/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/211126.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, November 26, 2021, Vol. 25, No. 329 Headlines 225 DEEPARTH: Public Auction Set for January 2022 25-16 37TH AVE: Taps Rosewood Realty Group as Real Estate Broker 975 WALTON BRONX: Updates Lender Secured Claim Pay Details ADAMIS PHARMACEUTICALS: Incurs $9.3M Net Loss in Second Quarter AERKOMM INC: Posts $1.7 Million Net Income in Third Quarter AEROSPACE FACILITIES: Has Deal on Cash Access Thru May 2022 AINOS INC: Incurs $1.2 Million Net Loss in Third Quarter AINOS INC: To Acquire Assets of Majority Shareholder for US$26M AIRPORT VAN RENTAL: Seeks Cash Collateral Access Thru March 2022 ALDRICH PUMP: Asbestos Claimants' Panel Gets OK to Tap Consultant ALEXANDRIA HOSPITALITY: Unsecureds to be Paid From Surplus Funds ALLIED ESPORTS: Posts $74.3 Million Net Income in Third Quarter ALROSE ALLEGRIA: Trustee Submits Plan of Liquidation AVAILA BIO: Seeks to Employ Muldoon & Muldoon as Special Counsel AVAILA BIO: Seeks to Employ Riveron RTS as Financial Advisor B&G FOODS: S&P Alters Outlook to Negative, Affirms 'B+' ICR BEAVEX HOLDING: Beldner Bid to Withdraw as Counsel OK'd BLUE STAR: Incurs $162K Net Loss in Third Quarter BOY SCOUTS: To Lobby on Bill to Curb Bankruptcy Tactics BROADBAND PROPERTIES: Taps Glankler Brown as Bankruptcy Counsel BRODIE HOLDINGS: Seeks to Employ Larry Strauss as Accountant BUCKINGHAM HEIGHTS: Seeks to Hire 'Ordinary Course' Professionals BVS CONSTRUCTION: 5th Cir. Junks Appeal Over Prosperity Bank Claim BY CHLOE: Judge Sides With Chef Chloe Coscarelli in Brand Row CAMBRIAN HOLDING: Diversified Midsteam Bid for Summary Ruling OK'd CARNIVAL CORP: S&P Affirms 'B' Issuer-Credit Rating, Outlook Neg. CF&G ENTERPRISES: Seeks to Employ Steven Lazarou as Accountant CINEMA SQUARE: Has Deal to Extend Cash Collateral Use CITY WIDE COMMUNITY: Taps Brennan Kucera as Litigation Counsel COMMUNITY HEALTH: Amends Credit Pact With JPMorgan CUDA ENERGY: Chapter 15 Case Summary CYPRESS CREEK: Gets Approval to Hire J. Patrick Magill as CRO EADES PLASTIC: Gets OK to Tap Mesch Clark Rothschild as Counsel EAGLE HOSPITALITY: Former Insiders Ordered to Account for PPP Funds EDWARD EADES: Gets OK to Hire Mesch Clark Rothschild as Counsel ENRAMADA PROPERTIES: Class 4(b) & 4(d) Unsecureds to Recover 60% ETHEMA HEALTH: Posts $1.5 Million Net Income in Third Quarter FINDLAY ESTATES: Seeks Approval to Hire Leo Fox as Legal Counsel FLORIDA TILT: Unsecured Creditors to Split $17.6K over 5 Years FORD STEEL: Seeks Cash Collateral Access Thru Dec 6 GATEARM TECHNOLOGIES: Unsecureds to Get $1K per Month for 60 Months GEX MANAGEMENT: Incurs $178K Net Loss in Third Quarter GIRARDI & KEESE:Tom's Laptop Discovered Amid Bankruptcy Proceedings GRANDMA BEA: Seeks to Hire Larry Strauss as Accountant GROM SOCIAL: Incurs $2.3 Million Net Loss in Third Quarter GRUPO AEROMEXICO: Will Raise $1.3 Billion to Exit Chapter 11 GULF COAST HEALTH: Defuses Loan, Site Management Disputes GULF COAST: Judge Quiz CRO on Lack of Sale Push Prior Ch.11 Filing INSYS THERAPEUTICS: Convicted Ex-Execs Must Pay Victims $43.8 Mil. J & GC INC: Continued Operations to Fund Plan K R GROUP: Gets Approval to Hire Devon Barclay as Legal Counsel KELLEY HYDRAULICS: Seeks to Hire Weycer as Bankruptcy Counsel KOSSOFF PLLC: Founder to Surrender to Manhattan District Atty. LATAM AIRLINES: Nears Exiting Chapter 11 Bankruptcy LEGAL ADVOCACY: Seeks to Employ UHY LLP as Accountant LTL MANAGEMENT: Talc Claimants Look to Feb. Hearing on Dismissal MAGELLAN HOME-GOODS: Taps Schact Law Office as Special Counsel MALLINCKRODT PLC: Judge Rejects Ch.11 Asbestos Votes Probe MCK USA 1: Creditors to Get Proceeds from Sale of Apartment 1903 MIND TECHNOLOGY: Provides Operational Update; Q3 Results on Dec. 8 MONSTER INVESTMENTS: Seeks Court Approval to Hire Gheen Accounting NEW YORK SPORTS CLUB: Buys KettleBell Concepts After Ch. 11 Exit NITROCRETE LLC: Seeks to Hire BMC Group as Noticing Agent NITROCRETE LLC: Taps Markus Williams Young & Hunsicker as Counsel NITROCRETE: Seeks to Employ SSG Advisors as Investment Banker NITROCRETE: Seeks to Hire Cordes & Company as Financial Advisor NOISE SOLUTIONS: Has Deal on Cash Collateral Access Thru Jan 2022 NORTHERN OIL: Grants Underwriters 30-Day Option to Buy More Shares O'HARE SHELL: Seeks Approval to Tap Bach Law Offices as Counsel PENN HILLS: S&P Assigns 'BB' Rating on 2021A-B Revenue Bonds PENN NATIONAL: S&P Upgrades ICR to 'B+', Off CreditWatch Positive PHI GROUP: Incurs $6 Million Net Loss in First Quarter PHRG INTERMEDIATE: S&P Assigns 'B' ICR, Outlook Stable PREFERRED READY-MIX: Bid to Use Cash Collateral Moot PRIME GLOBAL: Seeks to Hire Forensic Internal Audit as Accountant PRINTPACK HOLDINGS: Moody's Affirms B1 CFR, Outlook Remains Stable PURDUE PHARMA: PTAB Invalidates Patent After Chapter 11 Delay SAN DIEGO TACO: Seeks to Tap Bonilla Accounting Firm as Accountant SANUWAVE HEALTH: Delays Filing of Form 10-Q SCIENTIFIC GAMES: Chief Accounting Officer Resigns SECOND LLC: Seeks to Employ Larry Strauss as Accountant SECOND LLC: Seeks to Employ RLC Lawyers as Bankruptcy Counsel SHURWEST LLC: Gets OK to Hire King & Spalding as Special Counsel SOAMES LANE: Seeks to Hire Paul A. Beck as Bankruptcy Counsel SOMO AUDIENCE: Fine-Tunes Plan Documents STEM HOLDINGS: Board Terminates Employment of Salvatore Villanueva TAURIGA SCIENCES: All Proposals Passed at Special Meeting TECHNICAL COMMUNICATIONS: Issues Amended $2M Demand Note to CEO TECOSTAR HOLDINGS: S&P Lowers ICR to 'B-' on Weak Financials TEEFOR2 INC: Has Deal Extending Cash Collateral Access VALLEY HOSPICE: Seeks Chapter 11 Bankruptcy Protection VISTA CHARTER: S&P Lowers Lease Revenue Bond LT Rating to 'BB' WESTERN URANIUM: Incurs $830K Net Loss in Third Quarter Z REAL ESTATE: Property Sale Proceeds or Rental to Fund Plan ZNB LLP: Seeks Approval to Hire Larry Strauss as Accountant [*] Airlines That Succumbed to Bankruptcy Due to the Pandemic [^] BOOK REVIEW: Mentor X ********* 225 DEEPARTH: Public Auction Set for January 2022 ------------------------------------------------- In accordance with applicable provisions of the Uniform Commercial Code as enacted in all applicable jurisdiction, LoanCore Capital Credit REIT LLC ("secured party") will offer for sale at public auction all of the 225 Deerpath Investors LLC's ("Debtor") right, title and interests in and to (a) 100% of the limited liability company interests of 225 E. Deerpath LLC, a Delaware limited liability company ("owner"), and (b) certain related rights and property related thereto ("collateral"). Based on the Debtor's disclosures, secured party understands that the principal asset of the owner is certain real property located at 225 E. Deerpath, Lake Forest, IL 60045, and such property is subject to one or more mortgages. The public auction will be held on Jan. 21, 2022, at 12:00 p.m. (CST), by remote auction via web-based video conferencing and/or telephonic conferencing program selected by the secured party. All qualified bidders may virtually attend and participate at the auction. The collateral will be sold to the highest qualified bidder; provided that the secured party reserves the right to at any time cancel the sale, or to adjourn the sale to a future date. The sale will be conducted by Mannion Auctions LLC, by Matthew Mannion, auctioneer, with offices at 305 Broadway, Suite 200, New York NY 10007. Mr. Mannion can be reached at: Mannion Auctions LLC Attn: Matthew D. Mannion, auctioneer 305 Broadway, Suite 200 New York, New York Tel: (212) 267-6698 Interested parties who intend to bid on the collateral must contact the secured party's sale advisor, Brock Cannon of Newmark Knight Frank at brock.cannon@nmrk.com to receive the terms of sale and bidding instructions. Mr. Cannon can be reached at: Brock Cannon Knight Frank 125 Park Avenue New York, NY 10017 Tel: (212) 372-2066 Email: brock.cannon@nmrk.com The sale, originally scheduled for Oct. 5, 2021, and subsequently adjourned until Nov. 17, 2021, has been postponed. 25-16 37TH AVE: Taps Rosewood Realty Group as Real Estate Broker ---------------------------------------------------------------- 25-16 37th Ave Owners, LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of New York to hire Rosewood Realty Group to market for sale its real property in New York. The property is a seven-storey mixed-use condominium project located at 25-16 37th Ave., Long Island City, N.Y. Rosewood will get a 3.75 percent commission on the gross sale price of the property. In the event that the successful buyer is the stalking horse bidder or senior lender, then the firm will be paid a fixed fee of $80,000. Greg Corbin, president of Rosewood, disclosed in a court filing that he is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Greg Corbin Rosewood Realty Group 152 West 57th Street, 5th Floor New York, NY 10019 Tel: (212) 359-9904 Email: Greg@rosewoodrg.com About 25-16 37th Ave Owners LLC Hollywood, Fla.-based 25-16 37th Ave Owners, LLC is a single asset real estate debtor (as defined in 11 U.S.C. Section 101(51B)). 25-16 37th Ave Owners filed its voluntary petition for Chapter 11 protection (Bankr. E.D.N.Y. Case No. 21-42662) on Oct. 19, 2021, listing $250,000 in assets and $18,437,803 in liabilities. Judge Jil Mazer-Marino presides over the case. Joel M. Shafferman, Esq., at Shafferman & Feldman, LLP represents the Debtor as legal counsel. 975 WALTON BRONX: Updates Lender Secured Claim Pay Details ---------------------------------------------------------- 975 Walton Bronx LLC, submitted an Amended Disclosure Statement in support of its Amended Chapter 11 Plan of Reorganization dated November 22, 2021. As emphasized throughout the Reorganization Plan, the Debtor's primary goal is to restructure the underlying mortgage debt, and pay other creditors, so as to permit the Debtor to maintain ownership of its real property, consisting of multi-family residential apartment building located at 975 Walton Avenue, Bronx, New York (the "Property"), containing approximately 182 residential apartments and 5 commercial stores. The Mortgage carries a principal balance of $21,667,046.25 (the "Mortgage") and is currently held by Walton Improvement Group LLC (the "Lender"). The Debtor's preferred treatment of the Lender's Secured Claim is to reverse the acceleration of the mortgage debt and reinstate the mortgage loan through a cure and reinstatement. The Debtor's proposed cure and reinstatement of the Mortgage will be challenged by the Lender in connection with proceedings to confirm the Plan for the reasons set forth in the Lender's position statement (the "Lender's Statement"). Nevertheless, the Debtor believes it will be successful in its efforts to cure and reinstate the Mortgage. The Debtor disputes the Lender's Statement and will brief the issues and objections raised by the Lender. Indeed, the Debtor remains confident that it can establish all of the required elements under 11 U.S.C. §1124(2) including that all of the alleged defaults are curable. Class 1 consists of the allowed secured claim of Lender. The overriding goal of the Reorganization Plan is to restructure the Mortgage in a manner that preserves the Debtor's ability to retain the Property. The Debtor countered with the filing of this Chapter 11 case to utilize bankruptcy to address the claim of the Lender and preserve ownership of the Property for itself. The ultimate disposition of the Property will be determined in connection with the confirmation process. Anticipated Objection to Cure and Reinstatement – The Debtor anticipates that the Lender will raise, among other potential objections, the objections to the Cure and Reinstatement as set forth in the Lender's Statement. First, to the extent that the Lender disputes the total amounts necessary to Cure, this will be addressed as part of a claim objection. Whatever amount is ultimately determined and allowed by the Bankruptcy Court to effectuate the Cure shall be paid. Second, the Lender has indicated certain of the defaults relating to a prior change in the equity ownership of the Debtor are uncurable. In the Debtor's view, this objection is unavailing for a number of reasons, including the 2005 amendments to the Bankruptcy Code pursuant to which so-called incurable defaults are (in the Debtor's view) no longer considered a bar to cure and reinstate. The Debtor asserts and the Lender disputes that Investors Bank was aware of the change in ownership and never objected to the same, invoking issues of fact as to waiver and estoppel. In this regard, it is highly relevant that among the several monetary and non monetary defaults alleged by the Lender in its pre-petition foreclosure complaint, it fails to mention the change in ownership as an event of default. The Amended Disclosure Statement does not alter the proposed treatment for unsecured creditors and the equity holder: * Class 3 consists of the allowed Unsecured Claims, including all prepetition vendors and service providers, in the estimated amount of $200,000, subject to reconciliation. Each holder of an Allowed Class 3 Unsecured Claim shall receive a 15% dividend to be paid in equal quarterly installments over a period of 1 year from the Effective Date of the Plan. Class 3 is impaired under the Plan and eligible to vote. * Class 4 consists of the membership interests of the Debtor's equity holders. All existing pre-petition Equity Interests in the Debtor shall be canceled in favor of reconstituting and recapitalizing the membership interest of the Reorganized Debtor to be held by the Current Investors in proportion to their respective New Value Contributions. Benzion Kohn or his affiliate shall not, under any circumstances, be a member of the Reorganized Debtor and all of his interests shall be cancelled. The Plan shall be funded through a combination of access to existing cash reserves, plus the New Value Contributions of the Debtor's Current Investors of at least $2.0 million. The additional sums needed to make the quarterly installment payments to the Class 3 General Unsecured Creditors will come from future operations of the Reorganized Debtor, and potentially, from the Creditor Trust. A full-text copy of the Amended Disclosure Statement dated Nov. 22, 2021, is available at https://bit.ly/3DTFngO from PacerMonitor.com at no charge. Attorneys for the Debtor: Kevin J. Nash, Esq. Goldberg Weprin Finkel Goldstein, LLP 1501 Broadway 22nd Floor New York, NY 10036 Tel: (212) 221-5700 Email: knash@gwfglaw.com About 975 Walton Bronx 975 Walton Bronx, LLC is a New York limited liability company, which primarily owns a multi-family residential apartment building at 975 Walton Avenue, Bronx, N.Y. The property consists of 182 apartments and commercial space, including a cell tower. 975 Walton Bronx sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 21-40487) on Feb. 25, 2021. At the time of filing, the Debtor had between $10 million and $50 million in both assets and liabilities. Judge Jil Mazer-Marino oversees the case. Goldberg Weprin Finkel Goldstein, LLP is the Debtor's legal counsel. Walton Improvement Group LLC, as lender, is represented by: Benjamin Mintz, Esq. ARNOLD & PORTER KAYE SCHOLER LLP 250 West 55th Street New York, NY 10019 Tel: (212) 836-8000 Email: benjamin.Mintz@arnoldporter.com ADAMIS PHARMACEUTICALS: Incurs $9.3M Net Loss in Second Quarter --------------------------------------------------------------- Adamis Pharmaceuticals Corporation filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $9.31 million on $4.01 million of net revenue for the three months ended June 30, 2021, compared to a net loss of $12.92 million on $3.93 million of net revenue for the three months ended June 30, 2020. For the six months ended June 30, 2021, the Company reported a net loss of $24.69 million on $8.12 million of net revenue compared to a net loss of $20.17 million on $8.59 million of net revenue for the same period during the prior year. As of June 30, 2021, the Company had $63.71 million in total assets, $17.03 million in total liabilities, and $46.68 million in total stockholders' equity. The Company's cash and cash equivalents and restricted cash were $40,618,554 and $6,855,355 at June 30, 2021 and Dec. 31, 2020, respectively. "The Company prepared the condensed consolidated financial statements assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities during the normal course of business. In preparing these condensed consolidated financial statements, consideration was given to the Company's future business ... which may preclude the Company from realizing the value of certain assets. The Company has significant operating cash flow deficiencies. Additionally, the Company may need additional funding in the future to help support commercialization of its products and conduct the clinical and regulatory activities relating to the Company's product candidates, satisfy existing obligations and liabilities, and otherwise support the Company's intended business activities and working capital needs. The preceding conditions raise substantial doubt about the Company's ability to continue as a going concern. The condensed consolidated financial statements for the six months ended June 30, 2021, were prepared under the assumption that we would continue our operations as a going concern, which contemplates the realization of assets and the satisfaction of liabilities during the normal course of business. Our unaudited condensed consolidated financial statements do not include any adjustments that may result from the outcome of this uncertainty. Management's plans include attempting to secure additional required funding through equity or debt financings, sales or out-licensing of intellectual property or other assets, products, product candidates or technologies, seeking partnerships with other pharmaceutical companies or third parties to co-develop and fund research and development efforts, or similar transactions, and through revenues from existing agreements. There is no assurance that the Company will be successful in obtaining the necessary funding to meet its business objectives. In addition, the COVID-19 pandemic has had an adverse impact on the Company. A severe or prolonged economic downturn or political disruption could result in a variety of risks to our business, including our ability to raise capital when needed on acceptable terms, if at all." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/887247/000138713121011421/admp-10q_063021.htm About Adamis Pharmaceuticals Adamis Pharmaceuticals Corporation -- http://www.adamispharmaceuticals.com-- is a specialty biopharmaceutical company primarily focused on developing and commercializing products in various therapeutic areas, including allergy, opioid overdose, respiratory and inflammatory disease. Adamis reported a net loss of $49.39 million for the year ended Dec. 31, 2020, compared to a net loss of $27.51 million for the year ended Dec. 31, 2019. As of Dec. 31, 2020, the Company had $30.87 million in total assets, $27.37 million in total liabilities, and $3.50 million in total stockholders' equity. San Diego, California-based BDO USA, LLP, the Company's auditor since 2020, issued a "going concern" qualification in its report dated April 15, 2021, citing that the Company has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. AERKOMM INC: Posts $1.7 Million Net Income in Third Quarter ----------------------------------------------------------- Aerkomm Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing net income of $1.70 million on $1.81 million of net sales for the three months ended Sept. 30, 2021, compared to a net loss of $2.37 million on zero sales for the three months ended Sept. 30, 2020. For the nine months ended Sept. 30, 2021, the Company reported a net loss of $4.06 million on $1.88 million of net sales compared to a net loss of $6.86 million on zero sales for the nine months ended Sept. 30, 2020. As of Sept. 30, 2021, the Company had $58.22 million in total assets, $21.81 million in total liabilities, and $36.41 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1590496/000121390021061214/f10q0921_aerkomminc.htm About Aerkomm Headquartered in Nevada, USA, Aerkomm Inc. -- http://www.aerkomm.com-- is a full-service development stage provider of in-flight entertainment and connectivity (IFEC) solutions, intended to provide airline passengers with a broadband in-flight experience that encompasses a wide range of service options. Those options include Wi-Fi, cellular, movies, gaming, live TV, and music. The Company plans to offer these core services, which it is currently still developing, through both built-in in-flight entertainment systems, such as a seat-back display, as well as on passengers' own personal devices. Aerkomm reported a net loss of $9.11 million for the year ended Dec. 31, 2020, compared to a net loss of $7.98 million for the year ended Dec. 31, 2019. As of June 30, 2021, the Company had $56.89 million in total assets, $22.29 million in total liabilities, and $34.60 million in total stockholders' equity. AEROSPACE FACILITIES: Has Deal on Cash Access Thru May 2022 ----------------------------------------------------------- Aerospace Facilities Group, Inc. and secured creditor EBF Holdings LLC dba Everest Funding have informed the U.S. Bankruptcy Court for the Eastern District of California, Sacramento Division, that they have reached an agreement regarding the Debtor's use of cash collateral and now desire to memorialize the terms of this agreement into an agreed order. The Debtor seeks permission for the use of cash collateral and to assume an executory contract with EBF as the Debtor has determined that its use of cash collateral and assumption of the executory contract are critical to and in the best interest of the Debtor, its estate, and for the continuing operation of its business. On August 26, 2021, the Parties entered into a Revenue Based Financing Agreement. Under the Agreement, the Debtor sold $174,000 in future receipts to EBF. The purchase price was $120,000. Among detailed terms, the Agreement provides in general that (1) as Aerospace collected future receipts/accounts receivables that it had sold to EBF, that Aerospace would hold the funds in trust for EBF to the extent of the Specified Percentage (15% initially), and (2) Aerospace would promptly remit to EBF 15% of receivables collected by Aerospace, which was estimated under the Agreement to require a daily payment of $966.67; and (3) if there was a default, the Specified Percentage would be 100%. To give notice that $174,000 in accounts receivable had been sold to EBF, EBF filed a UCC-1 Financing Statement on September 21, 2021. The Agreement includes a number of provisions with ongoing obligations by both Parties relating to the process for collection by the Debtor and payment to EBF of $174,000 of the Future Receipts. Accordingly, both Parties to the Purchase Agreement have continuing obligations to be performed, making the Agreement an executory contract pursuant to 11 U.S.C. section 365. The parties agree that the Debtor may use cash collateral through May 2022. The agreement will terminate upon agreement of both Parties, payment to EBF of $174,000, or dismissal of the bankruptcy case. EBF will be adequately protected for the use of the cash collateral --- the proceeds of future receivables -- by a lien, the assumption of the executory contract, and by the adequate protection payments the Debtor proposes to pay equal to 15% of its monthly receivables. A copy of the stipulation is available at https://bit.ly/3p12yQ4 from PacerMonitor.com. About Aerospace Facilities Group Inc. Aerospace Facilities Group, Inc. is part of the Other Nonmetallic Mineral Product Manufacturing industry. It is headquartered in West Sacramento, Calif. Aerospace Facilities Group filed a petition for Chapter 11 protection (Bankr. E.D. Calif. Case No. 21-23244) on Sept. 14, 2021, listing up to $1 million in assets and up to $10 million in liabilities. Dennis R. Robinson, president of Aerospace Facilities Group, signed the petition. Judge Christopher M. Klein oversees the case. The Law Offices of Gabriel Liberman, APC serves as the Debtor's legal counsel. AINOS INC: Incurs $1.2 Million Net Loss in Third Quarter -------------------------------------------------------- Ainos, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $1.16 million on $363,052 of revenues for the three months ended Sept. 30, 2021, compared to a net loss of $323,285 on $192 of revenues for the three months ended Sept. 30, 2020. For the nine months ended Sept. 30, 2021, the Company reported a net loss of $2.44 million on $568,164 of revenues compared to a net loss of $1 million on $15,876 of revenues for the same period during the prior year. As of Sept. 30, 2021, the Company had $19.99 million in total assets, $2.86 million in total liabilities, and $17.14 million in total stockholders' equity. As of Sept. 30, 2021, the Company had available cash of $706,931 whereas it had a cash position of $83,767 for the same period in 2020 and $22,245 as of Dec. 31, 2020. The Company had a working capital deficit of $1,937,163 at the end of Sept. 30, 2021, and a working capital deficit of $919,880 for the same period in 2020, an increase of 111%. As of Dec. 31, 2020, working capital was a deficit of $1,022,155. Ainos said, "The Company anticipates business revenues and potential financial support to fund the Company's operations over the next twelve months. There can be no assurance that we will be successful in our efforts to make the Company profitable. If those efforts are not successful, the Company may raise additional capital through the issuance of equity securities, debt financings or other sources in order to further implement its business plan. However, if such financing is not available when needed and at adequate levels, the Company will need to reevaluate its operating plan." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1014763/000165495421012154/aimd_10q.htm About Ainos Ainos, Inc., formerly known as Amarillo Biosciences, Inc., is a diversified healthcare company engaged in the research and development and sales and marketing of pharmaceutical and biotech products. The Company is a Texas corporation incorporated in 1984. Amarillo reported a net loss of $1.45 million for the year ended Dec. 31, 2020, compared to a net loss of $1.58 million for the year ended Dec. 31, 2019. As of June 30, 2021, the Company had $20.62 million in total assets, $2.42 million in total liabilities, and $18.21 million in total stockholders' equity. Houston, Texas-based PWR CPA, LLP, the Company's auditor since 2020, issued a "going concern" qualification in its report dated March 30, 2021, citing that the Company's absence of significant revenues, recurring losses from operations, and its need for additional financing in order to fund its projected loss in 2021 raise substantial doubt about its ability to continue as a going concern. AINOS INC: To Acquire Assets of Majority Shareholder for US$26M --------------------------------------------------------------- Ainos, Inc., a Texas corporation, entered into an asset purchase agreement with Ainos, Inc., a Cayman Islands corporation. The seller is a majority shareholder of Ainos. Pursuant to the agreement, upon the closing of the transactions contemplated thereby, the company will acquire certain intellectual property assets and certain manufacturing, testing, and office equipment for a total purchase price of US$26 million. Of the total purchase price, the parties agreed to allocating US$24,886,023 toward acquisition of the IP assets and US$1,113,977 toward the purchase of the equipment. The purchase price will be paid at closing by Ainos issuing a convertible note. The terms and conditions of the convertible note will be determined by the parties prior to closing. As part of the deal, Ainos agreed to hire certain employees of the seller who are responsible for research and development of the IP assets and equipment on terms at least equal to the compensation arrangements undertaken by the seller. From and after the closing, the company will have no responsibility, duty or liability with respect to any employee benefit plans of the seller. The closing is conditioned upon, among other things, including (i) performance of certain conditions precedent under the agreement as set forth in Sections 6 and 7 of the agreement and (ii) certain deliveries by seller and the company set forth in Sections 3.2 and 3.3 of the agreement evidencing approval of the Board of each party, Bill of Sale or comparable transfer documents, assignment and transfer agreements for the IP assets and the equipment, and the convertible note. About Ainos Ainos, Inc., formerly known as Amarillo Biosciences, Inc., is a diversified healthcare company engaged in the research and development and sales and marketing of pharmaceutical and biotech products. The Company is a Texas corporation incorporated in 1984. Amarillo reported a net loss of $1.45 million for the year ended Dec. 31, 2020, compared to a net loss of $1.58 million for the year ended Dec. 31, 2019. As of Sept. 30, 2021, the Company had $19.99 million in total assets, $2.86 million in total liabilities, and $17.14 million in total stockholders' equity. Houston, Texas-based PWR CPA, LLP, the Company's auditor since 2020, issued a "going concern" qualification in its report dated March 30, 2021, citing that the Company's absence of significant revenues, recurring losses from operations, and its need for additional financing in order to fund its projected loss in 2021 raise substantial doubt about its ability to continue as a going concern. AIRPORT VAN RENTAL: Seeks Cash Collateral Access Thru March 2022 ---------------------------------------------------------------- Airport Van Rental, Inc., and its affiliated debtors ask the U.S. Bankruptcy Court for the Central District of California, Los Angeles Division, for entry of an order extending the Debtors' authority to use cash collateral through the end of March 2022. Airport Van Rental proposes to continue using cash collateral on the terms and conditions that the Court earlier approved. The Court previously authorized cash collateral access after a compromise of conflicting positions. The Debtors' business is renting vehicles, especially large passenger vans, minivans and SUVs, to consumers, corporations and governmental entities. To finance the purchase of the vehicles, AVR California borrows money from lenders or enters into potentially disguised-sale "lease" agreements with vehicle financing companies. AVR California ultimately is responsible for paying each lender the full purchase price of every vehicle financed by that lender. Each lender has at least a security interest in each vehicle financed by that lender. Some of the lenders may claim to have security interests in rental income received by the Debtors from their rental of the lenders' vehicle-collateral to the Debtors' customers. According to the Debtor, lenders that may have an interest in cash collateral include 1st Source Bank, AFC Cal, LLC, Hitachi Capital American Corp., Sumitomo Mitsui Finance and Leasing Co. Ltd., and United Leasing Co. Another creditor that may have a security interest in the cash collateral is the U.S. Small Business Administration. Other creditors that may have security interests are certain tax authorities that have filed proofs of claim as secured claims. To protect the Lenders against any decrease in value of their collateral, the Debtors propose to maintain a "Lender Adequate Protection Program" or continue making payments pursuant to prior agreements. The Lender Adequate Protection Program provides two forms of adequate protection. It pays the Lenders cash to compensate for the depreciation of vehicles in which they have an interest, pays interest on the full value of their secured claims, and pays the proceeds from any sale of their vehicle-collateral. Also, to the extent there is still any decrease in value of their cash collateral, the Lender Adequate Protection Program gives each Lender a replacement lien on all of the bankruptcy estate's assets, excluding avoiding power claims and recoveries, to the extent that the Debtors' use of such party's collateral results in a decrease in the value of such party's interest in cash collateral. The Debtor says the Lender Adequate Protection Program is consistent with the use of cash collateral that the Court has already approved and which the Debtors seek to extend by the Motion. To protect the SBA against any decrease in value of its cash collateral, the Debtors propose to maintain what the Debtors refer to as the "SBA Adequate Protection Program." Pursuant to the SBA Adequate Protection Program, the Debtors propose to make monthly payments to the SBA in the amount of $2,437, as required by the terms of the SBA's loan. Also, the Debtors propose to give the SBA a replacement lien on all of the bankruptcy estate's assets, excluding avoiding power claims and recoveries, to the extent that the Debtors' use of the SBA's cash collateral results in a decrease in the value of the SBA's interest in cash collateral. To protect the tax authorities against any decrease in value of their cash collateral, the Debtors propose what they refer to as the "Tax Authority Adequate Protection Program," which would grant the each of the tax authorities a replacement lien on all of the bankruptcy estate's assets, excluding avoiding power claims and recoveries, to the extent that the Debtors' use of such tax authority's cash collateral results in a decrease in the value of the tax authority's interest in cash collateral. The Debtors submit that the Lenders, the SBA, and the tax authorities are adequately protected in that (a) the use of cash collateral will fund the expenses of preserving, maintaining and operating the Debtors' business and assets, including the Lenders', the SBA's, and the tax authorities' collateral, and (b) based on the Debtors' projections and the proposed payments, the value of the Lenders' interest in cash collateral will not be diminished solely by such use, and the Lenders will be compensated in cash for the actual postpetition depreciation of their vehicle-collateral. A copy of the motion is available for free at https://bit.ly/3CQuwTv from PacerMonitor.com. About Airport Van Rental, Inc. Airport Van Rental -- https://www.airportvanrental.com/ -- is a van rental company offering short and long-term rentals for road trips, weekend journeys, moving, and any other group outings. Airport Van Rental and its affiliates filed their voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Lead Case No. 20-20876) on Dec. 11, 2020. Yazdan Irani, its president and chief executive officer, signed the petitions. At the time of filing, Airport Van Rental disclosed between $10 million and $50 million in both assets and liabilities. Judge Sheri Bluebond oversees the case. The Debtors tapped Danning, Gill, Israel & Krasnoff, LLP as their bankruptcy counsel, CSA Partners LLC as financial consultant, and Joel Glaser, APC as litigation counsel. Kevin S. Tierney is the Debtors' chief reorganization officer. ALDRICH PUMP: Asbestos Claimants' Panel Gets OK to Tap Consultant ----------------------------------------------------------------- The official committee of asbestos personal injury claimants appointed in the Chapter 11 cases of Aldrich Pump LLC and Murray Boiler LLC received approval from the U.S. Bankruptcy Court for the Western District of North Carolina to employ Legal Analysis Systems, Inc. as its asbestos consultant. The firm will render these services: (a) develop oversight methods and procedures to enable the committee to fulfill its responsibilities of reviewing and analyzing any proposed disclosure statement, plan, and other similar documents in this reorganization proceeding; (b) review and analysis of the Debtors' asbestos claims database and related information concerning the Aggregate Asbestos Claims and review and analysis of the resolution of various Aggregate Asbestos Claims; (c) estimate the present and future Aggregate Asbestos Liability; (d) perform quantitative analyses of alternative claims resolution procedures; (e) evaluate reports and opinions of experts and consultants retained by other parties-in-interest to the bankruptcy proceeding; (f) evaluate and analyze proposed proofs of claim, bar dates, discovery and other information and sources of information obtained in the bankruptcy case, and analyze data from proofs of claim and other information and forms concerning Aggregate Asbestos Claims; (g) perform quantitative analyses of other matters related to Aggregate Asbestos Claims as may be requested by the committee; and (h) provide testimony on such matters as is required by the committee. The hourly rates of the firm's professionals are as follows: Dr. Mark Peterson, J.D., Attorney/Social Psychologist $1000 Dr. Daniel Relles, Statistician $700 Dr. Andrew Sackett, J.D., Attorney/Social Scientist $625 Dr. Daniel Rourke, Statistician $575 Ms. Patricia Ebener, Survey Research Specialist $475 Mr. Cord Thomas, Data Systems Architect and Manager $450 Mr. Mark Totten, Research Programmer & Statistician $450 In addition, the firm will seek reimbursement for expenses incurred. Mark Peterson, a principal at Legal Analysis Systems, 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: Mark A. Peterson Legal Analysis Systems, Inc. 970 Calle Arroyo Thousand Oaks, CA 91360 Telephone: (805) 499-3572 About Aldrich Pump Aldrich Pump LLC and Murray Boiler LLC are U.S. subsidiaries of Trane Technologies, a publicly traded company. Ireland's Trane Technologies, formerly as Ingersoll Rand plc, is a global climate innovator that brings efficient and sustainable climate solutions to buildings, homes, and transportation. The North American headquarters of Trane Technologies are located in Davidson, North Carolina. Aldrich