/raid1/www/Hosts/bankrupt/TCR_Public/211001.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Friday, October 1, 2021, Vol. 25, No. 273
Headlines
1121 PIER VILLAGE: Taps Keen-Summit as Real Estate Advisor
16913 HARBOUR TOWN: Seeks Approval to Hire Real Estate Agent
18 IRVING STREET: Seeks to Hire Irene Bremis as Real Estate Broker
206 GOLDEN LLC: Seeks to Hire J.S. Held as Financial Advisor
2340 ND CORP: Disclaimer on Tax Implications Added to Plan
A & G PIZZA: Files Emergency Bid to Use Cash Collateral
A&E ADVENTURES: Seeks to Tap Meland Budwick as Legal Counsel
AA VARELA: U.S. Trustee Unable to Appoint Committee
AHERN RENTALS : Pulls Its Junk Bonds After Investors Demand Yield
ALPHATEC HOLDINGS: Expects Sequential Decline in Q3 Spine Revenue
API GROUP: S&P Affirms 'BB-' Issuer Credit Rating, Outlook Stable
BALANCE POINT: Case Summary & 20 Largest Unsecured Creditors
BAR 13: Voluntary Chapter 11 Case Summary
BARTLEY INDUSTRIES: Seeks to Tap B. David Sisson as Legal Counsel
BGT INTERIOR: Wins Cash Collateral Access Thru Oct 31
BLUE CROWN: Gets OK to Hire Maureen Hamilton as Real Estate Agent
BOY SCOUTS: Claimants' Attorneys Fees to Have Separate Review
BOY SCOUTS: Coalition Opposes Plan Delay, Touts $1.887-Bil. Fund
BOY SCOUTS: Preparing for Abuse Victims' Vote on Plan
BOY SCOUTS: Victims Get Opposing Restructuring Plan Vote Advice
BRAIN ENERGY: Seeks Cash Collateral Access
BUENA PARK: Court Denies Disclosure Statement Approval
CASTLEROCK DEVELOPMENT: Wins Final OK on Cash Collateral Access
CERTA DOSE: Seeks to Hire Huebscher & Co. as Financial Advisor
CHESAPEAKE ENERGY: To Name Domenic Dell'Osso as Next CEO
CITY WIDE: Wins Continued Use of Cash Collateral Access
CLEAVER-BROOKS CO: S&P Assigns 'B-' ICR on Corporate Restructuring
CMC II LLC: Consulate Health to Pay $4.5 Mil. of $258 Mil. Judgment
COUNCIL FOR AID: Unsecureds Will Get 11.05% in Subchapter V Plan
D & M INVESTMENTS: Involuntary Chapter 11 Case Summary
DANE HEATING: Seeks to Hire Schaefers Law Group as Special Counsel
DAVIDZON MEDIA: To File Amended Plan & Disclosures by Oct. 15
DCR ENGINEERING: Seeks to Tap Parrish & Parrish as Accountant
DEA BROTHERS: Nov. 14 Hearing on Creditors' Plan Disclosures
DEMO REALTY: Court Orders Appointment of Examiner
DESIGNER DIVA: Seeks to Hire Russell Van Beustring as Legal Counsel
DUN & BRADSTREET: S&P Alters Outlook to Stable, Affirms 'B+' ICR
EVERGREEN DEVELOPMENT: Wins Cash Collateral Access Thru Dec 31
EXCEL FITNESS: S&P Alters Outlook to Stable, Affirms 'CCC+' ICR
FANTASEA ENTERPRISES: Case Summary & 5 Unsecured Creditors
FIVETOWER LLC: Taps Revenue Assurance Partners as Collection Agent
FLEXIBLE FUNDING: Seeks to Hire Ward and Smith as Special Counsel
FOOT LOCKER: S&P Rates New $400MM Senior Unsecured Notes 'BB+'
FREDERICK LLC: $3.2M Sale to Shared Estates to Fund Plan
GATEWAY KENSINGTON: Wins Cash Collateral Access Thru Nov. 5
GEROBIN FINANCES: Chapter 15 Case Summary
GEROU PROPERTIES: Cash Collateral Deal OK'd
GOLDEN HOTEL: Court OK's Deal on Cash Collateral Use Thru Oct 24
GREENSILL CAPITAL: Bluestone Said to Offer $300M to Credit Suisse
HANKS TOWING: Court to Approve Disclosure Statement
HERALD HOTEL: Hearing on Disclosures and Plan Set for Oct. 25
HIGHLAND PROPERTY: Seeks to Hire Dennis Spyra as Legal Counsel
HILLTOP AT DIA: U.S. Trustee Unable to Appoint Committee
IFRESH INC: Receives Noncompliance Notice From Nasdaq
INTEGRATED GLOBAL: Seeks to Hire Davey & Associates as Accountant
INTEGRATED GLOBAL: Seeks to Hire Menke Law Firm as Special Counsel
INTELSAT SA: Equity Group Loses Bid for Bankruptcy Examiner
ISLAND EMPLOYEE: Wins Access to Cash Collateral Thru Oct 14
JILL ACQUISITION: S&P Upgrades ICR to 'B-', Outlook Stable
KANSAS CITY UNITED: Wins Access to UMB Bank's Cash
L'INC D'ALINE: Seeks Cash Collateral Access
LA TERRAZA: Fine-Tunes Plan; Confirmation Hearing Oct. 26
LATAM AIRLINES: Board Okays $750M Financing From Oaktree, Apollo
LIFE CENTER CHURCH: Taps William Jamison as Bankruptcy Attorney
LIMETREE BAY: Seeks to Hire Claro Group as Insurance Consultant
LINDSAY YORK: Case Summary & 14 Unsecured Creditors
LIVE PRIMARY: Seeks to Hire Cole Schotz as Real Estate Counsel
LOUISIANA CRANE: Creditors Complain of Repayment Provision in Plan
LOVES FURNITURE: Court Approves Bankruptcy Plan With Hefty Payouts
MALLINCKRODT PLC: Bonds Decreased After Acthar Claim Ruling
MALLINCKRODT PLC: To Face Acthar Price-Gouging Claims Trial
MASTER TECH: Seeks to Hire Joyce W. Lindauer as Legal Counsel
MEDLEY LLC: Members of Plan Oversight Committee Identified
MEDLEY LLC: U.S. Trustee Opposes Chapter 11 Liability Releases
MESABI METALLICS: Adviser's Fee Fight Belongs to Bankruptcy Court
NB LOFT VUE: Court OKs DIP Loans from Nelson Partners
NEWSTREAM HOTEL: Seeks to Hire Spencer Fane as Legal Counsel
NEXTGEN TRANSPORTATION: Lindauer Represents DSM Advantage, CJM
NOVABAY PHARMACEUTICALS: Signs Deal to Acquire DERMAdoctor for $15M
PACIFIC ENVIRONMENTAL: Wins Cash Collateral Access on Final Basis
PARISI & POWELL: Continued Operations to Fund Plan Payments
PAUL L. DUNBAR: Seeks to Tap the Lewis Law Firm as Counsel
PDC ENERGY: S&P Affirms 'BB' Issuer Credit Rating, Outlook Stable
PHOENIX ROOFING: Gets OK to Hire Salkin Law Firm as Legal Counsel
PRECISION MANUFACTURED: Voluntary Chapter 11 Case Summary
PROTON THERAPY: Plans to Sell Yet-to-Open Facility in Florida
PURDUE PHARMA: States Want to Control Payouts to Victims
PUREWEST ENERGY: S&P Affirms 'B-' ICR, Outlook Stable
QUANTUM VALVE: Committee Taps Okin Adams as Legal Counsel
RESTORATION HARDWARE: S&P Assigns 'BB' ICR, Outlook Stable
REVLON INC: Citigroup Asks Appeals Court for $500 Million Error Fix
RIVER BEND MARINA: Court Approves Disclosure Statement
ROSCOE GUITARS: Seeks Approval to Hire Bankruptcy Counsel
RSP PITTSBURGH: Seeks to Hire Dennis Spyra as Bankruptcy Attorney
RURAL CONNECT: Case Summary & 7 Unsecured Creditors
RURAL CONNECT: Seeks Cash Collateral Access
SAN LUIS & RIO: Trustee Taps Missouri Rail Group as Broker
SANTA FE DIOCESE: Raises At Least $1.6-Mil. From Property Auction
SANUWAVE HEALTH: Plans to File Missed Annual, Quarterly Reports
SCIENTIFIC GAMES: To Sell Betting Business to Endeavor for $1.2B
SN TEAM: Unsecureds to Get 100% Recovery in Plan
TIMBER PHARMACEUTICALS: Joseph Lucchese to Serve as Full-Time CFO
VIENTO WINES: Court Confirms Plan, Imposes Injunction on Creditor
WIRTA HOTELS: Seeks to Hire Clark Nuber as Accountant
Z EDGE: Association Complains of Missing Claim in Plan
[^] BOOK REVIEW: Legal Aspects of Health Care Reimbursement
*********
1121 PIER VILLAGE: Taps Keen-Summit as Real Estate Advisor
----------------------------------------------------------
1121 Pier Village, LLC, and its affiliates seek approval from the
U.S. Bankruptcy Court for the Eastern District of Pennsylvania to
hire Keen-Summit Capital Partners, LLC as their real estate
advisor.
The firm's services include:
1. reviewing pertinent documents and consulting with the
Debtors' legal counsel, as appropriate;
2. coordinating with the Debtors the development of due
diligence materials;
3. developing a marketing plan and implementing each facet of
the marketing plan, subject to the Debtors' review and approval;
4. communicating regularly with prospects and maintaining
records of communications;
5. soliciting offers for a transaction;
6. assisting the Debtors in evaluating, structuring,
negotiating and implementing the terms and conditions of a proposed
transaction;
7. subject to the Debtors' review and approval, developing and
implementing an auction plan, including arranging auction
logistics, assisting the Debtors' legal counsel with auction bid
procedures, assisting the Debtors to qualify bidders, and running
the auction;
8. communicating regularly with the Debtors and their
professional advisor in connection with the status of their
efforts; and
9. working with the Debtors' attorneys responsible for the
implementation of the proposed transactions, reviewing documents,
negotiating and assisting in resolving problems, which may arise.
Keen-Summit will be paid a "transaction fee," which is 5 percent of
the gross proceeds of the sale price of each property sold, and
will be reimbursed for out-of-pocket expenses incurred by the
firm.
Upon court approval of Keen-Summit as real estate advisor, the
Debtors will pay the firm a fully earned, nonrefundable advisory
and consulting fee of $50,000, subject to set off against the last
transaction fee. With regards to the marketing of a property,
Keen-Summit is tasked to prepare a marketing plan and budget, not
to exceed $40,000.
Harold Bordwin, a principal and managing director at Keen-Summit,
disclosed in a court filing that his firm is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Harold J. Bordwin
Keen-Summit Capital Partners, LLC
1 Huntington Quadrangle, Suite 2C04
Melville, NY 11747
Phone: (646) 381-9201
Email: hbordwin@keen-summit.com
About 1121 Pier Village
Philadelphia, Pa.-based 1121 Pier Village, LLC and its affiliates
sought protection under Chapter 11 of the Bankruptcy Code (Bankr.
E.D. Pa. Lead Case No. 21-11466) on May 23, 2021. Alex Halim,
operating manager, signed the petitions. At the time of the
filing, 1121 Pier Village had between $10 million and $50 million
in both assets and liabilities.
Judge Eric L. Frank oversees the case.
The Debtors tapped Obermayer Rebmann Maxwell & Hippell, LLP as
legal counsel; Asterion, Inc., as accountant and financial advisor;
and Keen-Summit Capital Partners, LLC as real estate advisor.
16913 HARBOUR TOWN: Seeks Approval to Hire Real Estate Agent
------------------------------------------------------------
16913 Harbour Town Holdings Trust seeks approval from the U.S.
Bankruptcy Court for the District of Maryland to employ Monument
Sotheby's International Realty as real estate agent.
The Debtor needs the assistance of a real estate agent to sell its
real property and improvements located at 16193 Harbour Town Drive,
Ashton, Md.
The Debtor will pay a total commission of 6 percent, which will be
divided between the seller's and buyer's agents.
Steven Lane, a real estate agent at Monument Sotheby's
International Realty, disclosed in a court filing that his firm is
a "disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Steven Lane
Monument Sotheby's International Realty
537 Baltimore Annapolis Blvd., Suite A
Severna Park, MD 21146
Telephone: (443) 906-3848
Mobile: 410-371-9190
About 16913 Harbour Town Holdings Trust
16913 Harbour Town Holdings Trust sought protection under Chapter
11 of the Bankruptcy Code (Bankr. D. Md. Case No. 21-15735) on
Sept. 9, 2021, listing as much as $50,000 in both assets and
liabilities. Carla Donna McPhun, trustee, signed the petition.
Judge Lori S. Simpson oversees the case. The Law Offices of Richard
B. Rosenblatt, PC serves as the Debtor's legal counsel.
18 IRVING STREET: Seeks to Hire Irene Bremis as Real Estate Broker
------------------------------------------------------------------
18 Irving Street, LLC seeks approval from the U.S. Bankruptcy Court
for the District of Massachusetts to employ Irene Bremis, a real
estate broker based in Somerville, Mass.
The Debtor needs the assistance of a broker to market its property
located at 18 Irving St., Unit 2, Somerville, Mass.
Ms. Bremis will receive a flat commission of 5 percent of the
property's gross sale price.
Ms. Bremis disclosed in a court filing that she is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The broker can be reached at:
Irene Bremis
LAER Realty Partners
120 College Ave.
Somerville, MA 02144
Telephone: (617) 623-2500
Email: IBremis@LAERrealty.com
About 18 Irving Street
Somerville, Mass.-based 18 Irving Street, LLC sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. D. Mass. Case No.
21-10776) on May 27, 2021, listing as much as $10 million in both
assets and liabilities. Gina Strauss, manager and sole member,
signed the petition. Judge Janet E. Bostwick oversees the case. The
Debtor tapped Alex R. Hess Law Group as legal counsel.
206 GOLDEN LLC: Seeks to Hire J.S. Held as Financial Advisor
------------------------------------------------------------
206 Golden, LLC seeks approval from the U.S. Bankruptcy Court for
the Middle District of Florida to employ the firm of J.S. Held as
financial advisor.
J.S. Held will assist the Debtor in the critical tasks associated
with the Debtor's Chapter 11 case, including performing a
comprehensive forensic analysis.
The firm has agreed to perform services at the usual hourly billing
rates of its members.
Jeff Sutton, a senior managing director at J.S. Held, disclosed in
a court filing that the firm is a "disinterested person" as that
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Jeff Sutton, CPA
J.S. Held
48 Wall Street, Floor 17
New York, NY 10005
Telephone: (201) 483-0437
Email: JSutton@jsheld.com
About 206 Golden
Davenport, Fla.-based 206 Golden, LLC is part of the health care
industry. It filed a voluntary petition for Chapter 11 protection
(Bankr. M.D. Fla. Case No. 21-04780) on Sept. 17, 2021, listing up
to $50,000 in assets and up to $10 million in liabilities. Joyce
Plourde, managing member, signed the petition.
Robert P. Charbonneau, Esq., at Agentis PLLC and J.S. Held serve as
the Debtor's legal counsel and financial advisor, respectively.
2340 ND CORP: Disclaimer on Tax Implications Added to Plan
----------------------------------------------------------
2340 ND Corp. filed with the U.S. Bankruptcy Court for the Eastern
District of New York a supplement to the Amended Disclosure
Statement accompanying its Chapter 11 Plan of Reorganization dated
Sept. 22, 2021. According to the Debtor, it inadvertently left out
the provision concerning the tax applications creditors when it
filed the Amended Disclosure Statement. Accordingly, the Debtor
filed the supplement to include that provision. A copy of the
supplement is available for free at https://bit.ly/3uiYe0K from
PacerMonitor.com.
About 2340 ND Corp.
Based in Brooklyn, New York, 2340 ND Corp filed a petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y.
Case No. 19-46340) on Oct. 22, 2019, listing under $1 million in
both assets and liabilities. Bruce Weiner at Rosenberg Musso &
Weiner LLP represents the Debtor.
A & G PIZZA: Files Emergency Bid to Use Cash Collateral
-------------------------------------------------------
A & G Pizza, Inc. asks the U.S. Bankruptcy Court for the Eastern
District of North Carolina, Raleigh Division, for authority to use
cash collateral for 33 days.
The Debtor requires the use of cash collateral to pay its ordinary
operating expenses.
US Foods, Inc. is identified as the secured party in a UCC
Financing Statement filed with the NC Secretary of State. The
Debtor does not believe that any outstanding accounts payable are
owed to US Foods.
The North Carolina Department of Revenue also has an interest in
Cash Collateral by virtue of a tax lien filed in 2020 in the amount
of $17,167.95.
The Debtor proposes to provide adequate protection to the Secured
Creditors in the form of replacement liens in after-acquired
revenue to the same extent as they had prior to the bankruptcy.
Following this initial thirty-three day period, the Debtor believes
that it will be in a position where it can responsibly determine
what, if any, additional adequate protection can be offered.
The Debtor also requests the court to schedule a telephonic hearing
for October 1, 2021 at 10:30 am.
A copy of the order and the Debtor's budget for September 29 to
October 31, 2021 is available at The Debtor projects $29,000 in
total income and $23,389.41 in total expenses for the period.
About A & G Pizza, Inc.
A & G Pizza, Inc. operates "Milano Pizza" in Zebulon, North
Carolina. Milano Pizza has been in business for over thirty years.
The debtor-entity, owned by Aiman Abdelhadi, has operated Milano
Pizza since 2015.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.C. Case No. 21-02160) on September
29, 2021. In the petition filed by Aiman Abdelhadi, president, the
Debtor disclosed up to $50,000 in assets and up to $500,000 in
liabilities.
Travis Sasser, Esq., at Sasser Law Firm is the Debtor's counsel.
A&E ADVENTURES: Seeks to Tap Meland Budwick as Legal Counsel
------------------------------------------------------------
A&E Adventures, LLC seeks approval from the U.S. Bankruptcy Court
for the Southern District of Florida to employ Meland Budwick, PA
to serve as legal counsel in its Chapter 11 case.
The firm's services include:
(a) advising the Debtor regarding its powers and duties in the
continued management of its business operations;
(b) advising the Debtor with respect to its responsibilities
in complying with the U.S. Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the Court;
(c) preparing legal papers;
(d) protecting the interests of the Debtor and its estate in
all matters pending before the court; and
(e) representing the Debtor in negotiations with its creditors
and other parties-in-interest, and in the preparation of a plan.
The hourly rates of the firm's attorneys and staff are as follows:
Solomon B. Genet $595 per hour
James C. Moon $525 per hour
Meaghan E. Murphy $395 per hour
Paralegals $185 - $265 per hour
In addition, the firm will seek reimbursement for expenses
incurred.
James Moon, Esq., a partner at Meland Budwick, disclosed in a court
filing that his firm is a "disinterested person" as that term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
James C. Moon, Esq.
Meland Budwick, PA
3200 Southeast Financial Center
200 South Biscayne Boulevard
Miami, FL 33131
Telephone: (305) 358-6363
Facsimile: (305) 358-1221
Email: jmoon@melandbudwick.com
About A&E Adventures
A&E Adventures, LLC, doing business as GameTime, is a family
entertainment destination with indoor amusements offering a
full-service dining experience and full liquor sports bar in
Daytona, Fort Myers, Miami, Ocoee, Tampa and Kissimmee. It is
based in Miami, Fla.
A&E Adventures filed its voluntary petition for Chapter 11
protection (Bankr. S.D. Fla. Case No. 21-19272) on Sept. 24, 2021,
listing as much as $50 million in both assets and liabilities.
Michael Abecassis, managing member, signed the petition. Meland
Budwick, PA serves as the Debtor's legal counsel.
AA VARELA: U.S. Trustee Unable to Appoint Committee
---------------------------------------------------
The U.S. Trustee for Region 21, until further notice, will not
appoint an official committee of unsecured creditors in the Chapter
11 case of AA Varela Properties, LLC, according to court dockets.
About AA Varela
AA Varela Properties, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. M.D. Fla. Case No. 21-02049) on Aug. 23,
2021, listing as much as $50,000 in both assets and liabilities.
Alvaro Varela, owner, signed the petition. Judge Jerry A. Funk
oversees the case. The Debtor tapped Thomas Adam of Adam Law
Group, P.A. as legal counsel.
AHERN RENTALS : Pulls Its Junk Bonds After Investors Demand Yield
-----------------------------------------------------------------
Paula Seligson of Bloomberg News reports that Ahern Rentals Inc., a
construction equipment rental company, has shelvedits sale of $550
million of U.S. junk bonds after investors demanded more interest
and protections than it was willing to offer, according to people
with knowledge of the matter.
The company, which cited market conditions for withdrawing the bond
sale, chose to walk away after potential buyers sought more
safeguards in the deal's structure and then a roughly 10.5% yield,
the people said, asking not to be identified discussing a private
transaction.
About Ahern Rentals
Founded in 1953 with one location in Las Vegas, Nevada, Ahern
Rentals Inc. -- http://www.ahern.com/-- offers rental equipment to
customers through its 74 locations in Arizona, Arkansas,
California, Colorado, Georgia, Kansas, Maryland, Nebraska, Nevada,
New Jersey, New Mexico, North Carolina, North Dakota, Oklahoma,
Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah,
Virginia and Washington.
Privately held Ahern Rentals filed a voluntary Chapter 11 petition
(Bankr. D. Nev. Case No. 11-53860) on Dec. 22, 2011, after failing
to obtain an extension of the Aug. 21, 2011 maturity of its
revolving credit facility. In its schedules, the Debtor disclosed
$485.8 million in assets and $649.9 million in liabilities.
Judge Bruce T. Beesley presides over the case. Lawyers at Gordon
Silver and DLA Piper LLP (US) serve as the Debtor's counsel. The
Debtor's financial advisors are Oppenheimer & Co. and The Seaport
Group. Kurtzman Carson Consultants LLC serves as claims and notice
agent.
The Official Committee of Unsecured Creditors has tapped Covington
& Burling LLP as counsel, Downey Brand LLP as local counsel, and
FTI Consulting as financial advisor.
Counsel to Bank of America, as the DIP Agent and First Lien Agent,
are Albert M. Fenster, Esq., and Marc D. Rosenberg, Esq., at Kaye
Scholer LLP, and Robert R. Kinas, Esq., at Snell & Wilmer.
Attorneys for the Majority Term Lenders are Paul Aronzon, Esq., and
Robert Jay Moore, Esq., at Milbank, Tweed, Hadley & McCloy LLP.
Counsel for the Majority Second Lienholder are Paul V. Shalhoub,
Esq., Joseph G. Minias, Esq., and Ana M. Alfonso, Esq., at Willkie
Farr & Gallagher LLP.
Attorney for GE Capital is James E. Van Horn, Esq., at McGuirewoods
LLP. Wells Fargo Bank is represented by Andrew M. Kramer, Esq., at
Otterbourg, Steindler, Houston & Rosen, P.C. Allan S. Brilliant,
Esq., and Glenn E. Siegel, Esq., at Dechert LLP argue for certain
revolving lenders.
Attorneys for U.S. Bank National Association, as successor to Wells
Fargo Bank, as collateral agent and trustee for the benefit of
holders of the 9-1/4% Senior Secured Notes Due 2013 under the
Indenture dated Aug. 18, 2005, is Kyle Mathews, Esq., at Sheppard,
Mullin, Richter & Hampton LLP and Timothy Lukas, Esq., at Holland &
Hart.
In December 2012, the Court terminated Ahern's exclusive right to
propose a plan, saying the company failed to negotiate in good
faith after a year in Chapter 11. Certain holders of the Debtor's
9-1/4% senior secured second lien notes due 2013 proposed in
February their own Plan to complete with Ahern's proposal. The
Noteholder Group consists of Del Mar Master Fund Ltd.; Feingold
O'Keeffe Capital, LLC; Nomura Corporate Research & Asset Management
Inc.; Och-Ziff Capital Management Group; Sphere Capital, LLC -
Series B; and Wazee Street Capital Management, LLC. They are
represented by Laurel E. Davis, Esq., at Fennemore Craig Jones
Vargas, Kurt A. Mayr, Esq., and Daniel S. Connolly, Esq., at
Bracewell & Giuliani LLP.
In March 2013, the Court approved disclosure materials explaining
both plans. Ahern and the lenders both propose paying unsecured
claims in full. The lenders' plan fully pays unsecured creditors
when the plan is implemented. The Ahern plan pays them over a
year, thus giving unsecured creditors the right to vote only on the
Debtor's plan.
Ahern's Plan offers the junior lenders $160 million cash and new
debt if they accept the plan. Otherwise, they are slated to
receive all new debt, for eventual full payment. The lenders' plan
pays all creditors in full other than the $267.7 million in
second-lien debt that converts to equity.
Plan confirmation hearing has been set for June 3 to 5, 2013. A
copy of the Court-approved scheduling order with respect to the
Plan confirmation hearing is available at http://is.gd/DU27CF
ALPHATEC HOLDINGS: Expects Sequential Decline in Q3 Spine Revenue
-----------------------------------------------------------------
Alphatec Holdings, Inc. provided a business update, ahead of
investor meetings scheduled for the NASS 2021 meeting.
According to the company, the resurgence of COVID-19 in the U.S.
has pressured surgical procedure volumes in spine and affected
hospital operations in the third quarter of 2021, with the impact
persisting into the final month of the period. While procedure
volume is recovering in some regions, overall, it has been lower
than expected. Despite these impacts, ATEC expects U.S. spine
revenue to grow over 25% year-over-year in the third quarter due to
the continued strength of surgeon adoption and increasing sales
force penetration; however, the Company now expects third quarter
U.S. spine revenue to be down sequentially compared to the second
quarter 2021. The integration of EOS imaging continues to be on
track.
Pat Miles, chairman and chief executive officer, said, "Throughout
the pandemic, ATEC has continued to relentlessly focus on
stewarding better spine surgery through innovation. Our efforts
have been rewarded with growth at rates well in excess of the
overall spine industry, but we are not immune to the unpredictable
market backdrop. We remain committed to setting the standard in
spine surgery, and will continue to confidently navigate this
dynamic environment."
ATEC will showcase its comprehensive portfolio of innovative spine
solutions and partner with renowned spine surgeons to demonstrate
the clinical utility of the PTP technique and EOS imaging
technology at the 2021 NASS meeting, which will be held at the
Boston Convention and Exhibition Center this week.
About Alphatec Holdings
Alphatec Holdings, Inc. (ATEC) (www.atecspine.com), through its
wholly-owned subsidiaries, Alphatec Spine, Inc. and SafeOp
Surgical, Inc., is a medical device company dedicated to
revolutionizing the approach to spine surgery through clinical
distinction. ATEC architects and commercializes approach-based
technology that integrates seamlessly with the SafeOp Neural
InformatiX System to provide real-time, objective nerve information
that can enhance the safety and reproducibility of spine surgery.
Alphatec Holdings reported a net loss of $78.99 million for the
year ended Dec. 31, 2020, compared to a net loss of $57 million for
the year ended Dec. 31, 2019. As of June 30, 2021, the Company had
$441.03 million in total assets, $107.57 million in total current
liabilities, $55.79 million in long-term debt, $25.41 million in
operating lease liability (less current portion), $15.14 million in
other long-term liabilities, $23.60 million in redeemable preferred
stock, and $213.51 million in total stockholders' equity.
API GROUP: S&P Affirms 'BB-' Issuer Credit Rating, Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings affirmed its 'BB-' issuer credit rating on APi
Group Corp. The outlook is stable.
S&P said, "At the same time, we assigned our 'BB-' issue-level
rating and '3' recovery rating to the first-lien term loan and our
'B' issue-level rating and '6' recovery rating to the unsecured
notes. The '3' recovery rating indicates our expectation for
meaningful (50%-70%; rounded estimate: 50%) recovery in the event
of a payment default. The '6' recovery rating indicates our
expectation for negligible (0%-10%; rounded estimate: 5%)
recovery.
"The stable outlook reflects our assumption that APi will continue
to deliver solid operating performance and generate strong cash
flow pro forma for the Chubb acquisition. We anticipate APi's
adjusted debt to EBITDA will decline to the 4x-5x range over the
next 12 months.
APi Group Corp. has entered into a definitive agreement to acquire
the Chubb Fire & Security business from Carrier Global Corp. at an
enterprise value of $3.1 billion.
"Our rating continues to reflect the company's position as a
leading fire protection contractor in the U.S., with a stronger
global presence following the acquisition of Chubb. The acquisition
will expand APi's geographic diversification across North America,
Europe, and Asia-Pacific. We expect pro forma revenue for the
combined business to be about $6 billion in 2021. Chubb has a
substantial portion (about 60%) of service-based and repeatable
revenues, which we anticipate will support APi's strategy of
increasing its service revenue mix to more than 50%. In addition,
we anticipate the company will have opportunities to achieve better
operational efficiency through integrating Chubb, for example, in
areas such as pricing, right-sizing office location and personnel,
and leveraging procurement and shared services.
"While we expect the starting leverage to increase pro forma for
the transaction, we anticipate credit measures will improve over
our forecast period toward our expectation for the rating.Following
the acquisition, we expect pro forma debt leverage at transaction
close will increase above 5x. Our base case assumes adjusted EBITDA
margins will improve moderately to about 10%-11% from the
high-single-digit percent area in 2020 as it benefits from better
revenue mix and operating efficiency. As such, we expect debt to
EBITDA will decline to below 5x in 2022 and below 4x in 2023. We
anticipate APi will continue to generate good cash flow aided by
relatively low capital expenditure requirements, which we expect to
be about 1.5% of total revenues.
"The stable outlook reflects our assumption that APi will continue
to deliver solid operating performance and strong cash flow pro
forma for the Chubb acquisition. Although leverage will initially
increase due to the transaction, we anticipate adjusted debt to
EBITDA will decline to 4x-5x in the 12 months after transaction
close."
S&P could lower the rating if:
-- S&P expects APi will not decrease leverage to below 5x or free
operating cash flow (FOCF) to debt does not increase above 5% in
the 12 months after the transaction closes. This could occur due
to, for example, unexpected project execution issues that reduce
adjusted EBITDA margins below 8%, integration problems, or a more
aggressive financial policy; or
-- A weaker than anticipated economic environment impairs its
profitability.
Although unlikely, S&P could raise its rating if:
-- The company deleverages more quickly than S&P anticipates,
reducing debt to EBITDA below 4x and raising FOCF to debt above 10%
on a sustained basis. This could occur if its operating performance
exceeds its expectations or APi pursues a lower-than-anticipated
level of acquisitions; and
-- S&P believes the company would sustain an improvement in credit
metrics.
BALANCE POINT: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Two affiliates that concurrently filed voluntary petitions seeking
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Balance Point LLC 21-11279
19799 SW 95th Avenue
Suite B
Tualatin, OR 97062
MECTA Corporation 21-11281
19799 SW 95th Avenue
Suite B
Tualatin, OR 97062
Business Description: Balance Point was formed to hold, maintain,
develop and license intellectual property
supporting the medical devices used in the
treatment of mental illness. Balance Point
is a wholly owned subsidiary of MECTA, and
as of the Petition Date, MECTA has a non
-exclusive license to all of Balance Point's
patents, trademarks, copyrights, trade
secrets and other intellectual property
which MECTA uses in connection with the
business. MECTA is a marketer,
manufacturer, and distributor of
Electroconvulsive Therapy (ECT) devices.
Chapter 11 Petition Date: September 30, 2021
Court: United States Bankruptcy Court
District of Delaware
Judge: Hon. J. Kate Stickles
Debtors' Counsel: Shanti M. Katona, Esq.
POLSINELLI PC
222 Delaware Avenue
Suite 1101
Wilmington, DE 19801
Tel: (302) 252-0920
Fax: (302) 252-0921
E-mail: skatona@polsinelli.com
- and -
Jeremy R. Johnson, Esq.
600 3rd Avenue, 42nd Floor
New York, New York 10016
Tel: (212) 684-0199
Fax: (212) 684-0197
E-mail: jeremy.johnson@polsinelli.com
Debtor's
Financial
Advisor: WYSE ADVISORS LLC
Debtor's
Notice,
Claims,
Balloting
Agent and
Administrative
Advisor: BANKRUPTCY MANAGEMENT SOLUTIONS, INC.
D/B/A STRETTO
https://cases.stretto.com/BalancePoint
Balance Point's
Estimated Assets: $1 million to $10 million
Balance Point's
Estimated Liabilities: $0 to $50,000
MECTA's
Estimated Assets: $1 million to $10 million
MECTA's
Estimated Liabilities: $1 million to $10 million
The petitions were signed by Robin H. Nicol as president of Balance
Point's sole member, MECTA Corporation.
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/ZOJCO6Y/Balance_Point_LLC__debke-21-11279__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/AM4QMHQ/MECTA_Corporation__debke-21-11281__0001.0.pdf?mcid=tGE4TAMA
BAR 13: Voluntary Chapter 11 Case Summary
-----------------------------------------
Debtor: Bar 13, Inc.
35 East 13th St.
New York, NY 10003
Chapter 11 Petition Date: September 30, 2021
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 21-11708
Debtor's Counsel: Gabriel Del Virginia, Esq.
LAW OFFICES OF GABRIEL DEL VIRGINIA
30 Wall Street 12th Floor
New York, NY 10005
Tel: 212-371-5478
E-mail: gabriel.delvirginia@verizon.net
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Tom Sullivan, president, sole
shareholder.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/QNSMHMY/Bar_13_Inc__nysbke-21-11708__0001.0.pdf?mcid=tGE4TAMA
BARTLEY INDUSTRIES: Seeks to Tap B. David Sisson as Legal Counsel
-----------------------------------------------------------------
Bartley Industries, Inc. seeks approval from the U.S. Bankruptcy
Court for the Western District of Oklahoma to employ the Law
Offices of B. David Sisson to serve as legal counsel in its Chapter
11 case.
The firm's services include:
(a) advising the Debtor regarding its powers and duties in the
continued operation of its business;
(b) preparing legal papers; and
(c) performing all other legal services for the Debtor.
B. David Sisson, Esq., the attorney primarily responsible for this
engagement, will be paid at his hourly rate of $300.
In addition, the firm will be reimbursed for expenses incurred.
The Debtor paid the firm an initial retainer of $15,000.
Mr. Sisson disclosed in a court filing that his firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
B. David Sisson, Esq.
Law Offices of B. David Sisson
305 E. Comanche St.
Norman, OK 73070-0534
Telephone: (405) 447-2521
Facsimile: (405) 447-2552
Email: sisson@sissonlawoffice.com
About Bartley Industries
Bartley Industries Inc., a company that offers electrical
maintenance, repair and installation services based in Norman
Okla., filed a petition for Chapter 11 protection (Bankr. W.D.
Okla. Case No. 21-12565) on Sept. 25, 2021, listing $1,733,842 in
total assets and $2,003,791 in total liabilities. Donna Bartley,
president, signed the petition. The Law Offices of B. David Sisson
serves as the Debtor's legal counsel.
