/raid1/www/Hosts/bankrupt/TCR_Public/210826.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Thursday, August 26, 2021, Vol. 25, No. 237
Headlines
ACRO BIOMEDICAL: Delays Filing of Second Quarter Form 10-Q
ADHERA THERAPEUTICS: Delays Filing of Second Quarter Form 10-Q
ADHERA THERAPEUTICS: Receives $210K Under Securities Purchase Deal
AGILON ENERGY: Hires Porter Hedges as Conflict Counsel
AINOS INC: Incurs $750K Net Loss in Second Quarter
AIWA CORP: Wins Cash Collateral Access Thru Sept 3
ALEX AND ANI: Unsecured Creditors to Recover 0% in Joint Plan
ARCLINE FM: S&P Affirms 'B' ICR on Acquisition Plan
AUTO PERFECTION: Unsecureds Will Recover 20% in 5 Years
AUTO-SWAGE PRODUCTS: Taps Levey Miller as Real Estate Broker
BLUE DOLPHIN: Incurs $4.1 Million Net Loss in Second Quarter
BRAZIL MINERALS: Incurs $1.1 Million Net Loss in Second Quarter
C&C CONSTRUCTION: Taps Golan Christie Taglia as Legal Counsel
CBAK ENERGY: Posts $2.7 Million Net Income in Second Quarter
CHESAPEAKE ENERGY: $6.3 Mil. Settlement, $2.9 Mil. Atty Fees Okayed
CIRTRAN CORP: Incurs $250K Net Loss in Second Quarter
CUENTAS INC: Delays Filing of Form 10-Q for Period Ended June 30
DECO-USA LLC: October 5 Plan Confirmation Hearing Set
DESIGN BUILD: Files for Chapter 7 Bankruptcy Protection
DIOCESE OF BUFFALO: Taps Gellert Scali as Special Counsel
DIOCESE OF ROCHESTER: Taps Gellert Scali as Special Counsel
E.L. SERVICES: Case Summary & 20 Largest Unsecured Creditors
EMPIRE TODAY: Moody's Affirms B2 CFR & Rates $60MM Revolver Loan B2
ENERGY ENTERPRISES: Wins Cash Collateral Access
EXTRACTION OIL: FERC Wins Direct 3rd Circ. Appeal in Ch. 11 Dispute
EZTOPELIZ LLC: Taps Nardella & Nardella as Legal Counsel
FINANCIAL GRAVITY: Delays Filing of Third Quarter Form 10-Q
GIRARDI & KEESE: Trustee Says, Co. Owes more Than $101 Million
HASTINGS ESTATE: Unsecureds Unimpaired in Plan
HELIUS MEDICAL: Former COO to Receive $442K Separation Pay
HOME POINT: Fitch Lowers LT IDRs to 'B' & Alters Outlook to Neg.
HTP INC: Case Summary & 20 Largest Unsecured Creditors
IGLESIA NUEVA: Plan and Disclosures Due Sept. 16, 2021
IMERYS TALC: $6.2M Ch. 11 Property Acquisitions Approved
INTELSAT SA: Now Has Backing of 75% of Funded Debt Holders
IRONSTONE GROUP: Posts $130K Net Operating Loss in Second Quarter
JOHNSON & JOHNSON: Cancer Victims Seek to Block Bankruptcy Plan
JOHNSON & JOHNSON: Talc Users Ask Court to Stop Liability Spinoff
JR STRANO HOLDINGS: Taps Van Horn Law Group as Legal Counsel
KATERRA INC: Creditors Committee Notes of Rival Plan
KATERRA INC: Gets Court Okay to Solicit Liquidation Votes
KATERRA INC: Greensill Liquidators Say Plan Patently Unconfirmable
L'OCCITANE INC: Court Confirms U.S. Affiliate's Chapter 11 Plan
L'OCCITANE INC: Exiting Chapter 11 by End of August
LESLIE'S POOLMART: S&P Upgrades ICR 'BB-' on Post-IPO Deleveraging
LEWISBERRY PARTNERS: Taps Walters Appraisal Services as Appraiser
LUMEE LLC: Unsecureds to Recover 24% in Liquidating Plan
MATT'S SMALL ENGINE: To Seek Plan Confirmation on Oct. 20
MDVIP LLC: S&P Places 'B' Issuer Credit Rating on Watch Negative
MEZZ57TH LLC: Wins Cash Collateral Access Thru Sept. 9
MONTEREY MOUNTAIN: Voluntary Chapter 11 Case Summary
MOUNTAIN PROVINCE: Fitch Affirms 'CCC' IDR, Outlook Negative
NEWELL MOWING: Subchapter V Plan Confirmed by Judge
NINE POINT ENERGY: Plan Exclusivity Extended Thru October 12
NMN HOLDINGS III: S&P Alters Outlook to Negative, Affirms 'B' ICR
NXT ENERGY: Posts C$1.5 Million Net Income in Second Quarter
OFFCAMBER LLC: Seeks to Hire Levene Neale as Bankruptcy Counsel
OLCAN PROPERTIES: Seeks to Hire Marc R. Kivitz as Legal Counsel
ORIGINCLEAR INC: Sells $250K Worth of Securities
PLAQUEMINE BAYOU: Bayou Parke Sold; Liquidating Plan Filed
PSG MORTGAGE: Voluntary Chapter 11 Case Summary
PURDUE PHARMA: Judge Says Family Faces Huge Liability Risk
PURDUE PHARMA: Judge Urges Co. to Settle Differences in Chapter 11
PURDUE PHARMA: Lawyer Warns of Long, Costly Litigation
QUAD/GRAPHICS INC: S&P Alters Outlook to Positive, Affirms 'B' ICR
RESORTS WORLD: S&P Lowers LongTerm ICR to 'BB+', Outlook Stable
RESTAURANTE LA LIBERTAD: Taps Shafferman & Feldman as Legal Counsel
RVT INC: Ordered to Revise Disclosures by October 26
SALLY BEAUTY: S&P Alters Outlook to Positive, Affirms 'BB-' ICR
SEVEN HILLS PHARMACY: Hires P. Nagaraj & Associates as Accountant
SEVEN THREE DISTILLING: Seeks to Hire Lugenbuhl as Legal Counsel
SHOOTING SPORTS: Unsecureds Will Get 3% Under Liquidating Plan
STOP & GO: Plan of Reorganization Confirmed by Judge
SUNEX INT'L: Liquidating Trustee Taps KapilaMukamal as Accountant
TALEN ENERGY: Hires Restructuring Advisors for Debt Talks
TECT AEROSPACE: Wins Plan Exclusivity Until October 4
TIX CORP: Files Chapter 11 Bankruptcy Petition to Facilitate Sale
TIX CORPORATION: Case Summary & 20 Largest Unsecured Creditors
UCAST LLC: Unsecureds Out of Money Under Plan
WARDMAN HOTEL: Seeks to Hire Stretto as Administrative Advisor
WARDMAN HOTEL: Unsecureds to Get At Least 60% After Marriott Deal
WATTSTOCK LLC: Seeks Cash Collateral Access
WIRTA HOTELS: Seeks to Hire Foster Garvey as Legal Counsel
WIRTA HOTELS: Seeks to Hire Premier Capital as Financial Consultant
WOW BAR LLC: Files for Chapter 11 Bankruptcy
WOW BAR: Wins Cash Collateral Access
[*] Bankruptcy Filings Down in 1H 2021, Cornerstone Report Shows
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
ACRO BIOMEDICAL: Delays Filing of Second Quarter Form 10-Q
----------------------------------------------------------
Acro Biomedical Co., Ltd. filed a Form 12b-25 with the Securities
and Exchange Commission notifying the delay in the filing of its
Quarterly Report on Form 10-Q for the period ended June 30, 2021.
The Company stated the compilation, dissemination and review of the
information required to be presented in the Form 10-Q for the
quarter ended June 30, 2021 has imposed time constraints that have
rendered timely filing of the Form 10-Q impracticable without undue
hardship and expense to the registrant. The Company has no
full-time employees and requires additional time to provide
information necessary for the completion of the Form 10-Q. The
Company undertakes the responsibility to file such report no later
than five days after its original prescribed due date.
Based on preliminary information, for the three months ended June
30, 2021, the Company expects to report revenues of approximately
$500,000 and a loss of approximately of approximately $794,687, or
$(0.02) per share (basic and diluted). For the three months ended
June 30, 2020, the Company generated no revenue and incurred a loss
of $63,699, or $(0.00) per share.
Based on preliminary information, for the six months ended June 30,
2021, the Company expects to report revenue of $599,500, and a loss
of approximately $854,181, or $(0.02) per share (basic and
diluted). For the six months ended June 30, 2020, the Company
generated revenue of $687,964, all of which was generated in the
first quarter, and net income of $17,417, or $0.00 per share (basic
and diluted).
The loss for the three and six months ended June 30, 2021 reflected
stock-based compensation of approximately $804,650, which was paid
to consultants during the three months ended June 30, 2021 for
research and development and marketing services.
About Acro Biomedical
Acro Biomedical Co., Ltd. has been engaged in the business of
developing and marketing nutritional products that promote
wellness
and a healthy lifestyle. The Company's business to date has
involved the purchase of products from three suppliers in the
Republic of China. The Company sells product in bulk to companies
who may use its products as ingredients in their products or sell
the products they purchase from the Company to their own
customers.
Acro Biomedical reported a net loss of $117,453 for the year ended
Dec. 31, 2020, compared to a net loss of $371,604 for the year
ended Dec. 31, 2019.
Hackensack, New Jersey-based Prager Metis CPAs, LLC, the Company's
auditor since 2018, issued a "going concern" qualification in its
report dated April 1, 2021, citing that the Company had limited
cash as of Dec. 31, 2020, had limited gross profit and incurred a
loss from its operations for the year ended Dec. 31, 2020. These
circumstances, among others, raise substantial doubt about the
Company's ability to continue as a going concern.
ADHERA THERAPEUTICS: Delays Filing of Second Quarter Form 10-Q
--------------------------------------------------------------
Adhera Therapeutics, Inc. filed a Form 12b-25 with the Securities
and Exchange Commission notifying the delay in the filing of its
Quarterly Report on Form 10-Q for the period ended June 30, 2021.
Adhera said, "The compilation, dissemination and review of the
information required to be presented in the Form 10-Q for the
relevant period, including, without limitation, the financial
statements to be included therein, has imposed time constraints
that have rendered timely filing of the Form 10-Q impracticable
without undue hardship and expense to the Registrant. The
Registrant undertakes the responsibility to file, and anticipates
that it will file, the Form 10-Q no later than five days after its
original prescribed due date."
About Adhera
Headquartered in Durham, NC, Adhera Therapeutics, Inc. (formerly
known as Marina Biotech, Inc.) -- http://www.adherathera.com/-- is
a specialty pharmaceutical company leveraging technology to
commercialize unique therapies and improve patient outcomes. Adhera
is initially focused on commercializing its United States Food and
Drug Administration approved product for the treatment of
hypertension to lower blood pressure through DyrctAxessTM, a
patient-centric treatment approach. Adhera is dedicated to
identifying additional assets to expand its commercial presence.
Adhera reported a net loss applicable to common stockholders of
$5.31 million for the year ended Dec. 31, 2020, compared to a net
loss applicable to common stockholders of $13.48 million for the
year ended Dec. 31, 2019.
Los Angeles, California-based Baker Tilly US LLP, the Company's
auditor since 2015, issued a "going concern" qualification in its
report dated April 7, 2021, citing that the Company has suffered
recurring losses from operations and negative cash flows from
operations. This raises substantial doubt about the Company's
ability to continue as a going concern. In addition, with respect
to the ongoing and evolving coronavirus (COVID-19) outbreak, which
was designated as a pandemic by the World Health Organization on
March 11, 2020, the outbreak has caused substantial disruption in
international and U.S. economies and markets and if repercussions
of the outbreak are prolonged, could have a significant adverse
impact on the Company's business.
ADHERA THERAPEUTICS: Receives $210K Under Securities Purchase Deal
------------------------------------------------------------------
Adhera Therapeutics, Inc. entered into a securities purchase
agreement with an institutional investor on Aug. 12, 2021, pursuant
to which the Company issued to the Buyer its Original Issue
Discount Secured Convertible Promissory Note in the principal
amount of $220,500 and warrants to purchase 800,000 shares of the
common stock of the Company for which the Company received
consideration of $210,000. In addition, pursuant to the Purchase
Agreement, the Company entered into a Registration Rights Agreement
with the Buyer and issued the Buyer 100,000 shares as a commitment
fee.
The principal amount of the Note and all interest accrued thereon
is payable one year from the issuance date. The Note provides for
guaranteed interest at the rate of 10% per annum, payable at
maturity, and is convertible into common stock of the Company at a
price of $0.075 per share, subject to anti-dilution adjustments in
the event of certain corporate events as set forth in the Note,
provided that if the average closing price of the Company's common
stock during any three consecutive trading days is below $0.08, the
conversion price shall be reduced to 65% of the lowest trading
price during the 20 consecutive trading days immediately preceding
the conversion date.
In addition to customary anti-dilution adjustments the Note
provides, subject to certain limited exceptions, that if the
Company issues any common stock or common stock equivalents, as
defined in the Note, at a per share price lower than the conversion
price then in effect, the conversion price will be reduced to the
per share price at which such shares or common share equivalents
were sold.
The Note provides for various events of default similar to those
provided for in similar transactions, including the failure to
timely pay amounts due thereunder.
The Warrants are initially exercisable for a period of three years
at a price of $0.095 per share, subject to customary anti-dilution
adjustments upon the occurrence of certain corporate events as set
forth in the Warrant. The shares issuable upon conversion of the
Note and exercise of the Warrants are to be registered under the
Securities Act of 1933, for resale by the Buyer as provided in the
Registration Rights Agreement. If at any time after the six-month
anniversary of the date of the Purchase Agreement, there is no
effective registration statement covering the resale of the shares
issuable upon exercise of the Warrants at prevailing market prices
by the Buyer, then the Warrant may be exercised by means of a
"cashless exercise" in which event the Buyer would be entitled to
receive a number of shares determined in accordance with a
customary formula as set forth in the Warrant.
The Registration Rights Agreement requires the Company to file with
the Securities and Exchange Commission a registration statement
with respect to all shares which may be acquired upon conversion of
the Note and exercise of the Warrant and the commitment shares and
to cause the Registration Statement to be declared effective no
later than 60 days after the date of the issuance of the Note.
For services rendered in connection with the Securities Purchase
Agreement the Company paid Carter, Terry & Company a cash fee of
$20,000. In addition, the Company reimbursed the Buyer $7,500 for
legal expenses incurred in connection with the transaction.
About Adhera
Headquartered in Durham, NC, Adhera Therapeutics, Inc. (formerly
known as Marina Biotech, Inc.) -- http://www.adherathera.com/-- is
a specialty pharmaceutical company leveraging technology to
commercialize unique therapies and improve patient outcomes. Adhera
is initially focused on commercializing its United States Food and
Drug Administration approved product for the treatment of
hypertension to lower blood pressure through DyrctAxessTM, a
patient-centric treatment approach. Adhera is dedicated to
identifying additional assets to expand its commercial presence.
Adhera reported a net loss applicable to common stockholders of
$5.31 million for the year ended Dec. 31, 2020, compared to a net
loss applicable to common stockholders of $13.48 million for the
year ended Dec. 31, 2019.
Los Angeles, California-based Baker Tilly US LLP, the Company's
auditor since 2015, issued a "going concern" qualification in its
report dated April 7, 2021, citing that the Company has suffered
recurring losses from operations and negative cash flows from
operations. This raises substantial doubt about the Company's
ability to continue as a going concern. In addition, with respect
to the ongoing and evolving coronavirus (COVID-19) outbreak, which
was designated as a pandemic by the World Health Organization on
March 11, 2020, the outbreak has caused substantial disruption in
international and U.S. economies and markets and if repercussions
of the outbreak are prolonged, could have a significant adverse
impact on the Company's business.
AGILON ENERGY: Hires Porter Hedges as Conflict Counsel
------------------------------------------------------
Agilon Energy Holdings II LLC, and its affiliates seek approval
from the U.S. Bankruptcy Court for the Southern District of Texas
to employ Porter Hedges, LLP as conflict counsel.
The firm will represent the Debtors in matters related to Ryan
Castleman or any entity owned directly or indirectly by Mr.
Castleman, including (i) Victoria Midstream, which owns gas
infrastructure assets that support the Debtors' power plants, (ii)
Victoria Willow LLC, which is a ground lessor to Victoria City
Power LLC, and (iii) Victoria Bloomington, LLC, which sub-leases
real estate to Victoria Port Power LLC.
The firm's hourly rates are as follows:
Partners $525 to $925 per hour
Associates $420 to $590 per hour
Paraprofessionals $235 to $355 per hour
The firm will also be reimbursed for out-of-pocket expenses
incurred.
Joshua Wolfshohl, Esq., a partner at Porter Hedges, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Joshua W. Wolfshohl, Esq.
Porter Hedges LLP
1000 Main Street, 36th Floor
Houston, TX 77002-6341
Tel: (713) 226-6000
About Agilon Energy Holdings II LLC
Texas-based power producer Agilon Energy Holdings II, LLC and its
affiliates, Victoria Port Power LLC and Victoria City Power LLC,
sought Chapter 11 protection (Bankr. S.D. Texas Lead Case No. 21
32156) on June 27, 2021. At the time of the filing, Agilon had
between $100 million and $500 million in both assets and
liabilities.
Judge Marvin Isgur oversees the cases.
The Debtors tapped Locke Lord, LLP as legal counsel, Grant
Thornton, LLP as financial advisor and Hugh Smith Advisors, LLC as
restructuring advisor. Hugh Smith of Hugh Smith Advisors serves as
the Debtors' chief restructuring officer. Stretto is the claims and
noticing agent.
The U.S. Trustee for Region 7 appointed an official committee of
unsecured creditors in the Debtors' Chapter 11 cases on July 30,
2021. Pachulski Stang Ziehl & Jones, LLP and Conway MacKenzie, LLC
serve as the committee's legal counsel and financial advisor,
respectively.
AINOS INC: Incurs $750K Net Loss in Second Quarter
--------------------------------------------------
Ainos, Inc. filed with the Securities and Exchange Commission its
Quarterly Report on Form 10-Q disclosing a net loss of $749,774 on
$202,992 of revenues for the three months ended June 30, 2021,
compared to a net loss of $301,966 on $484 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 $1.28 million on $205,113 of revenues compared to a net
loss of $678,845 on $15,684 of revenues for the six months ended
June 30, 2020.
As of June 30, 2021, the Company had $20.62 million in total
assets, $2.42 million in total liabilities, and $18.21 million in
total stockholders' equity.
As of June 30, 2021, the Company had available cash of $606,638
whereas it had a cash position of $172,802 for the same period in
2020 and $22,245 as of Dec. 31, 2020. The Company had a working
capital deficit of $1,506,762 at the end of June 2021, and a
working capital deficit of $689,094 for the same period in 2020, an
increase of 119%. As of Dec. 31, 2020, working capital was a
deficit of $1,022,155. The average monthly burn rate in 2021 was
approximately $100,000 partially attributed to additional one-time
expenses related to the Securities Purchase Agreement transaction
and the ensuing business development activity. Going forward, the
Company expects that the burn rate will continue to rise in
correlation to increased operational activity.
The Company continues to develop and establish new revenue streams
to become, and maintain, the position of a profitable going
concern. The Company's major areas of focus are (1) to continue to
leverage the Company's core technology, the development and
application of low-dose non-injectable interferon, (2) to
commercialize its metabolic restoration therapy for the treatment
of diabetes and other metabolic diseases, and (3) as a result of
the Securities Purchase Agreement transaction, leverage
newly-integrated staffing and capital resources to quickly develop,
license and commercialize a scheduled pipeline of medical
diagnostic products, beginning with the sales of Covid-19 Test Kits
in Taiwan that recently commenced.
The Company gives no assurance that it will be successful in its
efforts to make the Company profitable. If those efforts are not
successful, the Company will evaluate its need to obtain working
capital financial assistance from Ainos KY, of up to $3 million, in
the form of a loan or additional shares in 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/1014763/000165495421009289/amar_10q.htm
About Ainos
Ainos, Inc., formerly known as Amarillo Biosciences, Inc., is a
diversified healthcare company engaged in the research and
development and sales and marketing of pharmaceutical and biotech
products. The Company is a Texas corporation incorporated in
1984.
Amarillo reported a net loss of $1.45 million for the year ended
Dec. 31, 2020, compared to a net loss of $1.58 million for the year
ended Dec. 31, 2019.
Houston, Texas-based PWR CPA, LLP, the Company's auditor since
2020, issued a "going concern" qualification in its report dated
March 30, 2021, citing that the Company's absence of significant
revenues, recurring losses from operations, and its need for
additional financing in order to fund its projected loss in 2021
raise substantial doubt about its ability to continue as a going
concern.
AIWA CORP: Wins Cash Collateral Access Thru Sept 3
--------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division, authorized Aiwa Corporation to use cash
collateral on an interim basis in accordance with the budget, with
a 10% variance, through September 3, 2021.
The Debtor is directed to provide to secured creditor Aiwa
Holdings, LLC, on or before September 2, a line-by-line variance
report comparing the budgeted cash flows for the Interim Period to
actual cash flows since the Petition Date.
These events constitute a "Termination Event," unless waived in
writing by the Secured Creditor:
(a) The Chapter 11 Case will be dismissed or converted to a
chapter 7 case, or the Debtor is removed from possession in the
Chapter 11 Case pursuant to 11 U.S.C. section 1185; or
(b) The Debtor fails to comply with any other provision of the
Interim Order.
As adequate protection for the interests of the Secured Creditor,
Aiwa Holdings will be granted security interests and liens in the
property of the Debtor and its bankruptcy estate to the extent it
held such security interests and liens prepetition. The
Postpetition Liens will be regarded as postpetition security
interests and liens.
As further adequate protection for the interests of the Secured
Creditor, the Secured Creditor will be granted valid, binding,
continuing, enforceable, fully perfected, first-priority
replacement liens on, and security interests in, all property
acquired by the Debtor or its bankruptcy estate after the Filing
Date, with the sole exception of avoidance actions under Chapter 5
of the Bankruptcy Code or the proceeds thereof. The Replacement
Liens will be regarded as postpetition security interests and
liens.
The Postpetition Liens and the Replacement Liens will be effective
and fully perfected as of the date of entry of the Interim Order,
in each case without the necessity of the execution by the Debtor,
or recordation or other filing by the Secured Creditor, of security
agreements, control agreements, pledge agreements, financing
statements, mortgages or other similar documents, or the possession
or control by the Secured Creditor of any property.
The Debtor is directed to provide continued maintenance of and
appropriate insurance on the Debtor's assets in the amounts
consistent with the Debtor's prepetition practices.
A copy of the order and the Debtor's budget is available at
https://bit.ly/3sJDIFL from PacerMonitor.com.
The Debtor projects $3,800 in total receipts and $11,219 in total
disbursements.
About Aiwa Corporation
Chicago-based Aiwa Corporation f/k/a Hale Devices, Inc. --
https://aiwa.co/ -- is a consumer electronics brand that
manufactures audio equipment.
Aiwa Corporation sought Chapter 11 protection (Bankr. N.D. Ill.
Case No. 21-07762) on June 22, 2021. In the petition signed by CEO
Joseph J. Born, Aiwa estimated total assets of $1,764,887 and total
liabilities of $5,818,251. The case is handled by the Honorable
Deborah L. Thorne. Jeremy C. Kleinman, of FrankGecker LLP, is the
Debtor's counsel. William Avellone was appointed as the Debtor's
Subchapter V Trustee.
ALEX AND ANI: Unsecured Creditors to Recover 0% in Joint Plan
-------------------------------------------------------------
Alex and Ani, LLC and its Debtor Affiliates submitted a Disclosure
Statement for the First Amended Joint Plan of Reorganization dated
August 23, 2021.
The Plan contemplates a restructuring of the Debtors through either
(a) the implementation of a stand-alone restructuring (the
"Stand-Alone Restructuring") or (b) an orderly sale of all or
substantially all of the Debtors' assets via a Sale Transaction.
Class 2 consists of Other Priority Claims with $466,249 amount of
claims and 100% estimated recovery. Each holder of an Allowed Other
Priority Claim will receive payment in full in Cash of such
holder's Allowed Other Priority Claim or such other treatment in a
manner consistent with section 1129(a)(9) of the Bankruptcy Code.
Class 3 consists of Secured Credit Facility Secured Claims with
$127,812,649 amount of claims and with 44.67 ‒ 52.26% estimated
recovery. Each holder of an Allowed Secured Credit Facility Secured
Claim will receive its Pro Rata share of: (i) if the Stand-Alone
Restructuring is consummated, 100 percent of the New Common Equity;
or (ii)if the Sale Transaction is consummated, the Sale Proceeds
Recovery.
Class 4 consists of Go-Forward Vendor Claims with $1,274,385 amount
of claims and with 19.62% estimated recovery. Each holder of an
Allowed Go-Forward Vendor Claim shall receive its Pro Rata share of
the Go-Forward Vendor Claim Recovery.
Class 5 consists of General Unsecured Claims with $24,974,714 ‒
176,150,476 amount of claims and with 0 – 0% estimated recovery.
Each holder of an Allowed General Unsecured Claim shall receive a
complete waiver and release of any and all claims, Causes of
Action, and other rights against the holders of Allowed Class 5
Claims based on claims pursuant to chapter 5 of the Bankruptcy Code
or under similar or related state or federal statutes and common
law including fraudulent transfer laws from the Debtors, the
Reorganized Debtors, and their Estates, in each case on behalf of
themselves and their respective successors, assigns, and
representatives, and any and all other entities who may purport to
assert any Cause of Action, directly or derivatively, by, through,
for, or because of the foregoing entities, subject to and in
accordance with Article VIII of the Plan (such treatment, the
"General Unsecured Claims Treatment").
If the Stand-Alone Restructuring occurs, the Plan and distributions
will be funded by the following sources of Cash and consideration:
(a) Cash on hand, (b) the issuance and distribution of New Common
Equity, (c) proceeds from the Exit Facility, and (d) proceeds from
all Causes of Action not settled, released, discharged, enjoined,
or exculpated under the Plan or otherwise on or prior to the
Effective Date.
If the Sale Transaction occurs, the Plan and distributions
thereunder will be funded by the following sources of Cash and
consideration: (a) Cash on hand; and (b) the Sale Proceeds.
September 7, 2021 at 10:00 a.m. is the date at which the Debtors
will conduct an Auction. September 14, 2021 at 4:00 p.m. is the
deadline by which objections to the Sale Transaction must be filed.
September 22, 2021 at 1:00 p.m. is the hearing at which the Court
will consider approval of the Sale Transaction.
The Debtors recommend that all holders of Claims entitled to vote
accept the Plan by returning their ballots no later than September
14, 2021, at 4:00 p.m.
The Bankruptcy Court has scheduled the Confirmation Hearing for
September 22, 2021, at 1:00 p.m. Objections to Confirmation of the
Plan must be filed and served no later than September 14, 2021, at
4:00 p.m.
A full-text copy of the Disclosure Statement dated Aug. 23, 2021,
is available at https://bit.ly/2XLxCZX from Kurtzman Carson
Consultants LLC, the claims agent.
Proposed Co-Counsel to the Debtors:
Joshua A. Sussberg, P.C.
Allyson B. Smith
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
601 Lexington Avenue
New York, New York 10022
Telephone: (212) 446-4800
Facsimile: (212) 446-4900
- and -
Alexandra Schwarzman
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
300 North LaSalle Street
Chicago, Illinois 60654
Telephone: (312) 862-2000
Facsimile: (312) 862-2200
- and -
Domenic E. Pacitti
Michael W. Yurkewicz
KLEHR HARRISON HARVEY BRANZBURG LLP
919 North Market Street, Suite 1000
Wilmington, Delaware 19801
Telephone: (302) 426-1189
Facsimile: (302) 426-9193
-and-
Facsimile: (302) 426-9193
KLEHR HARRISON HARVEY BRANZBURG LLP
1835 Market Street, Suite 1400
Philadelphia, Pennsylvania 19103
Telephone: (215) 569-3007
Facsimile: (215) 568-6603
About Alex and Ani LLC
Founded in 2004 by Carolyn Rafaelian, Alex and Ani has become a
premier jewelry brand, quickly gaining popularity because of the
novel and customizable nature of its signature expandable wire
bracelet. Alex and Ani has been headquartered in East Greenwich,
Rhode Island since 2014. Since opening its first retail store in
Newport, Rhode Island in 2009, Alex and Ani has expanded to over
100 retail store locations across the United States, Canada, and
Puerto Rico. On the Web: HTTP://www.alexandani.com/
Alex and Ani LLC and its affiliates sought Chapter 11 protection
(Bankr. D. Del. Lead Case No. 21-10918) on June 9, 2021. In its
petition, Alex and Ani listed assets and liabilities of $100
million to $500 million each.
The Debtors tapped Kirkland & Ellis LLP as general bankruptcy
counsel; Klehr Harrison Harvey Branzburg LLP as local bankruptcy
counsel; and Portage Point Partners, LLC, as financial advisors and
investment bankers. Kurtzman Carson Consultants LLC is the notice
and claims agent.
ARCLINE FM: S&P Affirms 'B' ICR on Acquisition Plan
---------------------------------------------------
S&P Global Ratings affirmed its 'B' issuer credit rating on Arcline
FM Holdings LLC (which does business as Fairbanks Morse Defense, or
FMD). The outlook is stable.
At the same time, S&P affirmed its 'B' and 'CCC+' issue-level
ratings on the company's upsized first-lien and second-lien term
loans, respectively. The '3' and '6' recovery ratings,
respectively, are unchanged.