Pump and Murray Boiler sought Chapter 11 protection (Bankr. W.D.N.C. Lead Case No. 20-30608) on June 18, 2020. The Hon. Craig J. Whitley oversees the cases. In the petition signed by Allan Tananbaum, chief legal officer, the Debtor was estimated to have $100 million to $500 million in both assets and liabilities. The Debtors tapped Rayburn Cooper & Durham, P.A. and Jones Day as legal counsel; Bates White, LLC, Evert Weathersby Houff, and K&L Gates, LLP as special counsel; AlixPartners, LLP as financial advisor; and Kurtzman Carson Consultants, LLC as claims and noticing agent. The Office of the U.S. Trustee appointed a committee of asbestos personal injury claimants. The asbestos committee tapped Robinson & Cole, LLP and Caplin & Drysdale, Chartered as its bankruptcy counsel. The committee also selected FTI as its financial advisor and Legal Analysis Systems, Inc. as its asbestos consultant. On Oct. 14, 2020, the Court entered the order appointing Joseph W. Grier, III, as legal representative for future asbestos claimants (FCR). He tapped Orrick, Herrington & Sutcliffe LLP and Grier Wright Martinez, PA as counsel; Anderson Kill P.C., as special insurance counsel; and Ankura Consulting Group, LLC as asbestos claims consultant and financial advisor. ALEXANDRIA HOSPITALITY: Unsecureds to be Paid From Surplus Funds ---------------------------------------------------------------- Alexandria Hospitality Partners, L.L.C., submitted a Chapter 11 Disclosure Statement. The Debtor is a Louisiana Limited Liability Company and was first registered as such with the Louisiana Secretary of State on April 22, 2013. It was formed to purchase the hotel located at 2211 North MacArthur Drive, Alexandria, Louisiana. The property has been subject to burglaries and vandalism during the last 18 to 24 months. As a result, the Hotel suffered a decline in value. In addition, the furniture, fixtures and equipment located in the Hotel either have been stolen or damaged so that they are not worth what they were at the time liens were placed on them. Members of Alexandria Hospitality Partners, L.L.C. have been marketing the hotel for quite some time prior to the filing of this case. In addition, the assets of the estate consists of certain intangible assets in the form of trade names, specifically "Howard Johnson Hotel" with complimenting restaurant. An offer has been made by W J Belton Company, LLC [hereinafter sometimes referred to as "the prospective purchaser"] to purchase the immovable property and the movable property comprising the hotel as well as the 1.118 acre tract owned by Vine Capital, L.L.C., as well as all intangibles. The offer is for sum of $4,000,000.00. The last day for filing claims has elapsed and three (3) claims were filed. They are the City of Alexandria, as unsecured in the sum of $4,309.73, Ascentium Capital, LLC as secured for $83,500.00 and unsecured for $23,482.75, and Byline Bank as secured for $565,000.00, and unsecured for $3,354,625.96. The Debtor proposes to satisfy the secured portions of Ascentium Capital and Byline Bank from the proceeds of the sale of the property. The unsecured claims will receive a pro rata distribution from the surplus received from the sale. Class 6 consists of Unsecured claims that are undisputed -- (being the unsecured portions of the claims of Byline Bank, Ascentium Capital, and possibly the claim of the City of Alexandria, as well as the unsecured claims set forth in Schedule E/F). These will be paid from such funds as are available after payment of Classes 1-4, in three annual installments beginning one year after the Effective Date. Attorneys for the Debtor: THOMAS R. WILLSON 1330 JACKSON STREET ALEXANDRIA, LOUISIANA 71301 Tel: (318) 442-8658 Fax: (318) 442-9637 E-mail: rocky@rockywillsonlaw.com A copy of the Disclosure Statement dated Nov. 17, 2021, is available at https://bit.ly/3cqWjim from PacerMonitor.com. About Alexandria Hospitality After the filing of this case the Members of AHP have pursued the appeal of the Judgment granted in favor of Byline Bank in the Byline Bank lawsuit. In addition, the debtor noticed for hearing the proposed sale of the assets under Section 363 to W. J. Belton Company, L.L.C. . That action remains on the docket of the court and is currently set for hearing on December 15, 2021. ALLIED ESPORTS: Posts $74.3 Million Net Income in Third Quarter --------------------------------------------------------------- Allied Esports Entertainment Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing net income of $74.30 million on $1.69 million of total revenues for the three months ended Sept. 30, 2021, compared to a net loss of $6.55 million on $596,883 of total revenues for the three months ended Sept. 30, 2020. For the nine months ended Sept. 30, 2021, the Company reported net income of $68.03 million on $3.01 million compared to a net loss of $26.21 million on $2.28 million of total revenues for the same period during the prior year. As of Sept. 30, 2021, the Company had $109.10 million in total assets, $5.48 million in total liabilities, and $103.62 million in total stockholders' equity. As of Sept. 30, 2021, the Company had cash of approximately $95.2 million (not including $5 million of restricted cash) and working capital from continuing operations of approximately $98.1 million. For the nine months ended Sept. 30, 2021 and 2020, the Company incurred a net loss from continuing operations of approximately $11.3 million and $26.8 million, respectively, and had cash used in continuing operations of approximately $(7.8) million and $(4.6) million, respectively. Further, convertible debt and bridge note obligations in the aggregate gross principal amount of $3.4 million were scheduled to mature on Feb. 23, 2022 but were paid upon the closing of the sale of WPT on July 12, 2021. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1708341/000121390021061191/f10q0921_alliedesports.htm Allied Esports Headquartered in Irvine, California, Allied Esports Entertainment, Inc. -- http://www.alliedesportsent.com-- operates a public esports and entertainment company, consisting of the Allied Esports and World Poker Tour businesses. Allied Esports reported a net loss of $45.06 million for the year ended Dec. 31, 2020, compared to a net loss of $16.74 million for the year ended Dec. 31, 2019. Melville, New York-based Marcum LLP, the Company's auditor since 2018, issued a "going concern" qualification in its report dated April 12, 2021, citing that the Company has a working capital deficiency from continuing operations, 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. ALROSE ALLEGRIA: Trustee Submits Plan of Liquidation ---------------------------------------------------- Kenneth P. Silverman, Esq., the chapter 11 trustee of the bankruptcy estates of Alrose Allegria LLC and Alrose King David, LLC, proposed a plan of liquidation under chapter 11 of title 11, United States Code for Alrose Allegria, LLC and Alrose King David, LLC. Holders of Class 3 General Unsecured Claims will receive their pro rata share of the Unsecured Creditor Funds on the Effective Date. Class 3 is impaired. "Unsecured Creditor Funds" means the sum of $100,000.00 Dollars which shall be set aside from payments otherwise to be made with respect to the Rosenberg Taxing Authorities for the payment of Class 3 Claims. The payments due under the Plan will be paid from the Creditor Trust Proceeds. Attorneys for Trustee Kenneth P. Silverman, Esq.: Ronald J. Friedman Brian Powers Haley L. Trust SILVERMANACAMPORA LLP 100 Jericho Quadrangle, Suite 300 Jericho, New York 11753 Tel: (516) 479-6300 A copy of the Disclosure Statement dated Nov. 17, 2021, is available at https://bit.ly/3oEJRS5 from PacerMonitor.com. About Alrose Allegria Alrose Allegria LLC operated the Allegria Hotel, a nine-story, 143-key mid-rise full-service boutique hotel located on the beachfront at 80 W. Broadway, Long Beach, New York. The Allegria Hotel property contained approximately 136,000 gross square feet and included a ballroom, meeting space, fitness center, restaurant, lounge and piano bar. Alrose King David LLC was the owner of real property, including the building, fixtures and improvements thereon, located at 80 W. Broadway, Long Beach, New York, on which the Allegria Hotel was located. Alrose King David LLC is a special entity established by the Alrose Group to own the 143-room, beachfront hotel property called the Allegria Hotel & Spa in Long Beach, Long Island. In July 2011, a unit of the Alrose Group, Alrose King David LLC filed for Chapter 11 bankruptcy protection (Bankr. E.D.N.Y. Case No. 11-75361) in Brooklyn. Alrose King David won approval of its reorganization plan in March 2012. Alrose Allegria LLC sought Chapter 11 protection (Bankr. S.D.N.Y., Case No. 15-11760) in Manhattan on July 2, 2015, estimating $10 million to $50 million in assets and $1 million to $10 million in debt. Allen Rosenberg, managing member of Alrose Allegria and president of the Alrose Group, signed the bankruptcy petition. The Debtor tapped Richard J. Bernard, Esq., at Foley & Lardner LLP, in New York, as counsel. Alrose King David again filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case No. 16-10536) on March 4, 2016. The petition was signed by Allen Rosenberg as managing member. The Debtor estimated both assets and liabilities in the range of $10 million to $50 million. Foley & Lardner LLP represents the Debtor as counsel. AVAILA BIO: Seeks to Employ Muldoon & Muldoon as Special Counsel ---------------------------------------------------------------- Availa Bio, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Nevada to hire Muldoon & Muldoon, LLC as special counsel. The Debtor requires a special counsel to assist in the negotiation and litigation with The Zhabilov Trust and Enzolytics, Inc. concerning its Patent License Agreement for U.S. Patent No. 8,309,072. John Muldoon, Esq., the firm's attorney who will be providing the services, will be paid an hourly fee of $400. The Debtor paid a total of $10,000 to the firm as a retainer fee. Mr. Muldoon disclosed in a court filing that he is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: John Muldoon, Esq. Muldoon & Muldoon, LLC 111 West Washington Street Suite 1500 Chicago, IL 60602 Tel: 312-739-3550 About Availa Bio Inc. Availa Bio, Inc. is a bioscience company in Ridgefield, N.J., which through research and development is dedicated to developing cutting edge products in the markets of pain relief, pharmaceutical, nutraceutical, cosmetics and hemp. Availa Bio filed a petition for Chapter 11 protection (Bankr. D. Nev. Case No. 21-14909) on Oct. 12, 2021, listing up to $50,000 in assets and up to $10 million in liabilities. Jim Morrison, president and chief executive officer, signed the petition. Judge Natalie M. Cox oversees the case. The Debtor tapped Fox Rothschild LLP as legal counsel, Muldoon & Muldoon LLC as special counsel, and Riveron RTS LLC as financial advisor. AVAILA BIO: Seeks to Employ Riveron RTS as Financial Advisor ------------------------------------------------------------ Availa Bio, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Nevada to hire Riveron RTS, LLC as its financial advisor. The firm's services include: (a) evaluating the short-term cash flows and financing requirements of the Debtor as it relates to its Chapter 11 proceedings; (b) assisting the Debtor in its Chapter 11 proceedings, including the preparation and oversight of its financial statements and bankruptcy schedules, monthly operating reports, first-day pleadings, and other information required in the bankruptcy; (c) assisting the Debtor in obtaining court approval to use cash collateral or other financing; (d) assisting the Debtor with respect to its bankruptcy-related claims management and reconciliation process; (e) assisting the Debtor in the development of a plan of reorganization; (f) assisting the management, where appropriate, in communications and negotiations with other constituents critical to the successful execution of the Debtor's bankruptcy proceedings; (g) working with the Debtor, as appropriate, and its retained investment banking professionals, to assess any offer made pursuant to bankruptcy court-approved sale procedures; (h) assisting the Debtor in communications with key constituents, as requested, including lenders, equity holders, customers and other stakeholders; (h) assisting the management, where appropriate, in communications and negotiations with stakeholders critical to the successful execution of the Debtor's near-term business plan; and (i) other financial advisory services. The firm will be paid at hourly rates ranging from $195 to $710 for restructuring services and will be reimbursed for out-of-pocket expenses incurred. The Debtor paid $15,000 to the firm as a retainer fee. Jeffrey Perea, managing director at Riveron RTS, disclosed in a court filing that he is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Jeffrey C. Perea Riveron RTS, LLC 324 South Beverly Drive #402 Los Angeles, CA 90212 Tel: 213.416.6205 Email: Jeffrey.Perea@riveron.com About Availa Bio Inc. Availa Bio, Inc. is a bioscience company in Ridgefield, N.J., which through research and development is dedicated to developing cutting edge products in the markets of pain relief, pharmaceutical, nutraceutical, cosmetics and hemp. Availa Bio filed a petition for Chapter 11 protection (Bankr. D. Nev. Case No. 21-14909) on Oct. 12, 2021, listing up to $50,000 in assets and up to $10 million in liabilities. Jim Morrison, president and chief executive officer, signed the petition. Judge Natalie M. Cox oversees the case. The Debtor tapped Fox Rothschild LLP as legal counsel, Muldoon & Muldoon LLC as special counsel, and Riveron RTS LLC as financial advisor. B&G FOODS: S&P Alters Outlook to Negative, Affirms 'B+' ICR ----------------------------------------------------------- S&P Global Ratings revised its outlook on Parsippany, N.J.-based food brands company B&G Foods Inc. to negative from stable and affirmed its 'B+' issuer credit rating to reflect elevated leverage and that it could fail to generate enough EBITDA growth and free operating cash flow (FOCF) to materially reduce leverage. The negative outlook reflects the potential for a lower rating over the next 12 months if S&P expects the company to sustain leverage of more than 5.5x. This could occur if it underperforms our forecast or does not repay debt. The outlook revision to negative reflects B&G's elevated leverage due to lapping a strong 2020, high input cost inflation, supply chain challenges, and higher working capital borrowings. During the third quarter (ended Oct. 2, 2021), revenues increased 3.9% largely due to the contribution of its Crisco acquisition. Organic net sales declined 10.5% versus the same quarter in 2020, which benefited from pantry loading. Organic revenues increased 9% from 2019, demonstrating still elevated at-home consumption. Adjusted EBITDA declined about 15% during the quarter due to the reduction in base business volumes coupled with increases in input costs, factory labor and other costs, transportation and warehouse spending, and one fewer reporting week. Inflation at Crisco was higher than in the rest of the company's portfolio due to increases in soybean and canola oil. B&G also substantially increased working capital use during the quarter to about $118 million from $90 million in 2020 due to higher inventory investments. Revolver borrowings rose to $305 million from $235 million in 2020. The company increased its Green Giant inventory as it completed its pack season. Last year, B&G put Green Giant products on allocation given strong demand. As a result, it increased its pack for the 2021 season. Therefore, S&P Global Ratings-adjusted pro forma leverage was over 7x as of the 12 months ended Oct. 2, 2021. The company implemented large price increases, but input costs rose faster. B&G also lowered its trade spending and initiated cost-saving actions to help mitigate the impact, but its margins were still hurt due to the lag between costs rising and these actions taking effect. The company has signaled its willingness to use equity to reduce leverage. Shortly after it reported second-quarter results, B&G filed a prospectus supplement with the U.S. Securities and Exchange Commission, under which it may offer up to 7.5 million shares of common stock from time to time through an at-the-market equity program. If used in full, the program would generate over $200 million of proceeds. The company indicated it would use proceeds for general corporate purposes, which could include long-term debt repayment or acquisitions. S&P said, "We believe the filing indicates B&G's intention to use equity to repay debt and maintain ratings. It would reduce leverage by more than 0.5x, accelerating the path back to an appropriate leverage range for the 'B+' rating. However, we could consider a downgrade if B&G doesn't proactively repay debt or inflation worsens, leading us to believe it could sustain leverage above 5.5x." Leverage will remain high over the long term due to B&G's aggressive acquisition strategy. Historically, the company has increased leverage to fund frequent acquisitions but quickly restored it to about 5.5x or below through profit growth and debt repayment. B&G has also issued equity to help restore credit metrics after significant past acquisitions, which we expect it to continue to aggressively pursue. Nevertheless, S&P expects the company will either deleverage before making another acquisition or use a combination of debt and equity such that it manages leverage in the 5x-5.5x range over the intermediate term. The negative outlook reflects that S&P could lower the ratings over the next 12 months if leverage remains above 5.5x. S&P believes this could occur if: -- B&G's margin does not improve because inflation accelerates and the company cannot offset it with pricing actions and cost savings; -- Demand weakens as COVID-19 pandemic-related restrictions ease and consumers significantly reduce at-home food consumption; -- Covenant cushion remains tight or we believe the company could breach its leverage covenant without a waiver or amendment; or -- The company does not proactively repay debt and instead pursues additional large, debt-financed acquisitions, or shareholder returns. S&P could revise the outlook back to stable if it believes B&G will improve and sustain leverage below 5.5x within the next 12 months. S&P believes this could occur if B&G: -- Repays debt with equity issuances; -- Takes actions to mitigate the inflationary pressures and improve EBITDA; and -- Does not undergo additional large, debt-financed acquisitions while leverage is elevated. BEAVEX HOLDING: Beldner Bid to Withdraw as Counsel OK'd ------------------------------------------------------- On September 14, 2018, William Krivolavek, Kosal Pech, and Patricia Gutierrez initiated a wage-and-hour action in the Superior Court of the State of California for the County of Fresno against BeavEx Incorporated, which removed the action to the United States District Court for the Eastern District of California, on the basis of diversity jurisdiction, 28 U.S.C. Section 1332. On September 14, 2021, Sabrina A. Beldner, Esq., of McGuireWoods LLP filed a motion to withdraw as counsel for the Defendant. No oppositions to the motion were filed. After having reviewed the motion and all supporting material, the matter was deemed suitable for decision without oral argument pursuant to Local Rule 230(g), and the hearing set for October 20 was vacated. Magistrate Judge Sheila K. Oberto granted Ms. Beldner's motion to withdraw noting that granting withdrawal will not cause any greater delay to this case, which has been stayed for over two years and eight months -- and remains stayed -- due to Defendant's ongoing bankruptcy proceedings. A full-text copy of the Order dated November 15, 2021, is available at https://tinyurl.com/j69bs3mw from Leagle.com. The case is WILLIAM KRIVOLAVEK, et al., Plaintiffs, v. BEAVEX INCORPORATED, Defendant, Case No. 1:18-cv-01416-NONE-SKO (E.D. Calif.). About Beavex Holding Corp Founded in 1989, BeavEx Incorporated and its affiliates -- https://beavex.com/ -- are providers of ground and air transportation, warehousing and courier services, providing "last mile" delivery services, often consisting of controlled substances or otherwise highly sensitive materials to over 800 customers nationwide. The Company is headquartered in Atlanta, Georgia. BeavEx Holding Corporation and four of its affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 19-10316) on Feb. 18, 2019. In the petitions signed by CRO Donald Van der Wiel, BeavEx estimated $10 million to $50 million in assets and $50 million to $100 million in estimated liabilities. The Hon. Laurie Selber Silverstein oversees the cases. Young Conaway Stargatt & Taylor, LLP serves as counsel to the Debtors. Donald Van der Wiel of S3 Advisors, LLC, is serving as the Debtors' CRO. Stretto acts as claims and noticing agent. BLUE STAR: Incurs $162K Net Loss in Third Quarter ------------------------------------------------- Blue Star Foods Corp. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $161,788 on $3.73 million of net revenue for the three months ended Sept. 30, 2021, compared to net income of $538 on $3.98 million of net revenue for the three months ended Sept. 30, 2020. For the nine months ended Sept. 30, 2021, the Company reported a net loss of $1.08 million on $8.34 million of net revenue compared to a net loss of $4.34 million on $11.42 million of net revenue for the same period during the prior year. As of Sept. 30, 2021, the Company had $11.91 million in total assets, $6.36 million in total liabilities, and $5.55 million in total stockholders' equity. The Company had cash of $203,967 as of Sept. 30, 2021. At Sept. 30, 2021, the Company had a working capital deficit of $825,877, including $1,150,000 in stockholder loans that are subordinated to its working capital line of credit, and the Company's primary sources of liquidity consisted of inventory of $1,910,535 and accounts receivable of $754,778. The Company has historically financed its operations through the cash flow generated from operations, capital investment, notes payable and a working capital line of credit. "The COVID-19 pandemic has caused significant disruptions to the global financial markets. The full impact of the COVID-19 outbreak continues to evolve, is highly uncertain and subject to change. The Company is not able to estimate the possible continuing effects of the COVID-19 outbreak on its operations or financial condition for the next 12 months," stated Blue Star in the filing. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/0001730773/000149315221029576/form10-q.htm About Blue Star Foods Blue Star Foods Corp. is a sustainable seafood company that processes, packages and sells refrigerated pasteurized Blue Crab meat, and other premium seafood products. Its products are currently sold in the United States, Mexico, Canada, the Caribbean, the United Kingdom, France, the Middle East, Singapore and Hong Kong. The company headquarters is in Miami, Florida (United States), and its corporate website is: http://www.bluestarfoods.com Blue Star reported a net loss of $4.44 million for the year ended Dec. 31, 2020, a net loss of $5.02 million for the year ended Dec. 31, 2019, and a net loss of $2.28 million for the 12 months ended Dec. 31, 2018. As of March 31, 2021, the Company had $6.05 million in total assets, $6.42 million in total liabilities, and a total stockholders' deficit of $371,261. Houston, Texas-based MaloneBailey, LLP, the Company's auditor since 2014, issued a "going concern" qualification in its report dated April 15, 2021, citing that the Company has suffered recurring losses from operations and has a net capital deficiency that raises substantial doubt about its ability to continue as a going concern. BOY SCOUTS: To Lobby on Bill to Curb Bankruptcy Tactics ------------------------------------------------------- Caitlin Oprysko of Politico reports that the Boy Scouts of America will lobby on bill, Nondebtor Release Prohibition Act, to curb tactics used in bankruptcy proceedings. The Boy Scouts of America has hired former Alabama Democratic Rep. Bud Cramer and Jefferies Murray of 535 Group to lobby on bankruptcy reform legislation aimed at curtailing a settlement practice that would release troop sponsors, including tens of thousands of churches and civic groups; local councils; and the national Boy Scouts organization from liability for sexual abuse claims lodged against the organization. The House Judiciary Committee approved the Nondebtor Release Prohibition Act this month. The bill targets what Democrats describe as a loophole in bankruptcy code that "helped the Sackler family, the people and institutions that enabled Larry Nassar, and others like them escape accountability for wrongdoing through bankruptcy proceedings." The bill would restrict the use of third-party, or nondebtor, releases in bankruptcy proceedings, unless express consent is given by the creditors. The practice, which has split federal courts, shields affiliates, officers or other stakeholders who may be accused of wrongdoing but who have not filed for bankruptcy protections themselves — in exchange for settlement payments and, in the Boy Scouts' case, signing over some insurance rights. The tactic has been used in the bankruptcy settlements of several high profile cases in recent years, including those of opioid maker Purdue Pharma, USA Gymnastics and church dioceses. — The bill would also place restrictions on bankruptcy courts’ ability to pause lawsuits against third parties while a repayment plan is negotiated, and allow courts to dismiss Chapter 11 bankruptcy reorganization cases if a debtor was formed during a divisional merger that took place in the last decade. Critics of the bill, which was approved on party lines, argue the legislation could disrupt bankruptcy proceedings in favor of lengthy litigation that may result in less of a recovery or no resolution at all, while empowering small numbers of holdout creditors. "The Boy Scouts of America (BSA) engaged 535 Group to help explain our proposed Plan of Reorganization to lawmakers and demonstrate how the current structure is the best path forward for Scouting and for survivors, with this Plan poised to establish the largest sexual abuse compensation fund in the history of the United States," a spokesperson told PI, adding that the organization has "spent nearly two years working through a financial restructuring to come to a resolution that will equitably compensate survivors of past abuse and ensure that Scouting’s mission continues." The Associated Press reported this fall that ballots to approve the Boy Scouts' reorganization plan and proposed $1.6 billion trust fund are being sent to the more than 82,000 men who say they were molested as scouts. 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. BROADBAND PROPERTIES: Taps Glankler Brown as Bankruptcy Counsel --------------------------------------------------------------- Broadband Properties Corp. seeks approval from the U.S. Bankruptcy Court for the Western District of Tennessee to hire Glankler Brown, PLLC to serve as legal counsel in its Chapter 11 case. The firm's services include: (a) preparing the bankruptcy schedules, statement of affairs, reports and legal papers required in the administration of the Debtor's reorganization proceeding; (b) formulating and submitting to creditors a plan of reorganization and motions to approve the sale of the Debtor's assets; and (c) rendering legal advice on various matters arising during the course of the Debtor's bankruptcy case. The firm's hourly rates are as follows: Michael P. Coury, Esq. $450 per hour Ricky L. Hutchens, Esq. $275 per hour Jeanie Bouck $200 per hour Michael Coury, Esq., the firm's attorney who will be providing the services, disclosed in a court filing that he is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Michael P. Coury, Esq. Glankler Brown, PLLC Suite 400, 6000 Poplar Avenue Memphis, TN 38119 Tel: 901-525-1322 Fax: 901-525-2389 Email: mcoury@glankler.com About Broadband Properties Corp. Broadband Properties Corp. filed a petition for Chapter 11 protection (Bankr. W.D. Tenn. Case No. 21-10951) on Oct. 20, 2021, listing up to $50,000 in assets and up to $500,000 in liabilities. Thomas P. Farrell, president, signed the petition. Judge Jimmy L. Croom oversees the case. The Debtor tapped Michael P. Coury, Esq., at Glankler Brown, PLLC as legal counsel. BRODIE HOLDINGS: Seeks to Employ Larry Strauss as Accountant ------------------------------------------------------------ Brodie Holdings, LLC seeks approval from the U.S. Bankruptcy Court for the District of Maryland to hire Larry Strauss, Esq., CPA & Associates, Inc. to prepare its tax returns and provide general accounting services. The hourly rates for the firm's services range from $145 to $450. Larry Strauss, Esq., president of the firm, disclosed in a court filing that he is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Larry Strauss, Esq. Larry Strauss, Esq., CPA & Associates, Inc. 2310 Smith Avenue Baltimore, MD 21209 Tel: 410-484-2142 Fax: 443-352-3282 Email: Larry@LarryStraussESQCPA.com About Brodie Holdings Chestertown, Md.-based Brodie Holdings, LLC filed a petition for Chapter 11 protection (Bankr. D. Md. Case No. 21-16309) on Oct. 5, 2021, listing as much as $10 million in both assets and liabilities. Harry Kaiser, managing member, signed the petition. Judge Thomas J. Catliota oversees the case. The Debtor tapped Tate M. Russack, Esq., at RLC, PA Lawyers & Consultants as legal counsel and Larry Strauss, Esq., CPA and Associates, Inc. as accountant. BUCKINGHAM HEIGHTS: Seeks to Hire 'Ordinary Course' Professionals ----------------------------------------------------------------- Buckingham Heights Business Park (a California Limited Partnership) seeks approval from the U.S. Bankruptcy Court for the Central District of California to employ professionals used in the ordinary course of its business. The "ordinary course professionals" include: OCPs Services Provided Hattox Design Group LLC Design Architect Holthouse Carlin Van Trigt LLP Accounting Auditor JRN Civil Engineers Inc Architect Raines Feldman LLP Subleasing Counsel Richard L. Seide, APC Collections Counsel Shlemmer Algaze Associates Space Planning Architect The Spiegel Law Firm Inc. Collections Counsel The Debtor estimates that it will not pay more than $5,000 per month per OCP. About Buckingham Heights Business Park (a California Limited Partnership) Culver City, Calif.-based Buckingham Heights Business Park (a California Limited Partnership) filed a petition for Chapter 11 protection (Bankr. C.D. Calif. Case No. 21-17060) on Sept. 8, 2021, listing up to $50 million in assets and up to $500,000 in liabilities. Judge Sheri Bluebond oversees the case. Sheppard, Mullin, Richter & Hampton, LLP and KB&T Tax & Consulting, Inc. serve as the Debtor's legal counsel and accountant, respectively. BVS CONSTRUCTION: 5th Cir. Junks Appeal Over Prosperity Bank Claim ------------------------------------------------------------------ BVS Construction, Inc., filed a voluntary Chapter 11 bankruptcy petition on January 2, 2019. In the ensuing proceeding, one of BVS's secured creditors, Prosperity Bank, filed a proof of claim for $1,333,695.84. BVS objected, arguing that Prosperity's claim was for the wrong amount. The bankruptcy court held a hearing and concluded that the doctrines of res judicata, judicial estoppel, and judicial admission barred BVS's claim objection on the ground that it was ultimately based on the alleged impropriety of Prosperity's claim against BVS's from its prior bankruptcy in 2015. The district court affirmed the bankruptcy court's order overruling BVS's claim objection and allowing Prosperity's claim. BVS timely appealed. The United States Court of Appeals for the Fifth Circuit affirmed. The Fifth Circuit held that BVS's claim objection is barred by res judicata because (a) Prosperity's claim in the second bankruptcy -- as it relates to whether Prosperity's claim in the 2015 Plan was for the right amount -- arises out of the same transaction that was the subject of the 2015 Plan; and (b) BVS could have made this argument in the first bankruptcy, but it did not. The effect of this holding is that BVS is bound, on res judicata grounds, by Prosperity's claim in the 2015 Plan. The record reflects that BVS's claim objection in the second bankruptcy depends entirely on, and necessarily arises out of, the subject matter that formed the basis of Prosperity's claim in the first bankruptcy -- specifically, the amounts BVS owed to Prosperity on the underlying promissory notes, the Fifth Circuit pointed out. In fact, the basis of Prosperity's claim in the second bankruptcy is identical to the basis of its claim in the first bankruptcy: that it (still) has a claim against BVS for the amounts BVS owed it on certain promissory notes. The only reason Prosperity's claim amount is any different in the second bankruptcy than the first is because Prosperity reduced its claim from the first bankruptcy by all the amounts it received from BVS prior to the petition date of the second bankruptcy. Prosperity's ledger, admitted into evidence in the bankruptcy court's hearing, reflects this fact. Thus, following the reasoning in Eubanks v. F.D.I.C., 977 F.2d 166, 170 (5th Cir. 1992), and In re Howe, 913 F.2d 1138, 1144 (5th Cir. 1990), BVS's claim objection in the second bankruptcy arises out of the same transaction that was the subject of the 2015 Plan. A full-text copy of the decision dated November 15, 2021, is available at https://tinyurl.com/vppwvdy3 from Leagle.com. About BVS Construction B.V.S. Construction Inc., a company based in Bryan, Texas, filed a Chapter 11 petition (Bankr. W.D. Tex. Case No. 19-60004) on Jan. 2, 2018. In the petition signed by Elaine Palasota, president, the Debtor estimated $1 million to $10 million in assets and $10 million to $50 million in liabilities. The Hon. Ronald B. King oversees the case. Eric A. Liepins, Esq., at Eric A. Liepins, P.A., is the Debtor's bankruptcy counsel. BY CHLOE: Judge Sides With Chef Chloe Coscarelli in Brand Row ------------------------------------------------------------- Rick Archer of Law360 reports that a New York federal judge Wednesday, Nov. 24, 2021, reaffirmed a year-and-a-half-old arbitration decision that celebrity chef Chloe Coscarelli is entitled to a half share of her "By Chloe" restaurant chain now that the business has emerged from a COVID-caused bankruptcy. U.S. District Judge Jesse Furman also found in his order that the restaurant chain had breached its contract with Coscarelli by using her "By Chloe" brand on packaged food, but that it had been within its rights to continue using the name for the restaurants themselves. Coscarelli, who rose to fame as the first vegan chef to win on the Food Network program. About By Chloe By Chloe is a fast-casual vegan restaurant chain based in New York City. BC Hospitality Group Inc. and its affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-13103) on Dec. 14, 2020. BC Hospitality was estimated to have assets of $10 million to $50 million and liabilities of $1 million to $10 million. YOUNG CONAWAY STARGATT & TAYLOR, LLP, is the Debtors' counsel. ANKURA CONSULTING GROUP, LLC, is the financial advisor. CAMBRIAN HOLDING: Diversified Midsteam Bid for Summary Ruling OK'd ------------------------------------------------------------------ The Plaintiff commenced the adversary proceeding captioned DIVERSIFIED MIDSTREAM LLC Plaintiff, v. PRISTINE CLEAN ENERGY LLC AND VIRGIE CLEAN MINING LLC, Defendants, Case No. 19-51200, Adv. No. 21-5091 (Bankr. E.D. Ky.), based on a dispute involving a Pipeline Relocation Agreement dated December 5, 2008, between Equitable Gathering, LLC, and TECO Coal Corporation. The interests of Equitable Gathering were transferred to the Plaintiff. TECO Coal Corp. became TECO Coal, LLC, a Kentucky limited liability company, and the membership interests were transferred to Cambrian Coal. TECO Coal, LLC, then changed its name to PLM Holding Company, LLC, one of the Debtors in the consolidated bankruptcy cases. Count I of the Complaint seeks a declaration that the Contract was rejected under Section 365(a) of the Bankruptcy Code and not purchased in the sale. Count II seeks a declaration that the Contract is not a purchased asset because PLM Holding is not party to the relevant transfer documents. If the Contract is deemed a purchased asset, Counts III and IV seek a declaratory judgment that the amounts due to the Plaintiff under the Contract are assumed liabilities and the Defendants breached the Contract. The Plaintiff filed a motion for summary judgment seeking summary judgment on all counts. The Defendants did not respond to the Motion and did not present any evidence to dispute the facts recited by the Plaintiff in the Complaint and affidavit of Eric Conley or file any exhibits for a trial. According to the Court, an independent review of the record in the main case and the documents involved does not contradict any of the assertions made by the Plaintiff. A court may consider the undisputed facts and grant summary judgment if the motion and supporting materials show the request has merit and the opposing party fails to refute the facts presented or provide support for contrary proof. According to the Court, the Contract is not a purchased asset because PLM Holding is not a party to the asset purchase agreement. The Sale Order approved a General Assignment and Assumption Agreement and Bill of Sale dated September 22, 2019, between Pristine Clean Energy, LLC, and Premier Elkhorn Coal, LLC, Cambrian Coal LLC, Pike-Letcher Land LLC, S.T. & T. Leasing, Inc., C.W. Augering, Inc. and T.C. Leasing Inc. PLM Holding