BGT INTERIOR: Wins Cash Collateral Access Thru Oct 31
-----------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas,
Houston Division, has authorized BGT Interior Solutions, Inc. to
use cash collateral through October 31, 2021, to pay the actual,
necessary and ordinary expenses of its business, pursuant to the
budget, with a 5% variance.
As adequate protection for the Debtor's use of cash collateral,
Veritex Community Bank is granted a continuing valid, binding,
enforceable, and automatically perfected postpetition security
interest in, and replacement liens on all assets of the Debtor and
its estate to the extent of the diminution in value of the Lender's
collateral.
The U.S. Small Business Administration, as Prepetition Junior
Secured Lender, is granted a continuing valid, binding,
enforceable, and automatically perfected postpetition security
interest in, and replacement liens on all assets of the Debtor and
its estate, together with the proceeds thereof, to the extent of
the diminution in value of the SBA's collateral. The replacement
liens will be junior to Veritex's replacement lien.
Any State Tax Liens of the Texas Comptroller of Public Accounts
will not be primed by nor made subordinate to any liens granted to
any party, to the extent such State Tax Liens are valid, senior,
perfected and unavoidable, and rights of any party in interest to
object to the priority, validity, amount and extent of the claims
and State Tax Liens are fully preserved.
All State Tax Lien(s) will continue, and the Comptroller will be
granted a replacement lien on all of the Debtor's property to the
extent of the diminution in value of the Comptroller's collateral.
All replacement liens will attach in the same order of priority as
existed on the Petition Date.
A final hearing on the matter is scheduled for October 20 at 9
a.m.
A copy of the order and the Debtor's budget for the period from
October 8 to 29 is available at https://bit.ly/3zXj5bi from
PacerMonitor.com.
The Debtor projects $369,746 in beginning balance for the period.
About BGT Interior Solutions, Inc.
BGT Interior Solutions, Inc. owns and operates a business known as
BGT Interior Services, Inc., which provides multi-family luxury
interior finish packages to the construction industry in Texas and
nationwide. The company specializes in custom turn-key flooring and
countertop packages to fit a variety of multi-family, hospitality,
or commercial settings. The company offers custom design services
and interior finish packages, providing its customers a single
point of contact from fabrication to installation.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 21-32124) on June 23,
2021. In the petition signed by Robert Wagner, vice president and
director, the Debtor disclosed up to $50,000 in both assets and
liabilities.
Judge Eduardo V. Rodriguez oversees the case.
Kimberly A. Bartley, Esq., at Waldron & Schneider, L.L.P. is the
Debtor's counsel.
Veritex Community Bank, as creditor, is represented by Crady Jewett
McCulley & Houren LLP.
BLUE CROWN: Gets OK to Hire Maureen Hamilton as Real Estate Agent
-----------------------------------------------------------------
Blue Crown Racing LLC received approval from the U.S. Bankruptcy
Court for the District of Arizona to employ Maureen Hamilton, a
real estate agent at Hunt Real Estate Era.
The Debtor needs the assistance of a real estate agent to market
its real property at 29922 N. 168th St., Rio Verde, Ariz.
Ms. Hamilton will receive a commission of 4 percent of the
property's sale price.
Ms. Hamilton disclosed in a court filing that she does not
represent interests adverse to the Debtor and its estate.
The agent can be reached at:
Maureen Hamilton
Hunt Real Estate Era
7308 E. Deer Valley Road, Suite 100
Scottsdale, AZ 85255
Telephone: (480) 427-3500
About Blue Crown Racing
Blue Crown Racing LLC filed a voluntary petition for Chapter 11
protection (Bankr. D. Ariz. Case No. 19-00661) on Jan. 21, 2019,
listing up to $1 million in assets and up to $500,000 in
liabilities. Judge Daniel P. Collins oversees the case. The
Debtor tapped Carmichael & Powell, PC as legal counsel and Bearnson
& Caldwell, LLC as special counsel.
BOY SCOUTS: Claimants' Attorneys Fees to Have Separate Review
-------------------------------------------------------------
Rick Archer of Law360 reports that a Delaware bankruptcy judge told
lawyers representing sexual abuse claimants in the Boy Scouts'
Chapter 11 case Wednesday, September 29, 2021, that she will take a
separate look at their fees request, and will require that ballots
submitted on behalf of their clients contain information about
which ones were contacted and how they voted.
During a virtual afternoon hearing, U.S. Bankruptcy Judge Laurie
Selber Silverstein told tort attorneys they would have to attach
logs documenting their solicitation of client votes for any
collective ballots they submit, and that she will not "glom" the
legal fees of a tort claimants coalition onto the bankruptcy plan.
About Boy Scouts of America
The Boy Scouts of America -- https://www.scouting.org/ -- is a
federally chartered non-profit corporation under title 36 of the
United States Code. Founded in 1910 and chartered by an act of
Congress in 1916, the BSA's mission is to train youth in
responsible citizenship, character development, and self-reliance
through participation in a wide range of outdoor activities,
educational programs, and, at older age levels, career-oriented
programs in partnership with community organizations. Its national
headquarters is located in Irving, Texas.
The Boy Scouts of America and affiliate Delaware BSA, LLC, sought
Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-10343) on
Feb. 18, 2020, to deal with sexual abuse claims.
Boy Scouts of America was estimated to have $1 billion to $10
billion in assets and at least $500 million in liabilities as of
the bankruptcy filing.
The Debtors have tapped Sidley Austin LLP as their bankruptcy
counsel, Morris, Nichols, Arsht & Tunnell LLP as Delaware counsel,
and Alvarez & Marsal North America, LLC as financial advisor. Omni
Agent Solutions is the claims agent.
The U.S. Trustee for Region 3 appointed a tort claimants' committee
and an unsecured creditors' committee on March 5, 2020. The tort
claimants' committee is represented by Pachulski Stang Ziehl &
Jones, LLP, while the unsecured creditors' committee is represented
by Kramer Levin Naftalis & Frankel, LLP.
BOY SCOUTS: Coalition Opposes Plan Delay, Touts $1.887-Bil. Fund
----------------------------------------------------------------
The Coalition of Abused Scouts for Justice ("the Coalition")
commented on Sept. 29 upon the conclusion of the Disclosure
Statement Hearing pertaining to the Boy Scouts of America's Chapter
11 bankruptcy case:
"The Coalition of Abused Scouts for Justice was formed with two
common goals: ensuring that every single sexual abuse survivor is
compensated, with no survivor left behind; and establishing the
largest possible compensation fund for all survivors, to be
distributed as expeditiously as possible.
"Nineteen months have elapsed since the Boy Scouts of America
sought bankruptcy protection. During this time, survivors have
waited patiently for justice and for compensation, but they cannot
wait much longer. Attorneys for the Boy Scouts have stated that the
organization will not be solvent if this case drags on much
longer.
"The Coalition was satisfied, but not surprised, that the Court
denied the motion filed by the Tort Claimants' Committee (TCC) to
delay the disclosure statement hearing by an additional two weeks.
It was an unnecessary and predictable stall tactic. Each month
this bankruptcy drags on is another month in which legal and
related expenses accrue, denying survivors of their rightful
compensation.
"Advisors to the Coalition estimate that the case could stretch on
for the next five-to-ten years if the Boy Scouts of America goes
into a Chapter 7 liquidation, as the TCC would prefer to see
happen. Under that outcome, survivors will be denied their
compensation for years, which will be further reduced due to
additional legal expenses.
"Unlike the Coalition, the TCC has no plan to compensate survivors
and has not created a multi-billion-dollar compensation fund for
survivors through its efforts to reach settlements with insurers
and sponsoring organizations to build the most robust fund
possible."
On September 14th, the Coalition -- a group comprised of 26 law
firms who collectively represent more than 63,000 childhood sexual
assault abuse survivors -- secured settlements with one of Boy
Scouts of America's insurers, Hartford Financial Services Group,
for $787 million, and one of its chartered organizations, The
Church of Jesus Christ of Latter-day Saints, for $250 million.
Earlier, in July, the Coalition secured an $850 million settlement,
consisting of a value of $250 million from Boy Scouts of America
and $600 million from its more than 250 local councils. This
brings the total amount of monetary compensation available thus far
to survivors to $1.887 billion, with additional settlements
expected in the coming weeks. These agreements are supported by
Coalition members, as well as Boys Scouts of America, local Boy
Scouts councils, and the future claims representative.
Negotiations with other insurers and sponsoring and chartered
organizations are actively ongoing.
Survivors will soon have the opportunity to vote on the broadly
supported restructuring plan, which is expected to include
settlements with additional chartered and sponsoring organizations,
insurers, and other third parties, further increasing the size of
this historic, multi-billion-dollar settlement.
About Boy Scouts of America
The Boy Scouts of America -- https://www.scouting.org/ -- is a
federally chartered non-profit corporation under title 36 of the
United States Code. Founded in 1910 and chartered by an act of
Congress in 1916, the BSA's mission is to train youth in
responsible citizenship, character development, and self-reliance
through participation in a wide range of outdoor activities,
educational programs, and, at older age levels, career-oriented
programs in partnership with community organizations. Its national
headquarters is located in Irving, Texas.
The Boy Scouts of America and affiliate Delaware BSA, LLC, sought
Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-10343) on
Feb. 18, 2020, to deal with sexual abuse claims.
Boy Scouts of America was estimated to have $1 billion to $10
billion in assets and at least $500 million in liabilities as of
the bankruptcy filing.
The Debtors have tapped Sidley Austin LLP as their bankruptcy
counsel, Morris, Nichols, Arsht & Tunnell LLP as Delaware counsel,
and Alvarez & Marsal North America, LLC as financial advisor. Omni
Agent Solutions is the claims agent.
The U.S. Trustee for Region 3 appointed a tort claimants' committee
and an unsecured creditors' committee on March 5, 2020. The tort
claimants' committee is represented by Pachulski Stang Ziehl &
Jones, LLP, while the unsecured creditors' committee is represented
by Kramer Levin Naftalis & Frankel, LLP.
BOY SCOUTS: Preparing for Abuse Victims' Vote on Plan
-----------------------------------------------------
Steven Church of Bloomberg News reports that the Boy Scouts of
America are preparing to ask sex abuse victims to vote for a $1.6
billion trust fund to settle their claims in a key step toward
ending its contentious bankruptcy.
The proposal sets potential payments based on the type of
misconduct, ranging from $3,500 for allegations that did not
include any physical touching to $600,000 for the most severe acts
of sexual abuse. Those estimates are base amounts that assume
there is enough money to fully cover all claims.
In the coming months, victims will be asked to read a disclosure
statement that describes the trust and how it would pay their
claims. Depending on how many people apply to the trust and
whether more money comes into the fund, victims could collect as
little as 21% of the value of their claims to as much as 100%,
according to court documents.
U.S. Bankruptcy Judge Laurie Selber Silverstein will take the votes
into account when she holds a hearing in late January to decide
whether to approve the trust fund as part of the Boy Scouts
bankruptcy exit plan. Wednesday, Judge Silverstein finished a
multi-day court hearing held by video about the disclosure
statement and the voting rules.
Two of the main victim groups involved in the bankruptcy disagree
on the exit plan, which is built on a series of settlements. Those
groups' insurers who will help fund the trust and the Boy Scouts
have been in mediation trying to settle their differences.
Payment Plan
Under the payout plan, the Boy Scouts, their local counsels and
insurance companies will set up a trust with at least $1.6 billion.
That number was used in court documents to estimate recoveries, but
it may go up depending on the results of mediation, which resumed
Wednesday.
"Use the next two days wisely," Judge Silverstein told lawyers
before the hearing ended and they returned to settlement talks.
An official committee set up by the U.S. Trustee, an arm of the
U.S. Department of Justice, opposes the settlements and the plans,
arguing it pays too little. A group set up by lawyers representing
more than 65,000 abuse victims supports the proposal. That group,
the Coalition of Abused Scouts for Justice, signed a key settlement
agreement with insurers and the Boy Scouts.
Under that settlement, Hartford Accident and Indemnity Co. and
three other insurers will contribute $787 million to a trust fund
for victims. The Church of Jesus Christ of Latter-day Saints,
which has run scouting programs for decades, will pay $250
million.
About Boy Scouts of America
The Boy Scouts of America -- https://www.scouting.org/ -- is a
federally chartered non-profit corporation under title 36 of the
United States Code. Founded in 1910 and chartered by an act of
Congress in 1916, the BSA's mission is to train youth in
responsible citizenship, character development, and self-reliance
through participation in a wide range of outdoor activities,
educational programs, and, at older age levels, career-oriented
programs in partnership with community organizations. Its national
headquarters is located in Irving, Texas.
The Boy Scouts of America and affiliate Delaware BSA, LLC, sought
Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-10343) on
Feb. 18, 2020, to deal with sexual abuse claims.
Boy Scouts of America was estimated to have $1 billion to $10
billion in assets and at least $500 million in liabilities as of
the bankruptcy filing.
The Debtors have tapped Sidley Austin LLP as their bankruptcy
counsel, Morris, Nichols, Arsht & Tunnell LLP as Delaware counsel,
and Alvarez & Marsal North America, LLC as financial advisor. Omni
Agent Solutions is the claims agent.
The U.S. Trustee for Region 3 appointed a tort claimants' committee
and an unsecured creditors' committee on March 5, 2020. The tort
claimants' committee is represented by Pachulski Stang Ziehl &
Jones, LLP, while the unsecured creditors' committee is represented
by Kramer Levin Naftalis & Frankel, LLP.
BOY SCOUTS: Victims Get Opposing Restructuring Plan Vote Advice
---------------------------------------------------------------
Soma Biswas and Becky Yerak of The Wall Street Journal report that
sexual-abuse victims who filed claims in the Boy Scouts of America
bankruptcy case are getting conflicting advice on whether to
approve the organization's restructuring plan and accept more than
$1.8 billion in settlements.
The Boy Scouts, which filed for bankruptcy in February 2020 to
resolve sex abuse litigation, could exit chapter 11 if its
restructuring plan is approved.
A coalition of law firms representing a majority of victims filed
court papers Monday advising all victims to vote in favor of the
plan and the settlements it provides, while lawyers for the
official committee of abuse victims advised them to reject the
plan, saying the settlements are too small.
About Boy Scouts of America
The Boy Scouts of America -- https://www.scouting.org/ -- is a
federally chartered non-profit corporation under title 36 of the
United States Code. Founded in 1910 and chartered by an act of
Congress in 1916, the BSA's mission is to train youth in
responsible citizenship, character development, and self-reliance
through participation in a wide range of outdoor activities,
educational programs, and, at older age levels, career-oriented
programs in partnership with community organizations. Its national
headquarters is located in Irving, Texas.
The Boy Scouts of America and affiliate Delaware BSA, LLC, sought
Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-10343) on
Feb. 18, 2020, to deal with sexual abuse claims.
Boy Scouts of America was estimated to have $1 billion to $10
billion in assets and at least $500 million in liabilities as of
the bankruptcy filing.
The Debtors have tapped Sidley Austin LLP as their bankruptcy
counsel, Morris, Nichols, Arsht & Tunnell LLP as Delaware counsel,
and Alvarez & Marsal North America, LLC as financial advisor. Omni
Agent Solutions is the claims agent.
The U.S. Trustee for Region 3 appointed a tort claimants' committee
and an unsecured creditors' committee on March 5, 2020. The tort
claimants' committee is represented by Pachulski Stang Ziehl &
Jones, LLP, while the unsecured creditors' committee is represented
by Kramer Levin Naftalis & Frankel, LLP.
BRAIN ENERGY: Seeks Cash Collateral Access
------------------------------------------
Brain Energy Holdings LLC asks the U.S. Bankruptcy Court for the
Eastern District of New York for authority to use cash collateral,
in which 153 Clinton Street Lender LLC asserts an interest.
The Debtor's bankruptcy filing was precipitated by its default in
connection with amounts owed to the Lender. Specifically, on or
about December 20, 2018, the Lender made a loan to the Debtor,
which was evidenced by:
(i) Consolidated, Amended and Restated Land Loan Promissory
Note, executed by the Debtor and made payable to the order of the
Lender in the original principal amount of $3,040,000, which
matured on January 1, 2020, secured by, among other things: (a)
Consolidation, Extension and Modification Agreement made by the
Debtor; and (b) Assignment of Leases and Rents made by the Debtor,
and
(ii) Building Loan Promissory Note, executed by the Debtor and
made payable to the order of the Lender in the original principal
amount of $260,000, secured by, among other things, the Building
Loan Mortgage and Security Agreement made by the Debtor. Repayment
of the amounts owed to the Lender is further secured by a personal
Guaranty executed by Mr. Anthony Spartalis, the Debtor's principal
and sole member, and a lien against the membership interests in the
Debtor held by Mr. Spartalis which he pledged as collateral.
The Debtor subsequently defaulted on its obligations to the Lender
by failing to make the payment of all principal, interest and other
amounts due on the January 1, 2020 maturity date. On February 24,
2021, the Debtor, Mr. Spartalis and the Lender entered into a
Forbearance Agreement.
The Lender subsequently demanded payment from the Debtor and Mr.
Spartalis in the amount of approximately $4,200,000. When payment
was not made as demanded, the Lender attempted to enforce its
rights with regard to the membership interests in the Debtor held
by Mr. Spartalis and a sale thereof was noticed to be held on April
15,2021.
On April 14, 2021, Mr. Spartalis filed a personal petition for
relief under subchapter V of Chapter 11 of the Bankruptcy Code with
the Bankruptcy Court so as to slay the forced sale of his
membership interests in the Debtor, as well as any other
collection/enforcement efforts by the Lender, while he pursued an
immediate market sale of the Property on behalf of the Debtor.
The amounts owed by the Debtor to the Lender totaled not less than
$4,285,466.92 as of June 24, 2021. Interest has and continues to
accrue thereon at the rate of $2,070 per day, together with such
other interest, costs and fees, including legal fees, all as may be
provided in the Loan Documents which amount is due and payable in
full. The Indebtedness is secured by the liens and security
interests held by the Lender, including the Mortgage and the
Assignment of Rents, all of which are valid and duly perfected.
Ultimately, on August 23, 2021, the Debtor, Mr. Spartalis and the
Lender entered into a Settlement Agreement, which provides for,
among other things, the filing of a chapter 11 petition by the
Debtor along with a proposed chapter 11 plan of liquidation
providing for the sale of the Property through a Court-approved
auction process. On August 25, 2021, Mr. Spartalis filed a motion
seeking to voluntarily dismiss his Chapter 11 case. The motion was
returnable on September 29, 2021.
On September 13, 2021, the Debtor filed a proposed Chapter 11 Plan
of Liquidation, along with a corresponding proposed Disclosure
Statement. Briefly, the Plan contemplates a sale of the Property to
the highest bidder at an auction. The parties presently anticipate
that the auction with regard to the Building will be conducted on
October 21, 2021 with the assistance of Maltz Auctions.
As partial adequate protection for the Debtor's use of cash
collateral, the Lender will be granted valid, perfected, and
enforceable liens upon and security interests in any Rents and/or
any and all other types of property that would have been subject to
the Pre-Petition Liens that may come into existence after the
Petition Date. The Replacement Liens will have the same priority,
extent and validity as the Pre-Petition Liens of the Lender.
A copy of the motion is available at https://bit.ly/3F1x9E2 from
PacerMonitor.com.
About Brain Energy Holdings
Brain Energy Holdings, LLC is a single asset real estate debtor (as
defined in 11 U.S.C. Section 101(51B)). It is the fee simple owner
of a 6-floor mixed-use brownstone located at 153 Clinton St.,
Brooklyn, N.Y., having a current value of $4.5 million.
Brain Energy Holdings filed its voluntary petition for Chapter 11
protection (Bankr. E.D.N.Y. Case No. 21-42150) on Aug. 24, 2021,
disclosing $4,501,100 in total assets and $4,411,145 in total
liabilities. Anthony Spartalis, as managing member, signed the
petition.
Judge Nancy Hershey Lord oversees the case.
The Debtor tapped Pick & Zabicki, LLP as legal counsel and Frances
M. Caruso as bookkeeper.
BUENA PARK: Court Denies Disclosure Statement Approval
------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
denied approval to the Disclosure Statement of Buena Park Drive
LLC.
The Honorable Victoria S. Kaufman convened a hearing on Sept. 23,
2021, for approval of the Disclosure Statement Describing the
Debtor's Chapter 11 Plan of Reorganization. Based on the reasons
stated on the record and the objections filed to the Disclosure
Statement as to why it fails to contain adequate information, the
Court denied approval of the Disclosure Statement.
The U.S. Trustee and creditor National Loan Acquisitions Company
filed objections to the Disclosure Statement.
As reported in the TCR, Buena Park Drive, LLC, filed with the U.S.
Bankruptcy Court for the Central District of California a
Disclosure Statement describing Chapter 11 Plan dated July 22,
2021. The Debtor's Plan is a Liquidating Plan, with the net
proceeds and revenues generated through the sale of the Buena Park
Drive, LLC Real Property to fund the plan payments. Allowed Class
3 General Unsecured Claims will receive 100% of their allowed
claims on or before December 30, 2022.
A full-text copy of the Disclosure Statement dated July 22, 2021,
is available at https://bit.ly/2UHgP9x from PacerMonitor.com at no
charge.
About Buena Park Drive
Buena Park Drive LLC, based in Studio City, CA, manages real
estate. It owns the real property located at 3668 Buena Park Drive
Studio City, CA and 3670 Buena Park Drive Studio City, CA.
Buena Park Drive filed a Chapter 11 petition (Bankr. C.D. Cal. Case
No. 20-12046) on Nov. 14, 2020. In the petition signed by Justin
Williams, managing member, the Debtor was estimated to have $1
million to $10 million in both assets and liabilities. The Hon.
Victoria S. Kaufman oversees the case. Corcovelos Law Group,
serves as the Debtor's bankruptcy counsel.
CASTLEROCK DEVELOPMENT: Wins Final OK on Cash Collateral Access
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Georgia,
Gainesville Division, authorized Castlerock Development Services,
LLC to use cash collateral on a final basis and provide adequate
protection.
The Debtor requires the use of cash collateral to continue its
operations and preserve the value of its assets.
The Debtor is a borrower on various loans with John Deere
Construction and Forestry Company, Cowin Equipment Company, Inc.,
GM Financial, and Wells Fargo Bank, N.A., which assert security
interests in certain of the Debtor's assets.
The Debtor is the borrower under two finance agreements with GM
Financial with $115,814.18 owed as of the Petition Date. In
addition, the Debtor is a borrower under a finance agreement from
Cowin but the Debtor no longer possesses the underlying financed
equipment.
The Debtor is also a borrower on a loan from John Deere which was
used to finance certain equipment, with an approximate amount owed
as of the Petition Date of $20,844.20. Similarly, the Debtor is a
borrower on a finance agreement with Wells Fargo with an
approximate amount owed of $40,941.08, which was also used to
finance certain equipment.
Additionally, Yancey Bros. Co. is a judgment lien creditor by
virtue of a Judgment entered against the Debtor on October 21,
2020, in the Superior Court of Cobb County and the Writ of Fieri
Facias concerning the same. Yancey Bros Co. asserts an interest in
the Cash Collateral and reserves all rights related thereto.
As adequate protection for the Debtor's use of cash collateral, the
Lenders and any other secured creditor, to the extent they hold
valid liens, security interests, or rights of setoff as of the
Petition Date under applicable law, are granted valid and
properly-perfected liens on all property acquired by the Debtor
after the Petition Date.
A copy of the order is available for free at https://bit.ly/3zKHNeF
from PacerMonitor.com.
About Castlerock Development Services, LLC
Castlerock Development Services, LLC provides land development and
erosion control services as well as related construction site
maintenance work like grading, grubbing, utility installation,
detention pond clean-outs, and concrete work.
The Company filed a Chapter 11 petition (Bankr. N.D. Cal. Case No.
21-20848) on August 5, 2021. The petition was signed by Jody Lewis
as president/managing member. On the day of petition, the Debtor
estimated $1 million to $10 million in both assets and
liabilities.
Judge James R. Sacca oversees the case.
Rountree, Leitman & Klein, LLC serves as the Debtor's counsel.
CERTA DOSE: Seeks to Hire Huebscher & Co. as Financial Advisor
--------------------------------------------------------------
Certa Dose, Inc., seeks approval from the U.S. Bankruptcy Court for
the Southern District of New York to hire Huebscher & Co. to serve
as financial advisor in its Chapter 11 case.
The firm's services include:
1. participating in credit facility negotiations;
2. assisting the Debtor in evaluating indications of interest
and proposals regarding any transaction from potential acquirors or
investors;
3. managing the preparation of reporting related to the
restructuring process;
4. analyzing the business and financial impact of various
restructuring initiatives;
5. providing the Debtor with other general restructuring
services;
6. assisting in the preparation of monthly operating reports;
and
7. providing strategic financial advice regarding legal
strategies.
The firm's hourly rates are as follows:
Eric M. Huebscher $425 per hour
Managing Directors $375 per hour
Senior Consultants/Directors $325 per hour
Professional Staff $150 per hour
As disclosed in court filings, Huebscher & Co. neither holds nor
represents interests adverse to the Debtor's estate.
The firm can be reached through:
Eric M. Huebscher
Huebscher & Co.
630 3rd Avenue, 21st Floor
New York, NY 10017
Phone: (646) 584-3141
Fax: (212) 202-3503
Email: info@HuebscherConsulting.com
About Certa Dose
Certa Dose Inc. develops, sells and licenses pharmaceutical
products and technology. Its principal business is developing,
selling and licensing its pharmaceutical products and technology.
Certa Dose was designated as an innovation company by Johnson &
Johnson and has received a grant and mentorship from J & J.
Certa Dose filed a petition for Chapter 11 protection (Bankr.
S.D.N.Y. Case No. 21-11045) on May 30, 2021, listing up to $50
million in assets and up to $100 million in liabilities. Caleb S.
Hernandez, president of Certa Dose, signed the petition.
Judge Lisa G. Beckerman presides over the case.
Norma Ortiz, Esq., at Ortis & Ortiz, LLP and Huebscher & Co. serve
as the Debtor's legal counsel and financial advisor, respectively.
CHESAPEAKE ENERGY: To Name Domenic Dell'Osso as Next CEO
--------------------------------------------------------
Liz Hampton, David French, and Jessica Resnick-Ault of Reuters
reports that U.S. shale producer Chesapeake Energy Corp is
preparing to name long-time finance chief Domenic Dell'Osso Jr. as
its next top executive, according to three people familiar with the
matter.
Dell'Osso, who has been with the company since 2008, would replace
board chairman Mike Wichterich, who became interim CEO after
ousting former chief Doug Lawler in April 2021, the people said.
Chesapeake, one of the largest natural gas producers in the United
States, emerged this year from a Chapter 11 bankruptcy
reorganization in which it cut $7 billion in debt. Last month, it
agreed to buy Louisiana natural gas rival Vine Energy for $615
million in cash and stock.
The company has suffered a exodus of executives under Wichterich,
including its general counsel, vice president of exploration and
production, and chief accountant.
Dell'Osso is one of the few long-tenured executives to remain after
Lawler's departure. He previously worked as an investment banker
with Jefferies & Co.
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.
CITY WIDE: Wins Continued Use of Cash Collateral Access
-------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas has
authorized City Wide Community Development Corp. to continue using
cash collateral under the Amended Cash Collateral Order entered on
August 5, 2021.
The Debtor and the Secured Parties have agreed to the Debtor's
continued use of cash collateral under the Amended Cash Collateral
Order.
The Court says that the terms of Interim Order will continue to
apply with full force and effect.
In the event of any inconsistency between the new Order and the
Amended Interim Order, the terms of the new Order will apply.
A hearing on the matter is scheduled for October 5, 2021 at 10:30
a.m.
A copy of the order and the Debtor's budget is available for free
at
https://bit.ly/3zUCt8y from PacerMonitor.com.
About City-Wide Community Development Corp.
City-Wide Community Development Corp. and its affiliates are
primarily engaged in renting and leasing real estate properties.
City-Wide Community Development Corp. and affiliates Lancaster
Urban Village Residential, LLC and Lancaster Urban Village
Commercial, LLC, sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 21-30847) on April
30, 2021. In the petitions signed by Sherman Roberts, president
and chief executive officer, the Debtors disclosed $12,026,657 in
assets and $10,332,946 in liabilities.
Judge Michelle V. Larson oversees the cases.
The Debtors tapped Wiley Law Group, PLLC, as legal counsel, Neal A.
Walker, CPA, P.C. as accountant, and Capstone Real Estate Services,
Inc. as property manager.
CLEAVER-BROOKS CO: S&P Assigns 'B-' ICR on Corporate Restructuring
------------------------------------------------------------------
S&P Global Ratings assigned its 'B-' issuer credit rating and
stable outlook to The Cleaver-Brooks Co., Inc., same as its rating
and outlook on Cleaver-Brooks Inc., which it withdrew.
S&P's 'B-' issue-level and '4' recovery ratings on the company's
senior secured notes are unchanged.
Cleaver-Brooks Inc. completed a corporate restructuring to separate
its manufacturing and services operations from its legacy asbestos
assets and liabilities. The company will now operate as The
Cleaver-Brooks Co. Inc. Subsequent to the restructuring, it sold
Cleaver-Brooks Inc., which holds the legacy asbestos assets and
liabilities and certain real estate assets, to Global Risk Capital
Group of Cos.
Cleaver-Brooks ended fiscal 2021 with higher than expected leverage
as low order input at the beginning of the fiscal year prompted
weaker operating results; however, orders began rebounding in the
fourth fiscal quarter and its order backlog is now at a record
high. The COVID-19 pandemic-related economic downturn and volatile
oil prices reduced Cleaver-Brooks' order input through the first
three quarters of fiscal 2021, leading to a decline its order
backlog to a fiscal-year-low of $136.3 million as of Dec. 31, 2020.
As a result, sales declined 5.5% to $383.1 million in fiscal 2021.
The sales decline was primarily driven by a decrease in its
Packaged Boilers & Burners group due to delayed customer projects
and reduced demand for its industrial boilers. Lower volumes, an
unfavorable product mix, and one-time costs related to its China
operations decreased profitability, causing S&P Global
Ratings-adjusted leverage to rise above 9x at the end of fiscal
2021. Orders have since rebounded across all business groups, and
we expect this to continue through fiscal 2022. At the end of the
first fiscal quarter, Cleaver-Brooks' order backlog increased to a
record $202 million. S&P believes high-single-digit percentage
revenue growth supported by strong order input, along with greater
fixed cost leverage and the exit of its unprofitable China
operations will drive an increase in earnings and cash flow. S&P
expects adjusted debt to EBITDA will improve near 7x over the next
12 months.
In the third quarter of fiscal 2021, Cleaver-Brooks exited its
operations in China. In 2016, Cleaver-Brooks expanded into China
given the growth opportunity in its sizable burner market and
favorable regulations in Beijing, which aligned with the company's
technology and product offering. However, after absorbing losses
over the last several years due to challenging operating conditions
stemming from the industrial slowdown in China, trade war, and
COVID-19 pandemic, Cleaver-Brooks reduced the scope of its China
operations. During the fiscal year, Cleaver-Brooks recorded about
$7.6 million of restructuring costs, inventory write-downs, and
asset impairments related to this exit. S&P believes the majority
of the restructuring charges have been recognized and expect the
impact on earnings to be minimal over the next 12 months.
Cleaver-Brooks continues to face challenges including high steel
prices and global supply chain disruptions. Although uncertainties
related to the COVID-19 pandemic have subsided, Cleaver-Brooks
continues to face operating challenges such as significant cost
inflation, parts shortages, and extended lead times from its
suppliers. In the fourth quarter of fiscal 2021, Cleaver-Brooks
began adding a steel surcharge to customer quotes to counteract the
negative impact of extremely high steel prices. The surcharge is
expected to offset the impact of higher steel costs, albeit at a
three- to six-month lag, as Cleaver-Brooks executes on orders
included in the backlog prior to the surcharge. In addition, it is
working closely with its suppliers to remain ahead of potential
parts shortages and, where needed, is increasing its safety stock
of parts. S&P said, "Given Cleaver-Brooks' proactive measures to
mitigate these challenges, we believe the constraint on
profitability will be temporary. We forecast margin growth in the
second half of the fiscal year will result in adjusted EBITDA
margins between 13% and 14% in fiscal 2022."
The stable outlook reflects S&P's view that Cleaver-Brooks will
generate positive free cash flow and maintain adequate liquidity
over the next 12 months, despite its expectations for weak credit
metrics and leverage near 7x.
S&P could lower its rating if:
-- Operating performance deteriorates to the extent that the
company cannot generate sustained positive free operating cash flow
(FOCF);
-- It does not amend or refinance its debt maturities in a timely
manner;
-- Diminishing liquidity results in a greater reliance on its
asset-based lending (ABL) facility to fund operations; or
-- Margins contract and leverage weakens to the point S&P views
the capital structure as unsustainable in the long term.
S&P could raise its rating if cost-reduction actions and investment
in key initiatives improve margins such that S&P believes leverage
will remain below 6.5x.
CMC II LLC: Consulate Health to Pay $4.5 Mil. of $258 Mil. Judgment
-------------------------------------------------------------------
Danielle Brown of McKnight's Long Term Care News reports that a
U.S. Bankruptcy Court in Delaware has approved a settlement between
Florida-based nursing home chain Consulate Health Care and the
Department of Justice that reduced a $258 million judgment against
the operator to just $4.5 million.
Consulate confirmed the finalized agreement after a final hearing
was held on Wednesday. The company declined comment after an
initial report of the settlement was detailed earlier in the month,
opting to wait until the agreement was finalized. A spokeswoman
also confirmed previously reported details of the settlement
remained in place.
"In what has been a decade-long battle to litigate claims brought
against two care centers prior to their affiliation with our
company, we are beyond relieved and grateful that a fair settlement
has finally been reached," Consulate said in a statement to
McKnight's Long-Term Care News.
"We appreciate everyone's collaboration and diligence throughout
this process, which has ultimately resulted in the ideal outcome
for all parties, a sentiment echoed in today's hearing at which no
objections were filed," the company added.
The settlement comes after six of its affiliated nursing homes
filed for Chapter 11 bankruptcy in response to a Florida federal
appeals court reinstating $257.7 million of an original $347.9
million verdict in a False Claims Act case against the entities.
In the original case, whistleblower Angela Ruckh, a one-time
employee at two centers owned by La Vie Rehab in Florida, filed
suit against the company, accusing it in 2011 of overcharging
Medicare and Medicaid by inflating therapy claims.
La Vie Rehab's ownership was transferred to Consulate Health Care
in 2012 and the latter inherited the case.
Under the settlement, the United States will instead receive $3.375
million and Ruckh would get $1.125 million.
"This is a giant step forward, and although there is still much to
do in the days and weeks ahead, we look forward to moving beyond
what has been an exhaustive and complex process and dedicating all
of our energy towards serving our communities and those entrusted
to our care," Consulate officials said.