The stable outlook reflects S&P's expectation that debt to EBITDA
will be 7x-7.5x in 2021, based on a full year of earnings from the
acquisition, before dropping to 6.5x-7x in 2022.
Fairbanks Morse has agreed to acquire a provider of engineering
solutions with a combination of incremental debt and new cash and
rollover equity from the sponsor.
The affirmation reflects S&P's expectation that debt leverage will
not change significantly because of the acquisition. The
transaction is being funded by a combination of new debt and
sponsor equity, resulting in a mostly neutral impact to leverage.
While 2021 results will likely be skewed due to multiple
transactions and a partial year of earnings from the acquisition,
our debt to EBITDA forecast for 2022 and beyond remains essentially
unchanged.
The acquisition should be a good strategic fit. The target company
provides fluid power engineering solutions to both defense and
industrial customers, with a focus on specialty components for the
nuclear fleet of the U.S. Navy. S&P said, "Combined with what FMD
already supplies, the combined company should have a presence on
all ship classes within the Navy, improving upon what we already
viewed as a strength. We also believe that FMD's existing
geographic footprint with service centers near major shipyards
could provide a growth opportunity for the target's aftermarket
service business." The combined company should maintain about the
same original equipment manufacturing and aftermarket revenue
split, and EBITDA margins should be mostly unchanged.
FMD continues to perform largely as expected. Given the long lead
times and high revenue visibility, S&P doesn't expect revenues to
differ significantly from our forecast, and nothing in the first
two quarters of 2021 suggests otherwise. FMD may be able to improve
EBITDA margins beyond our current expectations as the company
pursues internal initiatives to drive revenue growth without adding
costs. Similarly, as the company adds more services work, it should
be able to grow revenue without significant marginal cost
increases, resulting in improved margins.
The stable outlook on Fairbanks Morse reflects our expectation that
the company's pro forma debt leverage will be 7x-7.5x in 2021 based
on a full year of EBITDA from the acquisition, and will decrease to
6.5x-7x in 2022. S&P said, "While we expect credit ratios to
improve as earnings increase due to revenue growth, we believe the
financial sponsor will continue to pursue acquisitions and possibly
dividends if leverage declines significantly."
S&P could lower its rating on Fairbanks Morse if debt to EBITDA is
above 7x for a sustained period and free operating cash flow is
approaching zero. This could be caused by:
-- Revenue declines from a decrease in government spending on
FMD's platforms, resulting in less original equipment and
aftermarket business;
-- EBITDA margins decline because of an increase in overhead costs
or difficulty maintaining a workforce large enough to keep up with
business; or
-- The sponsor pursues an aggressive financial policy in the form
of large, debt-financed acquisitions or dividends.
Although unlikely due to current sponsor ownership, S&P could raise
the rating on Fairbanks Morse if debt to EBITDA dropped below 5x
and the sponsor committed to maintaining it below that level. This
could occur if:
-- The company continues to grow earnings organically or through
acquisitions without raising new debt; and
-- The sponsor shows a record of conservative financial policy and
uses excess cash for debt repayment.
AUTO PERFECTION: Unsecureds Will Recover 20% in 5 Years
-------------------------------------------------------
Debtor Auto Perfection Associates, Inc. submitted a Small Business
Plan of Reorganization for restructuring the debt [or liquidating
the assets] of the debtor dated August 23, 2021.
In April 2021 as the Pandemic stretched into the 2nd year, the
business was struck by a wage and hour claim by a prior employee.
While disputed, it was determined that this was the appropriate
time for filing of the Chapter 11 petition.
No assets of the Debtor have been sold. Business has slowly
improved since the filing.
The Plan divides the creditors into classes, Secured, Priority, and
General Unsecured. The Plan is devised with the intent to pay to
creditors in periodic payments over 5 years, a sum in excess of the
liquidation threshold, to wit: that which they would have received
in a hypothetical Chapter 7 Liquidation.
There is one secured claim, a docketed judgment to the State of New
Jersey, Division of Taxation in the amount of $1,807. It will be
paid in full upon the effective date of the Plan.
There are priority claims to the Internal Revenue Service, State of
New Jersey Division of Taxation, NJ Dept of Labor and Workforce and
the New York State Workers Compensation Board totaling
approximately $22,300. This class will be paid in full in periodic
payments commencing upon the effective date of the plan.
There are approximately 5 creditors with claims totaling
approximately $110,000, plus a disputed claim. This creditor has
filed two claims for $108,000 each. Each creditor to be paid a
pro-rata share of available funds in periodic payments estimated at
20% of the claim unless de minimus -- (defined as resulting in
payment of less than $25) will not be paid, which is in excess of
the liquidation threshold after payment of Administrative Expenses
and priority claims. Payments to this class will commence after
completion of periodic payments to Priority Claims.
The are three executory contracts, which include the month to month
lease on the business property in Hackettstown, NJ, a merchant
account and and insurance contract. These executor contracts be
assumed and continued.
No Payment Anticipated other than normal salary for equity interest
holder Daniel Maya.
The Debtor is now showing a modest net income each month. That will
be accumulated pending confirmation to be available for payments
due upon the effective date of the plan. The net profit will be
sufficient to thereafter fund the periodic payments as proposed.
A full-text copy of the Plan of Reorganization dated August 23,
2021, is available at https://bit.ly/2UJNNWz from PacerMonitor.com
at no charge.
The Debtor is represented by:
ABELSON LAW OFFICES
Steven J. Abelson, Esq.
80 West Main Street
PO Box 7005
Freehold, NJ 07728
Tel: (732) 462-4773
About Auto Perfection
Auto Perfection Associates Inc. is the successor corporation of
Auto Perfection Group Inc. It is a small business located in
Hackettstown, New Jersey which performs auto detailing for small
and large inventory commercial businesses, primarily car dealers.
Auto Perfection filed a Chapter 11 bankruptcy petition (Bankr.
D.N.J. Case No. 21-14296) on May 24, 2021. The Debtor estimated
less than $50,000 in assets and debt of less than $500,000. Steven
J Abelson is the Debtor's counsel.
AUTO-SWAGE PRODUCTS: Taps Levey Miller as Real Estate Broker
------------------------------------------------------------
Auto-Swage Products, Inc. seeks approval from the U.S. Bankruptcy
Court for the District of Connecticut to employ Levey Miller
Maretz, LLC to market for sale its real property at 726 River Road,
Shelton, Conn.
The firm will be paid a commission of 5 percent of the sales price
and reimbursed for out-of-pocket expenses incurred.
Steven Miller, a partner at Levey Miller Maretz, disclosed in a
court filing that his firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Steven Miller
Levey Miller Maretz, LLC
1768 Litchfield Turnpike
Woodbridge, CT 06525
Tel: 475-209-5950 / 203-389-5377
Email: Steve@LMMRE.com
info@LMMRE.com
About Auto-Swage Products Inc.
Shelton, Conn.-based Auto-Swage Products, Inc. sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. D. Conn. Case No.
21-50502) on Aug. 7, 2021, listing $626,883 in assets and
$1,239,385 in liabilities. Auto-Swage Products President Keith D.
Brenton signed the petition. Judge Julie A. Manning oversees the
case. Green & Sklarz, LLC is the Debtor's legal counsel.
BLUE DOLPHIN: Incurs $4.1 Million Net Loss in Second Quarter
------------------------------------------------------------
Blue Dolphin Energy Company filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $4.10 million on $69.44 million of total revenue from operations
for the three months ended June 30, 2021, compared to a net loss of
$4.24 million on $18.47 million of total revenue from operations
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 $128.85 million of total revenue from
operations compared to a net loss of $7.58 million on $80.47
million of total revenue from operations for the same period a year
ago.
As of June 30, 2021, the Company had $65.09 million in total
assets, $83.14 million in total liabilities, and $18.06 million in
total stockholders' deficit.
Blue Dolphin said, "Management has determined that certain factors
raise substantial doubt about our ability to continue as a going
concern. These factors include inadequate liquidity to sustain
operations due to defaults under our secured loan agreements,
margin deterioration and volatility, and historic net losses and
working capital deficits. Our consolidated financial statements
assume we will continue as a going concern and do not include any
adjustments that might result from the outcome of this uncertainty.
Our ability to continue as a going concern depends on sustained
positive operating margins and having working capital for, amongst
other requirements, purchasing crude oil and condensate and making
payments on long-term debt. Without positive operating margins and
working capital, our business will be jeopardized, and we may not
be able to continue. If we are unable to make required debt
payments, we would likely have to consider other options, such as
selling assets, raising additional debt or equity capital, cutting
costs or otherwise reducing our cash requirements, or negotiating
with our creditors to restructure our applicable obligations,
including a potential bankruptcy filing."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/793306/000165495421009146/bdco_10q.htm
About Blue Dolphin
Headquartered in Houston, Texas, Blue Dolphin Energy Company --
http://www.blue-dolphin-energy.com-- is an independent downstream
energy company operating in the Gulf Coast region of the United
States. The Company's subsidiaries operate a light sweet-crude,
15,000-bpd crude distillation tower with approximately 1.2 million
bbls of petroleum storage tank capacity in Nixon, Texas. Blue
Dolphin was formed in 1986 as a Delaware corporation and is traded
on the OTCQX under the ticker symbol "BDCO".
Blue Dolphin reported a net loss of $14.46 million for the 12
months ended Dec. 31, 2020, compared to net income of $7.36
million
for the 12 months ended Dec. 31, 2019. As of March 31, 2021, the
Company had $65.55 million in total assets, $79.51 million in
total
liabilities, and a total stockholders' deficit of $13.96 million.
Sterling Heights, Michigan-based UHY LLP, the Company's auditor
since 2002, issued a "going concern" qualification in its report
dated March 31, 2021, citing that the Company is in default under
secured and related party loan agreements and has a net working
capital deficiency. These conditions raise substantial doubt about
the Company's ability to continue as a going concern.
BRAZIL MINERALS: Incurs $1.1 Million Net Loss in Second Quarter
---------------------------------------------------------------
Brazil Minerals, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $1.09 million on $1,645 of revenue for the three months ended
June 30, 2021, compared to a net loss of $415,330 on $8,936 of
revenue for the three months ended June 30, 2020.
For the six months ended June 30, 2021, the Company reported a net
loss of $2.28 million on $6,104 of revenue compared to a net loss
of $1.01 million on $11,566 of revenue for the six months ended
June 30, 2020.
As of June 30, 2021, the Company had $1.77 million in total assets,
$1.89 million in total liabilities, and a total stockholders'
deficit of $119,656.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1540684/000149315221020859/form10-q.htm
About Brazil Minerals
Brazil Minerals, Inc., together with its subsidiaries, is a mineral
exploration company currently primarily focused on the development
of its two 100%-owned hard-rock lithium projects. Its initial goal
is to be able to enter commercial production of spodumene
concentrate, a lithium bearing commodity. Visit
http://www.brazil-minerals.comfor more information.
Brazil Minerals reported a net loss of $1.55 million for the year
ended Dec. 31, 2020, a net loss of $2.08 million for the year ended
Dec. 31, 2019, and a net loss of $1.85 million for the year ended
Dec. 31, 2018.
Lakewood, Colorado-based BF Borgers CPA PC, the Company's auditor
since 2015, issued a "going concern" qualification in its report
dated March 31, 2021, citing that the Company has suffered
recurring losses from operations and has a net capital deficiency
that raise substantial doubt about its ability to continue as a
going concern.
C&C CONSTRUCTION: Taps Golan Christie Taglia as Legal Counsel
-------------------------------------------------------------
C&C Construction and Management, LLC seeks approval from the U.S.
Bankruptcy Court for the Northern District of Illinois to hire
Golan Christie Taglia, LLP to serve as legal counsel in its Chapter
11 case.
The firm's services include legal advice with respect to the powers
and duties of the Debtor under the Bankruptcy Code; the preparation
of legal documents; and all necessary legal work to obtain court
approval of the Debtor's Chapter 11 reorganization plan.
The Debtor has agreed to pay the firm's attorneys at their normal
hourly rates.
Robert Benjamin, Esq., at Golan Christie Taglia, disclosed in court
filings that his firm is a "disinterested person" as that term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Robert R. Benjamin, Esq.
Beverly A. Berneman, Esq.
Toni J. Falligant, Esq.
Golan Christie Taglia, LLP
70 W. Madison, Ste. 1500
Chicago, IL 60602
Telephone: (312) 263-2300
Facsimile: (312) 263-0939
Email: rrbenjamin@gct.law
baberneman@gct.law
tjfalligant@gct.law
About C&C Construction and Management
C&C Construction and Management, LLC, a company in Plainfield,
Ill., filed its voluntary petition for Chapter 11 protection
(Bankr. N.D. Ill. Case No. 21-09630) on Aug. 17, 2021, listing up
to $500,000 in assets and up to $10 million in liabilities. Judge
Lashonda A. Hunt oversees the case. Robert R Benjamin, Esq., at
Golan Christie Taglia, LLP, represents the Debtor as legal counsel.
CBAK ENERGY: Posts $2.7 Million Net Income in Second Quarter
------------------------------------------------------------
CBAK Energy Technology, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing net income
of $2.72 million on $5.89 million of net revenues for the three
months ended June 30, 2021, compared to a net loss of $1.20 million
on $4.62 million 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 $32.33 million on $15.31 million of net revenues compared
to a net loss of $3.55 million on $11.53 million of net revenues
for the same period a year ago.
As of June 30, 2021, the Company had $192.17 million in total
assets, $90.34 million in total liabilities, and $101.84 million in
total equity.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1117171/000121390021043981/f10q0621_cbakenergy.htm
About CBAK Energy
Liaoning Province, People's Republic of China-based CBAK Energy --
www.cbak.com.cn -- is a manufacturer of new energy high power
lithium batteries that are mainly used in light electric vehicles,
electric vehicles, electric tools, energy storage including but not
limited to uninterruptible power supply (UPS) application, and
other high-power applications. Its primary product offering
consists of new energy high power lithium batteries, but it is also
seeking to expand into the production and sale of light electric
vehicles.
CBAK Energy reported a net loss of $7.85 million for the year ended
Dec. 31, 2020, compared to a net loss of $10.85 million for the
year ended Dec. 31, 2019. As of March 31, 2021, the Company had
$203.96 million in total assets, $106.08 million in total
liabilities, and $97.88 million in total equity.
Hong Kong, China-based Centurion ZD CPA & Co., the Company's
auditor since 2016, issued a "going concern" qualification in its
report dated April 13, 2021, citing that the Company has a working
capital deficiency, accumulated deficit from recurring net losses
and significant short-term debt obligations maturing in less than
one year as of Dec. 31, 2020. All these factors raise substantial
doubt about its ability to continue as a going concern.
CHESAPEAKE ENERGY: $6.3 Mil. Settlement, $2.9 Mil. Atty Fees Okayed
-------------------------------------------------------------------
Law360 reports that a Texas federal judge has given final approval
to Chesapeake Energy Corp.'s $6.25 million settlement of
Pennsylvania class actions over the payment of oil and gas
royalties, as well as nearly $2.9 million in fees and expenses for
the class counsel.
In her Monday, August 23, 2021, decision, U.S. District Judge Lee
Rosenthal rejected challenges to the final certification of the
classes and found that the class's attorneys had earned their fees
for the nearly eight years they have been working on the cases.
Oklahoma City-based Chesapeake Energy — one of the largest oil
and gas exploration firms in the country.
About Chesapeake Energy Corp.
Headquartered in Oklahoma City, Chesapeake Energy Corporation's
(NASDAQ: CHK) operations are focused on discovering and responsibly
developing its large and geographically diverse resource base of
unconventional oil and natural gas assets onshore in the United
States.
Chesapeake Energy and its affiliates sought Chapter 11 protection
(Bankr. S.D. Tex. Lead Case No. 20-33233) on June 28, 2020, after
reaching terms of a Chapter 11 plan of reorganization to eliminate
approximately $7 billion of debt.
The Debtors tapped Kirkland & Ellis LLP as legal counsel, Jackson
Walker LLP as co-counsel and conflicts counsel, Alvarez & Marsal as
restructuring advisor, Rothschild & Co and Intrepid Financial
Partners as financial advisors, and Reevemark as communications
advisor. Epiq Global is the claims agent, maintaining the page
http://www.chk.com/restructuring-information
Wachtell, Lipton, Rosen & Katz serves as legal counsel to
Chesapeake Energy's Board of Directors.
MUFG Union Bank, N.A., the DIP facility agent and exit facilities
agent, has tapped Sidley Austin LLP as legal counsel, RPA Advisors
LLC as financial advisor, and Houlihan Lokey Capital Inc. as
investment banker.
Davis Polk & Wardell LLP and Vinson & Elkins L.L.P. serve as legal
counsel to an ad hoc group of first lien last out term loan lenders
while Perella Weinberg Partners and Tudor, Pickering, Holt & Co.
serve as the group's investment bankers.
Franklin Advisers, Inc., has tapped Akin Gump Strauss Hauer & Feld
LLP as legal counsel, FTI Consulting, Inc. as financial advisor,
and Moelis & Company LLC as investment banker.
On July 9, 2020, the Office of the U.S. Trustee appointed a
committee to represent unsecured creditors in Debtors' Chapter 11
cases. The unsecured creditors' committee has tapped Brown Rudnick,
LLP and Norton Rose Fulbright US, LLP as its legal counsel, and
AlixPartners, LLP as its financial advisor.
On July 24, 2020, the bankruptcy watchdog appointed a committee of
royalty owners. The royalty owners' committee is represented by
Forshey & Prostok, LLP.
CIRTRAN CORP: Incurs $250K Net Loss in Second Quarter
-----------------------------------------------------
CirTran Corporation filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $249,985 on $700,656 of net sales for the three months ended
June 30, 2021, compared to a net loss of $228,370 on $528,232 of
net sales for the three months ended June 30, 2020.
For the six months ended June 30, 2021, the Company reported a net
loss of $577,540 on $1.32 million of net sales compared to a net
loss of $543,742 on $530,314 of net sales for the six months ended
June 30, 2020.
As of June 30, 2021, the Company had $1.52 million in total assets,
$42.78 million in total liabilities, and a total stockholders'
deficit of $41.27 million.
The Company has had a history of losses from operations, as its
expenses have been greater than its revenue. The Company's
accumulated deficit was $78.5 million and $77.9 million at June 30,
2021, and Dec. 31, 2020, respectively. As of June 30, 2021, and
Dec. 31, 2020, the Company had current assets of $1,160,811 and
$942,442, respectively, and current liabilities of $38.8 million
and $38.1 million, respectively, creating working capital deficits
of approximately $37.6 million and $37.1 million, respectively, as
of June 30, 2021, and Dec. 31, 2020.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/813716/000149315221020711/form10-q.htm
About Cirtran Corp
West Valley City, Utah-based CirTran Corporation is an established
global company with a diversified expertise in manufacturing,
marketing, distribution and technology in a wide variety of
consumer products, including tobacco products, medical devices and
beverages.
Spokane, Washington-based Fruci & Associates II, PLLC, the
Company's auditor since 2020, issued a "going concern"
qualification in its report dated May 14, 2021, citing that the
Company has an accumulated deficit, net losses, and working capital
deficiencies. These factors raise substantial doubt about the
Company's ability to continue as a going concern.
CUENTAS INC: Delays Filing of Form 10-Q for Period Ended June 30
----------------------------------------------------------------
Cuentas, Inc. filed with the Securities and Exchange Commission a
Form 121-25 notifying the delay in the filing of its Quarterly
Report on Form 10-Q for the period ended June 30, 2021.
Cuentas has determined that it is unable, without unreasonable
effort or expense, to file its Quarterly Report on Form 10-Q as the
review process of the financial statement could not be completed by
the prescribed filing date. The Company anticipates that it will
file the Quarterly Report no later than the fifth calendar day
following the prescribed filing date.
The Company stated that net loss increased from approximately
$1,236,000 in 2020 to $1,926,000 in 2021. Such increase was
attributable to an increase in compensation cost, software
development and maintenance and the monthly payment to Incomm.
About Cuentas
Headquartered in Miami, Florida, Cuentas, Inc. --
http://www.cuentas.com-- focuses on the business of using
proprietary technology to provide e-banking and e-commerce services
delivering mobile banking, online banking, prepaid debit and
digital content services to the unbanked, underbanked and
underserved communities. The Company's exclusivity with CIMA's
proprietary software platform enables Cuentas to offer
comprehensive financial services and additional robust
functionality that is absent from other General-Purpose Reloadable
Cards.
Cuentas reported a net loss attributable to the company of $8.10
million for the year ended Dec. 31, 2020, compared to a net loss
attributable to the company of $1.32 million for the year ended
Dec. 31, 2019. As of March 31, 2021, the Company had $13.53
million in total assets, $3.34 million in total liabilities, and
$10.19 million in total stockholders' equity.
DECO-USA LLC: October 5 Plan Confirmation Hearing Set
-----------------------------------------------------
On Aug. 11, 2021, debtor DECO-USA, LLC filed with the U.S.
Bankruptcy Court for the Western District of Texas an Amended
Disclosure Statement in support of Amended Plan of Reorganization.
The Order for Hearing on Amended Disclosure Statement Combined with
Notice setting the deadline for objections to the Amended
Disclosure Statement was furnished to all creditors and parties in
interest. The objection raised by Santa Rosa Holdings, LLC was
overruled.
On Aug. 23, 2021, Judge Craig A. Gargotta approved the Disclosure
Statement and ordered that:
* Sept. 24, 2021, is fixed as the last day for receipt of
acceptances or rejections of the Amended Plan of Reorganization.
* Sept. 24, 2021, is fixed as the last day to file objections
to confirmation of the Plan.
* Oct. 5, 2021, via WEBEX is the hearing on the confirmation
of the Amended Plan of Reorganization.
* Sept. 30, 2021, is fixed as the last day for the Debtor to
file its ballot summary.
A copy of the order dated August 23, 2021, is available at
https://bit.ly/3kmNB8s from PacerMonitor.com at no charge.
About Deco-USA LLC
Deco-USA LLC is a Single Asset Real Estate debtor (as defined in
Section 101(51B) of the Bankruptcy Code). The Debtor is the fee
simple owner of two properties located in San Antonio, Texas having
a total appraised value of $6.45 million.
The Debtor filed a Chapter 11 petition (Bankr. W.D. Tex. Case No.
21-50679) in the United States Bankruptcy Court for the Western
District of Texas on May 28, 2021.
As of the Petition Date, the Debtor disclosed $6,455,518 in total
assets and $4,070,289 in total liabilities. Raul Aguilar, manager,
signed the petition. Judge Craig A. Gargotta is assigned to the
case. DEAN W. GREER is the Debtor's counsel.
DESIGN BUILD: Files for Chapter 7 Bankruptcy Protection
-------------------------------------------------------
Jake Abbott of Sacramento Business Journal reports that
Roseville-based homebuilder, Design Build Co., filed for Chapter 7
bankruptcy, reports $1.8 million in debt
The homebuilder owes approximately $1.8 million in debts to more
than 100 creditors who likely won't be reimbursed, according to the
company's recent bankruptcy filing.
The Design Build Co., which has offices in Roseville and Santa
Rosa, filed for voluntary Chapter 7 bankruptcy in U.S. Bankruptcy
Court of the Eastern District of California on Aug. 20, 2021.
On its website, the company says it provides an all-in-one
integrated design-build process, from budget to walk-through and
delivery. According to its mission statement, its core competency
is eliminating the waste often found in the construction industry.
The majority of past and current projects highlighted on its
website are in Napa and Sonoma counties.
In its bankruptcy filing, the company reported its assets at nearly
$1.6 million, all of which is in the form of personal property. The
majority of its assets, approximately $1.3 million, are pending
contract and litigation claims. Its next-largest asset was accounts
receivable, at $254,578. The company reporting having $38,512 in
cash and cash equivalents at the time of filing.
The Design Build Co. reported $1.8 million in liabilities. It
listed 103 individuals or entities of creditors with non-priority
unsecured claims, with the most notable being Union Bank at
$413,217 for a Paycheck Protection Program loan, and James and
Pamela Barth of Santa Rosa for $137,082 in general construction
work.
In its filing, the company said it will not have any funds to pay
back unsecured creditors after administrative expenses are paid.
The Barths lost their home in the 2017 Tubbs Fire. Pamela Barth
told the Business Journal they hired The Design Build Co. and were
within two months from a complete rebuild when company
representatives notified them of the impending bankruptcy. Just
weeks prior, however, the Barths were asked for more money to
complete the rebuild, she said.
"In mid-June, they told me that I had about $75,000 in my building
account and that based on expenses that were upcoming that I needed
to submit a $75,000 deposit," Pamela Barth said. "They were asking
for money when they knew they couldn't provide the service. As far
as I'm concerned that's fraud."
She said the company stopped responding to her inquiries in late
June 2021. The Barths have since hired an attorney and have filed a
civil complaint in Sonoma County Superior Court alleging fraud and
breach of contract.
Pamela Barth said she believes the company had a number of other
clients who were also fire victims.
The Design Build Co. and its legal representative did not return
calls and emails from the Business Journal on Monday, August 23,
2021.
The Design Build Co. reported currently holding executory contracts
or unexpired leases with 22 individuals or entities. It named 11
co-debtors in its filing.
The company's gross revenue in 2020 was reported as $14.5 million.
Gross revenue grew substantially between 2018 and 2019, increasing
from $1.4 million to $14.3 million, according to court documents.
The Design Build Co. also has five civil cases pending in which
it's named as a plaintiff, the majority of which involve claims of
breach of contract. The company is named as a defendant in two
pending civil cases, which include allegations of fraud and
wrongful termination.
About Design Build Co.
Design Build Co. is a Roseville-based homebuilder that provides an
all-in-one integrated design-build process, from budget to
walk-through and delivery.
The Design Build Company, LLC, filed a Chapter 7 bankruptcy
petition (Bankr. E.D. Cal. Case No. 21-22976) on Aug. 20, 2021.
Design Build disclosed assets of about $1.3 million and liabilities
of about $1.8 million.
Anthony Asebedo is the Debtor's counsel.
J. Michael Hopper has been tapped as Chapter 7 trustee.
DIOCESE OF BUFFALO: Taps Gellert Scali as Special Counsel
---------------------------------------------------------
The Diocese of Buffalo, N.Y. seeks approval from the U.S.
Bankruptcy Court for the Western District of New York to employ
Gellert Scali Busenkell & Brown, LLC as special counsel.
The Debtor needs the firm's legal assistance with respect to sexual
abuse-related claims in connection with the bankruptcy case (Case
No. 20-10343) filed by the Boy Scouts of America and Delaware BSA,
in the U.S. Bankruptcy Court for the District of Delaware.
The firm will be paid at hourly rates ranging from $275 to $395 and
reimbursed for out-of-pocket expenses incurred.
Charles Brown III, Esq., a partner at Gellert, disclosed in a court
filing that his firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Charles J. Brown III, Esq.
Gellert Scali Busenkell & Brown LLC
1201 N. Orange Street, Suite 300
Wilmington, DE 19801
Office: 302-425-5800
Direct Dial: 302-425-5813
Fax: 302-425-5814
Email: cbrown@gsbblaw.com
About The Diocese of Buffalo, N.Y.
The Diocese of Buffalo, N.Y., is home to nearly 600,000 Catholics
in eight counties in Western New York. The territory of the diocese
is co-extensive with the counties of Erie, Niagara, Genesee,
Orleans, Chautauqua, Wyoming, Cattaraugus, and Allegany in New York
State, comprising 161 parishes. There are 144 diocesan priests and
84 religious priests who reside in the Diocese.
The diocese through its central administrative offices (a) provides
operational support to the Catholic parishes, schools, and certain
other Catholic entities that operate within the territory of the
Diocese "OCE"; (b) conducts school operations through which it
provides parish schools with financial and educational support; (c)
provides comprehensive risk management services to the OCEs; (d)
administers a lay pension trust and a priest pension trust for the
benefit of certain employees and priests of the OCEs; and (e)
provides administrative support for St. Joseph Investment Fund,
Inc.
Dealing with sexual abuse claims, the Diocese of Buffalo sought
Chapter 11 protection (Bankr. W.D.N.Y. Case No. 20-10322) on Feb.
28, 2020. The diocese was estimated to have $10 million to $50
million in assets and $50 million to $100 million in liabilities as
of the bankruptcy filing.
The Honorable Carl L. Bucki is the case judge.
Bond, Schoeneck & King, PLLC, led by Stephen A. Donato, Esq., is
the diocese's counsel; Connors LLP and Lippes Mathias Wexler
Friedman LLP are its special litigation counsel; and Phoenix
Management Services, LLC is its financial advisor. Stretto is the
claims agent, maintaining the page:
https://case.stretto.com/dioceseofbuffalo/docket.
The Office of the U.S. Trustee appointed a committee of unsecured
creditors on March 12, 2020. The committee is represented by
Pachulski Stang Ziehl & Jones, LLP and Gleichenhaus, Marchese &
Weishaar, PC.
DIOCESE OF ROCHESTER: Taps Gellert Scali as Special Counsel
-----------------------------------------------------------
The Diocese of Rochester seeks approval from the U.S. Bankruptcy
Court for the Western District of New York to employ Gellert Scali
Busenkell & Brown, LLC as special counsel.
The Debtor needs the firm's legal assistance with respect to sexual
abuse-related claims in connection with the bankruptcy case (Case
No. 20-10343) filed by the Boy Scouts of America and Delaware BSA
in the U.S. Bankruptcy Court for the District of Delaware.
The firm will be paid at hourly rates ranging from $275 to $395 and
reimbursed for out-of-pocket expenses incurred.