is not a party to the Pristine APA and the agreement does not reference, attach, or allude to the Contract. The Court also held that the other sale documents and record do not give any indication that PLM Holding transferred the Contract or any other assets to the Defendants. No arguments suggest any contract term, other agreement, or filing in the record affects this conclusion. Therefore, the Plaintiff is entitled to summary judgment on Count II, the Court held. Counts I, III, and IV are moot, the Court said, thus it is unnecessary to decide whether the Contract is an executory contract that was rejected under Count I if PLM Holding is not a party to the Pristine APA. Likewise, Counts III and IV depend on a conclusion that the Contract is a purchased asset, and it is not. Accordingly, the Court granted the Plaintiff's Motion for Summary Judgment as to Count II. A full-text copy of the Memorandum Opinion dated November 15, 2021, is available at https://tinyurl.com/mcw2sksz from Leagle.com. About Cambrian Holding Belcher, Kentucky-based Cambrian Holding Company, Inc., and its subsidiaries produce and process metallurgical coal and thermal coal for use by utility providers and industrial companies located primarily in the eastern United States and Canada. The company began operations in 1991 and, over time, acquired various mines and mining-related assets from major coal corporations. Cambrian Holding Company and 18 of its affiliates each filed a petition seeking relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Ky. Lead Case No. 19-51200) on June 16, 2019. At the time of the filing, Cambrian Holding Company had estimated assets and liabilities of less than $50,000. Judge Gregory R. Schaaf oversees the cases. The Debtors tapped Frost Brown Todd, LLC as bankruptcy counsel; Whiteford, Taylor & Preston, LLP as litigation counsel; Jefferies, LLC as investment banker; and FTI Consulting, Inc., as financial advisor. Epiq Corporate Restructuring, LLC, is the notice, claims and solicitation agent. The Office of the U.S. Trustee appointed an official committee of unsecured creditors, which tapped Foley & Lardner, LLP as legal counsel; Barber Law PLLC as local counsel; and B. Riley FBR, Inc. as financial advisor. CARNIVAL CORP: S&P Affirms 'B' Issuer-Credit Rating, Outlook Neg. ----------------------------------------------------------------- S&P Global Ratings affirmed all ratings on global cruise operator Carnival Corp., including its 'B' issuer-credit rating on the company. S&P said, "The negative outlook reflects our forecast for adjusted credit measures to remain very weak through 2022 and some uncertainty as to Carnival's ability to materially improve credit measures in 2023. "We believe demand tailwinds and a measured capacity ramp up will support positive EBITDA by the second half of 2022 and a material improvement in adjusted credit measures to more sustainable levels in 2023.We expect EBITDA in the second half of fiscal 2022 (Carnival's fiscal year ends Nov. 30) to be positive, albeit about 20%-30% below the second half of 2019, following continued negative EBITDA through most of the first half of 2022 as Carnival brings the remainder of its fleet back online. We assume that by the second half of 2022 capacity will be at or modestly above levels in the second half of 2019 due to new ship deliveries offsetting older capacity disposed of in 2020 and 2021. Carnival took delivery of three large ships in 2021 and expects to take delivery of five ships in 2022, one of which is a smaller Seabourn-branded ship. We assume that in the second half of 2022 occupancy recovers to about 100% compared with about 109%, on average, in the second half of 2019. We assume occupancy does not increase above 100% in 2022 because we assume some social distancing measures or capacity limitations may remain in place across some of Carnival's itineraries. Occupancy above 100% means there are more than two people in some cabins, which is typical for families with kids. Further, we assume that by the second half of 2022 net cruise revenue (NCR) per passenger cruise day (PCD) will be around levels in the second half of 2019 based on current pricing trends. "Carnival has reported that cumulative advance bookings for the second half of 2022 are ahead of 2019. We believe pent-up leisure travel demand for cruises is supported by the strong recovery in theme parks and leisure bookings at hotels experienced this summer and a significant number of repeat cruise passengers, which typically represent about 66% of annual cruise passengers. Further, we believe customers are booking cruises for the second half of 2022 and in 2023 versus booking for the end of 2021 and early 2022 because, in our view, customers believe the global travel market will stabilize by next summer. We believe changing regulations and restrictions in the global travel market over the past year, virus variants, and regional spikes in virus cases likely drove some consumers to push their travel plans into next year and 2023. "We believe demand for 2023 cruises, a modest capacity increase, our assumption that occupancy increases slightly above 100%, and NCR per PCD increases slightly above 2019 levels will drive significant EBITDA growth in 2023, relative to 2022, and a material improvement in adjusted credit measures to more sustainable levels. We believe it will probably be sometime in 2023 until Carnival can improve leverage below our 7.5x downgrade threshold at the current 'B' rating on a trailing 12-month basis, but it could achieve a run-rate level of EBITDA in the second half of 2022 that would put it on pace to achieve credit measures in 2023 in line with the rating. "We believe regulatory risks that would limit cruise operators' ability to ramp up operations in the U.S., the largest global cruise market, are decreasing.The Centers for Disease Control and Prevention (CDC) set an expiration date of Jan. 15, 2022, for its conditional sailing order (CSO). The CSO applies to ships operating in U.S. waters and outlines requirements for ships to demonstrate COVID-19 mitigation plans, run simulated voyages, and demonstrate agreements with ports and local health authorities, among other requirements. The largest global cruise operators currently require essentially all guests and crew onboard voyages in U.S. waters to be fully vaccinated. We believe the CDC's decision to set an expiration date to mandatorily comply with the CSO reflects the lack of widespread COVID-19 outbreaks on cruise ships since cruise ships resumed sailing in 2021 after the CDC's no-sail order was lifted in October 2020, and widespread availability of vaccines in many of Carnival's core markets, including in the U.S., where just under 60% of Americans are vaccinated. Therefore, we believe it is unlikely the CDC would fully restrict cruise ships from operating in U.S. waters as it did at the outset of the pandemic. Guests from North America historically accounted for about 55% of Carnival's total revenue. "A gradual capacity ramp up should increase supply over time and get absorbed by improving cruise demand, particularly in the next few quarters as some capacity restrictions and limitations on itinerary offerings may remain.Carnival expects to have 61% of its capacity in operation by Nov. 30, 2021, and its full fleet in service by spring 2022. We assume that in 2023 capacity will exceed 2019 given the delivery of three ships in fiscal 2021, five in 2022, and three in 2023, which should offset the 19 older ships Carnival disposed of in 2020 and 2021. New ships typically have more capacity than older ships and command higher pricing. "We forecast occupancy to continue to increase on Carnival's ships over the next few quarters as capacity limitations ease and demand continues to improve. Carnival reported total occupancy of 54% in the third quarter of 2021, which increased during the quarter to 59% in August from 39% in June. Capacity in the third quarter was constrained in part because of vaccination requirements for many North American sailings that effectively eliminated the ability for families with children under 12 to cruise, capacity caps for sailings in the U.K., and social distancing requirements for many of Carnival's European sailings. We assume occupancy increases to about 100% by the third quarter of 2022 given the recent vaccine approval in the U.S. for children ages five to 11, the lifting of capacity caps in the UK, and the implementation of vaccine requirements on some European cruises, which would reduce social distancing requirements that currently limits occupancy. "We assume NCR per PCD may remain below 2019 levels through the first half of 2022 given the negative impact to price from customers redeeming future cruise credits (FCCs) and limitations on itineraries because some ports of call remain closed, and we assume lower ticket pricing as bookings continue to occur closer to the date of sail, at least through the first half of 2022. We believe NCR per PCD will increase to and grow slightly above 2019 levels by the second half of 2022 as the impact from FCCs declines, itinerary offerings broaden, and customers book further in advance of their sail dates. Further, we believe NCR per PCD will be supported by pricing premiums from new ships and continued pent-up travel demand that we believe will translate into customers spending more on onboard products and services than in 2019. "Risks remain around Carnival's ultimate ability to ramp up EBITDA and cash flow to more sustainable levels. Although advance bookings for the second half of 2022 are ahead of those for the same time in 2019, we forecast 2022 EBITDA to be between 50% and 70% below 2019, assuming negative EBITDA in the first half of 2022 and our expectation for full year occupancy to remain below 2019 levels. We believe Carnivals' ability to improve cash flow and adjusted credit measures will depend on its success in increasing occupancy and NCR per PCD closer to 2019 levels. In our view, cruise operators' ability to achieve occupancy of 100% or higher will depend in part on customers' comfort level around being in confined spaces, particularly given the potential for further virus variants, and the inability for kids under five years old to be vaccinated at the current time. Further, we believe the potential for continued port closures or changing travel restrictions could lead to cruise operators being unable to offer premium itineraries, which could limit NCR per PCD recovery." Further, Carnival must take delivery of contracted ships, which leads to incremental debt incurrence. This can hinder the company's ability to materially improve adjusted leverage through 2023 if EBITDA generation is weaker than S&P is forecasting. Carnival is vulnerable to credit measure volatility given the industry's high capital intensity and the need to take delivery of ships regardless of the operating environment.The cruise industry is highly capital intensive and operators generally must commit to deliveries several years in advance. While operators generally obtain financing commitments for ships before delivery and often at the same time as contracting the ship delivery, which provides liquidity support should cash flow decline, incremental debt to finance ship deliveries can result in significant deterioration of credit measures during periods of operating weakness because debt balances are increasing while EBITDA is declining. Given very negative EBITDA this year and our expectation that it will likely take a few years for Carnival's cash flow to recover to pre-pandemic levels, S&P believes Carnival's planned ship orders will materially slow the recovery in its credit measures because it believes capital expenditures (capex) for new ships will exceed EBITDA through 2022. Further, in periods of steep declines in demand, incremental capacity from new ships often exacerbates pricing pressure as operators try to match supply and demand. Carnival has, however, disposed of 19 ships (representing 13% of pre-pandemic capacity) since fiscal 2020. This helps offset some of the incremental capacity from six new ship deliveries in 2020 and to date in 2021 and another six expected in 2022. Given the significant disruption the COVID-19 pandemic caused the cruise industry and the extraordinary amount of debt operators incurred to survive a long period of cash burn, we believe operators may be more measured in exercising future ship options and committing to additional ship orders as they try to repair highly leveraged balance sheets. S&P said, "The negative outlook reflects our forecast for adjusted credit measures to remain very weak through 2022 and some uncertainty as to Carnival's ability to begin to materially improve credit measures beginning in the second half of 2022 despite the company's current future bookings. "We could lower our rating if we no longer believed Carnival's cash flow in the second half of 2022 would recover to a level that on a run-rate basis would support leverage improving below our 7.5x downgrade threshold in 2023, or if we believed Carnival might not be able to generate positive free operating cash flow (net of committed ship financing) by 2023. Further, we would lower the rating if we anticipated any strain on Carnival's liquidity position, which would likely result from weaker-than-expected demand or a slower resumption in operations than we currently anticipate. "We could revise our outlook to stable once Carnival's full fleet is back in operation and we are more certain as to the company's ability to sustain demand closer to 2019 levels, as reflected by NCR per PCD and occupancy levels recovering closer to 2019 levels. To consider revising the outlook to stable, we would also need to believe that Carnival's current level of demand and future cash flow would support adjusted leverage improving below 7.5x. Higher ratings could be considered once Carnival's operations recover if we expected adjusted leverage would be sustained below 6.5x." CF&G ENTERPRISES: Seeks to Employ Steven Lazarou as Accountant -------------------------------------------------------------- CF&G Enterprises, Inc. received approval from the U.S. Bankruptcy Court for the Northern District of Georgia to hire Steven Lazarou, a certified public accountant at Zeus Business Solutions. The Debtor requires the assistance of an accountant to prepare its monthly financial statements and amend or prepare its federal and state tax returns. Mr. Lazarou will be paid at an hourly rate of $250. In a court filing, Mr. Lazarou disclosed that he is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Steven Lazarou, CPA Zeus Business Solutions 3400 Peachtree Rd, Suite 1025 Atlanta, GA 30326 Tel: 404-275-3100 About CF&G Enterprises Inc. CF&G Enterprises, Inc. is a Georgia-based company that operates a day care center. CF&G Enterprises sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga. Case No. 21-55042) on July 5, 2021, listing as much as $10 million in both assets and liabilities. Laura C. Federspiel, chief executive officer of CF&G Enterprises, signed the petition. Judge Paul Baisier oversees the case. Will B. Geer, Esq., at Wiggam & Geer, LLC and Steven Lazarou, CPA at Zeus Business Solutions serve as the Debtor's legal counsel and accountant, respectively. Cornerstone Bank, the Debtor's lender, is represented by Ron C. Bingham, II, Esq., and John A. Thomson, Jr. Esq., at Adams and Reese, LLP. CINEMA SQUARE: Has Deal to Extend Cash Collateral Use ----------------------------------------------------- Cinema Square, LLC and Wilmington Trust, National Association, as Trustee, for the benefit of the Holders of COMM 2016-DC2 Mortgage Trust Commercial Mortgage Pass Through Certificates, Series 2016-DC2, have advised the U.S. Bankruptcy Court for the Central District of California, Santa Barbara Division, that they have reached an agreement to extend the Debtor's use of cash collateral through February 28, 2022. On June 22, 2021, the Court entered an Order Approving the Stipulation for Use of Cash Collateral between Wilmington Trust and the Debtor. Pursuant to the terms of the Cash Collateral Stipulation, Wilmington Trust consents to the Debtor's use of cash collateral through November 30, 2021. The Cash Collateral Stipulation, approved by the Interim Cash Collateral Order, includes a provision that such stipulation can be further extended by the parties in writing without further order of the Bankruptcy Court. The parties have discussed and reached an agreement to further extend the Cash Collateral Stipulation through February 2022. The parties agree that all other terms and conditions of their original Cash Collateral Stipulation remains unchanged. A copy of the stipulation and the Debtor's budget is available at https://bit.ly/3xm8RRP from PacerMonitor.com. The Debtor projects $66,677 in total operating income and $1,532 in total administrative expenses for February 2022. About Cinema Square, LLC Cinema Square, LLC is the owner of a small shopping center located at 6917 El Camino Real, Atascadero, CA 93422. There are several tenants, the primary tenant is a movie theater, the Galaxy Theater. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 21-10634) on June 14, 2021. In the petition signed by Jeffrey C. Nelson, president, the Debtor disclosed up to $50 million in assets and up to $10 million in liabilities. Judge Deborah J. Saltzman oversees the case. William C. Beall, Esq., at Beall & Burkhardt, APC is the Debtor's counsel. CITY WIDE COMMUNITY: Taps Brennan Kucera as Litigation Counsel -------------------------------------------------------------- City Wide Community Development Corp. and its affiliates seek approval from the U.S. Bankruptcy Court for the Northern District of Texas to employ Brennan Kucera, Esq., an attorney practicing in San Antonio, Texas, as special counsel. The Debtors seek assistance of a counsel to litigate their insurance claim. Mr. Kucera will receive a total of 40 percent on a contingency fee basis only. As disclosed in court filings, Mr. Kucera does not represent interests adverse to the Debtors or their estate in the matters upon which it is to be engaged. The attorney can be reached at: Brennan Kucera, Esq. Crowell & Kucera 2028 Ben White Blvd., Suite 240-2015 Austin, TX 78741 About City Wide Community Development Corp. City-Wide Community Development Corp. and its affiliates, Lancaster Urban Village Residential, LLC and Lancaster Urban Village Commercial, LLC, are primarily engaged in renting and leasing real estate properties. City-Wide Community Development Corp. and affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Texas 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; Brennan Kucera, Esq., at Crowell & Kucera as special counsel; Neal A. Walker, CPA, P.C. as accountant; and Capstone Real Estate Services, Inc. as property manager. COMMUNITY HEALTH: Amends Credit Pact With JPMorgan -------------------------------------------------- Community Health Systems, Inc. and its wholly-owned subsidiary CHS/Community Health Systems, Inc. entered into an Amendment and Restatement Agreement to refinance and replace its existing ABL Credit Agreement, dated as of April 3, 2018, with JPMorgan Chase Bank, N.A., as administrative agent, and the lenders and other agents party thereto. Pursuant to the Amended and Restated ABL Credit Agreement, the lenders have extended to the Borrower a revolving asset-based loan facility in the maximum aggregate principal amount of $1,000,000,000, subject to borrowing base capacity. The ABL Facility includes borrowing capacity available for letters of credit of $200,000,000. Borrowings under the ABL Facility bear interest at a rate per annum equal to an applicable margin, plus, at the Borrower's option, either (a) a base rate or (b) the Federal Reserve's secured overnight financing rate (the "SOFR rate"). The applicable margin under the ABL Facility will be determined based on excess availability as a percentage of the maximum commitment amount under the ABL Facility at a rate per annum of 0.75%, 1.00% and 1.25% for loans based on the base rate and 1.75%, 2.00% and 2.25% for loans based on the SOFR rate. The applicable commitment fee rate under the ABL Facility will be determined based on average utilization as a percentage of the maximum commitment amount under the ABL Facility at a rate per annum of either 0.25% or 0.375% times the unused portion of the ABL Facility. In addition to paying interest on outstanding principal under the ABL Facility, the Borrower is required to pay customary commitment and letter of credit fees. Principal amounts outstanding under the 5-year ABL Facility will be due and payable in full on Nov. 22, 2026. The ABL includes a 91 day springing maturity applicable if more than $350 million in the aggregate principal amount of the Borrower's 6.625% senior notes due 2025, 8.000% senior notes due 2026, 5.625% senior secured notes due 2027, or refinancings thereof scheduled to mature or similarly become due on a date prior to Nov. 22, 2026. The Company and all domestic subsidiaries of the Company that guarantee the Borrower's other outstanding senior and senior secured indebtedness will guarantee the obligations of the Borrower under the ABL Facility. Subject to certain exceptions, all obligations under the ABL Facility and the related guarantees are secured by a perfected first-priority security interest in substantially all of the accounts receivable, deposit, collection and other accounts and contract rights, books, records and other instruments related to the foregoing of the Company, the Borrower and the guarantors as well as a perfected junior-priority third lien security interest in substantially all of the other assets of the Company, the Borrower and the guarantors, subject to customary exceptions and intercreditor arrangements. The ABL Facility contains negative and affirmative covenants, events of default and repayment and prepayment provisions customarily applicable to asset-based credit facilities. About Community Health Systems Inc. Community Health Systems, Inc. -- http://www.chs.net-- is publicly traded hospital company and an operator of general acute care hospitals in communities across the country. On Oct. 1, 2021, Tyler Memorial Hospital in Tunkhannock, Pennsylvania, which previously offered inpatient care and surgical services as a stand-alone acute care hospital, began operating as a campus of Regional Hospital of Scranton, in Scranton, Pennsylvania, offering emergency room and outpatient services such as primary care, laboratory and imaging. After giving effect to this change, the Company, through its subsidiaries, owns or leases 83 affiliated hospitals in 16 states with an aggregate of approximately 13,000 licensed beds. The Company's headquarters are located in Franklin, Tennessee, a suburb south of Nashville. Shares in Community Health Systems, Inc. are traded on the New York Stock Exchange under the symbol "CYH." As of Sept. 30, 2021, the Company had $15.67 billion in total assets, $16.67 billion in total liabilities, $493 million in redeemable noncontrolling interests in equity of consolidated subsidiaries, and a total stockholders' deficit of $1.49 billion. * * * As reported by the TCR on Dec. 29, 2020, S&P Global Ratings raised its issuer credit rating on Community Health Systems Inc. to 'CCC+' from 'SD' (selective default). S&P said, "The stable outlook reflects our view that the company has reduced its debt, and improved its operations and cash flow such that its debt is now more manageable; however, we believe risks to the long-term sustainability of the capital structure remain, especially given ongoing uncertainty stemming from the coronavirus pandemic." In November 2020, Fitch Ratings affirmed the Long-Term Issuer Default Ratings (IDR) of Community Health Systems, Inc. (CHS) and subsidiary CHS/Community Health Systems, Inc. at 'CCC'. CUDA ENERGY: Chapter 15 Case Summary ------------------------------------ Four affiliates that concurrently filed voluntary petitions for relief under Chapter 15 of the Bankruptcy Code: Debtor Case No. ------ -------- Cuda Energy Inc. 21-20484 1930, 440 2nd Avenue SW Suite 2110 Calgary/AB T2P 5E9 Canada Cuda Energy LLC 21-20485 1930, 440 2nd Avenue SW Suite 2110 Calgary/AB T2P 5EP Canada Cuda Oil and Gas Inc. 21-20486 1930, 440 2nd Avenue SW Suite 2110 Calgary/AB T2P 5E9 Canada Junex Inc. 21-20487 1930, 440 2nd Avenue SW Suite 2110 Calgary/AB T2P 5E9 Canada Type of Business: The Debtors operate as oil and gas exploration and production companies. Chapter 15 Petition Date: November 24, 2021 Court: United States Bankruptcy Court District of Wyoming Judge: Hon. Cathleen D. Parker Foreign Representative: Deryck Helkaa FTI Consulting Canada Inc., in its capacity as Receiver 520-5th Avenue SW, Suite 110 Calgary, AB T2P 3R7 Canada Foreign Proceeding: Crt File 2101-14158, Crt of Queen's Bench of Alberta, Judicial Centre of Calgary Foreign Representative's Counsel: Bradley T. Hunsicker, Esq. MARKUS WILLIAMS YOUNG & HUNSICKER LLC 2120 Carey Ave., Suite 101 Cheyenne, WY 82009 Tel: 307-778-8178 Email: bhunsicker@markuswilliams.com Estimated Assets: Unknown Estimated Debt: Unknown Full-text copies of the Chapter 15 petitions are available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/XHERTTQ/Cuda_Energy_Inc__wybke-21-20484__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/ZZ5ARUQ/Cuda_Energy_LLC__wybke-21-20485__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/2VM45WI/Cuda_Oil_and_Gas_Inc__wybke-21-20486__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/44QO7BA/Junex_Inc__wybke-21-20487__0001.0.pdf?mcid=tGE4TAMA CYPRESS CREEK: Gets Approval to Hire J. Patrick Magill as CRO ------------------------------------------------------------- Cypress Creek Emergency Medical Services Association received approval from the U.S. Bankruptcy Court for the Southern District of Texas to hire J. Patrick Magill of Magill, PC as its chief restructuring officer. The services that will be provided by the CRO include: (a) being a signatory on all financial accounts; (b) exercising authority to manage the business affairs of the Debtor; (c) consulting with creditors, the U.S. trustee, any committee of creditors appointed by the court, and other parties-in-interest; (d) assisting the Debtor's bankruptcy counsel in amending or preparing bankruptcy schedules, statements of financial affairs, and monthly operating reports on a timely basis; (e) investigating and pursuing causes of action against creditors, whether they be insiders or non-insiders, members and other potential defendants; (f) assisting the Debtor in fulfilling its reporting obligations; (g) assisting the bankruptcy counsel in preparing and filing a Chapter 11 plan, disclosure statement and other necessary pleadings; and (h) taking all other necessary steps to maximize the value of the Debtor's bankruptcy estate. The monthly fee for the restructuring services is $20,000. Mr. Magill disclosed in a court filing that he is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. Mr. Magill can be reached at: J. Patrick Magill Magill PC 4615 Southwest Freeway, Suite 436 Houston, TX 77027 Tel: 713-623-6778 Fax: 713-426-4601 Email: patrick@magillpc.com About Cypress Creek Cypress Creek Emergency Medical Services Association is an emergency medical service provider based in Spring, Texas. Cypress Creek filed a petition for Chapter 11 protection (Bankr. S.D. Texas Case No. 21-33733) on Nov. 18, 2021, listing as much as $10 million in both assets and liabilities. Wren Nealy, Jr., chief executive officer, signed the petition. Judge Christopher M. Lopez oversees the case. The Debtor tapped Annie Catmull, Esq., at O'Connorwesler, PLLC as legal counsel and J. Patrick Magill of Magill, PC as chief restructuring officer. EADES PLASTIC: Gets OK to Tap Mesch Clark Rothschild as Counsel --------------------------------------------------------------- Eades Plastic Surgery, PLLC received approval from the U.S. Bankruptcy Court for the District of Arizona to employ Mesch Clark Rothschild as its legal counsel. The firm will render these legal services: (a) advise the Debtor regarding its powers and duties in the continued operation and management of its property; (b) take required action to recover certain property and money owed to the Debtor, if necessary; (c) prepare legal papers; and (d) perform all other legal services the Debtor deems necessary. The hourly rates of the firm's counsel and staff are as follows: D. Alexander Winkelman $295 Other Attorneys $295 - $595 Paraprofessionals $110 - $225 In addition, the firm will seek reimbursement for expenses incurred. D. Alexander Winkelman, Esq., an attorney at Mesch Clark Rothschild, 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: D. Alexander Winkelman, Esq. Mesch Clark Rothschild 259 North Meyer Avenue Tucson, AZ 85701 Telephone: (520) 624-8886 Facsimile: (520) 798-1037 Email: awinkelman@mcrazlaw.com ecfbk@mcrazlaw.com About Eades Plastic Surgery Eades Plastic Surgery, PLLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Case No. 21-08574) on Nov. 19, 2021, listing up to $50,000 in assets and up to $500,000 in liabilities. Edward Eades, president, signed the petition. Judge Scott H. Gan oversees the case. Mesch Clark Rothschild serves as the Debtor's legal counsel. EAGLE HOSPITALITY: Former Insiders Ordered to Account for PPP Funds ------------------------------------------------------------------- James Nani of Bloomberg Law reports that two executives who were largely blamed for the bankruptcy of Eagle Hospitality Real Estate Investment Trust's U.S. units are facing a court order to account for their handling of $2.4 million in federal Covid relief funds. Taylor Woods and Howard Wu could face jail time if Eagle Hospitality can show by Dec. 6 that the executives moved $50,000 or more in assets after the court's Monday, November 22, 2021, order. The two can avoid jail if they post a $2.4 million bond or place that amount in escrow, Judge Christopher S. Sontchi said in his order. About Eagle Hospitality Group Eagle Hospitality Trust -- https://eagleht.com/ -- is a hospitality stapled group comprising Eagle Hospitality Real Estate Investment Trust ("Eagle H-REIT") and Eagle Hospitality Business Trust. Based in Singapore, Eagle H-REIT is established with the principal investment strategy of investing on a long-term basis, in a diversified portfolio of income-producing real estate which is used primarily for hospitality and/or hospitality-related purposes, as well as real estate-related assets in connection with the foregoing, with an initial focus on the United States. EHT US1, Inc., and 26 affiliates, including 15 LLC entities that each owns hotels in the U.S., sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 21-10036) on Jan. 18, 2021. EHT US1, Inc., estimated $500 million to $1 billion in assets and liabilities as of the bankruptcy filing. The Debtors tapped PAUL HASTINGS LLP as bankruptcy counsel; FTI CONSULTING, INC., as restructuring advisor; and MOELIS & COMPANY LLC, as investment banker. COLE SCHOTZ P.C. is the Delaware counsel. RAJAH & TANN SINGAPORE LLP is Singapore Law counsel, and WALKERS is Cayman Law counsel. DONLIN, RECANO & COMPANY, INC., is the claims agent. EDWARD EADES: Gets OK to Hire Mesch Clark Rothschild as Counsel --------------------------------------------------------------- Edward Eades, MD, PC received approval from the U.S. Bankruptcy Court for the District of Arizona to employ Mesch Clark Rothschild as its legal counsel. The firm will render these legal services: (a) advise the Debtor regarding its powers and duties in the continued operation and management of its property; (b) take required action to recover certain property and money owed to the Debtor, if necessary; (c) prepare legal papers; and (d) perform all other legal services the Debtor deems necessary. The hourly rates of the firm's counsel and staff are as follows: D. Alexander Winkelman $295 Other Attorneys $295 - $595 Paraprofessionals $110 - $225 In addition, the firm will seek reimbursement for expenses incurred. D. Alexander Winkelman, Esq., an attorney at Mesch Clark Rothschild, 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: D. Alexander Winkelman, Esq. Mesch Clark Rothschild 259 North Meyer Avenue Tucson, AZ 85701 Telephone: (520) 624-8886 Facsimile: (520) 798-1037 Email: awinkelman@mcrazlaw.com ecfbk@mcrazlaw.com About Eades Edward MD PC Eades Edward, M.D., P.C. filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Case No. 21-08572) on Nov. 19, 2021, listing up to $50,000 in both assets and liabilities. Edward Eades, member and manager, signed the petition. Judge Scott H. Gan oversees the case. Mesch Clark Rothschild serves as the Debtor's legal counsel. ENRAMADA PROPERTIES: Class 4(b) & 4(d) Unsecureds to Recover 60% ---------------------------------------------------------------- Debtors Enramada Properties, LLC, Oscar Rene Novoa and Sylvia Novoa submitted a Second Amended Disclosure Statement in support of Amended Plan of Reorganization dated November 22, 2021. Enramada's objective was to file a plan of reorganization that restructured its debt and repaid its creditors. Enramada's principals are co-debtors on most of the debt through personal guarantees. Novoa filed separate objections to the claims of Abraham Garnica and Asatour Pogosian. Sylvia Novoa's brother, Juan Castro, Jr. agreed to contribute $90,000 to purchase the Garnica claim and waive his claim against the Bankruptcy. Class 2(b): The Bank of New York Mellon FKA The Bank of New York as Trustee for the Benefit of the Certificateholders of the CWABS, Inc., Asset-Backed Certificates, Series 2004-4 ("Bank of NY") holds its claim against Novoa's primary residence located at 8417 Enramada Ave., Whittier, CA 90605. The loan modification package is being reviewed by Bank of NY. Should the parties successfully negotiate a loan modification, payments will to be made to Bank of NY as they come due under the governing loan documents. In the meantime, Novoa will continue to make regular adequate protection payments equal to the monthly mortgage payments as they come due. Claimant shall retain its lien on the property until the claim is paid in full. General Unsecured Creditors (Classes 4(a),4(b),4(c) and 4(d)). While the Novoa and Enramada bankruptcy cases have been administratively consolidated, they remain separate cases with separate bankruptcy estates. Claims of Novoa will be paid from Novoa assets, while Enramada's claims will be paid from its assets. Class 4(b) claims, which consists of creditors whose claims are joint obligations of the Novoa and Enramada bankruptcy estates will be paid from both bankruptcy estates. * Class 4(a): A creditor whose allowed claim is $2,500 or less or who elects to reduce its allowed claim to $2,500 will receive a single payment equal to 100% of its allowed claim on the effective date of the Plan. Class 4(a) claims total $5,516. Virtually all of the Class 4(a) claims belong to Novoa. Novoa will contribute future income to pay the claims to Classes 4(a). * Class 4(b): This class consists of general unsecured claims filed in both the Enramada and Novoa bankruptcy cases. Class 4(b) claims total $401,059. Debtors will contribute the full amount of the net proceeds from the sale of the Landfranco Property, the Pogosian settlement proceeds and future income from both Debtors to pay the claims of Class 4(b). Class 4(b) members will be paid 60% of their allowed claims. * Class 4(c): This class consists of claims by general unsecured creditors of the Enramada bankruptcy case only. There are not presently any Class 4(c) claims. This class is listed in case any such claims are discovered. Enramada will contribute the full amount of the net proceeds from the sale of the Landfranco Property and future income to pay the claims of Classes 4(c). * Class 4(d): This class consists of claims by general unsecured creditors in the Novoa bankruptcy case only. Class 4(d) claims total $327,189. Novoa will contribute the full amount of the net proceeds from the Pogosian settlement proceeds and future income to pay the claims of Class 4(d). Class 4(d) members will be paid 60% of their allowed claims. The Plan will be funded by a combination of the net proceeds from the sale of the Lanfranco Property, the Pogosian settlement proceeds and from Debtors' future income. A full-text copy of the Second Amended Disclosure Statement dated Nov. 22, 2021, is available at https://bit.ly/30SdeYN from PacerMonitor.com at no charge. Attorneys for Debtors: Andrew Bisom, Esq The Bisom Law Group 300 Spectrum Center Drive, Ste. 1575 Irvine, CA, 92618 Tel: (714) 643-8900 Fax: (714) 643-8901 E-mail: abisom@bisomlaw.com Fritz J. Firman WEBER FIRMAN 1503 South Coast Dr., Ste. 209 Costa Mesa, CA 92626 Telephone: (714) 433-7185 firmanweber@yahoo.com About Enramada Properties Enramada Properties, LLC, based in Whittier, California, holds a joint tenancy interest in a property located in Los Angeles, California valued at $325,000. It also owns two real properties in Whittier having an aggregate current value of $1.1 million. Enramada Properties filed for Chapter 11 bankruptcy (Bankr. C.D. Cal. Case No. 19-19869) on August 22, 2019. In the petitionsigned by Sylvia Novoa, managing member, the Debtor listed total assets of $1,429,000 against total liabilities of $1,724,414. The Hon. Julia W. Brand oversees the case. Andrew S. Bisom, Esq., at The Bison Law Group, serves as the Debtor's bankruptcy counsel. ETHEMA HEALTH: Posts $1.5 Million Net Income in Third Quarter ------------------------------------------------------------- Ethema Health Corporation filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing net income of $1.53 million on $866,432 of revenues for the three months ended Sept. 30, 2021, compared to a net loss of $10.23 million on $89,829 of revenues for the three months ended Sept. 30, 2020. For the nine months ended Sept.30, 2021, the Company reported a net loss of $3.47 million on $1.05 million of revenues compared to a net loss of $11.53 million on $255,672 of revenues for the same period during the prior year. As of Sept. 30, 2021, the Company had $6.66 million in total assets, $18.26 million in total liabilities, $400,000 in preferred stock, and a total stockholders' deficit of $12 million. Cash generated by operating activities was $75,913 and cash used by operating activities was $(435,442) for the nine months ended Sept. 30, 2021 and 2020, respectively, an increase of $511,355. The increase is primarily due to the following: * A decrease in net loss of $8,086,798 * Offset by a decrease in the movement of non-cash items of $(7,844,962), primarily due to the gain on debt extinguishment in the prior period of $12,683,678, the movement in the amortization of debt discount of $1,054,886, the movement in the fair value of warrants granted of $976,788, the movement in warrants exercised of $662,473, offset by the movement in derivative liabilities of $(23,395,398). * Working capital movements increased by $289,519, primarily due to decrease in movements of prepaid expenses of $333,531, offset by the increase in movements of accounts receivable of $117,382. Cash used in investing activities was $471,427 and cash released from investing activities was $5,995 for the nine months ended Sept. 30, 2021 and 2020, respectively, the increase is attributable to the advances made to Evernia of $450,537, in the form of repayable balances, prior to the acquisition of ATHI by the Company, the net cash received on the acquisition of Evernia of $10,324, with cash balances of $60,324, offsetting the cash paid on acquisition of $50,000 and the purchase of property, plant and equipment of $31,214. Cash provided by financing was $372,199 and $433,319 for the nine months ended Sept. 30, 2021 and 2020, respectively, a decrease of $61,120. The decrease is due to the net increase in convertible note movements of $161,723, the increase in movements of funding of short term loans of $16,111, offset by the movement in related party notes of $272,412. "Over the next twelve months we estimate that the company will require approximately $1.5 million in working capital as it continues to develop the Evernia facility and it is also exploring several other treatment center options and sources of patients throughout the country. The company may have to raise equity or secure debt. There is no assurance that the Company will be successful with future financing ventures, and the inability to secure such financing may have a material adverse effect on the Company's financial condition. In the opinion of management, the Company's liquidity risk is assessed as medium," Ethema said. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/792935/000172186821000835/f2sgrst10q111721.htm About Ethema Health Headquartered in West Palm Beach, Florida, Ethema Health Corporation -- http://www.ethemahealth.com-- operates in the behavioral healthcare space specifically in the treatment of substance use disorders. Ethema developed a unique style of treatment over the last eight years and has had much success with in-patient treatment for adults. Ethema reported net income of $3.08 million for the year ended Dec. 31, 2020, a net loss of $14.96 million for the year ended Dec. 31, 2019, and a net loss of $8.18 million for the year ended Dec. 31, 2018. As of June 30, 2021, the Company had $4.19 million in total assets, $19.10 million in total liabilities, $400,000 in preferred stock, and a total stockholders' deficit of $15.31 million. Sunrise, Florida-based Daszkal Bolton LLP, the Company's auditor since 2018, issued a "going concern" qualification in its report dated April 15, 2021, citing the Company had accumulated deficit of approximately $42.4 million and negative working capital of approximately $12.9 million at Dec. 31, 2020, which raises substantial doubt about its ability to continue as a going concern. FINDLAY ESTATES: Seeks Approval to Hire Leo Fox as Legal Counsel ---------------------------------------------------------------- Findlay Estates, LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of New York to employ Leo Fox, Esq., an attorney practicing in New York, to handle its Chapter 11 case. Mr. Fox will render these legal services: (a) advise the Debtor regarding its powers and duties; (b) prepare legal papers; (c) appear before the bankruptcy judge, protect the Debtor's interests and represent the Debtor in all matters pending before the court; (d) meet and negotiate with creditors and their committee and prepare the reorganization plan and disclosure statement; and (d) perform all other legal services for the Debtor. Mr. Fox received a retainer of $15,000 from Unique Greenspace owned by Jacob Grunhut, the husband of Sheindy Grunhut who is the equity holder of the Debtor. Mr. Fox will be paid at his hourly rate of $450. His employees, Susan Adler, Esq., and Carol Brennan, a paralegal, will be billed at $275 per hour and $75 per hour, respectively. Mr. Fox 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: Leo Fox, Esq. 630 Third Avenue, 18th Floor Telephone: (212) 867-9595 Facsimile: (813) 223-7118 Email: leo@leofoxlaw.com About Findlay Estates Findlay Estates, LLC owns and operates a 27-unit residential rental building located at 1056-1064 Findlay Ave., Bronx, N.Y. Findlay Estates filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 21-22647) on Nov. 16, 2021, listing as much as $10 million in both assets and liabilities. Sheindy Grunhut, sole member-manager, signed the petition. Judge Robert D. Drain oversees the case. Leo Fox, Esq., an attorney practicing in New York, serves as the Debtor's legal counsel. FLORIDA TILT: Unsecured Creditors to Split $17.6K over 5 Years -------------------------------------------------------------- Florida Tilt, Inc., submitted a Second Amended Disclosure Statement in support of Second Amended Plan of Reorganization dated November 22, 2021. The Debtor is in the tilt concrete construction business and as debts exceeded gross receipts the Debtor became delinquent in its secured and unsecured debt obligations. The Debtor sought relief under the Bankruptcy Code to, among other things, seek confirmation of a plan which modified its secured obligations and dedicated his anticipated profits towards the repayment of creditors. Class 4 consists of all allowed unsecured general claims. The allowed unsecured claims total $732,473.69. The Class 4 creditors shall share pro rata in a total distribution in the approximate amount of $17,579.36 (the "Total Plan Payment") which shall be paid in installments of $1,757.93 bi-annual (every 6 months) over 5 years, i.e. 10 bi-annual payments totaling $17,579.36, with the first payment beginning the 30th day of the month following the Effective Date of this Plan. New Value: At plan confirmation, Debtor's Principal Raymond Cartaya agrees to forego all of his salary and wages due and owing from the Debtor until the date of Plan confirmation as new value to the Debtor. Class 5 consists of the Debtor's interest in property of the estate, which is retained under this Plan. The Debtor has committed the value of 60 months of its profit toward funding the Plan, and has otherwise met all of the requirements under the Bankruptcy Code. Class 5 is presumed to accept this Plan and is not entitled to vote. TD Auto Finance, LLC has no claim in the estate. It filed no proof of claim. Its secured claim regarding the 2017 GMC Sierra is current and treated outside of this chapter 11 plan. The means necessary for the execution of this Plan include the Debtor's income from its business operations. The Debtor shall, and believes it can, generate and receive sufficient income to the amount necessary to enable it to make all payments due under the Plan. The Debtor shall be the disbursing agent. Debtor believes that it will have enough cash on hand on the Effective Date of the Plan to pay all the claims and expenses that are entitled to be paid on that date and, further, that the Reorganized Debtor will generate sufficient cash through operations to fund the Plan during the Plan distribution period. The Budget demonstrates the Debtor's ability to make all payments required under this Plan. The projections make certain assumptions and take into account Debtor's plans for the future. Accordingly, Debtor asserts that it is able to perform all of its obligations under the Plan, and as such, the Debtor's Plan satisfies §1129(a)(11) of the Code. A full-text copy of the Second Amended Disclosure Statement dated Nov. 22, 2021, is available at https://bit.ly/3cMYUn9 from PacerMonitor.com at no charge. Attorney for the Debtor: Ariel Sagre, Esq. SAGRE LAW FIRM, P.A. 5201 Blue Lagoon Drive, Suite 892 Miami, Florida 33126 Tel: (305) 266-5999 Fax: (305) 265-6223 E-mail: law@sagrelawfirm.com About Florida Tilt Florida Tilt, Inc., is in the tilt concrete construction business. The Debtor sought relief under the Bankruptcy Code to, among other things, seek confirmation of a plan which modified its secured obligations and dedicated his anticipated profits towards the repayment of creditors. Florida Tilt, Inc., sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 20-20779) on Oct. 1, 2020, listing under $1 million in both assets and liabilities. Judge Robert A. Mark oversees the case. Ariel Sagre, Esq., at Sagre Law Firm, P.A., serves as the Debtor's legal counsel. FORD STEEL: Seeks Cash Collateral Access Thru Dec 6 --------------------------------------------------- Ford Steel, LLC asks the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, for authority to continue using up to $599,810 in cash collateral for the period from November 24, 2021 through December 6, 2021. On November 23, 2021, the Court held a ninth hearing on the Debtor's continued use of cash collateral. Counsel for the Debtor mistakenly believed that the cash collateral hearing had been continued and was to be held in conjunction with the plan confirmation on December 6, and therefore did not appear. Ms. Baili Rhodes appeared on behalf of First Financial Bank and Mr. Richard Kincheloe appeared on behalf of the United States. Neither Ms. Rhodes nor Mr. Kincheloe voiced an objection to the continued use of cash collateral. Due to the absence of the Debtor and its Counsel, the Court denied the continued use of cash collateral pending further Court order. Also on November 23, the Debtor, its counsel and special counsel, the buyer and its counsel and the agents for First American Title Insurance Company were actively engaged in closing on the sale of the Debtor's real property to 24800 Ford, LLC. The sale was finalized and funded. All secured creditors with the exception of the IRS were paid in full by wire transfer on the same day, in accordance with the payoff amounts each provided to First American. The IRS required payment by check rather than a wire transfer and provided First American with the address in Houston to send the check. On November 23, First American sent the IRS a check for $4,559,760 by Federal Express Priority Overnight Mail to the Houston address provided by the IRS Counsel. The amount of the check was equal to the stipulated allowed secured claim of the IRS as evidenced by the Stipulation and Agreed Order at Docket No. 235 plus interest at the rate of 5% per annum from September 1 until November 23. As all secured creditors have been paid in full with the possible exception of interest due the IRS, there are no appreciable liens on the use of cash collateral. Counsel for the Debtor has sufficient funds held in her IOLTA Account from the sale to cover any deficiency to the IRS. A copy of the motion is available at https://bit.ly/3r5LQS3 from PacerMonitor.com. About Ford Steel LLC Porter, Texas-based Ford Steel, LLC -- http://www.fordsteelllc.com/--is in the business of steel product manufacturing. It fabricates for a wide variety of industries including the petrochemical industry, waste water treatment, transmission communication and broadcast towers, mining, and oil and gas industries. Ford Steel filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 20-34405) on Sept. 1, 2020. Herbert C. Jeffries, managing member, signed the petition. The Debtor listed between $1 million and $10 million in both assets and liabilities. Judge Eduardo V. Rodriguez oversees the case. The Debtor tapped Cooper & Scully, PC as bankruptcy counsel. Muskat Mahony & Devine, LLP, Currin Wuest Mielke Paul & Knapp, PLLC, and Cantrell & Cantrell, PLLC serve as the Debtor's special counsel. First Financial Bank, Inc., as lender, is represented by West, Webb, Allbritton & Gentry, PC. GATEARM TECHNOLOGIES: Unsecureds to Get $1K per Month for 60 Months ------------------------------------------------------------------- Gatearm Technologies, Inc., filed with the U.S. Bankruptcy Court for the Southern District of Florida a Subchapter V Plan of Reorganization dated Nov. 22, 2021. Debtor is a privately held corporation organized under the laws of the State of Florida. The Debtor manufactures and distributes gate arms, including LED arms with red and green lights for gates typically seen at entrances to homeowner associations and building's vehicle entrances. The Debtor's financial problems began when it filed suit against 3 parties in 2014 for patent infringement as it relates to one of the Debtor's patents. Although the matter eventually settled, post-settlement issues arose, and the Debtor sought to compel the defendants to comply with the settlement agreement. At the time of the filing of the case, the Debtor was facing a large claim for the defendant's attorney's fees as well as a significant claim for its own attorney's fees, the size of which could ultimately put the Debtor out of business absent the filing of this case. The Debtor asserts that the liquidation of the Debtor's assets would yield a payment to unsecured creditors in a total amount of $50,000 after the payment of all administrative expenses. Any changes to Debtor's property or this liquidation analysis will be set forth in a supplement to this Plan if necessary. The Debtor projects that all payments shall be funded by the Debtor's cash on hand and operating income. The Debtor has or will file separately its net projected income for 5 years. The Debtor projects that it will have five-year aggregate of net projected income of $57,830.39 before the payment of chapter 11 administrative expenses. The Debtor has estimated that counsel for the Debtor will be paid $30,000.00 and the Sub-Chapter V Trustee will be paid $5,000.00. Class 1 consists of the allowed, non-priority, general unsecured claims against the Debtor. The Debtor shall pay on a pro rata basis to non-priority, general, unsecured claims over 60 equal monthly payments of $1,000.00 each month commencing on the 90th day following the Effective Date totaling $60,000.00. The Effective Date is extended due to the supply chain issues and projections that there will be no sales in the first quarter of 2022. Class 3 is impaired. Class 2 consists of all equity owners of the Debtor. There shall be no distribution to this class of creditors. A full-text copy of the Subchapter V Plan of Reorganization dated Nov. 22, 2021, is available at https://bit.ly/3laIMQV from PacerMonitor.com at no charge. Attorneys for Debtor: Craig I. Kelley, Esq. Kelley, Fulton & Kaplan, P.L. 1665 Palm Beach Lakes Blvd., Suite 1000 West Palm Beach, FL 33401 Tel: (561) 491-1200 Fax: (561) 684-3773 Email: bankruptcy@kelleylawoffice.com About Gatearm Technologies Gatearm Technologies, Inc., a privately held corporation organized under the laws of the State of Florida, filed a petition for Chapter 11 protection (Bankr. S.D. Fla. Case No. 21-18198) on Aug. 24, 2021, listing up to $50,000 in assets and up to $100,000 in liabilities. Russel Lumsden, president, signed the petition. Judge Mindy A. Mora oversees the case. The Debtor tapped Craig I. Kelley, Esq., at Kelley, Fulton & Kaplan, P.L., as legal counsel. GEX MANAGEMENT: Incurs $178K Net Loss in Third Quarter ------------------------------------------------------ GEX Management, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $177,588 on $281,805 of revenues for the three months ended Sept. 30, 2021, compared to a net loss of $26,810 on $244,230 of revenues for the three months ended Sept. 30, 2020. For the nine months ended Sept. 30, 2021, the Company reported a net loss of $732,238 on $870,320 of revenues compared to a net loss of $94,082 on $406,408 of revenues for the nine months ended Sept. 30, 2020. As of Sept. 30, 2021, the Company had $3.25 million in total assets, $4.99 million in total liabilities, and a total shareholders' deficit of $1.74 million. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1681556/000149315221029519/form10-q.htm About GEX Management GEX Management -- http://www.gexmanagement.com-- is a management consulting company providing Strategy and Enterprise Technology Consulting solutions to public and private companies across a variety of industry sectors. GEX Management reported a net loss of $224,947 in 2020, a net loss of $100,200 in 2019, and a net loss of $5.10 million in 2018. As of June 30, 2021, the Company had $3.40 million in total assets, $5.05 million in total liabilities, and a total shareholders' deficit of $1.64 million. GIRARDI & KEESE:Tom's Laptop Discovered Amid Bankruptcy Proceedings ------------------------------------------------------------------- Adam Ragsdale of Reality Blurb reports that Erika Jayne's estranged husband, Tom Girardi, is facing an onslaught of lawsuits following recent allegations. His former clients, the widows and orphans of plane crash victims, are claiming he took millions of dollars that didn't belong to him. His law firm, Girardi Keese, was soon forced into bankruptcy. A judge recently allowed a new lawsuit against the Real Housewives of Beverly Hills pop singer, which will take place in a Chicago federal court. Because of this, attorneys will be able to pull more information regarding Tom and his firm and perhaps find answers about the money. According to Radar, court documents showed that a laptop was uncovered in the bankruptcy investigation. The laptop belonged to Tom's firm, and the trustee of the bankruptcy said it contains relevant files. The device, however, was currently in the possession of Christopher Kamon, Tom's former employee. The trustee said Christopher didn't agree with the request for the laptop because he claimed he had personal information on it, and the court didn't have the right to take it. However, Christopher agreed to a deal whereby the laptop would be returned after the court proceedings. With access to the laptop, the trustee hopes to uncover Tom’s assets and liabilities. Right now, the relatives of the plane crash victims want to know where the money went. The victims are currently wielding a $2 million lawsuit against both Tom and Erika. A fire burn victim, who was also Tom's client, is going after him for $11 million, claiming he refused to pay out the settlement funds. In another federal lawsuit, Erika was accused of a "sham" divorce to supposedly hide her assets. The lawyers currently representing the orphans said they uncovered bombshell records related to the finances. They're claiming Tom put embezzled money into the Bravo star's EJ Global company. Though Erika has been consistent on the point that she had no knowledge of her husband’s alleged misconduct, she is still facing another $25 million lawsuit, which alleges that Erika must return the money Tom gave her (regardless of her awareness of his supposed guilt). On the reunion episodes of the Real Housewives of Beverly Hills, Andy Cohen hit Erika with questions that viewers wanted to ask. According to some fans, Erika answered the questions honestly. Others remain unconvinced (or are certain she knew something). About Girardi & Keese Girardi and Keese or Girardi & Keese was a Los Angeles-based law firm founded in 1965 by lawyers Thomas Girardi and Robert Keese. It served clients in California in a variety of legal areas. It was known for representing plaintiffs against major corporations. An involuntary Chapter 7 petition (Bankr. C.D. Cal. Case No. 20-21022) was filed in December 2020 against GIRARDI KEESE by alleged creditors Jill O'Callahan, Robert M. Keese, John Abassian, Erika Saldana, Virginia Antonio, and Kimberly Archie. The petitioners' attorneys: Andrew Goodman Goodman Law Offices, Apc Tel: 818-802-5044 E-mail: agoodman@andyglaw.com Elissa D. Miller, a member of the firm SulmeyerKupetz, has been appointed as Chapter 7 trustee for GIRARDI KEESE. The Chapter 7 trustee can be reached at: Elissa D. Miller 333 South Grand Ave., Suite 3400 Los Angeles, California 90071-1406 Telephone: (213) 626-2311 Facsimile: (213) 629-4520 E-mail: emiller@sulmeyerlaw.com An involuntary Chapter 7 petition was also filed against Thomas Vincent Girardi (Case No. 20-21020) on Dec. 18, 2020. The Chapter 7 trustee can be reached at: Jason M. Rund Email: trustee@srlawyers.com 840 Apollo Street, Suite 351 El Segundo, CA 90245 Telephone: (310) 640-1200 Facsimile: (310) 640-0200 GRANDMA BEA: Seeks to Hire Larry Strauss as Accountant ------------------------------------------------------ Grandma Bea, LLC seeks approval from the U.S. Bankruptcy Court for the District of Maryland to hire Larry Strauss, Esq., CPA and Associates, Inc. to prepare its tax returns and provide general accounting services. The hourly rates charged by the firm for its services range from $145 to $450. Larry Strauss, Esq., president of the firm, disclosed in a court filing that he is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached at: Larry Strauss, Esq. Larry Strauss, Esq., CPA and Associates, Inc. 2310 Smith Avenue Baltimore, MD 21209 Tel: 410-484-2142 Fax: 443-352-3282 Email: Larry@LarryStraussESQCPA.com About Grandma Bea Centreville, Md.-based Grandma Bea, LLC filed a petition for Chapter 11 protection (Bankr. D. Md. Case No. 21-17146) on Nov. 12, 2021, listing up to $10 million in assets and up to $1 million in liabilities. Harry Kaiser, managing member, signed the petition. The Debtor tapped Tate M. Russack, Esq., at RLC, PA Lawyers & Consultants as legal counsel and Larry Strauss, Esq., CPA and Associates, Inc. as accountant. GROM SOCIAL: Incurs $2.3 Million Net Loss in Third Quarter ---------------------------------------------------------- Grom Social Enterprises, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $2.33 million on $1.51 million of sales for the three months ended Sept. 30, 2021, compared to a net loss of $2.22 million on $1.44 million of sales for the three months ended Sept. 30, 2020. For the nine months ended Sept. 30, 2021, the Company reported a net loss of $7.15 million on $4.78 million of sales compared to a net loss of $4.52 million on $4.48 million of sales for the same period during the prior year. As of Sept. 30, 2021, the Company had $31.19 million in total assets, $5.71 million in total liabilities, and $25.48 million in total stockholders' equity. At Sept. 30, 2021, the Company had cash and cash equivalents of $9,102,728. Net cash used in operating activities for the nine months ended Sept. 30, 2021 was $5,373,687, compared to net cash used in operating activities of $666,775 during the nine months ended Sept. 30, 2020, representing an increase in cash used of $4,706,912, primarily due to the increase in our loss from operations and the change in working capital assets and liabilities. Net cash used in investing activities for the nine months ended Sept. 30, 2020 was $425,789, compared to net cash used in investing activities of $571,563 during the nine months ended Sept. 30, 2020 representing a decrease in cash used of $145,774. This change is attributable to a decrease in the amount of fixed assets purchased and/or leasehold improvements made by its animation studio in Manila, Philippines during the nine months ended Sept. 30, 2021, offset by $400,000 in cash paid as consideration for the acquisition of Curiosity. Net cash provided by financing activities for the nine months ended Sept. 30, 2021 was $14,768,735, compared to net cash provided by financing activities of $1,023,600 for the nine months ended Sept. 30, 2020, representing an increase in cash provided of $13,745,135. The Company's primary sources of cash from financing activities were attributable to $10,317,324 in proceeds from the sale of its common stock, $4,516,700 in proceeds from the sale of convertible notes, and $950,000 and $100,000 in proceeds from the sale of its Series B Stock and Series C Stock, respectively, during the nine months ended Sept. 30, 2021, as compared to $3,655,000 in proceeds from the sale of convertible notes and $483,500 in proceeds from the sale of its Series B Stock during the nine months ended Sept. 30, 2020. On Aug. 19, 2021, the Company repaid $792,846 in principal due to the former shareholders of TD Holdings Limited on a convertible note originally dated Sept. 20, 2016, as compared to the repayment of $3,000,000 in principal on the same convertible note due to the former shareholders of TD Holdings Limited on March 16, 2020. The Company believes it has adequate working capital to meet its operational needs for the next 12 months. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1662574/000168316821005890/grom_i10q-093021.htm About Grom Social Boca Raton, Florida-based Grom Social Enterprises, Inc. -- www.gromsocial.com -- is a media, technology and entertainment company focused on delivering content to children under the age of 13 years in a safe secure Children's Online Privacy Protection Act ("COPPA") compliant platform that can be monitored by parents or guardians. The Company operates its business through the following four wholly-owned subsidiaries: Grom Social, Inc., TD Holdings Limited, Grom Educational Services, Inc., and Grom Nutritional Services, Inc. Grom Social reported a net loss of $5.74 million for the year ended Dec. 31, 2020, compared to a net loss of $4.59 million for the year ended Dec. 31, 2019. As of March 31, 2021, the Company had $17.51 million in total assets, $6.77 million in total liabilities, and $10.74 million in total stockholders' equity. BF Borgers CPA PC, in Lakewood, Colorado, the Company's auditor since 2015, issued a "going concern" qualification in its report dated April 13, 2021, citing that the Company has incurred significant operating losses since inception and has a working capital deficit which raises substantial doubt about its ability to continue as a going concern. GRUPO AEROMEXICO: Will Raise $1.3 Billion to Exit Chapter 11 ------------------------------------------------------------ Grupo Aeromexico is set to raise $1.3 billion to exit Chapter 11 bankruptcy. According to a Nov. 19 filing, after tireless good-faith negotiations, the Debtors, Apollo, Delta, the Ad Hoc Group of Senior Noteholders, the Ad Hoc Noteholder/BSPO Bidders, the Ad Hoc Group of Unsecured Claimholders, and the Mexican Investors have agreed to the terms of a revised equity commitment letter. The Debtors and certain of the Exit Financing Parties have also agreed to the terms of a revised debt commitment letter. A total of US$1.3 billion is to be raised by various financing parties to enable Grupo Aeromexico to exit US Chapter 11 bankruptcy protection. The Commitment parties -- excluding strategic partner Delta Air Lines and Mexican investors -- will purchase or finance $600 million in new capital (representing 26.9% of all new shares issued), as well as $762.5 million in senior secured first-lien notes. Certain of the committed parties (other than Delta and the Mexican investors) and/or other third-party investors may also provide other exit debt financing through syndication to be arranged by JP Morgan Chase Bank. In addition, Delta will subscribe and pay for $100 million of New Shares. This follows an agreement on the terms of a revised equity commitment letter and a revised debt commitment letter reached between the so-called "exit financing parties" consisting of Grupo Aeroméxico, its lead US lender Apollo Global Management Inc, Delta Air Lines, groups of senior shareholders, unsecured creditors, and Mexican investors. According to Aviation.com, highlights of the revised equity commitment letter include: * Delta will subscribe and pay for $100 million of new shares. It will also be required to convert all fully accrued amounts of its Tranche 2 loans into new shares at plan equity value. In exchange, Delta shall receive 20% of all new shares issued under the Chapter 11 exit plan, representing 20% of the capital stock of the reorganised Grupo Aeromexico. In addition, any or all portions of Delta's claims against the debtors shall be allowed and satisfied in accordance with the Chapter 11 plan and any distributions of new shares on such claims will be added to Delta's ownership interest. * Apollo Management Holdings will receive $150 million in cash, accrued interest at the applicable interest rate under the Debtor-in-Possession (DIP) credit agreement on the outstanding obligations under the Tranche 2 DIP loans commencing on December 31, 2021; and 22.38% of all new shares. Mexican Pension Fund Tranche 2 DIP loans will be converted into 3.54% of all new shares issued under the Chapter 11 exit plan. * A cash pool of $450 million (consisting of $350 million from the debtors' balance sheet and USD100 million of excess cash) shall be distributed to unsecured creditors. According to Aviation.com, highlights of the revised debt commitment letter include: * Senior secured first lien notes of USD762.5 million are to be issued collectively. * Of this, $575 million will be used to repay Tranche 1 of the DIP facility; for working capital and general corporate purposes; payments to holders of first-lien notes and administrative fees; and to fund cash distributions to unsecured creditors. In the motion, Grupo Aeromexico said the revised exit financing proposals provided for sufficient exit financing for a successful emergence from Chapter 11 and also resolved several other complex matters with broad stakeholder support which would allow the debtors to continue towards a more consensual and expeditious confirmation of the restructuring plan. "Put simply, this is the only viable path forward for the debtors," it said. About Grupo Aeromexico Grupo Aeromexico, S.A.B. de C.V. (BMV: AEROMEX) -- https://www.aeromexico.com/ -- is a holding company whose subsidiaries are engaged in commercial aviation in Mexico and the promotion of passenger loyalty programs. Aeromexico, Mexico's global airline, has its main hub at Terminal 2 at the Mexico City International Airport. Its destinations network features the United States, Canada, Central America, South America, Asia and Europe. Grupo Aeromexico and three of its subsidiaries sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 20-11563) on June 30, 2020. In the petitions signed by CFO Ricardo Javier Sanchez Baker, the Debtors reported consolidated assets and liabilities of $1 billion to $10 billion. The Debtors tapped Davis Polk and Wardell LLP as their bankruptcy counsel, KPMG Cardenas Dosal S.C. as auditor, and Rothschild & Co US Inc. and Rothschild & Co Mexico S.A. de C.V. as financial advisor and investment banker. White & Case LLP, Cervantes Sainz S.C. and De la Vega & Martinez Rojas, S.C., serve as the Debtors' special counsel. Epiq Corporate Restructuring, LLC, is the claims and administrative agent. The U.S. Trustee for Region 2 appointed a committee to represent unsecured creditors on July 13, 2020. The committee is represented by Willkie Farr & Gallagher, LLP and Morrison & Foerster, LLP. GULF COAST HEALTH: Defuses Loan, Site Management Disputes --------------------------------------------------------- Jeff Montgomery of Law360 reports that bankrupt Gulf Coast Health Care reached agreements Wednesday, November 24, 2021, on amendments to a proposed $25 million case financing loan and management change agreement for 24 of the nursing home chain's sites in Florida and Mississippi, after two days of wrangling over insider benefits and creditor claim restrictions. U.S. Bankruptcy Judge Karen B. Owens approved the debtor-in-possession loan and management and operations transfer agreement (MOTA) changes based descriptions of the deals disclosed during a video conference hearing. The judge said she would sign the documents when they are presented in final form, with the MOTA expected to be filed later Wednesday. About Gulf Coast Health Care Gulf Coast Health Care, LLC is a licensed operator of 28 skilled nursing facilities comprising nearly 3,350 licensed beds across Florida, Georgia, and Mississippi. It provides short-term rehabilitation, comprehensive post-acute skilled care, long-term care, assisted living, and therapy services in each of its facilities. Gulf Coast Health Care and 61 affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 21-11336) on Oct. 14, 2021. In the petition signed by Benjamin M. Jones as chief restructuring officer, Gulf Coast Health Care listed up to $50 million in assets and up to $500 million in liabilities. The cases are handled by Judge Karen B. Owens. The Debtors tapped McDermott Will & Emery LLP and Ankura Consulting Group LLC as legal counsel and restructuring advisor, respectively. M. Benjamin Jones of Ankura serves as the Debtors' chief restructuring officer. Epiq Corporate Restructuring, LLC, is the claims, noticing and administrative agent. On Oct. 25, 2021, the U.S. Trustee for Region 3 appointed an official committee of unsecured creditors in the Debtors' Chapter 11 cases. Greenberg Traurig, LLP and FTI Consulting, Inc., serve as the committee's legal counsel and financial advisor, respectively. GULF COAST: Judge Quiz CRO on Lack of Sale Push Prior Ch.11 Filing ------------------------------------------------------------------ Jeff Montgomery of Law360 reports that a Delaware bankruptcy judge on Tuesday, Nov. 23, 2021, quizzed the chief restructuring officer for bankrupt Gulf Coast Health Care on the absence of prepetition efforts to market the nursing home chain or secure an independent valuation of the hefty lease costs that helped drive it into Chapter 11. During a hearing on Gulf Coast's proposed case financing loan, U.S. Bankruptcy Judge Karen B. Owens also asked Gulf Coast CRO M. Benjamin Jones why Houlihan Lokey Inc. , which advised the company before its bankruptcy filing, "is not retained by the debtor as we sit here today" and who decided against it. About Gulf Coast Health Care Gulf Coast Health Care, LLC is a licensed operator of 28 skilled nursing facilities comprising nearly 3,350 licensed beds across Florida, Georgia, and Mississippi. It provides short-term rehabilitation, comprehensive post-acute skilled care, long-term care, assisted living, and therapy services in each of its facilities. Gulf Coast Health Care and 61 affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 21-11336) on Oct. 14, 2021. In the petition signed by Benjamin M. Jones as chief restructuring officer, Gulf Coast Health Care listed up to $50 million in assets and up to $500 million in liabilities. The cases are handled by Judge Karen B. Owens. The Debtors tapped McDermott Will & Emery LLP and Ankura Consulting Group LLC as legal counsel and restructuring advisor, respectively. M. Benjamin Jones of Ankura serves as the Debtors' chief restructuring officer. Epiq Corporate Restructuring, LLC is the claims, noticing and administrative agent. On Oct. 25, 2021, the U.S. Trustee for Region 3 appointed an official committee of unsecured creditors in the Debtors' Chapter 11 cases. Greenberg Traurig, LLP and FTI Consulting, Inc., serve as the committee's legal counsel and financial advisor, respectively. INSYS THERAPEUTICS: Convicted Ex-Execs Must Pay Victims $43.8 Mil. ------------------------------------------------------------------ Brian Dowling of Law360 reports that the federal prosecutors in the Insys Therapeutics Inc. opioid kickback case won a fight over how much the founder and former executives owe victims, as a Boston federal judge on Tuesday, November 25, 2021, ordered up the $43. 