it will be engaged by the Debtors, according to court filings. The firm can be reached through: Don Bedard, CPA Wells & Bedard P.C. CPAs 24 Greenway Plaza, Suite 440 Houston, TX 77046 Phone: +1 713-871-1530 About Prime Eco Group and Prime Eco Supply Prime Eco Group, Inc. and Prime Eco Supply, LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas Case Nos. 21-32560 and 21-32561) on July 30, 2021. At the time of the filing, Prime Eco Group disclosed $3,057,685 in assets and $3,587,476 in liabilities while Prime Eco Supply disclosed $107,969 in assets and $527,681 in liabilities. The Law Office of Margaret M. McClure is the Debtor's legal counsel. PRINTEX INC: Seeks to Hire Wade Stables as Tax Preparer ------------------------------------------------------- Printex, Inc. seeks approval from the U.S. Bankruptcy Court for the Eastern District of Missouri to hire Wade Stables P.C. as tax preparer. Paul Richards, a partner at Wade Stables and the firm's accountant who will be providing the services, will charge $150 per hour. Mr. Richards disclosed in a court filing that he and the firm do not represent interests adverse to the estate or to the Debtor. The firm can be reached through: Paul Richards, CPA Wade Stables P.C. PO Box 796 100 N 6th St. Hannibal, MO 63401 Email: prichards@wadestables.com About Printex Inc. Printex Inc. and its affiliates, Medford Randal Park and Midamerica Pick & Pack Inc., sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Mo. Lead Case No. 19-20132) on May 31, 2019. At the time of the filing, Printex listed assets of between $1 million to $10 million and liabilities of the same range. Meanwhile, Midamerica Pick listed up to $50,000 in assets and up to $10 million in liabilities. Judge Bonnie L. Clair oversees the cases. The Debtors tapped Cruse.Chaney-Faughn PC as legal counsel, Ousley Group LLC as financial consultant, and Wade Stables P.C. as tax preparer. PROFESSIONAL FINANCIAL: Affiliate Seeks to Hire Real Estate Agent ------------------------------------------------------------------ Professional Investors 39, LLC, an affiliate of Professional Financial Investors Inc., seeks approval from the U.S. Bankruptcy Court for the Northern District of California to employ Matthew Storms, a real estate agent at Keegan & Coppin Company Inc. Mr. Storms will assist the Debtor in selling its commercial real properties located at 523 4th St. and 930 Irwin St., San Rafael, Calif. The Debtor has agreed to pay the real estate agent a commission equal to 2.50 percent of the purchase price of the property. Mr. Storms disclosed in a court filing that he and all the members of Keegan & Coppin are disinterested persons who do not hold or represent an interest adverse to the Debtor's estate. The firm can be reached through: Matthew Storms Keegan & Coppin Company Inc. 1355 North Dutton Avenue Santa Rosa, CA 95401 Phone: (415) 461-1010 Fax: (415) 925-2310 Email: MStorms@KeeganCoppin.com About Professional Financial Investors Professional Financial Investors, Inc. and Professional Investors Security Fund, Inc. are both engaged in activities related to real estate. On July 16, 2020, a group of creditors filed an involuntary Chapter 11 petition (Bankr. N.D. Calif. Case No. 20-30579) against Professional Investors Security Fund. On July 26, 2020, Professional Financial Investors sought Chapter 11 protection (Bankr. N.D. Calif. Case No. 20-30604). On Nov. 20, 2020, Professional Financial Investors filed involuntary Chapter 11 petitions against Professional Investors Security Fund I, A California Limited Partnership and 28 other affiliates. The cases are jointly administered under Case No. 20-30604. At the time of the filing, Professional Financial Investors disclosed assets of between $100 million and $500 million and liabilities of the same range. Judge Dennis Montali oversees the cases. The Debtors tapped Sheppard, Mullin, Richter & Hampton, LLP, as their legal counsel; Trodella & Lapping LLP as conflicts counsel; Ragghianti Freitas LLP, Weinstein & Numbers LLP, Wilson Elser Moskowitz Edelman & Dicker LLP, Nardell Chitsaz & Associates, and Kimball Tirey & St. John, LLP as special counsel; and Armanino LLP as tax accountants and financial advisors. Donlin, Recano & Company, Inc. is the claims, noticing, and solicitation agent and administrative advisor. FTI Consulting Inc. serves as the Debtors' financial advisor. Andrew Hinkelman, senior managing director at FTI, is the chief restructuring officer. On Aug. 19, 2020, the Office of the U.S. Trustee appointed a committee of unsecured creditors. The committee is represented by Pachulski Stang Ziehl & Jones, LLP. PURDUE PHARMA: Creditors Defend Sackler Deal to Avoid Costly Trial ------------------------------------------------------------------ Jonathan Randles of The Wall Street Journal reports that Purdue Pharma LP and creditor groups supporting the OxyContin maker's bankruptcy plan on Monday, August 23, 2021, defended a $4.5 billion settlement with its controlling family. Purdue Pharma LP on Monday defended a $4.5 billion settlement with the drugmaker's Sackler family owners, saying the proposed deal averts a long, costly legal fight to access family wealth housed overseas and in hard-to-reach trusts. Marshall Huebner, a lawyer representing Purdue, said during closing arguments of a trial scrutinizing the settlement that the company believes it has strong legal claims against the Sacklers, including clawing back transfers made to the family before Purdue's 2019 bankruptcy filing. 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 for 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: Ex-Director Mortimer Shocked by Guilty Plea ---------------------------------------------------------- Jonathan Randles of The Wall Street Journal reports that former Purdue Pharma LP director Mortimer D.A. Sackler testified Thursday, August 19, 2021, he was "shocked and disappointed" when he learned 2020 the drugmaker his family owns pleaded guilty to federal felonies over its marketing and sale of the opioid OxyContin, saying management assured the board it was complying with relevant laws. Mr. Sackler said during the second week of a trial in Purdue's bankruptcy case that before he left the drugmaker's board in late 2018. 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: Ex-Pres. Sackler Distances from Sales Program ------------------------------------------------------------ Jonathan Randles of The Wall Street Journal reports that former Purdue Pharma LP president Richard Sackler distanced himself from a program pitched years ago by consulting giant McKinsey & Co. to increase OxyContin sales and denied that his family or the company are responsible for the opioid epidemic. Dr. Sackler said that although he remembered having a call with McKinsey about research it had done for the drugmaker, he said during testimony on Wednesday in Purdue's bankruptcy trial he didn't recall some details about certain marketing and sale programs including an initiative called "Evolve to Excellence" that federal authorities have alleged led healthcare providers to write medically-unnecessary prescriptions of OxyContin, an opioid painkiller. McKinsey agreed earlier this 2021 to a $573 million settlement with state authorities over advice it gave Purdue and other drugmakers on opioid painkillers, without admitting wrongdoing. Dr. Sackler's testimony about the E2E program came during the second week of a bankruptcy trial scrutinizing a proposed settlement of litigation against he and other members of Purdue's controlling family alleging they bear responsibility for fueling the opioid crisis. If approved, the agreement would shield the Sacklers from civil lawsuits over OxyContin in exchange for roughly $4.5 billion from family members to fund opioid abatement programs. The family would also cede control of Purdue under the proposal, which is being challenged by a handful of state and federal authorities. Dr. Sackler, who was also a longtime member of Purdue's board, denied that he, his family or the company are responsible for the opioid