Charles Brown III, Esq., a partner at Gellert, disclosed in a court
filing that his firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Charles J. Brown III, Esq.
Gellert Scali Busenkell & Brown LLC
1201 N. Orange Street, Suite 300
Wilmington, DE 19801
Office: 302-425-5800
Direct Dial: 302-425-5813
Fax: 302-425-5814
Email: cbrown@gsbblaw.com
About The Diocese of Rochester
The Diocese of Rochester in upstate New York provides support to 86
Roman catholic parishes across 12 counties in upstate New York. It
also operates a middle school, Siena Catholic Academy. The
diocese has 86 full-time employees and six part-time employees and
provides medical and dental benefits to an additional 68 retired
priests and two former priests.
The diocese generated $21.88 million of gross revenue for the
fiscal year ending June 30, 2019, compared with a gross revenue of
$24.25 million in fiscal year 2018.
The Diocese of Rochester filed for Chapter 11 bankruptcy protection
(Bankr. W.D.N.Y. Case No. 19-20905) on Sept. 12, 2019, amid a wave
of lawsuits over alleged sexual abuse of children. In the petition,
the diocese was estimated to have $50 million to $100 million in
assets and at least $100 million in liabilities.
Bond, Schoenec & King PLLC, Gellert Scali Busenkell & Brown LLC,
and Bonadio & Co. serve as the diocese's bankruptcy counsel,
special counsel and accountant, respectively. Stretto is the
claims and noticing agent.
The U.S. Trustee for Region 2 appointed an official committee of
unsecured creditors in the diocese's Chapter 11 case. Pachulski
Stang Ziehl & Jones, LLP and Berkeley Research Group, LLC serve as
the committee's legal counsel and financial advisor, respectively.
E.L. SERVICES: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: E.L. Services, Inc.
11501 Dublin Blvd, Ste 200
Dublin, CA 94568
Chapter 11 Petition Date: August 25, 2021
Court: United States Bankruptcy Court
Northern District of California
Case No.: 21-41087
Judge: Hon. William J. Lafferty
Debtor's Counsel: Chris Kuhner, Esq.
KORNFIELD, NYBERG, BENDES,
KUHNER & LITTLE P.C.
1970 Broadway, Ste 600
Oakland, CA 94612
Tel: 510-763-1000
Fax: 510-273-8669
Estimated Assets: $50,000 to $100,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Steven P. Baca as general manager.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/XAL5NUQ/EL_Services_Inc__canbke-21-41087__0001.0.pdf?mcid=tGE4TAMA
EMPIRE TODAY: Moody's Affirms B2 CFR & Rates $60MM Revolver Loan B2
-------------------------------------------------------------------
Moody's Investors Service affirmed Empire Today, LLC's B2 corporate
family rating and B2-PD probability of default rating. Moody's also
affirmed the B2 rating on the company's existing senior secured
term loan and assigned a B2 rating to the company's new proposed
$60 million revolving credit facility. The outlook remains stable.
The affirmation of Empire's ratings reflects governance
considerations particularly financial strategies. Pro forma for
Empire's pending acquisition by Charlesbank Capital Partners,
Moody's adjusted debt/EBITDA will temporarily increase to over
6.0x. However, the affirmation is supported by Moody's expectation
that Empire will prioritize debt repayment with its excess free
cash flow which, when combined with EBITDA growth, will result in
debt/EBITDA falling below 5.5x over the next 12-18 months. Empire's
existing senior secured term loan will remain in place post-closing
and will be upsized with a $170 million add-on which will increase
its total size to $595 million.
Affirmations:
Issuer: Empire Today, LLC
Corporate Family Rating, Affirmed B2
Probability of Default Rating, Affirmed B2-PD
Senior Secured Term Loan, Affirmed B2 (LGD4)
Assignments:
Issuer: Empire Today, LLC
Senior Secured Revolving Credit Facility, Assigned B2 (LGD4)
Outlook Actions:
Issuer: Empire Today, LLC
Outlook, Remains Stable
RATINGS RATIONALE
Empire's B2 corporate family rating reflects its small scale in a
highly competitive business environment with very large and well
capitalized competitors and its high leverage. It also reflects the
discretionary nature of the company's products, as well as its high
susceptibility to macroeconomic factors. Governance is also a key
rating factor particularly Empire's financial strategies under
private equity ownership. The existing sponsor H.I.G took
approximately $250 million in a debt financed dividend earlier this
year. Following the close of its acquisition by Charlesbank Capital
Partners, Moody's estimates proforma lease adjusted debt/EBITDA
will be over 6.0 times before improving to below 5.5 times in the
next 12-18 months. The pandemic induced recession in 2020 was
unusual as work at home mandates, travel restrictions and closure
of restaurants and entertainment venues resulted in increased
spending on home improvement projects and other home related retail
categories which has been a tail wind for Empire. The shift in the
company's sales mix towards higher margin hard surface flooring
vis-à-vis carpet, lower advertising spend and cost efficiencies
have also improved profitability. The company's direct to consumer
asset light business model also makes its cost structure quite
flexible. However, the gradual normalization of consumer spending
as the economy reopens will limit the company's topline and EBITDA
growth, and due to the company's small scale even small declines in
EBITDA can impact credits metrics significantly. Ratings are
supported by the solid market position Empire has established in
the highly-fragmented floor covering market, and in the direct to
consumer segment of that market in particular. Empire also has
limited seasonality and good liquidity.
The stable outlook reflects Moody's expectation that the company's
operating performance will remain solid despite the potential for a
shift back in consumer spending towards leisure and entertainment.
The outlook also reflects Moody's expectation that the company will
maintain good liquidity and financial policies will support debt
repayment from excess free cash flow and not become more
aggressive.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Although unlikely in the near term, a ratings upgrade could be
triggered by sustained improvement in earnings while maintaining
good liquidity and financial policies which would support an
improvement in credit metrics. Specifically, an upgrade would
require debt/EBITDA to be sustained below 4.5 times and
EBIT/interest expense sustained above 2.75 times.
The ratings could be downgraded if operating performance weakens
such that margins erode or topline growth stalls, should financial
policies become more aggressive, or liquidity deteriorates.
Specifically, the ratings could be downgraded if debt/EBITDA is
sustained above 5.5 times or EBIT/interest expense is sustained
below 2.0 times.
The principal methodology used in these ratings was Retail Industry
published in May 2018.
Empire Today, LLC ("Empire"), headquartered in Northlake, IL, is a
specialty retailer of carpet, hard floor, and window treatments.
The company offers shop-at-home sales in the largest metropolitan
markets in the U.S. Revenues are about $830 million.
ENERGY ENTERPRISES: Wins Cash Collateral Access
-----------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
has authorized Energy Enterprises USA Inc., dba Canopy Energy, to
use cash collateral on an interim basis in accordance with the
budget.
As adequate protection for the Debtor's use of cash collateral, the
U.S. Small Business Administration is granted a replacement lien to
the same extent, validity, and priority as the SBA's prepetition
lien.
The Court says the fees to any professionals identified on the
budget will be allowed upon obtaining a court order authorizing the
employment of the professional and after the professional has
obtained court approval of its fees and expenses pursuant to 11
U.S.C. section 330.
Any payment to the Debtor's principal, Lior Agam, for compensation
may only occur after an insider compensation form has been
submitted to the U.S. Trustee and the objection period has run.
The final hearing on the matter is scheduled for September 22, 2021
at 10:30 a.m.
A copy of the order is available at https://bit.ly/38cCNUU from
PacerMonitor.com.
About Energy Enterprises USA Inc.
Energy Enterprises USA Inc. -- https://www.canopyenergy.com/ --
d/b/a Canopy Energy, is a residential solar energy developer in
California. The company filed a Chapter 11 petition (Bankr. C.D.
Cal. Case No. 21-11374) on August 12, 2021. On the Petition Date,
the Debtor estimated $100,000 to $500,000 in assets and $1,000,000
to $10,000,000 in liabilities. The petition was signed by Lior
Agam, president.
Judge Maureen Tighe presides over the case.
The Law Offices of Michael Jay Berger serves as the Debtor's
counsel.
EXTRACTION OIL: FERC Wins Direct 3rd Circ. Appeal in Ch. 11 Dispute
-------------------------------------------------------------------
Law360 reports that the Federal Energy Regulatory Commission has
won a direct review by the Third Circuit Court of Appeals for a
dispute over a Delaware bankruptcy judge's refusal to delay an
energy company's pipeline contract rejection pending FERC review of
the effect of the termination on public interests.
U.S. District Court Judge Colm F. Connolly's decision late Monday,
August 23, 2021, said the dispute in Extraction Oil & Gas Inc.'s
Chapter 11 implicated three of the four circumstances giving courts
of appeal discretion to take up disputes directly from bankruptcy
court.
"My own review of the filings that led to the Bankruptcy Court's
rulings and the rulings themselves confirms to my satisfaction that
the rulings raise fundamental legal questions of public importance
that lie at the intersection of federal bankruptcy law and federal
energy law. The overriding question raised by these appeals is how
a bankruptcy court should proceed when a debtor in bankruptcy moves
to reject a contract that has been approved by FERC. This question
implicates the bankruptcy court's authority to reject executory
contracts and FERC's authority over the abrogation or modification
of contracts it has approved. Neither the Third Circuit nor the
Supreme Court has addressed this overriding question or the related
subsidiary questions identified by FERC that I would have to
resolve to adjudicate these appeals," Judge Connolly said.
"I also find that a direct appeal from the Bankruptcy Court's
rulings to the court of appeals could materially advance the
progress of these cases. Any ruling I
make will almost certainly be appealed to the Third Circuit. The
numerous pending appeals "leave little doubt that appellate review
by the Third Circuit is inevitable" and '[g]iven this reality,
having such review sooner rather than later may well result in
materially advancing the progress of these cases." In re: Nortel
15 Networks Inc., Nos. 15-196-LPS, 15-197-LPS, 2016 WL 2899225,
at *5 (D. Del.
May 17, 2016)."
A copy of the decision is available at
https://www.ded.uscourts.gov/sites/ded/files/opinions/20-1412.pdf
About Extraction Oil & Gas
Denver-based Extraction Oil & Gas, Inc. (NASDAQ: XOG) --
http://www.extractionog.com/-- is an independent energy
exploration and development company focused on exploring,
developing and producing crude oil, natural gas and NGLs primarily
in the Wattenberg Field in the Denver-Julesburg Basin of Colorado.
Extraction Oil & Gas and its affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No.
20-11548) on June 14, 2020. At the time of the filing, the Debtors
disclosed $1 billion to $10 billion in both assets and
liabilities.
Judge Christopher S. Sontchi oversees the cases.
The Debtors tapped Kirkland & Ellis, LLP, Kirkland & Ellis
International, LLP and Whireford, Taylor & Preston, LLC as legal
counsel; Alvarez & Marsal North America, LLC as restructuring
advisor; and Moelis & Company and Petrie Partners Securities, LLC
as investment banker and financial advisor. Kurtzman Carson
Consultants, LLC is the claims and balloting agent and
administrative advisor and PricewaterhouseCoopers LLP (PwC) is
Debtors' independent audit services provider.
* * *
U.S. Bankruptcy Judge Christopher S. Sontchi approved Extraction
Oil & Gas Inc.'s plan to reduce funded debt by $1.3 billion. The
Company emerged from bankruptcy in January 2021.
EZTOPELIZ LLC: Taps Nardella & Nardella as Legal Counsel
--------------------------------------------------------
Eztopeliz, LLC seeks approval from the U.S. Bankruptcy Court for
the Middle District of Florida to employ Nardella & Nardella, PLLC
to serve as legal counsel in its Chapter 11 case.
The firm's services include:
a. advising the Debtor concerning the operation of its business
in compliance with Chapter 11 and orders of the court;
b. defending any causes of action on behalf of the Debtor;
c. preparing legal papers;
d. assisting in the formulation of a plan of reorganization and
preparation of a disclosure statement;
e. providing all services of a legal nature in the field of
bankruptcy law.
The firm's hourly rates are as follows:
Partners $325 per hour
Associates $275 per hour
Paralegals $175 per hour
The Debtor paid the firm $7,196 for services rendered, and $1,738
for costs incurred prior to its bankruptcy filing.
The firm will also receive reimbursement for out-of-pocket expenses
incurred.
Michael Nardella, Esq., a partner at Nardella & Nardella, disclosed
in a court filing that his firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Michael A. Nardella, Esq.
Nardella & Nardella, PLLC
135 W. Central Blvd., Suite 300
Orlando, FL 32801
Tel: (407) 966-2680
Email: mnardella@nardellalaw.com
About Eztopeliz LLC
Eztopeliz, LLC, a company in Titusville, Fla., sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
21-03674) on Aug. 12, 2021, disclosing up to $10 million in assets
and $50 million in liabilities. Jeffrey C. Unnerstall, the
Debtor's manager, signed the petition. Nardella & Nardella, PLLC
is the Debtor's legal counsel.
FINANCIAL GRAVITY: Delays Filing of Third Quarter Form 10-Q
-----------------------------------------------------------
Financial Gravity Companies, Inc. filed a Form 12b-25 with the
Securities and Exchange Commission notifying the delay in the
filing of its Quarterly Report on Form 10-Q for the period ended
June 30, 2021. The Company needs additional time to complete the
auditor's review of its financial statements, in order to complete
the quarterly report on Form 10-Q prior to filing.
The Company conducts ongoing annual impairment assessments, at the
reporting unit level, of its recorded goodwill. The Company
assesses qualitative factors in order to determine whether it is
more likely than not that the fair value of a reporting unit is
less than its carrying amount. The qualitative factors evaluated
by the Company include: macroeconomic conditions of the local
business environment, overall financial performance, and other
entity specific factors as deemed appropriate. If, through this
qualitative assessment, the conclusion is made that it is more
likely than not that a reporting unit's fair value is less than its
carrying amount, a two-step impairment test is performed.
Management determined, by assessing the qualitative factors, that
it is more likely than not that the fair value of the Forta
reporting unit is less than its carrying value and that the
goodwill associated with the Forta reporting unit has been fully
impaired. As such, Management has written off the full amount,
$7,380,603, of the recorded goodwill associated with the Forta
reporting unit as of June 30, 2021.
About Financial Gravity
Headquartered in Austin Texas, Financial Gravity Companies, Inc. is
a parent company of stock brokerage, investment advisory, asset
management, tax planning for business and personal, and financial
advisor services companies.
Financial Gravity reported a net loss of $791,675 for the year
ended Sept. 30, 2020, compared to a net loss of $623,485 for the
year ended Sept. 30, 2019. As of March 31, 2021, the Company had
$10.07 million in total assets, $1.50 million in total current
liabilities, $1.32 million in total non-current liabilities, and
$7.24 million in total stockholders' equity.
Whitley Penn LLP, the Company's auditor since 2019 issued a "going
concern" qualification in its report dated Jan. 13, 2020, citing
that the Company has suffered recurring losses from operations and
has a net capital deficiency that raises substantial doubt about
its ability to continue as a going concern.
GIRARDI & KEESE: Trustee Says, Co. Owes more Than $101 Million
--------------------------------------------------------------
Law360 reports that Girardi Keese apparently owes more than $101
million to former clients, co-counsel, businesses and lenders, but
confounding records for 127 bank accounts have left it unclear how
much money the law firm actually has to pay them with, the firm's
bankruptcy trustee said in a court filing late Tuesday, August 24,
2021.
Girardi Keese trustee Elissa Miller of SulmeyerKupetz PC filed a
550-page analysis of assets and liabilities for the firm that was
full of uncertainty. She could not say for certain how much Girardi
Keese owes or how much it has due to flawed and conflicting
records.
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
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.
HELIUS MEDICAL: Former COO to Receive $442K Separation Pay
----------------------------------------------------------
The employment of Joyce LaViscount, chief operating officer of
Helius Medical Technologies, Inc. ended on July 20, 2021. In
connection with Ms. LaViscount's notice of intent to resign for
"Good Reason" under her employment agreement dated Oct. 19, 2015,
as amended, following a material change in the nature or scope of
Ms. LaViscount's authority, duties or responsibilities, and the
Company's waiver of its cure opportunity, the Company entered into
a Separation and Release Agreement with Ms. LaViscount on Aug. 17,
2021 providing that Ms. LaViscount will receive certain benefits in
connection with a termination for "Good Reason".
Under the Separation Agreement, subject to non-revocation of a
general release and waiver of claims in favor of the Company, the
Company has agreed to pay Ms. LaViscount a total of $442,150 less
required deductions and withholdings, paid in approximately equal
monthly installments during the twelve-month period following the
Separation Date. In addition, the Company has agreed to pay 100%
of the cost of premiums for continued health insurance coverage
through the earliest of (i) nine months following the Separation
Date and (ii) the date Ms. LaViscount becomes eligible for health
insurance benefits from a subsequent employer.
Ms. LaViscount's unvested options accelerated as of the Separation
Date, as provided in the Employment Agreement, with such options
being exercisable through Oct. 18, 2022 (i.e., one year plus 90
days from the Separation Date). Ms. LaViscount also remains
subject to the non-compete and non-solicitation provisions in her
Employment Agreement during the twelve-month period following the
Separation Date.
About Helius Medical
Helius Medical Technologies -- http://www.heliusmedical.com-- is a
neurotech company focused on neurological wellness. Its purpose is
to develop, license or acquire non-invasive technologies targeted
at reducing symptoms of neurological disease or trauma.
Helius Medical reported a net loss of $14.13 million for the year
ended Dec. 31, 2020, compared to a net loss of $9.78 million for
the year ended Dec. 31, 2019. As of June 30, 2021, the Company had
$10.72 million in total assets, $2.35 million in total liabilities,
and $8.37 million in total stockholders' equity.
Philadelphia, Pennsylvania-based BDO USA, LLP issued a "going
concern" qualification in its report dated March 10, 2021, citing
that the Company has incurred substantial net losses since its
inception, has an accumulated deficit of $118.9 million as of Dec.
31, 2020 and the Company expects to incur further net losses in the
development of its business. These conditions raise substantial
doubt about its ability to continue as a going concern.
HOME POINT: Fitch Lowers LT IDRs to 'B' & Alters Outlook to Neg.
----------------------------------------------------------------
Fitch Ratings has downgraded the Long-Term Issuer Default Ratings
(IDRs) of Home Point Capital Inc. and the debt issuing entity, Home
Point Financial Corporation (collectively Home Point), to 'B' from
'B+'. Concurrently, Fitch has also downgraded the senior unsecured
debt ratings of Home Point to 'B-'/'RR5' from 'B'/'RR5'. The Rating
Outlook was revised to Negative from Stable.
KEY RATING DRIVERS
IDRs and SENIOR DEBT
The downgrade and Outlook revision reflect Home Point's increase in
leverage above Fitch's stated negative rating sensitivity, stemming
from weaker than expected 2Q21 financial performance and a lower
profitability outlook in the near term driven by heightened market
competition in the mortgage originations market, compounded by
recent shareholder distributions that reduced its tangible capital
base. Fitch believes there is significant execution risk associated
with Home Point's plan to improve profitability and increase
retained earnings and paydown debt, to sufficiently reduce leverage
over the Outlook horizon.
Home Point's leverage (gross debt to tangible equity) increased to
8.9x as of June 30th 2021 and is estimated to be 9.2x pro forma for
the announced 2Q shareholder dividends (up from 3.8x at YE 2020);
but remains below the current covenant maximum under the company's
mortgage servicing rights (MSR) facility. Fitch expects leverage to
stabilize following management actions to reduce expenses but is
unlikely to reduce materially from here without a significant
improvement in profitability and/or specific deleveraging actions.
Home Point has communicated its plan of selling MSRs related to the
Ginnie Mae servicing portfolio and is also contemplating other
actions to reduce debt, however, any further deleveraging actions
are subject to execution risk and are not going to have a
meaningful impact on leverage metrics in the near-term. Fitch
currently expects leverage to gradually approach 7.5x over the
Outlook horizon. Corporate debt to tangible equity, which excludes
borrowings on warehouse facilities, was 1.7x as of June 30, 2021,
up sharply from 0.8x at YE 2020 pro forma for the unsecured note
issuance and shareholder distribution in January 2021.
Home Point reported a pretax operating loss and negative EBITDA in
2Q21, a sharp decline from 2020 and 1Q21 levels, which were driven
by very strong origination volume and elevated gain on sale (GOS)
margins. Home Point's annualized pretax return on average assets
(ROAA) declined to -5.5% in 2Q21, relative to 22% for FY 2020 and
13% in 1Q21, driven by severe compression in GOS margins in the
wholesale origination channel. For calculating ROAA Fitch adjusts
reported total assets to remove the Ginnie Mae loans eligible for
repurchase as well as includes income from equity method
investments if they relate to the core business.
Fitch does not expect the competitive environment to ease in the
near term, thus maintaining downward pressure on profitability.
Home Point has executed on some cost reductions in response to the
more competitive environment, which should support earnings in
2H21. However, Fitch believes it is unlikely to accrete tangible
equity materially, without a change in the margin environment.
Consistent with other mortgage companies, Home Point is reliant on
the wholesale debt markets to fund its operations. Secured debt,
which accounted for 91.2% of total debt at June 30th 2021, includes
warehouse facilities, a servicing advance facility, and a term loan
facility secured by MSRs.
Fitch views Home Point's liquidity profile as adequate. As of 2Q21,
Home Point had $209.9 million of unrestricted cash, $23.4 million
available on committed MSR facilities and another $350 million on
an uncommitted basis, $48.7 million availability on servicing
advance facilities, and $9 million on other secured facilities, in
addition to available capacities on its secured warehouse
facilities to support originations. Home Point recently increased
the capacity on its MSR financing facility to allow for additional
funding of MSRs, which Fitch believes provides flexibility
regarding the servicing portfolio growth plans.
Home Point is not subject to material asset quality risks as nearly
all originated loans are government or agency eligible and sold to
third parties shortly after origination. However, it has exposure
to repurchase or indemnification claims from third parties under
certain warranty provisions. Fitch considers the asset quality
performance of Home Point's servicing portfolio to be solid, as
delinquencies have been low relative to the overall market.
However, delinquencies are expected to trend above historical
averages for some time as pandemic-related forbearance programs
cease, which could result in increased servicing costs as well as
increased regulatory scrutiny.
Home Point's ratings remain supported by its market position as a
leading wholesale lender in the U.S., strong asset quality
performance, and execution on its first unsecured debt issuance,
which Fitch believes enhances funding flexibility. Rating
constraints include its short and uneven profitability track
record, the economic backdrop which Fitch believes may pressure
asset quality over the medium term, reliance on secured short-term
wholesale funding facilities and majority ownership of the parent
entity by private equity, which increases the potential for capital
extraction and limits long-term strategic clarity.
Fitch believes the highly cyclical nature of the mortgage
origination business with its reliance on GOS and the capital
intensity and valuation volatility of MSRs within the servicing
business are the primary rating constraints for non-bank mortgage
companies, including Home Point. Furthermore, the mortgage business
is subject to intense legislative and regulatory scrutiny, which
increases business risk, and the imperfect nature of interest rate
hedging can introduce liquidity risks related to margin calls or
earnings volatility. These industry constraints typically limit
non-bank mortgage companies' ratings to below investment grade.
The unsecured debt rating is one notch below the Long-Term IDR with
a recovery rating of 'RR5' reflecting its weaker relative recovery
prospects, given subordination to substantial secured debt in the
capital structure, and a limited pool of unencumbered assets mostly
consisting of MSRs, which could have significant valuation
volatility.
SUBSIDIARY AND AFFILIATED COMPANY
The ratings of Home Point Financial Corporation are equalized with
the ratings of Home Point Capital Inc. given it is a wholly owned
subsidiary and represents substantially all of the parent assets.
RATING SENSITIVITIES
IDRs AND SENIOR DEBT
Factor that could, individually or collectively, lead to negative
rating action/downgrade:
-- Negative rating action could be driven by an inability to
maintain sufficient liquidity to manage servicer advance
requirements, an inability to reduce leverage below 7.5x over
the Outlook horizon, sustained operating losses and/or a
further erosion of tangible equity base, an inability to
refinance secured funding facilities, or a lack of appropriate
staffing and resource levels relative to planned growth.
Should regulatory scrutiny of the company or industry increase
meaningfully, or if Home Point incurred substantial fines that
negatively impacted its franchise or operating performance,
this could also drive negative rating momentum.
Factors that could, individually or collectively, lead to positive
rating action/upgrade including a revision of the Negative
Outlook:
-- Fitch believes the Negative Outlook could be revised to Stable
if Home Point successfully executes on its stated plan to
improve profitability and reduce leverage.
-- While there is limited potential for further positive rating
actions in the near term, an improvement in the broader
economic and competitive backdrop, continued growth of the
business that enhances Home Point's franchise, improved
profitability and earnings consistency, a continuation of
strong asset quality, a sustained reduction in leverage below
6.0x, an increase in longer-duration funding and a stronger
liquidity profile, including an increase in committed funding
and the proportion of unsecured funding, could drive positive
rating momentum over time.
-- The unsecured debt rating is sensitive to changes in the Long
Term IDR and would be expected to move in tandem. However,
material decreases in unencumbered assets and/or a further
increase in the proportion of secured funding could result in
a wider notching of the senior unsecured debt rating relative
to Home Point's Long-Term IDR.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Financial Institutions and
Covered Bond 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.
ESG CONSIDERATIONS
Home Point has an ESG Relevance Score of '4' for Governance
Structure due to private equity ownership and board effectiveness
as they relate to protection of creditor and shareholder rights. An
ESG Relevance Score of '4' means Governance Structure is relevant
to Home Point's rating but not a key rating driver. However, it
does have a negative impact on the rating in combination with other
factors.
Home Point also has an ESG Relevance Score of '4' for Customer
Welfare -- Fair Messaging, Privacy and Data Security, due to its
exposure to compliance risks that include fair lending practices,
debt collection practices and consumer data protection, which has a
negative impact on the credit profile and is relevant to the rating
in conjunction with other factors.
Except for the matters discussed above, 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.
HTP INC: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------
Debtor: HTP, Inc.
DBA Hytech Power, Inc.
DBA DEEC, Inc.
DBA AHMBP, Inc.
721 250th Lane
Sammamish, WA 98074
Business Description: HTP, Inc.'s assets and operations consist of
holding 48% of Hytech, LLC and pursuing
certain litigation against parties that
have, among other things, misappropriated
technology and usurped business
opportunities.
Chapter 11 Petition Date: August 24, 2021
Court: United States Bankruptcy Court
Western District of Washington
Case No.: 21-11611
Judge: Hon. Timothy W. Dore
Debtor's Counsel: Christine M. Tobin-Presser, Esq.
BUSH KORNFELD LLP
601 Union St., Suite 5000
Seattle, WA 98101-2373
Tel: (206) 292-2110
Fax: (206) 292-2104
Email: ctobin@bskd.com
Total Assets: $772,000,000*
Total Liabilities: $10,446,604
* The Company has valued its tort claim in HTP, Inc. v. Hytech
Power, LLC (in arbitration), at $741 million.
The petition was signed by Henry W. Dean as executire chairman of
the Board.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/GW2BEYA/HTP_Inc__wawbke-21-11611__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. Acamar Investments Interest in $3,450,638
45793 Luckakuck Debtor's
Way, Suite 202 Distributions
Chiliwack, BC from Hytech, LLC
Canada V2R583
2. Breilh, Robert & Cynthia Promissory Note $264,694
500 106th Avenue NE #3011
Bellevue, WA 98004
3. Daniel Bjornson Promissory Note $66,865
18160 West
Windsong
Goodyear, AZ 85338
4. Daniel Bjornson Promissory Note $65,011
18160 West
Windsong
Goodyear, AZ 85338
5. Gardner, Julie & Ken Promissory Note $131,973
10708 1st Avenue NW
Seattle, WA 98177
6. Gardner, Julie & Ken Promissory Note $131,405
10708 1st Avenue NW
Seattle, WA 98177
7. Gardner, Julie & Ken Promissory Note $130,381
10708 1st Avenue NW
Seattle, WA 98177
8. Howard Seider Promissory Note $125,355
5904 Riverview Lane
Bradenton, FL 34209
9. Howard Seider IRA Promissory Note $126,319
#8003662
c/o Advanta IRA
Services LLC
5904 Riverview Lane
Bradenton, FL 34209
10. Jade Oil Promissory Note $81,641
c/o Doug Ellenor
1334 132A Street
Surrey BC V4A 7E7
Canada
11. Jerry Allyne Promissory Note $385,319
1445 185th Avenue NE
Bellevue, WA 98008
12. Kathryn Kight Promissory Note $64,783
401 19th Street NE,
Unit #5
East Wenatchee,
WA 98807
13. Keith Greenaway Promissory Note $125,195
17520 Oakshire Place
Castro Valley, CA 94546
14. Phil Jennings Employment $534,448
4920 102nd Lane NE Agreement
Kirkland, WA 98033
15. Pristach Family Trust Promissory Note $66,173
c/o Bob & Danna Pristach
13176 NE James Way
Kingston, WA 98346
16. RM & JW Promissory Note $186,032
c/o Radhika Moolgavkar
10034 SE 7th Street
Bellevue, WA 98004
17. Robert W Power IRA Promissory Note $66,057
c/o Real Trust IRA
Alternative
18543 NE 19th Place
Bellevue, WA 98008
18. Thomas Mentele Promissory Note $64,669
1298 NW Blakley Court
Seattle, WA 98177
19. Western WA Law Group Professional $2,400,000
c/o Dennis McGlothin Services
Edmonds, WA 98026
Email: dennis@westwalaw.com
Tel: 206-769-1480
20. Williams Kastner & Professional $184,771
Gibbs PLLC Services
c/o Scott Henrie
601 Union Street, Suite
Seattle, WA 98101
Tel: 206-628-6600
Email: shenrie@williamskastner.com
IGLESIA NUEVA: Plan and Disclosures Due Sept. 16, 2021
------------------------------------------------------
Judge Caryl E. Delano has entered an order that the Iglesia Nueva
Vision, Inc., must file a Plan and Disclosure Statement on or
before September 16, 2021.