About CMC II LLC
CMC II, LLC, 207 Marshall Drive Operations LLC, 803 Oak Street
Operations LLC and three inactive affiliates sought Chapter 11
protection (Bankr. D. Del. Lead Case No. 21-10461) on March 1,
2021.
CMC II, LLC, et al., are part of a group of Consulate Health care
corporate affiliates that manage and operate 140 skilled nursing
facilities. CMC II provides management and support services to
approximately 140 SNFs, each of which is operated by an affiliate
of the Debtors under the common ownership of non-Debtor LaVie Care
Centers, LLC, doing business as Consulate Health Care. 207
Marshall Drive Operations LLC operates Marshall Health and
Rehabilitation Center, a 120-bed SNF located in Perry, Florida. 803
Oak Street Operations LLC operates Governor's Creek Health and
Rehabilitation, a 120-bed SNF located in Green Cove Springs, Fla.
CMC II estimated assets and debt of $100 million to $500 million as
of the bankruptcy filing.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Chipman Brown Cicero & Cole, LLP, as counsel;
Alvarez & Marsal North America, LLC as restructuring advisor; and
Evans Senior Investments as broker. Stretto is the claims agent.
COUNCIL FOR AID: Unsecureds Will Get 11.05% in Subchapter V Plan
----------------------------------------------------------------
Council for the Aid to Education, Inc., filed with the U.S.
Bankruptcy Court for the Southern District of New York a Chapter 11
Plan of Reorganization under Subchapter V dated September 27,
2021.
The Debtor is a Delaware nonprofit corporation whose mission is to
improve student outcomes. The Debtor's performance-based and
custom assessments authentically measure students' essential
college and career readiness skills and identify opportunities for
student growth.
Subchapter V contemplates under 1191(c) of the Bankruptcy Code that
the Debtor's plan provides a payout to creditors of all of the
Debtor's projected disposable income over a 3 to 5 year commitment
period ("Projected Disposable Income"). Based upon the analysis
prepared by the Debtor with the assistance of its counsel, the
Debtor's Projected Disposable Income post Effective Date over a 4
year period is approximately $719,198.00.
To make the distributions proposed under the Plan, the Debtor will
fund the Plan from the on-going operations of the Debtor. The
Debtor signed services contracts for Fiscal Year 2022 for $1.7
million with the New York Department of Education, $1.0 million
with New Meridian, and $125,000 with the Smarter Balanced
Assessment Consortium. The Debtor also forecasts additional
contracts for $1 million with the New York Department of Education
and $200,000 with the Smarter Balanced Assessment Consortium based
on historical data and recent client conversations. For fiscal year
2023, the Debtor signed a service contract with New Meridian for
$1.1 million.
Additionally, the Debtor has signed contracts for assessments in
Fiscal Year 2022 for $560,000, which has already been pre-paid, and
forecasts an additional $124,000 in contracts for assessments based
on historical data and recent client conversations.
This Plan provides for a comprehensive reorganization of the Debtor
to preserve its going concern value and future business. Under this
Plan, the Debtor, will (i) pay all of its Administrative and
Priority Claims in full on the Effective Date of the Plan (ii) make
principal, interest, and fee payments to Citibank N.A. (iii) make a
distribution to each of its Unsecured Creditors after the payment
in full to Citi in the estimated approximate amount of 11.05% of
each Unsecured Creditor's Allowed Claims.
The Plan will treat claims as follows:
* Class 1 consists of the Claim of Citibank, N.A. The Debtor
shall pay Citi interest payments and any associated attorneys' fees
on a monthly basis, and, after payment of Administrative Claims and
Professional Fee Claims, shall further pay quarterly principal
payments over the term of plan, or on a lump sum basis, in the
discretion of Debtor, until paid in full. Class 1 is Impaired.
Estimated Amount of Claims in Class 1 is $482,847.00 plus $10,000
for fees and interest, for a total of $492,847.00.
* Class 3a consists of the Claim of the Unsecured Citibank PPP
Loan. The Debtor expects that all amounts due under the PPP Loan
will be forgiven. To the extent the PPP Loan is not forgiven, it
will be paid on a pro rata basis with Class 3b from the Unsecured
Claim Distribution Amount, after Class 1 is paid in full, in
exchange for full and final satisfaction, settlement, and release
of such Claim. Upon payment of the entire Unsecured Creditor
Distribution Amount, all obligations to Unsecured Creditors under
this Plan are fully satisfied. Class 3a is Impaired. Estimated
Amount of Claims in Class 3a is $259,889.00.
* Class 3b consists of General Unsecured Claims. Each holder
shall, in exchange for full and final satisfaction, settlement, and
release of such Claim, receive its pro-rata portion of the
Unsecured Claim Distribution Amount after Class 1 is paid in full.
Upon payment of the entire Unsecured Creditor Distribution Amount,
all obligations to Unsecured Creditors under this Plan are fully
satisfied. Class 3b is Impaired. Estimated Amount of Claims in
Class 3b is $939,346.42. Estimated payment to Unsecured Creditors
shall be $103,757.67 or 11.05% dividend.
The total distributions under this Plan shall equal the Projected
Disposable Income. All distributions under this Plan will be funded
from the Reorganized Debtor's operations; or in the Debtor's sole
discretion, through post-Plan confirmation financing.
A full-text copy of the Subchapter V Plan dated September 27, 2021,
is available at https://bit.ly/3zRLTSh from PacerMonitor.com at no
charge.
Proposed Counsel for the Debtor:
James B. Sowka
Seyfarth Shaw LLP
233 South Wacker Drive, Suite 8000
Chicago, Illinois 60606
Telephone: (312) 460-5325
Email: jsowka@seyfarth.com
About Council For Aid to Education
Council For Aid To Education, Inc., is a Delaware not-for-profit
corporation which develops performance-based and custom assessments
that measure students' essential college and career readiness
skills and identify opportunities for student growth.
Council For Aid To Education sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 21-11221) on
June 30, 2021. In the petition signed by Robert J. Yayac, chief
executive officer and president, the Debtor disclosed up to $10
million in both assets and liabilities.
Judge James L. Garrity, Jr. presides over the case.
James B. Sowka, Esq., at Seyfarth Shaw LLP is the Debtor's counsel.
Jeffrey A. Cooper, Esq., at Rabinowitz, Lubetkin & Tully LLC
represents the Debtor as co-counsel. Heidi J. Sorvino serves as
the Debtor's Subchapter V Trustee.
D & M INVESTMENTS: Involuntary Chapter 11 Case Summary
------------------------------------------------------
Alleged Debtor: D & M Investments Holdings Inc.
169 Circle Drive
Bradbury, CA 91008
Involuntary Chapter
11 Petition Date: September 30, 2021
Court: United States Bankruptcy Court
Central District of California
Case No.: 21-17613
Petitioners' Counsel: William H. Brownstein, Esq.
WILLIAM H. BROWNSTEIN & ASSOCIATES,
PROFESSIONAL CORPORATION
11740 Wilshire Boulevard, Suite A2301
Los Angeles, CA 90025
Tel: 310-458-0048
E-mail: Brownsteinlaw.bill@gmail.com
A full-text copy of the Involuntary Petition is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/RR24NUY/D__M_Investments_Holdings_Inc__cacbke-21-17613__0001.0.pdf?mcid=tGE4TAMA
Alleged creditors who signed the petition:
Petitioner Nature of Claim Claim Amount
---------- --------------- ------------
CSK Global Inc. Advance of Lender $10,000
33 San Par! Avfnuf Suite 502 Fees
San Raphael, CA 94903
Hummer Construction Grading Service $219,000
238 Barranca Road
Bradbury, CA 91008
Azallamarican, LLC Advance of Lender $10,000
21052 North 61st Drive Fees
Glendale, AZ 85306
DANE HEATING: Seeks to Hire Schaefers Law Group as Special Counsel
------------------------------------------------------------------
Dane Heating & Air Conditioning, Inc., seeks approval from the U.S.
Bankruptcy Court for the Northern District of Illinois to hire
Schaefers Law Group, Ltd. as special counsel.
Schaefers Law Group, which served as the Debtor's corporate
attorney prior to its Chapter 11 filing, will assist in the
preparation of its monthly operating reports.
The firm will be paid at the rate of $275 per hour.
As disclosed in court filings, Schaefers Law Group is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Scott Schaefers
Schaefers Law Group, Ltd.
300 S. County Farm Road, Suite L
Wheaton, IL 60187
Phone: (630) 580-9968
Fax: (630) 597-2420
Email: scott@schaeferslaw.com
About Dane Heating & Air Conditioning
Dane Heating & Air Conditioning, Inc., filed a petition under
Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ill.
Case No. 21-09701) on Aug. 18, 2021, listing up to $500,000 in
assets and up to $1 million in liabilities. Ken Novak has been
appointed Subchapter V trustee for the Debtor.
Judge Deborah L. Thorne oversees the case.
Springer Larsen Greene, LLC, and Schaefers Law Group, Ltd., serve
as the Debtor's bankruptcy counsel and special counsel,
respectively.
DAVIDZON MEDIA: To File Amended Plan & Disclosures by Oct. 15
-------------------------------------------------------------
According to a docket entry, the U.S. Bankruptcy Court for the
Eastern District of New York convened on Sept. 24, 2021 a hearing
on Davidzon Media's Chapter 11 case. Representatives of the
Debtor, the U.S. Trustee, Great Elm Capital Corp., Kingsland
Development Urban Renewal LLC, Sam Katsman and Georgy Tsikhisel
appeared at the hearing. At the hearing the Debtor agreed to file
an amended plan and disclosure statement by Oct. 15, 2021. As
reflected in the record, parties are to confer on an amended joint
plan and disclosure statement.
The Court has set for Oct. 21, 2021 at 1 p.m. the hearing on the
Amended Disclosure Statement.
About Davidzon Media
Davidzon Media, Inc. filed a voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No.
21-40308) on Feb. 8, 2021. Grigory Davidzon, president, signed the
petition. At the time of filing, the Debtor disclosed less than
$50,000 in assets and between $1 million and $10 million in
liabilities.
Judge Elizabeth S. Stong oversees the case.
The Law Offices of Alla Kachan, PC, serves as the Debtor's counsel.
DCR ENGINEERING: Seeks to Tap Parrish & Parrish as Accountant
-------------------------------------------------------------
DCR Engineering Services, Inc. seeks approval from the U.S.
Bankruptcy Court for the Middle District of Florida to employ
Parrish & Parrish CPAs, PA as its accountant.
The Debtor needs the assistance of an accountant for the purpose of
preparing its tax returns, general accounting, and tax consulting
services.
Parrish & Parrish will be compensated as follows:
(a) $240 per month for monthly accounting services;
(b) $500 to $800 for the preparation of tax returns;
(c) $60 for the first 5 1099 miscellaneous forms; and
(d) $4 for each additional miscellaneous form.
Wade Parrish, a certified public accountant at Parrish & Parrish,
disclosed in the court filing that his firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Wade Parrish, CPA
Parrish & Parrish CPAs, PA
6700 S. Florida Ave., Suite 19
Lakeland, FL 33813
Telephone: (863) 709-8337
Facsimile: (863) 709-8307
Email: info@parrishcpas.com
About DCR Engineering Services
Lakeland, Fla.-based DCR Engineering Services, Inc. filed a
voluntary petition for Chapter 11 protection (Bankr. M.D. Fla. Case
No. 21-02316) on May 5, 2021, listing as much as $50 million in
both assets and liabilities. Dale C. Rossman, president, signed
the petition.
Judge Catherine Peek McEwen oversees the case.
The Debtor tapped Latham Luna Eden & Beaudine LLP as legal counsel
and Parrish & Parrish CPAs, PA as accountant.
DEA BROTHERS: Nov. 14 Hearing on Creditors' Plan Disclosures
------------------------------------------------------------
Judge Erithe A. Smith of the U.S. Bankruptcy Court for the District
of California will convene a hearing on Nov. 4, 2021 at 10:30 a.m.
to consider approval of the Disclosure Statement to the Plan
proposed for DEA Brothers Sisters, LLC by A&G Interprises, LLC,
according to a docket entry.
As reported in the TCR, Secured Creditor A&G Interprises LLC filed
with the U.S. Bankruptcy Court for the Central District of
California a Disclosure Statement describing competing Chapter 11
Plan for Debtor DEA Brothers Sisters LLC dated September 23, 2021.
Under the Plan, A&G will manage the property commonly known as
16502 S. Main St., Carson, CA 90248 (the "Property") in order to
use the rents the Property generates to pay all of the Debtor's
allowed claims. All existing ownership interests in the Debtor,
owned or asserted to be owned, are extinguished. The new stock
will be owned and transferred to A&G Interprises, LLC's Managing
Member, Ana Huezo.
A full-text copy of the A&G's Disclosure Statement dated Sept. 23,
2021, is available at https://bit.ly/2ZAfseL from PacerMonitor.com
at no charge.
About DEA Brothers Sisters
DEA Brothers Sisters, LLC, is a Laguna Hills, Calif.-based company
that owns a strip shopping center located at 16502 S. Main St.,
Carson, California.
DEA Brothers Sisters sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Cal. Case No. 21-10608) on March 10,
2021. In the petition signed by Enayat Ali Jiwani, the sole
managing member, the Debtor disclosed between $1 million and $10
million in both assets and liabilities. Judge Erithe A. Smith
oversees the case. Financial Relief Legal Advocates, Inc. and
Osborn Plasse serve as the Debtor's legal counsel.
DEMO REALTY: Court Orders Appointment of Examiner
-------------------------------------------------
Judge Elizabeth D. Katz of the U.S. Bankruptcy Court for the
District of Massachusetts ordered the appointment of an examiner in
the Chapter 11 case of Demo Realty Co., Inc.
Rockland Lease Funding Corporation sought appointment of a Chapter
11 Trustee or Examiner. Rockland argued that the appointment of an
examiner or a trustee was appropriate because (a) its collateral,
equipment used in the Debtor's business, was not properly or
adequately insured, (b) the Debtor's cash collateral payment for
the month of May 2021, was late, (c) the Debtor was not current on
its quarterly fee payments to the United States Trustee, and (d)
there were discrepancies between the Debtor's budgets and cash on
hand, all of which together raised "serious concerns over possible
incompetence, dishonesty, misconduct or gross negligence."
William K. Harrington, the United States Trustee, noted that at the
September 14 hearing on Rockland's request, it was further
disclosed that the Debtor had received and spent insurance proceeds
it had received without Rockland's knowledge. The insurance claim
was the result of fire damage caused to equipment owned by
Rockland. There was no evidence adduced that the Debtor used the
proceeds for any purpose other than in the operation of its
business.
The Debtor also acknowledged that its reconciliation of actual to
budget numbers was off by some $400,000 in income from operations
for the period from April through June 2021. The Debtor attributed
the disappointing numbers to various reasons, mostly related to the
pandemic.
Since the hearing in September, the U.S. Trustee continued, the
Debtor has become current on its payment of quarterly fees to the
United States Trustee. The Debtor is current in its filing of
monthly operating reports. Also, the Debtor's monthly operating
report for August 2021 shows a loss of $16,551, and its bank
statement shows an ending balance of $13,552. The report indicates
the Debtor currently has 12 full-time employees.
The Debtor, in its response to the Court's Order to Show Cause,
proposed an infusion of $500,000 in capital that it will seek by
obtaining financing from the real estate owned by Patriots Realty
LLC. The Debtor said its property has been appraised (in March
2021) at $1,875,000 and is encumbered only by a real estate tax
lien of approximately $280,000.
The U.S. Trustee said the Debtor does not indicate what steps, if
any, it, its principal, or Patriots Realty have taken to date to
obtain this financing.
The claims register in this case shows total claims filed of
$46,698.62, $38595.66 of which are priority tax claims.
Unfortunately, this apparently does not show the full extent of the
claims that may ultimately be asserted against the Debtor,
according to the U.S. Trustee. Claims were also filed in the
Patriots Environmental Corp. case, 20-40158-EDK, which until its
conversion to Chapter 7 on August 20, 2021, was the lead case in
the jointly administered cases of Patriots Environmental and Demo
Realty. Creditors who filed claims in the Patriots Environmental
case may contend that the claims they filed there are also valid
against Demo Realty. Presumably, Rockland is one of those
creditors.
According to the U.S. Trustee, the proposed infusion of capital
would greatly improve the Debtor's chances of proposing a
confirmable plan of reorganization. More information is needed,
however, to determine the likelihood of the Debtor's obtaining that
financing. The U.S. Trustee believes the Debtor should be afforded
a short period of time (approximately 30 days or less) to persuade
the Bankruptcy Court and parties-in-interest that the Debtor is
serious about, and will be successful in, obtaining the infusion of
capital.
"After a review of these facts and circumstances, the United States
Trustee does not now support conversion or dismissal of this case,
or the appointment of a trustee or examiner. Rather the United
States Trustee recommends (i) a brief continuance of the hearing on
the Order to Show Cause for a period of up to thirty or forty days
to provide the Debtor with the opportunity to pursue and secure the
proposed infusion of capital, and (ii) that the Debtor, in the
interim, report to the Court and parties in interest its actual
performance in August and September as compared with its projected
budget," Mr. Harrington said.
A copy of the order is available for free at https://bit.ly/3igpBE0
from PacerMonitor.com.
About Demo Realty Co.
Demo Realty Co., Inc., is an affiliate of Patriots Environmental
Corp., a company engaged in site development and remediation,
asbestos abatement, and general demolition.
The company filed a Chapter 11 petition (Bankr. D. Mass. Case No.
20-40159) on Jan. 31, 2020. In the petition signed by Ronald H.
Bussiere, president, the Debtor was estimated to have up to $50,000
in assets, and between $1 million and $10 million in liabilities.
Judge Elizabeth D. Katz oversees the case.
Law Office of Vladimir Von Timroth represents the Debtor.
DESIGNER DIVA: Seeks to Hire Russell Van Beustring as Legal Counsel
-------------------------------------------------------------------
Designer Diva Resale, LLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of Texas to employ Russell Van
Beustring, PC to serve as legal counsel in its Chapter 11 case.
The firm's services include:
(a) advising and representing the Debtor relative to the
administration of its bankruptcy case;
(b) analyzing the Debtor's assets and liabilities,
investigating the extent and validity of lien and claims, and
participating in and reviewing any proposed asset sales or
dispositions;
(c) attending meetings and negotiating with representatives of
secured creditors;
(d) assisting the Debtor in the preparation, analysis and
negotiation of any plan of reorganization and disclosure
statement;
(e) taking all necessary action to protect and preserve the
interests of the Debtor;
(f) appearing, as appropriate, before the bankruptcy court,
the appellate courts, and other courts in which matters may be
heard; and
(g) performing all other necessary legal services.
The firm has agreed to represent the Debtor based on reduced
billing charges of $350 per hour for attorneys and $125 per hour
for legal assistants.
In addition, the firm will seek reimbursement for expenses
incurred.
Russell Van Beustring, Esq., a member of Russell Van Beustring,
disclosed in a court filing that the firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Russell Van Beustring, Esq.
Russell Van Beustring, PC
5110 Waterbeck Street
Fulshear, TX 77441
Telephone: (713) 595-8200
Facsimile: (713) 595-8201
About Designer Diva Resale
Designer Diva Resale, LLC filed a petition for Chapter 11
protection (Bankr. S.D. Texas Case No. 21-33093) on Sept. 20, 2021,
listing as much as $50,000 in both assets and liabilities.
Michelle Puckett, president, signed the petition. Judge Eduardo V.
Rodriguez oversees the case. Russell Van Beustring, PC serves as
the Debtor's legal counsel.
DUN & BRADSTREET: S&P Alters Outlook to Stable, Affirms 'B+' ICR
----------------------------------------------------------------
S&P Global Ratings revised its outlook on Short Hills, N.J.-based
information services company Dun & Bradstreet Holdings Inc. to
stable from positive. S&P also affirmed its 'B+' issuer credit
rating, 'B+' ratings on the company's senior secured debt, and 'B-'
ratings on the company's unsecured debt. S&P's recovery
expectations are unchanged.
The stable outlook reflects S&P's expectation that D&B will exhibit
steady operating performance including organic revenue growth in
the low- to mid-single-digit-percent area, supported by new product
launches, and steady to improving EBITDA margins in the low- to
mid-30% range, driven in part by moderating one-time and
capitalized labor costs, and adjusted leverage in the 5x-6x area
over the next 12 months.
The outlook revision reflects S&P's expectation that D&B's leverage
will likely remain elevated above its 5x upgrade threshold over the
next 12 months as it continues to invest in new products and grow
its business. D&B's leverage was approximately 6.5x as of the 12
months ended June 30, 2021, and about 6.1x pro forma for its
acquisition of Bisnode.
Longer-term growth investments and one-time costs have slowed
deleveraging. D&B has accelerated its investments in new product
development with capital expenditures increasing from about $74
million in 2019 to an estimated $160 million in 2021. Capitalized
software and labor costs comprise the majority of the company's
capital expenditures, which S&P views as an expense in computing
its S&P Global Ratings-adjusted EBITDA. As a result, the increase
in capital spending has slowed the company's adjusted EBITDA
growth, offsetting some of the cost benefits the company realized
from its restructuring initiatives following its leveraged buyout,
and causing its leverage to remain somewhat high. Further, we
expect it will take some time for the company to realize growth
from new products such that they materially contribute to company's
EBITDA and leverage reduction. D&B also recognized various one-time
and reorganization costs related to its acquisition of Bisnode,
which S&P views as an operating expense although it expects these
costs to be transitionary.
Incremental cash use from onetime capital expenditures and working
capital use will likely limit near-term debt repayment. D&B
purchased a building in Jacksonville, Fla., for $77 million to
support the future relocation of its corporate headquarters from
Short Hills, N.J. S&P expects the cost will be offset over time
somewhat by state and local financial incentives.
In addition, sales force commissions supporting the company's
multiyear contracts are elevated in the near term as the company
transitions from annual contract renewals. The company has
succeeded in having approximately 48% of its total contracts as
multiyear contracts as of March 31, 2021, from about 30% as of June
2020. While S&P believes multiyear contracts will help improve
customer and wallet share retention and support longer-term pricing
increases, the acceleration in sales commission has resulted in
increased working capital use and likely limits near-term cash
generation and debt repayment.
Bisnode integration and new product rollout should support
improving revenue growth over the next 12 months. D&B's organic
revenue growth has been somewhat anemic for the data and
information services space in the low-single-digit-percent area.
This was driven in part by the sunsetting of the company's legacy
data.com partnership and structural changes in its credibility
business. S&P believes the company has largely lapped these
headwinds and revenue growth over the next 12 months will benefit
from a combination of new product introductions such as Rev.Up in
the small and medium-size business digital marketing space, rollout
of self-service tools such as its data marketplace, ESG datasets
for private companies, and at Bisnode through cross-selling
opportunities. S&P expects the company's organic revenue growth
will increase toward the mid-single-digit-percent area over the
next 12 months.
S&P said, "The stable outlook reflects our expectation that D&B
will exhibit steady operating performance including organic revenue
growth in the low- to mid-single-digit-percent area, supported by
new product launches, and steady-to-improving EBITDA margins in the
low- to mid-30% range, driven in part by moderating one-time and
capitalized labor costs, and adjusted leverage in the 5x-6x area
over the next 12 months.
"We could lower our ratings on D&B to 'B' if we expect its adjusted
leverage to exceed 6x and free operating cash flows (FOCF) to
decline to the 5% area for a prolonged period." This would likely
be driven by:
--Operating challenges due to competitive losses and cost overruns
integrating its acquisition; or
-- If D&B pursues leveraging acquisitions or pursues dividends or
share repurchases.
S&P could raise its issuer credit rating on D&B to 'BB-' if:
-- The company exhibits solid operating performance with
consistent mid-single-digit-percent or higher revenue growth;
-- Adjusted EBITDA margins improve toward the mid- to high-30%
area.
Further debt reduction that results in leverage below 5x and an
improvement in FOCF-to-debt ratio toward the 10% area on a
sustained basis.
EVERGREEN DEVELOPMENT: Wins Cash Collateral Access Thru Dec 31
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Minnesota has
authorized Evergreen Development Group and The Evergreens of Apple
Valley, L.L.P. to use cash collateral in accordance with the
Debtors' budget through December 31, 2021, with a 10% variance.
The Debtors will use cash to pay ordinary and necessary business
expenses and administrative expenses for the items and in such use
that will not vary materially from that provided for in the budget,
except for variations attributable to expenditures specifically
authorized by Court order, or as otherwise authorized by Minnesota
Bank & Trust in writing, and those payments to MB&T under the terms
of the Stipulation.
The Debtors will grant MB&T a replacement lien, to the extent of
Debtors' use of Cash Collateral and adequate protection, and all
prepetition collateral, all cash on hand as accumulated by the
Debtors prior to the Petition Date, any and all property as of the
Petition Date, with liens being of the same priority, dignity, and
effect as the bank's pre-petition lien. The lien and security
interest provided to MB&T in the Stipulation will not be subject to
any lien or security interest that is avoided and/or preserved for
the benefit of the Debtors pursuant to Section 551 of the Code.
The Debtors will carry insurance on their assets, land, and
buildings and will provide proof of insurance reasonably acceptable
to MB&T, including declaration pages for general liability and
coverage.
The Debtors will also make adequate protection payments to MB&T by
remitting monthly payments in the amount of $21,560, commencing on
July 9, 2021, and continuing thereafter on the same day of each
subsequent month through the term of the Stipulation, or any
extensions hereto.
The Debtors' access to Cash Collateral will cease if:
a. they default in their performance of any obligation.
b. MB&T gives written notice of such default to the Debtors
and their counsel via either e-mail, facsimile transmission, or
U.S. Mail.
c. the default is not cured within five days from the date of
sending or mailing or faxing a notice of the default.
d. The Debtors' failure to timely pay any tax, including
withholding, property, income, excise, use, occupancy, liquor,
tobacco, or any other municipal, state or federal tax accruing at
any time after the Petition Date.
e. The Debtors' sale, conveyance, transfer, or other disposal
of any of the Debtors' assets or property out of the ordinary
course of business unless otherwise approved by the Bankruptcy
Court beforehand.
f. The case is dismissed or converted to another chapter of
the Code.
g. Upon the occurrence of an event of default, MB&T will
provide written notice of such default to the Debtors and their
counsel via e-mail, facsimile transmission, or U.S. Mail. In the
event the default is not cured on, or within, five days of issuance
of the written notice of default, MB&T will be entitled to request
expedited relief from the automatic stay to pursue its rights and
remedies as a perfected secured creditor, the Debtors will waive
any defense or counterclaim associated with default.
A copy of the order is available at https://bit.ly/3ofj28q from
PacerMonitor.com.
About Evergreen Development Group
Evergreen Development Group is a single asset real estate company
which owns and leases commercial real estate in Waite Park,
Minnesota. Its principal place of business and corporate offices
are located at 95 10th Ave. South, Waite Park, Minnesota, 56387. It
merged with The Evergreens of Apple Valley, L.L.P. in 2015.
Evergreen Development Group and The Evergreens of Apple Valley,
L.L.P., sought protection under Chapter 11 of the U.S. Bankruptcy
Court (Bankr. D. Minn. Case Nos. 21-60066 and 21-40334) on February
26, 2021. In the petition signed by Robert A. Hopman, general
partner, Evergreen Development disclosed up to $10 million in
assets and up to $50,000 in liabilities.
Foley & Mansfield, P.L.L.P., represents the Debtors as counsel.
EXCEL FITNESS: S&P Alters Outlook to Stable, Affirms 'CCC+' ICR
---------------------------------------------------------------
S&P Global Ratings revised its outlook on Excel Fitness Holdings
Inc. to stable from negative. S&P also affirmed its 'CCC+' issuer
credit rating on Excel Fitness and its 'CCC+' issue-level rating on
the company's first-lien senior secured facility, consisting of a
$10 million revolving credit facility and $260 million loan. The
recovery rating on the debt is '3'.
The stable outlook reflects S&P's expectation that the company's
current membership and EFT billing recovery could result in credit
metrics that are good for the 'CCC+' rating, but that modest
liquidity and negative discretionary cash flow at least through the
first half of 2022 limit ratings upside at this time.
S&P said, "The outlook revision to stable reflects our view that
the company could maintain memberships and EFT billings at or above
its pre-pandemic peak, which could result in leverage metrics in
2021 and 2022 that are good for the 'CCC+' rating.Under our base
case forecast, the company's membership base ends 2021 about 15%
above year-end 2019 levels. Under this membership assumption, we
expect EFT billings and total revenue to be higher than 2019, in
the low-single-digit percentage area (we assume revenue lags
memberships because not all members restarted paying dues at the
beginning of the year). We also forecast net membership growth in
the mid-to-high single-digit percent area in 2022 to about 10%
above 2019 levels because we expect membership growth and retention
trends to return to about historical levels at existing clubs and
that new clubs will help the company expand its membership base.
Under these assumptions, we expect revenue could be about 12%-14%
above 2019 levels and could grow about 10% in 2022.
"Under our base case assumptions, we expect that the company will
experience some degree of EBITDA margin compression in the second
half of 2021 because of increased labor costs and club overhead
growing faster than revenue due to new club development. Under
these assumptions, EBITDA margin could be in the mid-to-high 20%
area through 2022. As a result, we believe that the company's
lease-adjusted leverage could be below 7x through 2022, which is
good for the 'CCC+' rating. However, we believe that the company's
club development plan will result in significant growth capital
spending over the next several years, which we believe could drive
negative discretionary cash flow through at least the first half of
2022. We also believe the company has some ability to pull back on
club development in the near term if liquidity were to become
strained.
"The 'CCC+' rating partially reflects the company's liquidity,
which we believe is adequate but modest relative to its revenue and
EBITDA base and compared with its rated peers.The rating also
reflects our expectation that the company will generate negative
discretionary cash flow through at least the first half of 2022 to
fund its growth capital spending. While many issuers affected
directly by the COVID-19 pandemic increased debt balances to offset
cash burn, Excel Fitness did not complete a liquidity-enhancing
transaction until early 2021 and added a relatively small $10
million term loan with the option to draw an additional $5 million
under a delayed draw term loan, which has since expired undrawn.
While we believe the company's leverage metrics are good relative
to many of its rated peers, the company's relatively modest
liquidity offers little capacity to weather low-probability,
high-impact events."
The company's position as a budget fitness operator within the
Planet Fitness network, geographic footprint in states with few
COVID-19 restrictions, and closures of competitors' clubs is
driving a modestly faster recovery than for some of its peers. S&P
said, "We believe budget fitness operators experienced lower
membership declines in 2020 than mid-tier and luxury fitness
operators and that budget fitness operators have seen faster
membership growth in 2021 after the loosening of mask and social
distancing restrictions that followed the rapid initial rollout of
vaccines. In addition, we understand that fewer or no remaining
COVID-19 restrictions and consumers' approach to COVID-19 safety in
the southern U.S have had less of an impact on Excel Fitness'
membership base and revenue than many of its peers and the Planet
Fitness network as a whole. Excel Fitness ended July 2021 with
approximately 650,000 members, which was up approximately 4% from
its pre-pandemic peak of about 625,000 members and up approximately
14% from 2019 membership levels. It is also our understanding that
memberships are currently above pre-pandemic levels at clubs that
have been open longer than a year. We believe that these membership
trends compare favorably with the company's rated peers, and it is
our understanding that none of the company's rated peers have
reached membership numbers that are at pre-pandemic levels yet. We
largely attribute this to the company's geographic concentration in
Texas, North Carolina, and other states in the southern U.S., where
consumers have been quicker to return to the gym and face fewer
government-mandated restrictions around doing so. We also believe
that pandemic-driven bankruptcies and permanent closures of
competitors' clubs could result in less competition in Excel
Fitness' markets and opportunities to engage with consumers who
have been displaced from shuttered clubs. Given that many of the
clubs that have closed were mid-tier gyms, we believe former
members of these clubs may be more likely to trade down to a budget
fitness club and therefore may be more likely to join Excel Fitness
than mid-tier and luxury competitors."
Area development agreements (ADAs) offer Excel Fitness development
rights to specific areas; termination risks are moderate. Excel
Fitness currently has three ADAs that allow exclusive rights to
develop future franchise clubs in each specific geographic area
under the ADA. As long as Excel Fitness is in compliance with the
ADA, the franchisor will not issue franchise rights to third
parties in the geographic areas governed by the ADAs. Under all
three ADAs, Excel Fitness has the rights to open clubs through
2024. If the franchisee is not in compliance with its development
schedule, and the franchisor has determined the company is not
pursuing reasonable, good-faith efforts to develop clubs, the
franchisor may terminate the ADA. If termination occurs, future
club development inside Excel Fitness' geographic area of
exclusivity by other Planet Fitness franchisees could occur.
However, S&P believes this risk is remote and mitigated because
Excel Fitness is a sizable franchisee and has a successful track
record to date regarding acquisitions and development. In addition,
it is our understanding that the franchisor has relaxed certain
development requirements following the COVID-19 pandemic, including
suspending required club equipment refreshes until 2022.
Environmental, social, and governance credit factors for this
credit rating change:
-- Health and safety
S&P said, "The stable outlook reflects our expectation that the
company's current membership and EFT billing recovery could result
in credit metrics that are good for the 'CCC+' rating, but that
modest liquidity and negative discretionary cash flow at least
through the first half of 2022 limit ratings upside at this time.
"We could raise our rating one notch once we came to believe the
company could sustain leverage below 7x and generate positive
discretionary cash flow or have sufficient sources of liquidity to
sustain its longer-term growth capital spending plans.
"We could revise our outlook to negative if we believed the company
were likely to underperform our base case forecast in a manner that
would result in leverage sustained above 7x or if we believed the
company were unable to manage the flexibility in its growth capital
spending program, straining liquidity."
FANTASEA ENTERPRISES: Case Summary & 5 Unsecured Creditors
----------------------------------------------------------
Debtor: Fantasea Enterprises, Inc.
d/b/a Pacific Avalon Yacht Chartes
c/o Jeanette Gueola
150 White Cap Lane
Newport Coast, CA 92657
Chapter 11 Petition Date: September 30, 2021
Court: United States Bankruptcy Court
Central District of California
Case No.: 21-12373
Judge: Hon. Theodor Albert
Debtor's Counsel: Marc C. Forsythe, Esq.
GOE FORSYTHE & HODGES LLP
18101 Von Karman Avenue
Suite 1200
Irvine, CA 92612-7127
Tel: (949) 798-2460
Fax: (949) 955-9437
E-mail: mforsythe@goeforlaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $100,000 to $500,000
The petition was signed by Jeannette Gueola as CEO.
A full-text copy of the petition containing, among other items, a
list of the Debtor's five unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/WFVT4JA/Fantasea_Enterprises_Inc__cacbke-21-12373__0001.0.pdf?mcid=tGE4TAMA
FIVETOWER LLC: Taps Revenue Assurance Partners as Collection Agent
------------------------------------------------------------------
FiveTower, LLC, seeks approval from the U.S. Bankruptcy Court for
the Southern District of Florida to hire Revenue Assurance Partners
as its collection agent.