crisis and testified that he doesn't know how many people have died as a result of OxyContin or opioid overuse. He left the board in 2018. "Does the Sackler family have any responsibility for the opioid crisis in the United States?" a lawyer representing the state of Washington, which is opposing the settlement, asked during Wednesday's, August 18, 2021, hearing. "No," Dr. Sackler said. "Does Purdue Pharma have any responsibility for the opioid crisis in the United States?" "No," he said. Nearly 247,000 people in the U.S. died from 1999 to 2019 from overdoses involving prescription opioids, according to the Centers for Disease Control and Prevention. Overdose deaths in the U.S. surged last year during the Covid-19 pandemic, largely the result of synthetic opioids like fentanyl. He testified a day after his son, former Purdue director David Sackler, said on the witness stand that his family has a "moral responsibility," though not a legal responsibility, to help address the opioid epidemic, which he said the settlement is meant to do. Dr. Sackler was also asked Wednesday about OxyContin sales programs. When questioned about Purdue's marketing programs, Dr. Sackler said he rarely spoke with sales employees and said company management was responsible for providing him and other board members with information about such initiatives. Dr. Sackler said that although he remembered being briefed on elements of the E2E program, he couldn't recall if the board voted to proceed with the initiative. He also denied claims that Purdue launched an aggressive marketing program aimed at healthcare providers. Memos that McKinsey sent Purdue executives in 2013 and made public in bankruptcy-court filings included recommendations that the company’s sales team target healthcare providers it knew wrote the highest volumes of OxyContin prescriptions and shift away from lower-volume prescribers. Dr. Sackler testified Wednesday, August 18, 2021, that although he didn't recall most of McKinsey's advice, he said he remembered a recommendation that Purdue make more sales calls to healthcare providers who prescribe the most OxyContin prescriptions. McKinsey recommended ways Purdue could better target what it described as "higher value" prescribers and take other steps to "Turbocharge Purdue's Sales Engine," according to court records. The consulting firm stopped doing opioid-related work in 2019 and said in December its work for Purdue was intended to support the legal use of opioids and help patients with legitimate medical needs. Purdue filed for chapter 11 protection in September 2019 following a deluge of opioid-related lawsuits and pleaded guilty to federal felonies last year over its marketing of OxyContin. The Sacklers have denied wrongdoing and defended themselves against allegations that their stewardship of Purdue contributed to the opioid crisis. The younger Mr. Sackler testified Tuesday that the family would only fund the settlement, if it includes broad legal releases protecting them from pending civil lawsuits over OxyContin, potential future litigation over the opioid painkiller as well as other non-opioid products made by Purdue. Lawyers said Wednesday, August 18, 2021, that the bankruptcy trial could conclude next week. 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: Hires Sullivan & Worcester as Conflicts Counsel -------------------------------------------------------------- Purdue Pharma L.P. and its affiliates seeks approval from the U.S. Bankruptcy Court for the Southern District of New York to hire Sullivan & Worcester LLP as its special conflicts counsel. The Debtors have retained Davis Polk & Wardwell LLP as their attorneys to represent them in these Chapter 11 Cases as general restructuring counsel. The Debtors wishes to employ and retain Sullivan & Worcester to handle any matters that the Debtors may encounter which may not be handled by Davis Polk due to a potential or actual conflict of interest with certain creditors of the Debtors or other parties in interest in these cases, and to perform such other discrete duties. The firm will be paid at these rates: Partners $570 - $1,550 Of Counsel $630 - $1,160 Counsel $500 - $975 Associates $415 - $660 Paralegals $235 - $450 Law Clerks $155 - $260 The rates for the attorneys currently assigned to the case are: Jeffrey Gleit (Partner) $900 Amy A. Zuccarello (Partner) $750 Allison Weiss (Counsel) $750 Nathaniel R.B. Koslof (Associate) $605 Ryan Rosenblatt (Associate) $530 Jeffrey R. Gleit, Esq., a partner at Sullivan & Worcester, assured the court that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. In accordance with Appendix B-Guidelines for Reviewing Applications for Compensation and Reimbursement of Expenses Filed under 11 U.S.C. Sec. 330 for Attorneys in Larger Chapter 11 Cases, Mr. Gleit disclosed that: -- it has not agreed to any variations from, or alternatives to, its standard or customary billing arrangements for this engagement; -- none of the professionals included in the engagement vary their rate based on the geographic location of the bankruptcy case; -- the firm has not represented the Debtors in the 12 months prepetition; and -- as of the date of this application, Sullivan & Worcester has not yet formulated a budget. The firm will formulate a budget and staffing plan for this proposed retention which it will review with the Debtors, as contemplated by Part E of the Appendix B Guidelines. Sullivan can be reached through: Jeffrey R. Gleit, Esq. Allison Weiss, Esq. Sullivan & Worcester LLP 1633 Broadway New York, NY 10019 Phone: (212) 660-3000 Phone: (212) 660-3043 Phone: (212) 660-3031 Fax: (212) 660-3001 Email: jgleit@sandw.com Email: aweiss@sandw.com 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: Narrows Down Sackler Releases After Judge Comments ----------------------------------------------------------------- Jeremy Hill of Bloomberg News reports that Purdue Pharma narrows Sackler releases following judge comments. Lawyers for Purdue Pharma LP narrowed the controversial releases for members of the Sackler family embedded in the drugmaker's bankruptcy plan after Judge Robert Drain said he was concerned by their scope. The OxyContin maker updated bankruptcy plan documents to shrink, and more clearly define, the legal insulation from future lawsuits that would be granted to certain members of the Sackler family, entities they've given money to and advisers to the company, a lawyer for Purdue said in court on Monday, August 23, 2021. For example, the documents now make clear that Purdue’s owners won't be released from legal claims unrelated to opioids. 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. RESTORATIVE BRAIN: U.S. Trustee Unable to Appoint Committee ----------------------------------------------------------- The U.S. Trustee for Region 13 on Aug. 23 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of Restorative Brain Clinic, Inc. About Restorative Brain Restorative Brain Clinic, Inc. owns and operates a mental health facility for men, women, and children in south Kansas City, Mo. Restorative Brain Clinic sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Mo. Case No. 21-40866) on July 13, 2021, disclosing $117,100 in assets and $1,467,469 in liabilities. Judge Dennis R. Dow oversees the case. The Debtor tapped WM Law, PC as legal counsel. ROSIE'S LLC: Seeks to Hire Moye White as Legal Counsel ------------------------------------------------------ Rosie's, LLC seeks approval from the U.S. Bankruptcy Court for the District of Colorado to hire Moye White, LLP to serve as legal counsel in its Chapter 11 case. The firm's services include: a. assisting in the preparation of the Debtor's bankruptcy schedules and statement of financial affairs and other documents; b. assisting in the preparation of the Debtor's plan of reorganization and disclosure statement; c. preparing legal papers; d. representing the Debtor in adversary proceedings and contested matters related to its Chapter 11 case; e. advising the Debtor regarding its rights, powers, obligations and duties in the continued operation of its business and administration of its estate; and f. other legal services necessary to administer the estate. The attorneys who will work on this case include Timothy Swanson, Esq., and Patrick Akers, Esq., whose respective billing rates are $450 per hour and $320 per hour. Paralegals and assistants charge $245 per hour and $175 per hour, respectively. The firm received a security retainer of $46,320 from the equity owners. Moye White is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code, according to court papers filed by the firm. The firm can be reached through: Timothy M. Swanson, Esq. Patrick Akers, Esq. Moye White LLP 1400 16th Street 6th Floor Denver, CO 80202-1486 Tel: (303) 292-2900 Fax: (303) 292 4510 Email: Tim.Swanson@moyewhite.com Patrick.Akers@moyewhite.com About Rosie's LLC Rosie's, LLC, a Sterling, Colo.