The Disclosure Statement shall, at the minimum, contain adequate
information pertaining to the Debtor in the following areas:
(a) Pre− and post−petition financial performance;
(b) Reasons for filing Chapter 11;
(c) Steps taken by the Debtor since filing of the petition to
facilitate its reorganization;
(d) Projections reflecting how the Plan will be feasibly
consummated;
(e) A liquidation analysis; and
(f) A discussion of the Federal tax consequences as described in
section 1125(a)(1) of the Bankruptcy Code.
Pursuant to section 105(d)(2)(B)(vi) of the Bankruptcy Code, the
hearing on the approval of the Disclosure Statement shall be
consolidated with the hearing on the confirmation of the Plan and
shall be scheduled as set forth herein.
About Iglesia Nueva Vision
Iglesia Nueva Vision, Inc. sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. M.D. Fla. Case No. 21-03366) on June
28, 2021. Abner Alicea, president of Iglesia Nueva Vision, signed
the petition. At the time of the filing, the Debtor had total
assets of between $1 million and $10 million and total liabilities
of between $100,000 and $500,000. David W. Steen, P.A. is the
Debtor's legal counsel.
IMERYS TALC: $6.2M Ch. 11 Property Acquisitions Approved
--------------------------------------------------------
Law360 reports that bankrupt talc miner Imerys Talc America
received approval Tuesday, August 24, 2021, from a Delaware federal
bankruptcy judge to spend $6.2 million of proceeds from a sale of
its assets to purchase two pieces of real estate that have
potentially lucrative lease terms with their tenants.
During a virtual hearing, U. S. Bankruptcy Judge Laurie Selber
Silverstein said Imerys has exercised reasonable business judgment
in identifying two Vermont properties with triple-net leases with
its retail tenants that will bring in more money annually than the
bank interest currently being earned by the $200 million in sale
proceeds sitting idle in savings accounts.
About Imerys Talc America
Imerys Talc America, Inc. and its subsidiaries --
https://www.imerys-performance-additives.com/ -- are in the
business of mining, processing, selling and distributing talc. Its
talc operations include talc mines, plants and distribution
facilities located in Montana (Yellowstone, Sappington, and Three
Forks); Vermont (Argonaut and Ludlow); Texas (Houston); and
Ontario, Canada (Timmins, Penhorwood, and Foleyet). It also
utilizes offices located in San Jose, Calif., and Roswell, Ga.
Imerys Talc America and its subsidiaries, Imerys Talc Vermont, Inc.
and Imerys Talc Canada Inc., sought Chapter 11 protection (Bankr.
D. Del. Lead Case No. 19-10289) on Feb. 13, 2019. The Debtors were
estimated to have $100 million to $500 million in assets and $50
million to $100 million in liabilities as of the bankruptcy
filing.
Judge Laurie Selber Silverstein oversees the cases.
The Debtors tapped Richards, Layton & Finger, P.A., and Latham &
Watkins LLP as their legal counsel, Alvarez & Marsal North America,
LLC as financial advisor, and CohnReznick LLP as restructuring
advisor. Prime Clerk, LLC, is the claims agent.
The U.S. Trustee for Region 3 appointed an official committee of
tort claimants in the Debtors' Chapter 11 cases. The tort
claimants' committee is represented by Robinson & Cole, LLP.
INTELSAT SA: Now Has Backing of 75% of Funded Debt Holders
----------------------------------------------------------
On August 24, 2021, Intelsat S.A. (OTC: INTEQ), operator of the
world's largest and most advanced integrated satellite and
terrestrial network, announced that it has achieved the support of
key creditor groups across the capital structure on the terms of a
comprehensive financial restructuring that would reduce the
Company's debt by more than half – from nearly $15 billion to $7
billion – and position the Company for long-term success.
The Company has filed an Amended Plan of Reorganization in its
Chapter 11 proceedings pending before the U.S. Bankruptcy Court for
the Eastern District of Virginia, Richmond Division, accompanied by
an explanatory Disclosure Statement. The Amended Plan has the
support of holders of approximately $11 billion, or nearly 75%, of
the Company's funded debt. These supporting creditors have executed
a Plan Support Agreement that binds their support for the Company's
Amended Plan.
The Company is seeking Court approval of the Disclosure Statement
and to establish procedures to solicit votes on the Amended Plan at
a hearing scheduled for September 1, 2021.
Today's filings and the widespread consensus in support of the
Amended Plan help to achieve completion of the financial
restructuring process and the Company's emergence from Chapter 11
by the end of 2021. The Amended Plan provides that Intelsat will
emerge as a private company, with the support of new equity owners,
to best advance its strategic objectives and accelerate its growth
trajectory, with a path to becoming publicly traded again at some
point in the next five years.
Over the course of the financial restructuring process, Intelsat
has advanced on a number of technological innovations. Intelsat is
leveraging its unparalleled global orbital and spectrum rights,
scale, and partnerships to build the world’s first global 5G
satellite-based, software-defined, unified network of networks. The
Intelsat network will be capable of supporting virtually any access
technology, enabling the next generation of global mobility, IoT,
and 5G services with never-before-seen simplicity, coverage,
economics, and performance.
About Intelsat S.A.
Intelsat S.A. -- http://www.intelsat.com/-- is a publicly held
operator of satellite services businesses, which provides a diverse
array of communications services to a wide variety of clients,
including media companies, telecommunication operators, internet
service providers, and data networking service providers. It is
also a provider of commercial satellite communication services to
the U.S. government and other select military organizations and
their contractors. The company's administrative headquarters are
in McLean, Virginia, and the Company has extensive operations
spanning across the United States, Europe, South America, Africa,
the Middle East, and Asia.
Intelsat S.A. and its debtor-affiliates concurrently filed
voluntary petitions for relief under Chapter 11 of the Bankruptcy
Code (Bankr. E.D. Va. Lead Case No. 20-32299) on May 13, 2020. The
petitions were signed by David Tolley, executive vice president,
chief financial officer, and co-chief restructuring officer. At the
time of the filing, the Debtors disclosed total assets of
$11,651,558,000 and total liabilities of $16,805,844,000 as of
April 1, 2020.
Judge Keith L. Phillips oversees the cases.
The Debtors tapped Kirkland & Ellis LLP and Kutak Rock LLP as legal
counsel; Alvarez & Marsal North America, LLC as restructuring
advisor; PJT Partners LP as financial advisor & investment banker;
Deloitte LLP as tax advisor; and Deloitte Financial Advisory
Services LLP as fresh start accounting services provider. Stretto
is the claims and noticing agent.
The U.S. Trustee for Region 4 appointed an official committee of
unsecured creditors on May 27, 2020. The committee tapped Milbank
LLP and Hunton Andrews Kurth LLP as legal counsel; FTI Consulting,
Inc. as financial advisor; Moelis & Company LLC as investment
banker; Bonn Steichen & Partners as special counsel; and Prime
Clerk LLC as information agent.
IRONSTONE GROUP: Posts $130K Net Operating Loss in Second Quarter
-----------------------------------------------------------------
Ironstone Group, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net
operating loss of $130,242 for the three months ended June 30,
2021, compared to a net operating loss of $68,031 for the three
months ended June 30, 2020.
For the six months ended June 30, 2021, the Company reported a net
operating loss of $209,640 compared to a net operating loss of
$137,186 for the same period during the prior year.
As of June 30, 2021, the Company had $4.20 million in total assets,
$3.51 million in total liabilities, and $687,400 in total
stockholders' equity.
Net cash used in operating activities was $239,911 and $277,386 for
the six months ended June 30, 2021 and 2020, respectively. The
Company has a line of credit arrangement with First Republic Bank
with a borrowing limit of $350,000 with interest based upon the
lender's prime rate plus 4.5%. Interest is currently payable
monthly at 7.75%. The line is guaranteed by William R. Hambrecht,
chief executive officer, director. The line of credit is due on
demand and is secured by all of the Company's business assets. At
March 31, 2021 the outstanding balance under the line was
$350,000.
At June 30, 2021, the outstanding balance the Company borrowed from
related party Mr. William R. Hambrecht was $324,313 with interest
at 7.75% per annum and $300,000 at 6.0% per annum. As of March 31,
2021, the total notes payable to the third party was $2,216,372.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/723269/000143774921020595/irns20210630_10q.htm
About Ironstone Group, Inc.
Ironstone Group, Inc.'s main assets are investments in
non-marketable securities of TangoMe Inc., Arcimoto Inc. and
marketable securities of Salon Media Group Inc., Truett-Hurst Inc.,
and FlexiInternational Software Inc.
Ironstone reported a net loss of $258,753 in 2014 following a net
loss of $169,747 in 2013.
JOHNSON & JOHNSON: Cancer Victims Seek to Block Bankruptcy Plan
---------------------------------------------------------------
Attorneys for thousands of women diagnosed with ovarian cancer
after decades of exposure to Johnson & Johnson's (NYSE:JNJ) talcum
powder products are seeking a temporary restraining order and
permanent injunction to prevent J&J, or any of its corporate
affiliates, from transferring assets to a subsidiary and plunging
it into bankruptcy.
The company has not denied that it is scheming to shield its $500
billion in assets from women cancer victims by moving its growing
talc-cancer liabilities to a subsidiary before forcing that entity
into bankruptcy. The total damages suffered by current talc-cancer
victims is estimated at close to $17 billion. Historically,
bankruptcy cases filed to resolve litigation, including those
related to asbestos, often take years, and almost never fully repay
creditors, including personal injury victims.
In a motion filed in state district court in Missouri, the women
argue that such a move amounts to a fraudulent conveyance and that
laws in Missouri and most other states prevent such transfers of
liabilities by solvent and profitable companies. They also note
that such an approach could immediately halt more than 34,000
claims by ovarian cancer victims and force all related litigation
into bankruptcy court, rather than giving these victims their day
in trial court before judges and juries.
"Johnson & Johnson has actively threatened attorneys for plaintiffs
with this scheme to force out-of-court settlements at pennies on
the dollar. This is clear from what has been widely reported,
combined with J&J's response," says Andy Birchfield, Mass Tort
Section Head of the Beasley Allen law firm, attorney for three
women or surviving relatives named in the filing. "J&J has betrayed
its customers and concealed from the public that its
asbestos-contaminated talc was poisoning women for generations. It
used its powerful marketing arm to target Black women and other
minorities, bullied the FDA to look the other way, and is now
attempting to abuse the bankruptcy system to avoid its
responsibility."
The strategy is known in legal circles as the "Texas Two-Step"
because Texas law allows economically viable companies to
incorporate in the state and then transfer liabilities to another
entity with limited or no assets. In a recent similar case, In re
DBMP LLC, U.S. Bankruptcy Judge J. Craig Whitley was critical of
the practice and said personal injury claimants may have been
defrauded in the process. In recent years, other companies
including Georgia-Pacific LLC also split off asbestos liabilities
through divisional mergers before placing them in bankruptcy.
"J&J has not denied they are considering such an outrageous plan,"
says Michelle Parfitt, co-lead counsel in the Talcum Powder MDL and
Senior Partner at Ashcraft and Gerel, who also represents the
plaintiffs. "If J&J is willing to resolve these claims within the
civil court system, then such an injunction would have no effect on
J&J's business operations and should not create any objections on
their part."
Birchfield says the filing could have been made in several other
states, but Missouri was chosen because several talc-related trials
are pending there. The next trial is scheduled to begin September
7, in St. Louis.
"This scheme is part of a disturbing trend," says Alexandra Walsh,
founder of Walsh Law. "If J&J is allowed to evade its obligations
in this way, it will set a dangerous precedent, prompting other
hugely profitable corporations to use the bankruptcy laws to shirk
responsibility for their wrongdoing."
Dozens of peer-reviewed medical studies published in the last 35
years have found a statistically significant correlation between
talcum powder use and ovarian cancer. Further research has
confirmed that talc particles, when applied to the perineal area,
can migrate to the ovaries and result in inflammation and related
malignancies. In December 2018, Reuters reported that J&J knew for
decades that its talc products were laced with asbestos but kept
that information from regulators and the public.
In May 2020, Johnson & Johnson announced the company would no
longer make or market talc-based powders for the North American
market.
In June, the U.S. Supreme Court declined to hear an appeal
resulting from a $2.1 billion judgment against the company entered
by the Missouri Court of Appeals and upheld by the Missouri Supreme
Court. That appellate court found that J&J had engaged in
"reprehensible conduct" for decades by repeatedly denying the
presence of asbestos and the known association between talc use and
ovarian cancer.
JOHNSON & JOHNSON: Talc Users Ask Court to Stop Liability Spinoff
-----------------------------------------------------------------
Law360 reports that amid media reports that Johnson & Johnson may
offload its sizable talc legal liabilities into an entity destined
for bankruptcy, ovarian cancer patients asked a Missouri court
Tuesday, August 24, 2021. for a restraining order against a move
they say would deprive them of damages. Filed in Missouri Circuit
Court in the City of St. Louis, the petition by three ovarian
cancer patients who blame their illnesses on J&J's talcum powder
urges the court to restrain the health and device giant from
launching what they call an imminent threat to their legal rights.
About Johnson & Johnson
Based in Skillman, New Jersey, Johnson & Johnson Consumer Companies
Inc. engages in the research and development of products. The
Company provides products for newborns, babies, toddlers, and
mothers, including cleansers, skin care, moisturizers, hair care,
diaper care, sun protection, and nursing products.
* * *
Johnson & Johnson has chosen law firm Jones Day to advise it as it
explores placing a subsidiary in bankruptcy to settle thousands of
personal injury claims linking talcum-based baby powder to cancer,
Dow Jones reported. J&J could move talc-related liabilities into a
new unit formed specifically for bankruptcy, protecting
income-producing assets.
JR STRANO HOLDINGS: Taps Van Horn Law Group as Legal Counsel
------------------------------------------------------------
JR Strano Holdings, LLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of Florida to employ Van Horn Law
Group, P.A. to handle its Chapter 11 case.
The standard rates for the firm's attorneys range from $350 to $450
per hour. Paralegals charge an hourly fee of $150.
Van Horn Law Group will be paid a retainer in the amount of $5,000,
plus $1,738 for the filing fee. The firm will also receive
reimbursement for out-of-pocket expenses incurred.
Chad Van Horn, Esq., a partner at Van Horn Law Group, disclosed in
a court filing that his firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Chad T. Van Horn, Esq.
Van Horn Law Group, P.A.
330 North Andrews Avenue Suite 450
Fort Lauderdale, FL 33301
Tel: (954) 637-0000 / (954) 765-3166
Email: chad@cvhlawgroup.com
About JR Strano Holdings
JR Strano Holdings, LLC filed a Chapter 11 bankruptcy petition
(Bankr. S.D. Fla. Case No. 21-17658) on Aug. 4, 2021, disclosing up
to $50,000 in assets and up to $100,000 in liabilities. Judge
Mindy A. Mora oversees the case. The Debtor is represented by Van
Horn Law Group, P.A.
KATERRA INC: Creditors Committee Notes of Rival Plan
----------------------------------------------------
The Official Committee of Unsecured Creditors of Katerra Inc., et
al. objects to the Emergency Motion for Entry of an Order
Conditionally Approving the Adequacy of the Disclosure Statement
filed by Katerra Inc. and its debtor subsidiaries.
The Committee claims that the Disclosure Statement Should Include
References to the Committee Plan, the Committee's Position
regarding the Debtor Plan, the Committee's Summary of the D&O
Claims, an Analysis of the Avoidance Actions, and a Creditor
Recovery Analysis. None of the conclusory statements in the
Disclosure Statement provide creditors with the information they
need to make an informed decision on how to vote for the Debtor
Plan.
The Committee points out that the Court should not approve the
Disclosure Statement without any analysis of potential Avoidance
Actions, while the Committee is still evaluating the Debtors'
proposed inclusion of Releasing Parties and related treatment of
Avoidance Actions.
The Committee asserts that the Debtors should be required to
include in the Disclosure Statement the Committee's preliminary
analysis of potential directors and officers ("D&O") claims, a
conspicuous statement that the Committee does not support the
Debtor Plan, an analysis of potential Avoidance Actions, and a
recovery analysis to cure defects.
The Committee further asserts that the Court should approve a
Combined Disclosure Statement for Debtor Plan and Committee Plan if
the Motion to terminate exclusivity is granted. A combined
Disclosure Statement is particularly appropriate in this case since
the Committee Plan is substantially similar to the Debtor Plan,
with the main differences being the release provisions.
The Committee contends that the Solicitation Procedures Motion
should be denied and the Disclosure Statement should not be
conditionally approved, unless the Debtors revise the Disclosure
Statement to include the proposed modifications.
Proposed Counsel to the Official Committee of Unsecureds:
FOX ROTHSCHILD LLP
Trey A. Monsour, Esq. (Tex. Bar No. 14277200)
Saint Ann Court
2501 North Harwood Street, Suite 1800
Dallas, TX 75201
Telephone: (214) 231-5796
2843 Rusk Street
Houston, Texas 77003
Cell: (713) 927-7469
tmonsour@foxrothschild.com
-and-
Michael A. Sweet (admitted pro hac vice)
Keith C. Owens (admitted pro hac vice)
345 California Street, Suite 2200
San Francisco, California 94104
Telephone: (415) 364-5540
msweet@foxrothschild.com
-and-
Gordon E. Gouveia (admitted pro hac vice)
321 North Clark Street, Suite 1600
Chicago, IL 60654
Telephone: (312) 980-3816
ggouveia@foxrothschild.com
About Katerra Inc.
Based in Menlo Park, Calif., Katerra Inc. is a Japanese-funded,
American technology-driven offsite construction company. Katerra
was founded in 2015 by Michael Marks, former chief executive
officer of Flextronics and former Tesla interim CEO, along with
Fritz Wolff, the executive chairman of The Wolff Co. It offers
technology-driven design, manufacturing, and assembly solution for
bathroom pods, door and window, furniture, and modular utility
systems.
Katerra and its affiliates sought Chapter 11 protection (Bankr.
S.D. Tex. Lead Case No. 21-31861) on June 6, 2021. In its
petition, Katerra disclosed assets of between $500 million and $1
billion and liabilities of between $1 billion and $10 billion.
Judge David R. Jones oversees the cases.
The Debtors tapped Kirkland & Ellis, LLP and Jackson Walker, LLP as
bankruptcy counsel; Houlihan Lokey Capital, Inc. as investment
banker; Alvarez & Marsal North America, LLC as financial and
restructuring advisor; and KPMG, LLP as tax consultant. Prime Clerk
LLC is the claims and noticing agent.
The official committee of unsecured creditors tapped Fox
Rothschild, LLP, as counsel; and FTI Consulting, Inc., as financial
advisor.
Weil, Gotshal & Manges LLP is counsel for SB Investment Advisers
(UK) Limited, DIP lender.
* * *
Katerra in early August 2021 won court approval to sell factories
in Washington state and California for a total of $71 million. Blue
Varsity LLC, a wholly-owned subsidiary of Mercer International
Inc., purchased Katerra's cross-laminated timber factory in
Spokane, Wash. Volumetric Building Companies, a Philadelphia based
construction company, agreed to buy Katerra's two-year-old factory
in Tracy, Calif.
KATERRA INC: Gets Court Okay to Solicit Liquidation Votes
---------------------------------------------------------
Allison McNeely of Bloomberg News reports that Katerra Inc., a
construction firm based in Silicon Valley, got interim court
approval for its disclosure statement and to collect votes on a
proposed bankruptcy plan that would fully repay secured lenders.
The official creditor committee filed an objection to the
disclosure statement, and a motion to terminate the company's
exclusive control over its Chapter 11, in order to be able to
pursue claims against the debtor’s directors and officers.
Judge David Jones approved the Katerra disclosure statement in a
court hearing in Houston Tuesday, August 24, 2021.
About Katerra Inc.
Based in Menlo Park, Calif., Katerra Inc. is a Japanese-funded,
American technology-driven offsite construction company. Katerra
was founded in 2015 by Michael Marks, former chief executive
officer of Flextronics and former Tesla interim CEO, along with
Fritz Wolff, the executive chairman of The Wolff Co. It offers
technology-driven design, manufacturing, and assembly solution for
bathroom pods, door and window, furniture, and modular utility
systems.
Katerra and its affiliates sought Chapter 11 protection (Bankr.
S.D. Tex. Lead Case No. 21-31861) on June 6, 2021. In its petition,
Katerra disclosed assets of between $500 million and $1
billion and liabilities of between $1 billion and $10 billion.
Judge David R. Jones oversees the cases.
The Debtors tapped Kirkland & Ellis, LLP and Jackson Walker, LLP as
bankruptcy counsel; Houlihan Lokey Capital, Inc. as investment
banker; Alvarez & Marsal North America, LLC as financial and
restructuring advisor; and KPMG, LLP as tax consultant. Prime Clerk
LLC is the claims and noticing agent.
The official committee of unsecured creditors tapped Fox
Rothschild, LLP, as counsel; and FTI Consulting, Inc., as financial
advisor.
Weil, Gotshal & Manges LLP is counsel for SB Investment Advisers
(UK) Limited, DIP lender.
* * *
Katerra in early August 2021 won court approval to sell factories
in Washington state and California for a total of $71 million. Blue
Varsity LLC, a wholly-owned subsidiary of Mercer International
Inc., purchased Katerra's cross-laminated timber factory in
Spokane, Wash. Volumetric Building Companies, a Philadelphia-based
construction company, agreed to buy Katerra's two-year-old factory
in Tracy, Calif.
KATERRA INC: Greensill Liquidators Say Plan Patently Unconfirmable
------------------------------------------------------------------
Greensill Limited (in liquidation) acting by its joint liquidators,
Andrew Charters and Sarah O'Toole of Grant Thornton UK LLP of 30
Finsbury Square, London, UK EC2A 1AG ("Greensill Limited"), a
creditor, objects to the Emergency Motion for Entry of an Order
Conditionally Approving the Adequacy of the Disclosure Statement
filed by Katerra Inc. and its debtor subsidiaries.
Greensill Limited points out that the Disclosure Statement fails to
provide adequate information regarding Greensill Limited's $440
million claim and the Plan appears to be patently unconfirmable due
to the inclusion of third-party releases that may foreclose access
by the Debtors' estates to $65 million in directors and officers
insurance policies—estates which, to Greensill Limited's
understanding, are projected to only contain $35 million in cash
for distribution in these proceedings.
Greensill Limited claims that the Court should also decline to
conditionally approve the adequacy of the Disclosure Statement due
to the Debtors' failure to provide adequate information regarding
Greensill Limited's claims.
Additionally, the Debtors should clarify their intentions with
respect to what appear to be Plan provisions that would result in
consolidated distributions of asset sale proceeds to creditors of
non-selling entities. Further, the Court should decline to approve
the Disclosure Statement due to the third-party releases, which
appear to render the Plan patently unconfirmable under the best
interest of creditors test.
Finally, the Court should compel the Debtors to include in any
disclosure statement that is ultimately approved in these cases a
description of Greensill Limited's position regarding the validity
of its $440 million claim against various Debtors as the allowance
of such claim will have a substantial impact on creditors and is
thus necessary to ensure the Disclosure Statement contains adequate
information to enable creditors to make an informed judgment about
the Plan.
Attorneys for Creditor Greensill Limited:
ORRICK, HERRINGTON & SUTCLIFFE LLP
Ryan C. Wooten
S.D. Tex. Bar No. 1259974
609 Main, 40th Floor
Houston, TX 77002
Telephone: (713) 658-6400
Facsimile: (713) 658-6401
E-mail: Katerranotice@orrick.com
Raniero D'Aversa
Evan C. Hollander
51 West 52nd Street
New York, New York 10019-6142
Telephone: (212) 506-5000
Facsimile: (212) 506-5151
Katerranotice@orrick.com
About Katerra Inc.
Based in Menlo Park, Calif., Katerra Inc. is a Japanese-funded,
American technology-driven offsite construction company. Katerra
was founded in 2015 by Michael Marks, former chief executive
officer of Flextronics and former Tesla interim CEO, along with
Fritz Wolff, the executive chairman of The Wolff Co. It offers
technology-driven design, manufacturing, and assembly solution for
bathroom pods, door and window, furniture, and modular utility
systems.
Katerra and its affiliates sought Chapter 11 protection (Bankr.
S.D. Tex. Lead Case No. 21-31861) on June 6, 2021. In its
petition, Katerra disclosed assets of between $500 million and $1
billion and liabilities of between $1 billion and $10 billion.
Judge David R. Jones oversees the cases.
The Debtors tapped Kirkland & Ellis, LLP and Jackson Walker, LLP as
bankruptcy counsel; Houlihan Lokey Capital, Inc. as investment
banker; Alvarez & Marsal North America, LLC as financial and
restructuring advisor; and KPMG, LLP as tax consultant. Prime Clerk
LLC is the claims and noticing agent.
The official committee of unsecured creditors tapped Fox
Rothschild, LLP, as counsel; and FTI Consulting, Inc., as financial
advisor.
Weil, Gotshal & Manges LLP is counsel for SB Investment Advisers
(UK) Limited, DIP lender.
* * *
Katerra in early August 2021 won court approval to sell factories
in Washington state and California for a total of $71 million. Blue
Varsity LLC, a wholly-owned subsidiary of Mercer International
Inc., purchased Katerra's cross-laminated timber factory in
Spokane, Wash. Volumetric Building Companies, a Philadelphia-based
construction company, agreed to buy Katerra's two-year-old factory
in Tracy, Calif.
L'OCCITANE INC: Court Confirms U.S. Affiliate's Chapter 11 Plan
---------------------------------------------------------------
Law360 reports that a New Jersey bankruptcy judge on Tuesday,
August 24, 2021, confirmed a Chapter 11 plan for the U.S. affiliate
of French cosmetics company L'Occitane that will allow the retailer
to continue operating with a smaller boutique footprint in response
to waning store traffic and surging online sales.
Citing sluggish store traffic compounded by the COVID-19 pandemic,
the New York City-based debtor entered bankruptcy court Jan. 26
with 166 boutiques, and the plan will leave it with 133 stores
under reworked lease terms, court records show. The plan, confirmed
by U. S. Bankruptcy Judge Michael B. Kaplan, is funded by cash and
an unsecured exit loan.
About L'Occitane Inc.
New York-based L'Occitane, Inc. -- http://www.loccitane.com/-- is
a national retail chain that sells and promotes the internationally
renowned "L'OCCITANE en Provence" beauty and well-being products
brand in the United States through boutiques in 36 states and its
website. After opening its first boutique in the U.S. in 1996, the
Company presently operates 166 boutiques in 36 states and Puerto
Rico.
Founded by Olivier Baussan more than 40 years ago,
Switzerland-based L'OCCITANE en Provence captures the true art de
vivre of Provence, offering a sensorial immersion in the natural
beauty and lifestyle of the South of France. From the texture of
L'OCCITANE products to the scent, each skincare, body care, and
fragrance formula promises pleasure through beauty and well-being
-- a moment rich in enjoyment and discovery that goes beyond
tangible benefits to create a different experience of Provence.
On Jan. 26, 2021, L'Occitane, Inc., filed a Chapter 11 petition
(Bankr. D.N.J. Case No. 21-10632). The Debtor estimated $100
million to $500 million in assets and liabilities as of the
bankruptcy filing. International operations are not part of the
Chapter 11 filing.
The Hon. Michael B. Kaplan is the case judge.
Fox Rothschild LLP is serving as the Company's legal counsel, RK
Consultants LLC is serving as financial advisor, and Hilco Real
Estate, LLC is serving as real estate advisor to the Company.
Stretto is the claims agent, maintaining the page
https://cases.stretto.com/LOccitane
L'OCCITANE INC: Exiting Chapter 11 by End of August
---------------------------------------------------
L'Occitane, Inc., a leading retailer in the U.S. of beauty and
well-being products rich in natural and organic ingredients that
preserves and celebrates the traditions of Provence, announced Aug.
25, 2021, that it has successfully completed the restructuring of
its U.S. lease portfolio, creating a sustainable store platform for
the long term. The optimized footprint includes 133 L'OCCITANE en
Provence boutiques, providing the Company with a robust, go-forward
brick-and-mortar presence to best serve customers across multiple
channels.
The Company [on Aug. 25] received approval of its Plan of
Reorganization from the United States Bankruptcy Court for the
District of New Jersey, positioning L'Occitane to emerge at month's
end from the Chapter 11 process commenced in January to implement
the store footprint optimization. Jointly proposed by the Company
and the official committee of its unsecured creditors, the Plan
provides for full recovery on the allowed claims of all creditors.
"Today's achievement is an exciting and important step for the
continued success of the iconic L'OCCITANE en Provence brand in the
U.S.," said Yann Tanini, Managing Director of L'Occitane North
America. "With our boutique footprint now right-sized, we are in a
strong position to continue delivering the extraordinary L'OCCITANE
beauty experience and one-of-a-kind products that our customers
know and love. We thank our employees, customers, suppliers, and
landlords for their support, collaboration, and trust, enabling us
to move through this process efficiently and reach this positive
outcome."
Mr. Tanini added, "As we advanced our restructuring process, our
team has remained focused on enhancing our offerings for our loyal
clients, finding new, innovative ways to connect one-on-one,
leverage technology, and further expand the personalized, inclusive
service that is a hallmark of our culture. We also have continued
our efforts to make beauty more sustainable and eco-conscious, true
to our brand's heritage and our long-standing commitment to making
a favorable impact in our communities. Altogether, these
transformational steps have best prepared our business to thrive
for years to come, and we are thrilled about the opportunities
ahead."