FiveTower, an Aventura, Fla.-based company that operates a merchant
cash advance business, needs the services of Revenue Assurance
Partners to collect MCAs that were in default throughout the United
States.
Revenue Assurance Partners will be paid on a contingency basis such
that the firm will receive 25 percent of the gross amounts
collected for the Debtor's estate on pre-suit matters, and 40
percent after a lawsuit is filed. The firm will also receive
reimbursement for work-related costs.
In the event Revenue Assurance Partners employs attorneys to assist
in the collection, such attorneys will be paid from the contingency
fees that would be paid to the firm.
Michael Wegman, chief financial officer of Revenue Assurance
Partners, disclosed in a court filing that he and his firm neither
hold nor represent interests adverse to the Debtor and its estate.
Revenue Assurance Partners can be reached through:
Michael Wegman
Revenue Assurance Partners
2315 Florida Street
Building 200, Suite 246
Mandeville, LA 70448
About FiveTower LLC
Aventura, Fla.-based FiveTower, LLC filed a petition under Chapter
11, Subchapter V, of the Bankruptcy Code (Bankr. S.D. Fla. Case No.
21-17617) on Aug. 2, 2021, listing up to $1 million in assets and
up to $10 million in liabilities. Linda Leali is the duly
appointed Subchapter V trustee.
Judge Laurel M. Isicoff oversees the case.
The Debtor tapped Weiss Serota Helfman Cole & Bierman, PL as
bankruptcy counsel; Markowitz, Ringel, Trusty & Hartog, P.A. as
special counsel; Pinchasik Yelen Muskat Stein, LLC as accountant;
and Dinnall Fyne & Co. as financial advisor.
FLEXIBLE FUNDING: Seeks to Hire Ward and Smith as Special Counsel
-----------------------------------------------------------------
Flexible Funding Ltd. Liability Co. and Instapay Flexible, Inc.
seek approval from the U.S. Bankruptcy Court for the Northern
District of Texas to employ Ward and Smith, PA as special counsel.
The firm's services include:
(a) representing the Debtors in the state court action styled
Flexible Funding Ltd. Liability Co. v. Graham County Land Company,
L.L.C.; National Civil, LLC; Randy Jordan; John Pressler; Cecil
Patterson; and Buck Jackson;
(b) providing legal services necessary to collect from Graham
County Land Company (GCLC) or others for the amounts owed by GCLC;
and
(c) performing all other services that may be necessary or
appropriate as special counsel.
The hourly rates of the firm's attorneys and staff are as follows:
Lance Martin $400 per hour
Norman Leonard $350 per hour
Other Attorneys $250 - $450 per hour
Paralegals $100 - $200 per hour
In addition, the firm will seek reimbursement for expenses
incurred.
Lance Martin, Esq., a partner at Ward and Smith, disclosed in a
court filing that the firm is a "disinterested person" as that term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Lance P. Martin, Esq.
Ward and Smith, PA
82 Patterson Avenue, Suite 300
Asheville, NC 28801
Telephone: (828) 348-6070
Facsimile: (828) 348-6077
Email: lpm@wardandsmith.com
About Flexible Funding
Flexible Funding Ltd. Liability Co. and Instapay Flexible LLC filed
voluntary petitions for Chapter 11 protection (Bankr. N.D. Texas
Lead Case No. 21-42215) on Sept. 19, 2021. Judge Mark X. Mullin
oversees the cases.
At the time of the filing, Flexible Funding disclosed between $100
million and $500 million in both assets and liabilities while
Instapay listed between $10 million and $50 million in both assets
and liabilities.
The Debtors tapped Forshey & Prostok LLP as legal counsel and Ward
and Smith, PA as special counsel.
FOOT LOCKER: S&P Rates New $400MM Senior Unsecured Notes 'BB+'
--------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' issue-level rating and '3'
recovery rating to Foot Locker Inc.'s proposed $400 million senior
unsecured notes due 2029. The '3' recovery rating indicates its
expectation for meaningful (50%-70%; rounded estimate: 60%)
recovery in the event of a payment default. The company plans to
use the net proceeds for general corporate purposes.
In addition, Foot Locker announced on Sept. 20 that it completed
its acquisition of Eurostar Inc. (WSS), a U.S.-based athletic
footwear and apparel retailer that primarily operates on the West
Coast and focuses on the large and rapidly expanding Hispanic
consumers. The company also announced this summer it entered into a
definitive agreement to acquire Text Trading Co. K.K. (Atmos), a
global retailer headquartered in Japan. While they represent in
aggregate less than 3% of Foot Locker's pro forma EBITDA, we view
these acquisitions as modestly favorable because they further
diversify Foot Locker, expand its business beyond malls, and extend
its reach in Asia. The company reported a strong second quarter
(ended July 30, 2021) with 6.9% in total comparable sales gain and
margin expansion on improved store traffic and significantly low
promotional activity. S&P expects leverage to remain in the mid- to
high-1x range over the next year. All of its ratings on Foot
Locker, including its 'BB+' issuer credit rating and stable
outlook, are unaffected by the transaction.
ISSUE RATINGS - RECOVERY ANALYSIS
Key analytical factors
-- Foot Locker's credit facilities comprise a $600 million
asset-based lending (ABL) revolver due in 2025 and about $98
million of outstanding senior unsecured notes due in 2022. S&P does
not rate the ABL revolver.
-- S&P's simulated default scenario considers a default on a steep
decline in EBITDA due to several factors, including intensified
competition and merchandising missteps. S&P believes this could
occur amid a protracted decline in the economy and a weak consumer
spending environment.
-- S&P values the company on a going-concern basis using a 5x
multiple applied to its projected emergence-level EBITDA to arrive
at its gross emergence-level valuation of approximately $760.4
million.
-- S&P's recovery analysis assumes $360 million of borrowings will
be outstanding under the ABL revolver at default, which reflects
60% utilization of the $600 million commitment.
Simulated default assumptions
-- Simulated year of default: 2026
-- EBITDA at emergence: $152.1 million
-- Implied enterprise value (EV) multiple: 5x
-- Estimated gross EV at emergence: of about $760.4 million
Simplified waterfall
-- Net EV after 5% administrative costs: $722.3 million
-- ABL revolver claims*: $368.6 million
--Recovery expectations: not applicable
-- Lease Non-debt unsecured claims: $154.5 million
-- Senior unsecured claims*: $408 million
--Recovery expectations: 50%-70% (rounded estimate: 60%)
*All debt claims include six months of prepetition interest.
FREDERICK LLC: $3.2M Sale to Shared Estates to Fund Plan
--------------------------------------------------------
The Frederick, LLC, filed with the U.S. Bankruptcy Court for the
Chapter 11 Plan of Reorganization for Small Business dated
September 27, 2021.
The Debtor's assets primarily consist of approximately 3 acres of
land located at 2 Kemble Street, Lenox, Massachusetts (the "Real
Estate"), improved with a hotel, known as the Kemble Inn (the
"Hotel"), and a restaurant and bar, known as Table Six (the
"Restaurant"). The Hotel and Restaurant include furniture,
fixtures, equipment, supplies, inventory, websites, and permits and
licenses usable in the ordinary course of operating the Hotel and
Restaurant (the "Personal Property" and collectively with the Real
Estate the "Property").
The Debtor's financial problems emanate from events that were
directly related to the global COVID-19 pandemic. In 2020,
following its closure due to the COVID-19 pandemic, the Debtor
defaulted on its secured debt owed to Adams Community Bank ("ACB")
and ACB called its loans. On or about April 13, 2021, ACB assigned
its loans with the Debtor to MA Opportunity Investments, LLC
("MAOI"). MAOI scheduled a foreclosure auction sale of the Property
on June 30, 2021. On June 18, 2021, the Debtor executed a purchase
and sale agreement (the "APA") to sell the Property for
$3,200,000.00 (the "Purchase Price"). These circumstances
necessitate Chapter 11 relief.
On July 8, 2021, the Debtor filed a Motion (the "Sale Motion")
seeking authority to sell the Property, pursuant to the APA (the
"Sale"), to Shared Estates Asset Fund I, LLC, or its nominee (the
"Buyer"). The APA provided for a $250,000 deposit, a financing
contingency of 90 days from the date of the Sale Order (the
"Contingency Deadline"), and a deadline to close the Sale
transaction (the "Closing") of 15 days after expiration of the
Contingency Deadline. In addition to the Purchase Price, the APA
provides for the Debtor to retain a 5% interest in the net profits
from the ongoing business operation at the Hotel and Restaurant
(the "Retained Interest").
Post-petition, and as a part of the Sale Motion process, the Debtor
continued its marketing efforts. The Debtor's extensive
solicitation campaign did not result in any higher or better offers
for the Property. On August 12, 2021, the Bankruptcy Court entered
an Order approving the Sale Motion and authorizing the Debtor to
sell the Property for $3,200,000.00. The proceeds from the Sale
will be the primary source to fund the Plan.
The Plan will treat claims as follows:
* Class 1 consists of MAOI's Allowed Claim. MAOI shall receive
a cash payment equal to the amount of its Allowed Claim upon the
Closing of the Sale of the Property. MAOI may receive such other
less favorable treatment as may be agreed upon by MAOI and the
Debtor. Class 1 is unimpaired under the Plan.
* Class 2 consists of AmEx's Allowed Claim. AmEx shall receive
a cash payment equal to the amount of its Allowed Claim upon the
Closing of the Sale of the Property. AmEx may receive such other
less favorable treatment as may be agreed upon by AmEx and the
Debtor. Class 2 is unimpaired under the Plan.
* Class 3 consists of the SBA's Allowed Claim. The SBA shall
receive, in full and final satisfaction of its Allowed Claim, a
cash payment equal to the amount of its Allowed Claim upon the
Closing of the Sale of the Property. The SBA may receive such other
less favorable treatment as may be agreed upon by the SBA and the
Debtor. Class 3 is unimpaired under the Plan.
* Class 5 consists of any General Unsecured Claims against the
Debtor. Each holder of a General Unsecured Claim shall receive a
cash payment equal to the amount of its Allowed Claim upon the
Effective Date. Class 5 is unimpaired under the Plan.
* Class 6 consists of holders of Interests in the Debtor. On
the Effective Date, each holder shall retain their Interests in the
Debtor in the same proportions that existed on the Petition Date.
The Plan will be funded from the Sale of the Debtor's Property and
cash on hand. Upon the Closing of the Sale of the Property, the
Debtor shall use the sale proceeds and cash on hand to pay all
creditors in full. The Debtor will continue to operate in the
ordinary course of business until the Sale of the Property. The
Plan provides for the submission of all or such portion of the
future earnings of the Debtor as is necessary for the execution of
the Plan.
A full-text copy of the Subchapter V Plan dated September 27, 2021,
is available at https://bit.ly/3D2ZZlZ from PacerMonitor.com at no
charge.
Counsel for the Debtor:
Andrea M. O'Connor, Esquire
Fitzgerald Attorneys at Law, P.C.
46 Center Square
East Longmeadow, MA 01028
Tel: 413-486-1110/Fax: 413-486-1120
E-mail: vamo@fitzgeraldatlaw.com
About Frederick LLC
The Frederick, LLC, filed a voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Mass. Case No.
21-30240) on June 28, 2021, listing as much as $10 million in both
assets and liabilities. Scott M. Shortt, manager, signed the
petition.
Judge Elizabeth D. Katz oversees the case.
Fitzgerald Attorneys at Law, PC and Kushi & Co., P.C. serve as the
Debtor's legal counsel and accountant, respectively.
GATEWAY KENSINGTON: Wins Cash Collateral Access Thru Nov. 5
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York has
authorized Gateway Kensington, LLC to continue using the cash
collateral of Sterling National Bank pending the final hearing on
November 5, 2021, at 10 a.m., via Zoom for Government.
The Court says pending the final hearing, the terms of the Second
Interim Order will remain in full force and the Debtor will be
authorized to use cash collateral pursuant to the approved budget,
with a 5% variance.
A copy of the sixth interim (bridge) order is available for free at
https://bit.ly/3EYp0QW from PacerMonitor.com.
About Gateway Kensington
Gateway Kensington LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. S.D. N.Y. Case No.
21-22274) on May 14, 2021. At the time of the filing, the Debtor
disclosed total assets of up to $10 million and total liabilities
of up to $50 million.
Judge Robert D. Drain presides over the case.
Kirby Aisner & Curley LLP represents the Debtor as legal counsel.
GEROBIN FINANCES: Chapter 15 Case Summary
-----------------------------------------
Chapter 15 Debtor: Gerobin Finances Pty Ltd (in Liquidation)
26 Flinders Street
Adelaide, South Australia 05000
Type of Business: Other (Business and Personal) Services
Foreign Proceeding: Sheahan and Lock as Liquidators of Milgerd
Nominees Pty Ltd (In Liq.) et ors., case
no. 2018/00365045 (Sup. Ct. of NSW)
Chapter 15
Petition Date: September 30, 2021
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 21-11699
Judge: Hon. Michael E. Wiles
Foreign Representative: John Sheahan
26 Flinders Street
Adelaide, South Australia 05000
Foreign
Representative's
Counsel: Robert N.H. Christmas, Esq.
Christopher J. Fong, Esq.
NIXON PEABODY LLP
55 West 46th St.
New York, NY 10022
Tel: (212) 940-3103
E-mail: rchristmas@nixonpeabody.com
Estimated Assets: Unknown
Estimated Debt: Unknown
A full-text copy of the Chapter 15 petition is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/GLTMYFQ/Gerobin_Finances_Pty_Ltd_in_Liquidation__nysbke-21-11699__0001.0.pdf?mcid=tGE4TAMA
GEROU PROPERTIES: Cash Collateral Deal OK'd
-------------------------------------------
The U.S. Bankruptcy Court for the Western District of Wisconsin has
approved the Stipulation between by Gerou Properties, LLC; Gerou
Properties II, LLC; So Close to Home II, LLC; Deerfield Place
Assisted Living, LLC and First American Bank, secured creditor,
dated September 7, 2021, regarding the Debtors' use of cash
collateral.
As previously reported by the Troubled Company Reporter, First
American consents to the Debtors' use of cash collateral. In
exchange, First American is entitled to these monthly adequate
protection payment:
* The Debtors will make a monthly adequate protection payment of
$3,885; and
* The Debtors will make an escrow payment of $1,205 to be
applied towards real and estate taxes;
The parties further agree that the first monthly payment of $5,090
will delivered to First American within one day after the Court
enters the order for adequate protection, and that the Debtors will
pay $5,090 every subsequent 30 days on the same day of the month as
the first payment until a Chapter 11 plan confirmation order is
entered by the Court, or the cases are dismissed or converted.
In addition, the parties agree that First American is granted
replacement lien on the Debtors' postpetition assets to the same
extent that First American has in similar assets prepetition.
A copy of the order is available at https://bit.ly/3oamalX from
PacerMonitor.com.
About Gerou Properties LLC, et al.
Gerou Properties LLC filed a Chapter 11 petition (Bankr. W.D. Wis.
Case No. 21-11867) on September 7, 2021. Its affiliates, Gerou
Properties II LLC; So Close to Home II LLC; and Deerfield Place
Assisted Living LLC also filed separate Chapter 11 petitions on
September 7, 2021. The Debtors' request for the joint
administration of their cases is currently pending in the U.S.
Bankruptcy Court for the Western District of Wisconsin.
On the Petition Date, Gerou Properties LLC and Gerou Properties II
LLC each reported $185,000 in assets and $861,198 in liabilities.
So Close to Home II LLC disclosed $720,000 in assets and $861,198
in liabilities. Deerfield Place Assisted Living LLC estimated
$420,000 in assets and $861,197 in liabilities on the date of
filing the petition.
Judge Catherine J. Furay presides over the cases.
Pittman & Pittman Law Offices, LLC serves as counsel for the
Debtor.
GOLDEN HOTEL: Court OK's Deal on Cash Collateral Use Thru Oct 24
----------------------------------------------------------------
Golden Hotel LLC sought and obtained entry of an order from the
U.S. Bankruptcy Court for the Central District of California, Santa
Ana Division, approving the stipulation that it has entered into
with Wells Fargo Bank, National Association, as Trustee, for the
Benefit of the Holders of Morgan Stanley Capital I Trust 2015-UBS8,
Commercial Mortgage Pass-Through Certificates Series 2015-UBS8,
authorizing the Debtor's use of cash collateral on an interim
basis.
The parties agreed that the Debtor may use cash collateral on an
interim basis through October 24, 2021, in accordance with the
budget.
During the Cash Collateral Period, any unused amount for any given
line item in the Budget for a particular week will carry forward
and can be used in later weeks, and any amounts budgeted for a
given line item in particular week may be spent at an earlier time
provided the total amount spent for such line time does not exceed
the total amount budgeted for that line item with the 15% variance.
The Secured Creditor will receive a replacement lien in the
Debtor's post-petition revenues, in and to the same extent,
validity, and priority as any duly perfected and unavoidable lien
in the Debtor's cash held by Secured Creditor as of the Petition
Date, limited to the amount of any cash collateral as of the
Petition Date and to the extent cash collateral is actually used by
the Debtor.
A continued hearing on the Cash Collateral Motion is set for
October 21 at 11 a.m.
A copy of the stipulation and the Debtor's budget for the period
from October 10 to 24 is available at https://bit.ly/2YgFmUm from
PacerMonitor.com.
The Debtor projects $186,422 in total cash receipts and $208,349 in
total operating disbursements.
About Golden Hotel LLC
Golden Hotel is a privately held company in the traveler
accommodation industry. Golden Capital is primarily engaged in
renting and leasing real estate properties.
Golden Hotel LLC and Golden Capital Venture LLC concurrently filed
voluntary petitions for relief under Chapter 11 of the Bankruptcy
Code (Bankr. C.D. Cal. Case Nos. 20-12636 and 20-12637,
respectively) on September 21, 2020. The petitions were signed by
Hieu M. Bui, manager. At the time of filing, the Debtors estimated
$10 million to $50 million in both assets and liabilities.
Judge Scott C. Clarkson oversees the case.
Lei Lei wang Ekvall, Esq. at SMILEY WANG-EKVALL, LLP represents the
Debtor as counsel.
On December 21, 2020, the Debtors filed their Joint Chapter 11 Plan
of Reorganization and explanatory Disclosure Statement.
Wells Fargo Bank, National Association, as Trustee, for the Benefit
of the Holders of Morgan Stanley Capital I Trust 2015-UBS8,
Commercial Mortgage Pass-Through Certificates Series 2015-UBS8, as
lender, is represented by Duane Morris LLP.
GREENSILL CAPITAL: Bluestone Said to Offer $300M to Credit Suisse
-----------------------------------------------------------------
Julie Steinberg of The Wall Street Journal reports that West
Virginia Gov. Jim Justice has offered a $300 million payment and
half the value of his family coal businesses to settle loans from
the now-defunct Greensill Capital, according to people familiar
with the deliberations.
The proposal is part of talks between the governor's family
business, Bluestone Resources Inc., and Credit Suisse Group AG,
which manages investment funds that were Greensill's main source of
cash for its lending business.
Mr. Justice's heavily indebted family businesses were thrown into
turmoil by Greensill's collapse. He and his family borrowed $850
million from Greensill and he said in June the outstanding loans
were "a burden on our family beyond belief." Mr. Justice and his
family members personally guaranteed the loans.
The second-term Republican governor and his family control a
sprawling collection of mining, agricultural and real-estate
assets, including West Virginia's famed Greenbrier Resort -- host
to past PGA Tour events -- a casino and medical clinic.
He has had to juggle managing the state's response to the Covid-19
pandemic with his family's debt woes. Earlier this month, Mr.
Justice settled a long-running dispute with another lender, Carter
Bank & Trust, in which the two sides agreed to restructure $368
million in loans.
At a news conference Monday, Mr. Justice said Credit Suisse and his
family members led by his son, Jay Justice, Bluestone's chief
executive, are "working together really really well."
Mr. Justice said the coal business is "doing fantastic" and his
"family finances are great." Coal prices have risen in recent
months.
Mr. Justice has said his family used the Greensill loans to rebuild
Bluestone after buying it back in 2015 from a Russian mining
company.
In the talks with Credit Suisse, Mr. Justice's companies have
offered to pay Credit Suisse $300 million, the people said. It
would source the money by refinancing a chunk of the existing loans
with a third-party lender. It couldn't be learned who the lender
for the transaction would be.
Mr. Justice would also pledge to pay half of the proceeds to Credit
Suisse of a sale or initial public offering of Bluestone, the
family company that operates coal mines and that took the loans.
Any sale would have to take into account the company's debt load,
the people said.
Credit Suisse has said in notices to investors that Bluestone owes
it nearly $700 million. The Wall Street Journal has reported that
Bluestone owes the remainder of what it borrowed from Greensill to
creditors of Greensill's banking unit in Bremen, Germany.
Bluestone in a lawsuit filed against Greensill in March said the
company already paid around $108 million in fees to access the $850
million in financing.
"Credit Suisse Asset Management is doing everything we can to
maximize recovery for our fund investors," said a Credit Suisse
spokesperson. "If outstanding debtors put proposals to us, we will
of course look at them."
Greensill sold the majority of the Bluestone loans to investment
funds managed by Credit Suisse. The $10 billion supply-chain
finance funds extended financing to a range of borrowers, but the
bank froze the funds in March when Greensill lost a key type of
insurance that backed up its loans. Greensill shortly after tumbled
into bankruptcy.
Credit Suisse said Monday the funds will have returned $6.3 billion
to investors by this week and had another roughly $700 million in
cash. Besides Bluestone, the bank earlier this 2021 identified
metals magnate Sanjeev Gupta's GFG Alliance and failed construction
startup Katerra as problematic borrowers.
It isn't clear how much Bluestone would be worth in a sale. Mr.
Justice sold the company in 2009 to Russian metals and mining
company Mechel in a cash-and-stock deal worth more than $400
million. Mechel also assumed around $132 million in net debt,
according to an announcement at the time.
In 2015, the Justice family bought Bluestone back in a deal that
included a cash payment of $5 million plus royalty payments on
future coal sales. It also owes Mechel 10% of the proceeds of any
sale of the company.
About Greensill Capital
Greensill is an independent financial services firm and principal
investor group based in the United Kingdom and Australia. It offers
structures trade finance, working capital optimization, specialty
financing and contract monetization. Greensill Capital Pty is the
parent company for the Greensill Group.
Greensill began to unravel in March 2021 when its main insurer
stopped providing credit insurance on US$4.1 billion of debt in
portfolios it had created for clients including Swiss bank Credit
Suisse.
Greensill Capital (UK) Limited and Greensill Capital Management
Company (UK) Limited filed for insolvency in Britain on March 8,
2021. Matthew James Byrnes, Philip Campbell-Wilson and Michael
McCann of Grant Thornton were appointed as administrators.
Greensill Capital Pty Ltd. filed insolvency proceedings in
Australia. Matt Byrnes, Phil Campbell-Wilson, and Michael McCann of
Grant Thornton Australia Ltd, were appointed as voluntary
administrators in Australia.
Greensill Capital Inc. filed for Chapter 11 bankruptcy (Bankr.
S.D.N.Y. Case No. 21-10561) on March 25, 2021. Jill M. Frizzley,
director, signed the petition. In the petition, the Debtor listed
assets of between $10 million and $50 million and liabilities of
between $50 million and $100 million. The case is handled by Judge
Michael E. Wiles.
In the Chapter 11 case, the Debtor tapped Segal & Segal LLP as
bankruptcy counsel, Mayer Brown LLP as special counsel, and GLC
Advisors & Co., LLC and GLCA Securities, LLC as investment bankers
and financial advisors. Matthew Tocks is the chief restructuring
officer of the Debtor. The official committee of unsecured
creditors is represented by Arent Fox LLP.
Greensill Capital (UK) Limited filed a Chapter 15 petition (Bankr.
S.D.N.Y. Case No. 21-11473) to seek U.S. recognition of its UK
proceedings on Aug. 18, 2021. ALLEN & OVERY LLP, led by Laura R.
Hall, is the Debtor's counsel in the Chapter 15 case.
HANKS TOWING: Court to Approve Disclosure Statement
---------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Alabama
approved the Disclosure Statement of Hanks Towing Inc. at a hearing
held on Sept. 23, 2021, subject to amendments being made, the
amendments being run by the parties, and the amended disclosure
statement being filed in CM/ECF.
When the amended disclosure statement is filed in CM/ECF, the
Debtor's attorney is to contact Judge Robinson's courtroom deputy
for a hearing date on confirmation of the plan and deadlines for
the proposed notice and order (the proposed notice and order is to
also include a provision granting the Debtor's oral motion to
extend the deadline to achieve confirmation to Dec. 31, 2021).)
The Debtor filed a Plan of Reorganization and a Disclosure
Statement on Aug. 23, 2021. The Debtor says that the company
continues to improve and it believes that income will continue to
grow to be able to fund the Plan. Holders of secured claims will
receive monthly payments until paid in full with 5.25% per annum
interest in up to 70 months. Unsecured claims totaling $133,700
will be paid in full with 5.25% interest in 60 monthly
installments. Equity security holder Daniel Ward Eanes will retain
control and ownership of the Debtor.
A copy of the Disclosure Statement filed Aug. 23, 2021, is
available at PacerMonitor.com at https://bit.ly/2Y048b8
About Hanks Towing
Hanks Towing Inc. filed a voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ala. Case No.
21-40072) on Jan. 25, 2021. Daniel Eanes, president, signed the
petition. Harry P. Long, Esq., at the Law Offices of Harry P.
Long, LLC serves as the Debtor's legal counsel.
HERALD HOTEL: Hearing on Disclosures and Plan Set for Oct. 25
-------------------------------------------------------------
At the behest of Herald Hotel Associates, L.P., Judge Lisa G.
Beckerman of the U.S. Bankruptcy Court for the District of Southern
District of New York will convene the combined hearing on the
adequacy of the Debtor's Amended Disclosure Statement and
confirmation of its First Amended Plan of Reorganization on October
25, 2021 at 10 a.m. (EST).
Objections must be filed by 4 p.m. (EST) on Oct. 18.
A copy of the order is available for free at https://bit.ly/3CQtA1N
from PacerMonitor.com.
About Herald Hotel Associates
Herald Hotel Associates, L.P., is a New York limited partnership,
owns and operates a full-service hotel located on 32nd Street and
Broadway in Manhattan known as the Martinique New York on Broadway.
The Debtor filed a voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 20 12266) on Sept.
22, 2020.
Judge Shelley C. Chapman oversees the case.
Tarter Krinsky & Drogin LLP serves as the Debtor's bankruptcy
counsel. The Debtor also tapped Ellenoff Grossman & Schole LLP as
its special labor counsel, replacing Kane Kessler, PC.
HIGHLAND PROPERTY: Seeks to Hire Dennis Spyra as Legal Counsel
--------------------------------------------------------------
Highland Property, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Pennsylvania to employ Dennis J.
Spyra, Esq., an attorney practicing in White Oak, Pa., to handle
its Chapter 11 case.
Mr. Spyra will render these legal services:
(a) attend the first meeting of creditors and other court
appearances;
(b) advise the Debtor regarding matters related to the status
of its secured creditors and payments required under numerous loan
agreements and tax obligations;
(c) represent the Debtor in relation to acceptance or
rejection of executory contracts;
(d) advise the Debtor with regards to its rights and
obligations concerning the Chapter 11 petition;
(e) prepare a Disclosure Statement and Plan of Reorganization;
and
(f) represent the Debtor in general through the reorganization
process.
Mr. Spyra received a retainer of $7,500 from the Debtor.
The attorney will be paid at his hourly rate of $375.
Mr. Spyra disclosed in a court filing that he is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The attorney can be reached at:
Dennis J. Spyra, Esq.
1711 Lincoln Way
White Oak, PA 15131
Telephone: (412) 673-5228
Email: attorneyspyra@dennisspyra.com
About Highland Property
Highland Property, LLC filed a voluntary petition for Chapter 11
protection (Bankr. W.D. Pa. Case No. 21-22083) on Sept. 22, 2021.
Judge Thomas P. Agresti oversees the case. Dennis J. Spyra, Esq.,
serves as the Debtor's legal counsel.
HILLTOP AT DIA: U.S. Trustee Unable to Appoint Committee
--------------------------------------------------------
The U.S. Trustee for Region 19 on Sept. 29 disclosed in a court
filing that no official committee of unsecured creditors has been
appointed in the Chapter 11 case of Hilltop at DIA, LLC.
About Hilltop at DIA
Englewood, Colo.-based Hilltop at DIA, LLC sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. D. Colo. Case No.
21-13309) on June 23, 2021, listing as much as $50 million in both
assets and liabilities. Judge Thomas B. McNamara oversees the
case. Onsager Fletcher Johnson, LLC is the Debtor's legal counsel.
IFRESH INC: Receives Noncompliance Notice From Nasdaq
-----------------------------------------------------
iFresh, Inc. received on Sept. 22, 2021, a notification from the
staff of the Listing Qualifications Department of The Nasdaq Stock
Market LLC indicating that due to the Company's continued
non-compliance with Nasdaq's annual meeting and filing
requirements, as set forth in Nasdaq Listing Rules 5620(a) and
5250(c)(1), respectively, the Company's securities were subject to
delisting unless the Company timely requests a hearing before a
Nasdaq Hearings Panel.
The Company plans to timely request a hearing before the Panel,
which request will automatically stay any further suspension or
delisting action by Nasdaq through Oct. 7, 2021. Concurrent with
the hearing request and as allowed by the Nasdaq Listing Rules, the
Company will also request a further stay of Nasdaq's determination;
that is, beyond Oct. 7, 2021 and pending the ultimate conclusion of
the hearing process.
At the hearing, the Company will present its plan to evidence
compliance with the listing rules and request an extension within
which to do so. The Panel has the discretion to grant the Company
an extension through March 28, 2022 to hold an annual meeting and
through July 11, 2022 to file its periodic reports.
As previously disclosed, the Company was unable to timely file the
Form 10-K for the fiscal year ended March 31, 2021 and Form 10-Q
for the quarter ended June 30, 2021 with the SEC due to the pending
restatement of certain of its previously filed financial
statements, which process must conclude before the Company will be
in a position to file any subsequent periodic reports with the SEC
or a proxy statement for the annual meeting.
The Company said it is taking definitive steps to evidence
compliance with the listing rules as soon as practicable; however,
there can be no assurance that the Panel will grant the Company's
request for continued listing or that the Company will be able to
evidence compliance within the period of time that may be granted
to the Company by the Panel.
About iFresh Inc.
Headquartered in Long Island City, New York, iFresh Inc. --
http://www.ifreshmarket.com-- is an Asian American grocery
supermarket chain and online grocer on the east coast of U.S. With
nine retail supermarkets along the US eastern seaboard (with
additional stores in Glen Cove, Miami and Connecticut opening
soon), and two in-house wholesale businesses strategically located
in cities with a highly concentrated Asian population, iFresh aims
to satisfy the increasing demands of Asian Americans (whose
purchasing power has been growing rapidly) for fresh and culturally
unique produce, seafood and other groceries that are not found in
mainstream supermarkets. With an in-house proprietary delivery
network, online sales channel and strong relations with farms that
produce Chinese specialty vegetables and fruits, iFresh is able to
offer fresh, high-quality specialty produce at competitive prices
to a growing base of customers.
iFresh Inc. reported a net loss of $8.29 million for the year ended
March 31, 2020, compared to a net loss of $12 million for the year
ended March 31, 2019. As of Dec. 31, 2020, the Company had $131.62
million in total assets, $110.33 million in total liabilities, and
$21.29 million in ttoal shareholders' equity.
Friedman LLP, in New York, the Company's auditor since 2016, issued
a "going concern" qualification in its report dated Aug. 13, 2020,
citing that the Company has incurred significant operating losses,
has negative working capital of $28.6 million and is not in
compliance with its credit agreement. These conditions raise
substantial doubt about the Company's ability to continue as a
going concern.
INTEGRATED GLOBAL: Seeks to Hire Davey & Associates as Accountant
-----------------------------------------------------------------
Integrated Global Concepts Medical Group, Inc., seeks approval from
the U.S. Bankruptcy Court for the Central District of California to
hire Davey & Associates as its accountant.
The firm's services include the preparation of federal and state
income tax returns for the tax years 2010 to 2020; analysis of the
Debtor's accounts to prepare the tax returns; and communications
with taxing agencies.
Kirk Davey, the firm's accountant who will be providing the
services, will be paid at the rate of $175 per hour.
Davey & Associates received a post-petition retainer in the amount
of $10,000.
Kirk Davey, founder of Davey & Associates, disclosed in a court
filing that his firm is a "disinterested person" within the meaning
of Section 101(14) of the Bankruptcy Code.
Davey & Associates can be reached through:
Kirk J. Davey
Davey & Associates
3020 Old Ranch Parkway, Suite 300
Seal Beach, CA 90740
Phone: (562) 799-5520
Fax: (562) 799-5715
Email: kdavey@daveycpas.com
About Integrated Global Concepts Medical Group
Long Beach, Calif.-based Integrated Global Concepts Medical Group,
Inc. filed a petition for Chapter 11 protection (Bankr. C.D. Cal.
Case No. 21-16329) on Aug. 9, 2021, listing as much as $10 million
in both assets and liabilities. Michael Brenner, president and
chief executive officer, signed the petition.
Judge Sandra R. Klein oversees the case.
Haberbush, LLP, and Menke Law Firm, APC, serve as the Debtor's
bankruptcy counsel and special counsel, respectively. Davey &
Associates is the Debtor's accountant.
INTEGRATED GLOBAL: Seeks to Hire Menke Law Firm as Special Counsel
------------------------------------------------------------------
Integrated Global Concepts Medical Group, Inc., seeks approval from
the U.S. Bankruptcy Court for the Central District of California to
hire Menke Law Firm, APC as its special counsel.
The firm's services include:
1. advising the Debtor in connection with the refinancing of
the loan securing its real property at 800 Rose, Long Beach,
Calif.;
2. assisting the Debtor in resolving matters related to the
title or other issues concerning the refinancing of the loan; and
3. coordinating and communicating with, or providing support
to the Debtor and its professionals, including the Debtor's
property management company.
Bruce Menke, Esq., the firm's attorney who will be providing the
services, will be paid at the rate of $425 per hour.
Mr. Menke disclosed in a court filing that his firm is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Bruce Menke, Esq.
Menke Law Firm, APC
5000 East Spring Street #405
Long Beach, CA 90815
Phone: (562) 496-4300
Fax: (562) 496-4500
Email: info@menkelaw.com
About Integrated Global Concepts Medical Group
Long Beach, Calif.-based Integrated Global Concepts Medical Group,
Inc. filed a petition for Chapter 11 protection (Bankr. C.D. Cal.
Case No. 21-16329) on Aug. 9, 2021, listing as much as $10 million
in both assets and liabilities. Michael Brenner, president and
chief executive officer, signed the petition.