-based company engaged in renting and leasing real estate properties, filed a voluntary petition for Chapter 11 protection (Bankr. D. Colo. Case No. 21-14259) on Aug. 16, 2021, listing as much as $50 million in both assets and liabilities. David W. Lebsock, the Debtor's manager, signed the petition. Moye White, LLP represents the Debtor as legal counsel. SAMARCO MINERACAO SA: Must Submit Its DIP Loan Plan to Trustee -------------------------------------------------------------- Mariana Durao and Cristiane Lucchesi of Bloomberg News report that a judge said in an injunction that Samarco Mineracao SA, a Brazilian iron-ore producer jointly owned by Vale SA and BHP Group, will have to open a new competitive process to receive offers for a loan before taking any financing. The company must give interested parties 15 days to submit the debtor-in-possession loan proposals to the trustee responsible for its bankruptcy protection process in order to choose the best offer, Judge Carlos Roberto de Faria wrote in a decision dated Aug. 16, which was posted Friday, August 20, 2021, on the Minas Gerais court website. About Samarco Mineracao SA Samarco Mineracao SA is a Brazilian mining joint venture between BHP Group and Vale SA. erves as an iron ore processing company. The company provides blast furnace, direct reduction, sinter feed, as well as low and normal silica content pellets. On April 9, 2021, the Debtor filed a voluntary petition for judicial reorganization in the 2nd Business State Court for the Belo Horizonte District of Minas Gerais in Brazil pursuant to Brazilian Federal Law No. 11,101 of February 9, 2005. Samarco Mineracao filed for Chapter 15 bankruptcy recognition (Bankr. S.D.N.Y. Case No. 21-10754) on April 19, 2021, in New York, to seek U.S. recognition of its Brazilian proceedings. The Debtor's U.S. counsel: Thomas S. Kessler Cleary Gottlieb Steen & Hamilton LLP Tel: 212-225-2000 E-mail: tkessler@cgsh.com SANCHEZ ENERGY: Bondholders Sue Fidelity Over Massive Returns ------------------------------------------------------------- Becky Yerak of The Wall Street Journal reports that a representative of junior creditors sued Fidelity and Apollo over financing supplied after Sanchez Energy left chapter 11 last 2020. Sanchez Energy Corp. has minted big gains for lender Fidelity Management & Research Co. after flirting with liquidation last year, according to company bondholders that now want the investment firm's dealings with Sanchez reined in. A bondholder lawsuit filed Friday targets financing deals that Fidelity and Apollo Global Management Inc. reached with Sanchez after it exited chapter 11 last 2020, saying the lenders have seized too much control over the reorganized business and have enjoyed "massive" returns. About Sanchez Energy Corp. Sanchez Energy Corporation and its affiliates -- https://sanchezenergycorp.com/ -- are independent exploration and production companies focused on the acquisition and development of U.S. onshore oil and natural gas resources. Sanchez Energy is currently focused on the development of significant resource potential from the Eagle Ford Shale in South Texas, and holds other producing properties and undeveloped acreage, including in the Tuscaloosa Marine Shale (TMS) in Mississippi and Louisiana. As of Dec. 31, 2018, the companies had approximately 325,000 net acres of oil and natural gas properties with proved reserves of approximately 380 million barrels of oil equivalent and interests in approximately 2,400 gross producing wells. Sanchez Energy and 10 affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 19-34508) on Aug. 11, 2019. As of June 30, 2019, the companies disclosed $2,159,915,332 in assets and $2,854,673,930 in liabilities. The cases have been assigned to Judge Marvin Isgur. The companies tapped Akin Gump Strauss Hauer & Feld LLP and Jackson Walker L.L.P. as bankruptcy counsel; Moelis & Company LLC as financial advisor; Alvarez & Marsal North America LLC as restructuring advisor; and Prime Clerk LLC as notice and claims agent. The Office of the U.S. Trustee appointed a committee of unsecured creditors on Aug. 26, 2019. The committee tapped Milbank LLP and Locke Lord LLP as its co-counsel. SEADRILL LTD: Reports Financial Results for First Half 2021 ----------------------------------------------------------- Seadrill Limited (OSE: SDRL) (OTCPK: SDRLF), a world leader in offshore drilling, on Aug. 20 announced a commercial update and provides financial results for the six months ended June 30, 2021. Highlights Operational/Commercial * Technical utilization of 92% and economic utilization of 88% due to downtime incidents on West Saturn and West Tellus. Excluding these units, technical utilization and economic utilization stood at 98% and 94% respectively. * Thirteen owned units operating as of June 30, 2021, with three additional units returning to operations in the second half of 2021. In addition, ten non-owned units remain under Seadrill's management. * Total backlog of $2.1 billion with approximately $0.5 billion added during the first half of the year. Health, Safety, and Environment ("HSE") * Record safety performance with Total Injury Frequency Rate ("TRIR") better than industry average. * Maintained our industry-leading carbon management position. Financial * Operating loss decreased to $252 million, includes non-cash impairment of $152 million against the West Hercules rig. * Cash and cash equivalents as at June 30, 2021 of $644 million of which $428 million was unrestricted. Subsequent Events * Major milestones reached towards emergence from Chapter 11 bankruptcy by entering restructuring agreements with certain senior secured lenders and senior note holders, representing 58% and 79% of debt outstanding, respectively. The proposed plan leaves current shareholders with approximately 0.25% of the go forward equity and as a consequence they face a significant deterioration in value. * Separate agreements reached with SFL Corporation, to reduce our commitments on the lease agreement for the West Hercules, and with Northern Ocean Ltd., to close out all outstanding balances and claims. * Approximately $120 million of backlog added after the period end, including contracts secured for the West Hercules in Canada and the West Gemini in Angola. Stuart Jackson, CEO, commented: "Seadrill has continued to operate effectively and safely throughout H1 2021, despite ongoing disruptions caused by COVID-19 challenging the industry's logistical capabilities. We are delighted to have increased our order backlog during the period after signing agreements with a number of customers, and we continue to execute on our plan to positively streamline our operations, taking out assets that will not go back to work and addressing the broader leverage issues through the Chapter 11 process. Looking forward, we will continue to leverage our technical and functional excellence to maintain our leading position in the offshore drilling industry, evident by our West Saturn drillship where the introduction of hydrogen fuel is set to significantly reduce fuel consumption and our carbon footprint. Addressing the leverage of offshore drilling entities and progressing on the journey on asset rationalization are the first important steps prior to looking to the next stage of industry rationalization through consolidation, where I expect we will play an active part. The filing of our Plan Support Agreement with strong creditor support marked the next step in this journey for Seadrill." 