Additional information about L'Occitane's lease portfolio
restructuring, including Court filings, is available at
https://cases.stretto.com/LOccitane.
About L'Occitane Inc.
New York-based L'Occitane, Inc. -- http://www.loccitane.com/-- is
a national retail chain that sells and promotes the internationally
renowned "L'OCCITANE en Provence" beauty and well-being products
brand in the United States through boutiques in 36 states and its
website. After opening its first boutique in the U.S. in 1996, the
Company presently operates 166 boutiques in 36 states and Puerto
Rico.
Founded by Olivier Baussan more than 40 years ago,
Switzerland-based L'OCCITANE en Provence captures the true art de
vivre of Provence, offering a sensorial immersion in the natural
beauty and lifestyle of the South of France. From the texture of
L'OCCITANE products to the scent, each skincare, body care, and
fragrance formula promises pleasure through beauty and well-being
-- a moment rich in enjoyment and discovery that goes beyond
tangible benefits to create a different experience of Provence.
On Jan. 26, 2021, L'Occitane, Inc., filed a Chapter 11 petition
(Bankr. D.N.J. Case No. 21-10632). The Debtor estimated $100
million to $500 million in assets and liabilities as of the
bankruptcy filing. International operations are not part of the
Chapter 11 filing.
The Hon. Michael B. Kaplan is the case judge.
Fox Rothschild LLP is serving as the Company's legal counsel, RK
Consultants LLC is serving as financial advisor, and Hilco Real
Estate, LLC is serving as real estate advisor to the Company.
Stretto is the claims agent, maintaining the page
https://cases.stretto.com/LOccitane
LESLIE'S POOLMART: S&P Upgrades ICR 'BB-' on Post-IPO Deleveraging
------------------------------------------------------------------
S&P Global Ratings raised all its ratings on U.S. specialty pool
supply retailer Leslie's Poolmart Inc., including the issuer credit
rating, to 'BB-' from 'B+'.
The stable outlook reflects the expectation that Leslie's will
maintain good performance leading to leverage around 3x, providing
sufficient cushion in credit metrics to absorb volatility due to
demand fluctuations or unfavorable weather events.
S&P said, "Leslie's has outperformed our fiscal 2021 forecast and
we now expect leverage will be maintained around 3x. The company's
results reflect significantly increased consumer demand for
pool-related products, leading to quick deleveraging from post-IPO
levels of about 4x. We believe that through the pandemic consumers
have made investments into their homes and shifted their lifestyle
such that residential pool usage will exceed pre-pandemic levels
even after the pandemic subsides. This will create a long-term
positive tailwind for Leslie's and leads us to forecast retention
of customers and sales it has gained over the last several
quarters. This leads to a step function change in our expectation
for annual S&P Global Ratings-adjusted EBITDA generation, which we
now forecast to be about 30% higher than fiscal 2020 levels,
contributing to our expectation for leverage to be maintained at
about 3x. As a result of this change, we are revising the financial
risk profile to significant from aggressive."
Unable to travel and with other experiences strictly limited due to
health and safety concerns, consumers have increasingly turned to
spending more time in home pools, driving up demand for
pool-related purchases such as chemicals and equipment. In
addition, Leslie's cites new pool construction annual new pool
construction increasing from 70,000 in 2015-2019, to 100,000 in
2020 and 110,000 in 2021. These levels are expected to be
maintained over the next five years, adding roughly 1.5%-2% new
pools in the U.S. annually, and accelerating the expansion of the
company's total addressable market.
Leslie's third-quarter results demonstrate the extent to which
demand is heightened with comparable sales of 23.9%, and S&P Global
Ratings-adjusted EBITDA margins for the quarter of 32.8% (460 basis
points higher than third-quarter fiscal 2020) with the increase
partly a result of reduced promotional activity.
S&P said, "We now believe the risk of a sponsor-led leveraging
event is remote and expect Leslie's will maintain leverage in line
with its publicly stated target of 3x. Together, the sponsors now
own 36.2% of the public company, reduced from approximately 64%
following Leslie's IPO. We view this as a credit positive because
we associate increased public ownership with a decreased risk of
aggressive financial policy actions, which could include
debt-financed shareholder returns or other leveraging events. As a
result of the ownership changes, we are revising our financial
policy score to neutral from FS-5.
"As a result of this change, we now expect Leslie's will maintain
leverage in line with its publicly stated net leverage target of 3x
or less. As of third-quarter fiscal 2021 net leverage as measured
by the company was around slightly less than 2x, though we
highlight a sizable positive impact from netting cash on the
balance sheet of $309 million. Management has not clearly outlined
plans for the cash, and we do not forecast it to be maintained at
current levels. We believe the company could pursue some
combination of shareholder returns and reinvestment into the
business. We note that our S&P Global Ratings-adjusted credit
metrics include adjustments for the company's operating leases,
which constitute about 22% of adjusted debt. Leslie's has no
near-term debt maturities following a recent extension of its term
loan to 2028 through a refinancing in March 2021.
"We view the company as a leading pool supply retailer, though its
overall scale remains limited and seasonality/weather remains a
factor. Leslie's provides customers with a differentiated
experience through its service offerings, which include free water
testing at all locations. We believe that these services create a
level of customer stickiness that benefits the company and provides
an elevated customer proposition compared to big-box (Wal-Mart
Inc., The Home Depot, and Lowe's) and online (e.g., Amazon Inc.)
retailers. We also note that Leslie's has a competitive online
channel and over half of its products are exclusive, providing a
modest moat against competitive threats."
However, Leslie's is a relatively small niche retailer with $1.3
billion of anticipated total sales for fiscal 2021 and has no
meaningful product diversity with offerings focused in pool and spa
maintenance. Revenues and profits are highly seasonal, with the
third and fourth quarters (ending July and October) comprising 77%
of sales and all of operating profit in fiscal 2020. Given consumer
purchase of pool products is somewhat tied to the level of pool
usage, cold or wet weather conditions can have a negative impact on
performance. Historically this has led to volatility in credit
metrics that we expect to continue.
Environmental, social, and governance (ESG) credit factors for this
credit rating change:
-- Health and safety
The stable outlook reflects S&P's view that Leslie's will maintain
leverage around 3x and funds from operations (FFO) to debt in the
mid-20% area as it retains sales and EBITDA gained in fiscal 2021
due to beneficial shifts in consumer behavior it associates with
the pandemic, including increased residential pool usage and
accelerated residential pool growth.
S&P could raise the rating if:
-- Leslie's significantly expands its scale and diversifies its
revenue base (through growth of commercial and hot tub segments),
while generating positive comparable and maintaining S&P Global
Ratings-adjusted EBITDA margins in the low- to mid-20% area. Under
this scenario S&P would view Leslie's as well-positioned to fend
off long-term competitive threats and grow market share; and
-- S&P expects S&P Global Ratings-adjusted leverage will be
maintained around 3x and FFO to debt in the mid-20% area. An
upgrade would be contingent on Leslie's demonstrating a track
record of commitment to its current financial policy as a newly
public company.
S&P could lower the rating if:
-- S&P expects leverage will increase to the low- to mid-4x area,
with FFO to debt decreasing to the low teens area, and metrics will
be sustained at these levels. This could occur if comparable sales
are significantly negative and margins come under compression.
LEWISBERRY PARTNERS: Taps Walters Appraisal Services as Appraiser
-----------------------------------------------------------------
Lewisberry Partners, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of Pennsylvania to employ Walters
Appraisal Services, Inc. to conduct an appraisal of its residential
real properties in Lewisberry, Pa.
Walters Appraisal Services will be paid a fee of $10,000 for the
appraisal services. Meanwhile, the firm will be paid at hourly
rates ranging from $125 to $285 for additional services, including
testimony.
As disclosed in court filings, Walters Appraisal Services is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Walters Appraisal Services, Inc.
601 N Front St.
Harrisburg, PA 17101
Tel: (717) 234-0540
About Lewisberry Partners LLC
Lewisberry Partners, LLC, a Phoenixville, Pa.-based company engaged
in renting and leasing real estate properties, sought Chapter 11
protection (Bankr. E.D. Pa. Case No. 21-10327) on Feb. 9, 2021,
listing as much as $10 million in both assets and liabilities.
Judge Eric L. Frank oversees the case. Edmond M. George, Esq., at
Obermayer Rebmann Maxwell & Hippel, LLP, is the Debtor's legal
counsel.
LUMEE LLC: Unsecureds to Recover 24% in Liquidating Plan
--------------------------------------------------------
LuMee LLC submitted a Chapter 11 Plan of Liquidation and a
Disclosure Statement on Aug. 18, 2021.
After the Petition Date, LuMee sought and obtained Court approval
to run an auction and sale process for the sale of substantially
all of its assets. After a competitive auction supported by a
stalking horse bidder, the Court on Aug. 28, 2019 approved the
sale of most of LuMee's assets to Case-Mate, Inc. Under the
Case-Mate Sale, Case-Mate purchased most of LuMee's assets
including all of LuMee's intellectual property and tangible
personal property related to the operation of LuMee's business for
the price of $500,000.
After satisfaction of certain secured claims and the compromise of
certain administrative claims, LuMee's remaining assets consisted
of a small amount of cash and certain causes of action under
applicable law and the Bankruptcy Code. The Plan's purpose is to
place LuMee's remaining assets into a Liquidating Trust for the
benefit of the Debtor's creditors. The Liquidating Trust will
pursue the remaining causes of action and distribute the Debtor's
assets to creditors according to the waterfall of priorities in the
Bankruptcy Code and applicable law.
The purpose of the Plan is to establish an efficient mechanism for
promptly and efficiently (a) completing the liquidation of the
remaining assets of the Debtor's Estate in an orderly fashion, (b)
evaluating claims against the Estate and pursuing objections to
claims where appropriate, and (c) distributing the net funds of the
Estate to creditors holding allowed claims.
Class 4 General Unsecured Claims will receive their Pro Rata share
as funds become available in the Distribution Account, subject to
the Liquidating Trustee's discretion. When the bankruptcy case is
closed with the entry of the final decree, the Liquidating Trustee
shall distribute the net amount available in the Distribution
Account pro rata to Holders of Allowed Class 4 Claims. Class 4 is
impaired.
The Plan of Liquidation Cash Analysis projects allowed general
unsecured claims of $2.762 million and an estimated recovery of
24.4% for unsecured claims.
The Plan proposes that Matthew McKinlay, a managing director of CFO
Solutions, LLC d/b/a Ampleo, would serve as the Liquidating Trustee
for the Liquidating Trust and would have overall responsibility for
the liquidation and distributions.
Attorneys for Debtor LuMee LLC:
Brian M. Rothschild
Darren Neilson
PARSONS BEHLE & LATIMER
201 South Main Street, Suite 1800
Salt Lake City, Utah 84111
Telephone: 801.532.1234
Facsimile: 801.536.6111
E-mail: BRothschild@parsonsbehle.com
DNeilson@parsonsbehle.com
ecf@parsonsbehle.com
A copy of the Disclosure Statement dated August 18, 2021, is
available at https://bit.ly/3mo4nqF from PacerMonitor.com.
About LuMee LLC
LuMee LLC -- https://www.lumee.com/ -- designs, manufactures and
sells illuminated smart phone cases and other mobile accessories.
LuMee filed its petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. D. Utah Case No. 19-24752) on June 28,
2019. In the petition signed by Angela Shoemake, president and
chief operating officer, the Debtor was estimated to have $100,000
to $500,000 in assets and $4.2 million in liabilities. The case is
assigned to Judge William T. Thurman. Brian M. Rothschild, Esq.,
at Parsons Behle & Latimer, is the Debtor's counsel.
MATT'S SMALL ENGINE: To Seek Plan Confirmation on Oct. 20
---------------------------------------------------------
Judge Karen K. Specie has entered an order conditionally approving
the Disclosure Statement explaining the Chapter 11 Plan of Matt's
Small Engine Repair LLC.
A Plan confirmation hearing will be held on October 20, 2021, at
01:30 PM, Eastern Time.
Objections to confirmation shall be filed and served 7 days before
the date set and shall be governed by Federal Rules of Bankruptcy
Procedure.
Oct. 13, 2021, is fixed as the last day for filing and serving
written objections to the disclosure statement, and is fixed as the
last day for filing acceptances or rejections of the plan.
About Matt's Small Engine Repair
Matt's Small Engine Repair, LLC, is a Florida corporation limited
liability company owned by its managing member and founder, Matthew
Roberts, along with his wife, Casey Roberts.
Matt's Small Engine Repair filed Chapter 11 petition (Bankr. N.D.
Fla. Case No. 21-40220) on June 22, 2021. At the time of the
filing, the Debtor had between $100,001 and $500,000 in both assets
and liabilities. The Debtor is represented by the Law Office of
Allen Turnage, P.A.
MDVIP LLC: S&P Places 'B' Issuer Credit Rating on Watch Negative
----------------------------------------------------------------
S&P Global Ratings placed all of its ratings on MDVIP LLC,
including its 'B' issuer credit rating and issue-level ratings, on
CreditWatch with negative implications.
The CreditWatch placement follows Goldman Sachs Asset Management
and Charlesbank's recent announcement that they were acquiring the
company for an undisclosed amount. S&P said, "MDVIP's adjusted
leverage is currently 4.0x as of March 31, 2021, and we projected
annual free cash flows of roughly $45 million for full-year 2021.
Following the transaction, we believe adjusted leverage will likely
be significantly higher, and cash flow lower than our current
expectations due to increased interest expense. The company has
also been more aggressive with dividends than we anticipated having
paid $50 million for the nine-months ended March 31, 2021, after
paying $65 million in fiscal 2020. The aggressive financial policy,
uncertain combined impact to cash flows from the expected higher
interest, and potentially weaker credit metrics than we expected
lead to the negative CreditWatch listing."
S&P said, "We expect to resolve the CreditWatch placement once
further details of the transaction and future financial policy are
known. We could lower the rating if adjusted leverage and cash flow
post the transaction are significantly weaker than we previously
anticipated."
MEZZ57TH LLC: Wins Cash Collateral Access Thru Sept. 9
------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York has
authorized Mezz57th LLC to use cash collateral on an interim basis
in accordance with the budget, pending a final hearing on the
Debtor's cash collateral request.
Lawrence F. Flick IV; Saw Investment Fund LLC; and Jeffrey Sellers
have asserted a security interest in the cash collateral pursuant
to these prepetition agreements:
-- a Security Agreement dated March 10, 2019 pursuant to which
the Debtor agree that the Lenders are its secured creditors with
respect to certain obligations, and for which the Lenders are
granted a first lien and security interest in the Debtor's
inventory, accounts receivable, money, and the proceeds thereof;
-- a Promissory Note dated November 1, 2018, pursuant to which
the Debtor owed Mr. Sellers the principal sum of $1,050,720;
-- a Promissory note dated July 15, 2019 evidencing the
Debtor's obligation to Saw Investment for $400,000;
-- a Promissory Note dated May 29, 2019 pursuant to which the
Debtor promised to pay Mr. Flick $500,000 in principal, plus
interest and other amounts stated therein; and
-- a Promissory Note dated September 23, 2019, evidencing the
Debtor's obligation to Mr. Flick for $150,000, plus interest and
other outstanding amounts therein.
The Court ruled that the Lenders are granted replacement liens, in
addition to any existing rights and interests of the Lenders in the
Cash Collateral and to adequately protect the Lenders from
collateral diminution, to the extent that the Lenders' liens in
pre-petition cash collateral were valid, perfected and enforceable
to the extent that collateral diminution occurs during the Chapter
11 case, and without determination as to the nature, extent and
validity of said pre-petition liens and claims. The Replacement
Liens are not currently subject to a "carve out."
As further adequate protection, the Court further ruled that the
claim arising in favor of the Lenders, to the extent of any
diminution in value of Lenders' collateral resulting from the
Debtor's use of Cash Collateral, will have priority in payment over
any of the Debtor's obligations and over all administrative
expenses, except for fees owed to the U.S. Trustee.
The final hearing is scheduled for September 9, 2021 at 10 a.m.
A copy of the order and the Debtor's 13-week budget is available at
https://bit.ly/3zg9mwV from PacerMonitor.com.
The Budget projects $760,764 in total cash receipts and $884,226 in
total disbursements.
About Mezz57th LLC
New York-based Mezz57th LLC, a provider of luxury beauty salon, spa
and related services under the name John Barrett, filed a Chapter
11 petition (Bankr. S.D.N.Y. Case No. 20-11316) on May 29, 2020. In
the petition signed by John Barrett, president and managing member,
the Debtor was estimated to have $1 million to $10 million in both
assets and liabilities.
The Hon. Sean H. Lane oversees the case.
Ballon Stoll Bader & Nadler, P.C., serves as bankruptcy counsel to
the Debtor.
MONTEREY MOUNTAIN: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: Monterey Mountain Property Management, LLC
675 Spencer Street
Monterey, CA 93940-1337
Business Description: Monterey Mountain Property Management
is a Single Asset Real Estate debtor (as
defined in 11 U.S.C. Section 101(51B)).
Chapter 11 Petition Date: August 25, 2021
Court: United States Bankruptcy Court
Northern District of California
Case No.: 21-51127
Judge: Hon. Elaine E. Hammond
Debtor's Counsel: Arasto Farsad, Esq.
FARSAD LAW OFFICE, P.C.
1625 The Alameda, Suite 525
San Jose, CA 95126
Tel: 408-641-9966
E-mail: farsadecf@gmail.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Michael T. Noble as managing member.
The Debtor stated it has no creditors holding unsecured claims.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/XLGFEPY/Monterey_Mountain_Property_Management__canbke-21-51127__0001.0.pdf?mcid=tGE4TAMA
MOUNTAIN PROVINCE: Fitch Affirms 'CCC' IDR, Outlook Negative
------------------------------------------------------------
Fitch Ratings has affirmed Mountain Province Diamonds Inc.'s (MPVD)
Issuer Default Rating (IDR) at 'CCC'. Fitch has also affirmed the
first lien secured revolving credit facility at 'B'/'RR1' and the
second lien senior secured notes at 'CCC'/'RR4'. The Rating Outlook
is Negative.
The Negative Outlook reflects the heightening uncertainty MPVD will
be able to refinance the notes due 2022 in addition to the
operational risk of concentration at a single mine, in which a
potential COVID-19 outbreak could result in having to suspend
mining, which could pressure liquidity.
KEY RATING DRIVERS
Restructuring Likely Required: A default in the next 12-16 months
is a real possibility if MPVD is unable to refinance the notes due
2022. Fitch believes there is heightening uncertainty MPVD will be
able to refinance the notes given the notes will be current with
the next four months with no solution yet in place in addition to
recent defaults in the sector, which may result in lender fatigue
for diamond issuers. Fitch believes MPVD may need to pursue a
destressed debt exchange if alternative financing is unavailable or
not at acceptable terms.
Near-Term Maturities Pressure Liquidity: As of June 30, 2021, MPVD
had cash and cash equivalents of CAD35 million (before repayment of
the CAD25 million of term loan facility obligations due December
2021). TheUSD25 million revolving credit facility due Sept. 30,
2021 is fully drawn. Fitch expects relatively neutral FCF during
normal operations but, given MPVD's relatively small size and
concentration in a single mine, any shortfall in business
performance could exhaust minimal liquidity. Fitch believes Mr.
Dermot Desmond (who owns just over 32% of MPVD's shares and
controls entities that serve as the revolving credit and term loan
lender and hold a significant portion of the notes) will likely
continue to be supportive and work with MPVD to extend the
revolver.
Supportive Significant Shareholder: The coronavirus pandemic
resulted in MPVD suspending its third diamond sale in 2020,
pressuring liquidity. During 2Q20, MPVD entered into an agreement
with Dunebridge Worldwide Ltd., a company controlled by Mr.
Desmond, to sell up to USD50 million of diamonds at prevailing
market prices. Effective November 2020, a new agreement to increase
the value from to USD100 million USD50 million was executed. As of
June 30, 2021, approximately USD49.4 million of diamonds have been
sold under the agreement.
On Sept. 30, 2020, MPVD entered into the Dunebridge revolving
credit facility, which resulted in the assignment of the facility
from the existing lenders to Mr. Desmond. The agreement adjusted
the interest rate to a fixed 5% per annum, payable monthly and
removed certain financial maintenance covenants. The facility
matures Sept. 30, 2021. In 2Q21, MPVD added a USD33 million term
loan facility to the revolving credit facility. As of June 30,
2021, USD20 million remains outstanding on the facility, which
matures Dec. 31, 2021.
Coronavirus Pandemic Creates Uncertainty: Citywide closures in
Antwerp, Belgium, where MPVD sells its diamonds, resulted in the
company postponing its third sale of 2020. Also, a temporary
suspension of mining in 1Q21 to limit the spread of COVID-19
pressured liquidity, resulting in MPVD relying on the Dunebridge
agreements for temporary liquidity. Fitch views the company's
relatively small size, single site operations and minimal liquidity
as a ratings concern, particularly with the uncertainty surrounding
COVID-19.
Stable Production Profile: The Gahcho Kué (GK) mine is located in
Canada's Northwest Territories, a mining-friendly and politically
stable jurisdiction. MPVD has a limited track record with the GK
mine, declaring commercial production on March 1, 2017, but De
Beers Canada, Inc., the majority owner and operator of the GK mine,
has extensive mining history, which helps mitigate risk. MPVD's
small size and limited operating history is also offset by a
relatively long LOM plan, which extends to 2030. All mining at the
GK mine is currently open pit, which also reduces operational risk.
Fitch expects MPVD's share of annual diamond production to average
around 2.8 million carats over the next four years, barring any
unexpected pandemic-related production curtailments.
Strong Margins: MPVD benefits from strong EBITDA margins driven by
relatively high-grade and low-cost mining. Fitch expects solid
margins and manageable capital spending at relatively stable prices
to result in neutral FCF generation on average.
Kennady Provides Potential Flexibility: MPVD completed its
all-share acquisition of Kennady Diamonds Inc., an advanced diamond
exploration project, on April 13, 2018. The acquisition adds 13.62
million carats of indicated resources, 5.02 million carats of
inferred resources and a 100% interest in exploration ground that
strategically surrounds the GK mine. Incorporating Kennady into the
GK joint venture would add operational flexibility and could help
offset a period of relatively low-grade mining at the Tuzo pipe
beginning in 2023. Fitch believes adding Kennady to the LOM plan
would be credit positive, given it provides the opportunity to
extend the mine life and complements the GK mine assets.
DERIVATION SUMMARY
MPVD is significantly smaller than Russian-based leading global
diamond producer PJSC ALROSA (BBB/Stable). ALROSA accounts for more
than 25% of global diamond production and has low cash costs,
robust margins and conservative financial leverage. Gold miner Gran
Colombia Gold Corp. (B/Stable) has favorable leverage metrics, but
lower margins and higher country risk compared with MPVD. MPVD is
significantly smaller than copper producer First Quantum, but has
relatively similar leverage metrics and margins.
KEY ASSUMPTIONS
Fitch's key assumptions within the rating case for the issuer
include:
-- Average diamond selling prices relatively flat over the rating
horizon;
-- Production averages roughly 2.8 million carats per year over
the next four years, declining through 2024;
-- Minimal exploration spending through 2024;
-- No dividends or share repurchases.
KEY RECOVERY RATING ASUMPTIONS
Going-Concern (GC) Approach
The recovery analysis assumes MPVD would be considered a going
concern (GC) in bankruptcy, and the company would be reorganized
rather than liquidated. Assumptions for the GC approach include:
Fitch assumes a bankruptcy scenario exit-GC EBITDA of CAD65
million. The EBITDA estimate is reflective of variable production
levels that tend to fluctuate with kimberlite mix shifts and could
potentially heighten refinancing risk. The EBITDA estimate
incorporates a scenario of material supply chain disruption and
prolonged weakness in the diamond market. The GC EBITDA estimate
also reflects the volatility and unpredictability of diamond
prices.
Fitch applies EBITDA multiples generally ranging from 4x-6x for
mining issuers, given the cyclical nature of commodity prices.
MPVD's 4x multiple is at the low end of the range, reflecting its
short operating history and single-commodity concentration.
Fitch applies a GC EBITDA of CAD65 million and a 4x enterprise
value multiple, which results in an enterprise value of CAD260
million and compares closely with Fitch's estimated liquidation
value. Fitch assumes the revolving credit facility is fully drawn
and a 10% administrative claim in the recovery analysis, which
results in a rating of 'B'/'RR1' for the first lien secured
revolving credit facility and 'CCC'/' RR4' for the second-lien
senior secured notes.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Financing is secured addressing the 2022 notes;
-- Expectation of stronger than expected FCF resulting in
improved liquidity.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Inability to secure financing addressing the 2022 notes in the
next 4-6 months;
-- Material deterioration in liquidity.
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
Minimal Headroom: As of June 30, 2021, MPVD had cash and cash
equivalents of roughly CAD35 million (before repayment of the
remaining CAD25 million outstanding on its term loan facility due
Dec. 30, 2021) and no availability under its fully drawn USD25
million revolver due Sept. 30, 2021. Fitch believes any shortfall
in business performance may quickly exhaust remaining liquidity.
ISSUER PROFILE
MPVD holds a 49% interest in the Gaucho Kue (GK) diamond mine
located in Canada, 51% owned and operated by De Beers Canada. The
GK mine was opened in September 2016 and was completed in June
2017. De Beers has a long operating history and is the second
largest diamond producer globally after PJSC Alrosa.
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.
NEWELL MOWING: Subchapter V Plan Confirmed by Judge
---------------------------------------------------
Judge Elizabeth E. Brown has entered an order confirming the Second
Amended Plan of Reorganization for Small Business Under Subchapter
V of Chapter 11 of The Newell Mowing Co.
The Proponent has transmitted the Plan to creditors and interest
holders. All objections to the Plan have been resolved. Given the
lack of objections and the receipt of affidavit(s) or
declaration(s) in support of confirmation, it is unnecessary to
hold a confirmation hearing.
The Court finds that based on the representations in the
affidavit(s) or declaration(s), the Plan meets the requirements for
confirmation under 11 U.S.C. §§ 1129(a) and 1191(a).
A copy of the Plan Confirmation Order dated August 23, 2021, is
available at https://bit.ly/3kh6gT2 from PacerMonitor.com at no
charge.
Counsel for The Newell Mowing:
BERKEN CLOYES, P.C.
Joshua B. Sheade
1159 Delaware Street
Denver, Colorado 80204
Tel.: (303) 623-4357
Fax: (720) 554-7853
E-mail: joshua@berkencloyes.com
About Newell Mowing
The Newell Mowing Co. filed for Chapter 11 bankruptcy protection
(Bankr. D. Colo. Case No. 20-17988) on Dec. 16, 2020. At the time
of the filing, the Debtor estimated between $100,001 and $500,000
in assets, and between $500,001 and $1 million in liabilities.
Berken Cloyes, P.C., is the Debtor's legal counsel. The Debtor
tapped SL Biggs as its accountant.
NINE POINT ENERGY: Plan Exclusivity Extended Thru October 12
------------------------------------------------------------
At the behest of Nine Point Energy Holdings, Inc. and its
affiliates, Judge Mary F. Walrath of the U.S. Bankruptcy Court for
the District of Delaware extended the period in which the Debtors
may file a Chapter 11 Plan through and including October 12, 2021,
and to solicit acceptances through and including December 13,
2021.
The Debtors continue to manage and operate their business as
debtors-in-possession under sections 1107(a) and 1108 of the
Bankruptcy Code. No trustee or examiner has been appointed in the
Chapter 11 Cases and no committees have been appointed.
The Debtors began these Chapter 11 Cases intending to conduct a
going- concern sale of substantially all of the Debtors' assets.
Following a successful marketing and sale process, the Debtors, as
noted above, obtained the Court's approval of a sale of
substantially all of their assets to the Buyer, which the parties
consummated on August 2, 2021 (the "Closing Date").
Following the Closing Date, the Debtors and other key constituents
in these Chapter 11 Cases will turn their efforts towards
responsibly winding down the estate. To that end, on May 24, 2021,
the Debtors filed the Plan, which provides for the liquidation of
the Debtors' remaining assets following the sale.
The extension of exclusivity periods will impact the Debtors'
efforts to preserve and maximize the value of their estates and the
progress of the Chapter 11 Cases.
A copy of the Debtors' Motion to extend is available at
https://bit.ly/3ycEQ6K from Stretto.com.
A copy of the Court's Extension Order is available at
https://bit.ly/2WoQeyg from Stretto.com.
About Nine Point Energy
Nine Point Energy Holdings, Inc. -- https://ninepointenergy.com/ --
is a private exploration and production company focused on value
creation through the safe, efficient development of oil and gas
assets within the Williston Basin.
Nine Point Energy Holdings, Inc. sought Chapter 11 protection
(Bankr. D. Del. Case No. 21-10570) as the Lead Case, on March 15,
2021. The three affiliates that concurrently filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code are
Nine Point Energy, LLC (Bankr. D. Del. Case No. 21-10571), Foxtrot
Resources, LLC (Bankr. D. Del. Case No. 21-10572), and Leaf
Minerals, LLC (Bankr. D. Del. Case No. 21-10573). The cases are
assigned to Judge Mary F. Walrath.
The Debtors estimated assets and liabilities (on a consolidated
basis) in the range of $100 million to $500 million.
The Debtors tapped as counsel the following: Michael R. Nestor,
Esq. Kara Hammond Coyle, Esq. Ashley E. Jacobs, Esq., and Jacob D.
Morton, Esq., at Young Conaway Stargatt & Taylor, LLP; Richard A.