Judge Sandra R. Klein oversees the case.
Haberbush, LLP and Menke Law Firm, APC, serve as the Debtor's
bankruptcy counsel and special counsel, respectively. Davey &
Associates is the Debtor's accountant.
INTELSAT SA: Equity Group Loses Bid for Bankruptcy Examiner
-----------------------------------------------------------
Allison McNeely of Bloomberg News reports that Intelsat SA's ad hoc
committee of equity holders was denied its motion to appoint an
independent examiner in the satellite company's bankruptcy case.
The equity holders asked a bankruptcy court to appoint an examiner
to investigate potential litigation, asset claims and value of
Intelsat, "whose value or attributes have been ignored or devalued
without explanation in the Chapter 11 plan," according to a court
filing.
The proposed bankruptcy plan benefits its creditors but excludes
the company and its major stakeholders, including convertible note
holders and shareholders, the equity group said in its motion.
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.
ISLAND EMPLOYEE: Wins Access to Cash Collateral Thru Oct 14
-----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Maine has authorized
Island Employee Cooperative, Inc. to use cash collateral on an
interim basis in accordance with the budget through October 14,
2021, the date of the final hearing.
Prepetition Secured Creditors (1) Coastal Enterprises, Inc. (CEI);
(2) Cooperative Fund of New England, Inc. (CFNE); (3) National
Cooperative Bank, N.A. (NCB); (4) C&S Wholesale Grocers, Inc.
(C&S); and (5) U.S. Small Business Administration assert an
interest in the cash collateral.
As adequate protection for the Debtor's use of cash collateral, the
Prepetition Secured Creditors are granted of the chapter 11 case,
valid, binding, continuing, enforceable, unavoidable, and
automatically perfected, security interests in and liens on,
whether acquired prior to or after the Petition Date.
To the extent the Adequate Protection Liens are insufficient to
cover the Adequate Protection Obligations in their entirety, the
remaining, unsatisfied Adequate Protection Obligations due to the
Prepetition Secured Creditors will constitute allowed
administrative claims against the Debtors to the extent provided by
section 507(b) of the Bankruptcy Code.
In addition to the Adequate Protection Liens, the Consenting
Lenders will continue to hold liens, rights as assignee, and/or
security interests in any and all property of the Debtor to the
same extent and validity, and in the same priority, as the
Consenting Lenders held liens, rights as assignee, and/or security
interests in the Prepetition Collateral as at the Petition Date.
The Continuing Liens and the Adequate Protection Liens will be
valid, binding, enforceable, and fully perfected without the
necessity of the execution, filing, or recording of security
agreements, pledge agreements, financing statements, fixture
filings, or other agreements. Provided, however, that the
Consenting Lenders may file or record financing.
The Court held that C&S Wholesale Grocers, Inc. will continue to
hold liens, rights as assignee, and/or security interests in any
and all property of the Debtor to the same extent and validity, and
in the same priority, as C&S held liens, rights as assignee, and/or
security interests as at the Petition Date, including as to any
inventory or other goods delivered by C&S after the Petition Date.
The C&S Liens will be valid, binding, enforceable, and fully
perfected without the necessity of the execution, filing, or
recording of security agreements, pledge agreements, financing
statements, fixture filings, or other agreements.
These events constitute an "Event of Default:"
a. the Debtor ceases operations of its present businesses or
takes any material action for the purpose of effecting the
foregoing;
b. the Interim Order is reversed, vacated, stayed, amended,
supplemented or otherwise modified in a manner which will
materially and adversely affect the rights of the Consenting
Lenders;
c. the Debtor fails to perform or breaches any of the
covenants set forth herein or any representation or warranty of the
Debtor will be false or misleading in any material respect;
d. any material and/or intentional misrepresentation by the
Debtor in the weekly financial reporting to be provided by the
Debtor under this Interim Order;
e. the Chapter 11 case of the Debtor is either dismissed or
converted to a Chapter 7 case pursuant to a final order of this
Court, the effect of which has not been stayed;
f. a Chapter 11 trustee (other than the subchapter V trustee),
or an examiner with expanded powers beyond those set forth in
Bankruptcy Code sections 1106(a)(3) and 1106(a)(4), is appointed by
a final order of the Court, the effect of which has not been
stayed, in the Chapter 11 case of the Debtor; or
g. a Termination Event occurs as such term is defined in the
Restructuring Support Agreement between the Debtor and the
Consenting Lender, provided that the Court has entered an order
authorizing the Debtor to assume the Restructuring Support
Agreement.
The October 14 final hearing is scheduled for 2 pm. Objections are
due October 12.
A copy of the order and the Debtor's 13-week budget for the period
from September 25 to December 18, 2021 is available at
https://bit.ly/3B6kwWh from PacerMonitor.com.
The Debtor projects $2,481,748 in total receipts and 2,321,141 in
total disbursements for the period.
About The Island Employee Cooperative, Inc.
The Island Employee Cooperative, Inc., d/b/a Burnt Cove Market, is
a Maine cooperative corporation created by the employees of Burnt
Cove Market, The Galley, and V&S Variety for the purpose of
purchasing the stores from Vern and Sandra Seile. It filed a
Chapter 11 petition (Bankr. D. Me. Case No. 21-10253) on September
23, 2021. In petition signed by Kristy Wiberg, president, the
Debtor disclosed $5,112,136 in total assets and $5,877,439 in total
liabilities as of August 28, 2021.
Judge Michael A. Fagone presides over the case.
Bernstein Shur Sawyer & Nelson, P.A. is the Debtor's counsel.
Spinglass Management Group is the Debtor's financial advisor.
Tanya Sambatakos has been appointed as Subchapter V Trustee.
JILL ACQUISITION: S&P Upgrades ICR to 'B-', Outlook Stable
----------------------------------------------------------
S&P Global Ratings raised its rating on Jill Acquisition LLC
(J.Jill) to 'B-' from 'CCC+'. At the same time, S&P raised its
issue-level ratings on its senior secured debt facilities to 'B-'
from 'CCC+'. The '4' recovery rating is unchanged.
The stable outlook reflects S&P's expectations that the company
will generate consistently positive free operating cash flow (FOCF)
over the next 12-24 months and maintain adequate liquidity,
including extending its asset-based lending (ABL) facility over the
short term.
Pent-up demand and more deliberate inventory positioning drove
J.Jill's recent performance improvement. The company has
successfully managed its inventory over the first half, allowing it
to fulfill demand while avoiding significant clearance activity. A
limited promotional cadence and higher full price sales have
resulted in S&P Global Ratings'-adjusted EBITDA margin expanding
more than 1,300 basis points (bps) in the second quarter of 2021
relative to the same period in 2019. S&P said, "We now expect the
company to generate around $60 million of FOCF in 2021 compared
with only about $14 million in 2019. Its good performance also
reflects strong industry-wide tailwinds, such as broad-based
pent-up demand coinciding with low inventory levels across the
retail sector, that have resulted in a less competitive
environment. We believe these temporary benefits will recede over
the short to medium term and do not expect the company to sustain
this level of performance in 2022."
S&P said, "Still, we expect the company to maintain S&P Global
Ratings'-adjusted debt to EBITDA in the low-4x area over the next
12-24 months amid a more normalized retail environment. We
anticipate it will be able to generate between $20 million and $30
million of FOCF annually. We, therefore, view its financial risk
profile as aggressive. At the same time, we revised financial
policy modifier to FS-5 from FS-6."
Headwinds related to industry-wide supply chain challenges and
normalizing demand will likely result in decelerating performance
in the second half of 2021 and into 2022. S&P said, "We assess
J.Jill's business risk profile as vulnerable based on the
discretionary nature of its products, the highly competitive
apparel retail landscape, and our view that it relies heavily on
favorable business conditions. Although we anticipate normalized
run-rate EBITDA margins at least 100 bps ahead of 2019 levels, the
company is currently facing increasing freight and supply chain
costs because of continued global, pandemic-induced disruptions.
Significantly greater shipping costs, higher use of air freight,
and increasing labor costs at its distribution centers are likely
to reverse much of J.Jill's expanded profitability over the next
year, in our view. Furthermore, we believe that as demand
normalizes, retailers will revert to a more promotional cadence in
pursuit of market share, which could pressure J.Jill to follow suit
and hurt its profitability. Nonetheless, the company has made
improvements in its operations and merchandising strategy and we
expect it will maintain some of the margin benefits it has realized
over the past year."
Sustained good performance will likely be a prerequisite to a
successful refinancing, with maturities coming due in 2023 and
2024. The company's capital structure includes a $40 million ABL
facility maturing in May 2023 and a $230 million priming loan due
in May 2024, in addition to its $15 million subordinated facility
and $5 million stub piece of its term loan. S&P said, "We do not
expect the company to face issues addressing its ABL maturity and
anticipate the company will at least extend the maturity of its ABL
facility next year. However, to secure a comprehensive at-par
refinancing of its capital structure including the term loan due in
2024, we believe it will need to demonstrate a track record of
consistent operating performance with positive free cash flow
generation and stable profitability metrics. Despite the recent
improvement, J.Jill has historically experienced unforeseen
operating volatility as a result of merchandising missteps and/or
an unfavorable operating environment. We believe future business
performance remains highly unpredictable and susceptible to
operating missteps or a less favorable retail environment, which
could potentially jeopardize a future refinancing. As such, we
assign a negative comparable ratings analysis modifier to reflect
the possibility that business performance could rapidly deteriorate
relative to our base case."
Environmental, social, and governance (ESG) credit factors for this
credit rating change:
-- Health and safety
S&P said, "The stable outlook reflects our expectation that the
company will generate positive FOCF and maintain S&P Global
Ratings'-adjusted leverage in the low-4x area. This also reflects
our anticipation that the company will successfully extend the
maturity of its ABL facility due May 2023 by the first half of
2022."
S&P could lower its rating on J.Jill if it believes its capital
structure is potentially unsustainable. This could occur if:
-- S&P does not believe it can refinance its capital structure at
par; or
-- Operating performance retracts with consistently negative
comparable sales and contracting profit margins, and S&P no longer
expects it to sustain positive FOCF.
Although unlikely over the near term, S&P could raise the rating on
J.Jill if:
-- It develops a track record of consistent good operating
performance, with reduced volatility in profitability and a growing
cash flow generation;
-- S&P Global Ratings'-adjusted leverage remains in the 4x area or
lower and we do not anticipate future leveraging transactions; and
-- It successfully refinances its entire capital structure, such
that there are no looming maturities.
KANSAS CITY UNITED: Wins Access to UMB Bank's Cash
--------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Missouri has
authorized Kansas City United Methodist Retirement Home, Inc.,
d/b/a Kingswood Senior Living Community, to use cash collateral on
a final basis, pursuant to an agreement between the Debtor and UMB
Bank, N.A., as master trustee and indenture trustee for the Senior
Living Facility Revenue Bonds (Kingswood Project) Series 2016.
The Debtor is permitted to use the cash collateral, pursuant to the
current interim order, in the ordinary course of its business until
the earlier of (i) the Debtor's ability to use Cash Collateral
terminates as the result of the occurrence of a Termination Event,
or (ii) the last day included in the Cash Collateral Budget.
Before the Petition Date, the Industrial Development Authority of
the City of Kansas City, Missouri, issued its $51,770,000 Senior
Living Facility Revenue Bonds (Kingswood Project) Series 2016
pursuant to a Bond Trust Indenture dated January 1, 2016 between
the Issuer and UMB Bank, as Bond Trustee. Proceeds from the bond
sale were loaned by the Issuer to the Debtor pursuant to a Loan
Agreement dated January 1, 2016.
As of the Petition Date, the Debtor owed $51,055,000 in unpaid
principal; $5,319,112 in accrued and unpaid bond interest, plus
unliquidated, accrued and unpaid fees and expenses incurred by the
Bond Trustee and its professionals through the Petition Date, which
amounts when liquidated shall be added to the aggregate amount of
the Bond Claim.
As adequate protection, the Bond Trustee will have a replacement
lien and security interest in (i) all assets of the Debtor existing
on or after the Petition Date, of the same type as the Prepetition
Bond Collateral, together with the proceeds thereof, and (ii) in
all other assets of the Debtor, of any nature, within the meaning
of Section 541 of the Bankruptcy Code, except for actions for
preferences, fraudulent conveyances or other avoidance power
claims.
The Bond Trustee will also have a superpriority administrative
expense claim pursuant to Section 507(b) of the Bankruptcy Code, as
additional adequate protection.
A copy of the interim order and the Debtor's budget is available
for free at https://bit.ly/3Fc4AUO from PacerMonitor.com.
The budget covering the period through November 14, 2021, provided
for these weekly operating disbursements:
$108,909 for the week ending September 26, 2021;
$318,705 for the week ending October 3, 2021;
$149,130 for the week ending October 10, 2021;
$648,263 for the week ending October 17, 2021;
$172,960 for the week ending October 24, 2021;
$308,921 for the week ending October 31, 2021;
$145,353 for the week ending November 7, 2021; and
$775,305 for the week ending November 14, 2021.
About Kansas City United Methodist
Retirement Home, Inc.
Kansas City United Methodist Retirement Home, Inc., d/b/a Kingswood
Senior Living Community, operates a continuing care retirement
community and assisted living facility the elderly in Kansas City,
Missouri. The entity sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Mo. Case No. 21-41049) on August 18,
2021.
In the petition signed by Ross P. Marine, chairman of the Board,
the Debtor estimated $10 million to $50 million in assets and $50
million to $100 million in liabilities.
Judge Cynthia A. Norton is assigned to the case.
Mcdowell, Rice, Smith & Buchanan, PC serves as the Debtor's
counsel.
UMB Bank, N.A., bond trustee, is represented by Mintz, Levin, Cohn,
Ferris, Glovsky and Popeo, P.C.
L'INC D'ALINE: Seeks Cash Collateral Access
-------------------------------------------
L'Inc D'Aline Corporation asks the U.S. Bankruptcy Court for the
Central District of California, Santa Ana Division, for authority
to use the cash collateral of its secured creditors Ennerdale
Corporation Defined Benefit Plan & Trust, for the benefit of Alan
Reay; and Ennerdale Corporation 401K, for the benefit of Alan Reay;
DSXW Holdings, Inc.; Financial Pacific Leasing, Inc.; Tesoro
Refining & Marketing Company, LLC; and Lien Solutions.
The Debtor requires the use of cash collateral to pay the
reasonable expenses it incurs during the ordinary course of its
business including Ennerdale's loans, insurance, underground tax
payments, property taxes, and other necessary business expenses.
The Debtor is the owner of the real property located at 7470
Cerritos Avenue, Stanton, California 90680.
Ennerdale Corporation Defined Benefit Plan & Trust, for the benefit
of Alan Reay; and Ennerdale Corporation 401K, for the benefit of
Alan Reay, hold the first and second deeds of trust on the Property
for a total claim amount of $1,923,845.
On December 30, 2020, Poppy Bank, the original holder of the first
and second deeds of trust for the Property, assigned its interest
to Ennerdale pursuant to a Loan Purchase Agreement, dated as of
December 17, 2020.
The Property is further encumbered by property taxes owed to the
Orange County Treasurer and Tax Collector, and other lienholders
such DSXW Holdings, Inc., Vendor Services Center, Financial Pacific
Leasing, Inc., Tesoro Refining & Marketing Company, LLC, and Lien
Solutions. These secured claims, including Ennerdale's claims,
total $3,369,462.
The Debtor's unsecured priority obligations consist of the
Franchise Tax Board with an estimated claim of $17,000. The
Debtor's unsecured non-priority claim consists of Southern
California Edison with an estimated claim of $17,000.
The Debtor filed for emergency Chapter 11 bankruptcy to stave off
Ennerdale's scheduled August 3 foreclosure sale of the Property.
The Debtor believes its assets more than adequately protect
Ennerdale, which asserted that its claim is for $2,422,254, not
$1,923,845. On September 15, 2021, the Debtor conducted an
appraisal of the Property, which valued the Property at $3,260,000,
thus providing substantial equity cushion.
Additionally, the Debtor is in discussions with a new tenant who
may potentially pay $1,000 more than what the current tenant is
paying, and the Debtor's principal is willing to pay from his own
personal funds Ennerdale's adequate protection payment even if the
Debtor is unable to secure a new tenant for the Property without
seeking any reimbursement from the Debtor.
The Debtor proposes that it use the cash collateral from the income
it generates from the Property to pay the allowed expenses pursuant
to the Debtor's budget, with a 15% variance.
The Debtor will also continue to pay adequate protection payments
to Ennerdale's loans that are equivalent the monthly payments it
would be required to make. The Debtor currently pays an adequate
protection payment of $9,041 for Ennerdale's first loan, and $6,268
for Ennerdale's second loan for a total monthly sum of $15,309. No
adequate protection payment will be provided to any of the other
Secured Creditors.
According to the Debtor, should it sell the Property, the sale
offers a full repayment of Ennerdale's loans.
A copy of the motion and the Debtor's budget from October 2021 to
March 2022 is available at https://bit.ly/39X3cGV from
PacerMonitor.com.
The Debtor projects $22,636 in gross income and $19,450 in total
expenses for October 2021.
About L'Inc D'Aline Corporation
L'Inc D'Aline Corporation owns a real property located at 7470
Cerritos Avenue, Stanton, California 90680. The Debtor sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
C.D. Cal. Case No. 21-11906) on August 3, 2021. In the petition
signed by Zaal John Haddadin, chief executive officer, the Debtor
disclosed up to $10 million in both assets and liabilities.
Judge Scott C. Clarkson oversees the case.
Michael Jay Berger, Esq., at Law Offices of Michael Jay Berger, is
the Debtor's counsel.
LA TERRAZA: Fine-Tunes Plan; Confirmation Hearing Oct. 26
---------------------------------------------------------
La Terraza, Inc., submitted an Amended Subchapter V Plan.
The Debtor submits to the supervision and control of the Chapter
11, Subchapter V trustee the amounts set forth from the Debtor's
future disposable income from its business operations as required
for performance of this Chapter 11 Plan. The Debtor will be able to
make all payments under its Chapter 11 case and will be able to
otherwise comply with the Chapter 11 Plan. The Debtor shall move
the Court for approval of a period of Plan payments lasting for 5
years.
The Plan will treat claims as follows:
* Class 3 consists of the unsecured claim of On Deck Capital.
The claim of On Deck is unsecured and is in the estimated amount of
approximately $114,462. Within 30 days of the effective date of
the Plan, the Debtor shall commence quarterly payments to the
Trustee in the amount of $6,867.70 which equates to approximately
5% of the aggregate amount of the allowed priority claims and the
Designated Agent shall deliver such quarterly payments to the
applicable priority creditors over a 5 year time period.
* Class 4 consists of the unsecured claim of Southern Glazer
Wine & Spirits. Within 30 days of the Effective Date of the Plan,
the Debtor shall commence quarterly payments to the non-trustee
Disbursing Agent in the amount of $919.70 which equates to
approximately 5% of the aggregate amount of the allowed priority
claims and the Designated Agent shall thereafter deliver such
quarterly payments to the applicable priority creditors over a
5-year time period.
* Class 5 consists of the Contingent Claim of Enterprise Bank
& Trust. Payments on all the loans are made by The Morse Building,
LLC from tenant income from the building located 1027 2nd St., Old
Sacramento, 95814; all payments on the loans are current and will
remain so.
* Class 11 consists of the Allowed Unsecured Claims. The
aggregate amount of Class 7 claims is estimated to be $19,579,
assuming all unsecured claims that have been filed as of the date
of this Plan are allowed in full. On March 25th and December 25th
of each year of plan performance (beginning in March 2022), the
Debtor shall make payments to the Designated Agent in the amount of
$2000.00 to be applied on a pro rata basis to Class 5 allowed
unsecured claims for 5 years following the effective date of the
Plan.
On the fifth anniversary of the effective date of the Plan, the
Debtor shall pay the entire remaining outstanding amount of each
Class 5 allowed unsecured claim directly to each general unsecured
creditor holding an allowed claim.
The Debtor shall implement the Plan by continuing its restaurant
operations on the Old Sacramento, which shall consist of the sale
of food and beverages; the Debtor's family affiliate businesses may
also contribute funds to Debtor's Plan, if and to the extent
necessary. The funds necessary for implementing the Plan shall be
derived from such La Terraza business operations.
The Bankruptcy Court has scheduled Oct. 26, 2021 at 2:00 p.m. as
the hearing of the Amended Subchapter V Plan.
A full-text copy of the Amended Subchapter V Plan dated September
27, 2021, is available at https://bit.ly/3olczso from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
Noel Knight, Esq.
The Knight Law Group
800 J St., Ste. #441,
Oakland, CA 95814
Phone: (510) 435 9210
Fax: (510) 281 6889
Email: lawknight@theknightlawgroup.com
About La Terraza Inc.
La Terraza, Inc. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. E.D. Cal. Case No. 21-21012) on March 23,
2021. At the time of the filing, the Debtor disclosed total assets
of up to $50,000 and total liabilities of up to $500,000. The
Knight Law Group and Dr. Betsy Peterson serve as the Debtor's legal
counsel and accountant, respectively.
LATAM AIRLINES: Board Okays $750M Financing From Oaktree, Apollo
----------------------------------------------------------------
LATAM said Sept. 29, 2021, that it obtained committed financing of
up to US$750 million for Tranche B of the DIP (debtor in
possession) financing at more competitive rates and conditions than
those obtained for Tranches A and C, which will allow the group to
improve its cost of financing under Chapter 11.
After receiving multiple Tranche B offers from investors, on Sept.
24, the LATAM Board of Directors approved, by a unanimous vote from
the independent directors, the proposal presented by a group of
financiers composed of Oaktree Capital Management, L.P., Apollo
Management Holdings, L.P. and certain funds, accounts and entities
advised by the aforementioned parties. The DIP Tranche B financing
proposal would result in significant savings for the group.
"We received several offers from investors who have expressed their
interest in supporting us in our Chapter 11 process. This proposal
will allow us access to better financing conditions, generating
significant cost savings and benefiting our creditors and LATAM",
LATAM Airlines Group CFO, Ramiro Alfonsín, said.
The resulting DIP financing structure would be as follows: Tranche
A, which comprises up to US$1.3 billion of committed funds, Tranche
C with up to US$1.15 billion of committed funds, in addition to
Tranche B that totals up to US$750 million. To date, US$1.65
billion have been drawn from Tranches A and C.
The incorporation of the committed funds from Tranche B of the DIP
financing is subject to the US Court's approval. Notwithstanding,
LATAM could eventually receive other proposals to grant financing
under Tranche B of the DIP Credit Agreement, in which case they
would be duly assessed by the Company and its advisors.
About LATAM Airlines Group
LATAM Airlines Group S.A. -- http://www.latam.com/-- is a
pan-Latin American airline holding company involved in the
transportation of passengers and cargo and operates as one unified
business enterprise. It is the largest passenger airline in South
America.
Before the onset of the COVID-19 pandemic, LATAM offered passenger
transport services to 145 different destinations in 26 countries,
including domestic flights in Argentina, Brazil, Chile, Colombia,
Ecuador and Peru, and international services within Latin America
as well as to Europe, the United States, the Caribbean, Oceania,
Asia and Africa.
LATAM and its 28 affiliates sought Chapter 11 protection (Bankr.
S.D.N.Y. Lead Case No. 20-11254) on May 25, 2020. Affiliates in
Chile, Peru, Colombia, Ecuador and the United States are part of
the Chapter 11 filing.
The Debtors disclosed $21,087,806,000 in total assets and
$17,958,629,000 in total liabilities as of Dec. 31, 2019.
The Hon. James L. Garrity, Jr., is the case judge.
The Debtors tapped Cleary Gottlieb Steen & Hamilton LLP as
bankruptcy counsel, FTI Consulting as restructuring advisor, Lee
Brock Camargo Advogados as local Brazilian litigation counsel, and
Togut, Segal & Segal LLP and Claro & Cia in Chile as special
counsel. The Boston Consulting Group, Inc. and The Boston
Consulting Group UK LLP serve as the Debtors' strategic advisors.
Prime Clerk LLC is the claims agent.
The official committee of unsecured creditors formed in the case
tapped Dechert LLP as its bankruptcy counsel, Klestadt Winters
Jureller Southard & Stevens, LLP as conflicts counsel, UBS
Securities LLC as investment banker, and Conway MacKenzie, LLC as
financial advisor. Ferro Castro Neves Daltro & Gomide Advogados is
the committee's Brazilian counsel.
The Ad Hoc Group of LATAM Bondholders tapped White & Case LLP as
counsel.
Glenn Agre Bergman & Fuentes, LLP, led by managing partner Andrew
Glenn and partner Shai Schmidt, has been retained as counsel to the
Ad Hoc Committee of Shareholders.
LIFE CENTER CHURCH: Taps William Jamison as Bankruptcy Attorney
---------------------------------------------------------------
Life Center Church of God in Christ seeks approval from the U.S.
Bankruptcy Court for the Northern District of Illinois to hire
William Jamison, Jr., Esq., an attorney practicing in Chicago, to
handle its Chapter 11 case.
The services that will be provided by the attorney include:
1. advising the Debtor with respect to its powers and duties
in the continued operation of its business;
2. assisting the Debtor in the negotiation, preparation and
confirmation of a plan of reorganization;
3. assisting the Debtor in investigating and pursuing all
rights and claims in connection with preserving the value of its
assets and rehabilitating property of the estate, including the
prosecution of claims against insurers of the Debtor's property;
4. taking necessary actions with respect to any claims that
may be asserted against the Debtor and preparing legal papers; and
5. performing all other necessary legal services.
Mr. Jamison will be paid at the rate of $350 per hour. He received
$18,262 as an advance retainer.
As disclosed in court filings, Mr. Jamison does not represent
interests adverse to the Debtor's bankruptcy estate.
Mr. Jamison holds office at:
William E. Jamison, Jr., Esq.
William E. Jamison & Associates
53 W. Jackson Blvd., Suite #309
Chicago, IL 60604
Tel: (312) 226-8500
Email: wjami39246@aol.com
About Life Center Church of God in Christ
Life Center Church of God in Christ, a tax-exempt religious
organization based in Chicago, sought protection under Chapter 11
of the Bankruptcy Code (Bankr. N.D. Ill. Case No. 21-10661) on
Sept. 15, 2021, listing as much as $10 million in both assets and
liabilities. T.L. Barrett, Jr., president of Life Center Church,
signed the petition.
Judge Carol A. Doyle oversees the case.
William E. Jamison, Jr., Esq., at William E. Jamison & Associates,
serves as the Debtor's legal counsel.
LIMETREE BAY: Seeks to Hire Claro Group as Insurance Consultant
---------------------------------------------------------------
Limetree Bay Refining, LLC, seeks approval from the U.S. Bankruptcy
Court for the Southern District of Texas to hire The Claro Group,
LLC as its insurance consultant.
The Debtor needs an insurance consultant to assist with insurance
recoveries from multiple lines of coverage related to the damage
associated with the upset events that took place at a refinery in
February and May 2021. The assistance is necessary for the Debtor
to propose a Chapter 11 plan of reorganization.
The firm's hourly rates are as follows:
Managing Directors $495 - $650 per hour
Directors/Senior Advisors $450 - $495 per hour
Managers/Sr. Managers $350 - $445 per hour
Analysts/Senior Consultants $265 - $305 per hour
Administrative Personnel $125 - $175 per hour
As disclosed in court filings, Claro Group is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Ronald Van Epps
The Claro Group, LLC
123 N. Wacker Drive, Suite 2100
Chicago, IL 60606
Phone: (312) 546-3407 / (312) 546-3400
Mobile: (312) 543-9683
Fax: 312-554-8085
Email: rvanepps@theclarogroup.com
About Limetree Bay
Limetree Bay Energy is a large-scale energy complex strategically
located in St. Croix, U.S. Virgin Islands. The complex consists of
Limetree Bay Refining, a refinery with peak processing capacity of
650 thousand barrels of petroleum feedstock per day, and Limetree
Bay Terminal, a 34-million-barrel crude and petroleum products
storage and marine terminal facility serving the refinery and
third-party customers.
Limetree Bay Refining, LLC, restarted operations in February 2021,
and is capable of processing around 200,000 barrels per day. Key
restart work at the site began in 2018, including the 62,000
barrels per day modern, delayed Coker unit, extensive
desulfurization capacity, and a reformer unit to produce clean,
low-sulfur transportation fuels. The restart project provided much
needed economic development in the U.S.V.I. and created more than
4,000 construction jobs at its peak.
Limetree Bay Refining, LLC and its affiliates sought Chapter 11
protection on July 12, 2021. The lead case is In re Limetree Bay
Services, LLC (Bankr. S.D. Texas Case No. 21-32351).
Limetree Bay Terminals, LLC did not file for bankruptcy.
In the petitions signed by Mark Shapiro, chief restructuring
officer, Limetree Bay Services disclosed up to $10 million in
assets and up to $50,000 in liabilities. Limetree Bay Refining,
LLC, estimated up to $10 billion in assets and up to $1 billion in
liabilities.
The Debtors tapped Baker & Hostetler LLP as bankruptcy counsel;
Beckstedt & Kuczynski LLP and Hughes Arrell Kinchen, LLP as special
counsel; The Claro Group, LLC as insurance consultant; and
GlassRatner Advisory & Capital LLC, doing business as B. Riley
Advisory Services, as restructuring advisor. Mark Shapiro of
GlassRatner is the Debtors' chief restructuring officer.
The U.S. Trustee for Region 7 appointed an official committee of
unsecured creditors in the Debtors' cases on July 26, 2021.
Pachulski Stang Ziehl & Jones, LLP and Conway MacKenzie, LLC serve
as the committee's legal counsel and financial advisor,
respectively.
405 Sentinel, LLC serves as administrative and collateral agent for
the DIP lenders.
LINDSAY YORK: Case Summary & 14 Unsecured Creditors
---------------------------------------------------
Debtor: Lindsay York Fantaci, M.D., L.L.C.
1111 Medical Center Blvd
Suite N 803
Marrero, LA 70072
Business Description: Lindsay York Fantaci, M.D., L.L.C. is a
medical group practice located in Marrero,
LA that specializes in pediatrics.
Chapter 11 Petition Date: September 30, 2021
Court: United States Bankruptcy Court
Eastern District of Louisiana
Case No.: 21-11186
Judge: Hon. Meredith S. Grabill
Debtor's Counsel: T. Randolph Richardson, Esq.
GARNER & MUNOZ
935 Gravier Street Suite 1140
New Orleans, LA 70112
Tel: 504-212-4163
Email: trichar994@aol.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Lindsay York Fantaci, M.D., as owner.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 14 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/FA6LWGY/Lindsay_York_Fantaci_MD_LLC__laebke-21-11186__0001.0.pdf?mcid=tGE4TAMA
LIVE PRIMARY: Seeks to Hire Cole Schotz as Real Estate Counsel
--------------------------------------------------------------
Live Primary, LLC, seeks approval from the U.S. Bankruptcy Court
for the Southern District of New York to hire Cole Schotz P.C. as
its real estate counsel.
The Debtor needs legal services specifically related to real estate
issues such as those concerning its lease with Broadway 26
Waterview LLC, and those relevant to the operation of its business
and management of its premises located at 26 Broadway, New York.
Cole Schotz will charge no more than $645 per hour for the services
of its attorneys.
Jordan Metzger, Esq., at Cole Schotz, disclosed in a court filing
that the firm and its attorneys do not hold an interest materially
adverse to the interest of the Debtor's estate.
Cole Schotz can be reached through:
Jordan J. Metzger, Esq.
Cole Schotz P.C.
1325 Avenue of the Americas, 19th Floor
New York, NY 10019
Tel: 212-752-8000
Fax: 212-752-8393
Email: info@coleschotz.com
About Live Primary LLC
Live Primary -- https://liveprimary.com/ -- which conducts business
under the name Primary, is a co-working and shared office space
featuring an array of amenities designed to help people feel good
while working to make their businesses thrive.
Live Primary sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. S.D.N.Y. Case No. 20-11612) on July 12, 2020, listing
up to $10 million in assets and up to $50 in liabilities. The case
is assigned to Judge Martin Glenn. Sanford P. Rosen, Esq., at
Rosen and Associates PC and Cole Schotz P.C. serve as the Debtor's
bankruptcy counsel and real estate counsel, respectively.
Daniel J. Weiner, Esq., at Schafer & Weiner, PLLC, serves as legal
counsel for David Kirshenbaum, the noteholders' representative.
Broadway 26 Waterview, LLC, the Debtor's landlord, is represented
in the case by Jay B. Itkowitz, Esq., at Itkowitz PLLC.
LOUISIANA CRANE: Creditors Complain of Repayment Provision in Plan
------------------------------------------------------------------
Cerny Real Estate, LLC & Reese Interests, LLC, in an objection to
confirmation of the Chapter 11 Plan of Louisiana Crane &
Construction, LLC, disclosed that they do not favor the repayment
provisions to creditors in Class 12. Cerny and Reese assert a
total of $748,784 for a prepetition loan granted under a Promissory
Note, Deed of Trust and Security Agreement, secured by the Debtor's
7.6 acres of land located in Atascosa County, Texas.
The creditors also complained that treatment of claims in Class 13
fails to provide that the Debtor will timely pay all insurance and
tax payments due under the terms of the Note, Deed of Trust and
Security Agreements.
In light of these, the creditors asked the Court to deny
confirmation to the Debtor's Plan.
A copy of the objection is available for free at
https://bit.ly/3ugKCmL from PacerMonitor.com.
Counsel for Cerny Real Estate, LLC and Reese Interests, LLC:
Richard A. Rozanski, Esq.
Richard A. Rozanski, APLC
P.O. Box 13199
Alexandria, LA 71315-3199
Telephone: (318) 445-5600
About Louisiana Crane
Louisiana Crane & Construction, LLC, is a Eunice, La.-based
supplier of traditional crane services and general oilfield
construction, pipeline, plant maintenance, rotating equipment, and
millwright services.
Louisiana Crane & Construction sought protection under Chapter 11
of the Bankruptcy Code (Bankr. W.D. La. Case No. 21-50198) on April
6, 2021. At the time of the filing, the Debtor had between $10
million and $50 million in both assets and liabilities. Judge John
W. Kolwe oversees the case. Heller, Draper & Horn, LLC is the
Debtor's legal counsel while Darnall Sikes & Frederick serves as
its accountant.
LOVES FURNITURE: Court Approves Bankruptcy Plan With Hefty Payouts
------------------------------------------------------------------
Daniel Gill, writing for Bloomberg Law, reports that Loves
Furniture Inc., the bankrupt retailer born from the assets of
now-defunct Art Van Furniture LLC, won bankruptcy court approval to
distribute its liquidated assets to creditors.
Judge Thomas J. Tucker of the U.S. Bankruptcy Court for the Eastern
District of Michigan approved the company's Chapter 11 plan at a
hearing Wednesday. Loves faced no opposition to its plan following
recent negotiations with its creditors.
The Warren, Mich.-based company's equity holders were the only
group that voted to reject the plan. They will get nothing for
their interests, Loves' attorney, Max Newman of Butzel Long PC,
said at the hearing.