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 2021 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. SHILO INN BEND: Obtains OK to Use Cash Collateral Thru Sept. 30 --------------------------------------------------------------- Shilo Inn, Bend LLC and Shilo Inn, Warrenton, LLC reached an agreement with each of their secured creditors regarding the use of cash collateral. RSS WFCM2015NXS4-OR SIB, LLC is a successor in interest with respect to a prepetition loan extended to Shilo Bend. RSS WFCM2016NXS5-OR SIW, LLC is also a successor in interest to a prepetition loan extended to Shilo Warrenton. The Secured Creditors have consented to the Debtors' use of the cash collateral in accordance with each Debtor's budget. The Credit Facilities are evidenced by certain notes, security instruments, assignments of leases, and UCC-1 statements, among others. At the parties' behest, Judge Mary Jo Heston of the U.S. Bankruptcy Court for the Western District of Washington authorized the Debtors to use the cash collateral, on an interim basis, pursuant to the parties' agreement, until September 30, 2021 or the occurrence of an event which consists a termination events, among which is the Debtors' failure to deposit on a daily basis all cash receipts and collections into the DIP account(s). Shilo Bend's budget provided for $254,920 in total cost of goods/services sold, and $540,718 in total general and administrative expenses and other cash outflows for the period from August 14 to October 31, 2021. Shilo Warrenton's budget provided for $93,800 in total cost of goods and services sold, and $262,886 in total general and administrative expenses and other cash outflows for the same period. The Secured Creditors are each granted -- to the extent of the Adequate Protection Obligations -- a first priority, automatically perfected, post-petition security interest and lien in the respective Debtor’s assets, to the same priority, validity and extent that the Secured Creditor held a properly perfected pre-petition security interest in such assets that have been acquired after Petition Date. A copy of the agreed order is available for free at https://bit.ly/3j7EM34 from PacerMonitor.com. The Court will convene a final hearing on the Debtors' use of cash collateral on September 29, 2021 at 10 a.m. Objections, if any, must be filed and served no later than September 22. The Debtors must reply to any such objection(s) no later than September 24. Counsel for Secured Creditors, RSS WFCM2015NXS4-OR SIB, LLC and RSS WFCM2016NXS5-OR SIW, LLC: David W. Criswell, Esq. James B. Zack, Esq. Lane Powell PC 601 SW Second Ave., Ste. 2100 Portland, OR 97204-3158 Telephone: (503) 778-2100 Facsimile: (503) 778-2200 Email: criswelld@lanepowell.com zackj@lanepowell.com About Shilo Inn, Bend, and Shilo Inn, Warrenton Shilo Inn, an independently owned and operated hospitality company with locations in seven western states and Texas, operate Shilo Inn, Bend, LLC and Shilo Inn, Warrenton, LLC in Oregon. On August 13, 2021, the companies contemporaneously filed voluntary Chapter 11 petitions with the U.S. Bankruptcy Court for the Western District of Washington. The cases are jointly administered under Shilo Inn, Bend, LLC's case (Bankr. W.D. Lead Case No. 21-41340). Judge Mary Jo Heston presides over the cases. On the Petition date, Shilo Inn, Bend estimated $10 million to $50 million in both assets and liabilities, while Shilo Inn, Warrenton estimated $1 million to $10 million in both assets and liabilities. The petitions were signed by Mark Hemstreet as secretary of Shilo Bend Corp., the Debtors' manager. Stoel Rives LLP represents the Debtors as counsel. SOFT FINISH: Has OK to Use Cash Collateral Until Dec. 31 -------------------------------------------------------- Judge Barry Russell of the U.S. Bankruptcy Court for the Central District of California approved the stipulation between Soft Finish, Inc. and the Internal Revenue Service, pursuant to which the Debtor is authorized to use the IRS cash collateral until December 31, 2021. A copy of the order is available for free at https://bit.ly/3kmGkW6 from PacerMonitor.com. About Soft Finish, Inc. Soft Finish manufactures clothing, specifically denim product such as jeans, denim jackets, skirts, shorts, shirts. Soft Finish specializes in "distressing" garments, taking hard, rigid, untreated denim fabric and washing the product to soften garments and using techniques to "beat up" or "age" garments. Distressing includes hand sanding garments to create natural wear areas, adding holes to garments to make them look used or old, stone washing to give the garment a softer feel and a lighter color as well as other hand treatments. Soft Finish is the successor in interest to US Garment LLC. In late 2017, US Garment LLC transferred its assets to Soft Finish and Soft Finish assumed 100% of the US Garment debt. The owners of US Garment were Jae K. Chung and a minority interest with her son Wesley Chung. Jae K. Chung is the sole owner of Soft Finish. Soft Finish sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 21-12038) on March 15, 2021. In the petition signed by Jae K. Chung, as president, the Debtor disclosed $203,316 in assets and $1,404,553 in liabilities. Judge Barry Russell oversees the case. M. Jonathan Hayes, Esq., at Resnik Hayes Moradi, LLP, is the Debtor's counsel. SONOMA PHARMACEUTICALS: Incurs $1.1 Million Net Loss in 1st Quarter ------------------------------------------------------------------- Sonoma Pharmaceuticals, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $1.10 million on $3.68 million of revenues for the three months ended June 30, 2021, compared to net income of $240,000 on $5.77 million of revenues for the three months ended June 30, 2020. As of June 30, 2021, the Company had $14.12 million in total assets, $9.50 million in total liabilities, and $4.62 million in total stockholders' equity. "Management believes that the Company has access to additional capital resources through possible public or private equity offerings, debt financings, corporate collaborations or other means; however, the Company cannot provide any assurance that other new financings will be available on commercially acceptable terms, if needed. If the economic climate in the U.S. deteriorates, the Company's ability to raise additional capital could be negatively impacted. If the Company is unable to secure additional capital, it may be required to take additional measures to reduce costs in order to conserve its cash in amounts sufficient to sustain operations and meet its obligations. These measures could cause significant delays in the Company's continued efforts to commercialize its products, which is critical to the realization of its business plan and the future operations of the Company. These matters raise substantial doubt about the Company's ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that may be necessary should the Company be unable to continue as a going concern," the Company stated in the regulatory filing. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1367083/000168316821003700/sonoma_i10q-063021.htm About Sonoma Pharmaceuticals Sonoma Pharmaceuticals, Inc. -- http://www.sonomapharma.com-- is a global healthcare company that develops and produces stabilized hypochlorous acid, or HOCl, products for a wide range of applications, including wound care, animal health care, eye care, oral care and dermatological conditions. The Company's products reduce infections, itch, pain, scarring and harmful inflammatory responses in a safe and effective manner. In-vitro and clinical studies of HOCl show it to have impressive antipruritic, antimicrobial, antiviral and anti-inflammatory properties. Its stabilized HOCl immediately relieves itch and pain, kills pathogens and breaks down biofilm, does not sting or irritate skin and oxygenates the cells in the area treated assisting the body in its natural healing process. The Company sells its products either directly or via partners in 54 countries worldwide. Sonoma Pharmaceuticals reported a net loss of $3.95 million for the year ended March 31, 2021, compared to a net loss of $3.31 million for the year ended March 31, 2020. As of March 31, 2021, the Company had $14.99 million in total assets, $9.62 million in total liabilities, and $5.36 million in total stockholders' equity. New York, NY-based Marcum LLP, the Company's auditor since at least 2006, issued a "going concern" qualification in its report dated July 14, 2021, citing that the Company has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. SUNRISE REAL ESTATE: Posts $32.6-Mil. Net Income in Second Quarter ------------------------------------------------------------------ Sunrise Real Estate Group, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing net income of $32.63 million on $5.91 million of net revenues for the three months ended June 30, 2021, compared to a net loss of $1.43 million on $388,298 of net revenues for the three months ended June 30, 2020. For the six months ended June 30, 2021, the Company reported net income of $30.94 million on $8.37 million of net revenues compared to a net loss of $3.22 million on $721,983 of net revenues for the same period a year ago. As of June 30, 2021, the Company had $391.59 million in total assets, $228.31 million in total liabilities, and $163.28 million in total shareholders' equity. For the first two quarters of 2021, the Company's principal sources of cash were revenues from its house sales collection and property management business, as well as the dividend receipt from the affiliates. Most of the Company's cash resources were used to fund its property development investment and revenue related expenses, such as salaries and commissions paid to the sales force, daily administrative expenses and the maintenance of regional offices. The Company ended the period with a cash position of $17,841,207. The Company's operating activities used cash in the amount of $51,086,214, which was primarily attributable to the pre-paid tax of real estate project and payment of bonus to the director. The Company's investing activities provided cash resources of $12,323,638, which was primarily attributable to the dividend received from unconsolidated affiliate. The Company's financing activities provided cash resources of $18,374,565, which was primarily attributable to the restricted cash. The potential cash needs for 2021 include the investment in transactional financial assets, the rental guarantee payments and promissory deposits for various property projects as well as the Company's development of the Linyi project and the Huai'an project. "Considering our cash position, available credit facilities and cash generated from operating activities, we believe that we have sufficient funds to operate our existing business for the next twelve months. If our business otherwise grows more rapidly than we currently predict, we plan to raise funds through the issuance of additional shares of our equity securities in one or more public or private offerings. We will also consider raising funds through credit facilities obtained with lending institutions. There can be no guarantee that we will be able to obtain such funds through the issuance of debt or equity or obtain funds that are with terms satisfactory to management and our board of directors," the Company stated in the regulatory filing. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1083490/000110465921107878/srre-20210630x10q.htm About Sunrise Real The principal activities of Sunrise Real Estate Group, Inc. and its subsidiaries are real estate development and property brokerage services, including real estate marketing services, property leasing services; and property management services in the People's Republic of China. The Company reported a net loss of $4.24 million for the year ended Dec. 31, 2020, compared to a net loss of $4.52 million for the year ended Dec. 31, 2019. TOUCHPOINT GROUP: Posts $1.3 Million Net Loss in Second Quarter --------------------------------------------------------------- Touchpoint Group Holdings, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss attributable to common stockholders of $1.29 million on $34,000 of revenue for the three months ended June 30, 2021, compared to a net loss attributable to common stockholders of $808,000 on $150,000 of revenue for the three months ended June 30, 2020. For the six months ended June 30, 2021, the Company reported a net loss attributable to common stockholders of $2.47 million on $66,000 of revenue compared to a net loss attributable to common stockholders of $846,000 on $190,000 of revenue for the same period during the prior year. As of June 30, 2021, the Company had $2.18 million in total assets, $3.39 million in total liabilities, $605,000 in temporary equity, and a total stockholders' deficit of $1.82 million. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/225211/000175392621000375/g082301_10q.htm About Touchpoint Group Headquartered in Miami, Florida, Touchpoint Group Holdings Inc. -- http://touchpointgh.com-- is engaged in media and digital technology, primarily in sports entertainment and related technologies that bring fans closer to athletes and celebrities. Touchpoint Group reported a net loss of $3.54 million for the year ended Dec. 31, 2020, compared to a net loss of $6.63 million for the year ended Dec. 31, 2019. As of March 31, 2021, the Company had $2.71 million in total assets, $3.01 million in total liabilities, $605,000 in temporary equity, and a total stockholders' deficit of $904,000. Tampa, Florida-based Cherry Bekaert, LLP, the Company's auditor since 2016, issued a "going concern" qualification in its report dated April 9, 2021, citing that the Company has recurring losses and negative cash flows from operations that raise substantial doubt about its ability to continue as a going concern. TRANE TECHNOLOGIES: Judge Questions Move to Hive Off Liabilities ---------------------------------------------------------------- Andrew Scurria of The Wall Street Journal reports that for the second time this August 2021, a North Carolina bankruptcy judge questioned an asbestos manufacturer's move to hive off liabilities. A bankruptcy judge maintained a pause on asbestos-injury litigation against U.S. units of Ireland's Trane Technologies PLC but said the company might have gone too far by placing its asbestos liabilities in chapter 11. Judge J. Craig Whitley of the U.S. Bankruptcy Court in Charlotte, N.C., said that Trane's move to split off its asbestos liabilities away from its core climate-control business before placing them in bankruptcy appears to have had a "material, negative effect" on the legal rights of thousands of injury claimants. About Trane Technologies Trane Technologies plc (formerly known as Ingersoll Rand plc) is an Irish-domiciled diversified industrial manufacturing company formed in 1905 by the merger of Ingersoll-Sergeant Drill Company and Rand Drill Company.It is headquartered near Dublin, Ireland. TUG INC: Seeks to Employ Westside Bookkeeping as Accountant ----------------------------------------------------------- Tug, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Kansas to hire Westside Bookkeeping & Income Tax Service, LLC as its accountant and bookkeeper. The firm's services include the preparation of the Debtor's income tax returns, monthly reports and projections, monthly bookkeeping services, and other accounting services that may be required from time to time. Westside Bookkeeping will charge $200 a month for bookkeeping services, including the preparation of monthly reports, and for any other accounting work. The firm will also charge $600 for the preparation of the Debtor's tax returns. As disclosed in court filings, Westside Bookkeeping neither holds nor represents an interest adverse to the Debtor's bankruptcy estate. The firm can be reached at: Christine Stimmel Westside Bookkeeping & Income Tax Service, LLC 319 South Maize Road Wichita, KS 67209 Phone: (316) 722-8205 Email: westside.svc@sbcglobal.net About Tug Inc. Tug, Inc., a Wichita, Kan.