Levy, Esq., Caroline A. Reckler, Esq., and Jonathan Gordon, Esq.,
at Latham & Watkins LLP; and George A. Davis, Esq., Nacif Taousse,
Esq., Alistair K. Fatheazam, Esq., and Jonathan J. Weichselbaum,
Esq., at Latham & Watkins LLP.
The Debtors engaged AlixPartners LLP as their financial advisor,
Perella Weinberg Partners L.P. as their investment banker, and
Lyons, Benenson & Co., Inc., as their compensation consultant.
NMN HOLDINGS III: S&P Alters Outlook to Negative, Affirms 'B' ICR
-----------------------------------------------------------------
S&P Global Ratings revised the outlook on NMN Holdings III Corp.
(d.b.a. Numotion) to negative from stable. S&P affirmed its 'B'
issuer credit rating and 'B' rating on Numotion's first-lien debt.
The negative outlook reflects that the company's financial metrics,
most notably leverage and cash flow, may remain weaker than our
base-case forecast, especially given the uncertainty from
COVID-19.
S&P said, "Adjusted leverage of about 10x as of the 12 months
ending June 30, 2021, and negative free operating cash flow of
about $11.5 million in the first half of 2021 suggest a higher risk
that the company may not meet our base-case forecast. Such metrics
are weaker than our previous assumptions for the full year of 2021.
While we expect the orders intake to increase for the remainder of
2021 as patients continue demanding Numotion's services in order to
maintain mobility, we believe the uncertainty of COVID-19 as cases
increase and the delta variant spreads may still impair order
volume and the company's ability to fulfill the backlog. Resources
such as Numotion's assistive technology professionals (ATPs) and
supply chain can potentially be hurt by the pandemic. We now expect
the company's S&P Global Ratings' adjusted leverage of 8x-9x as of
the end of 2021 and its free operating cash flow to break even for
the full year."
In the 12 months ended June 30, 2021, the company reported revenue
of about $590 million, a decline of about 4% compared to the same
period last year, and almost flat compared to 2020 full year. The
revenue decline was due to reduced order intake early in the first
quarter from the impact of COVID-19. Adjusted EBITDA margin for the
12 months ended June 30, 2021 declined by about 200 basis points
from the prior year. Gross margin declined because of volume
reduction and operating expenses increased because of reversal of
various cost-containment actions to serve increasing orders
following the partial reopening from COVID.
S&P said, "We continue to believe industry dynamics are generally
favorable, with growth supported by an aging population and the
nondiscretionary nature of the company's products. Numotion is one
of the largest players in the U.S. complex rehabilitation
technology (CRT) market, with revenues of approximately $590
million for the 12 months ended June 30, 2021. In addition, the
company benefits from generally favorable secular trends, including
an aging population and increasing awareness among the currently
large market of patients who are not using CRT solutions. We view
these products as nondiscretionary for patients with permanent
mobility disabilities, as they are critical for long-term health
and mobility." Also, more than half of Numotion's total revenues
are from replacement wheelchairs and repair services, which
provides some visibility regarding its revenue and cash-flow
generation. Management has also automated some of its processes in
the value chain, which has helped it lower its product lifecycle
time to about 75 days from 90 days, which is lower than the
industry average.
The negative outlook reflects prospects that the company's
financial metrics, most notably leverage and cash flow, may remain
weaker than our base-case forecast, especially given the
uncertainty from COVID-19.
S&P said, "We could lower the rating if the company sustains
leverage above 8x and reported free operating cash flow below $10
million.
"We could revise the outlook back to stable if we believe that the
company's operational performance improves with volume increase and
sufficient ATP counts to support those order intakes, such that
adjusted EBITDA margin improves by about 150 basis points back to
pre-pandemic level. At that level, we would expect Numotion to
sustain S&P Global Ratings' adjusted leverage below 8x. We also
expect reported free operating cash flow of at least $10
million-$15 million in 2022, with our belief that it will continue
to increase and achieve a sustainable level closer to about $20
million thereafter."
NXT ENERGY: Posts C$1.5 Million Net Income in Second Quarter
------------------------------------------------------------
NXT Energy Solutions Inc. reported net income and comprehensive
income of C$1.53 million on C$3.14 million of revenue for the three
months ended June 30, 2021, compared to a net loss and
comprehensive loss of C$1.48 million on C$136,566 of revenue for
the three months ended June 30, 2020.
For the six months ended June 30, 2021, the Company reported a net
loss and comprehensive loss of C$110,345 on C$3.14 million of
revenue compared to a net loss and comprehensive loss of C$2.81
million on C$136,566 of revenue for the six months ended June 30,
2020.
As of June 30, 2021, the Company had C$24.82 million in total
assets, C$3.90 million in total liabilities, and C$20.92 million in
shareholders' equity.
A full-text copy of the Form 6-K as filed with the Securities and
Exchange Commission is available for free at:
https://www.sec.gov/Archives/edgar/data/1009922/000165495421009117/nsfdf_ex991.htm
About NXT Energy
NXT Energy Solutions Inc. is a Calgary-based technology company
whose proprietary SFD survey system utilizes quantum-scale sensors
to detect gravity field perturbations in an airborne survey method
which can be used both onshore and offshore to remotely identify
areas with exploration potential for traps and reservoirs. The SFD
survey system enables the Company's clients to focus their
hydrocarbon exploration decisions concerning land commitments, data
acquisition expenditures and prospect prioritization on areas with
the greatest potential. SFD is environmentally friendly and
unaffected by ground security issues or difficult terrain and is
the registered trademark of NXT Energy Solutions Inc. NXT Energy
Solutions Inc. provides its clients with an effective and reliable
method to reduce time, costs, and risks related to exploration.
NXT Energy reported a net loss and comprehensive loss of C$5.99
million for the year ended Dec. 31, 2020. As of Dec. 31, 2020, the
Company had C$24.01 million in total assets, C$3.26 million in
total liabilities, and C$20.75 million in shareholders' equity.
Calgary, Canada-based KPMG LLP, the Company's auditor since 2006,
issued a "going concern" qualification in its report dated March
30, 2021, citing that the Company's current and forecasted cash and
cash equivalents and short-term investments position is not
expected to be sufficient to meet its obligations that raises
substantial doubt about its ability to continue as a going concern.
OFFCAMBER LLC: Seeks to Hire Levene Neale as Bankruptcy Counsel
---------------------------------------------------------------
Offcamber, LLC seeks approval from the U.S. Bankruptcy Court for
the Southern District of California to employ Levene, Neale,
Bender, Yoo & Brill, LLP to serve as legal counsel in its Chapter
11 case.
The firm's services include:
(a) advising the Debtor regarding the requirements of the
Bankruptcy Court, Bankruptcy Code, Bankruptcy Rules and the Office
of the U.S. Trustee;
(b) advising the Debtor with regard to certain rights and
remedies of its bankruptcy estate and the rights, claims and
interests of creditors;
(c) representing the Debtor in any proceeding or hearing in
the bankruptcy court involving its estate unless the Debtor is
represented by special counsel;
(d) conducting examinations of witnesses, claimants or adverse
parties and representing the Debtor in adversary proceedings except
to the extent that such proceedings are in an area outside of the
firm's expertise or which are beyond the firm's staffing
capabilities;
(e) assisting the Debtor in the preparation of legal papers;
(f) assisting the Debtor in seeking approval to get
debtor-in-possession financing and use cash collateral;
(g) assisting the Debtor in the negotiation, formulation,
preparation and confirmation of a plan of reorganization; and
(h) performing other necessary legal services.
David Golubchik, Esq., and Jeffrey Kwong, Esq., the primary
attorneys who will be handling the case, will charge $635 per hour
and $525 per hour, respectively.
Mr. Golubchik disclosed in court filings that his firm is a
"disinterested person" as defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
David B. Golubchik, Esq.
Levene, Neale, Bender, Yoo & Brill, LLP
10250 Constellation Blvd., Ste. 1700
Los Angeles, CA 90067
Telephone: (310) 229-1234
Facsimile: (310) 229-1244
Email: dbg@lnbyb.com
About Offcamber LLC
Offcamber, LLC filed a voluntary petition for Chapter 11 protection
(Bankr. S.D. Calif. Case No. 21-03262) on Aug. 11, 2021, listing up
to $10 million in assets and up to $50,000 in liabilities. Judge
Margaret M. Mann presides over the case. Levene, Neale, Bender,
Yoo & Brill, LLP represents the Debtor as legal counsel.
OLCAN PROPERTIES: Seeks to Hire Marc R. Kivitz as Legal Counsel
---------------------------------------------------------------
Olcan Properties III, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Maryland to employ the Law Office of Marc
R. Kivitz to serve as legal counsel in its Chapter 11 case.
The firm's services include:
a. advising the Debtor with respect to its powers and duties in
its continued and future financial affairs;
b. representing the Debtor in the prosecution and defense of any
proceeding instituted to reclaim property or to obtain relief from
stay of Section 362(a) of the Bankruptcy Code;
c. preparing legal documents and appearing in proceedings
instituted by or against the Debtor;
d. assisting the Debtor in the preparation of bankruptcy
schedules, statement of financial affairs, statement of executory
contracts, and any amendments thereto; and
e. representing the Debtor in its dealings with creditors.
Marc Kivitz, Esq., the firm's attorney who will be providing the
services, will be paid at his hourly rate of $500.
The firm will be paid a retainer of $15,000 and reimbursed for
out-of-pocket expenses incurred.
As disclosed in court filings, the Law Office of Marc R. Kivitz is
a "disinterested person" as the term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached at:
Marc R. Kivitz, Esq.
Law Office of Marc R. Kivitz
201 North Charles Street, Suite 1330
Baltimore, MD 21201
Tel: (410) 625-2300
Fax: (410) 576-0140
Email: mkivitz@aol.com
About Olcan Properties III
Olcan Properties III, LLC filed a Chapter 11 bankruptcy petition
(Bankr. D. Md. Case No. 21-15323) on Aug. 18, 2021, disclosing $1
million in assets and $500,000 in liabilities. The Debtor is
represented by the Law Office of Marc R. Kivitz.
ORIGINCLEAR INC: Sells $250K Worth of Securities
------------------------------------------------
OriginClear, Inc. issued and sold to an accredited investor an
aggregate of 25 shares of newly created Series X Preferred Stock
and 1,798,562 shares of common stock, for an aggregate purchase
price of $250,000, pursuant to a subscription agreement between the
Company and the investor.
Exchange of Preferred Shares
Between Aug. 6, 2021 and Aug. 9, 2021, holders of the Company's
Series K Preferred Stock exchanged an aggregate of 283 shares of
Series K Preferred Stock for an aggregate of 283 shares of the
Company's Series W Preferred Stock.
Restricted Stock Grant Agreement Issuances
On Aug. 2, 2021, per electing and qualifying for the Restricted
Stock Grant Agreement alternate vesting schedule, the Company
issued to a consultant an aggregate of 768,017 shares of the
Company's common stock.
Consultant Issuances
Between Aug. 10, 2021 and Aug. 13, 2021, the Company issued to
consultants an aggregate of 345,865 shares of the Company's common
stock for services including 170,865 shares of common stock for
settlement of prior consulting agreement.
On Aug. 10, 2021, the Company filed a certificate of designation of
Series X Preferred Stock with the Secretary of State of Nevada.
Pursuant to the Series X COD, the Company designated 25 shares of
preferred stock as Series X. The Series X has a stated value of
$10,000 per share. The Series X holders will not be entitled to
dividends or any voting rights except as may be required by
applicable law. The Series X will be convertible into common stock
of the Company pursuant to the Series X COD, provided that, the
Series X may not be converted into common stock to the extent such
conversion would result in the holder beneficially owning more than
4.99% of the Company's outstanding common stock (which amount may
be increased up to 9.99% upon 61 days' written notice). Beginning
on the one year anniversary of the subscription agreement for the
Series X Preferred Stock, until the two year anniversary of the
subscription agreement, the holder will have the right to require
the Company to redeem all of the Series X purchased by the
subscriber at a price equal to 125% of the $250,000 original
purchase price, or $312,500. The holder will also have the right,
exercisable at any time, to require the Company to redeem all of
the holder's Series X in exchange for the issuance of shares of the
Company's common stock in an amount equal to 250% of the original
$250,000 purchase price, or $625,000, divided by the closing price
of the Company's common stock as of the date the holder executed
the subscription agreement.
About OriginClear
Headquartered in Clearwater, Florida, OriginClear --
www.originclear.tech -- is a water technology company which has
developed in-depth capabilities over its 14-year lifespan. Those
technology capabilities have now been organized under the umbrella
of OriginClear Tech Group.
OriginClear reported net income of $13.26 million for the year
ended Dec. 31, 2020, compared to a net loss of $27.47 million for
the year ended Dec. 31, 2019. As of March 31, 2021, the Company
had $2.09 million in total assets, $39.52 million in total
liabilities, $7.73 million in commitments and contingencies, and a
total shareholders' deficit of $45.17 million.
Houston, Texas-based M&K CPAS, PLLC, the Company's auditor since
2019, issued a "going concern" qualification in its report dated
May 21, 2021, citing that the Company suffered a net loss from
operations and has a net capital deficiency, which raises
substantial doubt about its ability to continue as a going concern.
PLAQUEMINE BAYOU: Bayou Parke Sold; Liquidating Plan Filed
----------------------------------------------------------
Plaquemine Bayou Parke, LLC, submitted a Plan of Liquidation and a
Disclosure Statement on Aug. 18, 2021.
The Debtor owned and operated a shopping center known as Bayou
Parke in Plaquemine, LA. To acquire Bayou Parke, the Debtor
borrowed $1.1 million from Home Bank.
The Debtor determined the best path forward for all constituencies
was the sale of its shopping center. On Feb. 18, 2021, the Debtor
accepted an offer in the amount of $1,805,000 subject to a closing
credit for construction costs of $156,000. Following a sale
hearing on June 9, 2021, the Bankruptcy Court approved the sale of
the property to the purchaser.
On July 7, 2021, the closing of Bayou Parke occurred. From the
proceeds of the sale, the Debtor paid Home Bank $1,403,164, Fishman
Haygood, LLC $45,000, UST Fees $11,000, and other closing costs,
leaving a balance of sale proceeds in the amount of $126,309.
The Plan provides for the treatment of Claims and Interests as
follows:
* The Allowed Home Bank Claim will be paid before the Effective
Date;
* To the extent they have valid and enforceable Liens, holders
of Allowed Other Secured Claims will be paid any remaining net sale
proceeds of Bayou Park and Cash on hand on the Effective Date in
order of the priority and rank of each holder's Lien against the
Debtor's assets;
* Allowed General Unsecured Claims will receive their pro rata
share of any remaining net sale proceeds of Bayou Parke and the
Debtor's Cash after payment of Allowed Administrative Claims,
Priority Tax Claims, Class 1 and Class 2;
* Allowed Interests, i.e., its members, will not retain their
Interests in the Debtor.
Attorneys for Plaquemine Bayou Parke, LLC:
Tristan Manthey
Cherie Dessauer Nobles
201 St. Charles Avenue, Suite 4600
New Orleans, Louisiana 70170-4600
Telephone: 504-586-5252
Fax: 504-586-5250
E-mail: tmanthey@fishmanhaygood.com
E-mail: cnobles@fishmanhaygood.com
A copy of the Disclosure Statement dated August 18, 2021, is
available at https://bit.ly/2W2ohg7 from PacerMonitor.com.
About Plaquemine Bayou Parke
Plaquemine Bayou Parke, L.L.C., owned and operated a shopping
center complex located in Plaquemine, Louisiana. It classifies its
business as single asset real estate (as defined in 11 U.S.C.
Section 101(51B)).
Plaquemine Bayou sought protection under Chapter 11 of the U.S.
Bankruptcy Court (Bankr. M.D. La. Case No. 20-10623) on Sept. 2,
2020. In the petition signed by Michael D. Kimble, authorized
representative, the Debtor disclosed up to $10 million in assets
and liabilities of the same range.
The case is assigned to Judge Douglas D. Dodd.
Tristan Manthey, Esq., at Heller, Draper, Patrick, Horn & Manthey,
LLC, serves as the Debtor's legal counsel and Dowd Commercial Real
Estate, Inc. and Latter & Blum, Inc. as its real estate brokers.
PSG MORTGAGE: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: PSG Mortgage Lending Corp., a Delaware Corporation
16441 Scientific Ste 250
Irvine, CA 92618
Chapter 11 Petition Date: August 25, 2021
Court: United States Bankruptcy Court
Northern District of California
Case No.: 21-30592
Debtor's Counsel: Julian Bach, Esq.
LAW OFFICE OF JULIAN BACH
7911 Warner Avenue
Huntington Beach, CA 92647
Tel: 714-848-5085
E-mail: Julian@jbachlaw.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Philip Fusco as chief executive
officer.
The Debtor stated it has no creditors holding unsecured claims.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/MCB56HQ/PSG_Mortgage_Lending_Corp_a_Delaware__canbke-21-30592__0001.0.pdf?mcid=tGE4TAMA
PURDUE PHARMA: Judge Says Family Faces Huge Liability Risk
----------------------------------------------------------
Maria Chutchian of Reuters reports that the judge overseeing Purdue
Pharma's bankruptcy said on Monday, August 23, 2021, that some
members of the Sackler family who own the OxyContin maker face a
"substantial risk" of liability and could be on the hook for "huge
amounts of money" over claims the company fueled the opioid
epidemic.
U.S. Bankruptcy Judge Robert Drain in White Plains, New York, made
the remark during closing arguments in a trial over Purdue's
proposed reorganization plan.
"I think there is substantial risk that the Sacklers, or some of
them, could be liable for huge amounts of money," said Drain, who
added that "the question is where you draw the line."
Under the deal, which Purdue says is worth more than $10 billion,
the Sacklers would contribute about $4.5 billion and receive legal
protections against future opioid-related litigation.
Judge Drain did not explicitly state which way he will rule but
suggested he finds the deal was sufficient. But he urged lawyers
for the Sacklers and the nine states that oppose the deal to
continue settlement talks over the next couple of days.
More than 500,000 Americans have died since 1999 from opioid
overdoses, according to the U.S. Centers for Disease Control and
Prevention.
Judge Drain told Assistant U.S. Attorney Lawrence Fogelman that it
would be "boneheaded" to reject billions of dollars from the
Sacklers just because it is not enough to solve the entire U.S.
opioid crisis.
The judge is expected to issue a formal ruling on the deal this
fourth week of August 2021.
The money would go toward various entities and private individuals
with opioid claims, as well as state and local opioid abatement
programs.
Critics of the settlement argue that the liability releases are too
broad.
An attorney representing the states of Washington and Oregon, which
oppose the plan, told Drain on Monday that approving the deal would
be a "historic mistake."
The judge also stated that appeals courts generally support the
types of releases the Sacklers would receive if they meet certain
standards.
At the outset of Monday’s hearing, a lawyer for the Sacklers said
they had agreed to narrow the litigation releases to exclude
protections for the family against non-opioid-related claims.
But the crux of the releases, shielding the Sacklers against
opioid-related litigation, remains intact.
During testimony during the third week of August 2021, members of
the Sackler family said they would not contribute if they do not
receive the releases.
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: Judge Urges Co. to Settle Differences in Chapter 11
------------------------------------------------------------------
Law360 reports that the New York bankruptcy judge overseeing Purdue
Pharma's bankruptcy on Monday, August 23, 2021, urged the objecting
states and the owning members of the Sackler family to settle their
differences before the confirmation hearing resumes Wednesday. At
the close of a nearly eight-hour virtual hearing that saw Purdue
slightly narrow the legal releases the plan would grant the
Sacklers -- a sticking point for nine states that remain opposed to
the plan -- U. S. Bankruptcy Judge Robert Drain said both the
objecting states and the Sacklers should look at the risks.
Bloomberg earlier reported that lawyers for Purdue Pharma LP,
seeking to soothe concerns of a bankruptcy judge, narrowed the
legal protections for the Sackler family included in the
drugmaker's proposed settlement of trillions of dollars in opioid
claims.
The pharmaceutical company 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.
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: Lawyer Warns of Long, Costly Litigation
------------------------------------------------------
Geoff Mulvimill of The Associated Press reports that a lawyer for
Purdue Pharma said Monday, August 24, 2021, that a judge needs to
accept the OxyContin maker’s plan to settle thousands of lawsuits
over the opioid epidemic or face "years or decades of Hobbesian
hell" with complicated litigation that would not result in fair
payouts to abate the epidemic or pay individual victims.
Marshall Huebner, a lawyer for Purdue, made his case during an
ongoing videoconference hearing to U.S. Bankruptcy Judge Robert
Drain, who expects to rule this week on whether to accept the
Stamford, Connecticut-based company's reorganization plan.
State and local governments and individual victims who cast ballots
on the plan supported it overwhelmingly. But nine states, the
District of Columbia, the city of Seattle and the U.S. Bankruptcy
Trustee are fighting the plan because it would protect members of
the Sackler family who own the company from future lawsuits over
opioids.
Mr. Huebner said that allowing suits to go ahead against members of
the wealthy family "would be a fight that would be long,
hard-fought, uncertain and incredibly expensive."
And if some places won billions in judgments against family
members, Huebner said, that could leave nothing for the rest of the
U.S.
He also noted that suing Sackler families is complicated. The
family is stretched across the world, with some assets held in
foreign trusts. And many family members have never been involved
with Purdue.
In exchange for the legal protections, family members would
contribute a total of $4.5 billion in cash and control of a
charitable fund. They would give up ownership of Purdue, and the
company would be reformed into a new entity with its profits going
to fight the epidemic and pay victims and their families.
Most of the funds sent to government entities would have to be used
to combat opioids via projects such as connecting people with
treatment programs, and opioid use prevention. And most people with
claims that are found valid are expected to receive between $3,500
and $48,000.
The company would also make public millions of internal documents,
including communications with its lawyers. And the Sacklers would
have to get out of the opioid business in other countries
eventually.
Irve Goldman, a lawyer representing the state of Connecticut,
argued that states' rights would be violated if a settlement is
adopted without their agreement.
Judge Drain, who had far more questions for those opposing the plan
than supporting it asked what would happen if just one state or
city were left objecting. "Do you still say that the whole thing
should be put aside for that creditors' rights?" he asked.
Mr. Goldman said that was a difficult question, but that there's an
overriding concern about the Sacklers getting protections from
suits: "If the plan is confirmed, they would have gotten every bit
of protection and more than they would have received in their own
bankruptcies," he said — but without the "rigors" of going
through bankruptcy themselves.
Some parties in the cases also agreed Monday to changes in the
details of the settlement.
While members of the Sackler would still be protected from lawsuits
related to opioids, they would be allowed to face litigation over
other Purdue products and actions. Also, contractors and advisers
would no longer receive protections from certain civil claims over
opioids, which have been linked to more than 500,000 deaths in the
U.S. since 2000.
After testimony wrapped up last week in the confirmation hearing,
Drain — a veteran bankruptcy judge based in White Plains, New
York — said it's the most complex case he has ever presided over.
Before abruptly ending testimony as he appeared to cry, he said
wasn't going to forget a different kind of voice in the case: that
of victims.
He mentioned the letters he has received from some of them.
One, Stephanie Lubinski, said described how her husband Troy, a
former Minneapolis firefighter, dealt with years of addiction
before killing himself in 2020. She said it began when he was
prescribed OxyContin for a back injury. "That was the beginning of
the end for Troy," she wrote.
"I am just a small fish in this ocean of devastation the Sackler
family has caused with their greed," she wrote. "They increased
their opulent wealth, beyond anything that a blue collar worker
like myself would ever imagine. Yet, my family paid the ultimate
price for them to get that wealth."
Victims of the crisis were also given four of the nine seats on a
key committee of unsecured creditors in the case. In arguing for
acceptance of the deal, the committee's lawyer, Aric Preis, on
Monday spoke of one of those members, Cheryl Juaire, a
Massachusetts woman with two sons who have died of opioid
overdoses, including one this 2021.
"One family, two opioid deaths, three children being raised without
fathers," Preis said. But he said that Juaire is supporting the
plan because she "agrees it's time to move on, time to stop chasing
and time to start abating the crisis."
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.
QUAD/GRAPHICS INC: S&P Alters Outlook to Positive, Affirms 'B' ICR
------------------------------------------------------------------
S&P Global Ratings revised its rating outlook to positive from
stable and affirmed its 'B' issuer credit rating on Sussex,
Wis.-based commercial printer, Quad/Graphics Inc.
S&P said, "At the same time, we affirmed our 'B' issue-level
rating, with a '3' recovery rating, on the company's secured debt
and 'CCC+' issue-level rating, with a '6' recovery rating, on its
unsecured notes.
"The outlook revision reflects that we could raise our ratings on
Quad to 'B+' once we are more certain the company will be able to
consistently maintain leverage below 4.0x, free operating cash flow
(FOCF) to debt greater than 10%, repay or refinance its senior
unsecured notes maturing in May 2022, and maintain a more than 15%
cushion on its leverage covenant."
Cost-management initiatives, asset sales, and debt repayment have
helped the company lower its leverage. Quad lowered its S&P Global
Ratings' adjusted leverage by almost 1.1x from 4.9x as of March
2020 to about 3.8x as of June 2021. The de-leveraging was driven by
a combination of debt paydowns and improving operating performance
in the first half of 2021 especially compared to a weak 2020 due to
the COVID-19-related economic slowdown. The company executed
restructuring initiatives to reduce costs over the past 12-18
months and this year has reduced its one-time and restructuring
costs compared to prior years. Furthermore, it pursued asset sales
utilizing the proceeds to make additional voluntary debt paydowns.
As a result, despite a modest revenue growth in the 1% to 3% range
in 2021, we expect the company's EBITDA margin to improve to about
8.5%-9% in 2021, which should support its leverage to remain in the
3.6x to 3.8x area in 2021. Notwithstanding, the commercial printing
industry is highly competitive and faces a secular decline in
volumes printed. Although S&P expects the macroeconomic environment
to be broadly supportive as U.S. and other parts of the world
recover from the COVID-driven economic recession in 2020, with
virus variants and infections on the rise, the company remains
somewhat vulnerable to economic slowdown, which could pressure
EBITDA margins and increase leverage.
S&P said, "Cash on hand and the company's revolving credit facility
availability should allow for the repayment of maturing debt, but
its covenant cushion could remain somewhat tight once the
covenant-relief period ends. We expect that Quad will be able to
repay its $238.7 million senior unsecured notes upon maturity in
May 2022 using its cash on hand and revolving credit facility
availability. As of June 2021, Quad had approximately $98 million
of cash on its balance sheet and full availability of its revolving
credit facility, which is well above the $300 million minimum
liquidity covenant imposed by the revolver. Although, we expect its
EBITDA cushion on its 3.75x total leverage covenant could tighten
below 15% once the current relief period ends after Sept. 31,
2021."
Secular declines in the commercial printing industry could continue
to pressure EBITDA margin. Quad's customers faced significant
disruption during 2020 stemming from the fallout from the COVID-19
pandemic, which hurt the company's volumes, thereby causing
significant revenue erosion. S&P said, "While we expect the economy
to revive in 2021, we do not expect the company's volumes to return
to pre-COVID levels because the pandemic has accelerated the shift
of consumer to digital media formats. We believe the company has
benefited somewhat from the operational challenges faced by its key
competitors, winning over incremental new customers in the first
half of 2021. Notwithstanding the company participates in a
competitive industry with significant overcapacity, facing secular
declines and increasing commodity and postal costs, which could
pressure margins over time. Still, we expect Quad's adjusted EBITDA
margins in 2021 to improve to about 9% due to lower restructuring
costs and from the cost-management initiatives undertaken during
the past 12-16 months."
The positive outlook reflects that S&P could raise its ratings on
Quad to 'B+' from 'B' once it is more certain the company will be
able to consistently maintain leverage below 4.0x, FOCF to debt
greater than 10%, repay or refinance its senior unsecured notes
maturing in May 2022 and maintain a more than 15% cushion on its
leverage covenant.
S&P could raise its rating over the next 12 months if:
-- S&P expects Quad will continue to maintain adjusted leverage
below 4.0x while keeping FOCF to debt of at least 10% on a
sustained basis;
-- The company's covenant cushion against its total leverage ratio
covenant rises and stays above 15%; and
-- The company continues to exhibit steady operating performance
regardless of the overall economic environment given downside risks
stemming from the fallout from the pandemic.
S&P could revise its outlook to stable under the following
scenarios:
-- Quad's operating performance declines over the next 12 months,
raising its adjusted leverage to above 4.0x;
-- The company's covenant cushion continues to remain tight, below
15% for a prolonged period; and
-- Quad pursues a more aggressive financial policy that includes
material debt-financed acquisitions and/or shareholder
distributions that would keep adjusted leverage above the 4.0x
threshold.
RESORTS WORLD: S&P Lowers LongTerm ICR to 'BB+', Outlook Stable
---------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer ratings on Genting
Bhd. (GENT) to 'BBB-' from 'BBB', Genting Malaysia Bhd. (GENM) to
'BBB-' from 'BBB', Resorts World Las Vegas LLC (RWLV) to 'BB+' from
'BBB-', and Genting New York LLC (GENNY) to 'BB+' from 'BBB-'. S&P
also lowered its issue rating on GENM to 'BBB-' from 'BBB', senior
unsecured rating on RWLV to 'BB' from 'BBB-', and senior unsecured
rating on GENNY to 'BB+' from 'BBB-'. At the same time, S&P
affirmed its 'BBB-' ratings on RWLV's senior secured revolving
facility and term loans. S&P also revised GENM's stand-alone credit
profile to 'bb' from 'bb+'.
The stable outlook on Genting group companies reflects S&P's
expectation that the group's credit quality will stabilize,
following the completion of a major investment cycle, while an
operational recovery takes shape over the next two years as
vaccination rates increase in its key markets.