8 million restitution sum requested by the government. The First Circuit's opinion in August 2021 reopened the fight over restitution for the former Insys executives convicted of running a kickback scheme with co-conspirator doctors who would dish out prescriptions for the company's fentanyl spray Subsys. The appeals court told U.S. District Judge Allison D. Burroughs to take another look at the "insupportable" calculations. About Insys Therapeutics Headquartered in Chandler, Ariz., Insys Therapeutics Inc. -- http://www.insysrx.com/-- is a specialty pharmaceutical company that develops and commercializes innovative drugs and novel drug delivery systems of therapeutic molecules that improve patients' quality of life. Using proprietary spray technology and capabilities to develop pharmaceutical cannabinoids, Insys is developing a pipeline of products intended to address unmet medical needs and the clinical shortcomings of existing commercial products. Insys is committed to developing medications for potentially treating anaphylaxis, epilepsy, Prader-Willi syndrome, opioid addiction and overdose, and other disease areas with a significant unmet need. As of March 31, 2019, Insys had $172.6 million in total assets, $336.3 million in total liabilities, and a total stockholders' deficit of $163.7 million. Insys Therapeutics and six affiliated companies filed petitions seeking relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 19-11292) on June 10, 2019. The Debtors' cases are assigned to Judge Kevin Gross. The Debtors tapped Weil, Gotshal & Manges LLP and Richards, Layton & Finger, P.A., as legal counsel; Lazard Freres & Co. LLC as investment banker; FTI Consulting, Inc. as financial advisor; and Epiq Corporate Restructuring, LLC as claims agent. Andrew Vara, acting U.S. trustee for Region 3, on June 20, 2019, appointed nine creditors to serve on an official committee of unsecured creditors in the Chapter 11 cases. Akin Gump Strauss Hauer & Feld LLP, and Bayard, P.A., serve as the Committee's attorneys; and Province, Inc., is the financial advisor. After selling substantially all of their assets, the Debtors filed a Chapter 11 Plan and Disclosure Statement. J & GC INC: Continued Operations to Fund Plan --------------------------------------------- J & GC, Inc., filed with the U.S. Bankruptcy Court for the Northern District of Texas a Disclosure Statement describing Plan of Reorganization. Debtor is a company which provides concrete services in the Dallas/ Fort Worth area. Debtor purposes to restructure its current indebtedness and continue its operations to provide a dividend to the unsecured creditors of Debtor. The Debtor's business consists of providing concrete cutting services to the construction market. The Debtor's business began slowing down in 2018. The Debtor began falling behind on its employee taxes in mid 2018. When the pandemic hit business virtually stopped and the Debtor was unable to catch up. This case was filed to work out a payment plan with the IRS and the creditors of the Debtor and to allow the Debtor to remain in business. Under the terms of the Plan, the Unsecured Creditors will receive cash payments from the Debtor's operations. The Debtor believes these projections of sales to be feasible based upon the historic levels of the company taking into consideration the current economic situation. The Debtor's income during the pendency of the case has averaged approximately $19,000 per month, however,the Debtor believes the amount set forth in the projections are in line with historical numbers and that the income will increase during the term of the Plan. Under the Debtor's Plan, if confirmed, the shareholders of the Debtor will be allowed to retain their stock in the Debtor. In this case, the shareholders of the Debtor will be allowed to keep their shares because all creditors will be paid in full. The Plan will treat claims as follows: * Class 1 Claimants (Allowed Administrative Claims of Professionals and US Trustee) are unimpaired and will be paid in cash and in full on the Effective Date of this Plan. Professional fees are subject to approval by the Court as reasonable. Debtor's attorney's fees approved by the Court and payable to the law firm of Eric Liepins, P.C. will be paid immediately following the later of Confirmation or approval by the Court out of the available cash. * Class 2 Claimants(Allowed Tax Claim) are impaired. The Allowed Amount of all Tax Creditor Claims shall be paid out of the continued operations of the business. The Priority Tax Creditor Claims to be the Internal Revenue Service ("IRS")Claims for 941 taxes priority and secured taxes believed to be approximately $63,055.27. The IRS Priority and Secured Claims will be paid in full over a 60 month period commencing on the Effective Date, with interest at a rate of 3% per annum. The monthly payment shall be approximately $1,133. * Class 3 Claimants (Allowed Property Tax Claims) are impaired. The Debtor owed business property taxes to Dallas County in the amount of $15,839.39 and to Garland ISD in the amount of $18,907.68. These Ad Valorem Taxes will receive postpetition pre confirmation interest at the state statutory rate of 1% per month and post confirmation interest at the rate of 12% per annum. The Debtor shall pay the Class 3 claimants in equal monthly installments with interest so that the Class 3 creditors is paid in full with 60 months from the Petition Date. Debtor believes the monthly payment to the Class 3 creditor will be approximately $815. The Class 3 claimants shall retain their liens on the Debtor's property until paid in full under this Plan. * Class 4 Claimant (Allowed Unsecured Claims) are impaired. The Allowed Claims of Unsecured Creditors. The Unsecured Creditors will share pro-rata in the Unsecured Creditor's Pool. The Unsecured Creditors will share pro rata in the Unsecured Creditor's Pool. The Debtor shall pay $500 per month for a period of up to 60 months into the Unsecured Creditors Pool. The Unsecured Creditors shall be paid quarterly on the last day of each calender quarter. Payments to the Unsecured Creditors will commence on the last day of the first full calendar quarter after the Effective Date. Based upon the Debtor's Schedules that Class 4 Claims will be approximately $20,000. The Class 4 creditors will be paid in full under this Plan. * Class 5 (Current Shareholders) are not impaired under the Plan. The current shareholders will receive no payments under the Plan, and the current stockholders shall retain their existing interests. The Class 5 shareholders are not impaired under this Plan. Debtor anticipates using the on-going business income of the Debtor to fund the Plan. All payments under the Plan shall be made through the Disbursing Agent. A full-text copy of the Disclosure Statement dated Nov. 22, 2021, is available at https://bit.ly/3cP6bCO from PacerMonitor.com at no charge. Attorney for Debtor: Eric A. Liepins, Esq. Eric A. Liepins, PC 12770 Coit Road, Suite 1100 Dallas, TX 75251 Telephone: (972) 991-5591 Facsimile: (972) 991-5788 Email: eric@ealpc.com About J & GC J & GC, Inc., is a company which provides concrete services in the Dallas/ Fort Worth area. The Debtor filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Texas Case No. 21-30964) on May 24, 2021, listing under $1 million in both assets and liabilities. Eric A. Liepins, PC, serves as the Debtor's legal counsel. K R GROUP: Gets Approval to Hire Devon Barclay as Legal Counsel --------------------------------------------------------------- K R Group, LLC received approval from the U.S. Bankruptcy Court for the District of Colorado to employ Devon Barclay, PC as its legal counsel. Devon Barclay will render these services: (a) advise the Debtor regarding its powers, rights, and duties in the continued management and operation of its business; (b) advise the Debtor regarding the operation of its Chapter 11 bankruptcy case; (c) take all necessary actions to protect and preserve the Debtor's estate; (d) prepare legal papers; (e) represent the Debtor's interests at the meeting of creditors; (f) assist and advise the Debtor in the formulation, negotiation, and implementation of a Chapter 11 Plan and all documents related thereto; (g) assist and advise the Debtor with respect to negotiation, documentation, implementation, consummation, and closing of corporate transactions; (h) assist and advise the Debtor with respect to the use of cash collateral and obtain exit financing and negotiate, draft, and seek approval of any documents related thereto; (i) review and analyze all claims filed against the Debtor's bankruptcy estate and to advise and represent the Debtor in connection with the possible prosecution of objections to claims; (j) assist and advise the Debtor concerning any executory contract and unexpired leases; (k) coordinate with other professionals employed in the case to rehabilitate the Debtor's affairs; and to perform all other bankruptcy related legal services for the Debtor. Devon Barclay proposes to be paid a flat fee of $4,000 for this case. Devon Michael Barclay, Esq., an attorney at Devon Barclay, 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: Devon Michael Barclay, Esq. Devon Barclay PC 2435 Ingalls Street Denver, CO 80214 Telephone: (720) 515-9887 Email: devon@devonbarclaypc.com About K R Group K R Group, LLC filed a petition for Chapter 11 protection (Bankr. D. Colo. Case No. 21-15188) on Oct. 12, 2021, listing up to $10 million in assets and up to $500,000 in liabilities. Robin Mann, president, signed the petition. Devon Barclay PC serves as the Debtor's legal counsel. KELLEY HYDRAULICS: Seeks to Hire Weycer as Bankruptcy Counsel ------------------------------------------------------------- Kelley Hydraulics, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of Texas to hire Weycer, Kaplan, Pulaski, & Zuber, P.C. to serve as legal counsel in its Chapter 11 case. The firm's services include: (a) advising the Debtor of its rights, powers, duties and obligations in its bankruptcy case; (b) taking all necessary actions to protect and preserve the estate of the Debtor, including the prosecution of actions on the Debtor's behalf, the defense of actions commenced against the Debtor, the negotiation of disputes in which the Debtor is involved, and the preparation of objections with respect to claims filed against the estate; (c) assisting in the investigation of the acts, conduct, assets, and liabilities of the Debtor and any other matters relevant to the case; (d) investigating and potentially prosecuting preference, fraudulent transfer, and other causes of action arising under the Debtor's avoidance powers or which are property of the estate; (e) preparing legal papers; (f) negotiating, drafting and presenting a plan for the reorganization of the Debtor's financial affairs and related documents; and (g) performing all other necessary legal services for the Debtor. The firm's hourly rates are as follows: Jeff Carruth, Esq. $485 per hour Other Shareholders $485 per hour or less Associates $300 per hour or less Paralegals $150 per hour The Debtor paid $16,800 to the firm as a retainer fee. Jeff Carruth, Esq., the firm's attorney who will be providing the services, disclosed in a court filing that he is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Jeff Carruth, Esq. Weycer, Kaplan, Pulaski, & Zuber, P.C. 3030 Matlock Road, Suite 201 Arlington, TX 76105 Tel: (713) 341-1158 Fax: (866) 666-5322 Email: jcarruth@wkpz.com About Kelley Hydraulics Inc. Kelley Hydraulics, Inc. filed a petition for Chapter 11 protection (Bankr. S.D. Tex. Case No. 21-33269) on Oct. 5, 2021, listing as much as $50,000 in both assets and liabilities. Joe Kelley, president and director, signed the petition. Judge Marvin Isgur oversees the case. The Debtor tapped Jeff Carruth, Esq., at Weycer, Kaplan, Pulaski, & Zuber, P.C. as legal counsel. KOSSOFF PLLC: Founder to Surrender to Manhattan District Atty. -------------------------------------------------------------- Rick Archer and Emma Whitford of Law360 report that the Manhattan District Attorney's Office told a bankruptcy judge Tuesday that New York real estate attorney Mitchell Kossoff, who is under investigation for the misuse of client funds, is expected to surrender on Dec. 3, 2021 before entering a guilty plea in state court to unspecified charges. Attorney Mitchell Kossoff is expected to surrender to authorities and plead guilty at New York State Supreme Court in Manhattan. In a letter to U. S. Bankruptcy Judge David Jones, Manhattan District Attorney Cyrus Vance Jr.'s office said Kossoff -- who is already facing civil claims he misused millions in client funds. About Kossoff PLLC Kossoff PLLC is a real estate law firm based in New York City. It operated as a law firm with offices located at 217 Broadway in New York City. The firm held itself out as a law firm that provided full-service real estate legal services specializing in litigation and transactional matters, including leasing, sale and acquisition of real property, commercial landlord tenant matters, real estate litigation, and city, state and federal agency regulatory matters Mitchell H. Kossoff, the firm's founder and only known managing member, is alleged to have failed to and/or refused to return millions of dollars of client funds when requested by clients. Since on or about April 1, 2021, Kossoff's whereabouts have been unknown, and Kossoffhas ceased all communications with the Debtor's clients and with the attorneys and staff who were employed by the Debtor. Kossoff PLLC is subject to an involuntary petition for Chapter 7 bankruptcy (Bankr. S.D.N.Y. Case No. 21-10699) by creditors on April 13, 2021. The case is handled by Honorable Judge David S. Jones. Gran Sabana Corp NV, Louis & Jeanmarie Giordano, and other former clients of the Debtor signed the involuntary petition. Carter Ledyard & Milburn LLP, led by Aaron R. Cahn, represents the petitioners. Veteran restructuring lawyer Albert Togut of Togut, Segal & Segal LLP, was named as Chapter 7 Trustee. He tapped his own firm as counsel in the case. LATAM AIRLINES: Nears Exiting Chapter 11 Bankruptcy --------------------------------------------------- Joshua Fineman of Seeking Alpha reports that Latam Airlines Group (OTCPK:LTMAQ) is said close to a Chapter 11 exit backed by some unsecured creditors as it tried to fend off overtures from rival Brazilian carrier Azul SA. (NYSE:AZUL). LTMAQ is down 15% after dropping earlier in the day. The Chilean airline is close to a restructuring deal with large unsecured creditors and some shareholders that would help it exit bankruptcy, according to a WSJ report, citing people familiar. A Latam representative told the paper that it's trying to file its reorganization plan by Friday, November 19, 2021. Azul founder and Chairman David Neeleman told Chilean newspaper Diario Financiero that he would likely make an offer, though it would have to be after Nov. 23, when the regulatory limit for reaching a restructuring agreement ends, Reuters reported earlier this November 2021. Deutsche Bank earlier this month cut Latam Airlines (OTCPK:LTMAQ) to sell from hold and reduced its price target to $0 from $2, writing that "we count on one hand the number of airline bankruptcies (out of more than 100) in which equity holders received some consideration under the plan or reorganization." 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. LEGAL ADVOCACY: Seeks to Employ UHY LLP as Accountant ----------------------------------------------------- Legal Advocacy, P.C. seeks approval from the U.S. Bankruptcy Court for the Central District of California to hire UHY, LLP to prepare its federal and state tax returns and assist with other financial matters. The firm's hourly rates are as follows: Daniel P. Markey $425 per hour Dan Felstow $375 per hour Matt Munn $370 per hour Brad Michael $235 per hour Justine Campbell $185 per hour Staff Accountants $150 - $200 per hour Administrative Assistant $100 per hour Daniel Markey, a senior partner at UHY, disclosed in a court filing that he is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Daniel P. Markey UHY, LLP 12900 Hall Rd., Suite 500 Sterling Heights, MI 48313 Phone: 586-254-1040 Email: dmarkey@uhy-us.com About Legal Advocacy Legal Advocacy, P.C., a legal services provider in Los Angeles, filed a petition for Chapter 11 protection (Bankr. C.D. Calif. Case No. 21-18018) on Oct. 18, 2021, listing up to $10 million in both assets and liabilities. Christine Constantino, Jr., agent, signed the petition. Judge Vincent P. Zurzolo oversees the case. The Debtor tapped Vanessa M. Haberbush, Esq., at Haberbush, LLP as legal counsel and UHY, LLP as accountant. LTL MANAGEMENT: Talc Claimants Look to Feb. Hearing on Dismissal ---------------------------------------------------------------- Maria Chutchian of Reuters reports that the Johnson & Johnson subsidiary, LTL Mangement, that holds the company's talc liabilities is tentatively set to defend its decision to file for bankruptcy in February 2022. The newly assigned judge overseeing the Chapter 11 case, U.S. Bankruptcy Judge Michael Kaplan said during a hearing in his Trenton, New Jersey courtroom on Monday that he would block off four days beginning on Feb. 15, 2022 for a hearing on a motion to dismiss the bankruptcy. The motion will be filed soon by the talc claimants' committee, which represents people who have sued J&J alleging that its talc products cause mesothelioma and ovarian cancer. Monday's hearing was the first in the case since it was transferred from a North Carolina court, where the bankruptcy kicked off. J&J subsidiary LTL Management LLC filed for Chapter 11 protection in October to consolidate and settle around 38,000 talc-related legal claims. J&J maintains that its talc products are safe and that bankruptcy is the best way to handle the claims. Kaplan said on Monday, November 22, 2021, that he understood that "a number of you here would prefer not to be in Trenton," referring to J&J's intention to pursue the bankruptcy in the Western District of North Carolina, a court that has garnered a reputation for being friendly to businesses looking to rid themselves of asbestos liabilities. But U.S. Bankruptcy Judge Craig Whitley decided earlier this month that the case should be in New Jersey, where J&J is headquartered and where a large chunk of the talc litigation is concentrated. "We'll play the hand that's dealt us," Kaplan said of the case being moved to his court. Shortly after Whitley transferred the case to New Jersey, J&J announced plans to spin off its consumer health division from its pharmaceutical business. The company has said the move has nothing to do with its talc liabilities. However, the talc claimants committee challenged that position in court papers, saying that a spinoff would create barriers between the claimants and J&J assets that could be used to compensate them. The committee has disputed the legitimacy of the bankruptcy overall, saying J&J is trying to use it to gain an upper hand in existing talc litigation by preventing plaintiffs from having their day in court. One major case that has been pending for five years is on the verge of trial. LTL plans to request mediation during the bankruptcy, which Kaplan said he generally supports. For LTL Management: Gregory Gordon, Dan Prieto, Amanda Rush and Brad Erens of Jones Day For the committee: David Molton of Brown Rudnick; Melanie Cyganowski of Otterbourg; Daniel Stolz of Genova Burns; Brian Glasser of Bailey Glasser; Lenard Parkins of Parkins Lee & Rubio; and Jonathan Massey of Massey & Gail About LTL Management LTL Management LLC is a subsidiary of Johnson & Johnson (J&J), which was formed to manage and defend thousands of talc-related claims and oversee the operations of Royalty A&M. Royalty A&M owns a portfolio of royalty revenue streams, including royalty revenue streams based on third-party sales of LACTAID, MYLANTA/MYLICON and ROGAINE products. LTL Management filed a petition for Chapter 11 protection (Bankr. W.D.N.C. Case No. 21-30589) on Oct. 14, 2021. The case was transferred to New Jersey (Bankr. D. N.J. Case No. 21-30589) on Nov. 16, 2021. The Hon. Michael B. Kaplan is the case judge. At the time of the filing, the Debtor was estimated to have $1 billion to $10 billion in both assets and liabilities. The Debtor tapped Jones Day and Rayburn Cooper & Durham, P.A. as bankruptcy counsel; King & Spalding, LLP and Shook, Hardy & Bacon LLP as special counsel; McCarter & English, LLP as litigation consultant; Bates White, LLC as financial consultant; and AlixPartners, LLP as restructuring advisor. Epiq Corporate Restructuring, LLC is the claims agent. U.S. Bankruptcy Administrator Shelley Abel formed an official committee of talc claimants in the Debtor's Chapter 11 case. The committee tapped Bailey & Glasser, LLP, Otterbourg, P.C. and Brown Rudnick, LLP as bankruptcy counsel. Massey & Gail, LLP and Parkins Lee & Rubio, LLP serve as the committee's special counsel. About Johnson & Johnson Johnson & Johnson is an American multinational corporation founded in 1886 that develops medical devices, pharmaceuticals, and consumer packaged goods. It is the world's largest and most broadly based healthcare company. Johnson & Johnson is headquartered in New Brunswick, New Jersey, the consumer division being located in Skillman, New Jersey. The corporation includes some 250 subsidiary companies with operations in 60 countries and products sold in over 175 countries. The corporation had worldwide sales of $82.6 billion in 2020. MAGELLAN HOME-GOODS: Taps Schact Law Office as Special Counsel -------------------------------------------------------------- Magellan Home-Goods, Ltd seeks approval from the U.S. Bankruptcy Court for the Western District of Washington to employ Schact Law Office as its special counsel. The Debtor needs the assistance of a special counsel for representation of intellectual property matters. The hourly rates of the firm's counsel are as follows: Michael R. Schacht $275 Dwayne Rogge $210 In addition, the firm will seek reimbursement for expenses incurred. Michael Schacht, Esq., an attorney at Schacht Law Office, 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: Michael R. Schacht, Esq. Dwayne E. Rogge, Esq. Schacht Law Office, Inc. 2801 Meridian Street, Suite 202 Bellingham, WA 98225-2400 Telephone: (360) 647-0400 Facsimile: (360) 647-0412 Email: ms@schachtlaw.com dr@schachtlaw.com About Magellan Home-Goods Magellan Home-Goods Ltd, doing business as Magellan Home Goods, sells patented home goods and small appliances manufactured offshore to retail consumers in the United States. The company is based in Blaine, Wash. Magellan Home-Goods sought protection under Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. W.D. Wash. Case No. 21-11413) on July 24, 2021, listing $2,324,758 in total assets and $2,063,752 in total liabilities. Judge Marc Barreca oversees the case while Geoffrey Groshong is the Subchapter V trustee appointed in the case. The Debtor tapped Neeleman Law Group PC as bankruptcy counsel; Whatcom Law Group and Schacht Law Office, Inc. as special counsel; and Northstar Tax & Accounting as accountant. MALLINCKRODT PLC: Judge Rejects Ch.11 Asbestos Votes Probe ---------------------------------------------------------- Rick Archer of Law360 reports that a Delaware bankruptcy judge on Monday, November 22, 2021, denied a call for a probe into votes cast for the Mallinckrodt Chapter 11 plan by parties with asbestos claims against the drugmaker, saying the company had met the legal standard for checking the validity of the ballots. U.S. Bankruptcy Judge John Dorsey delivered a virtual bench ruling rejecting arguments by a group with antitrust claims against Mallinckrodt that an examiner is needed in part because an attorney representing asbestos claimants in this case was found to have submitted an invalid ballot in the Imerys Talc America bankruptcy last October 2021, saying there are significant differences. About Mallinckrodt PLC Mallinckrodt -- http://www.mallinckrodt.com/-- is a global business consisting of multiple wholly-owned subsidiaries that develop, manufacture, market and distribute specialty pharmaceutical products and therapies. The company's Specialty Brands reportable segment's areas of focus include autoimmune and rare diseases in specialty areas like neurology, rheumatology, nephrology, pulmonology and ophthalmology; immunotherapy and neonatal respiratory critical care therapies; analgesics; and gastrointestinal products. Its Specialty Generics reportable segment includes specialty generic drugs and active pharmaceutical ingredients. On Oct. 12, 2020, Mallinckrodt plc and certain of its affiliates sought Chapter 11 protection in Delaware (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. A confirmation trial for the Debtors' First Amended Joint Plan of Reorganization was set to begin Nov. 1, 2021. The Confirmation Hearing is slated to have two phases. Phase 1 commenced the week of Nov. 1. Phase 2 will begin on or around the week of Nov. 15, when the Acthar Administrative Claims Hearing proceedings conclude. MCK USA 1: Creditors to Get Proceeds from Sale of Apartment 1903 ---------------------------------------------------------------- MCK USA 1, LLC, filed with the U.S. Bankruptcy Court for the Southern District of Florida a Plan of Reorganization for Small Business dated Nov. 22, 2021. The Debtor is a Florida limited liability company. Since January 20, 2015, the Debtor has been in the business of owning and operating two high-end luxury apartments and renting them for market rate. The Plan Proponent's financial projections show that the Debtor will have projected disposable income of $1,150,000.00 from the sale of Apartment 1903, depending on the Court's ruling on November 30, 2021, plus any additional income from the sale or rental of Apartment 1901. The final Plan payment is expected to be paid on February 1, 2022, with any additional payments to be made from the sale or rental of Apartment 1901. This Plan of Reorganization proposes to pay creditors of the Debtor from the sale proceeds from Apartment 1903, with any remaining claims to be paid from either sale proceeds from Apartment 1901, or a portion of rent proceeds on a monthly basis from the rental of Apartment 1901. Non-priority unsecured creditors holding allowed claims will not receive distributions. This Plan also provides for the payment of administrative and priority claims. Class 2 consists of the Secured Claim of ATTA Investment, LLC, Miami-Dade County Tax Collector, CCH FL 2 LLC, TLGFY, LLC, FIG 1836, LLC FBO SEC PTY, and The Crimson Condominium Association, Inc. Class 2 is impaired by this Plan. Each member of this class will receive a pro rata share of the remaining sale price of $1,1500,000.00 of Apartment 1903, after the Broker Bruno Baiao receives his commission, and after any related sales costs as disclosed in the contract are calculated, and after payment of all administrative claims. Such payment shall be made within 10 days of the closing date of the sale of Apartment 1903, but in no case later than February 1, 2022. Each secured creditor shall retain their lien for any outstanding amount after this pro rata payment in Apartment 1901. There are no Class 3 Non-priority unsecured claims. In order to fund the first portion of the payouts considered under this Plan, Apartment 1903 will be sold for $1,150,000.00 to the current tenant. The Broker's commission will be taken out first from the sale proceeds, followed by the administrative claims of the estate: specifically, attorneys' fees for counsel for MCK as well as any pending fees to the Subchapter V Trustee. As of the filing of this Plan, counsel for the Debtor has been paid $3,453.00, and is owed $15,972.00 in fees, plus $376.00 in expenses, for a total of $16,348.00. The Broker fee will be $69,000.00 (6.0% of the purchase price). As such, Class 2 shall receive a pro rata portion of the remaining amount of $1,064,652.00. A full-text copy of the Plan of Reorganization dated Nov. 22, 2021, is available at https://bit.ly/3nRgNaP from PacerMonitor.com at no charge. Attorney for the Plan Proponent: Adina Pollan, Esq. Pollan Legal 1301 Riverplace Blvd., Suite 800 Jacksonville, FL 32207 Tel: 904-475-2187 Email: apollan@pollanlegal.com About MCK USA 1 LLC MCK USA 1, LLC, a Miami, Fla.-based company engaged in renting and leasing real estate properties, filed its voluntary petition for Chapter 11 protection (Bankr. S.D. Fla. Case No. 21-18197) on Aug. 24, 2021. The petition was signed by Mario Peixoto as owner. At the time of the filing, the Debtor disclosed $2 million in assets and $2.29 million in liabilities. Judge Robert A. Mark presides over the case. Adina Pollan, Esq., at Pollan Legal, serves as the Debtor's legal counsel. MIND TECHNOLOGY: Provides Operational Update; Q3 Results on Dec. 8 ------------------------------------------------------------------ MIND Technology, Inc., based on preliminary results, expects to report revenue from the sale of marine technology products for the quarter ended Oct. 31, 2021 of approximately $8.3 million. This represents a sequential increase of approximately 23% over the second quarter of the current fiscal year and approximately 28% over the third quarter of the previous year. Additionally, the Company expects to report a backlog as of Oct. 31, 2021 of approximately $10.0 million. Rob Capps, president and CEO commented, "We are pleased to see that the expected ramp in operations and activity is starting to materialize. As evidenced by the increase in revenues and the strong backlog, we are experiencing an uptick in orders and proposal activity. Our backlog includes orders for commercial sonar and source controller products, but also sonar systems for military applications, including mine counter measure missions. Based on inquiries and active discussions with customers, we expect further activity in all of these segments in the coming weeks. "As previously disclosed, we recently completed an underwritten offering of our 9% Series A Cumulative Preferred Stock," added Capps. "This transaction has provided us with net proceeds of about $9.5 million, after underwriter discounts and other costs. These funds, along with anticipated further proceeds from the liquidation of our land leasing assets, provide us with significant liquidity. We believe this puts us in a strong position to execute on the expected increase in activity and to take advantage of any other opportunities that may present themselves in coming months." Fiscal 2022 Third Quarter Earnings Release and Conference Call Schedule MIND will release financial results for its fiscal 2022 third quarter after the market closes on Wednesday, Dec. 8, 2021. In conjunction with the release, the Company has scheduled a conference call, which will be broadcast live over the Internet, for Thursday, December 9th at 9:00 a.m. Eastern Time / 8:00 a.m. Central Time. What: MIND Technology Fiscal 2022 Third Quarter Earnings Conference Call When: Thursday, December 9, 2021, at 9:00 a.m. Eastern / 8:00 a.m. Central How: Live via phone -- By dialing (412) 902-0030 and asking for the MIND Technology call at least 10 minutes prior to the start time, or Live over the Internet -- By logging onto the web at the address below Where: http://mind-technology.com/ For those who cannot listen to the live call, a replay will be available through Dec. 16, 2021, and may be accessed by dialing (201) 612-7415 and using pass code 13725279#. Also, an archive of the webcast will be available shortly after the call at http://mind-technology.com/for 90 days. For more information, please contact Dennard Lascar Investor Relations at MIND@dennardlascar.com. About Mind Technology Mind Technology, Inc. -- http://mind-technology.com-- provides technology and solutions for exploration, survey and defense applications in oceanographic, hydrographic, defense, seismic and security industries. Headquartered in The Woodlands, Texas, MIND Technology has a global presence with key operating locations in the United States, Singapore, Malaysia and the United Kingdom. Its Klein and Seamap units design, manufacture and sell specialized, high performance sonar and seismic equipment. Mind Technology reported a net loss of $20.31 million for the year ended Jan. 31, 2021, compared to a net loss of $11.29 million for the year ended Jan. 31, 2020. As of April 30, 2021, the Company had $35.52 million in total assets, $8.95 million in total liabilities, and $26.57 million in total stockholders' equity. Houston, Texas-based Moss Adams LLP, the Company's auditor since 2017, issued a "going concern" qualification in its report dated April 16, 2021, citing that "The Company has a history of losses and has had negative cash flows from operating activities in the last two years. The Company may not have access to sources of capital that were available in prior periods. In addition, the COVID-19 pandemic and the decline in oil prices during fiscal 2021 caused a disruption to the Company's business and delays in some orders. Currently management's forecasts and related assumptions support their assertion that they have the ability to meet their obligations as they become due through the management of expenditures and, if necessary, accessing additional funding from the at-the-market program or other equity financing. Should there be constraints on the ability to access capital under the at-the-market program or other equity financing, the Company has asserted that it can manage cash outflows to meet the obligations through reductions in capital expenditures and other operating expenditures." MONSTER INVESTMENTS: Seeks Court Approval to Hire Gheen Accounting ------------------------------------------------------------------ Monster Investments, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Maryland to hire Gheen Accounting and Tax Service Company as its accountant. The Debtor requires the assistance of an accountant to prepare its tax returns and financial reports and maintain its books and records. The firm will be paid $40 to $225 per hour based upon the skill level of the staff assigned to do the work. Barbara Gheen, the firm's enrolled agent who will be providing the services, disclosed in a court filing that she is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Barbara Gheen Gheen Accounting and Tax Service Company 30537 Potomac Way, Suite 106 Charlotte Hall, MD 20622-3180 Tel.: 301-290-1587 Fax: 240-249-3068 About Monster Investments Inc. Monster Investments, Inc. is a Hughesville, Md.