-based company that conducts business under the name Proscape, filed a Chapter 11 petition (Bankr. D. Kan. Case No. 21-10665) on July 15, 2021, listing $339,621 in total assets and $1,089,820 in total liabilities. Tug Inc. President Connor Fosse signed the petition. Judge Dale L. Somers oversees the case. The Debtor tapped Hinkle Law Firm, LLC as legal counsel and Westside Bookkeeping & Income Tax Service, LLC as accountant and bookkeeper. TUMBLEWEED TINY HOUSE: Wins Cash Collateral Access Thru Sept 30 --------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Colorado authorized Tumbleweed Tiny House Company, Inc. to use cash collateral for the period from July 1 through September 30, 2021, or pursuant to a confirmed plan of reorganization, whichever is earlier. The Debtor and PIRS Capital, LLC have reached agreement regarding the terms and conditions for the Debtor's use of cash collateral. As adequate protection for the Debtor's use of cash collateral, PIRS Capital will be granted a replacement lien and security interest upon the Debtor's post-petition assets with the same priority and validity as PIRS's pre-petition liens. To the extent the Adequate Protection Liens prove to be insufficient, PIRS will be granted superpriority administrative expense claims under section 507(b) of the Bankruptcy Code. In addition, the Debtor will pay to PIRS (i) 4% of the Debtor's gross receipts for July 2021 August 21, 2021; (ii) 4% of the Debtor's gross receipts for August 2021 on September 21, 2021; and (iii) 4% of the Debtor's gross receipts for September 2021 on October 21, 2021 or as set forth in a confirmed plan of reorganization. In the event of the Debtor's default under the terms of the interim order, PIRS Capital will be granted a superpriority administrative expense claim for the amount which the Debtor failed to pay. PIRS reserves the right to assert that 8.2% of the Debtor's accounts receivable are not part of the Debtor's estate but rather, owned by PIRS, and that said accounts receivable should be segregated, set aside and paid over to PIRS, and that PIRS's security interest should extend to accounts receivable newly created post-petition. A copy of stipulated order is available for free at https://bit.ly/3kk0q3p from PacerMonitor.com. About Tumbleweed Tiny House Company Tumbleweed Tiny House Company, Inc., a manufacturer of tiny house RVs, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Colo. Case No. 20-11564) on March 4, 2020. At the time of filing, the Debtor estimated between $500,000 and $1 million in assets and between $1 million and $10 million in liabilities. Judge Kimberley H. Tyson oversees the case. Wadsworth Garber Warner Conrardy, P.C., and Gerard Fox Law, P.C., serve as the Debtor's bankruptcy counsel and special counsel, respectively. Stockman Kast Ryan + Company is the Debtor's accountant. URQUHART LLC: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Urquhart, LLC 1087 CR 3031 Carthage, TX 75633 Case No.: 21-60362 Business Description: Urquhart, LLC is engaged in the business of medical equipment and supplies manufacturing. Chapter 11 Petition Date: August 23, 2021 Court: United States Bankruptcy Court Eastern District of Texas Debtor's Counsel: Stephen Shires, Esq. THE LAW OFFICES OF STEPHEN SHIRES PLLC 1316 Louisiana Street Center, TX 75935 Tel: (936) 598-3203 Email: stephen@shireslawfirm.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Monroe Buck Russom as sole member. A copy of the Debtor's list of 20 largest unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/NFABCZQ/Urquhart_LLC__txebke-21-60362__0002.0.pdf?mcid=tGE4TAMA A full-text copy of the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/MYYBEOA/Urquhart_LLC__txebke-21-60362__0001.0.pdf?mcid=tGE4TAMA VERITAS FARMS: Incurs $696K Net Loss in Second Quarter ------------------------------------------------------ Veritas Farms, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $695,946 on $559,940 of revenues for the three months ended June 30, 2021, compared to a net loss of $1.23 million on $2.21 million of revenues for the three months ended June 30, 2020. For the six months ended June 30, 2021, the Company reported a net loss of $1.85 million on $1.45 million of revenues compared to a net loss of $3.55 million on $3.36 million of revenues for the same period a year ago. As of June 30, 2021, the Company had $11.67 million in total assets, $3.96 million in total liabilities, and $7.71 million in total shareholders' equity. As of June 30, 2021, total assets were $11,667,809, as compared to $12,408,021 at Dec. 31, 2020. The decrease in assets is primarily due to a decrease in Right of use assets, net of accumulated amortization related to the Majestic lease termination. Total current liabilities as of June 30, 2021 were $2,777,367, as compared to $3,751,963 at Dec. 31, 2020. The decrease was mainly due to the forgiveness of the 2020 PPP Loan of $803,994. Net cash used in operating activities was $1,512,036 for the six months ended June 30, 2021, as compared to $1,992,675 for the six months ended June 30, 2020. The decrease is largely attributable to the reduction of net losses and reductions in stock-based compensation. Net cash used in investing activities was $37,158 for the six months ended June 30, 2021 as compared to net cash used of $77,423 for the six months ended June 30, 2020, reflecting reduced capital expenditures in 2021. Net cash provided by financing activities was $1,909,566 for the six months ended June 30, 2021 as compared to $1,129,896 for the six months ended June 30, 2020. The 2021 number reflects the net proceeds of $803,994 from the 2021 PPP Loan received in February 2021, net proceeds of $86,895 and $1,805,440 from initial closings under private placements, while the 2020 amount reflects the net proceeds from of a $200,000 convertible loan received in March 2020 and the proceeds of $803,994 from the 2020 PPP Loan. The Company's primary sources of capital to develop and implement its business plan and expand its operations have been the proceeds from private offerings of its equity securities and loans from shareholders. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1669400/000121390021043042/f10q0621_veritasfarms.htm About Veritas Fort Lauderdale, Florida-based Veritas Farms, Inc. -- www.TheVeritasFarms.com -- is a vertically-integrated agribusiness focused on producing, marketing, and distributing superior quality, whole plant, full spectrum hemp oils and extracts containing naturally occurring phytocannabinoids. Veritas Farms owns and operates a 140 acre farm in Pueblo, Colorado, capable of producing over 200,000 proprietary full spectrum hemp plants containing naturally occurring phytocannabinoids which can potentially yield a minimum annual harvest of 250,000 to 300,000 pounds of outdoor-grown industrial hemp. Veritas Farms reported a net loss of $7.59 million for the year ended Dec. 31, 2020, compared to a net loss of $11.15 million for the year ended Dec. 31, 2019. As of Dec. 31, 2020, the Company had $12.41 million in total assets, $4.76 million in total liabilities, and $7.65 million in total stockholders' equity. 