S&P expects a slower recovery in key credit metrics at GENT,
stemming from weaker performance in Malaysia.
The slower-than-anticipated recovery hinges on continued travel and
social restrictions in Southeast Asia, mainly Malaysia, and as a
result, GENM's principal asset, Resorts World Genting (RWG), has
been closed since May 2021. Given the ongoing uncertainties
surrounding the delta variant and a slower-than-expected
operational recovery in the region, S&P now expects Genting group
companies' EBITDA to reach pre-pandemic levels only in 2023, from
the previous 2022. S&P said, "In our view, GENT's elevated debt
levels and slower recovery have weakened its financial profile, as
we forecast the group's debt to EBITDA to remain 6.0x-6.2x in 2021
and 3.1x-3.3x in 2022, and funds from operations (FFO) to debt of
19%-21% in 2022 and 26%-28% in 2023, which are beyond the threshold
for the previous 'BBB' rating. Similarly, we forecast GENM's debt
to EBITDA to sustain at higher levels above 4x through 2022,
resulting in a lower stand-alone financial profile."
Meanwhile, U.S. assets have quickly recovered, and S&P expects
earnings from RWLV to meaningfully contribute from 2022.
S&P said, "In our view, the better-than-expected recovery of GENNY
and ramp up of RWLV is inadequate to mitigate GENT's weakened
Southeast Asian operations. With the normalization of operating
hours effective April 5, 2021, we expect GENNY's operating
performance in the first half of 2021 to strongly recover to
pre-pandemic levels. Despite our expectation of a strong recovery,
the downward revision of the issuer credit rating of GENNY reflects
that on the Genting group. Separately, following RWLV's opening of
its integrated resort in June 2021, operations have been profitable
with visitation numbers in Las Vegas sharply up toward pre-pandemic
levels. As of June 2021, visitations in Las Vegas jumped around
180% year on year, reaching 82% of pre-pandemic June 2019 levels.
Hotel occupancy rates also improved to 75.9%, which compares with
June 2020's 41% and a pre-pandemic 91.7%. By 2022, we expect RWLV
to contribute 18%, or US$180 million, EBITDA to the group.
"GENT's investment cycle peaked in 2021 and will sharply decline in
2022. We expect GENT's high capital expenditure (capex) over the
past three years to come to an end with the completion of a land
purchase in Singapore, a theme park in Genting Highlands, and an
expansion project at GENNY. From our expectation of Malaysian
ringgit (MYR) 8 billion-MYR9 billion in 2021, we forecast annual
capex to more than halve to MYR3 billion-MYR3.5 billion over the
next two years. Meanwhile, the committed Singapore dollar (S$) 4.5
billion expansion project at Genting Singapore is ongoing, but we
still expect GENT to generate positive free cash flow from 2022,
based on our earnings trajectory and lowered group capex.
Separately, we don't expect the group's asset disposal efforts,
such as its noncore assets in the U.K., to meaningfully reduce its
leverage."
The ratings on GENM, RWLV, and GENNY are tied to those on GENT.
S&P said, "We continue to believe GENT will provide strong
long-term support to these group companies, even under stressed
conditions. This is mainly due to their strategic importance to the
group's branding ("Resorts World" and "Genting"), and operations.
"We assess GENM to be a core subsidiary of GENT because we believe
it is integral to the group's business and strategy. We assess RWLV
and GENNY as highly strategic subsidiaries owing to their strategic
importance to the group's expansion strategy in the U.S. GENNY and
RWLV's less significant EBITDA contribution to the group limit
their group status when compared with GENM. However, we believe
GENNY and RWLV will receive support under almost all foreseeable
circumstances because any financial distress in these companies
will have significant implications for Genting group's reputation
and global standing with gaming regulators.
"The stable outlook on GENT reflects our expectation that the
company's credit quality will stabilize, following the completion
of a major investment cycle, while an operational recovery takes
shape over the next two years. This is despite the group's delayed
recovery in its operations from the pandemic. We expect Genting's
FFO to debt to improve to above 20% over the next two years."
The stable outlooks on GENM, RWLV, and GENNY reflect that on GENT.
S&P said, "We may lower the rating on GENT if the group's leverage
deteriorates such that FFO to debt remains below 20%, or debt to
EBITDA remains above 4x for a prolonged period. This could happen
if: (1) GENT's market position declines; (2) COVID-19 related
closures or capacity constraints are longer than we expect; (3)
RWLV's operational ramp up is slower than our expectations; or (4)
Genting pursues other aggressive debt-funded capex or
acquisitions.
"We may lower the rating on GENM if we downgrade GENT. We could
also lower the rating on GENM if we detect signs of any reduction
in the company's importance to its parent. We may lower our
stand-alone credit profile (SACP) on GENM if we do not expect the
company's FFO to debt to sustain above 12%, or debt to EBITDA
remains under 5x for a prolonged period. This could happen if: (1)
GENM's market position deteriorates; (2) COVID-19 related closures
or capacity constraints are longer than we expect; or (3) GENM
pursues aggressive debt-funded capex or acquisitions.
"We may lower the ratings on RWLV and GENNY if we downgrade GENT.
We could also lower the ratings if we detect signs of any reduction
in RWLV's or GENNY's importance to GENT.
"We may raise the rating on GENT if the group deleverages faster
than we expect such that FFO to debt rises above 30%, and debt to
EBITDA falls below 3x for a sustained period. This could happen if:
(1) Genting's operations show a sharper recovery following
COVID-19, (2) the company maintains a prudent financial policy to
limit sizeable investments, or (3) the company shows a track record
of reducing debt using free cash flow.
"We may raise the rating on GENM if we do the same for GENT. We may
revise GENM's SACP upward if we see a sustained recovery in the
company's operations in Malaysia as well as strong and sustained
positive cash flow from the U.S. operations. This could happen in
the event of: (1) a sharp recovery in earnings; (2) a sustained
recovery in the U.S. with meaningful earnings contribution to GENM;
and (3) GENM maintaining a prudent financial policy."
S&P may raise the ratings on RWLV and GENNY if it upgraded GENT.
Genting Bhd. is the parent and managing entity of the Genting
group, with leisure and hospitality contributing 85%-90% of EBITDA
in pre-pandemic years. The group's two key assets are Resorts World
Genting, a sole gaming operator in Malaysia, and Resorts World
Sentosa, the number two gaming operator in Singapore's duopoly
market. The group launched the US$4.3 billion Resorts World Las
Vegas integrated resort in June 2021, acquired a 49% stake in
Empire Resorts Inc. in 2019, and wholly owns Genting New York LLC
through Genting Malaysia Bhd. Besides its gaming business, the
group also has a minority exposure to plantation, energy, and other
investments.
RESTAURANTE LA LIBERTAD: Taps Shafferman & Feldman as Legal Counsel
-------------------------------------------------------------------
Restaurante La Libertad, Corp. received approval from the U.S.
Bankruptcy Court for the Southern District of New York to hire
Shafferman & Feldman, LLP to serve as legal counsel in its Chapter
11 case.
The firm's services include:
(a) providing advice to the Debtor with respect to its powers
and duties under the Bankruptcy Code in the continued operation of
its business and the management of its property;
(b) negotiating with creditors of the Debtor, preparing a plan
of reorganization and taking the necessary legal steps to
consummate a plan, including, if necessary, negotiations with
respect to financing a plan;
(c) appearing before various taxing authorities to work out a
plan to pay taxes;
(d) preparing legal documents;
(e) appearing before the court; and
(f) performing all other necessary legal services.
Joel Shafferman, Esq., a member of Shafferman & Feldman who will be
handling the case, will charge $400 per hour for his services.
As disclosed in court filings, Shafferman & Feldman is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Joel M. Shafferman, Esq.
Shafferman & Feldman LLP
137 Fifth Avenue, 9th Floor
New York, NY 10010
Phone: +1 212-509-1802
Phone: (212) 509-1802
Fax: (212) 509-1831
Email: joel@shafeldlaw.com
About Restaurante La Libertad Corp.
Restaurante La Libertad, Corp., doing business as El Patio
Mexicano, filed a petition for Chapter 11 protection (Bankr.
S.D.N.Y. Case No. 21-10370) on Feb. 26, 2021, listing up to
$100,000 in assets and up to $500,000 in liabilities. Judge
Michael E. Wiles oversees the case. Shafferman & Feldman, LLP
serves as the Debtor's legal counsel.
RVT INC: Ordered to Revise Disclosures by October 26
----------------------------------------------------
On Aug. 10, 2021, the U.S. Bankruptcy Court for the Central
District of California held a hearing on the disclosure statement
filed by RVT, Inc., and disapproved the disclosure statement
currently on file because of unclear financial statements.
Judge Mark S. Wallace ordered that an amended disclosure statement
shall be filed on or before Oct. 26, 2021. The hearing for
approval of disclosure statement is continued to Nov. 23, 2021 at
2:00 p.m.
A copy of the order dated August 23, 2021, is available at
https://bit.ly/3jbSv99 from PacerMonitor.com at no charge.
Attorney for RVT, Inc:
Larry Fieselman, Esq.
OAKTREE LAW
10900 183rd street, Suite 270
Cerritos CA90703
Tel: (562) 741-3943
Fax: (562) 264-1496
About RVT Inc.
Based in Fontana, California, RVT Inc. filed a Chapter 11 petition
(Bankr. C.D. Cal. Case No. 19-17552) on Aug. 28, 2019, listing
under $1 million in both assets and liabilities. The Hon. Mark S.
Wallace is the case judge. OAKTREE LAW represents the Debtor.
SALLY BEAUTY: S&P Alters Outlook to Positive, Affirms 'BB-' ICR
---------------------------------------------------------------
S&P Global Ratings revised its outlook on U.S.-based beauty supply
retailer Sally Beauty Holdings Inc. to positive from stable and
affirmed its 'BB-' issuer credit rating on the company.
S&P said, "The positive outlook reflects that we could raise our
rating on Sally Beauty if it is clear the company is positioned for
sales and EBITDA growth, and we believe the financial policy
supports maintenance of improved credit metrics, which could be
indicated through additional debt paydown with balance sheet
cash."
Actions taken by the company over the past 12-18 months could
position it for long-term sales growth following fairly flat sales
levels since fiscal 2016, but further investment in omnichannel
capabilities will be necessary. Among these are the growth of the
Sally loyalty program (which constituted 73% of sales for Sally US
and Canada in the third quarter) and the introduction of a Beauty
Systems Group (BSG) private label rewards card roughly one year ago
(now capturing 8% of sales). S&P also highlights improved marketing
that focuses spending on social media platforms. Also notable are
company efforts to improve its customer omnichannel experience, an
area the company has historically underinvested in relative to
peers, in its view.
The company introduced buy-online pick-up in-store capabilities at
Sally Beauty Supply (SBS) stores and rolled them out to BSG
locations in the most recent quarter, along with rapid delivery.
S&P said, "We believe these investments and the expansion of
omnichannel capabilities are critical to Sally's long-term success
but note meaningful execution risks. These are evidenced by a
recent misstep associated with the implementation of a new point of
sales system in 2019. In our view, despite its progress, the
company continues to lag retail peers in its omnichannel offering,
with only 7% of sales in the third quarter generated through its
digital channel."
Sally has modestly improved its credit metrics, paying down $205
million of debt in the third quarter, and is considering further
paydown in the near term. At the end of the third quarter, the
company has roughly $270 million of cash on its balance sheet and
covenant leverage (which limits cash netting against debt to $100
million) of 2.1x. Management has previously communicated a target
of 2.5x leverage and has taken actions, including halting share
repurchases and building cash on the balance sheet, over the past
16 months to support unforeseen liquidity requirements in a highly
volatile operating environment.
Additional paydown would drive the company's leverage further below
its stated target and lead to modest improvement in S&P Global
Ratings adjusted-credit metrics. Furthermore, S&P believes recent
public management comments indicate the potential for sustained
conservativism in regard to the capital structure. To the extent
management clearly outlined a financial policy consistent with a
lower level of funded debt that S&P expects would be sustained even
in an operating environment free from the impacts of the pandemic,
it could support the maintenance of credit metrics at levels
consistent with its current upside scenario for the company.
S&P said, "Though the Delta variant has introduced new risks,
performance has recovered, and we now forecast modest revenue and
EBITDA growth in fiscal 2022. In the third quarter, Sally increased
overall sales 45% from the third quarter of 2020 and 5% from the
third quarter of 2019, even with closures and restrictions
remaining in place in certain markets where it operates (namely
Canada, Latin America, and parts of Europe). We view sales as
supported with a heightened level of demand for personal care
products at home and a return of consumers to salons. We believe
that as consumers become vaccinated and shift time and money toward
experiences (such as dining out, socializing, and traveling) they
are also increasing spending on hair care and coloring."
Sally has benefited from elevated consumer interest in vivid hair
colors, leading to Sally US and Canada generating outsized category
growth of 52% in the third quarter, compared with overall color
sales growth of 36%. S&P said, "We forecast low-single-digit sales
growth in fiscal 2022 and maintained profitability due in part to
reduced promotional activity at Sally that is expected to persist.
As a result, we anticipate modest EBITDA growth. This leads to S&P
Global Ratings-adjusted leverage in the mid-2x area for fiscals
2021 and 2022 and FFO to debt of 28%-30%."
The positive outlook reflects S&P's expectation that Sally will
modestly expand EBITDA and sales over the next 12 months, which,
combined with possible debt paydown, could lead to deleveraging to
the low-2x area and FFO to debt sustained above 30%.
S&P could raise the rating if:
-- The company demonstrated continued progress in its digital
transformation, such that S&P anticipated growth in omnichannel
sales at both segments, and led it to believe the company was
well-positioned to fend off potential competitive threats and
strengthen its niche market position;
-- S&P forecasts leverage would be sustained in the mid-2x area or
better and FFO to debt of greater than 30%; and
-- S&P believed that the company's financial policy supported
maintenance of improved credit metrics.
S&P could revise the outlook to stable if:
S&P did not anticipate leverage and FFO to debt would improve to
and be sustained at the mid-2x area and above 30%, respectively.
This could occur if performance faltered, potentially due to
strategic missteps associated with the digital strategy or
heightened competitive threats.
SEVEN HILLS PHARMACY: Hires P. Nagaraj & Associates as Accountant
-----------------------------------------------------------------
Seven Hills Pharmacy, Inc. and its affiliates seek approval from
the U.S. Bankruptcy Court for the Eastern District of New York to
employ P. Nagaraj & Associates, LLC as accountant.
The firm's services include:
a. assisting the Debtors in the preparation of monthly operating
reports and cash flow statements and other schedules, as required
by the local rules of the court and the U.S. trustee's guidelines;
b. preparing routine tax returns;
c. assisting in the preparation of a plan of reorganization;
d. assisting in the presentation of projections and pro-forma
financial data; and
e. performing any other services.
The hourly rates charged by the firm's attorneys and staff are as
follows:
Partners $250 per hour
Associates $150 per hour
Staff $50 per hour
The firm will also receive reimbursement for out-of-pocket expenses
incurred.
Padmanabhan Nagaraj, Esq., a partner at P. Nagaraj & Associates,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Padmanabhan Nagaraj
P. Nagaraj & Associates, LLC
525 Northern Boulevard, Suite 304
Great Neck, NY 11021
Phone: 516-829-6245
Fax: 516-829-7240
Email: nagaraj@pnagaraj.com
About Seven Hills Pharmacy
Seven Hills Pharmacy, Inc., doing business as Jayson Pharmacy, and
its affiliates operate pharmacy retail stores in New York, Florida
and Pennsylvania.
Seven Hills Pharmacy filed a Chapter 11 petition (Bankr. E.D. N.Y.
Lead Case No. 21-71213) on July 1, 2021 contemporaneously with
affiliates -- Caliber Enterprises, Inc., doing business as Caliber
Pharmacy; CAB Pharmacy, Inc., doing business as Good Health
Pharmacy; CBA Pharmacy, Inc., doing business as Good Health
Pharmacy; and CSB Pharmacy, Inc. On July 6, 2021, affiliate New
Hyde Park Pharmacy, Inc., doing business as Lakeville Pharmacy,
also filed a Chapter 11 petition.
The cases are jointly administered under Seven Hills Pharmacy's
case. Judge Louis A. Scarcella oversees the cases.
At the time of the filing, Seven Hills Pharmacy reported $50,000 to
$100,000 in assets and $1 million to $10 million in liabilities.
New Hyde Park Pharmacy reported assets not exceeding $50,000 and
liabilities between $1 million and $10 million. The petitions were
signed by Karthik Dhama, president.
Terenzi & Confusione, P.C. and P. Nagaraj & Associates serve as the
Debtors' legal counsel and accountant, respectively.
SEVEN THREE DISTILLING: Seeks to Hire Lugenbuhl as Legal Counsel
----------------------------------------------------------------
Seven Three Distilling Company, LLC seeks approval from the U.S.
Bankruptcy Court for the Eastern District of Louisiana to hire
Lugenbuhl, Wheaton, Peck, Rankin & Hubbard to serve as legal
counsel in its Chapter 11 case.
The Debtor needs the firm's legal services to operate its business,
manage its property, and administer its bankruptcy case.
The hourly rates charged by the firm's attorneys and paralegals are
as follows:
Christopher T. Caplinger $375 per hour
Joseph P. Briggett $300 per hour
Senior Associates $275 per hour
Associates $225 per hour
Paralegals $100 per hour
The firm will also receive reimbursement for out-of-pocket expenses
incurred.
The retainer fee is $15,000.
Joseph Briggett, Esq., a partner at Lugenbuhl, disclosed in a court
filing that his firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Joseph P. Briggett, Esq.
Lugenbuhl Wheaton Peck Rankin & Hubbard
601 Poydras St., Suite 2775
New Orleans, LA 70130
Tel: (504) 568-1990
Fax: (504) 310-9195
Email: jbriggett@lawla.com
About Seven Three Distilling Company
301 North Claiborne, LLC and four other creditors of Seven Three
Distilling Company, LLC filed an involuntary Chapter 11 petition
(Bankr. E.D. La. Case No. 21-10219) against the company on Feb. 22,
2021. Leo Congeni, Esq., at Congeni Law Firm, LLC, represents the
petitioning creditors.
Judge Meredith S. Grabill oversees the Debtor's bankruptcy case.
Lugenbuhl, Wheaton, Peck, Rankin & Hubbard serves as the Debtor's
legal counsel.
SHOOTING SPORTS: Unsecureds Will Get 3% Under Liquidating Plan
--------------------------------------------------------------
Shooting Sports Wholesale, LLC, submitted an Amended Disclosure
Statement.
The Debtor's business declined over a period of years and, by
year-end 2020, gross sales had declined by nearly 75% from only two
years earlier. The COVID-19 Pandemic played a role in the dramatic
decline in 2020, but the Debtor’s principal and family had loaned
funds to the Debtor for several years to maintain operations, so
Mr. Warren decided at the end of 2020 to close the business and
file this Chapter 11 case to liquidate remaining assets for the
benefit of creditors.
Since the Petition Date, the Debtor has taken steps to reduced all
of its overhead and hire an auctioneer to liquidate remaining
assets.
Under the Plan, general unsecured creditors are classified in Class
3, and will receive a distribution of approximately 3% of their
allowed claims, to be distributed as follows: each Allowed General
Unsecured Claim shall be paid the balance of all proceeds from the
Debtor's operations until its sales are completed, to the extent
there are funds available after payment of all Secured and Priority
Claims as required under the Bankruptcy Code. The Debtor proposes
to make the payments proposed in its Plan from the private and
public sales of its inventory and other assets, as well as the
collection of any outstanding receivables that are collectible.
A copy of the Disclosure Statement dated August 18, 2021, is
available at https://bit.ly/3D3LK0L from PacerMonitor.com.
About Shooting Sports
Shooting Sports Wholesale, LLC, a wholesaler of firearms and
ammunition, filed a Chapter 11 bankruptcy petition (Bankr. E.D.N.C.
Case No. 21-01669) on July 27, 2021. The Hon. Joseph N. Callaway
oversees the case. At the time of filing, the Debtor disclosed up
to $81,766 in assets and up to $2,344,295 in liabilities. PAUL D.
BRADFORD, PLLC, led by Danny Bradford, is the Debtor's counsel.
STOP & GO: Plan of Reorganization Confirmed by Judge
----------------------------------------------------
Judge LaShonda A. Hunt has entered an order approving the
Disclosure Statement and confirming the Plan of Reorganization of
Stop & Go Airport Shuttle Service Inc.
The Court having determined after hearing on notice that the
Disclosure Statement is adequate and that the requirements for
confirmation set forth in 11 U.S.C. §1129(a) have been satisfied.
A copy of the Plan Confirmation Order dated August 23, 2021, is
available at https://bit.ly/3D9OJ85 from PacerMonitor.com at no
charge.
The Debtor is represented by:
David P. Lloyd, Esq.
David P. Lloyd, Ltd.
615B S. LaGrange Rd.
LaGrange IL 60525
Phone: 708-937-1264
Fax: 708-937-1265
About Stop & Go Airport Shuttle Service
Stop & Go Airport Shuttle Service, Inc. sought protection for
relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ill.
Case No. 20-17814) on Sept. 29, 2020, listing under $1 million in
both assets and liabilities. Judge Donald R. Cassling oversees the
case. David P. Lloyd, Ltd. is the Debtor's legal counsel.
SUNEX INT'L: Liquidating Trustee Taps KapilaMukamal as Accountant
-----------------------------------------------------------------
Barry Mulkamal, the liquidating trustee appointed in Sunex
International, Inc.'s Chapter 11 case, seeks approval from the U.S.
Bankruptcy Court for the Southern District of Florida to tap the
services of his own firm, KapilaMukamal, LLP.
The accounting firm's services include:
(a) review of the Debtor's financial information and books and
records;
(b) preparation of any required tax returns or similar filings;
(c) preparation of post-confirmation reports;
(d) review and analysis of financial information provided by the
purchaser of the Debtor's domestic assets to determine the amount
of payments due from such purchaser; and
(e) any other matter requested by the Liquidating Trustee.
The firm will be paid at its normal hourly rates and reimbursed for
out-of-pocket expenses incurred.
Barry Mukamal, a partner at KapilaMukamal, disclosed in a court
filing that his firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Barry E. Mukamal
KapilaMukamal, LLC
1000 South Federal Highway, Suite 200
Ft. Lauderdale, FL 33316
Office: (954) 761-1011
Direct: 786-517-5730
Email: bmukamal@kapilamukamal.com
About Sunex International
Founded in 1985, Sunex International, Inc.
--http://www.sunexintl.com/-- is a supplier of architectural
products and complete turn-key building materials for builders,
architects, and designers throughout the Caribbean and South
Florida.
Pompano Beach, Fla.-based Sunex International filed a Chapter 11
petition (Bankr. S.D. Fla. Case No. 19-14372) on April 3, 2019,
listing as much as $10 million in both assets and liabilities.
Judge Raymond B. Ray oversees the case.
Michael D. Seese, Esq., at Seese P.A., and Vaupen Financial
Advisors, LLC serve as the Debtor's bankruptcy counsel and
investment banker, respectively.
Barry E. Mukamal is the liquidating trustee appointed in the
Debtor's Chapter 11 case. Seese P.A. and KapilaMukamal, LLP serve
as the liquidating trustee's legal counsel and accountant,
respectively.
TALEN ENERGY: Hires Restructuring Advisors for Debt Talks
---------------------------------------------------------
Rachel Butt of Bloomberg Law reports that Talen Energy Corp. is
working with investment bank Evercore Inc. and legal counsel Weil,
Gotshal & Manges as it prepares for negotiations with its creditors
over how to tackle its debt load, according to people with
knowledge of the matter.
The Riverstone Holdings-backed power company's debt has slumped
after the company released a downbeat earnings outlook earlier this
August 2021 and failed to reduce investor concerns around its
debt-reduction strategy and expansion into crypto mining.
The company and its board are reviewing various financing and
liability management proposals for its roughly $4 billion debt
load, management said.
Talen Energy Corporation is an independent power generation
infrastructure company, headquartered in Allentown, Pennsylvania.
TECT AEROSPACE: Wins Plan Exclusivity Until October 4
-----------------------------------------------------
Judge Karen B. Owens of the U.S. Bankruptcy Court for the District
of Delaware extended the periods within which TECT Aerospace Group
Holdings, Inc. and its affiliates have the exclusive right to file
a Plan through and including October 4, 2021, and to solicit
acceptances through and including December 2, 2021.
The Debtors are authorized to take all actions necessary to
effectuate the relief granted in the Order following the Motion.
The Debtors will use the additional time to finalize, file, and
prosecute a plan for the benefit of the Debtors' creditors.
A copy of the Court's Extension Order is available at
https://bit.ly/3ybho9f from Kccllc.net.
About TECT Aerospace Holdings Inc.
TECT Aerospace Group Holdings, Inc. and its affiliates manufacture
high precision components and assemblies for the aerospace
industry, specializing in complex structural and mechanical
assemblies and machined components for various aerospace
applications. TECT produces assemblies and parts used in flight
controls, fuselage/interior structures, doors, wings, landing gear,
and cockpits.
TECT operates manufacturing facilities in Everett, Washington, and
Park City, and Wellington, Kansas, and their corporate headquarters
are located in Wichita, Kansas. TECT currently employs
approximately 400 individuals nationwide.
TECT and its affiliates are privately held companies owned by Glass
Holdings, LLC and related Glass-owned or Glass-controlled
entities.
TECT Aerospace Group Holdings, Inc. and six affiliates sought
Chapter 11 protection (Bankr. D. Del. Case No. 21-10670) on April
6, 2021.
TECT Aerospace estimated assets of $50 million to $100 million and
liabilities of $100 million to $500 million as of the bankruptcy
filing.
The Debtors tapped RICHARDS, LAYTON & FINGER, P.A., as counsel;
WINTER HARBOR, LLC, as restructuring advisor; and IMPERIAL CAPITAL,
LLC, as an investment banker. KURTZMAN CARSON CONSULTANTS LLC is
the claims agent.
The Boeing Company, as DIP Agent, is represented by Alan D. Smith,
Esq. and Kenneth J. Enos, Esq.
As reported by Troubled Company Reporter on June 2, 2021, Judge
Brendan Linehan Shannon of the U.S. Bankruptcy Court for the
District of Delaware authorized the bidding procedures proposed by
TECT Aerospace Group Holdings Inc. and affiliates in connection
with the auction sale of their Everett, Washington assets.
TIX CORP: Files Chapter 11 Bankruptcy Petition to Facilitate Sale
-----------------------------------------------------------------
Tix Corporation and its wholly-owned subsidiary Tix4Tonight, LLC
(collectively, the "Company"), on Aug. 25 disclosed that it has
filed voluntary petitions under Subchapter V of Chapter 11 of the
Bankruptcy Code in the United States Bankruptcy Court for the
District of Nevada.
In conjunction with its Chapter 11 cases, the Company seeks and
intends to obtain Debtor-in-Possession (DIP) financing from any
lenders that will serve to supplement the Company's current cash
position, enabling it to operate the business uninterrupted and
continue to meet its financial obligations, including the timely
payment of employee wages and benefits, lease payments, and other
obligations, as well as administering its Chapter 11 cases.
The Company also announced on Aug. 25 that in conjunction with the
filing, it is pursuing a sale process under Section 363 of the
Bankruptcy Code. To this end, the Company intends to market and
sell its assets to the highest and/or best bidder through a
Court-supervised auction and approval process.
After careful consideration of a range of alternatives, Tix
Corporation's Board of Directors concluded that the Chapter 11
process represents the best long-term solution for the Company to
address its liquidity challenges and strengthen its operations. The
Company appreciates the continued support of its customers and
vendors during this process, and appreciates the dedication and
loyalty of its talented employees, whose support is, and always
will be, critical to the Company's success and to the future of the
Company.
The Board appointed Dan Scouler, an experienced director of Debtors
in Chapter 11 cases as an additional director to assist the Company
in the Chapter 11 process.
Rock Creek Advisors LLC is acting as financial advisory and
restructuring advisors to the Company and Griffin Hamersky LLP is
the Company's legal counsel.
For access to Court documents and other general information about
the Chapter 11 cases, please visit: http://www.bmcgroup.com/tix.
About Tix Corporation
Tix Corporation (OTCQX: TIXC) provides discount ticketing services.
Due to COVID-19, the Company suspended its operations in March
2020, which included the closure of its seven discount ticket
stores in Las Vegas under its Tix4Tonight marquee and its online
ticket sales site, www.tix4tonight.com, which offered discount
tickets for shows, concerts, attractions, and tours, as well as
discount dining and shopping offers. The Company recently reopened
three of its stores and is currently operating daily.
TIX CORPORATION filed a Chapter 11 petition (Bankr. D. Nev. Case
No. 21-14170) on Aug. 24, 2021. Affiliate TIX4TONIGHT, LLC also
sought bankruptcy protection (Case No. 21-14171). Each of the
Debtors estimated $1 million to $10 million in assets and debt as
of the bankruptcy filing. Schwartz Law, PLLC, led by Samuel A.
Schwartz, is serving as counsel to the Debtors.
TIX CORPORATION: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Two affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Tix Corporation (Lead Case) 21-14170
731 Pilot Road #A
Las Vegas, NV 89119
Tix4Tonight, LLC 21-14171
731 Pilot Road, #A
Las Vegas, NV 89119
Business Description: Tix Corporation provides discount ticketing
services, with discount ticket stores in Las
Vegas under its Tix4Tonight marquee and its
online ticket sales site,
www.tix4tonight.com, which offered discount
tickets for shows, concerts, attractions,
and tours, as well as discount dining and
shopping offers.