-based company primarily engaged in renting and leasing real estate properties. It is the fee simple owner of 28 real properties in Maryland and Florida having an aggregate value of $9.95 million. Monster Investments filed its voluntary petition for Chapter 11 protection (Bankr. D. Md. Case No. 21-16592) on Oct. 19, 2021, listing $10,018,848 in assets and $16,529,878 in liabilities. Donald Bernard, president of Monster Investments, signed the petition. Judge Lori S. Simpson oversees the case. Michael G. Wolff, Esq., at Wolff & Orenstein, LLC represents the Debtor as legal counsel while Gheen Accounting and Tax Service Company serves as the Debtor's accountant. NEW YORK SPORTS CLUB: Buys KettleBell Concepts After Ch. 11 Exit ---------------------------------------------------------------- Pamela Kufahl of Club Industry reports that New York Sports Clubs (NYSC), New York, is acquiring KettleBell Concepts (KBC), New York, for an undisclosed sum, the company announced on Nov. 16, 2021. The purchase includes all intellectual property of KBC, as well as other assets. KBC's founder and president, David Ganulin, will continue as an advisor throughout the transition. NYSC, which first implemented KBC programs in 2008, plans to grow the brand across its gym network. NYSC, which was formerly known as Town Sports International before its emergence in December 2020 from a Chapter 11 bankruptcy filing, today operates 65 gyms in the United States and three in Switzerland under brands New York Sports Clubs, Boston Sports Clubs, Philadelphia Sports Clubs, Washington Sports Clubs, Lucille Roberts and Around the Clock Fitness. All qualified NYSC staff can get free certification in KBC’s core programs, and KBC programs will remain open and available to qualified members of the public at the current price, according to the company. KBC has trained over 5,000 instructors globally, the company said. "We believe that the fitness industry needs more professional development as a whole, not less," NYSC CEO Roger Harvey told Club Industry. "We don't intend to price-gouge members of the fitness community that are seeking to better themselves." The purchase of KBC will create an additional revenue stream for NYSC, but the financial aspect was also one of cost savings. To Harvey, kettlebells are one of the most valuable tools in a gym if used properly. And for them to be used properly and added to more of NYSC’s group exercise and small group training programs, more NYSC trainers and instructors must be properly trained on the KBC programs. "If we were paying for these certifications a la carte, over the course of time, the cost of that would start to become much higher [than buying the company]," Harvey said. "While we own the content, we're investing in ourselves. We're creating value within our own organization. So that was a financial decision." The purchase also helps with Harvey's goal to make NYSC one of the most sought-after fitness industry employers because it shows the company invests in staff, which helps with staff recruitment and retention. It will attract to the NYSC brands “the best of the best” who are not already team members because they will see opportunities for professional advancement, Harvey said. It also provides a career path for employees in other parts of the company, such as the corporate administrative team, the welcome team or the cleaning team. Harvey, who became CEO of the company as NYSC was emerging from Chapter 11 in December 2020, knows KBC well. Harvey was introduced to Kettlebell Concepts in February 2010, when he completed the KBC Level 1 workshop inside a New York Sports Club. He was impressed by the course curriculum and follow-up programming, so he sought out Ganulin, becoming a consultant to Kettlebell Concepts from March 2010 to November 2013, he said. Vince Metzo, who as KBC’s director of education from 2004 to 2011 helped create many of the KBC programs, was the instructor for the workshop that Harvey participated in. Metzo was one of the first hires Harvey made when he became CEO at NYSC. Metzo is now director of fitness education for NYSC where he is developing more KBC programs. Despite the investment in the KBC purchase and the new KBC programming being developed, NYSC won’t switch over to kettlebell-only programming, Harvey said, but kettlebells will be incorporated into more of the company's offerings. Ganulin said about the purchase: "A fancy marketing campaign may get new members in the door, but investing in the education of the team so that they're providing new and existing members with the best possible programming for a successful fitness journey is the most essential component of the company's long-term success. I'm excited to see where they take the brand in the next few years." About New York Sports Club New York Sports Club, formerly, Town Sports International, LLC, and its subsidiaries are owners and operators of fitness clubs in the United States, particularly in the Northeast and Mid-Atlantic regions. As of Dec. 31, 2019, Town Sports operated 186 fitness clubs under various brand names, collectively serving approximately 605,000 members. Town Sports owns and operates brands such as New York Sports Clubs, Boston Sports Clubs, Philadelphia Sports Clubs, Washington Sports Clubs, Lucille Roberts and Total Woman. Town Sports and several of its affiliates filed for bankruptcy protection (Bankr. D. Del. Lead Case No. 20-12168) on Sept. 14, 2020. The petitions were signed by Patrick Walsh, chief executive officer. The Debtors were estimated to have $500 million to $1 billion in consolidated assets and consolidated liabilities. The Hon. Christopher S. Sontchi presides over the cases. The Debtors have tapped Kirkland & Ellis and Young Conaway Stargatt & Taylor, LLP as their bankruptcy counsel, and Houlihan Lokey, Inc. as their financial advisor and investment banker. Epiq Corporate Restructuring, LLC serves as claims and noticing agent and administrative advisor. The U.S. Trustee for Region 3 appointed a committee of unsecured creditors on Sept. 24, 2020. The committee is represented by Cole Schotz P.C. NITROCRETE LLC: Seeks to Hire BMC Group as Noticing Agent --------------------------------------------------------- NITROcrete, LLC seeks approval from the U.S. Bankruptcy Court for the District of Colorado to hire BMC Group, Inc. as its noticing agent. The firm's services include: (a) legal noticing and compiling, administering, evaluating, and producing documents and information necessary to support a restructuring effort; (b) receiving and managing creditors' and claimants' information for the purpose of performing the dissemination of notices required in the Debtor's Chapter 11 case; (c) maintaining an up-to-date mailing list and informational database for all entities who have been scheduled as creditors, filed proofs of claim or requests for notices in the bankruptcy case; (d) assisting the Debtor with the administrative management of claims and notice data; (e) if requested, printing, mailing and tabulating ballots for purposes of plan voting; (f) creating and maintaining a case-specific information website; (g) assisting with the production of reports, exhibits and schedules of information or use by the Debtor or to be delivered to the court, the clerk's office, the U.S. trustee or third parties; (h) providing other technical and document management services of a similar nature requested by the Debtor or the clerk's office; and (i) providing any other services agreed upon by the Debtor and BMC Group. The Debtor paid $5,000 to the firm as retainer fee. Tinamarie Feil, co-founder of BMC Group, disclosed in a court filing that she is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Tinamarie Feil BMC Group, Inc. 3732 W. 120th Street Tel: 206.499.2169 Email: tfeil@bmcgroup.com About NITROcrete NITROcrete, LLC and its affiliates filed petitions for Chapter 11 protection (Bankr. D. Colo. Lead Case No. 21-15739) on Nov. 18, 2021. Stephen De Bever, chief executive officer, signed the petitions. In its petition, NITROcrete listed up to $10 million in assets and up to $50 million in liabilities. Judge Kimberley H. Tyson oversees the cases. The Debtors tapped Matthew T. Faga, Esq., at Markus Williams Young & Hunsicker, LLC as legal counsel; Cordes & Company as financial advisor; and SSG Advisors, LLC as investment banker. BMC Group, Inc. is the Debtors' noticing agent. NITROCRETE LLC: Taps Markus Williams Young & Hunsicker as Counsel ----------------------------------------------------------------- NITROcrete, LLC and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Colorado to hire Markus Williams Young & Hunsicker, LLC to serve as legal counsel in their Chapter 11 cases. The firm's services include: (a) assisting in the production of the Debtors' bankruptcy schedules, statement of financial affairs and pleadings; (b) assisting in the preparation of the Debtors' plan of reorganization and disclosure statement; (c) preparing legal papers; (d) representing the Debtors in adversary proceedings and contested matters; (e) providing legal advice with respect to the Debtors' rights, powers, obligations and duties in the continuing operation of their business and the administration of their estate; and (f) providing other necessary legal services for the Debtor. The hourly rates charged by the firm for the services of its attorneys range from $275 to $550. The rate for paralegal services is $125 per hour. Matthew Faga, Esq., the firm's attorney who will be providing the services, disclosed in a court filing that he is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Matthew T. Faga, Esq. Markus Williams Young & Hunsicker, LLC 1775 Sherman Street, Suite 1950 Denver, CO 80203-4505 Tel: (303) 830-0800 Fax: (303) 830-0809 Email: mfaga@Markuswilliams.com About NITROcrete NITROcrete, LLC and its affiliates filed petitions for Chapter 11 protection (Bankr. D. Colo. Lead Case No. 21-15739) on Nov. 18, 2021. Stephen De Bever, chief executive officer, signed the petitions. In its petition, NITROcrete listed up to $10 million in assets and up to $50 million in liabilities. Judge Kimberley H. Tyson oversees the cases. The Debtors tapped Matthew T. Faga, Esq., at Markus Williams Young & Hunsicker, LLC as legal counsel; Cordes & Company as financial advisor; and SSG Advisors, LLC as investment banker. BMC Group, Inc. is the Debtors' noticing agent. NITROCRETE: Seeks to Employ SSG Advisors as Investment Banker ------------------------------------------------------------- NITROcrete, LLC seeks approval from the U.S. Bankruptcy Court for the District of Colorado to hire SSG Advisors, LLC as its investment banker. The firm's services include: (a) preparing informational memoranda and marketing materials regarding the Debtor's historical performance and prospects, existing contracts, marketing and sales, labor force, management, and financial projections; (b) assisting the Debtor in compiling a data room of documentation and information related to a potential sale of its assets; (c) assisting the Debtor in developing a list of suitable buyers; (d) coordinating execution of confidentiality agreements for potential buyers wishing to access the informational memorandum, marketing materials and data room; (e) soliciting competitive offers from potential buyers; (f) assisting the Debtor and its professionals in structuring sale processes, the conduct of any auction, and preparation of a plan of reorganization; (g) advising the Debtor with respect to the sale of its assets, negotiating transaction agreements, and assisting the Debtor and its professionals, as necessary, through the sale closing; and (h) attending conferences, appearing in court and providing testimony in support of a sale of the Debtor's assets. The firm will receive a monthly fee of $20,000. Teresa Kohl, managing director at SSG Advisors, disclosed in a court filing that she is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Teresa C. Kohl SSG Advisors, LLC 300 Barr Harbor Drive, Suite 420 West Conshohocken, PA 19428 Phone: (610) 940-1094 / (610) 940-9521 Fax: (610) 940-4719 Email: tkohl@ssgca.com About NITROcrete NITROcrete, LLC and its affiliates filed petitions for Chapter 11 protection (Bankr. D. Colo. Lead Case No. 21-15739) on Nov. 18, 2021. Stephen De Bever, chief executive officer, signed the petitions. In its petition, NITROcrete listed up to $10 million in assets and up to $50 million in liabilities. Judge Kimberley H. Tyson oversees the cases. The Debtors tapped Matthew T. Faga, Esq., at Markus Williams Young & Hunsicker, LLC as legal counsel; Cordes & Company as financial advisor; and SSG Advisors, LLC as investment banker. BMC Group, Inc. is the Debtors' noticing agent. NITROCRETE: Seeks to Hire Cordes & Company as Financial Advisor --------------------------------------------------------------- NITROcrete, LLC seeks approval from the U.S. Bankruptcy Court for the District of Colorado to hire Cordes & Company as its financial advisor. The firm's services include: (a) assembling financial information necessary to determine the value of the Debtor's assets; (b) projecting the Debtor's income and expenses to facilitate a discounted cash flow valuation and to generate weekly cash flow projections; and (c) estimating a pro forma operating year when economic conditions normalize. The firm's hourly rates are as follows: Michael Staheli $335 per hour Steven Cerny $195 per hour Supporting Staff $75 - $285 per hour The Debtor paid $25,000 to the firm as a retainer fee. Michael Staheli, managing director at Cordes & Company, disclosed in a court filing that he is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Michael Staheli Cordes & Company 5299 DTC Boulevard, Suite 600 Greenwood Village, CO 80111 Tel: 303-796-1130 Email: mstaheli@cordesco.com About NITROcrete NITROcrete, LLC and its affiliates filed petitions for Chapter 11 protection (Bankr. D. Colo. Lead Case No. 21-15739) on Nov. 18, 2021. Stephen De Bever, chief executive officer, signed the petitions. In its petition, NITROcrete listed up to $10 million in assets and up to $50 million in liabilities. Judge Kimberley H. Tyson oversees the cases. The Debtors tapped Matthew T. Faga, Esq., at Markus Williams Young & Hunsicker, LLC as legal counsel; Cordes & Company as financial advisor; and SSG Advisors, LLC as investment banker. BMC Group, Inc. is the Debtors' noticing agent. NOISE SOLUTIONS: Has Deal on Cash Collateral Access Thru Jan 2022 ----------------------------------------------------------------- Noise Solutions USA, Inc. asks the U.S. Bankruptcy Court for the Western District of Pennsylvania for authority to use cash collateral on an interim basis and provide adequate protection payments to First National Bank of Pennsylvania. The Debtor filed the motion in response to a tentative agreement in principle reached between the Debtor and FNB regarding the use of cash collateral and grant of adequate protection. The agreement is subject to the completion and approval of a budget by FNB, which is currently being prepared. The proposed budget will be filed as amended exhibit once received and submitted to FNB. To protect each Parties rights, and to ensure future business operations are not disturbed, the Debtor filed the Motion requesting interim relief to preserve the status quo and will request final relief at later time at the Court's discretion. On August 8, 2013, FNB extended to Noise Solutions a $1,000,000 loan pursuant to the terms of a Promissory Note dated August 8, 2013, executed and delivered by Debtor in favor of FNB. The Debtor needs to use the cash collateral to conduct its day-to-day business operations. The Debtor reaffirms and ratifies all of the Loan Documents, including all terms, conditions and obligations thereunder and further acknowledges and agrees that as of November 5, 2021, the indebtedness under the terms of the Loan Documents related to the Debtor's Loan is $463,036. FNB consents, retroactively, to the Debtor's use of the cash collateral on and after the Petition Date, which authority to use cash collateral terminates on the earlier of January 21, 2022 or the date set by the Court for a final hearing on cash collateral, unless terminated sooner upon five business days' written notice to the Debtor and its counsel via email due to an Event of Default. The Debtor will be permitted to use cash collateral only for the purposes set forth in the Budget, with a 10% variance. As partial adequate protection for FNB's interest in and to the cash collateral, FNB will be granted a replacement lien on and a security interest in all post-petition property of the Debtor of the same type and priority FNB held pre-petition. As additional partial adequate protection for Debtor's use of cash collateral, FNB will be entitled to an administrative priority pursuant to section 507(b) of the Bankruptcy Code to the extent such use, consumption, sale, collection or other disposition results in any diminution in the value of FNB's security interest in or lien upon such cash collateral. As further protection for FNB's interests in the cash collateral, the Debtor will immediately pay $1,616 to FNB on or before December 1, 2021 and continue paying FNB $1,616 on the first day of each month thereafter until the Stipulation terminates. These events constitute "Events of Default:" a. The Debtor's breach of any provision, term or condition of the Stipulation, failure to timely provide the financial information, reports, comply with the budget or provide budget detail requested by FNB; b. The conversion or dismissal of the Debtor's Chapter 11 case, or application or motion by or against the Debtor for such conversion or dismissal, unless FNB consents to such dismissal or conversion; c. The refusal or failure of the Bankruptcy Court to approve the Stipulation; or d. The failure of the Debtor to observe or perform any term, condition, covenant or provision under the Loan Documents after any applicable cure period, except to the extent modified by the Stipulation. A copy of the motion is available at https://bit.ly/3lakOp3 from PacerMonitor.com. About Noise Solutions Noise Solutions (USA), Inc. is a Sharon, Pa.-based provider of engineered industrial noise suppression for the energy sector. Noise Solutions filed its voluntary petition for Chapter 11 protection (Bankr. W.D. Pa. Case No. 21-10616) on Nov. 5, 2021, listing up to $50,000 in assets and up to $10 million in liabilities. Scott K. MacDonald, president and chief executive officer, signed the petition. Donald R. Calaiaro, Esq., at Calaiaro Valencik represents the Debtor as legal counsel. NORTHERN OIL: Grants Underwriters 30-Day Option to Buy More Shares ------------------------------------------------------------------ Northern Oil and Gas, Inc. entered into an underwriting agreement with its stockholders, Cresta Investments, LLC and Cresta Greenwood, LLC, and with Morgan Stanley & Co. LLC and BofA Securities, Inc., as representatives of the other several underwriters relating to its previously announced public offering of 10,000,000 shares of its common stock, par value $0.001 per share, which includes 9,500,000 shares of common stock being offered by the company and 500,000 shares of common stock being offered by the selling stockholders. Under the terms of the Underwriting Agreement, Northern Oil and Gas granted the underwriters a 30-day option to purchase up to 1,500,000 additional shares of common stock from the company, which option was exercised in full on Nov. 19, 2021. The equity offering, including the sale of the option shares, closed on Nov. 22, 2021. Northern Oil and Gas did not receive any proceeds from the sale of shares by the selling stockholders. The selling stockholders' participation in the offering is driven solely by tax planning purposes and 100% of proceeds received by selling stockholders from the offering will be used for charitable purposes. Northern Oil and Gas expects to use the net proceeds from the equity offering and, to the extent necessary, cash on hand or borrowings under the company's revolving credit facility to fund the purchase price for the company's recently announced pending acquisition of oil and gas properties, interests and related assets located in the Permian Basin from certain entities affiliated with Veritas Energy, LLC. Pending the use of proceeds, the company may temporarily apply a portion of the net proceeds from the equity offering to repay outstanding borrowings under its revolving credit facility. If the pending acquisition is not consummated, the company intends to use the net proceeds from the equity offering for general corporate purposes, which may include the repayment of outstanding indebtedness. The equity offering was made pursuant to a prospectus supplement, dated Nov. 17, 2021, and filed with the Securities and Exchange Commission on Nov. 18, 2021, the base prospectus, dated April 15, 2021, filed as part of Northern Oil and Gas' shelf registration statement (File No. 333-255065) filed with the SEC on April 6, 2021 and declared effective on April 15, 2021, and the base prospectus, dated July 3, 2018, filed as part of the company's shelf registration statement (File No. 333-225835) filed with the SEC on June 22, 2018 and declared effective on July 3, 2018. About Northern Oil and Gas Northern Oil and Gas, Inc. -- http://www.northernoil.com-- is an independent energy company engaged in the acquisition, exploration, development and production of oil and natural gas properties, primarily in the Bakken and Three Forks formations within the Williston Basin in North Dakota and Montana. Northern Oil reported a net loss of $906.04 million for the year ended Dec. 31, 2020, compared to a net loss of $76.32 million for the year ended Dec. 31, 2019. As of Sept. 30, 2021, the Company had $1.24 billion in total assets, $1.40 billion in total liabilities, and a total stockholders' deficit of $157.71 million. O'HARE SHELL: Seeks Approval to Tap Bach Law Offices as Counsel --------------------------------------------------------------- O'Hare Shell Partners, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Illinois to employ Bach Law Offices, Inc. as its legal counsel. The firm will render these legal services: (a) negotiate with creditors; (b) prepare a Chapter 11 plan and disclosures statement; (c) examine and resolve claims filed against the estate; and (d) prepare and prosecute adversary matters. Paul Bach, Esq., and Penelope Bach, Esq., the primary attorneys in this engagement, will be billed at their hourly rate of $425. The firm received an initial retainer in the amount of $15,000 from the Debtor. Paul Bach, Esq., and Penelope Bach, Esq., 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: Paul M. Bach, Esq. Bach Law Offices, Inc. P.O. Box 1285 Northbrook, IL 60065 Telephone: (847) 564-0808 Facsimile: (847) 564-0985 Email: pnbach@bachoffices.com About O'Hare Shell Partners Schiller Park, Ill.-based O'Hare Shell Partners, LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ill. Case No. 21-12756) on Nov. 8, 2021, listing as much as $10 million in both assets and liabilities. Dorothy M. Flisk, president, signed the petition. Judge Donald R. Cassling oversees the case. Paul M. Bach, Esq., and Penelope N. Bach, Esq., at Bach Law Offices, Inc. represent the Debtor as legal counsel. PENN HILLS: S&P Assigns 'BB' Rating on 2021A-B Revenue Bonds ------------------------------------------------------------ S&P Global Ratings assigned its 'BB' long-term rating to the Allegheny County Industrial Development Authority, Pa.'s series 2021A and 2021B revenue bonds, issued for Penn Hills Charter School of Entrepreneurship (PHCSE). The outlook is stable. "We assessed Penn Hills Charter School's enterprise profile as adequate, characterized by a small, growing enrollment base with very strong student retention and good academics, an experienced and stable management team, and an adequate charter standing," said S&P Global Ratings credit analyst Jesse Brady. "We assessed the school's financial profile as vulnerable, based on our expectations of modest, yet sufficient, pro forma lease-adjusted MADS coverage considering the new debt issuance, a recent history of very thin operating liquidity that is improving, and a manageable debt burden with no additional debt plans." PHCSE currently has $2.8 million in debt outstanding through a 2018 private loan, which was used to purchase the school's current facility in Pittsburgh, Pa. The school intends to use a portion of the proceeds of the 2021 bonds to repay the loan, with the balance of the proceeds to fund the addition of a second floor to the existing facility and to purchase an adjacent 50-acre parcel of land. The second floor will provide PHCSE with additional enrollment capacity, which will allow enrollment to grow in excess of 500 students in the near term, as well as other auxiliary space. Post-issuance, PHCSE will have approximately $11.9 million in debt outstanding, consisting entirely of the 2021 bonds. The bonds are secured by pledged revenues, which are defined as all revenues or income derived from the operation of the facility, and a mortgage on the financed facilities. Under the loan agreement, the charter school makes payments from a pledge of gross revenues, which S&P views as an equivalent of a general obligation of the charter school. Covenants include: a liquidity test of 45 days' cash on hand and an annual debt service coverage ratio of at least 1.1x, both beginning fiscal year-end 2022; and an additional bonds test requiring a projected 1.2x annual debt service coverage ratio. Additional security is provided by a fully funded debt service reserve. The series 2021 bonds are expected to be structured with level debt service after a two and a half-year interest-only period through 2023. The bonds are issued over a 35-year maturity, with expected pro forma lease-adjusted maximum annual debt service (MADS) of about $680,000, which includes a relatively small rent expense for an off-campus, leased administrative office. S&P said, "The stable outlook reflects our view that PHCSE will continue its trend of good pro forma MADS coverage as it takes on new debt and continues to maintain positive full accrual operations. We also expect that the school's demand profile will reflect stable-to-growing enrollment as they complete the addition of the second floor of their current building, and the school fulfills its plans to add additional home rooms. The outlook further incorporates our expectation that the school will maintain its recently improved liquidity profile." PENN NATIONAL: S&P Upgrades ICR to 'B+', Off CreditWatch Positive ----------------------------------------------------------------- S&P Global Ratings raising its issuer credit rating on U.S. regional gaming operator Penn National Gaming Inc. to 'B+' from 'B', raising all issue-level ratings by one notch, and removing all ratings from CreditWatch with positive implications, where we placed them on July 15, 2021. S&P said, "The stable outlook on Penn reflects our expectation that it will continue to generate good cash flow over the next two years, enabling it to invest in its current portfolio and sustain leverage in the low- to mid-5x area through 2022 (absent potential incremental investments and acquisitions). "The upgrade to 'B+' reflects our lower leverage forecast, driven by strong EBITDA growth and cash flow generation despite headwinds from the pandemic and weather conditions. Penn's EBITDAR grew significantly through the first three quarters of 2021 compared with the corresponding period in 2019 and the second half of 2020, when property closures, operating restrictions, and a weaker public health environment hurt performance. The company's year-to-date EBITDAR through third-quarter 2021 was about 25% higher than in 2019. Penn benefited in the first half of 2021 from easing capacity restrictions, particularly at the end of the second quarter, a generally improved public health environment as vaccines became widely available, the benefit to consumers from government stimulus funds, sizable consumer savings, pent-up demand for gaming, and cost cuts. Although recovery slowed considerably in third-quarter 2021 versus the second quarter as consumers had greater accessibility to travel and entertainment alternatives, depleted of government stimulus funds, reacted to flare ups from the Delta variant in certain operating segments and the impact of the Hurricane Ida on Penn's South operating segment, third-quarter EBITDAR remains more than 20% higher than 2019. This is largely due to a consistent improvement in its margin profile because of cost cuts implemented in 2020 that Penn has been able to sustain. "Given recent operating trends, our forecast for an increase in consumer spending, and the strong demand for gaming, we now expect Penn's 2021 net revenue to be about 10%-15% above 2019, driven by continued strong performance in the company's South and Northeast segments despite the impact of Hurricane Ida on the South segment's third-quarter performance. We also believe the company will maintain many of its previously implemented cost cuts this year, which will support an EBITDAR about 20%-25% higher than 2019. This compares with our previous assumption that its EBITDAR would be about 10%-15% higher than 2019. Because we expect Penn to sustain the majority of its previously implemented cost improvements, we now forecast its EBITDAR will remain about 20% higher than pre-COVID levels in 2022. As a result, we now project its consolidated S&P Global Ratings'-adjusted leverage will remain in the low- to mid-5x area through 2022 absent potential incremental investment and acquisition spending. "We expect digital gaming to be a key revenue driver over the next couple of years. With the completion of the Score Media and Gaming (the Score) acquisition and investments that Penn continues to make in online gaming, we expect Penn to focus on building out this segment. Given the relative infancy of digital gaming, we expect Penn will benefit from its investments in its online gaming segment (given the acceleration of digital gaming approvals and the number of jurisdictions launching or making plans to launch online casinos and sports books over the next few years), as well as the full calendar of sporting events in 2021 and 2022. The acquisition of the Score will give Penn greater control and ownership of its technology stack for its digital gaming and media business. This will lead to more control of product development, customization, and may result in reduced costs and an enhanced customer experience because Penn will no longer rely on a third-party platform. Penn expects the acquisition to be accretive to EBITDA by the second year (2023) and potentially add an incremental $200 million to EBITDA over the medium term. This would further solidify our belief that Penn Interactive could become a larger revenue and EBITDA contributor in the coming years. As such, we continue to expect Penn Interactive to account for a larger proportion of Penn's revenue over the next two years." Potential leveraging acquisitions and financial policy decisions are increasingly important risk factors. Penn has indicated that it intends to continue to invest in its business, particularly on the digital side, and signaled that it will keep looking into acquiring properties, including possibly an asset on the Las Vegas Strip. Penn participated in the bidding for the operations of the Cosmopolitan, which sold for $1.625 billion and leased for an initial annual rent of $200 million. S&P said, "We expect additional assets will be available for sale in Las Vegas over the coming months and Penn could participate in the bidding process for those as well. Although we expect Penn to remain opportunistic in pursuing acquisitions and access the favorable credit markets or use its stockpiled cash balance to complete them, our updated base-case forecast does not assume the company makes any further material leveraging acquisitions. Nevertheless, our forecast for leverage to be in the low- to mid-5x area through 2022 provides some cushion to our 6.5x downgrade threshold to absorb moderately leveraging acquisitions and potential operating volatility." S&P said, "The stable outlook on Penn reflects our expectation that it will continue to generate good cash flow over the next two years, enabling it to invest in its current portfolio and sustain leverage in the low- to mid-5x area through 2022 (absent potential incremental investments and acquisition spending). "We could lower the rating if we believe Penn will sustain adjusted leverage above 6.5x. This could occur if the company unexpectedly takes a more aggressive posture toward development opportunities in its portfolio or pursued material leveraging acquisitions. It could also occur because of a weaker-than-anticipated operating performance stemming from economic or competitive pressures. In a downturn, Penn experiences a greater level of cash flow and credit measure volatility because of its sizable fixed rent payments. "We could consider higher ratings if we expect the company to sustain adjusted leverage below 5.5x, even after incorporating potential growth investments in its portfolio or leveraging acquisitions." PHI GROUP: Incurs $6 Million Net Loss in First Quarter ------------------------------------------------------ PHI Group, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $5.96 million on $20,000 of total revenues for the three months ended Sept. 30, 2021, compared to a net loss of $336,264 on $5,000 of total revenues for the three months ended Sept. 30, 2020. As of Sept. 30, 2021, the Company had $3.56 million in total assets, $6.08 million in total liabilities, and a total stockholders' deficit of $2.51 million. The Company has accumulated deficit of $56,523,700 as of Sept. 30, 2021 and a stockholders' deficit. For the quarter ended Sept. 30, 2021, the Company incurred a net loss. The Company said these factors as well as the uncertain conditions that the Company faces in its day-to-day operations with respect to cash flows create an uncertainty as to the Company's ability to continue as a going concern. Management has taken action to strengthen the Company's working capital position and generate sufficient cash to meet its operating needs through June 30, 2022 and beyond. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/0000704172/000149315221029573/form10-q.htm About PHI Group Headquartered in Irvine, California, PHI Group, Inc. (www.phiglobal.com) primarily focuses on advancing PHILUX Global Funds, a group of Luxembourg bank funds organized as "Reserved Alternative Investment Fund", and building the Asia Diamond Exchange in Vietnam. The Company also engages in mergers and acquisitions and invests in select industries and special situations that may substantially enhance shareholder value. PHI Group reported a net loss of $7 million for the year ended June 30, 2021, compared to a net loss of $1.32 million for the year ended June 30, 2020. As of June 30, 2021, the Company had $892,228 in total assets, $7.69 million in total liabilities, and a total stockholders' deficit of $6.80 million. PHRG INTERMEDIATE: S&P Assigns 'B' ICR, Outlook Stable ------------------------------------------------------ S&P Global Ratings assigned its 'B' issuer credit rating to Pennsylvania-based exterior home remodeling company PHRG Intermediate LLC (dba Power Home Remodeling Group), the borrower of the debt and issuer of the audited financial statements. S&P said, "At the same time, we assigned our 'B' issue-level and '3' recovery ratings to the company's proposed revolver and first-lien term loan maturing in 2026 and 2027, respectively. "The stable outlook reflects our expectation that continued strong residential remodeling activity will support high organic growth and help achieve EBITDA margins in the 15%-16% area in 2022. As a result, we expect the company to generate about $90 million in free operating cash flow (FOCF) over the next 12 months and adjusted leverage to decline to the low-3x area from the mid-4x area at fiscal year ended December 2021." Power Home' relatively small scale, narrow focus on the fragmented and cyclical home remodeling industry, and geographic and supplier concentration constrain our business assessment. Demand for the company's services is cyclical given that remodeling volumes are highly sensitive to general macroeconomic and local economic conditions that the company has no control over. Furthermore, the market for residential remodeling is highly fragmented and competitive, with relatively low barriers to entry and pricing power. For example, the pandemic-related lockdown weighed on operating performance in 2020, resulting in more than 38% revenue declines. Additionally, Power Home operates in only 17 territories (as of November 2021) and is dependent on a handful of key suppliers. Power Home is well positioned over the next 12-24 months to benefit from the booming home remodeling demand. The company has become a leading residential exterior replacement provider, with 2021 revenues expectation of above $710 million. S&P expects the company to benefit from the strong growth in home improvement and maintenance expenditures, which will increase revenue about 20% over the coming year. The company offers complementary products such as windows, roofing, siding, gutters, doors and a well-established new market expansion and operating playbook that has helped to drive cross-selling opportunities. Furthermore, its proprietary and integrated business management technology platform supports sales productivity and operating efficiency. Another positive consideration is the renewed interest in energy efficiency programs, which should translate into upgrades of windows, insulation, and solar products. S&P Global Ratings economists predict that the federal government's infrastructure plans will likely benefit building materials because even though the proposed programs are not purely building-related (i.e., health and climate rather than roads and bridges); this sector is well positioned for above-trend growth given the constant demand from economic expansion and the pent-up demand from aging hard assets like homes. Furthermore, the company benefits from good operating flexibility and service quality. The company has good operational flexibility because it does not manufacture its products and outsources its installation services. S&P believes Power Home's marketing and customer experience management are key advantages that set it apart from its peers. Power Home markets directly to homeowners, using an at-home sales demonstration and neighborhood references to effectively target interested leads and educate customers on its products and service quality. Its product and installations quality assurance guarantee support its ability to charge slightly higher prices and maintain strong sales closure rates. S&P said, "As operating performance recovers from the COVID-19 disruptions, we expect EBITDA margin expansion to lead to adjusted leverage improving to the low-3x area in 2022. However, we view the debt-funded dividend as a sign of an aggressive financial policy.During the pandemic, Power Home shut down its entire operations and gradually resumed as the lockdown eased starting in mid-2020. As a result, revenue declined by 38% to about $484 million in the fiscal year ended December 2020, compared to $780 million during the same period in 2019, leading to a sharp decline in EBITDA margins. In 2021 we expect revenue to jump to about $711 million with adjusted EBITDA margins recovering to the 14% area. "Over the next year, we expect Power Home's revenues to increase about 20%. Organic revenue growth will mainly be driven by residential repair and remodel end-market tailwinds and market share gains as the company expands into new states and gains higher penetration into its existing markets. We also anticipate the company will benefit from its improved scale and leverage its proprietary enterprise resource planning system to drive operating efficiency, resulting in margins above its 2019 levels and in the 16% area. Additionally, the company successfully implemented price increases in 2021, which will further drive margin improvement, resulting in adjusted leverage in the low-3x area with FOCF/debt in the 20% range by year ended-2022. "Power Home's financial policy track record is limited despite our base-case forecast that adjusted leverage should fall below 4x over the next 12 months. The company is using debt to fund large shareholder distributions, resulting in the risk that the company maintains its aggressive financial policy. "Moreover, several headwinds could dampen the company's rapid growth over the medium term. While we view the exterior residential remodeling market as relatively more stable than interior remodeling, the rising costs of labor and raw materials and increasing interest rates could damper the recent growth acceleration in the industry. The company generally performs in a cost-plus environment and can pass through rising costs onto the customers, who in turn might delay installation projects as a result. Additionally, with an average project cost being about $15,000, a rising interest rate environment would affect access to financing for home renovation projects. That said, while exterior remodeling projects can be delayed, they are less discretionary in nature than interior remodeling, which would help taper any downward demand pressures. However, these negative pressures could drive more individual homeowners to look for cheaper alternatives than Power Home. "The stable outlook reflects our expectation that continued strong residential remodeling activity will support the company's high organic growth and help achieve EBITDA margins in the 15%-16% range in 2022. As a result, we expect the company to generate about $90 million in FOCF over the next 12 months and adjusted leverage to decline to the low-3x area, from the mid-4x area as of the fiscal year ended December 2021. "We could lower the rating if Power Home's growth trajectory stalls, if the company encounters unforeseen operational challenges as it continues to grow, or an economic downturn challenges its ability to pass increasing costs through to customers. This could include declines in profitability as it expands its geographic footprint, or as a result of intense competition as it enters new markets, leading to EBITDA margins to collapse below 8% and leverage approaching 6x. We could also lower the rating if the company shifts to a more aggressive financial policy. "We could raise the rating on Power Home if it meets its growth expectations while maintaining a generally prudent financial policy. We believe continued organic growth and stable levels of profitability would demonstrate this, along with the allocation of discretionary cash flow toward debt prepayment over the next year." These scenarios would be in line with: -- S&P's increased confidence that adjusted leverage to fall and remain below 4x; and -- EBITDA margins will improve and be sustained in the mid-to-high teen-percent area. PREFERRED READY-MIX: Bid to Use Cash Collateral Moot ---------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Texas has rendered moot the request to access cash collateral filed by Preferred Ready-Mix, LLC as the Debtor's secured lender has consented to the use of cash collateral by email. On November 24, 2021, the Court held a hearing on the Debtor's request. The record and docket entry reflect that counsel were to file a listing of pre-petition accounts receivable and amounts on deposit as of the date of the bankruptcy filing so that the Court could draft and authorize the use of cash collateral. The Court was only willing to authorize a replacement lien for the secured lender to the extent that collateral securing the lien existed as of the filing date. Thereafter, the Debtor filed (a) a notice of consent to use cash by the secured lender and (2) an exhibit list. The Court has reviewed the exhibit list. The Court held that the Preferred Ready-Mix A/R Aging Detail is confusing and contrary to the testimony of the Debtor's representative at the hearing. The Debtor testified that as of the filing date there were $6,000 in prepetition receivables for the secured creditors lien to attached and that cash on deposit was from a cash job that occurred post-petition. The report details $628,241 in receivables more than 90 days old, $18,230 in receivables 31 to 60 days old, $4,131 in receivables 1 to 30 days old and $8,170 in current receivables all of which are post-petition and to which the secured creditor's lien did not attach. "There is highlighting and handwriting on the exhibit which further confuses what the debtor is attempting to represent to the court. In the exhibits current unclear form, the Court cannot draft an appropriate order and therefore the motion is abated. However, due to the secured lender's consent to use cash collateral, the Debtor's Motion to Use Cash Collateral is moot," the Court said. A copy of the order is available at https://bit.ly/3HSPvsr from PacerMonitor.com. About Preferred Ready-Mix Preferred Ready-Mix, LLC filed a petition for Chapter 11 protection (Bankr. S.D. Tex. Case No. 21-33369) on Oct. 14, 2021, listing as much as $1 million in both assets and liabilities. Lincoln M. Catchings, III, vice president, signed the petition. Judge Jeffrey P. Norman oversees the case. The Debtor tapped Jessica L. Hoff, Esq., at Hoff Law Offices, P.C. as legal counsel. PRIME GLOBAL: Seeks to Hire Forensic Internal Audit as Accountant ----------------------------------------------------------------- Prime Global Group, Inc. seeks approval from the U.S. Bankruptcy Court for the Middle District of Florida to employ Forensic Internal Audit, Inc. as its accountant. Forensic Internal Audit will render these services: (a) advise and assist the Debtor in its analysis and monitoring of the Debtor's historical, current and projected financial affairs; (b) advise and assist the Debtor with respect to the use of cash; (c) prepare monthly operating reports; (d) attend Debtor meetings, court hearings, and auctions as may be required; (e) prepare tax returns; (f) render such other general business consulting or assistance as the Debtor or its counsel may deem necessary; and (g) assist in preparing a plan of reorganization. Forensic Internal Audit proposes to charge the Debtor $75 per hour for its services. Paula Davis, a manager at Forensic Internal Audit, disclosed in a court filing that her firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Paula Davis Forensic Internal Audit, Inc. 1025 S. Beach Street, Unit 133 Daytona Beach, FL 32114 Email: fiaincinfo@gmail.com About Prime Global Group Ormond Beach Fla.