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 the Company has sustained substantial losses from operations since its inception. As of and for the year ended Dec. 31, 2020, the Company had an accumulated deficit of $26,667,147, and a net loss of $7,592,539. These factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern. VERTICAL MAC: Gets Approval to Hire Stichter as Legal Counsel ------------------------------------------------------------- Vertical Mac Construction, LLC received approval from the U.S. Bankruptcy Court for the Middle District of Florida to hire Stichter, Riedel, Blain & Postler, P.A. to serve as legal counsel in its Chapter 11 case. The firm's services include: a. rendering legal advice with respect to the Debtor's powers and duties, the continued operation of its business, and the management of its property; b. preparing legal papers; c. appearing before the court and the Office of the U.S. Trustee; d. participating in negotiations with creditors and other parties in interest in preparing a plan of reorganization, and taking necessary legal steps to confirm the plan; e. representing the Debtor in all adversary proceedings, contested matters, and matters involving administration of the case; f. representing the Debtor in negotiations with potential financing sources, and preparing contracts, security instruments and other documents necessary to obtain financing; and g. performing all other legal services. Stichter Riedel received the aggregate sum of $42,500 as payment for its pre-bankruptcy services and as a retainer for post-petition services. Stitcher Riedel is disinterested as defined in Section 101(14) of the Bankruptcy Code, according to court papers filed by the firm. The firm can be reached through: Edward J. Peterson, Esq. Stichter Riedel Blain & Postler, P.A. 110 East Madison Street, Suite 200 Tampa, FL 33602 Telephone: (813) 229-0144 Email: epeterson@srbp.com About Vertical Mac Construction Vertical Mac Construction, LLC, a general contractor that specializes in stucco installations, sought Chapter 11 protection (Bankr. M.D. Fla. Case No. 21-01520) on April 6, 2021, listing as much as $500,000 in both assets and liabilities. Judge Lori V. Vaughan oversees the case. Stichter, Riedel, Blain & Postler, P.A. serves as the Debtor's legal counsel. VPR BRANDS: Posts $265K Net Income in Second Quarter ---------------------------------------------------- VPR Brands, LP filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing net income of $264,786 on $1.71 million of revenues for the three months ended June 30, 2021, compared to a net loss of $50,354 on $1.21 million of revenues for the three months ended June 30, 2020. For the six months ended June 30, 2021, the Company reported net income of $163,135 on $2.96 million of revenues compared to a net loss of $471,944 on $1.80 million of revenues for the six months ended June 30, 2020. As of June 30, 2021, the Company had $1.11 million in total assets, $3.19 million in total liabilities, and a total partners' deficit of $2.08 million. The Company had an accumulated deficit of $10,179,038 and negative working capital of $1,537,368 as of June 30, 2021. As of June 30, 2021, the Company had approximately $16,833 in cash and cash equivalents, which will not be sufficient to fund the operations and strategic objectives of the Company over the next twelve months from the date of issuance of these financial statements. These factors raise substantial doubt regarding the Company's ability to continue as a going concern. VPR Brands said "The Company will be required to obtain additional financing and capital and expects to satisfy its cash needs primarily from the additional issuance of equity securities or indebtedness in order to sustain operations until it can achieve profitability and positive cash flows, if ever. There can be no assurances, however, that adequate additional funding will be available on favorable terms, or at all. If such funds are not available in the future, the Company may be required to delay, significantly modify or terminate its operations, all of which could have a material adverse effect on the Company." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1376231/000089109221006212/vprb10q0621.htm About VPR Brands Headquartered in Ft. Lauderdale, FL, VPR Brands -- http://www.VPRBrands.com-- is a technology company whose assets include issued U.S. and Chinese patents for atomization-related products, including technology for medical marijuana vaporizers and electronic cigarette products and components. The Company is also engaged in product development for the vapor or vaping market, including e-liquids, vaporizers and electronic cigarettes (also known as e-cigarettes) which are devices which deliver nicotine or cannabis and cannabidiol (CBD) through atomization or vaping, and without smoke and other chemical constituents typically found in traditional products. 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 the Company incurred a net loss of $563,779 for the year ended Dec. 31, 2020, has an accumulated deficit of $10,342,173 and a working capital deficit of $1,892,210 at Dec. 31, 2020. These factors, among others, raise substantial doubt regarding the Company's ability to continue as a going concern. WESTERN MIDSTREAM: S&P Upgrades ICR to 'BB+', Outlook Stable ------------------------------------------------------------ S&P Global Ratings raised its issuer credit rating and senior unsecured issue-level rating on Western Midstream Operating L.P. to 'BB+' from 'BB'. The senior unsecured recovery rating of '3' (rounded estimate: 65%) is unchanged. The stable rating outlook on Western is linked to the stable outlook on OXY. The outlook also captures S&P's view that Western will maintain adjusted leverage in the 3.5x-4x range over the next few years as it focuses on generating free cash flow and maintains a somewhat conservative approach to capital allocation. S&P upgraded OXY due to significant deleveraging and improving credit measures. OXY's creditworthiness has strengthened due to significant debt reduction in the past 12-18 months. S&P said, "OXY has repaid more than $12 billion of debt since acquiring Anadarko, and we expect debt reduction to remain a priority, with another $2 billion of debt that may be redeemable heading into 2022. OXY is targeting a near-term capital structure with total debt in the mid-$20 billion area or less. We expect debt reduction to continue and remain a priority, which should drive stronger credit ratios in the coming years. We are anticipating OXY to have average funds from operations (FFO) to debt of almost 20%, with debt to EBITDA of about 4x, which has improved based on our latest oil and gas price forecast, as well as the company's recent tender for more than $3 billion of its notes maturing through 2026." OXY contributes about 65% of Western's revenue so its creditworthiness is a key input when assessing counterparty risk and cash flow stability at Western. The outlook on OXY directly affects S&P's rating outlook on Western because it limits the rating on Western to one notch higher than OXY. S&P thinks Western's conservative financial policy will lead to leverage that remains below 4x and generally declines year over year. At the current rating, leverage compares well with peers. S&P said, "Furthermore, we expect the company to generate material free cash flow over the next two years even as Western uses some of this cash to enhance shareholder returns. We expect the company to consider additional shareholder-related actions once leverage is sustainably at the 3.5x level. The free cash flow generation is supported by the lower capital spending program, which we think will remain more moderate than it was before 2020. The company has been prioritizing debt repayment, leading to sustainable deleveraging, in our view." S&P expects EBITDA to average about $1.9 billion over the next few years. S&P said, "Our forecast assumes gradually rising operating costs and steady volumes across Western's footprint. We expect natural well declines to be offset by new drilling activity, such as additional well connects on its dedicated acreage, new third-party contracts, and increasing activity from some of its producer customers given higher commodity prices. "The rating outlook on Western Midstream reflects our outlook on OXY, its largest customer, because we limit our rating on Western to one notch higher than our rating on OXY given its reliance on the latter as a material counterparty. The stable outlook also captures our view that Western will maintain leverage in the 3.5x-4x range over the next few years as it focuses on generating free cash flow and maintains a somewhat conservative approach