About Loves Furniture
Loves Furniture Inc. -- http://www.lovesfurniture.com/-- is a
furniture retailer that sells furniture, mattresses, home decor and
appliances. It conducts business under the name Loves Furniture and
Mattresses.
Loves Furniture sought Chapter 11 protection (Bankr. E.D. Mich.
Case No. 21-40083) on Jan. 6, 2021. The Debtor was estimated to
have $10 million to $50 million in assets and liabilities at the
time of the filing.
Judge Thomas J. Tucker oversees the case.
The Debtor tapped Butzel Long, A Professional Corporation, led by
Max J. Newman, Esq., as legal counsel; B. Riley Advisory Services
as financial advisor; and Stretto as claims and noticing agent.
On Jan. 14, 2021, the U.S. Trustee for Region 9 appointed an
official committee of unsecured creditors. The committee tapped
Foley & Lardner LLP as its legal counsel and Conway Mackenzie, LLC
as its financial advisor.
MALLINCKRODT PLC: Bonds Decreased After Acthar Claim Ruling
-----------------------------------------------------------
Jeremy Hill, writing for Bloomberg News, reports that bonds tied to
Mallinckrodt Plc traded lower on Wednesday, September 29, 2021,
after the drugmaker's bankruptcy judge declined to throw out claims
from insurers tied to the company's alleged price gouging.
The company's 5.75% unsecured bonds due 2022 and its 5.625%
unsecured bonds due 2023 fell at least 8 cents on the dollar to
below 50 cents in late Wednesday, September 29, 2021, trading,
according to Trace data. For both sets of notes, it's their lowest
price seen since February 2021.
About Mallinckrodt PLC
Mallinckrodt is a global business consisting of multiple
wholly-owned subsidiaries that develop, manufacture, market and
distribute specialty pharmaceutical products and therapies. The
company's Specialty Brands reportable segment's areas of focus
include autoimmune and rare diseases in specialty areas like
neurology, rheumatology, nephrology, pulmonology and ophthalmology;
immunotherapy and neonatal respiratory critical care therapies;
analgesics; and gastrointestinal products. Its Specialty Generics
reportable segment includes specialty generic drugs and active
pharmaceutical ingredients. Visit http://www.mallinckrodt.com/
On Oct. 12, 2020, Mallinckrodt plc and certain of its affiliates
sought Chapter 11 protection in Delaware in the U.S. (Bankr. D.
Del. Lead Case No. 20-12522) to seek approval of a restructuring
that would reduce total debt by $1.3 billion and resolve
opioid-related claims against them.
Mallinckrodt plc disclosed $9,584,626,122 in assets and
$8,647,811,427 in liabilities as of Sept. 25, 2020.
Judge John T. Dorsey oversees the cases.
The Debtors tapped Latham & Watkins LLP and Richards, Layton &
Finger P.A. as their bankruptcy counsel; Arthur Cox and Wachtell,
Lipton, Rosen & Katz as corporate and finance counsel; Ropes & Gray
LLP as litigation counsel; Torys LLP as CCAA counsel; Guggenheim
Securities LLC as investment banker; and AlixPartners LLP as
restructuring advisor. Prime Clerk, LLC, is the claims agent.
The official committee of unsecured creditors retained Cooley LLP
as its legal counsel, Robinson & Cole LLP as co-counsel, and Dundon
Advisers LLC as its financial advisor.
On Oct. 27, 2020, the U.S. Trustee for Region 3 appointed an
official committee of opioid related claimants. The OCC tapped
Akin Gump Strauss Hauer & Feld LLP as its lead counsel, Cole Schotz
as Delaware co-counsel, Province Inc. as financial advisor, and
Jefferies LLC as investment banker.
The Debtors filed their plan of reorganization and disclosure
statement on April 20, 2021.
MALLINCKRODT PLC: To Face Acthar Price-Gouging Claims Trial
-----------------------------------------------------------
Jeremy Hill of Bloomberg News reports that Mallinckrodt Plc lost a
bid to dismiss major insurers' claims of high-priority damages
flowing from alleged price-gouging, meaning the drugmaker will have
to fight over the claims at a full-blown trial, its bankruptcy
judge ruled Wednesday, September 29, 2021.
U.S. Bankruptcy Judge John Dorsey during a hearing Wednesday denied
Mallinckrodt's motion to toss high-ranking claims alleged by Humana
and Aetna. Despite the drugmaker's bankruptcy, the insurers have
had to keep reimbursing their customers for Mallinckrodt's Acthar
Gel at what they allege are illegally high prices.
This means insurers are entitled to so-called administrative claims
for damages incurred since the bankruptcy began.
About Mallinckrodt PLC
Mallinckrodt is a global business consisting of multiple
wholly-owned subsidiaries that develop, manufacture, market and
distribute specialty pharmaceutical products and therapies. The
company's Specialty Brands reportable segment's areas of focus
include autoimmune and rare diseases in specialty areas like
neurology, rheumatology, nephrology, pulmonology and ophthalmology;
immunotherapy and neonatal respiratory critical care therapies;
analgesics; and gastrointestinal products. Its Specialty Generics
reportable segment includes specialty generic drugs and active
pharmaceutical ingredients. Visit http://www.mallinckrodt.com/
On Oct. 12, 2020, Mallinckrodt plc and certain of its affiliates
sought Chapter 11 protection in Delaware in the U.S. (Bankr. D.
Del. Lead Case No. 20-12522) to seek approval of a restructuring
that would reduce total debt by $1.3 billion and resolve
opioid-related claims against them.
Mallinckrodt plc disclosed $9,584,626,122 in assets and
$8,647,811,427 in liabilities as of Sept. 25, 2020.
Judge John T. Dorsey oversees the cases.
The Debtors tapped Latham & Watkins LLP and Richards, Layton &
Finger P.A. as their bankruptcy counsel; Arthur Cox and Wachtell,
Lipton, Rosen & Katz as corporate and finance counsel; Ropes & Gray
LLP as litigation counsel; Torys LLP as CCAA counsel; Guggenheim
Securities LLC as investment banker; and AlixPartners LLP as
restructuring advisor. Prime Clerk, LLC, is the claims agent.
The official committee of unsecured creditors retained Cooley LLP
as its legal counsel, Robinson & Cole LLP as co-counsel, and Dundon
Advisers LLC as its financial advisor.
On Oct. 27, 2020, the U.S. Trustee for Region 3 appointed an
official committee of opioid related claimants. The OCC tapped
Akin Gump Strauss Hauer & Feld LLP as its lead counsel, Cole Schotz
as Delaware co-counsel, Province Inc. as financial advisor, and
Jefferies LLC as investment banker.
The Debtors filed their plan of reorganization and disclosure
statement on April 20, 2021.
MASTER TECH: Seeks to Hire Joyce W. Lindauer as Legal Counsel
-------------------------------------------------------------
Master Tech Service Corp. seeks approval from the U.S. Bankruptcy
Court for the Northern District of Texas to hire Joyce W. Lindauer
Attorney, PLLC as its legal counsel.
The firm will assist the Debtor in the preparation of a plan of
reorganization and will provide other legal services in connection
with its Chapter 11 case.
The firm's hourly rates are as follows:
Joyce W. Lindauer, Esq. $450 per hour
Kerry S. Alleyne, Esq. $300 per hour
Guy H. Holman, Esq. $250 per hour
Paul B. Geilich, Esq. $395 per hour
Paralegals/Legal Assistants $65 to $125 per hour
The firm received a retainer in the amount of $11,750.
Joyce Lindauer, Esq., disclosed in a court filing that the contract
attorneys and members of the firm are "disinterested" within the
meaning of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Joyce W. Lindauer, Esq.
Joyce W. Lindauer Attorney, PLLC
1412 Main Street, Suite 500
Dallas, TX 75202
Tel: (972) 503-4033
Fax: (972) 503-4034
Email: joyce@joycelindauer.com
About Master Tech Service Corp.
Dallas, Texas-based Master Tech Service Corp. is a full-service
mechanical contractor, offering residential and commercial
companies quality air conditioning, heating unit installation,
repair and full plumbing repairs and services.
Master Tech Service sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Texas Case No. 21-42102) on Sept. 1,
2021, listing up to $1 million in assets and up to $10 million in
liabilities. Judge Edward L. Morris oversees the case. Joyce W.
Lindauer Attorney, PLLC is the Debtor's legal counsel.
MEDLEY LLC: Members of Plan Oversight Committee Identified
----------------------------------------------------------
On Aug. 16, 2021, the U.S. Bankruptcy Court for the District of
Delaware entered an order approving the adequacy of disclosures in
the Third Amended Combined Disclosure Statement and Plan for Medley
LLC on an interim basis and scheduling a hearing for Oct. 5 at 1:00
p.m. (ET) to consider approval of the adequacy of disclosures on a
final basis and confirmation of the Combined Disclosure Statement
and Plan.
The Plan provides that on the Effective Date of the Plan, the
Oversight Committee will be established consisting of three
members, two of whom will be appointed by the Creditors' Committee
and one of whom will be appointed initially by Medley Capital.
On Sept. 17, the Debtor filed the Liquidating Trust Agreement that
identified the two members of the Oversight Committee initially
appointed by the Creditors' Committee:
(1) Glenn Gardipee
(2) James MacAyeal
According to a Sept. 28 filing, Medley Capital has appointed as a
member of the Oversight Committee:
(3) Howard Liao
Upon the Wind-Down Date, Howard Liao will resign and be replaced by
Carl Wegerer, who has been selected by the Creditors' Committee as
the successor member of the Oversight Committee.
In accordance with the Liquidating Trust Agreement, the Oversight
Committee will have these rights and responsibilities:
(i) terminate by unanimous vote the Liquidating Trustee and
appoint a successor liquidating trustee;
(ii) employ and retain professionals for the Liquidating Trust;
(iii) approve the sale or other monetization of any Assets
remaining in the Debtor's Estate over $100,000, including, the
Debtor's direct or indirect investments in funds managed by any
Affiliate of the Debtor;
(iv) receive and review any report detailing the means by which
the Liquidating Trustee invests and/or insures the remaining assets
pending final distributions under the Plan;
(v) approve certain delineated actions of the Liquidating
Trustee; and
(vi) approve any amended Wind-Down Budget through the Wind-Down
Date.
About Medley LLC
Medley LLC, through its direct and indirect subsidiaries, including
Medley Capital LLC, is an alternative asset management firm
offering yield solutions to retail and institutional investors. It
provides investment management services to a permanent capital
vehicle, long-dated private funds, and separately managed accounts,
and serves as the general partner to the private funds. Medley is
headquartered in New York City and incorporated in Delaware.
As of Sept. 30, 2020, Medley had $3.4 billion of assets under
management in two business development companies, Medley Capital
Corporation (NYSE: MCC) and Sierra Income Corporation, and several
private investment vehicles. Over the past 18 years, Medley has
provided capital to over 400 companies across 35 industries in
North America.
Medley filed a Chapter 11 bankruptcy petition (Bankr. D. Del. Case
No. 21-10526) on March 7, 2021. The Debtor disclosed $5,422,369 in
assets and $140,752,116 in liabilities as of March 2, 2021.
The Debtor tapped Lowenstein Sandler LLP and Morris James LLP as
bankruptcy counsel, Eversheds Sutherland (US) LLP as special
counsel, B. Riley Securities Inc. as investment banker, and
Andersen Tax LLC as tax accountant. Corporation Service Company
serves as the Debtor's independent manager. Kurtzman Carson
Consultants, LLC is the claims agent.
The U.S. Trustee for Region 3 appointed an official committee of
unsecured creditors on April 22, 2021. The committee is
represented by Potter Anderson & Corroon, LLP and Kelley Drye &
Warren, LLP.
MEDLEY LLC: U.S. Trustee Opposes Chapter 11 Liability Releases
--------------------------------------------------------------
Vince Sullivan of Law360 reports that the Office of the U.S.
Trustee objected late Tuesday, September 28, 2021, to the Chapter
11 plan of asset management firm Medley LLC, saying the plan
contains an overly broad exculpation of parties that worked on the
bankruptcy case and calls for the release of nondebtor parties who
haven't substantially contributed to the plan.
In the objection, the trustee argued that Medley's plan is
unconfirmable because it doesn't meet the standards embodied in the
federal Bankruptcy Code that limit the parties who can receive an
exculpation or a release.
The U.S. Trustee objects to the Combined Disclosure Statement and
Plan on the following grounds:
* The Combined Disclosure Statement and Plan contains an
overbroad exculpation provision that extends to parties that are
not estate fiduciaries.
* To be consistent with applicable law in this District, the
Debtor must establish that each party to be released by the Debtor
has made a substantial contribution to the Combined Disclosure
Statement and Plan, among other requirements.
* The Combined Disclosure Statement and Plan provides for the
payment of the indenture trustee's professional fees and expenses
without a showing of substantial contribution by those parties
under 11 U.S.C. Sec. 503(b).
* The Combined Disclosure Statement and Plan provides for the
payment of retention bonuses to insiders of the Debtor without
complying with Section 503 of the Bankruptcy Code.
About Medley LLC
Medley LLC, through its direct and indirect subsidiaries, including
Medley Capital LLC, is an alternative asset management firm
offering yield solutions to retail and institutional investors. It
provides investment management services to a permanent capital
vehicle, long-dated private funds, and separately managed accounts,
and serves as the general partner to the private funds. Medley is
headquartered in New York City and incorporated in Delaware.
As of Sept. 30, 2020, Medley had $3.4 billion of assets under
management in two business development companies, Medley Capital
Corporation (NYSE: MCC) and Sierra Income Corporation, and several
private investment vehicles. Over the past 18 years, Medley has
provided capital to over 400 companies across 35 industries in
North America.
Medley filed a Chapter 11 bankruptcy petition (Bankr. D. Del. Case
No. 21-10526) on March 7, 2021. The Debtor disclosed $5,422,369 in
assets and $140,752,116 in liabilities as of March 2, 2021.
The Debtor tapped Lowenstein Sandler LLP and Morris James LLP as
bankruptcy counsel, Eversheds Sutherland (US) LLP as special
counsel, B. Riley Securities Inc. as investment banker, and
Andersen Tax LLC as tax accountant. Corporation Service Company
serves as the Debtor's independent manager. Kurtzman Carson
Consultants, LLC is the claims agent.
The U.S. Trustee for Region 3 appointed an official committee of
unsecured creditors on April 22, 2021. The committee is
represented by Potter Anderson & Corroon, LLP and Kelley Drye &
Warren, LLP.
MESABI METALLICS: Adviser's Fee Fight Belongs to Bankruptcy Court
-----------------------------------------------------------------
Jeannie O'Sullivan of Law360 reports that a Minnesota mining
company implored the Third Circuit on Wednesday to find that a
Delaware bankruptcy court has jurisdiction over its fight against a
financial adviser's fee bid, arguing Wednesday that the matter
arose directly from its predecessor's Chapter 11 case.
During an oral argument, Mesabi Metallics Co. LLC attorney Joshua
A. Berman of White & Case LLP told the court that Mesabi's
challenge to B. Riley & Co. LLC's fee pursuit is a "core
proceeding" with respect to the jointly administered bankruptcy of
Essar Steel Minnesota LLC and its parent.
About Essar Steel Minnesota
Essar Steel Minnesota LLC, now known as Mesabi Metallics Company
LLC, and ESML Holdings Inc. filed for Chapter 11 bankruptcy
protection (Bankr. D. Del. Case Nos. 16-11627 and 16-11626) on July
8, 2016. Madhu Vuppuluri, president and CEO, signed the petitions.
ESML Holdings Inc. estimated assets at $1 billion to $10 billion
and debt at $500 million to $1 billion. Essar Steel Minnesota LLC
estimated assets and debt at $1 billion to $10 billion.
Judge Brendan Linehan Shannon is the case judge.
Craig H. Averich, Esq., at White & Case LLP and John L. Bird, Esq.,
and Jeffrey M. Schlerf, Esq., at Fox Rothschild LLP, serve as
counsel to the Debtors. Epic Bankruptcy Solutions, LLC, serves as
claims and noticing agent.
Andrew Vara, acting U.S. trustee for Region 3, on July 20, 2016,
appointed the official committee of unsecured creditors of ESML
Holdings, Inc., and its affiliates. The Committee retained Andrew
K. Glenn, at Kasowitz Benson Torres & Friedman LLP, to act as
counsel. Garvan F. McDaniel, at Hogan McDaniel, act as Delaware
counsel. David MacGreevey, at Zolfo Cooper, LLC, is the Committee's
financial advisor.
NB LOFT VUE: Court OKs DIP Loans from Nelson Partners
-----------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas,
Houston, has authorized NB Loft Vue, DST and NB Vue Mac, DST to
obtain postpetition financing on a final basis and provide related
relief.
The Debtors are authorized to enter into a loan agreement with
Nelson Partners, LLC. Loft Vue will receive an unsecured loan in
the principal amount of up to $162,095, and Vue Mac will receive an
unsecured loan in the principal amount of up to $300,357.
The Debtors have demonstrated a need for immediate access to
postpetition financing in order to maintain the value of their
estates while they identify either a purchaser of their assets or a
replacement lender.
The DIP Lender will be entitled, subject to entry of a Final Order,
to an administrative expense claim for all amounts actually
advanced, plus accrued interest, pursuant to section 503(b)(1)(A)
of the Bankruptcy Code. The Lender Administrative Expense Claim
will be subordinated to: (i) the allowed secured claims and allowed
adequate protection liens of Fannie Mae; and (ii) the liens and
allowed secured claims of Harris County and Tarrant County.
A copy of the order is available at https://bit.ly/3i3B0qy from
PacerMonitor.com.
About NP Loft Vue DST
NP Loft Vue DST sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 21-32292) on July 6,
2021. In the petition signed by Patrick Nelson, authorized
representative, the Debtor disclosed up to $50 million in both
assets and liabilities.
Judge Marvin Isgur oversees the case.
Thomas Berghman, Esq., at Munsch Hardt Kopf & Harr, P.C. is the
Debtor's counsel.
NEWSTREAM HOTEL: Seeks to Hire Spencer Fane as Legal Counsel
------------------------------------------------------------
Newstream Hotel Partners – ABQ, LP and Newstream Hotels &
Hospitality, LLC seek approval from the U.S. Bankruptcy Court for
the Eastern District of Texas to employ Spencer Fane, LLP to serve
as legal counsel in their Chapter 11 cases.
The hourly rates of the firm's attorneys and staff are as follows:
Jason P. Kathman $450 per hour
Partners $425 - $750 per hour
Of Counsel $200 - $650 per hour
Associates $280 - $430 per hour
Legal Assistants/Paralegals $75 - $320 per hour
Spencer Fane received a retainer in the amount of $75,000 from
Newstream Hotel Partners.
In addition, the firm will seek reimbursement for expenses
incurred.
Jason Kathman, Esq., a partner at Spencer Fane, 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:
Jason P. Kathman, Esq.
Megan F. Clontz, Esq.
Misty A. Segura, Esq.
Spencer Fane LLP
5700 Granite Parkway, Suite 650
Plano, TX 75024
Telephone: (972) 324-0300
Facsimile: (972) 324-0301
Email: jkathman@spencerfane.com
mclontz@spencerfane.com
msegura@spencerfane.com
About Newstream Hotel
Newstream Hotel Partners - ABQ, LP owns a full-service hotel, the
SureStay Plus Hotel by Best Western Albuquerque I40 Eubanks,
located at 10330 Hotel Avenue NE, Albuquerque, N.M.
Newstream Hotel Partners - ABQ and affiliate Newstream Hotels &
Hospitality, LLC filed voluntary petitions for Chapter 11
protection (Bankr. E.D. Texas Lead Case No. 21-41212) on Aug. 30,
2021. In their petitions, Newstream Hotel Partners listed up to
$10 million in both assets and liabilities while Newstream Hotels &
Hospitality listed up to $50,000 in assets and up to $10 million in
liabilities. Judge Brenda T. Rhoades oversees the cases. Spencer
Fane, LLP is the Debtors' legal counsel.
NEXTGEN TRANSPORTATION: Lindauer Represents DSM Advantage, CJM
--------------------------------------------------------------
In the Chapter 11 cases of Nextgen Transportation, LLC, the law
firm of Joyce W. Lindauer Attorney, PLLC submitted a verified
statement under Rule 2019 of the Federal Rules of Bankruptcy
Procedure, to disclose that it is representing CJM Financial, Inc.
and DSM Advantage, LLC.
The Creditor Group's claim against Debtor arose on a number of
dates ranging from November 7, 2019, to January 6, 2021.
As of Sept. 29, 2021, each Creditor Group and their disclosable
economic interests are:
CJM Financial, Inc.
1014 SE Lorenz Drive
Ankeny, IA 50021
Tel.: (515) 964-8880
* Nature of Claim: Money Loaned
Services Performed
* Est. Claim: $79,400.97
DSM Advantage, LLC
1018 NW Reinhart Drive
Ankeny, IA 50023
Tel.: (515) 639-2203
* Nature of Claim: Rental Equipment and Agreements
* Est. Claim: $67,459.06
The following are the facts and circumstances in connection with
the Firm's employment by the Creditor Group:
On or around August 20, 2021, the Firm was approached by Trent
Murphy of CJM Financial Inc. to represent it and DSM Advantage, LLC
in this chapter 11 proceeding. The representatives of Creditor
Group are close business associates and friends, and CJM Financial,
Inc. has a minority ownership interest in DSM Advantage, LLC. The
Firm has received a modest retainer from each member of the
Creditor Group for services to be rendered in this case.
After conducting a conflict search, the Firm offered and a formal
contract of representation was signed on August 27, 2021, by DSM
Advantage, LLC and on August 28, 2021, by CJM Financial Inc.
Counsel for CJM Financial, Inc. and DSM Advantage, LLC can be
reached at:
Joyce W. Lindauer, Esq.
Kerry S. Alleyne, Esq.
Guy H. Holman, Esq.
Joyce W. Lindauer Attorney, PLLC
1412 Main Street, Suite 500
Dallas, TX 75202
Telephone: (972) 503-4033
Facsimile: (972) 503-4034
A copy of the Rule 2019 filing, downloaded from PacerMonitor.com,
is available at https://bit.ly/3imcIbv
About Nextgen Transportation
Nextgen Transportation, LLC filed a voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Case No.
21-31314) on July 29, 2021. Broderick Battee, president, signed the
petition. Judge Harlin Dewayne Hale oversees the case. Marilyn D.
Garner, Esq., serves as the Debtor's legal counsel.
NOVABAY PHARMACEUTICALS: Signs Deal to Acquire DERMAdoctor for $15M
-------------------------------------------------------------------
NovaBay Pharmaceuticals, Inc. has entered into a definitive
agreement to acquire DERMAdoctor, LLC, a privately-held company
that commercializes dermatologist-developed skincare products,
including all of its inventory, products and intellectual property,
for a purchase price of $15.0 million, comprised of $12.0 million
in cash at closing and up to an additional $3 million in earnout
payments contingent upon the DERMAdoctor business achieving
predetermined financial targets for the 2022 and the 2023 fiscal
years.
DERMAdoctor produces and sells more than 30 products under lines
that include Ain't Misbehavin', Calm Cool + Corrected, Kakadu C, KP
Duty, and Wrinkle Revenge. Its products are designed to address
acne, aging skin, dark spots, dry skin, eczema, fine lines and
wrinkles, enlarged pores, hyperhidrosis, keratosis pilaris, oily
skin, rosacea and sensitive skin. DERMAdoctor sells its products
through major retailers such as Macy's, QVC, Costco, digital beauty
retailers such as SkinStore and Amazon, as well as its own website.
DERMAdoctor also has a large and growing network of international
distributors and retailers.
"Having evaluated various strategic opportunities to expand
NovaBay's commercial presence in the beauty industry with
complementary product offerings, DERMAdoctor stood out as the ideal
fit commercially, while also supporting the goals of reaching
profitability and enhancing stockholder value," said Justin Hall,
NovaBay CEO. "This acquisition will significantly increase
NovaBay's presence in the U.S. beauty market with the addition of
over 30 products currently sold by DERMAdoctor, which were
developed under the leadership of Dr. Audrey Kunin, a well-known
leader in the skincare product industry. The DERMAdoctor skincare
products have been medically and clinically formulated to be highly
effective yet gentle on skin, characteristics of our own CelleRx
Clinical Reset. We plan to employ our commercial organization's
expertise and industry relationships in combination with those of
DERMAdoctor in order to broaden the distribution and future growth
of our combined products to an expanded and more diverse customer
base."
"While we expect DERMAdoctor existing product sales to double our
topline revenue, the combined company platform significantly
expands our opportunities for future growth. We will be investing
in new products and new brands, with Dr. Audrey Kunin providing
both creative and strategic direction. Along with expected revenue
growth, we also expect to achieve operating and expense synergies
as a result of this transaction. With higher sales and expense
synergies from combining DERMAdoctor with our operations, we
finally have a clear path to profitability," he added.
DERMAdoctor's co-founders, Audrey Kunin and Jeff Kunin, will
continue in the executive leadership of DERMAdoctor after the
transaction. Dr. Audrey Kunin will serve as NovaBay's chief
product officer for all new product development, Dr. Jeff Kunin
will remain as DERMAdoctor's president and the entire 13-member
DERMAdoctor team will continue with DERMAdoctor after the
transaction. In addition, Dr. Audrey Kunin is expected to join the
NovaBay board of directors after the closing of the transaction.
NovaBay plans for the DERMAdoctor business to continue its
operations from its current headquarters in Riverside, Missouri.
"This is truly an exciting opportunity to advance and enhance the
DERMAdoctor business by introducing our clinically formulated
skincare products to a larger number of prospective customers
utilizing the proven sales, marketing and distribution capabilities
of NovaBay," said Dr. Audrey Kunin. "We designed DERMAdoctor
products with synergistic blends of science and technology to be
elegant, hypoallergenic, multitasking, problem-solving and highly
effective. We created DERMAdoctor to address the all-too-common
skincare concerns that were overlooked by the beauty industry,
providing hassle-free, highly effective, prestige treatments that
are non-irritating to skin. With the infrastructure and support of
NovaBay, we will be able to create, innovate, and sell like never
before. We are looking forward to joining forces with the NovaBay
team to drive our brands, new and old, to even greater success."
The parties are targeting a closing of the transaction in the
fourth quarter 2021, subject to customary closing conditions.
About Novabay
Headquartered in Emeryville, California, NovaBay Pharmaceuticals,
Inc. -- http://www.novabay.com-- is a biopharmaceutical company
focusing on commercializing and developing its non-antibiotic
anti-infective products to address the unmet therapeutic needs of
the global, topical anti-infective market with its two distinct
product categories: the NEUTROX family of products and the
AGANOCIDE compounds. The Neutrox family of products includes
AVENOVA for the eye care market, CELLERX for the aesthetic
dermatology market, and NEUTROPHASE for wound care market.
Novabay reported a net loss attributable to common stockholders of
$11.04 million for the year ended Dec. 31, 2020, compared to a net
loss attributable to common stockholders of $10.48 million for the
year ended Dec. 31, 2019. As of June 30, 2021, the Company had
$13.60 million in total assets, $2.39 million in total liabilities,
and $11.21 million in total stockholders' equity.
PACIFIC ENVIRONMENTAL: Wins Cash Collateral Access on Final Basis
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
Los Angeles Division, has authorized Pacific Environmental
Technologies, Inc. to use cash collateral on a final basis.
The Debtor is directed to provide the U.S. Small Business
Administration with a replacement lien to the same extent,
validity, and priority as theSBA's prepetition lien.
A copy of the order is available at https://bit.ly/3kK05sa from
PacerMonitor.com.
About Pacific Environmental Technologies, Inc.
Pacific Environmental Technologies, Inc. sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No.
2:21-bk-16058-DS) on July 28, 2021. In the petition signed by Jon
Wayne Gow, chief executive officer, the Debtor disclosed up to
$100,000 in assets and up to $10 million in liabilities.
Judge Deborah J. Saltzman oversees the case.
Michael Jay Berger, Esq., at Law Offices of Michael Jay Berger is
the Debtor's counsel.
PARISI & POWELL: Continued Operations to Fund Plan Payments
-----------------------------------------------------------
Parisi & Powell Corporation, d/b/a PRD Construction, filed with the
U.S. Bankruptcy Court for the Eastern District of California a
First Amended Plan of Reorganization for Small Business Under
Chapter 11.
Parisi & Powell Corp. founded by Matt Parisi and Jason Powell is a
premier general contractor, specializing in custom home builds and
remodels in the Lake Tahoe and Truckee area. On August 4, 2020, PRD
filed a voluntary petition for relief under chapter 11 of the
Bankruptcy Code. In March 2021, Powell determined PRD could not
generate sufficient revenue to financially support both him and
Parisi and as a result, voluntarily separated from PRD and
contributed his equity to Parisi.
During the Case, PRD resolved the largest claim against the estate
brought by homeowner client Monte Mattson ("Mattson") who had
initiated state-court litigation shortly before the Petition Date
(the "Mattson Litigation") with zero liability to the estate. PRD
also expects to resolve another homeowner claim in excess of
$700,000 by Peter Slaugh with zero liability to the estate. PRD has
also obtained 100% forgiveness of its PPP loan.
PRD's only secured debt is for financing on one of its corporate
trucks and there is no cash collateral. PRD owes approximately
$130,000 in priority tax claims for employment taxes for the fourth
quarter of 2019 and first quarter of 2020. There are no other
claims against PRD which are entitled to priority under Bankruptcy
Code section 507(a). PRD received a Paycheck Protection
Program-Small Business Administration Loan ("PPP Loan") through US
Bank for approximately $269,000 which has been forgiven in its
entirety.
PRD continues to face two potentially large unsecured claims by
homeowner-clients including Jerrold Zell and Helen Trop-Zell
("Zell") who initiated state court litigation against PRD shortly
before the bankruptcy the (the "Zell Litigation") and Kevin and
Sarosh Kumana ("Kumana"). The Zell Litigation remains subject to
the automatic stay. Zell has filed a proof of claim in the amount
of $260,692 plus unliquidated damages, attaching the complaint
filed in the Zell Litigation. The allegations in the complaint
center around missing back-up for invoices submitted by PRD or a
return of alleged overpayments. Zell provided PRD with a list of
requested back-ups, which PRD compiled. Kumana has filed proof ofa
claim of $157,500, which PRD disputes and PRD contends Kumana owes
it approximately $20,000, and pre-petition, commenced collection
efforts.
This First Amended Plan of Reorganization proposes that, on the
first Business Day of each month, PRD shall remit monthly payments
of $5,000 (in year 1), $6,000 (in year 2), and $7,000 (in year 3),
toward the satisfaction of Allowed Claims (each, a "Monthly
Installment"), and within 90 days after the end of such year, the
Annual Reconciliation Amount.
"Annual Reconciliation Amount" means (a) for year 1 & 2 (2022 &
2023), the amount, if any, by which Actual Disposable Income for
each such year exceeds Projected Disposable Income for such year
(b) for year 3 (2024), the difference between (1) the greater of
the aggregate amount of (x) Actual Disposable Income for years 1,
2, & 3 (2022, 2023 & 2024) and (y) Projected Disposable Income for
years 1, 2, & 3 (2022, 2023 & 2024) less (2) the aggregate amount
of payments made under the Plan during years 1, 2, & 3 (2022, 2023
& 2024).
Under the Plan, the secured claim against PRD (BBVA, truck loan)
will be reinstated. To the extent the Debtor is holding earmarked
funds for vendors and sub-contractors, the Debtor intends to pass
those funds on to the appropriate parties in connection with the
Plan.
If and to the extent PRD's performance exceeds Projections in any
year, PRD will distribute any such excess – via an Annual
Reconciliation Amount -- to holders of Allowed Administrative
Claims and Allowed Priority Claims until such claims have been paid
in full, and thereafter, any such excess will be shared equally
between holders of Allowed General Unsecured Claims, on the
one-hand, and Parisi, on the other hand. So, every stakeholder has
an opportunity to benefit if PRD exceeds the Projections.
Payments will be made from the Debtor's assets and operations.
A full-text copy of the First Amended Plan of Reorganization dated
September 27, 2021, is available at https://bit.ly/3kS0yso from
PacerMonitor.com at no charge.
About Parisi & Powell
Founded by Matt Parisi and Jason Powell, Parisi & Powell Corp.,
d/b/a PRD Construction, is a premier general contractor,
specializing in custom home builds and remodels in the Lake Tahoe
and Truckee area. Parisi & Powell filed a Chapter 11 petition
(Bankr. W.D. Tex. Case No. 20-10886) on Aug. 5, 2020. The Debtor
is represented by Mark H. Ralston, Esq. of FISHMAN JACKSON
RONQUILLO PLLC.
PAUL L. DUNBAR: Seeks to Tap the Lewis Law Firm as Counsel
----------------------------------------------------------
Paul L. Dunbar Group, Inc. seeks approval from the U.S. Bankruptcy
Court for the Middle District of North Carolina to employ Lewis Law
Firm, PA to serve as legal counsel in its Chapter 11 case.
Robert Lewis, Jr., Esq., the attorney primarily responsible for
this engagement, will be paid at his hourly rate of $350.
The law firm received $1,738 for filing fees and a retainer of
$5,762 from the Debtor.
Mr. Lewis 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:
Robert Lewis, Jr., Esq.
The Lewis Law Firm, PA
P.O. Box 1446
Raleigh, NC 27602
Telephone: (919) 987-2240
Facsimile: (919) 573-9121
Email: rlewis@thelewislawfirm.com
About Paul L. Dunbar Group
Paul L. Dunbar Group, Inc. filed a voluntary petition for Chapter
11 protection (Bankr. M.D.N.C. Case No. 21-50578) on Aug. 26, 2021,
listing as much as $500,000 in both assets and liabilities. Judge
Lena M. James oversees the case. The Lewis Law Firm, PA serves as
the Debtor's legal counsel.
PDC ENERGY: S&P Affirms 'BB' Issuer Credit Rating, Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings affirmed the 'BB' issuer credit and issue
ratings on Colorado-based oil and gas exploration and production
company PDC Energy Inc.
The outlook is stable, reflecting its expectation that PDC will
maintain conservative financial policies that result in strong
financial performance in most price scenarios.
Favorable oil and natural gas prices, measured capital spending,
and debt repayment should lead to strong credit measures. Like much
of the industry, PDC has adopted a strategy to focus on cash flow
generation for debt repayment and shareholder returns. S&P said,
"We expect PDC to repay up to $600 million of debt in 2021 with
operating cash flows,including $370 year-to-date, supporting
expected FFO/debt of well over 60%. Although our price assumptions
decline in 2022 and beyond, we expect FFO/debt to remain above 60%,
as cash flow hedges at very low prices roll off and PDC is able to
take advantage of much stronger prices for crude oil and natural
gas."