Chapter 11 Petition Date: August 24, 2021
Court: United States Bankruptcy Court
District of Nevada
Judge: Hon. Natalie M. Cox
Debtors' Counsel: Samuel A. Schwartz, Esq.
SCHWARTZ LAW, PLLC
601 East Bridger Avenue
Las Vegas, Nevada 89101
Tel: (702) 385-5544
Fax: (702) 201-1330
E-mail: saschwartz@nvfirm.com
- and -
Scott A. Griffin, Esq.
Michael D. Hamersky, Esq.
GRIFFIN HAMERSKY LLP
420 Lexington Avenue, Suite 400
New York, New York 10170
Tel: (646) 998-5580
Fax: (646) 998-8284
E-mail: sgriffin@grifflegal.com
mhamersky@grifflegal.com
TIX Corporation's
Total Assets: $0
TIX Corporation's
Total Liabilities: $3,134,811
TIX4Tonight, LLC's
Total Assets: $0
TIX4Tonight, LLC's
Total Liabilities: $3,134,811
The petitions were signed by Kimberly Simon as chief operating
officer.
Full-text copies of the petitions containing, among other items,
lists of the Debtors' 20 largest unsecured creditors are available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/ARW7UHY/TIX_CORPORATION__nvbke-21-14170__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/BDLP3ZY/TIX4TONIGHT_LLC__nvbke-21-14171__0001.0.pdf?mcid=tGE4TAMA
UCAST LLC: Unsecureds Out of Money Under Plan
---------------------------------------------
UCast, LLC, f/k/a Q Platform Americas, LLC, Q Media Services, LLC,
f/k/a Qello, LLC, and QMS Holdings, LLC, f/k/a Qello Holdings, LLC,
submitted a Joint Combined Plan and Disclosure Statement.
Prior to ceasing operations, the Debtors had obtained capital
primarily from two sources: loans from certain shareholders and the
sale by QMS of secured promissory notes. In addition, the Debtors
also incurred trade debt for expenses incurred in their day-to-day
operations, for things such as salaries and ordinary course
business expenses. Ultimately, these sources of capital were
insufficient to fund the Debtors' continued operations, which never
became profitable, and when these sources of capital were exhausted
at the outset of the Covid-19 pandemic, the Debtors decided to
discontinue their operations.
The Debtors believe that the liquidation pursuant to the Plan will
meet the feasibility requirements of the Bankruptcy Code.
The Debtors believe that the expenses incurred in a chapter 7
liquidation would also exceed the amount of expenses that would be
incurred in implementing this Plan and winding up the affairs of
the Debtors, which expenses will be satisfied
from the New Value Contribution, which will not be made available
unless the Plan is confirmed.
Secured Claims against QMS (Class 1), Priority Unsecured Tax Claims
(Class 2), and General Unsecured Claims (Class 3) will not receive
any property or other distribution under the Plan and the classes
are impaired.
Debtors' Counsel:
Eric D. Goldberg
DLA PIPER, LLP (US)
2000 Avenue of the Stars, Suite 400N
Los Angeles, CA 90067
Tel: (310) 595-3000
A copy of the Disclosure Statement dated August 18, 2021, is
available at https://bit.ly/3z2UdPu from PacerMonitor.com.
About uCast, LLC
uCast, LLC, QMS Holdings, LLC and Q Media Services, LLC filed their
voluntary petitions for relief under Chapter 11 of the Bankruptcy
Code (Bankr. S.D. Cal. Lead Case No. 20-04501) on Sep. 2, 2020. The
petitions were signed by Neil Davis, chief business officer. At
the time of filing, the Debtors each estimated 50,000 in assets and
$10 million to $50 million in liabilities. Eric D. Goldberg, Esq.,
at DLA Piper LLP (US) serves as the Debtors' counsel.
WARDMAN HOTEL: Seeks to Hire Stretto as Administrative Advisor
--------------------------------------------------------------
Wardman Hotel Owner, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Delaware to employ Stretto as
solicitation, balloting agent and administrative advisor.
The firm will provide these services:
(a) assist in the solicitation, balloting and tabulation of
votes, prepare any related reports in support of confirmation of a
Chapter 11 plan, and process requests for documents;
(b) prepare an official ballot certification and, if necessary,
testify in support of the ballot tabulation results; and
(c) provide other solicitation, balloting and other
administrative services.
The firm's hourly rates are as follows:
Director of Solicitation $250 per hour
Solicitation Associate $230 per hour
Director $210 to $250 per hour
Associate/Senior Associate $70 to $200 per hour
Analyst $33 to $66 per hour
Sheryl Betance, a senior managing director at Stretto's Corporate
Restructuring, disclosed in court filings that her firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Sheryl Betance
Stretto
410 Exchange, Ste. 100
Irvine, CA 92602
Telephone: (714) 716-1872
Email: Sheryl.betance@stretto.com
About Wardman Hotel
Wardman Hotel Owner, LLC owns Marriott Wardman Park Hotel, a
convention hotel located at 2600 Woodley Road NW, Washington, D.C.
Wardman Hotel Owner filed a Chapter 11 bankruptcy petition (Bankr.
D. Del. Case No. 21-10023) on Jan. 11, 2021, listing $100 million
to $500 million in both assets and liabilities. James D. Decker,
manager, signed the petition.
Judge John T. Dorsey oversees the case.
Pachulski Stang Ziehl & Jones, LLP and Pryor Cashman, LLP serve as
the Debtor's bankruptcy counsel and special litigation counsel,
respectively. Stretto is the solicitation, balloting agent and
administrative advisor.
WARDMAN HOTEL: Unsecureds to Get At Least 60% After Marriott Deal
-----------------------------------------------------------------
Wardman Hotel Owner, L.L.C., owner of the property in Washington,
D.C., that previously operated as Washington Marriott Wardman Park,
submitted a Liquidating Plan and a Disclosure Statement.
The Debtor conducted a lengthy and robust auction for the sale of
its hotel property. Three bids for subject assets were received,
two of which were deemed qualified bids under the terms of the bid
procedures previously approved by the Court. The lead bid
submitted at the start of the Auction for the subject assets was in
the amount of $120,000,000. The Auction resulted in 130 rounds of
bidding. At the conclusion of the Auction, Carmel Partners Realty
VII, LLC was declared the successful bidder with a purchase price
of $152,250,000 and 2660 Woodley Road NW (C) Owner, LLC was named
as the backup up bidder with a purchase price of $152,000,000.3
The Plan is a plan of liquidation which, among other things,
provides for a Liquidating Trustee to liquidate or otherwise
dispose of the Estate's remaining assets, distribute the Plan
Contribution Amount pursuant to the terms of the Plan.
The Plan also effectuates a global settlement of the claims and
litigation by and between the Debtor, Pacific Life, PL Wardman
Member LLC, and Marriott -- which filed the largest unsecured claim
in this case by far in excess of $82 million -- pursuant to a
separately filed motion to compromise and settle the controversies
and disputes between the parties. Under the proposed settlement,
Marriott would receive $18 million in distributions on account of
its filed proof of claim in full and final settlement of any all of
its claims against the Debtor, Pacific Life, and PL Wardman Member,
LLC relating to, among others, the Debtor, its assets or the
Chapter 11 Case. The Debtor, Pacific Life, and PL Wardman Member,
LLC would each waive and release any and all of their claims
against Marriott relating to, among others, the Debtor, its assets
or the Chapter 11 Case under the proposed settlement, which is
subject to approval by the Bankruptcy Court. Pursuant to the
proposed settlement and for settlement purposes only, Marriott has
agreed to have the Marriott Claim separately classified from other
unsecured claims. If the Plan is not confirmed by the Bankruptcy
Court or the Marriott Settlement Motion is not granted by the
Bankruptcy Court, Marriott reserves all of its rights to contest
separate classification of any and all of its claims against the
Debtor.
The Plan Contribution Amount represents an agreement by Pacific
Life allow a distribution, through a limited subordination of its
right to receive payment, to provide: (a) a minimum recovery to
Holders of General Unsecured Claims in Class 5 of the Plan of
$500,000 subject to additional Distributions; (b) a total recovery
to Marriott on account of its Class 4 Claim in the amount of
$18,000,000 in accordance with the Marriott Settlement Motion
discussed earlier between Marriott, the Debtor, Pacific Life and PL
Wardman Member, LLC; (c) provides sufficient funding to pay
Administrative and Priority Claims, and; (d) provides sufficient
amounts to fund the necessary plan reserves and pay costs and
expenses arising under the Plan and Sale Order and in connection
with the Liquidating Trust.
The Class 4 Marriott Claim in the amount of $87,500,000 will have a
20.57% recovery pursuant to the Settlement. Class 5 General
Unsecured Claims are projected to total $187,332 to $832,514.
Unsecured creditors will recover 60% to 100% of their claims.
Counsel for the Debtor:
Laura Davis Jones
David M. Bertenthal
Timothy P. Cairns
PACHULSKI STANG ZIEHL & JONES LLP
919 North Market Street, 17th Floor
P.O. Box 8705
Wilmington, Delaware 19899-8705 (Courier 19801)
Telephone: 302-652-4100
Facsimile: 302-652-4400
email: ljones@pszjlaw.com
dbertenthal@pszjlaw.com
tcairns@pszjlaw.com
A copy of the Disclosure Statement dated August 18, 2021, is
available at https://bit.ly/3iZi3pI from PacerMonitor.com.
About Wardman Hotel Owner
Wardman Hotel Owner, L.L.C., owns Marriott Wardman Park Hotel, a
convention hotel located at 2600 Woodley Road NW, in the Woodley
Park neighborhood of Washington, D.C.
Wardman Hotel Owner, L.L.C., filed a Chapter 11 bankruptcy petition
(Bankr. D. Del. Case No. 21-10023) on Jan. 11, 2021. In the
petition signed by James D. Decker, manager, the Debtor estimated
$100 million to $500 million in assets and liabilities. The Hon.
John T. Dorsey is the case judge. PACHULSKI STANG ZIEHL & JONES
LLP, led by Laura Davis Jones, is the Debtor's counsel.
WATTSTOCK LLC: Seeks Cash Collateral Access
-------------------------------------------
WattStock, LLC asks the U.S. Bankruptcy Court for the Northern
District of Texas, Dallas Division, for authority to use cash
collateral and make adequate protection payments to the U.S. Small
Business Administration in the amount of $731 per month.
The proposed use of Cash Collateral totals $41,318.35.
On May 19, 2020, due to the COVID-19 pandemic's effects on the
Debtor's business, the Debtor entered into a Loan Authorization and
Agreement, U.S. Small Business Administration Note, and Security
Agreement. The Loan Documents represent a $150,000 disaster loan
from the SBA to the Debtor. The Loan Documents provide for
repayment over 30 years at 3.75% interest, set at $731 per month.
The Security Agreement provides for a lien on substantially all of
the Debtor's assets, and a UCC–1 Financing Statement was filed on
May 27, 2020.
As set forth in the Declaration of Andrew F. Herr, the Debtor's
chief executive officer, the Collateral has a value of
approximately $2 million. The debt is approximately $150,000.
Accordingly, the Debtor contends the SBA is oversecured. Further,
due to the minimal monthly repayment obligations under the Note,
the Debtor can and will continue debt service throughout the
Bankruptcy Case. The Debtor therefore seeks a finding that the SBA
is adequately protected.
As of the Petition Date, the Debtor holds $125,697 in its checking
account. At least some of the Cash consists of funds received from
GE which is earmarked for subcontractors on GE projects. The Debtor
contends these funds are not cash collateral. However, it is
possible that at least some Cash is the SBA's collateral. The
Debtor believes the SBA's lien in the Cash is not perfected and
could be avoided; however, the Debtor filed the Cash Collateral
Motion out of abundance of caution. Additionally, the Debtor
anticipates revenue over the next quarter totaling $500,000 to
$2,500,000. Even with the use of Cash Collateral, therefore, there
is no risk of administrative insolvency.
The Debtor further notes the Collateral is worth some 13 times the
amount of the debt, providing a substantial "equity cushion".
Separately, the SBA will be adequately protected by virtue of
monthly debt service payments.
The Debtor also requests the Court to schedule a final hearing
before September 30, 2021.
A copy of the Debtor's request is available at
https://bit.ly/2UIKmzz from PacerMonitor.com.
About WattStock, LLC
WattStock, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tex. Case No. 21-31488) on August 17,
2021. In the petition signed by Patrick Jenevein, manager, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Stacey G. Jernigan oversees the case.
Davor Rukavina, Esq. at Munsch Hardt Kopf and Harr, PC is the
Debtor's counsel.
WIRTA HOTELS: Seeks to Hire Foster Garvey as Legal Counsel
----------------------------------------------------------
Wirta Hotels, LLC seeks approval from the U.S. Bankruptcy Court for
the Western District of Washington to hire Foster Garvey, PC to
serve as legal counsel in its Chapter 11 case.
The firm's services will include legal advice on the Debtor's
duties under the Bankruptcy Code, analysis of claims, negotiations
with creditors, representation of the Debtor in adversary
proceedings, and the preparation of a Chapter 11 plan.
The hourly rates charged by the firm's attorneys and paralegals are
as follows:
Tara Schleicher, Esq. $490 per hour
Dan Youngblut, Esq. $390 per hour
Other Attorneys $375 to $890 per hour
Paralegals $200 to $250 per hour
The Debtor provided the firm with a retainer in the amount of
$100,000.
As disclosed in court filings, Foster Garvey is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Tara J. Schleicher, Esq.
Foster Garvey, PC
121 SW Morrison St, Suite 1100
Portland, OR 97204
Tel: (503) 228-3939
Email: tara.schleicher@foster.com
About Wirta Hotels
Wirta Hotels, LLC owns and operates Quality Inn & Suites at Olympic
National Park, a hotel located at 134 River Road, Sequim, Wash.
Wirta Hotels filed a petition for Chapter 11 protection (Bankr.
W.D. Wash. Case No. 21-11556) on Aug. 13, 2021, listing $3,136,280
in assets and $5,193,377 in liabilities. Judge Christopher M.
Alston oversees the case.
Foster Garvey, PC and Premier Capital Associates, LLC serve as the
Debtor's legal counsel and financial consultant, respectively.
WIRTA HOTELS: Seeks to Hire Premier Capital as Financial Consultant
-------------------------------------------------------------------
Wirta Hotels, LLC seeks approval from the U.S. Bankruptcy Court for
the Western District of Washington to hire Premier Capital
Associates, LLC to provide financial consulting and advisory
services.
Premier Capital will be paid a flat fee of $5,000 per month for its
services, which include financial reporting and projections for the
Debtor's Chapter 11 plan.
The Debtor provided an advisory fee retainer of $15,000.
Jeff McKee, managing director at Premier Capital, disclosed in a
court filing that his firm is a disinterested person as defined in
Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Jeff McKee
Premier Capital Associates, LLC
12600 Southeast 38th Street Suite 207
Bellevue, WA
Office: 425-957-0600
Cell: 425-533-1356
Email: jmckee@premiercapitalassoc.com
About Wirta Hotels
Wirta Hotels, LLC owns and operates Quality Inn & Suites at Olympic
National Park, a hotel located at 134 River Road, Sequim, Wash.
Wirta Hotels filed a petition for Chapter 11 protection (Bankr.
W.D. Wash. Case No. 21-11556) on Aug. 13, 2021, listing $3,136,280
in assets and $5,193,377 in liabilities. Judge Christopher M.
Alston oversees the case.
Foster Garvey, PC and Premier Capital Associates, LLC serve as the
Debtor's legal counsel and financial consultant, respectively.
WOW BAR LLC: Files for Chapter 11 Bankruptcy
--------------------------------------------
Patrick Rehkamp of Minneapolis / St. Paul Business Journal reports
that the Wow Bar Blow Dry & Style Bar, a high-end salon with
locations in southwest Minneapolis and St. Paul's Grand Avenue,
recently filed for Chapter 11 bankruptcy protection.
Parrel Caplan, the company's founder and CEO, said the multiple
waves Covid-19 dramatically impacted the business, which does
shampoo, makeup and styling, not hair cuts and colors.
"We were decimated by the pandemic," she said about the falloff in
business last year. "Our business was down 80%" compared to 2019.
Most clients come in prior to a special event, but since the events
have been largely curtailed during the pandemic, business has been
negatively impacted too.
Both of Wow Bar's locations at 5037 France Ave. S. in Minneapolis
and 1104 Grand Ave. in St. Paul are still open.
"We are not shutting down," Caplan said. "Our employees and
customers are totally protected. Nothing will change. This
proceeding will help us restructure the debt. We have the support
of our (Minneapolis) landlord, who's a secured creditor."
The salon did receive two Paycheck Protection Program totaling
about $228,000, according to FederalPay.org.
The Wow Bar lists estimated liabilities between $1 million and $10
million and estimated assets between $100,000 and $500,000,
according to the file in U.S. Bankruptcy Court for the District of
Minnesota. The number of creditors is an estimated to be less than
50. Some of the largest creditors include:
Edina-based Crown Bank, which has an unsecured claim against Wow
Bar for $114,000 (the bankruptcy filing says it's connected to a
PPP loan)
Minneapolis-based U.S. Bancorp also has an unsecured claim against
Wow Bar for $114,000 (the bankruptcy filing says it's connected to
a PPP loan)
The law firm Winthrop & Weinstine has an unsecured claim against
Wow Bar for $78,750.
About Wow Bar
Wow Bar LLC, a high-end salon with locations in southwest
Minneapolis and St. Paul's Grand Avenue, sought Chapter 11
protection (Bankr. D. Minn. Case Number 21-41457) on August 17,
2021. In the petition signed by Parrel Caplan, as CEO, Wow Bar
estimated assets of between $100,000 to $500,000 and estimated
liabilities of between $1 million to $10 million. The case is
handled by Honorable Judge Kathleen H. Sanberg. Alexander J. Beeby,
Esq., of LARKIN HOFFMAN DALY & LINDGREN LTD, is the Debtor's
counsel.
WOW BAR: Wins Cash Collateral Access
------------------------------------
The U.S. Bankruptcy Court for the District of Minnesota has
authorized the WOW Bar, LLC to use cash collateral in accordance
with the budget.
The Court says all banks, lenders or depository institutions used
by the Debtor are authorized to release and return to the Debtor
all the Debtor's cash collateral and deposits, including credit
card payments, accounts receivable and all checks received prior to
the filing date but which have not yet cleared, and all other cash
collateral received on or after the filing date; and allow the
Debtor access to its cash and receivables so the Debtor may use its
funds in the normal course of business.
As adequate protection for the Debtor's use of cash collateral, it
is authorized to grant any creditor having an interest in cash
collateral a replacement lien in the Debtor's post-petition assets
of the same type and nature as subject to the pre-petition liens.
The liens will have the same priority and affect as such lien
creditors held on the pre-petition property of the Debtor and are
granted only to the extent of the diminution in value of the
creditors' interest in pre-petition collateral.
As additional adequate protection, the Debtor is authorized to (a)
maintain insurance on all the property in which all secured
creditors claim a security interest; (b) pay all post-petition
federal and state taxes, including timely deposit of payroll taxes;
(c) provide all secured creditors, upon reasonable notice, access
during normal business hours for inspection of their collateral and
the Debtor's business records; and (d) deposit all cash proceeds
and income into a Debtor-in-Possession Account.
The replacement liens of the secured creditors are deemed properly
perfected without any further act or deed on the part of the Debtor
or the creditor.
A final telephonic hearing on the matter is scheduled for September
8, 2021 at 10:30 a.m.
A copy of the order is available at https://bit.ly/3Dd5lMe from
PacerMonitor.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.
[*] Bankruptcy Filings Down in 1H 2021, Cornerstone Report Shows
----------------------------------------------------------------
The COVID-19 pandemic set off an increase in corporate bankruptcy
filings not seen since the financial crisis, according to a report
released on Aug. 25 by Cornerstone Research. The report, Trends in
Large Corporate Bankruptcy and Financial Distress—Midyear 2021
Update, examines trends in Chapter 7 and Chapter 11 bankruptcy
filings since 2005 by companies with over $100 million in assets.
The report found that 155 large companies filed for bankruptcy in
2020, second only to the 161 filings in 2009, many of which
resulted from the financial crisis. Of the 155 bankruptcies in
2020, 104 occurred during the second and third quarters of the
year, coinciding with the pandemic-induced economic shutdown. The
pace slowed drastically in the fourth quarter to just 17 filings
and continued to trend lower throughout the first half of 2021 as
the economic recovery took hold. Only 43 large company bankruptcies
were filed in the first half of 2021, compared to 89 during the
same period in 2020.
In 2020, two industries—Mining, Oil and Gas; and Retail Trade --
accounted for 48% of all large corporate bankruptcy filings.
Consistent with the recoveries in oil prices and consumer spending,
bankruptcies in Mining, Oil and Gas and Retail Trade combined fell
from 75 in 2020 to 11 in the first half of 2021.
Similar trends were observed among the largest subset of companies,
with 60 "mega bankruptcies" (companies with over $1 billion in
reported assets) filed in 2020 -- more than half of those in the
second quarter. By contrast, only nine mega bankruptcies were filed
in the first half of 2021, considerably lower than the 2020 level
but comparable to the 2005–2020 average of 11 mega bankruptcies
per half year. Of the nine mega bankruptcies filed in the first
half of 2021, four were by companies in the real estate industry,
which was hit particularly hard by COVID-19-related business
closures.
Although severe, the spike in bankruptcy filings driven by the
COVID-19 pandemic was shorter lived than during the financial
crisis. Following the onset of the pandemic, monthly bankruptcy
filings were higher than the 2005–2020 average for six
consecutive months, compared to 14 consecutive months after Lehman
Brothers filed for bankruptcy.
"Despite the decline in the number of large bankruptcies in the
first half of 2021, future increases in borrowing costs could be
especially concerning for companies that borrowed heavily to
weather the COVID-19 pandemic," said J.B. Doyle, a report coauthor
and Cornerstone Research principal. "We will see if increases in
debt burden from the pandemic affects bankruptcy filings in the
future."
About Cornerstone Research
Cornerstone Research provides economic and financial consulting and
expert testimony in all phases of complex litigation and regulatory
proceedings. The firm works with an extensive network of prominent
faculty and industry practitioners to identify the best-qualified
expert for each assignment. Cornerstone Research has earned a
reputation for consistent high quality and effectiveness by
delivering rigorous, state-of-the-art analysis for more than 30
years. The firm has over 700 staff and offices in Boston, Chicago,
London, Los Angeles, New York, San Francisco, Silicon Valley, and
Washington.
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re One New Alliance, LLC
Bankr. D.N.J. Case No. 21-16576
Chapter 11 Petition filed August 17, 2021
See
https://www.pacermonitor.com/view/XZQP3RY/One_New_Alliance_LLC__njbke-21-16576__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re MoBrewz, LLC
Bankr. E.D. Cal. Case No. 21-90378
Chapter 11 Petition filed August 18, 2021
See
https://www.pacermonitor.com/view/6YY4S7Y/MoBrewz_LLC__caebke-21-90378__0001.0.pdf?mcid=tGE4TAMA
represented by: David C. Johnston, Esq.
DAVID C. JOHNSTON
E-mail: david@johnstonbusinesslaw.com
In re Semoran Pines Phase II Condominium Association, Inc.
Bankr. M.D. Fla. Case No. 21-03745
Chapter 11 Petition filed August 18, 2021
See
https://www.pacermonitor.com/view/G77SPXQ/Semoran_Pines_Phase_II_Condominium__flmbke-21-03745__0001.0.pdf?mcid=tGE4TAMA
represented by: Brian Michael Mark, Esq.
BRIAN MICHAEL MARK, P.A.
E-mail: bmark@marklawfirm.com
In re Dane Heating & Air Conditioning, Inc.
Bankr. N.D. Ill. Case No. 21-09701
Chapter 11 Petition filed August 18, 2021
See
https://www.pacermonitor.com/view/5LZHVJY/Dane_Heating__Air_Conditioning__ilnbke-21-09701__0001.0.pdf?mcid=tGE4TAMA
represented by: Richard G Larsen, Esq.
SPRINGERLARSENGREENE, LLC
E-mail: rlarsen@springerbrown.com
In re Verner D. Nelson and Donna L. Nelson
Bankr. N.D. Iowa Case No. 21-00759
Chapter 11 Petition filed August 18, 2021
represented by: Austin Peiffer, Esq.
In re OLCAN III Properties LLC
Bankr. D. Md. Case No. 21-15323
Chapter 11 Petition filed August 18, 2021
See
https://www.pacermonitor.com/view/OEBXE3I/OLCAN_III_Properties_LLC__mdbke-21-15323__0001.0.pdf?mcid=tGE4TAMA
represented by: Marc R. Kivitz, Esq.
LAW OFFICE OF MARC R. KIVITZ
E-mail: mkivitz@aol.com
In re F.Bryan A. Izzo
Bankr. S.D.N.Y. Case No. 21-35629
Chapter 11 Petition filed August 18, 2021
represented by: Francis Paz, Esq.
In re Benson Property Investment Corp
Bankr. M.D. Fla. Case No. 21-01081
Chapter 11 Petition filed August 19, 2021
See
https://www.pacermonitor.com/view/L77JHLA/Benson_Property_Investment_Corp__flmbke-21-01081__0001.0.pdf?mcid=tGE4TAMA
represented by: Joel M. Aresty, Esq.
JOEL M. ARESTY P.A.
E-mail: aresty@icloud.com
In re Line Marie Martin
Bankr. M.D. Fla. Case No. 21-03770
Chapter 11 Petition filed August 19, 2021
In re Live Well Medical Centers Orlando LLC
Bankr. M.D. Fla. Case No. 21-02027
Chapter 11 Petition filed August 19, 2021
See
https://www.pacermonitor.com/view/OK4M4TQ/Live_Well_Medical_Centers_Orlando__flmbke-21-02027__0001.0.pdf?mcid=tGE4TAMA
represented by: Thomas C. Adam, Esq.
THE ADAM LAW GROUP P.A.
E-mail: tadam@adamlawgroup.com
In re Concrete Pavers Inc.
Bankr. E.D. La. Case No. 21-11088
Chapter 11 Petition filed August 19, 2021
See
https://www.pacermonitor.com/view/BEWOWPY/Concrete_Pavers_Inc__laebke-21-11088__0001.0.pdf?mcid=tGE4TAMA
represented by: Robin R. De Leo, Esq.
THE DE LEO LAW FIRM, LLC
E-mail: lisa@northshoreattorney.com
In re Kenneth Olakunle Shobola
Bankr. M.D. Fla. Case No. 21-04346
Chapter 11 Petition filed August 20, 2021
represented by: Buddy Ford, Esq.
BUDDY D. FORD, P.A.
In re AA Varela Properties LLC
Bankr. M.D. Fla. Case No. 21-02049
Chapter 11 Petition filed August 23, 2021
See
https://www.pacermonitor.com/view/MG3AXRY/AA_Varela_Properties_LLC__flmbke-21-02049__0001.0.pdf?mcid=tGE4TAMA
represented by: Thomas C. Adam, Esq.
THE ADAM LAW GROUP P.A.
E-mail: tadam@adamlawgroup.comf
In re Daniel R. Roubein
Bankr. C.D. Ill. Case No. 21-70616
Chapter 11 Petition filed August 23, 2021
represented by: David Welch, Esq.
In re Bear Valley Ranch Market & Liquor Inc
Bankr. C.D. Cal. Case No. 21-14536
Chapter 11 Petition filed August 24, 2021
See
https://www.pacermonitor.com/view/WX67XDY/Bear_Valley_Ranch_Market__Liquor__cacbke-21-14536__0001.0.pdf?mcid=tGE4TAMA
represented by: Luke J. Hendrix, Esq.
LAW OFFICES OF J. LUKE HENDRIX
E-mail: luke@jlhlawoffices.com
In re Jay Arthur Coakley, Sr.
Bankr. M.D. Fla. Case No. 21-03829
Chapter 11 Petition filed August 24, 2021
represented by: James W. Elliott, Esq.
In re Scenic 30A Investments, LLC
Bankr. M.D. Fla. Case No. 21-02060
Chapter 11 Petition filed August 24, 2021
See
https://www.pacermonitor.com/view/Y7PJ5XY/Scenic_30A_Investments_LLC__flmbke-21-02060__0001.0.pdf?mcid=tGE4TAMA
represented by: Jason A. Burgess, Esq.
THE LAW OFFICE OF JASON A. BURGESS, LLC
E-mail: jason@jasonAburgess.com
In re Gatearm Technologies, Inc.
Bankr. S.D. Fla. Case No. 21-18198
Chapter 11 Petition filed August 24, 2021
See
https://www.pacermonitor.com/view/DLFYQNI/Gatearm_Technologies_Inc__flsbke-21-18198__0001.0.pdf?mcid=tGE4TAMA
represented by: Craig I. Kelley, Esq.
KELLEY, FULTON & KAPLAN, P.L.
E-mail: craig@kelleylawoffice.com
In re Thomas Jude Ryan and Sherry Marcellino Ryan
Bankr. S.D. Fla. Case No. 21-18185
Chapter 11 Petition filed August 24, 2021
represented by: David Merrill, Esq.
In re Nabil I Haddad and Peggy Haddad
Bankr. D. Kan. Case No. 21-20961
Chapter 11 Petition filed August 24, 2021
represented by: Robert Baran, Esq.
CONROY BARAN, LLC
E-mail: rbaran@conroybaran.com
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine
Tumanda, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog,
Meriam Fernandez, Joel Anthony G. Lopez, Cecil R. Villacampa,
Sheryl Joy P. Olano, Psyche A. Castillon, Ivy B. Magdadaro, Carlo
Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors.
Copyright 2021. All rights reserved. ISSN: 1520-9474.
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