-based Prime Global Group, Inc. filed a petition for Chapter 11 protection (Bankr. M.D. Fla. Case No. 21-04689) on Oct. 15, 2021, listing up to $1 million in assets and up to $10 million in liabilities. Stephen Honczarenko, chief executive officer, signed the petition. Judge Karen S. Jennemann oversees the case. The Debtor tapped Herron Hill Law Group, PLLC as legal counsel and Forensic Internal Audit, Inc. as accountant. PRINTPACK HOLDINGS: Moody's Affirms B1 CFR, Outlook Remains Stable ------------------------------------------------------------------ Moody's Investors Service affirmed Printpack Holdings, Inc.'s B1 Corporate Family Rating, B1-PD Probability of Default rating, and B1 senior secured first lien term loan rating. The outlook is stable. Affirmations: Issuer: Printpack Holdings, Inc. Corporate Family Rating, Affirmed B1 Probability of Default Rating, Affirmed B1-PD Senior Secured 1st Lien Term Loan, Affirmed B1 (to LGD3 From LGD4) Outlook Actions: Issuer: Printpack Holdings, Inc. Outlook, Remains Stable RATINGS RATIONALE Printpack's B1 Corporate Family Rating is constrained by the company's modest operating margins, high revenue concentration and competitive dynamics in a highly fragmented industry. In addition, the rating reflects Printpack's largely commoditized product line and lags on raw material cost pass-throughs, which can sometimes be lengthy. At the same time, the rating reflects the company's defensive end market, high recurring revenue, low leverage, and long-standing relationships with blue-chip customers. Additionally, around 90% of revenue is under contract and approximately 100% of revenue has contractual cost pass-throughs for raw materials. Printpack has some exposure to faster-growing markets such as pet food and medical products; however, both markets account for only a small percentage of sales. The company spends about 1%-2% of sales annually on R&D and new product development that supports its low but stable growth. Leverage is modest providing financial flexibility. At fiscal year-end 2022 (June 2022), inclusive of Moody's adjustments, leverage is expected below 3.5x. Governance considerations include Printpack's private family ownership structure, which can lead to a more aggressive financial policy. However, the company has historically demonstrated a conservative financial policy relative to many other similarly rated packaging manufacturers owned by private equity investors. To that end, the company has not made significant acquisitions and dividends have historically been paid via free cash flow. The stable outlook reflects Moody's expectation that Printpack will modestly grow revenue, improve profitability, increase free cash, and maintain a conservative approach to balance sheet management and liquidity. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The rating could be upgraded if Printpack sustainably improves its credit metrics within the context of a stable operating and competitive environment while maintaining good liquidity. The company would also need to improve its margins through increasing its proportion of lesser commoditized products, and increasing its scale (revenue) and free cash flow generation. Quantitatively, credit metrics would need to be sustained such that debt / EBITDA is below 4.0x or EBITDA / interest is above 5.0x. The ratings could be downgraded if there is deterioration in credit metrics, liquidity, or the operating environment. Quantitatively, the ratings could be downgraded if debt / EBITDA increased to above 5.0x, EBITDA / interest expense declined below 4.0x, or free cash flow and liquidity deteriorate such that free cash flow to debt is sustained below 3%. The principal methodology used in these ratings was Packaging Manufacturers: Metal, Glass and Plastic Containers Methodology published in September 2020. Printpack Holdings, Inc., headquartered in Atlanta, GA, is a manufacturer of flexible and specialty rigid packaging primarily for the food, beverage, consumer products and medical industries. As of the twelve months ended September 25, 2021, Printpack generated about $1.25 billion of revenue. PURDUE PHARMA: PTAB Invalidates Patent After Chapter 11 Delay ------------------------------------------------------------- Andrew Karpan of Law360 reports that the Patent Trial and Appeal Board has invalidated a Purdue Pharma patent for an opioid with an abuse deterrent, faulting the patent description and rejecting Purdue's argument that the board took too long to issue a decision. Friday's, November 19, 2021, ruling from the patent board came more than two years after a decision on the post-grant petition from Collegium Pharmaceutical was originally due. The delay was caused by Purdue's filing for bankruptcy in September 2019 in an effort to hold back the wave of lawsuits the company faced over its role marketing drugs in the opioid crisis. About Purdue Pharma LP Purdue Pharma L.P. and its subsidiaries -- http://www.purduepharma.com/-- develop and provide prescription medicines and consumer products that meet the evolving needs of healthcare professionals, patients, consumers and caregivers. Purdue's subsidiaries include Adlon Therapeutics L.P., focused on treatment for Attention-Deficit/Hyperactivity Disorder (ADHD) and related disorders; Avrio Health L.P., a consumer health products company that champions an improved quality of life for people in the United States through the reimagining of innovative product solutions; Imbrium Therapeutics L.P., established to further advance the emerging portfolio and develop the pipeline in the areas of CNS, non-opioid pain medicines, and select oncology through internal research, strategic collaborations and partnerships; and Greenfield Bioventures L.P., an investment vehicle focused on value-inflection in early stages of clinical development. Opioid makers in the U.S. are facing pressure from a crackdown on the addictive drug in the wake of the opioid crisis and as state attorneys general file lawsuits against manufacturers. More than 2,000 states, counties, municipalities and Native American governments have sued Purdue Pharma and other pharmaceutical companies for their role in the opioid crisis in the U.S., which has contributed to the more than 700,000 drug overdose deaths in the U.S. since 1999. OxyContin, Purdue Pharma's most prominent pain medication, has been the target of over 2,600 civil actions pending in various state and federal courts and other fora across the United States and its territories. On Sept. 15 and 16, 2019, Purdue Pharma L.P. and 23 affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 19-23649), after reaching terms of a preliminary agreement for settling the massive opioid litigation. 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. * * * U.S. Bankruptcy Judge Robert Drain in early September 2021 approved a plan to turn Purdue into a new company (Knoa Pharma LLC) no longer owned by members of the Sackler family, with its profits going to fight the opioid epidemic. The Sackler family agreed to pay $4.3 billion over nine years to the states and private plaintiffs and in exchange for a lifetime legal immunity. The deal resolves some 3,000 lawsuits filed by state and local governments, Native American tribes, unions, hospitals and others who claimed the company's marketing of prescription opioids helped spark and continue an overdose epidemic. Separate appeals to approval of the Plan have already been filed by the U.S. Bankruptcy Trustee, California, Connecticut, the District of Columbia, Maryland, Rhode Island and Washington state, plus some Canadian local governments and other Canadian entities. Purdue filed its Chapter 11 Plan on March 15, 2021. A twelfth amended Chapter 11 plan was filed on September 2, 2021, which was confirmed on September 17. Purdue divides the claims against it into several categories, one of which it calls "PI Claims," consisting of claims "for alleged opioid-related personal injury." The plan provides for the creation of the "PI Trust," which will administer all PI Claims. The trust will be funded with an initial distribution of $300 million on the effective date of the Chapter 11 plan, followed by a distribution of $200 million in 2024, and distributions of $100 million in 2025 and 2026. In sum, "[t]he PI Trust will receive at least $700 million in value, and may receive an additional $50 million depending on the amount of proceeds received on account of certain of Purdue's insurance policies." The plan further provides that Purdue's ability to recover from its insurers will be vested in a "Master Disbursement Trust." To the extent any proceeds are recovered from Purdue's insurers with respect to the PI Claims, up to $450 million of those proceeds will be channeled from the MDT to the PI Trust. However, the PI Trust will be funded regardless of whether anything is recovered from Purdue's insurers. Instead, "[d]istributions to the PI Trust are subject to prepayment on a rolling basis as insurance proceeds from certain of Purdue's insurance policies are received by the MDT and paid forward to the PI Trust." SAN DIEGO TACO: Seeks to Tap Bonilla Accounting Firm as Accountant ------------------------------------------------------------------ San Diego Taco Company, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of California to employ Bonilla Accounting Firm as its accountant. The firm will render accounting services to the Debtor in connection with its ongoing management of its books, the preparation of its monthly operating reports, and the preparation of its income tax returns. The firm will be compensated $750 per month for its accounting services, plus additional flat fees for the preparation of the Debtor's income tax returns each year. Robinson Devadhason, the principal and owner of Bonilla Accounting Firm, 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: Robinson Devadhason Bonilla Accounting Firm 330 Oxford Street, Suite 100 Chula Vista, CA 91911 Telephone: (619) 691-6967 Facsimile: (619) 691-6998 About San Diego Taco Company San Diego Taco Company, Inc., an operator of restaurants that specialize in Mexican cuisine, sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Cal. Case No. 21-03594) on Sept. 2, 2021. In the petition signed by Ernie Becerra III, president, the Debtor disclosed $615,570 in total assets and $1,597,598 in total liabilities. Judge Christopher B. Latham oversees the case. The Debtor tapped Jason E. Turner, Esq., at J. Turner Law Group, APC as legal counsel and Bonilla Accounting Firm as accountant. SANUWAVE HEALTH: Delays Filing of Form 10-Q ------------------------------------------- SANUWAVE Health, Inc. filed a Form 12b-25 with the Securities and Exchange Commission notifying the delay in the filing of its Quarterly Report on Form 10-Q for the period ended Sept. 30, 2021. The Company said the compilation, verification and review by management of the information and disclosure required to be presented in the Form 10-Q for the three and nine months ended Sept. 30, 2021 requires additional time which renders the timely filing of the Report impracticable without undue hardship and expense to it. As reported on a Form 8-K filed by the Company on Feb. 18, 2021, the audit committee of the board of directors and management of the Company concluded that its previously issued unaudited condensed consolidated financial statements for the quarter ended Sept. 30, 2020, should no longer be relied upon because of an error in the Company's accounting relating to its warrant derivative liability for such quarter. The Company filed Form 10-Q/A for the quarter ended Sept. 30, 2020 to correct the error in the financial statements described above on July 1, 2021. The Company has filed its Form 10-K for the fiscal year ended Dec. 31, 2020, but has not yet filed its Form 10-Q for the first quarter ended March 31, 2021 and the second quarter ended June 30, 2021 The COVID-19 pandemic has created delays in the preparation of financial statements for prior periods, a failed ERP implantation, as well as the Company has had significant turnover in the staffing of its accounting functions. The Company expects to report revenue for the three months ended Sept. 30, 2021 of approximately $3.7 million compared to $1.9 million for the three months ended Sept. 30, 2020. The Company expects to report revenue for the nine months ended Sept. 30, 2021 of approximately $8.8 million compared to $2.2 million for the nine months ended Sept. 30, 2020. The change is primarily due to the acquisition of the UltraMIST assets of Celularity Inc. on Aug. 6, 2020. The Company is not able to provide a further estimate of results at this time as it has not yet completed the reporting process and review relating to its financial statements. The financial result presented above for the three and nine months ended Sept. 30, 2021 reflects a preliminary estimate of the Company's revenue and anticipated change for the corresponding prior period as of the date of the filing of the Form 12b-25. This estimate is subject to change upon the completion of the reporting process and review of the Company's financial statements, and actual results may vary significantly from this estimate. About SANUWAVE Health Headquartered in Suwanee, Georgia, SANUWAVE Health, Inc. (OTCQB:SNWV) -- http://www.SANUWAVE.com-- is a shock wave technology company using a patented system of noninvasive, high-energy, acoustic shock waves for regenerative medicine and other applications. The Company's initial focus is regenerative medicine utilizing noninvasive, acoustic shock waves to produce a biological response resulting in the body healing itself through the repair and regeneration of tissue, musculoskeletal, and vascular structures. SANUWAVE reported a net loss of $30.94 million for the year ended Dec. 31, 2020, compared to a net loss of $10.43 million for the year ended Dec. 31, 2019. As of Dec. 31, 2020, the Company had $23.03 million in total assets, $36.75 million in total liabilities, and a total stockholders' deficit of $13.72 million. New York, NY-based Marcum LLP, the Company's auditor since 2018, issued a "going concern" qualification in its report dated Oct. 21, 2021, citing that the Company has violated its debt covenants, 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: Chief Accounting Officer Resigns -------------------------------------------------- Michael F. Winterscheidt informed Scientific Games Corporation that he would like to transition to a part-time role and, accordingly, will leave his full-time position as senior vice president and chief accounting officer and transition to a consulting role effective upon the close of business on Nov. 30, 2021. Constance P. James, the Company's executive vice president, chief financial officer, treasurer and corporate secretary, will serve as the Company's principal accounting officer effective as of the Separation Date. On Nov. 23, 2021, the Company entered into an engagement letter with Mr. Winterscheidt (d/b/a Uphill Consulting) pursuant to which Mr. Winterscheidt will provide, effective as of the Separation Date, general accounting and advisory consulting services to the Company to be set forth in one or more statements of work in connection with those services. The Engagement Letter provides that the Company will pay Mr. Winterscheidt a cash fee in exchange for such consulting services, with the applicable fee to be set forth in the applicable statement of work and calculated based on the actual hours of work required in connection with such services and the complexity thereof. Each statement of work may be terminated by the Company, without cause, by giving Mr. Winterscheidt no less than 60 days' written notice before the effective date of such termination. 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. SECOND LLC: Seeks to Employ Larry Strauss as Accountant ------------------------------------------------------- Second, LLC seeks approval from the U.S. Bankruptcy Court for the District of Maryland to hire Larry Strauss, Esq., CPA and Associates, Inc. to prepare its tax returns and provide general accounting services. The hourly rates for the firm's services range from $145 to $450. Larry Strauss, Esq., president of the firm, disclosed in a court filing that he is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Larry Strauss, Esq. Larry Strauss, Esq., CPA & Associates, Inc. 2310 Smith Avenue Baltimore, MD 21209 Tel: 410-484-2142 Fax: 443-352-3282 Email: Larry@LarryStraussESQCPA.com About Second LLC Second, LLC filed a petition for Chapter 11 protection (Bankr. D. Md. Case No. 21-17145) on Nov. 12, 2021, listing up to $500,000 in both assets and liabilities. Harry Kaiser, managing member, signed the petition. The Debtor tapped Tate M. Russack, Esq., at RLC, PA Lawyers & Consultants as legal counsel and Larry Strauss, Esq., CPA and Associates, Inc. as accountant. SECOND LLC: Seeks to Employ RLC Lawyers as Bankruptcy Counsel ------------------------------------------------------------- Second, LLC seeks approval from the U.S. Bankruptcy Court for the District of Maryland to hire RLC Lawyers & Consultants to serve as legal counsel in its Chapter 11 case. The firm's services include: (a) providing the Debtor with legal advice in the continued possession and management of its property; (b) preparing statement of financial affairs, bankruptcy schedules and other documents; (c) representing the Debtor in connection with any proceedings for relief from stay, which may be instituted in the court; (d) representing the Debtor at any meetings of creditors convened pursuant to Section 341 of the Bankruptcy Code; (e) preparing a Chapter 11 plan, disclosure statement and other legal papers; (f) representing the Debtor in collateral litigation before the bankruptcy court and other courts; and (g) providing other necessary legal services. The firm's hourly rates are as follows: Senior attorney $525 per hour Paralegal $200 per hour Secretary/Receptionist No charge The Debtor paid $5,000 to the firm as a retainer fee. Tate Russack, Esq., at RLC Lawyers disclosed in a court filing that he is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. RLC Lawyers can be reached at: Tate M. Russack, Esq. RLC Lawyers & Consultants 7999 N. Federal Hwy, Suite 100 Boca Raton, FL, 33487 Office: 561-571-9610 Fax: 800-883-5692 Email: Tate@Russack.net About Second LLC Second, LLC filed a petition for Chapter 11 protection (Bankr. D. Md. Case No. 21-17145) on Nov. 12, 2021, listing up to $500,000 in both assets and liabilities. Harry Kaiser, managing member, signed the petition. The Debtor tapped Tate M. Russack, Esq., at RLC, PA Lawyers & Consultants as legal counsel and Larry Strauss, Esq., CPA and Associates, Inc. as accountant. SHURWEST LLC: Gets OK to Hire King & Spalding as Special Counsel ---------------------------------------------------------------- Shurwest, LLC received approval from the U.S. Bankruptcy Court for the District of Arizona to employ King & Spalding LLP as special counsel The Debtor requires the assistance of a special counsel to remove to the bankruptcy court more than 30 cases that were either commenced by the Debtor or that are not subject to the automatic stay. The hourly rates of King & Spalding's attorneys and staff are as follows: Joseph N. Akrotirianakis, Partner $1,030 Partners $1,020 - $1,030 Associates $565 - $930 Paraprofessionals $355 - $365 In addition, King & Spalding will seek reimbursement for expenses incurred. Joseph Akrotirianakis, a partner at King & Spalding, 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: Joseph N. Akrotirianakis, Esq. King & Spalding LLP 633 West Fifth Street, Suite 1600 Los Angeles, CA 90071 Telephone: (213) 443-4355 Email: jakro@kslaw.com About Shurwest LLC Shurwest, LLC, a Scottsdale, Ariz.-based company that specializes in fixed indexed annuities and life insurance, filed its voluntary petition for Chapter 11 protection (Bankr. D. Ariz. Case No. 21-06723) on Aug. 31, 2021, listing as much as $10 million in both assets and liabilities. James Maschek, president, signed the petition. Judge Daniel P. Collins oversees the case. The Debtor tapped Isaac D. Rothschild, Esq., at Mesch Clark Rothschild as bankruptcy counsel and Wyche, PA and King & Spalding LLP as special counsel. SOAMES LANE: Seeks to Hire Paul A. Beck as Bankruptcy Counsel ------------------------------------------------------------- Soames Lane Trust seeks approval from the U.S. Bankruptcy Court for the Central District of California to employ the Law Offices of Paul A. Beck, A Professional Corporation, as its legal counsel. The firm will render these legal services: (a) advise the Debtor regarding its rights, responsibilities, duties, powers and roles in the continued development of and improvements of its property; (b) advise the Debtor regarding its bankruptcy estate and the rights, claims and interests of creditors and other parties in interest, and consult with the Official Committee of Creditors Holding Unsecured Claims, if any, concerning the administration of the case; (c) prepare legal papers; (d) appear at all hearings and in all proceedings and protect and preserve the interests of the Debtor's estate, and its interest with respect to the claims of creditors; (e) represent the Debtor in the context of this Chapter 11 case and in any adversary proceedings or contested matters; (f) represent and advise the Debtor regarding any potential sale of the property, and in the negotiations concerning, and in the formulation, drafting, acceptance, confirmation and implementation of, a plan of reorganization; (g) assist the Debtor in any investigation of the acts, conduct, liabilities, and financial condition and affairs of the Debtor, the management and business affairs of the Debtor, and any other matters relevant to the case or to the formulation of a plan of reorganization or other disposition of the property of the estate; (h) advise the Debtor regarding its rights with respect to its creditors, any creditors committee, and third parties; and (i) perform and provide such other necessary or beneficial legal services for the Debtor in connection with the Chapter 11 case. The hourly rates of the firm's counsel and staff are as follows: Paul A. Beck, Attorney $495 Andrea Schonfeld, Paralegal $245 In addition, the firm will seek reimbursement for expenses incurred. Paul Beck, Esq., 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: Paul A. Beck, Esq. Law Offices of Paul A. Beck, APC 13701 Riverside Drive, Suite 202 Sherman Oaks, CA 91423 Telephone: (818) 501-1141 Facsimile: (818) 501-1241 Email: pab@pablaw.org About Soames Lane Trust Soames Lane Trust filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Calif. Case No. 21-17932) on Oct. 14, 2021, listing up to $10 million to $50 million in both assets and liabilities. Grover Henry Nix, III, trustee, signed the petition. Judge Sheri Bluebond oversees the case. The Law Offices of Paul A. Beck, APC serves as the Debtor's counsel. SOMO AUDIENCE: Fine-Tunes Plan Documents ---------------------------------------- SoMo Audience Corp. submitted a Second Amended Subchapter V Plan of Reorganization dated Nov. 22, 2021. The Debtor is filing this plan of reorganization based on two important events that occurred during the pendency of the Chapter 11 Case: an agreement to sell substantially all of the assets of the Debtor except for its consulting business, and a settlement with its largest creditor, JPMorgan Chase Bank, N.A. ("Chase"). Both of these elements were vital to a successful reorganization. The Debtor is selling almost all of its assets, including its proprietary digital advertising platform, to Consumable, Inc. ("Consumable" or "Purchaser"), in consideration of $1 million, plus entering into a three-year consulting contract with a minimum consulting fee of $10,000 per month. It is retaining certain assets, including, its consulting business and its account receivable from Verve Wireless, Inc. The Debtor will reorganize around its consulting business which it hopes to grow, and will make payments to creditors from the consulting business over the next four years. The initial payments due on the Effective Date will be made from the consideration paid at closing for the sale of assets. Consumable is paying a $50,000 good faith deposit upon the signing of the asset purchase agreement, an additional $600,000 at Closing (for a total of $650,000 by the Closing), and an additional $350,000 in equal quarterly installments over 36 months, beginning no later than May 1, 2022. With the framework for a sale in hand, the Debtor was able to enter into a settlement agreement with its largest and only secured creditor, Chase. The settlement has been approved by the Bankruptcy Court. The settlement does not involve just the Debtor but also requires contributions from the two principals of the Debtor, Robert Manoff ("Manoff") and Todd Houck ("Houck", and together with Manoff, the "Principals"), as well as the Robert Manoff 2016 Nevada Trust, a Nevada trust of which Manoff was the grantor and which holds shares of the Debtor (the "Nevada Trust"). As a result of the sale, the settlement with Chase, and the contributions by the Principals, Creditors will be paid as follows: Administrative Claims, other than for Professional Fees, will be paid in the ordinary course as they become due unless the Holder of such Claim agrees to a different treatment. Allowed Professional Fee Claims will receive a payment of approximately $170,000 Pro Rata at Closing, with the remainder of the Allowed Professional Fees to be paid in monthly installments over the ensuing 36 months. Class 1 consists of the Allowed Priority Non-tax Claims, which will be paid in full shortly after the Closing Date unless the Holder of the Claim agrees to a different treatment. The known Holders of Class 1 claims have agreed to a different treatment, and will be paid in 12 equal monthly installments beginning January 2023. Class 2 consists of both the Secured and Unsecured Claims of Chase. Class 3 consists of Allowed General Unsecured Claims that will receive their Pro Rata share of semi-annual payments of the Debtor's Disposable Income up to the Face Amount of their Allowed Claims beginning in July 2023 for the semiannual period ending June 30, 2023. The amounts of Disposable Income to be shared by the Allowed General Unsecured Claims is: $ 11,334 for the six month period ended June 30, 2023; $23,028 for the six-month period ended December 31, 2023; $0 for the sixth month period ended June 30, 2024; $34, 193 for the six-month period ended December 31, 2024; $14,884 for the six-month period ended June 30, 2025; and the final payment of $8,098 for the six-month period ended December 31, 2025. In total, the Allowed General Unsecured Claims will be paid $91,537. The Debtor does not anticipate having any Disposable Income in 2022. The Holders of Equity Interests, Class 4, will retain their equity interest in the Debtor. The Debtor is proposing a four-year plan, instead of the customary three-year plan because the settlement with Chase requires the final payment to Chase to be paid on the fourth anniversary of the Closing, and because since there is no available disposable income for Unsecured Creditors in the first year of the Plan, this will allow the Unsecured Creditors to receive three years of Disposable Income. This Plan constitutes the Debtor's request that the Bankruptcy Court approve a four-year Plan. The Plan would not have been feasible without the substantial contributions made by the Principals. The Principals have: (i) forgone and/or reduced salary and expenses post-petition from time to time in order for the Debtor to meet its expense reimbursement; (ii) deferred payment of their Administrative Claim for pre petition salary until 2023, when it will be paid in monthly installments for one year, and chose not to file a proof of claim for the substantial six figure amount of unpaid salary pre petition above the Priority Claim; (iii) waived their substantial pre-petition claim for indemnification and omitted filing a proof of claim for same; (iv) contributed $200,000 to the settlement with Chase; and (v) each gave a personal guarantee for the approximately $500,000 of deferred payments which Chase is to receive after the Closing Date pursuant to the Plan. In light of these essential contributions by the Principals, the Plan includes third-party releases from Creditors and Interest Holders extending to the Principals to protect them from third party claims related to the Debtor and its business that could interfere with the Principals' ability to make the above contributions. The Plan is premised upon a sale of substantially all of the Assets of the Debtor to Consumable pursuant to an Asset Purchase Agreement ("APA"), which will be filed with the Bankruptcy Court as part of the Plan Supplement, and an ongoing consulting agreement with Consumable. The Debtor will then reorganize around its consulting business, including the consulting contract with Consumable. A full-text copy of the Second Amended Plan of Reorganization dated Nov. 22, 2021, is available at https://bit.ly/3HVwHsL from PacerMonitor.com at no charge. Counsel for Debtor: Jason A. Gibson Frederick B. Rosner, Esq. The Rosner Law Group LLC 824 N. Market St. Wilmington, DE 19801 Tel: (302) 777-1111/(302) 319-6300 Email: rosner@teamrosner.com MAYERSON & HARTHEIMER, PLLC 845 Third Avenue, 11th floor New York, NY 10022 Tel: (646) 778-4380 Sandra E. Mayerson, Esq. David H. Hartheimer, Esq. About Somo Audience Corp. Livingston, N.J.