S&P said, "We expect shareholder returns to be a key aspect of
future financial policy. Like most of the industry, PDC has adopted
a financial strategy that balances balance sheet strength with
shareholder returns, bolstered by strong cash flow generation at
current commodity price expectations. As a result, PDC initiated a
modest quarterly dividend of $0.12 per share during the second
quarter, which it expects to grow over time. Above the base
dividend, we expect more variable shareholder returns that are
dependent on the level of expected cash flows. Importantly, we
expect total shareholder returns to remain within cash flows and
that the company will preserve cash for further debt repayment or
to help fund future bolt-on acquisitions."
The company's size and scale are at the stronger end of the range
compared to peers with similar business risk profiles. Production
in the second quarter of 2021 was 191,000 barrels of oil equivalent
per day (mboe/d) and Dec. 31, 2020, proved reserves were about 731
mmboe, which are larger than most peers in the weak business risk
category. However, a relatively high proportion, about 65%, of
PDC's reserves are classified as proved undeveloped, which will
require significant capital expenditures to develop. The company
has approximately 180,000 net acres in the core Wattenberg Field in
the Denver-Julesburg (DJ) Basin of Colorado and about 25,000 net
acres in the Delaware Basin in Texas. Ratings reflect the higher
regulatory hurdles and more complicated permitting processes in the
DJ Basin, somewhat offsetting the benefits of its scale. However,
PDC's DJ acreage is 100% in Weld County, and 80% of this is in
unincorporated rural areas, which has been more accommodating to
the oil and gas industry. PDC and its peers are working to ease the
permitting process in Colorado. One option is to secure a
Comprehensive Area Plan (CAP), which would provide a path to
multiple drilling permits over a longer time period, and if
successful help to provide a more certain drilling runway.
S&P said, "The stable outlook reflects our expectation that PDC
will maintain a conservative financial policy that supports
positive cash flow generation and strong credit measures, including
FFO/debt comfortably above 60% under most price environments.
Further, under our base-case assumptions, we expect PDC to generate
significant free cash flow over the next 24 months that it will use
to both repay debt and support expanded shareholder returns.
"We could lower the rating on PDC if crude oil and natural gas
prices weaken below our assumptions for a sustained period, leading
to a decline in profitability, or if management pursues a more
aggressive spending or shareholder return plan, resulting in weaker
credit measures, including FFO to debt below 45% on an ongoing
basis.
"We could raise our ratings on PDC if it can continue to
successfully develop and grow its positions in the DJ and Permian
basins, while maintaining FFO/debt above 60%. In particular, we
would want to see an extended drilling runway in the DJ basin in
Colorado, which faces heightened regulatory hurdles for permitting.
One such trigger could be the regulatory approval of CAP that
provided a multiyear drilling horizon."
PHOENIX ROOFING: Gets OK to Hire Salkin Law Firm as Legal Counsel
-----------------------------------------------------------------
Phoenix Roofing & Construction FL, Inc., received approval from the
U.S. Bankruptcy Court for the Middle District of Florida to hire
The Salkin Law Firm, P.A. to serve as legal counsel in its Chapter
11 case.
The firm's services include:
1. advising the Debtor of its powers and duties, the continued
operation of its business and the management of its property;
2. preparing legal papers;
3. appearing before the court and the Office of the U.S.
Trustee;
4. assisting the Debtor in negotiations to prepare a plan of
reorganization and taking the necessary legal steps to confirm the
plan;
5. representing the Debtor in adversary proceedings and
contested matters;
6. representing the Debtor in negotiations with potential
financing sources and preparing documents to obtain financing; and
7. providing other necessary legal services.
Salkin Law Firm received the sum of $10,000. Prior to the Debtor's
bankruptcy filing, the firm credited $1,590 in fees and $1,738 in
costs for pre-bankruptcy services. The firm retains $6,672 in
trust.
Zachary Malnik Esq., at Salkin Law Firm, disclosed in a court
filing that his firm is a "disinterested person" within the meaning
of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Zachary Malnik, Esq.
The Salkin Law Firm, P.A.
P.O. Box 15580
Plantation, FL 33318
Tel: 954-423-4469
Email: zachary@msbankrupt.com
About Phoenix Roofing & Construction
Naples, Fla.-based Phoenix Roofing & Construction FL, Inc. is a
local, family-owned and operated company that provides roofing
construction services.
Phoenix Roofing filed a petition for Chapter 11 protection under
(Bankr. M.D. Fla. Case No. 21-01132) on Aug. 28, 2021, listing up
to $500,000 in assets and $10 million in liabilities. Judge Caryl
E. Delano oversees the case. Zachary Malnik Esq., at The Salkin
Law Firm, P.A. is the Debtor's legal counsel.
PRECISION MANUFACTURED: Voluntary Chapter 11 Case Summary
---------------------------------------------------------
Debtor: Precision Manufactured Developments, Inc.
3419 Via Ste 609
Newport Beach, CA 92663
Business Description: Precision Manufactured Developments, Inc.
is a Single Asset Real Estate debtor (as
defined in 11 U.S.C. Section 101(51B)).
Chapter 11 Petition Date: September 29, 2021
Court: United States Bankruptcy Court
Central District of California
Case No.: 21-12354
Judge: Hon. Theodor Albert
Debtor's Counsel: Andy Warshaw, Esq.
DIMARCO WARSHAW, APLC
PO Box 704
San Clemente, CA 92674
Tel: 949-648-2450
Email: andy@dimarcowarshaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $100,000 to $500,000
The petition was signed by Glenn R. White as CEO.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/XNZQDDI/Precision_Manufactured_Developments__cacbke-21-12354__0001.0.pdf?mcid=tGE4TAMA
PROTON THERAPY: Plans to Sell Yet-to-Open Facility in Florida
-------------------------------------------------------------
Ryan Lynch of the Orlando Business Journal reports that a
Knoxville, Tenn.-based cancer treatment firm plans to sell its
yet-to-open proton therapy center property in Winter Garden's
Horizon West community.
Provision Healthcare LLC will sell the building and land it bought
for its previously planned Provision Proton Therapy Center on 5.39
acres at 15775 New Independence Parkway, according to documents in
its Chapter 11 bankruptcy filing in the U.S. Bankruptcy Court for
the Middle District of Tennessee.
The company bought the property in Winter Garden for the proton
therapy center from an entity tied to Boyd Development Corp. -- the
Winter Garden-based developer of the Hamlin mixed-use development
-- in 2018 for $2.19 million, according to Orange County property
records.
In court documents, it cited a desire to maximize the value of its
assets. The company will sell off most of its assets through
separate entities tied to it, including:
* PCPT Hamlin LLC: The building, equipment and other assets tied
to the roughly 38,000-square-foot Hamlin center in Winter Garden.
Construction on the building is substantially completed and
equipment installation was started, but then put on hold. Capital
investment into the property was slated to be $95 million-plus.
* The Proton Therapy Center LLC: An operating proton therapy
center in Knoxville, Tennessee and related assets.
* MTPC LLC: An operating proton therapy center in Franklin,
Tennessee, and related assets.
The assets can be pieced out individually, bought together or in
any combination. The qualified bid deadline is currently Oct. 5,
while an auction of the assets if needed will be on Oct. 7.
Interested parties in the assets should contact Los Angeles-based
Houlihan Lokey Capital Inc. in writing to Andrew Turnbull
(aturnbull@hl.com) and Daniel Martin (dmartin@hl.com). In April,
Houlihan Lokey Capital signed confidentiality agreements with at
least 20 firms interested in the assets, per the court documents.
A hearing on the sale of assets is scheduled for Oct. 12, which
would serve as the approval for any assets that are purchased.
There are some scenarios where a company may look to sell most of
its assets in a Chapter 11 bankruptcy proceeding, Justin M. Luna, a
bankruptcy partner with Orlando-based Latham, Luna, Eden & Beaudine
LLP who is not involved in this case, told Orlando Business
Journal.
"The typical situation is where you are selling assets to preserve
the going concern value of the business as part of the sale -- to
save jobs, operations, etc. -- or if it's to sell an asset to
reduce debt for the surviving company," Luna said. "In other
situations, it involves a clean organized process to sell the asset
and avoid a fire sale at foreclosure or avoid judgment creditors
trying to levy on it."
The process also can allow time to maximize the sales price, he
added.
About Proton Therapy Center
The Proton Therapy Center, LLC (PCPTK) is a Tennessee limited
liability company that was organized in 2010. PCPTK is located in
an 88,000 square-foot building on the campus of the Provision Case
CARES Cancer Center at Dowell Springs, in Knoxville, Tennessee, a
comprehensive healthcare campus focusing on cancer treatment,
patient care, research, and education. PCPTK is a freestanding
center with three active treatment rooms including one fixed beam
and two gantries.
MTPC LLC is a proton-therapy cancer-treatment center that serves a
multi-state area of the Southeastern United States and began
operations in 2018. MTPC is located in a 43,500 square-foot
building adjacent to the campus of the Williamson Medical Center,
in Franklin, Tennessee. MTPC is a freestanding center with three
active treatment rooms including one fixed beam and two gantries.
PCPT Hamlin is a Florida limited liability company that was
organized in 2018. PCPT Hamlin will include an approximately
36,700 square foot building in the 900-acre Hamlin planned
development in the "Town Center" of the 23,000 acre "Horizon West"
planning area of West Orange County.
MTPC, LLC and affiliates The Proton Therapy Center, LLC, and PCPT
Hamlin, LLC, sought Chapter 11 protection (Bankr. M.D. Tenn. Case
Nos. 20-05438 to 20-05440) on Dec. 15, 2020.
As of Aug. 31, 2020, MTPC's unaudited financial statements
reflected total assets of $105,600,000 and total liabilities of
$131,200,000, PCPTK's unaudited financial statements reflected
total assets of $93,400,000 and total liabilities of $130,200,000,
and PCPT Hamlin's unaudited financial statements reflected total
assets of $139,200,000 and total liabilities of $138,500,000.
The Hon. Randal S. Mashburn is the case judge.
The Debtors tapped WALLER LANSDEN DORTCH & DAVIS, LLP, and FOLEY &
LARDNER LLP as bankruptcy counsel; and TRINITY RIVER ADVISORS, LLC,
as restructuring advisor. STRETTO is the claims agent.
The Office of the U.S. Trustee for the Middle District of Tennessee
has appointed an Official Committee of Unsecured Creditors in the
Debtor's case.
Counsel for the Debtor:
David E. Lemke, Esq.
Tyler N. Layne, Esq.
Gabriela Smith, Esq.
WALLER LANSDEN DORTCH & DAVIS, LLP
511 Union Street, Suite 2700
Nashville, TN 37219
Telephone: (615) 244-6380
Facsimile: (615) 244-6804
Email: David.Lemke@wallerlaw.com
Tyler.Layne@wallerlaw.com
Gaby.Smith@wallerlaw.com
- and -
Marcus A. Helt, Esq.
FOLEY & LARDNER LLP
2021 McKinney Avenue, Suite 1600
Dallas, TX 75201
Telephone: (214)999-4526
Facsimile: (214) 999-4667
Email: mhelt@foley.com
- and -
Jack G. Haake, Esq.
FOLEY & LARDNER LLP
Washington Harbour
3000 K Street, Suite 600
Washington, D.C. 20007
Telephone: (202) 295-4085
Facsimile: (202) 672-5399
Email: jhaake@foley.com
PURDUE PHARMA: States Want to Control Payouts to Victims
--------------------------------------------------------
Valerie Bauman, writing for Bloomberg Law, reports that attorneys
general across the country worked to direct settlement money from
the Purdue Pharma bankruptcy into state coffers rather than to
victims of the opioid crisis, survivors of those who died from
overdoses and babies born dependent on opioids, according to a new
book by an insider in the court proceedings.
"When the doors were closed and cameras were off, the same people
who spoke with such compassion and understanding about overdoses
didn't necessarily want to hear from" victims, Ryan Hampton wrote
in his non-fiction book "Unsettled."
Hampton is a victims' advocate who was on the committee
representing individuals in the bankruptcy. The book, a copy of
which Bloomberg Law obtained in advance of its Oct. 5, 2021
publication, is his account of confidential bankruptcy
negotiations.
His assessments of the state AG's efforts to get control of as much
money as possible was confirmed by three other people involved in
the bankruptcy case. They spoke to Bloomberg Law on condition of
anonymity due to the confidential nature of the behind-the-scenes
negotiations.
Hampton said he worried that the states would put the settlement
money in their general funds, as they did with money from
litigation against Big Tobacco; let it sit, unspent, in the same
way that federal addiction dollars sent to states remain unspent
every year; or go toward state-selected addiction treatment
programs that he says are ineffective and already well funded.
"Whatever they were doing was disconnected from what the community
needed," Hampton wrote. "If the states' way of dealing with the
epidemic worked, we wouldn't have empirical proof of an increasing
treatment gap and more deaths."
Ultimately, state and local governments received control over the
majority of the bankruptcy proceeds, about $4 billion, while the
nearly 135,000 individuals harmed by addiction would share about
$750 million, or an average of roughly $5,555 per person before
lawyers' fees (though the actual amount each person receives will
vary based on the specifics of their claims). About $45 million of
that will go to infants born dependent on opioids.
"Victims of Purdue Pharma were put through the wringer to collect
documents, prescriptions, medical records, all the traces of the
worst moments of their lives for recoveries that don’t even cover
the cost of a funeral," said attorney Charlotte Bismuth. A former
assistant district attorney who prosecuted the doctor who was New
York City’s most prolific opioid prescriber, Bismuth also said
that she had great respect for the investigations by state
attorneys general.
Money to Addicts Nixed
Hampton writes that some states, led by the office of New York
Attorney General Letitia James, initially suggested that individual
claimants should receive no money at all.
Some of the attorneys general and others involved in the case had
concerns that people would use settlement payments to buy drugs,
according to Hampton and two of the other insiders.
James, in a statement, said "no deal is perfect" and there would
never have been enough money to truly pay for the damage done.
"But this resolution will deliver $4.5 billion into communities
ravaged by opioids on an accelerated timetable and it gets one of
the nation's most harmful drug dealers out of the opioid business
once and for all," James said.
That wasn't satisfactory for Ed Bisch, whose 18-year-old son, Eddie
died of an opioid overdose after taking OxyContin. He was shocked
when he learned the dollar amount allotted for him and other
victims.
"I thought, without the victims there would be no case; and this is
insulting and sad," he told Bloomberg Law.
The states contend they were doing what they believe is best to
address a dire crisis, and that they already had the processes to
distribute funds to existing treatment and prevention programs.
"There is not enough money in the world to undo the suffering and
horror brought on by and continuing from the opioid epidemic
because of the conduct of Purdue and others," said John Guard,
chief deputy attorney general in Florida, in a statement.
"The states involved in opioid litigation were faced with an
impossible problem: what to do with the limited amounts of money
that are recoverable from the entities responsible," he added. "The
states and the federal government agreed that a substantial
majority of the monies recovered would be utilized to help victims
through abatement programs and services to save as many lives as
possible."
Prescription opioid misuse in the U.S. has a total economic burden
of $78.5 billion a year, according to the Centers for Disease
Control. That figure includes the cost of healthcare, lost
productivity, addiction treatment, and the criminal justice
system.
"Purdue and the Sacklers did not come close to paying what they owe
to the people they hurt," Massachusetts Attorney General Maura
Healey said in a statement. "Until my team investigated and sued
them, the Sacklers were going to keep their company, their secrets,
their reputation, and their fortune, just like they had always
gotten away with it before."
"We fought to expose the truth and get help for victims, but we
have no illusions: much more help is needed, and all of us must
work to deliver it," added Healey, who at one point ask the court
to grant more time for victims to be notified of their eligibility
in the bankruptcy.
The problem with the states’ approach, according to Hampton, was
that they have long failed to fund long-term assistance in housing,
employment, harm-reduction measures including naloxone, and
community-based care for people struggling with substance abuse.
"Those unmet needs, big surprise, were always overlooked and
undervalued as a solution. We wanted to change that by interrupting
the cycle of overdose, ER, to back on the street," Hampton wrote.
Money Toward Abatement
U.S. Bankruptcy Judge Robert Drain, who oversaw the case in the
Southern District of New York, indicated early on that he preferred
the Purdue money go toward broader efforts to address the crisis,
including addiction treatment and prevention, rather than the
individual victims.
The individual claimants included many people, such as Hampton, who
were in long-term recovery. Many others were family members who had
lost a loved one to overdose, in some cases raising orphaned
children born dependent on opioids.
Drain and, many parties involved in the bankruptcy, questioned
whether some individuals would be able to prove they were
prescribed Purdue’s OxyContin, which had a relatively small
market share among opioids.
Early in the bankruptcy proceedings, advocates proposed creating a
$200 million emergency relief fund through a newly created
nonprofit, Hampton wrote. Both groups of attorneys general opposed
the idea, instead calling for the money to be directed to them for
use in state-selected treatment and prevention programs, according
to the book.
The Justice Department also opposed the idea, saying it would take
the majority of the monies from the case unless the vast majority
of it went to the states, Hampton wrote. That prompted Drain to
kill the idea.
As for the money going to states, Hampton has dire predictions
based on the existing data.
Despite the states' best efforts, the rate of opioid overdose
deaths continues to rise steadily every year, going from 8,050, or
2.9 per 100,000 deaths in 1999 to 49,860, or 15.5 per 100,000 in
2019, the most recent year for which CDC data is available.
"They had the tools to fix the crisis: law firms, public health
teams, and funding. But they didn’t use them, or didn’t use
them correctly," Hampton wrote.
About Purdue Pharma
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. The Debtors' consolidated
balance sheet as of Aug. 31, 2019, showed $1.972 billion in assets
and $562 million in liabilities.
U.S. Bankruptcy Judge Robert Drain oversees the cases.
The Debtors tapped Davis Polk & Wardwell, LLP and Dechert, LLP as
legal counsel; PJT Partners as investment banker; AlixPartners as
financial advisor; and Grant Thornton, LLP as tax structuring
consultant. Prime Clerk LLC is the claims agent.
Akin Gump Strauss Hauer & Feld LLP and Bayard, P.A., represent the
official committee of unsecured creditors appointed in the Debtors'
bankruptcy cases.
David M. Klauder, Esq., is the fee examiner appointed in the
Debtors' cases. The fee examiner is represented by Bielli &
Klauder, LLC.
PUREWEST ENERGY: S&P Affirms 'B-' ICR, Outlook Stable
-----------------------------------------------------
S&P Global Ratings affirmed its 'B-' issuer credit rating on
U.S.-based oil and gas exploration and production (E&P) company
PureWest Energy LLC (formerly UP Energy LLC).
S&P said, "Our stable outlook reflects the company's lack of funded
debt and our expectation that it will generate substantial free
operating cash flow (FOCF) over the next 12-18 months.
"The company has improved its production rate and reserves through
its recent acquisitions; however, we expect near-term volumes will
likely continue to decline. PureWest produced about 570 million
cubic feet equivalent per day (MMcfe/d) in the second quarter of
2021 (incorporating its latest acquisition) and increased its
proved reserves to approximately 2.3 trillion cubic feet equivalent
(Tcfe; 100% developed) as of the end of June. However, its scale is
still small relative to its peers with single-basin concentration.
PureWest's capital spending also remains muted, thus production
could decline by 7%-10% next year unless drilling resumes. We
believe the company will continue to target free cash flow
generation with little to no new development in 2021. However, we
believe activity could increase in 2022 if natural gas prices are
sustained at high levels. PureWest closed on its purchase of
bolt-on assets from Pinedale Energy Partners Operating (PEPO) for
over $220 million in the second quarter of 2021, which followed its
smaller acquisition of the Grizzly non-operated interests for about
$70 million late last year. The company funded both transactions
entirely with cash. We expect management will continue to explore
opportunities to further consolidate natural gas assets in the
Rockies region."
PureWest has no term debt and continues to generate strong cash
flows. The company has not tapped the debt market since its
emergence from bankruptcy in September 2020. S&P said, "Therefore,
our financial ratio analysis largely reflects our treatment of its
long-term asset retirement obligations as debt according to our
criteria framework. Nevertheless, in our view, its majority
ownership by private capital investment firms heightens the
potential for pursuing strategies that increase its financial
leverage relative to our forecast to enhance member returns. So far
this year, PureWest has only repurchased about $4 million worth of
its units; however, we believe the company may use some of its cash
flow for meaningful unitholder returns heading into 2022. We
project the company's average funds from operations (FFO) to debt
will be well above 100% over the next two years along with debt to
EBITDA well below 1x. PureWest has already generated more than $200
million of FOCF year to date due to its minimal capital
expenditure. We forecast it will generate several hundred million
dollars of FOCF next year unless management chooses to restart
drilling."
The company's operational performance has been more consistent.
With its year-to-date production tracking management's plan and
operating costs currently below budget, PureWest has been able to
deliver on its targeted cash flow strategy. The company has also
hedged nearly 50% of its anticipated 2022 gas production and about
28% for 2023 and has a decent liquidity position with more than $50
million of cash on hand and near-full availability under its $60
million revolver due September 2023.
S&P said, "Our stable outlook on PureWest reflects its lack of
funded debt and our expectation that it will generate substantial
FOCF over the next 12-18 months.
"We could lower our rating on PureWest if its liquidity
deteriorates, we come to view its capital structure as
unsustainable, or if we believe there is a significant likelihood
of a conventional default. This could occur if natural gas prices
meaningfully decline following debt funding of organic or
acquisition-driven growth.
"We could raise our rating on PureWest if it increases its reserves
and production to levels that are more comparable with those of its
higher-rated peers, exhibits prudent financial and operational
management, and maintains adequate liquidity. Such a scenario could
occur if commodity prices increase substantially and the company
resumes drilling activity and avoids material operational issues or
overleveraging acquisitions."
QUANTUM VALVE: Committee Taps Okin Adams as Legal Counsel
---------------------------------------------------------
The official committee of unsecured creditors of Quantum Valve and
Oilfield Solutions, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of Texas to hire Okin Adams, LLP as
its legal counsel.
The firm's services include:
1. assisting the committee in its discussions with the Debtor
and other parties-in-interest regarding the overall administration
of the Debtor's Chapter 11 case and related adversary proceedings
2. representing the committee at hearings and communicating
with the committee regarding the matters heard and the issues
raised as well as the decisions and considerations of the court;
3. assisting the committee in its examination and analysis of
the conduct of the Debtor's affairs;
4. advising the committee in its discussions with the Debtor
and other parties in interest regarding the Debtor's sale process,
if any;
5. reviewing and analyzing legal documents filed by interested
parties, and consenting or objecting to pleadings or orders, as
appropriate;
6. assisting the committee in preparing legal documents in
support of positions taken by the committee;
7. conferring with the professionals retained by the Debtor,
the committee and other parties in interest;
8. coordinating the receipt and dissemination of information
prepared by and received from the Debtor's and committee's
professionals;
9. participating in the examinations of the Debtor and other
witnesses in order to analyze and determine, among other things,
the Debtor's assets and financial condition, whether the Debtor has
made any avoidable transfers of property, or whether causes of
action exist on behalf of the Debtor's estates;
10. negotiating and, if necessary or advisable, formulating a
plan of reorganization for the Debtor; and
11. performing other necessary legal services.
The primary attorneys at Okin Adams who will represent the
committee and the hourly rates of these attorneys are as follows:
Matthew S. Okin, Partner $675 per hour
David L. Curry, Jr., Partner $525 per hour
Edward A. Clarkson, Of Counsel $450 per hour
In addition, the firm will charge $140 per hour for the services of
its legal assistants.
Matthew Okin, Esq., a partner at Okin Adams, disclosed in a court
filing that his firm is a "disinterested person" within the meaning
of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Matthew S. Okin, Esq.
David L. Curry, Jr., Esq.
Edward A. Clarkson, III, Esq.
Okin Adams, LLP
1113 Vine St., Suite 240
Houston, TX 77002
Tel: (713) 228-4100
Fax: (888) 865-2118
Email: mokin@okinadams.com
dcurry@okinadams.com
eclarkson@okinadams.com
About Quantum Valve and Oilfield Solutions
Quantum Valve and Oilfield Solutions, LLC, a Fort Worth,
Texas-based company that provides support activities for the mining
industry, filed a petition for Chapter 11 protection (Bankr. E.D.
Texas Case No. 21-40994) on July 12, 2021. In the petition signed
by John Luke Reed, chief executive officer, the Debtor disclosed up
to $50 million in both assets and liabilities.
Judge Brenda T. Rhoades oversees the case.
Christopher J. Moser, Esq. at Quilling, Selander, Lownds, Winslett
and Moser, PC is the Debtor's legal counsel.
The U.S. Trustee for Region 6 appointed an official committee of
unsecured creditors in the Debtor's case on Aug. 10, 2021. The
committee is represented by Okin Adams, LLP.
Crestmark, as lender, is represented by:
Thomas E. Coughlin, Esq.
Jaffe, Raitt, Heuer and Weiss
27777 Franklin Road, Suite 2500
Southfield, MI 48034
Tel: (248) 351-3000
RESTORATION HARDWARE: S&P Assigns 'BB' ICR, Outlook Stable
----------------------------------------------------------
S&P Global Ratings assigned its 'BB' issuer credit rating to Corte
Madera, Calif.-based luxury home furnishings retailer Restoration
Hardware Inc. (d/b/a RH) with a stable outlook. At the same time,
S&P assigned its 'BB' issue-level and '3' recovery ratings to the
proposed term loan.
The stable outlook reflects S&P's expectation for sustained good
profitability amid the global expansion phase of its growth
strategy.
RH's single banner concentration and highly discretionary offerings
offset its strong performance and growing brand recognition. S&P's
rating reflects management's strong execution of its strategies
over the past several years, which have led to robust revenue and
EBITDA growth. Revenue grew about 35% between fiscal 2015 (ended
Jan. 30, 2016) and fiscal 2020, while its focus on improving
profitability yielded nearly 1,200 basis points (bps) of S&P Global
Ratings'-adjusted EBITDA margin expansion. This growth resulted
from various management initiatives, including a move away from a
promotional retail model in favor of membership pricing,
rationalization of distribution centers, and a shift toward
offering hospitality services. S&P believes these initiatives
elevated the brand and drove new customers to the company's home
furnishings segment.
S&P said, "It expanded its trailing-12-month (TTM) profit margins
an additional 250 bps in the first half of fiscal 2021 amid
continued strong demand and we believe sales and profitability will
stabilize around current levels through 2022. The company delayed
the launch of its anticipated RH Contemporary collection to Spring
2022. We believe the new collection will help bolster sales next
year, offsetting some of the anticipated pullback in demand.
"Despite the company's good financial performance recently, RH's
reliance on a single banner and our view that the home furnishings
segment is highly competitive with low substitution costs limit our
rating. We also believe the luxury furnishings market is sensitive
to the reputation of companies' products and services. A potential
merchandising misstep could have significant consequences for the
company's reputation and quickly reverse several years of progress.
We also note the company serves a very small demographic of
high-income customers, relative to broad-based peers.
"RH's proposed transaction moderately increases leverage, though we
believe it will deleverage through organic growth over the next few
years. The company is increasing its funded debt by about $800
million relative to the end of fiscal 2020, bringing S&P Global
Ratings'-adjusted leverage up to the mid-2x area from 1.6x as of
July 31, 2021. We expect it will use the proceeds from the term
loan for general corporate purposes including to retire its
existing convertible notes."
S&P Global Ratings'-adjusted debt includes adjustments for finance
and operating lease liabilities of approximately $1 billion.
Through EBITDA growth, the company has steadily reduced its S&P
Global Ratings'-adjusted leverage to 1.6x as of the second quarter
of fiscal 2021, from the 5x area in fiscal 2016. S&P anticipates it
will maintain leverage in the low- to mid-2x area through fiscal
2022 as it continues to grow its customer base and geographic
reach, while lapping unusually high demand from the first half of
fiscal 2021. As such, S&P views its financial risk profile as
intermediate.
The company creates an experiential retail atmosphere in its
galleries that draws in clientele, while its membership model
promotes good value perception. RH differentiates itself by using
its galleries to promote its design aesthetic and invoke potential
clients' curiosity instead of exhibiting all the products it sells
in a traditional store environment. In fact, an RH gallery may
feature only about 5% of the company's total merchandise
assortment. At its galleries, clients meet with professional
designers who can introduce the company's wide merchandise
assortment based on individual needs and style. Designers work on
projects such as custom designing a single room or an entire home
as a complementary service for members (membership fee is nominal).
S&P said, "In our view, this vertically integrated model improves
value perception and drives incremental sales as customers are more
likely to design their spaces exclusively with RH merchandise when
working with an RH designer. While other home furnishing retailers
also offer complementary design services, we believe RH leads its
peers in executing this service offering."
The company adopted its membership model in 2017 to replace its
traditional promotion model. S&P said, "We believe eliminating
promotional discounts has helped solidify the brands' position in
the luxury furnishings segment by promoting more intentional
designs with appropriate rather than discounted merchandise. The
membership model provides customers with a flat discount on all
merchandise. In our view, this pricing strategy promotes value
perception and drives high member adoption, as about 97% of core RH
sales in fiscal 2020 were generated by RH members."
The company's hospitality services complement its core business by
showcasing its sophisticated style and drawing potential customers
into its galleries. Its hospitality services currently include
restaurants and wine bars situated within 12 of its design
galleries. S&P said, "We expect more RH restaurants to open as the
company expands into Europe and converts legacy galleries to its
new format design galleries. Over the coming years, the company
plans to expand its hospitality services to include guesthouses,
spas, as well as residences. Successful execution of these
offerings could further elevate the RH brand. However, we do not
anticipate significant revenue or EBITDA contribution from its
hospitality services and incremental benefits to its core home
furnishings business remain uncertain, in our view."
The company is concentrated in a single brand in a niche market
with limited scale and little global exposure. Its 66 RH galleries
are mostly located across the U.S., with some concentration in
California. S&P said, "We do not anticipate significant growth in
its U.S. store base as the company focuses on transforming existing
galleries locally and growing stores internationally. RH also
conducts business through its direct channels, which include its
websites and catalogues, and can serve customers in areas where it
does not operate galleries. In our view, the size of the luxury
home furnishings market may limit the potential for further U.S.
expansion, although the company's entry into the global market
could create a new path for future growth."
Meanwhile, RH's reputation is a key driver of performance. While
the company has a separate banner (Waterworks) that sells kitchen
and bath fixtures and hardware through 14 showrooms, this
represents less than 5% of total revenue and profit. S&P said, "We
believe negative publicity at RH could have a significant adverse
impact on performance. However, given its merchandising focus on
long-term architectural trends and timeless designs, we believe the
company's exposure to seasonality and fashion risk is somewhat
limited. We assess its business risk profile as fair."
While its global expansion plan has the potential to drive growth,
it also introduces significant execution risks. RH is currently
developing new galleries in the U.K. and in Paris and expects to
open additional galleries across Europe over the next several
years. In addition, the company is converting legacy galleries to
design galleries at a quicker pace. S&P said, "We see significant
execution risks associated with developing new galleries and
pursuing business in Europe. We note this could include sourcing
products locally in international markets, which can pose material
challenges amid current global supply chain snags across the
furniture industry. An unsuccessful rollout of its galleries
internationally could drag down operating performance and cause
management's focus to sway from its core domestic operations.
Because of the added execution risks associated with its expansion
efforts, we apply a one-notch negative comparable ratings analysis
modifier."
S&P said, "The stable outlook reflects our expectation for good
operating performance over the next 12 to 24 months with revenue
growth of around 30% in fiscal 2021 as a result of heightened
pandemic-induced demand. We expect S&P Global Ratings'-adjusted
EBITDA margin will be around 30% as the company continues to refine
its cost structure, benefits from economies of scale, and adjusts
prices to optimize profitability. We believe the company can
maintain leverage in the low- to mid-2x area over the next two
years."
S&P could lower its rating on RH if:
-- S&P anticipates deteriorating revenue, profitability, and cash
flow generation because of a less successful international
expansion than anticipated, more intense competition in the luxury
home furnishing and design market, or merchandising and strategy
missteps that weaken the brand's reputation; or
-- The company pursues a more aggressive financial policy and S&P
expects S&P Global Ratings'-adjusted leverage to surpass 3x.
S&P could raise its rating on RH if:
-- Its expansion into Europe proves successful while it continues
to hold recent revenue gains in its U.S. business, demonstrated by
strong sales growth at least in line with S&P's forecast;
-- S&P expects a prudent approach to growth that will drive more
stable profitability, while S&P Global Ratings'-adjusted EBITDA
margin remains at least in the 30% area; and
-- The company commits to a clear long-term financial policy with
a publicly stated leverage target, such that S&P does not
anticipate S&P Global Ratings'-adjusted debt to EBITDA will be
higher than 3x.
REVLON INC: Citigroup Asks Appeals Court for $500 Million Error Fix
-------------------------------------------------------------------
Chris Dolmetsch, writing for Bloomberg News, reports that Citigroup
Inc. tried to persuade an appeals court that disgruntled Revlon
Inc. creditors should give back more than half a billion dollars
the bank accidentally sent them last 2020.
A trio of federal judges in Manhattan heard arguments from both
sides Wednesday on whether it should reverse a lower court's
surprise decision that the lenders can keep the money -- a decision
Citigroup's main banking unit calls a misapplication of the law
that sent "shockwaves through the markets."
Neal Katyal, a lawyer for Citibank, told the panel that the lenders
should have been skeptical of the payments.
About Revlon Inc.
Headquartered in New York, New York, Revlon, Inc. conducts its
business exclusively through its direct wholly-owned operating
subsidiary, Revlon Consumer Products Corporation and its
subsidiaries. Revlon is an indirect majority-owned subsidiary of
MacAndrews & Forbes Incorporated, a corporation beneficially owned
by Ronald O. Perelman. Mr. Perelman is Chairman of Revlon's and
Products Corporation's Board of Directors.
* * *
In July 2020, S&P Global Ratings lowered issuer credit rating on
Revlon Inc. to 'CC' from 'CCC-'. Concurrently, S&P lowered its
issue-level rating on the company's $880 million Brandco first lien
term loan to 'CCC-' from 'CCC' and maintain '2' recovery rating. In
addition, S&P lowered its issue-level rating on the remaining
tranches of secured debt to 'C' from 'CC' and maintained '5'
recovery rating. Lastly, S&P affirmed its 'C' issue-level rating on
the company's two tranches of unsecured notes, the '6' recovery
ratings remain unchanged.
The negative outlook reflects S&P's expectation that it will lower
its issuer credit rating on Revlon to 'SD' (selective default) and
its issue-level rating on its February 2021 notes to 'D' after the
transaction closes.
The downgrade follows Revlon's announcement that it commenced an
offer to exchange any and all of its outstanding amounts of 5.75%
notes due February 2021 for a combination of new 5.75% notes due
February 2024 and an early tender/consent fee. The existing
noteholders will receive $750 principal amount of new notes for
every $1,000 of existing notes tender and $50 of cash as an early
tender/consent fee. Holders who tender their existing notes after
the early tender deadline (Aug. 7, 2020) will receive only $750
principal amount of new notes for every $1,000 principal amount of
existing notes tendered.