to capital allocation." S&P could lower the rating on Western if it took a similar action on OXY. S&P could lower its rating on OXY if: -- Adjusted debt to EBITDA increased and approached 5x, with FFO to debt nearing 12%. This could occur if oil and gas prices retreated for a prolonged period and the company did not meet S&P's cash flow expectations; or -- Contrary to our expectations, S&P came to believe OXY was overly reliant on the capital markets, aggressively spent capital, or favored shareholder returns over debt reduction. S&P said, "We could raise our rating on Western if we raised our rating on OXY while Western maintained its current financial policy and credit measures. We could upgrade OXY if its financial metrics improved relative to our base case scenario such that its average FFO to debt significantly exceeded 20% while its debt to EBITDA approached 3x on a sustained basis, combined with the expectation for further balance sheet strengthening. This would most likely occur if commodity prices increased or the company achieved debt reduction beyond our current expectations while maintaining at least adequate liquidity and prudent financial policy focused on further debt reduction." WESTMOUNT GROUP: Case Summary & 6 Unsecured Creditors ----------------------------------------------------- Debtor: Westmount Group, Inc. 810 N. Kansas Street El Paso, TX 79902 Case No.: 21-30633 Chapter 11 Petition Date: August 23, 2021 Court: United States Bankruptcy Court Western District of Texas Judge: Hon. Christopher H. Mott Debtor's Counsel: Stephen W. Sather, Esq. BARRON & NEWBURGER, P.C. 7320 N. MoPac Expwy., Suite 400 Austin, TX 78731 Tel: (512) 476-9103 Email: ssather@bn-lawyers.com Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Keyvan Parsa as president. A full-text copy of the petition containing, among other items, a list of the Debtor's six unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/ZQVDUZQ/Westmount_Group_Inc__txwbke-21-30633__0001.0.pdf?mcid=tGE4TAMA WOW BAR: Seeks to Use Cash Collateral Thru Final Hearing -------------------------------------------------------- The WOW Bar, LLC asked the U.S. Bankruptcy Court for the District of Minnesota to authorize the use of cash collateral for operational expenses incurred in the ordinary course of the Debtor's business, until the final hearing on the Debtor's request. The working capital cash flow the Debtor filed in Court provided for $342,379 in total projected cash use for the period from September 2021 through February 2022, spread on a monthly basis as follows: $63,839 for September 2021; $47,029 for October 2021; $57,724 for November 2021; $58,799 for December 2021; $57,179 for January 2022; and $57,809 for February 2022. Broco Properties, LLC has an apparent lien in the cash collateral assets. As of the Petition Date, the Debtor owed Broco approximately $218,000 for loans secured by the cash collateral, which as of the Petition Date, total approximately $112,790. The Debtor proposed, as adequate protection, to grant Broco a replacement lien or a security interest in any new assets, materials, and accounts receivable, generated from the use of cash collateral, with the same priority, dignity, and validity of prepetition liens or security interests, to the extent it protects it against diminution in the value of the cash collateral. Broco supports the Debtor's reorganization. A copy of the motion is available for free at https://bit.ly/3j6botU from PacerMonitor.com. The Court will convene a final hearing on the motion on September 8, 2021 at 10:30 a.m. by telephone. Any response or objection must be filed and delivered no later than September 3. Counsel for the Debtor: Alexander J. Beeby, Esq. Thomas J. Flynn, Esq. Larkin, Hoffman, Daly & Lindgren, Ltd. 8300 Norman Center Dr., Ste. 1000 Minneapolis, MN 55437-1060 Telephone: (952) 835-3800 Email: abeeby@larkinhoffman.com tflynn@larkinhoffman.com About The WOW Bar, LLC The WOW Bar, LLC, d/b/a The Wow Bar, Blow Dry & Style Bar, is part of the personal care services industry and provides professional hair beauty services. The company filed a Chapter 11 petition (Bankr. D. Minn. Case No. 21-41457) on August 17, 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 Parrel Caplan as CEO. Judge Kathleen H. Sanberg oversees the case. Larkin Hoffman Daly & Lindgren Ltd. is the Debtor's counsel. YUNHONG CTI: Posts $2.5 Million Net Income in Second Quarter ------------------------------------------------------------ Yunhong CTI Ltd. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing net income of $2.48 million on $6.33 million of net sales for the three months ended June 30, 2021, compared to a net loss of $1.46 million on $5.75 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 $2.10 million on $13.74 million of net sales compared to a net loss of $1.95 million on $12.81 million of net sales for the six months ended June 30, 2020. As of June 30, 2021, the Company had $24.48 million in total assets, $18.22 million in total liabilities, and $6.26 million in total shareholders' equity. Yunhong CTI stated, "The accompanying financial statements for the three and six months ended June 30, 2021 have been prepared assuming the Company will continue as a going concern. The Company's cash resources from operations may be insufficient to meet its anticipated needs during the next twelve months. The Company will require additional financing to fund its future planned operations. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses. Management's plans to continue as a going concern include raising additional capital through sales of equity securities and borrowing, continuing to focus our Company on the most profitable elements, and exploring alternative funding sources on an as needed basis. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. The COVID-19 pandemic has impacted the Company's business operations to some extent and is expected to continue to do so and, in light of the effect of such pandemic on financial markets, these impacts may include reduced access to capital. The ability of the Company to continue as a going concern is dependent upon its ability to successfully secure other sources of financing and attain profitable operations. There is substantial doubt about the ability of the Company to continue as a going concern for one year from the issuance of the accompanying consolidated financial statements. The accompanying consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1042187/000143774921020604/ctib20210630_10q.htm About Yunhong CTI Lake Barrington, Illinois-based Yunhong CTI Ltd. -- www.ctiindustries.com -- develops, produces, distributes and sells a number of consumer products throughout the United States and in over 30 other countries, and it produces film products for commercial and industrial uses in the United States. Many of the Company's products utilize flexible films and, for a number of years, it has been a leading developer of innovative products which employ flexible films including novelty balloons, pouches and films for commercial packaging applications. Yunhong CTI reported a net loss of $4.25 million for the 12 months ended Dec. 31, 2020, compared to a net loss of $8.07 million for the 12 months ended Dec. 31, 2019. As of March 31, 2021, the Company had $23.55 million in total assets, $19.72 million in total liabilities, and $3.82 million in total shareholders' equity. New York, NY-based RBSM LLP, the Company's auditor since 2019, issued a "going concern" qualification in its report dated April 15, 2021, citing that the Company has suffered recurring losses from operations and will require additional capital to continue as a going concern. In addition, the Company is in violation of certain covenants agreed to with PNC Bank which if not resolved could result in PNC Bank initiating liquidation proceedings. This raises substantial doubt about the Company's ability to continue as a going concern. ********* 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. 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