-based SoMo Audience Corp. -- https://somoaudience.com -- is an advertising technology company focused on providing solutions for Web Publishers, Mobile, CTV and DOOH. SoMo Audience sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 21-10464) on March 11, 2021. On June 22, 2021, the proceeding was transferred to the U.S. Bankruptcy Court for the District of Delaware and was assigned a new case number (Case No. 21-10958). Judge Craig T. Goldblatt oversees the case. The Debtor disclosed total assets of $437,993 and total liabilities of $4,426,241 at the time of the filing. Mayerson & Hartheimer, PLLC and The Rosner Law Group, LLC serve as the Debtor's lead bankruptcy counsel and Delaware counsel, respectively. STEM HOLDINGS: Board Terminates Employment of Salvatore Villanueva ------------------------------------------------------------------ The board of directors of Stem Holdings, Inc. voted to terminate and not renew the employment agreement, dated Feb. 7, 2020, by and between Salvatore Villanueva, III and the company, to be effective Dec. 19, 2021. The Board also voted to place Mr. Villanueva on paid leave during the 30-day notice period set forth in the employment agreement and for Mr. Villanueva to receive continued salary and benefits while he remains employed with the company. About Stem Holdings Headquartered in Boca Raton, Florida, Stem Holdings, Inc. -- http://www.stemholdings.com-- is a multi-state, vertically integrated, cannabis company that, through its subsidiaries and its investments, is engaged in the manufacture, possession, use, sale, distribution or branding of cannabis, and holds licenses in the adult use and medical cannabis marketplace in the states of Oregon, Nevada, California, Oklahoma and Massachusetts. Stem Holdings reported a net loss of $11.49 million for the year ended Sept. 30, 2020, compared to a net loss of $28.98 million for the year ended Sept. 30, 2019. As of June 30, 2021, the Company had $118.31 million in total assets, $28.05 million in total liabilities, and $90.26 million in total shareholders' equity. LJ Soldinger Associates, LLC, in Deer Park, IL, the Company's auditor since 2017, issued a "going concern" qualification in its report dated Dec. 24, 2020, citing that the Company and its affiliates, had net losses of $11.5 million and $28.985 million, negative working capital of $9.235 million and $2.635 million and accumulated deficits of $51.386 million and $40.384 million as of and for the year ended Sept. 30, 2020 and 2019, respectively. In addition, the Company has commenced operations in the production and sale of cannabis and related products, an activity that is illegal under United States Federal law for any purpose, by way of Title II of the Comprehensive Drug Abuse Prevention and Control Act of 1970, otherwise known as the Controlled Substances Act of 1970. These facts raises substantial doubt as to the Company's ability to continue as a going concern. TAURIGA SCIENCES: All Proposals Passed at Special Meeting --------------------------------------------------------- Tauriga Sciences, Inc. announced the results of its Special Meeting of stockholders held on Nov. 22, 2021. At the Special Meeting, Tauriga's stockholders approved an amendment to the Company's Articles of Incorporation to: (i) allow for consideration of the change of the name of the Company to Sublingual Technologies Inc.; (ii) allow action by the Company's Board of Directors to affect a change in the name of the Company without further shareholder approval; and (iii) to increase the total number of authorized shares of common stock, par value $.00001 per share from 400,000,000 to 750,000,000 shares. In addition, following the appointment of James V. Rosati and Chris Sferruzzo in March 2021 to the Company's Board of Directors, in Proposal 2 of the Proxy Statement, the Company nominated the following slate of persons for election to the Company's Board of Directors: Seth M. Shaw, Thomas J. Graham, James V. Rosati and Chris Sferruzzo. All of the foregoing nominees were overwhelmingly elected by its stockholders to serve as members of the Company's Board of Directors. Seth M. Shaw, chief executive officer of Tauriga, stated, "The passage of all the matters put before the stockholders in this Special Meeting represent important milestones for the Company. We are grateful for the support shown by our stockholders and we thank you for the vote of confidence. I have spoken with many of you this last week and I appreciate your time and input. Your opinions are important and we will take them into account as we move forward. This year will be an exciting time for Tauriga and we are working on several options that we hope will drive shareholder value. I thank you again for your continued support as we focus on building a successful future." About Tauriga Tauriga Sciences, Inc. -- www.taurigum.com -- is a diversified life sciences company, engaged in several major business activities and initiatives. The company manufactures and distributes several proprietary retail products and product lines, mainly focused on the Cannabidiol and Cannabigerol Edibles market segment. Tauriga reported a net loss of $3.63 million for the year ended March 31, 2021, a net loss of $ $3.03 million for the year ended March 31, 2020, and a net loss of $1.10 million for the year ended March 31, 2019. As of June 30, 2021, the Company had $2.76 million in total assets, $1.50 million in total liabilities, and $1.25 million in total stockholders' equity. As of Sept. 30, 2021, the Company had $1.98 million in total assets, $2 million in total liabilities, and a total stockholders' deficit of $27,318. Lakewood, Co-based BF Borgers CPA PC, the Company's auditor since 2019, issued a "going concern" qualification in its report dated June 29, 2021, citing that the Company has suffered recurring losses from operations and has a significant accumulated deficit. In addition, the Company continues to experience negative cash flows from operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. TECHNICAL COMMUNICATIONS: Issues Amended $2M Demand Note to CEO --------------------------------------------------------------- Technical Communications Corporation issued an amended and restated demand promissory note in the principal amount of up to $2,000,000 in favor of Carl H. Guild, Jr. , the company's chief executive officer, president and chairman of the Board, who loaned the money to the company to provide working capital. The $2,000,000 consists of $1,000,000 previously loaned to the company at an interest rate of 6% and an additional $1,000,000 at an interest rate of 7.5%. The additional funds will be available to the company to borrow from Mr. Guild on a revolving basis and the loan has no specified term year and may be prepaid at any time without premium or penalty. About Technical Communications Concord, Massachusetts-based Technical Communications Corporation -- http://www.tccsecure.com-- specializes in secure communications systems and customized solutions to protect highly sensitive voice, data and video transmitted over a wide range of networks, serving government entities, military agencies, and corporate enterprises. Technical Communications reported a net loss of $910,650 for the year ended Sept. 26, 2020. As of March 27, 2021, the Company had $2.52 million in total assets, $1.80 million in total liabilities, and $720,897 in total stockholders' equity. Stowe & Degon LLC, in Westborough, Massachusetts, the Company's auditor since 2019, issued a "going concern" qualification in its report dated Dec. 28, 2020, citing that the Company has an accumulated deficit, has suffered significant net losses and negative cash flows from operations and has limited working capital that raises substantial doubt about its ability to continue as a going concern. TECOSTAR HOLDINGS: S&P Lowers ICR to 'B-' on Weak Financials ------------------------------------------------------------ S&P Global Ratings lowered all ratings on Tecostar Holdings Inc. by one notch, including the issuer-credit rating, to 'B-' from 'B'. The negative outlook reflects the risk that the headwinds the company is facing extend beyond mid-2022, preventing it from improving its leverage metrics and liquidity position. Tecostar will continue to face heightened operational challenges in the next year. These challenges include weak demand as the company's customers in the orthopedic and surgical segments face lower procedure volumes amid COVID-19 resurgences in various countries. In addition, high inventory levels that the company's customers accumulated amid low demand in 2020 caused them to reduce purchase orders in 2021, leading to a lag in the return to a more normal level of sales. At the same time the company is experiencing higher employee turnover than usual, resulting in lower productivity. The company's fixed-cost burden exacerbates inefficiencies stemming from lower demand, resulting in significant drop in EBITDA. The company's third-quarter 2021 underperformance resulted in sales 2.4% below third-quarter 2020 and significantly below budget. Adjusted EBITDA dropped 27% versus third-quarter 2020 and 45% versus the budget. S&P said, "We anticipate that in 2022 procedure volumes will continue to recover from the pandemic trough in second-quarter 2020, but more slowly than to our prior expectations. The company has indicated that its order book has grown from the beginning of the year but has not yet reached pre-COVID levels. We also believe that the recovery might be uneven, as evidenced by the lower-than-expected sales reported by the company's main customers in the orthopedic segment in third-quarter 2021. We also expect that the operating headwinds will persist at least until mid-2022, given the impact of the tight labor market and inflationary pressures, limiting the company's ability to recover its EBITDA margins. At the same time, given the importance of the company to the larger OEMs' outsourced manufacturing strategy, we believe that the company could, at least partially, pass some of the cost inflation. We expect adjusted EBITDA margins to decline to about 14% in 2021 from about 18% in 2020, improving to about 18% in 2022. We expect it to will remain at below 2019 levels until 2023. "We expect the company's credit metrics to remain weak in 2021 and 2022 and insufficient to maintain the previous rating.We expect the company's sales and EBITDA margins will remain under pressure in fourth-quarter 2021 and 2022 and our base case indicates that leverage will remain above 8x in 2021-2022. We believe the company will reduce its free cash flow deficit in 2022 but will return to positive free cash flow only when demand and margins rebound, which we now expect to occur in 2023. We view the current metrics insufficient to maintain the previous rating. "We expect the company will maintain adequate liquidity position despite not meeting the springing covenant on its asset-based revolving loan (ABL) as of Sept. 30, 2021. The company's ABL is subject to a springing 1x minimum fixed-charge coverage ratio covenant, tested when the remaining availability is less than 10%. The company did not meet the covenant requirement as of the end of the third quarter and we believe its access might be partially constrained. However, we note that the covenant applies only when the remaining availability is less than 10%, leaving the company room for additional draw. Given the recent issuance of $75 million incremental term loan, our current base-case assumes the company will not require additional draw in the next 12 months." The negative outlook reflects the risk that the headwinds the company is facing extend beyond mid-2022 and further deteriorate its leverage metrics and liquidity position. S&P could lower the ratings if: -- Tecostar's liquidity deteriorates; or -- Leverage does not improve in 2022 and we believe the company's capital structure is unsustainable. This could materialize if operating headwinds persist and the company cannot sufficiently improve its operating margins from S&P's current projections. S&P could revise the outlook to stable if: -- The company's performance stabilizes; -- Leverage improves to below 10x; and -- Free cash flow improves to near break-even. This would likely materialize when the company's sales volumes and its adjusted EBITDA margins recover to 18%-20%, demonstrating its success managing various operating headwinds. TEEFOR2 INC: Has Deal Extending Cash Collateral Access ------------------------------------------------------ Teefor2, Inc. and the U.S. Small Business Administration have informed the U.S. Bankruptcy Court for the Central District of California, Riverside Division, that they have reached an agreement regarding the Debtor's continued use of cash collateral and now desire to memorialize the terms of this agreement into an agreed order. The Debtor is continuing in its reorganization efforts and use of the cash collateral of the SBA is necessary to achieve that reorganization. As a result, the Debtor and the SBA have agreed to an extension of the First Interim Order to allow for the continued use of the SBA's cash collateral pursuant to the same terms and conditions applicable to the Emergency Order and the First Interim Order, including but not limited to the grant of a replacement lien against the Debtor's post-petition accounts, accounts receivable and other cash collateral. The parties agree that the Debtor may use cash collateral through December 31, 2021, for reasonable ordinary and actual business expenses pursuant to the budget, with a 20% variance. As adequate protection for the Debtor's use of cash collateral, the SBA will be granted a replacement lien against the Debtor's personal property assets and the proceeds thereof, to the same extent, priority and validity as the lien, if any, held by the SBA as of the Petition Date, and subject to the same defenses and avoidance actions as those applicable by the Debtor to the SBA's putative lien(s). Any diminution in the value of SBA's collateral pursuant to the subject SBA loan over the life of the proceeding will entitle the SBA to a super-priority claim. The Debtor will maintain the cumulative value of the accounts, account receivable and inventory/work in process at their levels upon filing. If it fails to do so, and the value of the collateral declines by more than 10% at any time during the term of the Stipulation, the SBA may seek to terminate such use of Cash Collateral by motion filed ex parte or upon regular notice. A copy of the stipulation is available at https://bit.ly/3HWaWJo from PacerMonitor.com. About Teefor2, Inc. Teefor2, Inc. owns and operates a graphic design and screen printing business in the City of Chino, California. It sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 21-12580) on May 10, 2021. In the petition signed by Larry Lazalde, president, the Debtor disclosed up to $500,000 in assets and up to $10 million in liabilities. The Law Offices of Stephen R. Wade, P.C. is the Debtor's counsel. VALLEY HOSPICE: Seeks Chapter 11 Bankruptcy Protection ------------------------------------------------------ Andy Blye of Phoenix Business Journal reports that Valley Hospice of Arizona, a Mesa-based end-of-life care facility, has voluntarily filed for bankruptcy protection with at least $2.49 million owed to scores of creditors. Valley Hospice on Nov. 12, 2021 declared Chapter 11 bankruptcy, which is the most common type of bankruptcy used to reorganize a failing business. This business is not connected to Hospice of the Valley, a larger chain of health care centers in the area. Valley Hospice of Arizona did not immediately respond to multiple requests for comment on this story; its website is also "temporarily not available." Documents on file with U.S. Bankruptcy Court for the District of Arizona show that the company owes money to 77 creditors, many of which are unsecured. Valley Hospice owes at least $2.4 million to these unsecured creditors, but it filed under Chapter 11 subchapter V, meaning it has less than $7.5 million in total debts owed. The subchapter V option is reserved for small businesses and it historically has a debt cap of $2.7 million, but the cap was expanded to $7.5 million under the CARES Act last year as a way to streamline the process during the Covid-19 pandemic. The higher asset cap was extended by Congress earlier this year through March 27, 2022. Documents show that Valley Hospice owes money to the Arizona Department of Revenue, Blue Cross Blue Shield of Arizona, Salt River Project, Verizon Wireless as well as several individuals. The company expects that funds will be available to unsecured creditors. Christine Muturi Lewis is listed as the company’s owner and president on the bankruptcy paperwork. Valley Hospice shares an address with the Jabari and Amani Foundation, a grief counseling organization which is also run by Lewis, according to documents on file with the Arizona Corporation Commission. The Jabari and Amani Foundation is listed as inactive by the ACC after failing to file mandatory paperwork this 2021. Valley Hospice of Arizona was incorporated in 2012 and its 2019 income tax form said the company had $1.8 million in sales, but ran a loss exceeding $300,000 that year. In 2020 the business brought in $2.6 million, most of which came from Medicare, but ran a loss of $435,000 last year. Valley Hospice of Arizona got two Paycheck Protection Program loans, according to records from the Small Business Administration; One worth $350,000 drawn last year and a second worth $300,000 that was not fully disbursed this year. The company reported employing 30 people in May 2021. About Valley Hospice of Arizona Valley Hospice of Arizona Inc. is a provider of esteemed Hospice care services, providing end-of-life care to ailing patients with chronic and terminal illness in Mesa, Arizona. Valley Hospice of Arizona sought Chapter 11 protection (Bankr. D. Ariz. Case No. 21- 08392) on Nov. 12, 2021. In the petition signed by Christine Muturi Lewis, president/owner, Valley Hospice of Arizona estimated assets of between $1 million and $10 million and estimated liabilities of between $1 million and $10 million. Thomas G. Luikens, Esq., of THOMAS G. LUIKENS, P.C., is the Debtor's counsel. VISTA CHARTER: S&P Lowers Lease Revenue Bond LT Rating to 'BB' -------------------------------------------------------------- S&P Global Ratings lowered its long-term rating to 'BB' from 'BB+' on the California Municipal Finance Authority's series 2014 (tax-exempt) charter school lease revenue bonds outstanding, issued for Vista Charter Public Schools Inc. (VCPSI) Middle School campus. At the same time, S&P Global Ratings assigned its 'BB' long-term rating to the California Enterprise Development Authority's series 2021A and series 2021B (taxable) charter lease revenue bonds, issued for VCPSI's Condor and Heritage campuses. The outlook is stable. The downgrade reflects S&P's view of Vista Charter Public Schools Inc.'s high debt burden, which will increase substantially following the issuance of the series 2021 bonds. "Although we expect the organization will absorb the additional debt costs over time given its historical ability to produce healthy surpluses and its successful track record of expansion, we believe maximum annual debt service coverage will deteriorate significantly from current levels," said S&P Global Ratings credit analyst Adriana Artola. "Moreover, the large debt burden weakens VCPSI's debt metrics to levels we no longer consider comparable with those of higher-rated peers, and we understand the organization has expansion plans for which it may issue additional debt within the next five years." S&P said, "The stable outlook reflects our expectation that over the next two years VCPSI's enrollment will increase with the continued growth of its newest elementary schools and its expansion to high school grades and that the organization's enrollment growth will allow it to maintain its positive " "We could consider lowering the rating if enrollment growth falls short of projections, leading to a deterioration in financial performance that is no longer in line with the current rating and operations sustained at levels that do not support the current debt profile. "We could consider raising the rating if VCPSI demonstrates an ability to maintain adequate financial performance while moderating its debt burden as it successfully navigates its expansion plans." The series 2021 bond proceeds will finance the lease buyout of VCPSI's current facility where Condor and Heritage are located. The bond will also finance the purchase of an adjacent lot as well as facility improvements. WESTERN URANIUM: Incurs $830K Net Loss in Third Quarter ------------------------------------------------------- Western Uranium & Vanadium Corp. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $830,493 on $16,155 of revenues for the three months ended Sept. 30, 2021, compared to a net loss of $366,433 on $11,155 of revenues for the three months ended Sept. 30, 2020. For the nine months ended Sept. 30, 2021, the Company reported a net loss of $1.60 million on $48,465 of revenue compared to a net loss of $2.17 million on $33,465 of revenues for the nine months ended Sept. 30, 2020. As of Sept. 30, 2021, the Company had $26.85 million in total assets, $4.13 million in total liabilities, and $22.72 million in total shareholders' equity. The Company has incurred continuing losses from its operations and negative operating cash flows from operations, and as of Sept. 30, 2021, the Company had an accumulated deficit of $12,684,176 and working capital of $4,004,375. Since inception, the Company has met its liquidity requirements principally through the issuance of notes and the sale of its common shares. On Feb. 16, 2021, the Company closed on a non-brokered private placement of 3,250,000 units at a price of C$0.80 per unit. The aggregate gross proceeds raised in the private placement amounted to C$2,600,000 (US$1,950,509 in net proceeds). On March 1, 2021, the Company closed on a non-brokered private placement of 3,125,000 units at a price of CAD $0.80 per unit. The aggregate gross proceeds raised in the private placement amounted to C$2,500,000 (US$1,918,797 in net proceeds). During the nine months ended Sept. 30, 2021, the Company received $1,650,031 in proceeds from the exercise of warrants. Western Uranium said, "The Company's ability to continue its operations and to pay its obligations when they become due is contingent upon the Company obtaining additional financing. Management's plans include seeking to procure additional funds through debt and equity financings, to secure regulatory approval to fully utilize its kinetic separation technology and to initiate the processing of ore to generate operating cash flows. There are no assurances that the Company will be able to raise capital on terms acceptable to the Company or at all, or that cash flows generated from its operations will be sufficient to meet its current operating costs. If the Company is unable to obtain sufficient amounts of additional capital, it may be required to reduce the scope of its planned product development, which could harm its financial condition and operating results, or it may not be able to continue to fund its ongoing operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern to sustain operations for at least one year from the issuance of these condensed consolidated financial statements. The accompanying condensed consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1621906/000121390021061209/f10q0921_westernuranium.htm About Western Uranium & Vanadium Western Uranium & Vanadium Corp. is a Colorado based uranium and vanadium conventional mining company focused on low cost near-term production of uranium and vanadium in the western United States, and development and application of kinetic separation. The Company reported a net loss of $2.39 million in 2020 following a net loss of $2.11 million in 2019. As of March 31, 2021, the Company had $26.45 million in total assets, $4.05 million in total liabilities, and $22.40 million in total shareholders' equity. Mississauga, Canada-based MNP LLP, the Company's auditor since 2015, issued a "going concern" qualification in its report dated April 15, 2021, citing that the Company has incurred continuing losses and negative cash flows from operations and is dependent upon future sources of equity or debt financing in order to fund its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. Z REAL ESTATE: Property Sale Proceeds or Rental to Fund Plan ------------------------------------------------------------ Z Real Estate Holdings, LLC, submitted a Corrected Proposed Second Amended Plan of Reorganization dated Nov. 22, 2021. This Proposed Chapter 11 Plan of Reorganization provides for the restructuring of the debts of the debtor. Payments to all creditors will commence on the Effective Date. The Effective Date is estimated to be Feb. 1, 2022 but could be as early as Jan. 1, 2022. However, the controlling date is the first of the month after the signing of the order of confirmation. In the initial Petition Debtor was designated as a Small Business due to the fact the Debtor was the manager of two LLC's, one is the related case, 21-12171 with Knoll View and California being the only properties, and he also had two rental properties in this proceeding, Trinity and Stanley. Debtor is the 100% owner of the individual properties (Trinity and Stanley) and 100% owner of the two LLC. In this proceeding the Trinity property has already been sold and the funds held by the Sub-V trustee are likely to cover the administrative expenses in this proceeding, but not much more, if any. In 21-12171 Debtor has accepted an offer of $1,255,000 which will net approximately $40,000 for the unsecured creditors. However, that sale is in doubt since the pay-off on the first Deed of Trust was approximately $114,000 higher than anticipated due to a default interest provision in the Promissory Note which was not revealed until a pay-off was sought. As a result, Counsel has been negotiating with the lender's counsel to void the default interest. If they don't, Debtor has arranged to lease out the property and is in the process of negotiating a lease that will pay the reduced interest rate suggested in this plan along with taxes and insurance and maintenance. The total unsecured debt between the two cases is approximately $163,574.98. However, the unsecured debt in this case is approximately $121,000. Pursuant to §1191(c)(3)(A) or (B) Debtor must establish at least there is a reasonable likelihood he will be able to make all payments under the Amended Plan. In proposing the Amended Plan, the Debtor must show he will have enough cash over the life of the Amended Plan to make the required Amended Plan payments and operate the Debtor's businesses. The Debtor must explain the option to sell the California property. Debtor has a signed and accepted offer for $1,255,000 with the buyer to pay all costs involved in the sale. The proof of claim filed by the lender indicates that at the time of filing $1,054,269.29 was owed on the first mortgage with payments of $7,523.33 a month. This case was filed on March 9, 2021, with no post-petition payments through November, 2021. The only secured creditors in this proceeding are the holders of the first Deed of Trust, US Bank as Trustee, and the County of Orange for property taxes. Both claims are impaired and entitled to vote for or against the plan. US Bank is impaired as the rate and term have been altered. The County of Orange is impaired as payment in full will not be made on the effective date but once the manager of the LLC obtains funds from the sale of the Oakman property to pay the taxes in full. However, if California is sold, the County of Orange would be paid from escrow. * The plan treatment for Class 1a is only applicable if the lender on the California property refuses to eliminate the default interest rate, thus stopping the property from being sold. Debtor will make plan payment to Class 1a US Bank as Trustee directly and also pay taxes and insurance directly. However, if the property is sold the claim will be paid in full through escrow. * Class 2a County of Orange is impaired since it is not paid in full on the Effective Date. However, Debtor will pay the claim in full from proceeds of the sale of the California property and reserves his right to pay the full claim from the proceeds of the sale of the Oakman property. There is one unsecured claim in an amount to be determined as a settlement of the claim could not be reached. Debtor will pay the liquidated claim in full: * If the California property is sold, Debtor will pay the unsecured creditor all of the remaining funds after distribution of property taxes and administrative fees. It is anticipated that this payment will be approximately $40,000 but the final figure is unknown. The remaining balance will be paid over 60 months at no interest in a monthly amount to be determined once the net proceeds are received. * If the California property cannot be sold, then the unsecured creditor will receive an upfront payment of $15,000 and the balance of the liquidated claim paid out monthly over 60 months from the effective date. The final payment will be 100% of the allowed claim. * Payment of the monthly amount will be paid from rents produced from the California property and contributions by the manger of the LLC from his net proceeds from the sale of the Oakman property. The manger reserves his right to pay off the allowed debt at any time prior to the end of 60 months without penalty. If California is sold, Debtor would not rely on future income to fund the plan. Instead, Debtor will use the proceeds of the sale of Knoll View, Oakman and Trinity to pay all existing allowed debt and if California is not sold use the rental proceeds to fund the next two years of payments on the California property. A full-text copy of the Corrected Proposed Second Amended Plan dated Nov. 22, 2021, is available at https://bit.ly/3racKZe from PacerMonitor.com at no charge. Attorneys for Debtor: Michael R. Totaro, Esq. Totaro & Shanahan P.O. Box 789 Pacific Palisades, CA 90272 Tel: (800) 541-2802 Fax: (310) 496-1260 About Z Real Estate Holdings Z Real Estate Holdings, LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Calif. 21-12171) on March 9, 2021. At the time of filing, the Debtor had between $1 million and $10 million in both assets and liabilities. Judge Barry Russell oversees the case. Totaro & Shanahan represents the Debtor as legal counsel. ZNB LLP: Seeks Approval to Hire Larry Strauss as Accountant ----------------------------------------------------------- ZNB, LLP seeks approval from the U.S. Bankruptcy Court for the District of Maryland to hire Larry Strauss, Esq., CPA & Associates, Inc. to prepare its tax returns and provide general accounting services. The firm's hourly rates are as follows: Larry Strauss, Esq. $450 per hour Other employees $145 - $450 per hour Larry Strauss, Esq., president of the firm, disclosed in a court filing that he is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Larry Strauss, Esq. Larry Strauss, Esq., CPA & Associates, Inc. 2310 Smith Avenue Baltimore, MD 21209 Tel: 410-484-2142 Fax: 443-352-3282 Email: Larry@LarryStraussESQCPA.com About ZNB LLP Chestertown, Md.-based ZNB LLP filed a petition for Chapter 11 protection (Bankr. D. Md. Case No. 21-16310) on Oct. 5, 2021, listing up to $50,000 in assets and up to $10 million in liabilities. Harry Kaiser, managing partner, signed the petition. Judge Thomas J. Catliota oversees the case. The Debtor tapped Tate M. Russack, Esq., at RLC, PA Lawyers & Consultants as legal counsel and Larry Strauss, Esq., CPA and Associates, Inc. as accountant. [*] Airlines That Succumbed to Bankruptcy Due to the Pandemic ------------------------------------------------------------- Joe Cusmano of Travel Daily Media reports the COVID-19 pandemic has had a significant impact on the aviation business in a variety of ways, particularly due to the low profits achieved by carriers, particularly in the previous year. In some situations, this results in the airline being forced to file for bankruptcy protection. This is a list of some of the major airlines that have declared bankruptcy as a result of the unprecedented devastation wrought by the Covid-19 pandemic. * Air Italy When Air Italy suspended operations on the 11th of February 2020, it was one of the first carriers to do so. Air Italy was the second-largest airline in Italy, behind Alitalia, and was based in Rome. Following the news, Air Italy would gradually reduce its daily schedule, with the final trip departing on April 16, 2020. * Flybe Flybe was one of the most noteworthy companies to go bankrupt as a result of the epidemic. It was one of the largest regional airlines in Europe, accounting for more than half of all domestic flights in the United Kingdom at its peak. The airline was already experiencing financial difficulties prior to the COVID-19 pandemic, and the virus proved to be the final straw for them. On March 5, 2020, the airline filed for bankruptcy protection. However, it does not appear that all is lost, since the airline is planning to resume operations this year under new management. * Virgin Australia Virgin Australia was another airline that suffered a significant loss as a result of the virus. Virgin Australia, along with its competitor Qantas, is one of the most well-known names in Australian aviation. Due to increasing demand, the airline changed its name from Virgin Blue to Virgin Australia in 2011. It first began operations in 2000 as Virgin Blue. However, due to financial difficulties, the airline entered voluntary administration on April 21st, 2020, and has since been closed. Virgin Australia continues to operate routes despite being under administration. * Avianca Flights to and from the United States were suspended on May 11, 2020, when Avianca, the world’s second-oldest airline, filed for Chapter 11 bankruptcy. Because Avianca was one of the most important airlines in Latin America, this came as a surprise. Announcing plans to merge with Chilean carrier Sky Airline on October 2, 2021, the airline declared that it will be operational by 2022 and would be a mega low-cost carrier. * Thai Airways A bankruptcy court has ordered Thai Airways, a 61-year-old airline, to restructure its operations under bankruptcy court supervision. The firm has been struggling financially for years. As a result of the opposition of Thai Prime Minister Prayut Chan-o-cha, the airline has been unable to legally proclaim its bankruptcy. Flights are still being operated as usual by the carrier. * Virgin Atlantic As a result of the COVID-19 epidemic, Virgin Atlantic filed for Chapter 15 Bankruptcy on Aug. 4, 2020. Even though the airline is no longer in the process of ceasing operations, it is still running on a regular schedule. * Alitalia In Italy, the largest airline was Alitalia, which was based in Rome. But the airline was forced to file for administration in 2017 due to financial issues. Due to the infection, the airline opted to close its doors after dangling by a thread for several years. On October 15, the airline's final flight from Rome to Cagliari departed successfully. In the wake of the closure of Alitalia and Air Italy, the airline's assets were transferred to ITA Airways, the country's new national carrier. As a result of the closure of Alitalia's operations yesterday, ITA Airways, which is controlled entirely by the Italian government, began operating yesterday as well. * Philippine Airlines Because of the effects of the COVID-19 epidemic, Philippine Airlines, the country's flag carrier, has filed for Chapter 11 bankruptcy. Early this year, on Sept. 3rd, 2021, the airline filed for Chapter 11 protection. [^] BOOK REVIEW: Mentor X ------------------------- The Life-Changing Power of Extraordinary Mentors Author: Stephanie Wickouski Publisher: Beard Books Hard cover: 156 pages ISBN: 978-1-58798-700-7 List Price: $24.75 Order this Book: https://is.gd/EIPwnq Long-time bankruptcy lawyer Stephanie Wickouski at Bryan Cave impressively tackles a soft problem of modern professionals in an era of hard data and scientific intervention in her third published book entitled Mentor X. In an age where employee productivity is measured by artificial intelligence and resumes are prescreened by computers, Stephanie Wickouski adds spirit and humanity to the professional journey. The title is disarmingly deceptive and book browsers could be excused for assuming this work is just another in a long line of homogeneous efforts on mentorship. Don't be fooled; Mentor X is practical, articulate and lively. Most refreshingly, the book acknowledges the most important element of human development: our intuition. Mrs. Wickouski starts by describing what a mentor is and distinguishes that role from a teacher, coach, role model, buddy or boss. Younger professionals may be skeptical of the need for a mentor, but Mrs. Wickouski deftly disabuses that notion by relating how a mentor may do nothing less than change the course of a protege's life. Newbies to this genre need little convincing afterwards. One of the book's worthiest contributions is a definition of mentor that will surprise most readers. Mentors are not teachers, the latter of which impart practical knowledge. Instead, according to Mrs. Wickouski, her mentors "showed me secrets that I could learn nowhere else. They showed me how doors are opened. They showed me how to be an agent of change and advance innovative and controversial ideas." What ambitious professional doesn't want more of that in their life? The practicality of the book continues as Mrs. Wickouski outlines the qualities to look for in a mentor and classifies the various types of mentors, including bold mentors, charismatic mentors, cold and distant mentors, dissolute mentors, personally bonded mentors, younger mentors, and unexpected mentors. Mentor X includes charts and workbooks which aid the reader in getting the most out of a mentor relationship. In a later chapter, Mrs. Wickouski provides an enormously helpful suggestion about adopting a mentor: keep an open mind. Often, mentors will come in packages that differ from our expectations. They may be outside of our profession, younger, less educated, etc . . . but the world works in mysterious ways and Mrs. Wickouski encourages readers to think about mentors broadly. In this modern era of heightened workplace ethics, Mrs. Wickouski articulates the dark side of mentors. She warns about "dementors" and "tormentors" -- false mentors providing dubious and sometimes self-destructive advice, and those who abuse a mentor relationship to further self-interested, malign ends, respectively. She describes other mentor dysfunctions, namely boundary-crossing, rivalry, corruption, and a few others. When a mentor manifests such behaviors, Mrs. Wickouski counsels it's time to end the relationship. Mrs. Wickouski tells readers how to discern when the mentor relationship is changing and when it is effectively over. Those changes can be precipitated by romantic boundaries crossed, emergence of rivalrous sentiment, or encouragement of unethical behavior or corruption. Mrs. Wickouski aptly notes that once insidious energies emerge, the mentorship is effectively over. At this point, certain readers may say to themselves, "Okay, I've got it. Now I can move on." Or, "My workplace has a formal mentorship program. I don't need this book anymore." Or even, "Can't modern technology handle my mentor needs, a Tinder of mentorship, so to speak?" Mrs. Wickouski refutes that notion. She analyzes how many mentoring programs miss the mark. In one of the best passages in the book, Mrs. Wickouski writes, "Assigning or brokering mentors negates the most critical components of a true mentor–protege relationship: the individual process of self-awareness which leads a person to recognize another individual who will give the advice singularly needed. That very process is undermined by having a mentor assigned or by going to a mentoring party." She does not just criticize; she offers a solution with three valuable tips for choosing the right mentor and five qualities to ascertain a true mentor in the unlimited sea of possibilities. Next, Mrs. Wickouski distinguishes between good advice and bad advice. She punctuates that discussion with many relevant and relatable examples that are easy to read and colorfully enjoyable. This section includes interviews with proteges who have had successful mentorships. The punchline: in the best mentorships, the parties harmoniously share personal beliefs and values. Also important, the protege draws inspiration and motivation from the mentor. The book winds down as usefully as it started: Mrs. Wickouski interviews proteges, asking them what they would have done differently with their mentors if they could turn back the clock. A common thread seems to be that the proteges would have gone deeper with their mentors -- they would have asked more questions, spent more time, delved into their mentors' thinking in greater depth. The book wraps up lightly by sharing useful and practical suggestions for maintenance of the mentor relationship. She answers questions such as, "Do I invite my mentor to my wedding?" and "Who pays for lunch?" Mentor X is an enjoyable read and a useful book for any professional in any industry at, frankly, any point in time. Advanced individuals will learn much from the other side, i.e., how to be more effective mentors. Mrs. Wickouski does a wonderful job of encouraging use of that all knowing aspect of human existence which never fails us: proper use of our intuition. About The Author Stephanie Wickouski is widely regarded as an innovator and strategic advisor. A nationally recognized lawyer, she has been named as one of the 12 Outstanding Restructuring Lawyers in the US by Turnarounds & Workouts and as one of US News' Best Lawyers in America. She is the author of two other books: Indenture Trustee Bankruptcy Powers & Duties, an essential guide to the legal role of the bond trustee, and Bankruptcy Crimes, an authoritative resource on bankruptcy fraud. She also writes the Corporate Restructuring blog. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. 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