RIVER BEND MARINA: Court Approves Disclosure Statement
------------------------------------------------------
According to a docket entry, the U.S. Bankruptcy Court for the
Northern District of Alabama approved the Disclosure Statement of
River Bend Marina, LLC at a hearing held on Sept. 23, 2021. The
hearing on confirmation of the Plan is slated for Nov. 18, 2021 at
10:00 a.m. The last day to file objections to confirmation of the
Plan is Nov. 10.
About River Bend Marina
River Bend Marina, LLC, is a limited liability company operating a
marina and a private waste treatment plant in Marshall County,
Alabama. The Debtor filed a Chapter 11 bankruptcy petition (Bankr.
N.D. Ala. Case No. 20-40075) on Jan. 15, 2020, disclosing under $1
million in both assets and liabilities. Judge James J. Robinson
oversees the case. The Debtor is represented by Robert D.
McWhorter Jr., Esq., at Inzer Haney McWhorter Haney & Skelton, LLC.
ROSCOE GUITARS: Seeks Approval to Hire Bankruptcy Counsel
---------------------------------------------------------
Roscoe Guitars, Inc. seeks approval from the U.S. Bankruptcy Court
for the Middle District of North Carolina to employ Ivey,
McClellan, Siegmund, Brumbaugh & McDonough, LLP to serve as legal
counsel in its Chapter 11 case.
The firm's services include:
(a) assisting the Debtor in investigating and examining
contracts, leases, financing statements and other related
documents;
(b) determining the validity of such documents;
(c) determining the rights and priorities of lienholders;
(d) advising the Debtor in preserving its properties and
assets; and
(f) generally assisting the Debtor in administering its
estate.
The hourly rates of the firm's attorneys and staff are as follows:
Samantha K. Brumbaugh $400 per hour
Dirk W. Siegmund $400 per hour
Charles M. Ivey, III $500 per hour
Darren A. McDonough $400 per hour
John M. Blust $300 per hour
Charles M. Ivey, IV $250 per hour
Melissa M. Murrell $125 per hour
Tabitha D. Coltrane $125 per hour
Janice Childers $100 per hour
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a total retainer of $15,000 from the Debtor.
Dirk Siegmund, Esq., a partner at Ivey, McClellan, Siegmund,
Brumbaugh & McDonough, disclosed in a court filing that his firm is
a "disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Dirk W. Siegmund, Esq.
Ivey, McClellan, Siegmund, Brumbaugh & McDonough, LLP
Post Office Box 3324
Greensboro, NC 27402
Telephone: (336) 274-4658
Facsimile: (336) 274-4540
Email: dws@iveymcclellan.com
About Roscoe Guitars
Roscoe Guitars, Inc. filed its voluntary petition for Chapter 11
protection (Bankr. M.D.N.C. Case No. 21-10520) on Sept. 27, 2021,
listing under $1 million in both assets and liabilities. Keith B.
Roscoe, president, signed the petition. Judge Lena M. James
oversees the case. Ivey, McClellan, Siegmund, Brumbaugh &
McDonough, LLP serves as the Debtor's legal counsel.
RSP PITTSBURGH: Seeks to Hire Dennis Spyra as Bankruptcy Attorney
-----------------------------------------------------------------
RSP Pittsburgh, Inc., seeks approval from the U.S. Bankruptcy Court
for the Western District of Pennsylvania to hire Dennis Spyra,
Esq., an attorney practicing in White Oak, Pa., to handle its
Chapter 11 case.
The services that will be provided by the firm include:
1. attendance at the first meeting of creditors and court
appearances;
2. legal advice on matters related to the status of the
Debtor's secured creditors and payments required under numerous
loan agreements and tax obligations;
3. representation of the Debtor in relation to acceptance or
rejection of executory contracts;
4. legal advice regarding the Debtor's rights and obligations
concerning Chapter 11 petition;
5. preparation of a disclosure statement and plan of
reorganization; and
6. representation of the Debtor in general through the
reorganization process.
Mr. Spyra will be paid at the rate of $375 per hour. He received a
retainer in the amount of $7,500.
As disclosed in court filings, Mr. Spyra does not represent
interests adverse to the Debtor's estate.
Mr. Spyra holds office at:
Dennis J. Spyra, Esq.
1711 Lincoln Way
White Oak, PA 15131
Phone: 412-673-5228
Email: attorneyspyra@dennisspyra.com
About RSP Pittsburgh
RSP Pittsburgh, Inc. filed a petition for Chapter 11 protection
(Bankr. W.D. Pa. Case No. 21-21968) on Sept. 7, 2021, listing as
much as $500,000 in both assets and liabilities. Judge Carlota M.
Bohm oversees the case. Dennis J. Spyra, Esq., is the Debtor's
bankruptcy attorney.
RURAL CONNECT: Case Summary & 7 Unsecured Creditors
---------------------------------------------------
Debtor: Rural Connect, LLC
f/k/a Wisper II, LLC
1378 North Cavalier Drive
Alamo, TN 38001
Business Description: Rural Connect is a Tennessee limited
liability company engaged in business as a
wireless internet service provider. The
Debtor provides wireless internet service to
customers in rural areas of West Tennessee.
Chapter 11 Petition Date: September 29, 2021
Court: United States Bankruptcy Court
Western District of Tennessee
Case No.: 21-10872
Judge: Hon. Jimmy L. Croom
Debtor's Counsel: Michael P. Coury, Esq.
GLANKLER BROWN PLLC
6000 Poplar Ave
Suite 400
Memphis, TN 38119
Tel: 901-525-1322
Fax: 901-525-2389
Email: mcoury@glankler.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Thomas P. Farrell as general manager.
A full-text copy of the petition containing, among other items, a
list of the Debtor's seven unsecured creditors is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/74A7VCI/Rural_Connect_LLC__tnwbke-21-10872__0001.0.pdf?mcid=tGE4TAMA
RURAL CONNECT: Seeks Cash Collateral Access
-------------------------------------------
Rural Connect, LLC, f/k/a Wisper II, LLC asks the U.S. Bankruptcy
Court for the Western District of Tennessee, Eastern Division, for
authority to use cash collateral on an interim basis in accordance
with the proposed budget. The Debtor also requests that the Court
schedule a hearing on the matter for entry of a final order
approving the use of cash collateral.
The Debtor requires the use of cash collateral to continue its post
petition operations and is necessary for its reorganization.
Ally Finance Corporation asserts a claim against the Debtor in the
approximate amount of $373,952, which is secured by an unperfected
security interest in substantially all of the Debtor's personal
property.
The Debtor says continued use of its cash, rents, accounts
receivable is necessary to ensure that the Debtor has adequate
working capital to fund operations and maintain its business.
The Debtor formerly was known as Wisper II, LLC. The Debtor's loan
from Ally was obtained February 28, 2014. To perfect its security
interest, Ally filed UCC-1 financing statement # 422969994 with the
Tennessee Secretary of State on March 26, 2015 which listed the
Debtor as "Wisper II, LLC". The Ally financing statement contained
a lapse date of March 26, 2020.
On July 18, 2019, the Debtor amended its Articles of Organization
to change its name to Rural Connect, LLC. Ally is a minority member
of the Debtor and was aware of the name change.
Ally did not amend its UCC-1 financing statement within four months
of the Debtor's corporate name change to change the name of the
borrower to Rural Connect, LLC. Tenn. Code. Ann. section 47-9-515
required that a continuation statement to extend the term of a UCC
financing statement be filed not less than six months prior to the
lapse date of a UCC-1 financing statement. Ally did not take steps
to file a continuation statement with respect to financing
statement # 422969994 prior to September 26, 2019. On March 26,
2020, Ally's UCC-financing statement lapsed by its own terms. As a
result, Ally does not have a perfected security interest in its
collateral.
On July 19, 2021, Ally filed UCC-1 financing statement # 434971596
in the name of Rural Connect, LLC. The name change of the Debtor
from Wisper II, LLC to Rural Connect, LLC rendered Ally's UCC-1
financing statement seriously misleading. On July 19, 2021, Ally
filed a new UCC-1 financing statement in the name of Rural Connect,
LLC with the Tennessee Secretary of State.
Contemporaneous with the filing of the cash collateral motion, the
Debtor has filed an adversary proceeding seeking to avoid the
unperfected security interest of Ally pursuant to 11 U.S.C. section
544 and 547. The Debtor avers Ally is adequately protected by an
equity cushion in the collateral. Alternatively, the Debtor avers
Ally is not entitled to adequate protection due to the invalidity
of the perfection of its security interest.
A copy of the Debtor's motion is available at
https://bit.ly/3l0IAEp from PacerMonitor.com.
About Rural Connect, LLC
Rural Connect, LLC is a Tennessee limited liability company with
its principal place of business in Alamo, Tennessee. The Debtor is
engaged in business as a wireless internet service provider. The
Debtor provides wireless internet service to customers in rural
areas of West Tennessee. The Debtor uses towers that have a
combination of fiber and microwave to produce high speed internet
in rural areas. The Debtor presently has approximately 16 employees
and approximately 1500 customers who rely on it for internet
service.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Tenn. Case No. 21-10872) on September
29, 2021. In the petition signed by
Thomas P. Farrell, general manager, the Debtor disclosed up to
$50,000 in assets and up to $10 million in liabilities.
Michael P. Coury, Esq., at Glanker Brown PLLC is the Debtor's
counsel.
SAN LUIS & RIO: Trustee Taps Missouri Rail Group as Broker
----------------------------------------------------------
William Brandt, Jr., the Chapter 11 trustee for The San Luis & Rio
Grande Railroad, Inc., received approval from the U.S. Bankruptcy
Court for the District of Colorado to hire Missouri Rail Group,
LLC, as broker.
Missouri Rail Group, doing business as Ozark Mountain Railcar, will
assist in the sale of a railroad passenger car, which is owned by a
third party, to recoup the Debtor's storage costs and pay off its
lien on the property.
The firm will get a $5,000 commission from the sale.
John Suscheck, chief executive officer of Missouri Rail Group,
disclosed in a court filing that he and his firm do not represent
interests adverse to the Debtor's estate.
The firm can be reached through:
John Suscheck
Ozark Mountain Railcar
P.O. Box 167
Kirbyville, MO 65679
Phone: 417-336-2401
Email: sales@ozarkmountainrailcar.com
About San Luis & Rio Grande Railroad
San Luis & Rio Grande Railroad, Inc., operates the San Luis & Rio
Grande Railroad.
On Oct. 16, 2019, an involuntary Chapter 11 petition was filed
against San Luis & Rio Grande Railroad by creditors, Ralco LLC,
South Middle Creek Road Association and The San Luis Central
Railroad Co. (Bankr. D. Colo. Case No. 19-18905). The petitioning
creditors are represented by Brownstein Hyatt Farber Schrec and
Graves Dougherty Hearon & Moody.
Judge Thomas B. McNamara oversees the case.
Williams A. Brandt Jr. was appointed as Chapter 11 trustee for San
Luis & Rio Grande Railroad.
The trustee tapped Markus Williams Young & Hunsicker LLC as
bankruptcy counsel, and Fletcher & Sippel LLC and Hall & Evans P.C.
as special counsel. Development Specialists, Inc. and D'Almeida
Consulting, LLC serve as the trustee's accountant and financial
consultant, respectively.
SANTA FE DIOCESE: Raises At Least $1.6-Mil. From Property Auction
-----------------------------------------------------------------
Rick Ruggles of Santa Fe New Mexican reports that an eight-day
online property auction raised close to $1.68 million for the
Archdiocese of Santa Fe's bankruptcy effort, an executive with the
auction company said this last week of September 2021.
Louis B. Fisher III of SVN Auction Services said some contracts
still must be signed, so the total isn't yet certain. The
archdiocese also will pay closing costs of 1 percent or a bit
more.
The archdiocese hopes to generate enough money through insurance,
property sales such as those in the online auction and donations to
settle a bankruptcy case with about 385 people who have claimed
sexual abuse perpetrated by Catholic clergy whom Church officials
have found to be "credibly accused."
Fisher said the auction sold about 140 properties, many of them
bundled with others.
The lots were in Bernalillo, Sandoval and Valencia counties.
Among the parcels sold was Santa Barbara Park in Albuquerque, just
west of Albuquerque High School. The city of Albuquerque reported
Tuesday, September 28, 2021, it had placed the winning bid of
$60,000 for the park. Dave Simon, the city’s parks and recreation
director, said the site is "important to the community and we look
forward to preserving it for generations to come."
Failing to meet an undisclosed amount of settlement money in the
bankruptcy case could require the archdiocese to sell essential
properties, such as community centers, schools and churches. The
institution has said it wants to limit sales to nonessential
properties, such as the small, vacant parcels in the auction, most
of which had been donated.
Fisher said this summer he hoped the auction would generate a "few
million" dollars. But he expressed satisfaction this week that the
money raised ultimately would help victims of clergy abuse and the
archdiocese.
"I think it's a good day for the entire case," he said Tuesday.
Tom Macken, the archdiocese’s executive director of property and
construction management, said the organization was "pleased with
the result" of the auction.
Catholic dioceses across the nation have claimed Chapter 11
bankruptcy amid the national and global sex abuse scandal that has
rocked the Church since the early 1990s.
BishopAccountability.org, a group tracking clergy pedophilia and
sex abuse cases, said 29 dioceses and Catholic organizations have
filed for bankruptcy. The Gallup diocese was among them.
That diocese settled its case with about 55 victims for more than
$20 million.
SVN, based in Florida and Louisiana, will hold a second auction for
the archdiocese in November. Fisher said the sale would feature
properties that are "more challenging" to sell. They are
distributed among 15 counties.
The bankruptcy case is being overseen by the U.S. Bankruptcy Court
in New Mexico.
The court agreed the auction service should receive up to $62,730
for advertising and marketing the event.
Property buyers paid a 10 percent commission on top of their
purchases.
Fisher said he hoped the auction signaled "things are coming to a
head" in the case but admitted it could still be a long time before
there is a resolution.
About the Archdiocese of Santa Fe
The Roman Catholic Church of the Archdiocese of Santa Fe --
https://www.archdiosf.org/ -- is an ecclesiastical territory or
diocese of the southwestern region of the United States in the
state of New Mexico. At present, the Archdiocese of Santa Fe
covers an area of 61,142 square miles. There are 93 parish seats
and 226 active missions throughout this area.
The Archdiocese of Santa Fe sought Chapter 11 protection (Bankr.
D.N.M. Case No. 18-13027) on Dec. 3, 2018, to deal with child abuse
claims. It reported total assets of $49,184,579 and total
liabilities of $3,700,000 as of the bankruptcy filing. Judge David
T. Thuma oversees the case.
The archdiocese tapped Elsaesser Anderson, Chtd. and Walker &
Associates, P.C., as bankruptcy counsel, Stelzner, Winter,
Warburton, Flores, Sanchez & Dawes, P.A as special counsel, and
REDW LLC as accountant.
SANUWAVE HEALTH: Plans to File Missed Annual, Quarterly Reports
---------------------------------------------------------------
Sanuwave Health Inc. disclosed in a Form 8-K filed with the
Securities and Exchange Commission that it has been preparing and
intends to file its Annual Report on Form 10-K for fiscal year
2020, and the Quarterly Reports on Form 10-Q for the periods ending
March 31, 2021 and June 30, 2021 when its audit of the Company's
annual financial statements for fiscal year 2020 is completed. In
addition, the Company has been preparing and intends to file all
the Missed Quarterly Reports and the Company will continue working
diligently to complete and file the Missed Filings as soon as
possible to become current with its SEC reporting obligations. As
soon as possible after it has done so, the Company intends to apply
for relisting on the OTC Markets through the filing of a new Form
211. The Company cannot guarantee if its stock will continue to be
quoted on the OTC Markets after Sept. 28, 2021. Moreover, if the
Company is moved to the Expert Market, there is no guarantee that
it will be accepted for relisting on the OTC Markets thereafter.
In September 2020, the Securities and Exchange Commission amended
Exchange Act Rule 15c2-11, which primarily governs a broker's
ability to submit or publish quotations for securities that trade
on the over-the-counter (OTC) markets. In essence, Rule 15c2-11
prohibits dealers from publishing quotations for OTC securities to
quotation mediums without first reviewing certain issuer financial
information and ensuring that information is current and publicly
available before quoting that security.
Under the amended Rule 15c2-11, which takes effect on Sept. 28,
2021, current information about an issuer must be publicly
available in order for an issuer's security to become quoted
initially, and remain quoted, on one of the public markets operated
by the OTC Markets Group. According to guidance from the OTC
Markets Group, issuers subject to SEC reporting obligations will
satisfy the requirements of the Amended Rule if such issuers are
current in their SEC reporting obligations in accordance with the
provisions of the Amended Rule. Companies that do not make current
information publicly available, and thus do not meet the
requirements for ongoing quoting, will be shifted to the OTC
Markets Group's "Expert Market." The Expert Market will be
available for unsolicited quotes only, meaning broker-dealers may
use the Expert Market to publish unsolicited quotes representing
limit orders from retail and institutional investors who are not
affiliates or insiders of the issuer. Quotations in Expert Market
securities are made available to broker-dealers, institutions, and
other sophisticated investors. A company relegated to the Expert
Market will be able to reapply for listing on the OTC Markets
through the filing of a new Form 211 with FINRA once the Company
has made current information available and is in compliance with
the Amended Rule. At present, Sanuwave Health Inc. is not current
with its SEC reporting obligations with respect to the the Missed
Annual Report and Missed Quarterly Reports.
About SANUWAVE Health
Headquartered in Suwanee, Georgia, SANUWAVE Health, Inc.
(OTCQB:SNWV) -- http://www.SANUWAVE.com-- is focused on the
research, development, and commercialization of its patented,
non-invasive and biological response-activating medical systems for
the repair and regeneration of skin, musculoskeletal tissue, and
vascular structures.
SANUWAVE reported a net loss of $10.43 million for the year ended
Dec. 31, 2019, compared to a net loss of $11.63 million for the
year ended Dec. 31, 2018. As of Sept. 30, 2020, the Company had
$32.87 million in total assets, $33.74 million in total
liabilities, and a total stockholders' deficit of $873,002.
Marcum LLP, in New York, NY, the Company's auditor since 2018,
issued a "going concern" qualification in its report dated March
30, 2020 citing that the Company has a significant working capital
deficiency, has incurred significant losses and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
SCIENTIFIC GAMES: To Sell Betting Business to Endeavor for $1.2B
----------------------------------------------------------------
Scientific Games Corporation has entered into a definitive
agreement to sell its Sports Betting business, OpenBet, to Endeavor
Group Holdings, Inc., a global sports and entertainment company, in
a cash and stock transaction valued at $1.2 billion. Under the
terms of the agreement, Scientific Games will receive $1 billion in
cash and $200 million in Endeavor Class A common stock based on the
volume-weighted average trading price of the Class A Common Stock
for the 20 trading days ending on Sept. 24, 2021, subject to
customary purchase price adjustments. The transaction is expected
to close in the second quarter of 2022, subject to applicable
regulatory approvals and customary closing conditions.
OpenBet is a global online sports betting technology company,
offering an ecosystem of sports content, technology and services to
the largest operators around the world. It is the number one
business-to-business sports betting partner in the U.S., U.K.,
Australia and Canada, with a leading position in Europe and APAC.
To date, OpenBet has over 75 global customers, including 24 sports
books across 12 states and a 100% uptime record across major
sporting events.
"This transaction represents the culmination of a thorough process
to divest OpenBet in order to maximize value for our shareholders
and rapidly advance our vision to become the leading cross-platform
global game company," said Barry Cottle, president and chief
executive officer of Scientific Games. "The transaction is a
significant milestone towards optimizing our portfolio and
de-levering the balance sheet to enhance our financial flexibility.
It will position us to invest both organically and inorganically
in key growth areas, particularly in content and digital markets.
We are delivering on our promises and executing on our strategy to
transform our company and unlock significant value for employees,
customers and shareholders."
"We believe Endeavor will enable us to build on our exceptional
track record of innovation and reliability and unlock even greater
value for our customers and employees," said Jordan Levin, chief
executive of Scientific Games' Digital business. "Endeavor's deep
industry relationships and global reach make them the ideal
partner. Together, these companies will be well positioned to
capitalize on emerging trends to deliver even more innovative and
tailored solutions to customers as we define the future of sports
betting entertainment."
"OpenBet has built an incredible sports betting suite anchored in
its best-in-class betting engine and now including expanded
content, services and products for sports books and fans," said
Ariel Emanuel, CEO, Endeavor. "This capability set is the ideal
complement to our IMG ARENA sports betting business, which works
directly with sports rights holders. We look forward to growing
these businesses together to capitalize on the strong secular
tailwinds in the sports betting ecosystem."
Advisors
Oakvale Capital LLP and Macquarie Capital (USA) Inc. are serving as
financial advisors and Cravath, Swaine & Moore LLP is serving as
legal counsel to Scientific Games.
About Scientific Games
Based in Las Vegas, Nevada, Scientific Games Corporation
(NASDAQ:SGMS) -- http://www.scientificgames.com-- is a developer
of technology-based products and services and associated content
for the worldwide gaming, lottery, social and digital gaming
industries. Its portfolio of revenue-generating activities
primarily includes supplying gaming machines and game content,
casino-management systems and table game products and services to
licensed gaming entities; providing instant and draw-based lottery
products, lottery systems and lottery content and services to
lottery operators; providing social casino solutions to retail
consumers and regulated gaming entities, as applicable; and
providing a comprehensive suite of digital RMG and sports wagering
solutions, distribution platforms, content, products and services.
Scientific Games reported a net loss of $548 million for the year
ended Dec. 31, 2020, compared to a net loss of $118 million for the
year ended Dec. 31, 2019. As of June 30, 2021, the Company had
$7.76 billion in total assets, $10.13 billion in total liabilities,
and a total stockholders' deficit of $2.37 billion.
SN TEAM: Unsecureds to Get 100% Recovery in Plan
------------------------------------------------
SN Team LLC filed with the U.S. Bankruptcy Court for the District
of Nevada a Second Amended Chapter 11 Plan and Second Amended
Disclosure Statement on Sept. 24, 2021.
The Debtor seeks to fund the Plan primarily from the net proceeds
and revenues generated through the leasing, sale or refinance of
its Real Properties. The Debtor anticipates that there will be
sufficient funds to pay all Allowed Secured and Allowed Unsecured
Claims.
The Secured Claim of JP Morgan Chase in Class 1 will be paid from
the sale of the respective collateral. One secured claim of US
Bank in Class 1.2 will be resolved through litigation, while
another secured claim of US Bank in Class 1.4 will be treated
pursuant to the parties' stipulation. Allowed Class 3 General
Unsecured Claims will receive 100% of their allowed claim, with a
total payout of $7,231, by the end of 60th month following the
Effective Date. Interest holders in Class 4 will receive the pro
rata share of monies available after payment to all creditors.
A copy of the Second Amended Disclosure Statement is available for
free at https://bit.ly/3CS6NCS from PacerMonitor.com.
The hearing on the Disclosure Statement will be held on October 20,
2021 at 1:30 p.m.
Counsel for the Debtor:
Timothy P. Thomas, Esq.
Law Office of Timothy P. Thomas, LLC
1771 E. Flamingo Rd., Suite B-212
Las Vegas, NV 89120
Telephone: (702) 227-0011
Facsimile: (702) 227-0334
About SN Team LLC
SN Team LLC owns and manages these properties: 229 Silver Rings
Ave., North Las Vegas, Nevada, 2153 Jade Creek St. #206, Las Vegas,
Nevada, 458 Winthrop Place, Henderson, Nevada, 251 S. Green Valley
Pkwy. #5521, Henderson, Nevada, and 8255 Las Vegas Blvd. South
#1214, Las Vegas, Nevada.
SN Team LLC filed a Chapter 11 petition (Bankr. D. Nev. Case No.
20-10812) on Feb. 13, 2020. Judge August B. Landis oversees the
case. In the petition signed by Wendy J. Merrill, managing member,
the Debtor was estimated to have between $500,000 and $1,000,000 in
assets, and between $100,000 and $500,000 in liabilities. The Law
Office of Timothy P. Thomas, LLC substituted Andersen Law Firm,
Ltd., as counsel for the Debtor.
TIMBER PHARMACEUTICALS: Joseph Lucchese to Serve as Full-Time CFO
-----------------------------------------------------------------
Timber Pharmaceuticals, Inc. and Joseph Lucchese, the company's
chief financial officer, entered into an offer letter pursuant to
which Mr. Lucchese agreed to provide full time services to the
company, and the company agreed to compensate him for his increased
workload by: (i) increasing his base salary to $350,000 per year
commencing as of Oct. 1, 2021, and (ii) increasing his eligibility
for a bonus to up to 40% of his base salary based on company and
individual targets to be developed, subject to continued employment
and remaining in good standing on each payment date.
In addition, on Sept. 27, 2021, the Compensation Committee of the
Board of Directors of Timber Pharmaceuticals approved a grant of
stock options to Mr. Lucchese to purchase 361,163 shares of company
common stock under the company's 2020 Omnibus Incentive Plan, as
amended, at an exercise price of $0.918 per share. The Options
vest in the following manner: 25% will vest on Sept. 27, 2022, and
the balance of the shares underlying the Options will vest in equal
monthly installments over the next three years commencing on Oct.
27, 2022.
About Timber Pharmaceuticals
Timber Pharmaceuticals, Inc. f/k/a BioPharmX Corporation --
http://www.timberpharma.com-- is a biopharmaceutical company
focused on the development and commercialization of treatments for
orphan dermatologic diseases. The Company's investigational
therapies have proven mechanisms-of-action backed by decades of
clinical experience and well-established CMC (chemistry,
manufacturing and control) and safety profiles. The Company is
initially focused on developing non-systemic treatments for rare
dermatologic diseases including congenital ichthyosis (CI), facial
angiofibromas (FAs) in tuberous sclerosis complex (TSC), and
localized scleroderma.
Timber reported a net loss of $15.12 million for the year ended
Dec. 31, 2020. For the period from Feb. 26, 2019, through Dec. 31,
2019, the Company reported a net loss of $3.04 million. As of June
30, 2021, the Company had $7.69 million in total assets,
$2.90 million in total liabilities, $1.98 million in redeemable
series A convertible preferred stock, and $2.80 million in total
stockholders' equity.
Short Hills, New Jersey-based KPMG LLP, the Company's auditor since
2019, issued a "going concern" qualification in its report dated
March 23, 2021, citing that the Company has suffered recurring
losses from operations that raise substantial doubt about its
ability to continue as a going concern.
VIENTO WINES: Court Confirms Plan, Imposes Injunction on Creditor
-----------------------------------------------------------------
Judge Trish M. Brown of the U.S. Bankruptcy Court for the District
of Oregon confirmed the Chapter 11 Subchapter V Plan of Viento
Wines Inc., with certain changes to said Plan and the Settlement
Agreement among the Debtor; Richard Cushman; Robin Cushman; the
Cushman Trust; and First Interstate Bank. The Settlement Agreement
resolves the issues among the parties with respect to the Plan and
the collateral securing First Interstate Bank's claim.
Judge Brown also enjoined First Interstate Bank from taking any
action to collect or enforce its remedies through July 31, 2022
against the Debtor's McMinnville Property.
A copy of the order is available for free at https://bit.ly/3EWXkMm
from PacerMonitor.com.
About Viento Wines
Viento Wines Inc. -- http://vientowines.com/-- is a winemaker
offering Gorge wines ranging from Sparkling, White, Rose, Red &
Dessert wine. Viento Wines sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Ore. Case No. 21-30690) on
March 29, 2021. In the petition signed by Richard Cushman,
president, the Debtor disclosed $679,176 in assets and $1,272,818
in liabilities.
Judge Trish M. Brown oversees the case.
Michael D. O'Brien, Esq., at Michael D. O'Brien & Associates, P.C.,
is the Debtor's counsel.
WIRTA HOTELS: Seeks to Hire Clark Nuber as Accountant
-----------------------------------------------------
Wirta Hotels, LLC, seeks approval from the U.S. Bankruptcy Court
for the Western District of Washington to hire Clark Nuber, P.S.,
as its accountant.
The firm's services include the preparation and filing of the
Debtor's tax returns and assistance in accounting-related matters.
The hourly fees charged by Clark Nuber range from $175 to $455.
As disclosed in court filings, Clark Nuber is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Amber Busch
Clark Nuber, P.S.
10900 NE 4th St, Unit 1400
Bellevue, WA 98004
Phone: 425-454-4919
Toll Free: 800-504-8747
Fax: 425-454-4620
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.
Z EDGE: Association Complains of Missing Claim in Plan
------------------------------------------------------
The Lakes Community Association objected to the Amended Chapter 11
Plan of Z Edge of All Trades, LLC saying that the Amended Plan
fails to include the Association's claim. The Association asserts
that its claim is secured by the Debtor's real property known as
1149 East Sandpiper Drive, No. 112, Tempe, Arizona 85283.
Chandler W. Travis, Esq., at The Travis Law Firm, PLC, counsel for
the Association disclosed that the Debtor included the
Association's claim in its original Chapter 11 Plan but noticeably
removes payment of the secured claim from the Amended Plan.
The Associated asked the Court that its claim be included in the
Amended Plan.
A copy of the objection is available for free at
https://bit.ly/3ANoO4l from PacerMonitor.com.
Counsel for The Lakes Community Association:
Chandler W. Travis, Esq.
Melissa S. Doolan, Esq.
The Travis Law Firm, PLC
10621 South 51st Street, Suite 103
Phoenix, AZ 85044
Telephone: (480) 219-3633
Email: bankruptcy@travislawaz.com
About Z Edge of All Trades
Z Edge of All Trades, LLC, is in the business of renting out
residential properties and doing contracting work.
Z Edge of All Trades sought Chapter 11 protection (Bankr. D. Ariz.
Case No. 20-09480) on Aug. 19, 2020, which case was dismissed on
Oct. 9, 2020. The U.S. Trustee sought dismissal due to the
Debtor's failure to appear and file schedules.
Z Edge of All Trades again sought Chapter 11 protection (Bankr. D.
Ariz. Case No. 20-12008) on Oct. 30, 2020.
Lawrence B. Slater, PLLC is the Debtor's counsel.
[^] BOOK REVIEW: Legal Aspects of Health Care Reimbursement
-----------------------------------------------------------
Authors: Robert J. Buchanan, Ph.D., and James D. Minor, J.D.
Publisher: Beard Books
Softcover: 300 pages
List Price: $34.95
Order your own personal copy at
http://www.beardbooks.com/beardbooks/legal_aspects_of_health_care_reimbursement.html
Review by Henry Berry
With Legal Aspects of Health Care Reimbursement, Buchanan, a
professor in the School of Public Health at Texas A&M, and Minor,
an attorney, have come up with an invaluable resource for lawyers
and anyone else seeking an introduction to the legal and social
issues related to Medicare and Medicaid. The administrative costs
of Medicare and Medicaid reimbursement have been a heated topic of
debate among public officials and administrators of provider
healthcare organizations, especially health maintenance
organizations. Although inflation and the use of costly medical
technology are key factors in the rise in Medicare and Medicaid
costs, some control can be gained through appropriate compliance,
using more efficient procedures and better detection of fraud. This
work is a major guide on how to go about doing this.
Though mostly a legal treatise, Legal Aspects of Health Care
Reimbursement, first published in 1985, also offers commentary
through legislative and regulatory analyses, thereby explaining how
healthcare reimbursement policies affect the solvency and
effectiveness of the Medicare and Medicaid programs.
In discussing how legislation and regulations affect the solvency
and effectiveness of government-provided healthcare, the authors
offer insight into the much-publicized and much-discussed issue of
runaway healthcare costs. Mr. Buchanan and Minor do not deny that
healthcare costs are out of control and are onerous for the
government and ruinous for many individuals. But healthcare
reimbursement policies are not the cause of this, the authors
argue. To make their case, they explain how the laws and
regulations in different areas of the Medicare and Medicaid
programs create processes that are largely invisible to the public,
but make the programs difficult to manage financially. The
processes are not well thought out nor subject to much quality
control, with the result that fraud is chronic and considerable.
The areas of Medicare covered in the book are inpatient hospital
reimbursement, long-term care, hospice care, and end-stage renal
disease. The areas of Medicaid covered are inpatient hospital and
long-term care plus abortion and family planning services. For
each of these areas, the authors discuss the conditions for
receiving reimbursement, the legislation and regulations regarding
reimbursement, the procedures for being reimbursed, the major areas
of reimbursement (for example, capital-related costs, dietetic
services, rental expenses); and court cases, including appeals.
Reimbursement practices of selected states are covered.
For each of the major areas of interest, the chapters are organized
in a manner that is similar to that found in reference books and
professional journals for attorneys and accountants. Laws and
regulations are summarized and occasionally quoted with expert
background and commentary supplied by the authors. With regard to
court cases and rulings pertaining to Medicare and Medicaid,
passages from court papers are quoted, references to legal records
are supplied, and analysis is provided. Though the text delves
into legal issues, it is accessible to administrators and other lay
readers who have an interest in the subject matter. Clear chapter
and subchapter titles, a table of cases following the text, and a
detailed index enable readers to use this work as a reference.
The value of this book is reflected in the authors' ability to
distill great amounts of data down to one readable text. It
condenses libraries of government and legal documents into a single
work. Answers to questions of fundamental importance to healthcare
providers -- those dealing with qualifications, compliance,
reimbursable costs, and appeals -- can be found in one place.
Timely reimbursement depends on proper application of the rules,
which is necessary for a provider's sound financial standing. But
the authors specify other reasons for writing this book, to wit:
"Providers should have a general knowledge of the law and should
not rely on manuals and regulations exclusively." By summarizing,
commenting on, and citing cases relating to principal provisions of
Medicare and Medicaid, the authors accomplish this objective.
The authors also cover the topic of fraud with respect to both
Medicare and Medicaid, offering both a legal treatment and
commentary. At the end of each chapter is a section titled
"Outlook," which contains a discussion of government studies,
changes in healthcare policy, or other developments that could
affect reimbursement. Although this work was published over two
decades ago, much of this discussion is still relevant today.
Finally, the book is a call for change. The authors remark in
their closing paragraph: "Given the increasing for-profit
orientation of the major segments of the health care industry,
proprietary providers should be particularly responsive to new
efficiency incentives" in reimbursement. In relation to this,
"policymakers [should] develop reimbursement methods that will
encourage providers to become more efficient."
Robert J. Buchanan was a professor in the Department of Health
Policy and Management in the School of Rural Public Health at the
Texas A&M University System Health Sciences Center. James D. Minor
was a former law professor at the University of Mississippi.
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine
Tumanda, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog,
Meriam Fernandez, Joel Anthony G. Lopez, Cecil R. Villacampa,
Sheryl Joy P. Olano, Psyche A. Castillon, Ivy B. Magdadaro, Carlo
Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors.
Copyright 2021. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers. Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.
The TCR subscription rate is $975 for 6 months delivered via
e-mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each. For subscription information, contact Peter A.
Chapman at 215-945-7000.
*** End of Transmission ***