/raid1/www/Hosts/bankrupt/TCR_Public/211217.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, December 17, 2021, Vol. 25, No. 350
Headlines
801 ASBURY AVENUE: 176 Route Gets Interim Cash Collateral Access
801 ASBURY AVENUE: Wins Cash Collateral Access Thru Jan 2022
A & G PIZZA: Gets Cash Collateral Access
ADLI LAW: Seeks to Hire Hahn & Hahn as Bankruptcy Counsel
AGUILA INC: U.S. Trustee Appoints Creditors' Committee
ALL YEAR HOLDINGS: Seeks Chapter 11 Bankruptcy Protection
ALLIED SYSTEMS: Court Denies Yucaipa's Bid to Stay Suits
ARGON CREDIT: FRS Bid to Dismiss L. Kitchen Suit Denied
AYTU BIOPHARMA: Chief Financial Officer Resigns
BOY SCOUTS: AIG Seeks Delay to Touted $800 Million Settlement
BOY SCOUTS: Reaches $800 Mil. Victim Payment Deal With Chubb Ltd.
BOY SCOUTS: Tort Claimants Bash Proposed Email Row Fix
BRAZOS ELECTRIC: Hires JPMorgan Securities for Securitization Work
BRAZOS ELECTRIC: Plan Filing Deadline Extended to March 28, 2022
CALPLANT I: Taps KCoe Isom as Auditor, Tax Services Provider
CCMW LLC: Court Approves Mediated Settlement Agreement
CE ELECTRICAL: Unsecured Creditors Will Get 5% Dividend in Plan
DAME CONTRACTING: Wins Cash Collateral Access Thru Feb 2022
EAGLE HOSPITALITY: Court Fines Fraudsters Who Kept $2.4 Million
EAGLE HOSPITALITY: Ex-Execs Penalized for Not Accounting PPP Loan
ENERMEX INTERNATIONAL: Taps Gilbert Group as Special Counsel
FEDERAL CITY: Caterer Seeks Chapter 7 Bankruptcy
GIRARDI & KEESE: Edelson Seeks Solid Case Prior Flagging Concerns
GTT COMMUNICATIONS: Court OKs Ch.11 Plan Without Release Clause
HBL SNF: Cash Collateral Access, $1.5MM DIP Loan OK'd
INTELSAT SA: Asks Bankruptcy Court to Approve Exit Financing Plan
INTELSAT SA: Files Settlement to Pay First-Lien Notes in Ch.11
L&L WINGS: Interest Holders to Contribute $6M to Plan Funding
L&L WINGS: Seeks to Employ SSG Advisors as Investment Banker
LEHMAN BROTHERS: Bankruptcy Judge Chapman to Retire in 2022
LTL MANAGEMENT: Jones Day Representation in Chapter 11 Okayed
MALLET INC: Seeks to Hire Backenroth as Bankruptcy Counsel
MALLETT INC: Seeks to Hire Mazars USA as Tax Accountant
MALLETT INC: Taps Lester Bleckner & Shaw as Special Counsel
MISSOURI JACK: Creditors to Get New Value or Plan Contribution
MLK BRYANT: Seeks to Hire Michael D. O'Brien as Bankruptcy Counsel
PIPELINE FOODS: Taps Finley Group as New Financial Advisor
PWM PROPERTY: Affiliate 181 West Wins Cash Collateral Access
PWM PROPERTY: Affiliate 245 Park Avenue Wins Cash Collateral Access
PWM PROPERTY: Avoids Chapter 11 Case Dismissal
RELIEF TELEMED: Gets Interim OK to Employ Provost as Accountant
RGN-GROUP: Teachers Insurance Appeals May Proceed
SPEED INDUSTRIAL: Unsecured Creditors to Recover 100% in Plan
TALEN ENERGY: Closes First-Lien Financing Worth $848 Million
TELIGENT INC: Court Approves 3-Part Chapter 11 Stalking Horse Sale
USA GYMNASTICS: Gets Court Approval for Plan After Settlement
USA GYMNASTICS: Reaches $380 Mil. Deal With Abuse Survivors
[^] BOOK REVIEW: Jacob Fugger the Rich
*********
801 ASBURY AVENUE: 176 Route Gets Interim Cash Collateral Access
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Judge Andrew B. Altenburg, Jr. of the U.S. Bankruptcy Court for the
District of New Jersey authorized 176 Route 50, LLC,
debtor-affiliate of 801 Asbury Avenue, LLC, to use cash collateral
from December 19 through January 22, 2022.
The Debtor will use the cash collateral to maintain and preserve
its assets and to continue operation of its business.
The Debtor's cash flow projection provided for these total weekly
disbursements:
$532 for the week ending December 25, 2021;
$7,716 for the week ending January 1, 2022;
$1,730 for the week ending January 8, 2022;
$0 for the week ending January 15, 2022; and
$1,500 for the week ending January 22, 2022.
Judge Altenburg also authorized the Debtor to conduct emergency
maintenance and repairs to the Property known as 176 Route 50,
Estell Manor, NJ, provided that the Debtor shall present to lender,
National Capital Management LP ("NCM") pertinent documentation and
costs of repairs immediately thereafter. The Court further ruled
the Debtor may also pay for maintenance and repair costs of less
than $750 without NCM's prior written consent. Prepetition, the
Debtor contracted debts to NCM and another lender, Kutztown
Mortgage Partners, LLC, through a series of loans that are secured
by a blanket lien on all of the Debtor's assets.
As adequate protection, the Lenders are granted replacement liens
to the same extent, validity and priority of their respective
prepetition liens, for the diminution in value of such creditor's
prepetition liens in cash collateral. The Lenders shall have a
superpriority administrative expense claim to the extent the
adequate protection provided proves insufficient. Moreover, the
Debtor shall make monthly adequate protection payments of $1,730 to
the Lenders during the interim period, plus any "overage" defined
as additional monthly revenue over budgeted expenses.
A copy of the order and the Debtor's budget is available for free
at https://bit.ly/3m9sOam from PacerMonitor.com.
A final hearing on the use of cash collateral will be held January
20, 2022, at 10 a.m. Objections must be filed and served on or
before January 18.
About 801 Asbury Avenue
801 Asbury Avenue, LLC is a New Jersey limited liability
corporation which owns and operates commercial real property in
Ocean City.
801 Asbury Avenue, LLC along with affiliate 176 Route 50, LLC
sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. D. N.J. Case No. 21-14401 and 21-14402) on May 26, 2021. In
the petition signed by James McCallion, sole member, 801 Asbury
disclosed up to $10 million in both assets and liabilities.
Judge Andrew B. Altenburg, Jr. oversees the jointly administered
cases.
David B. Smith, Esq., at Smith Kane Holman, LLC is the Debtors'
counsel.
801 ASBURY AVENUE: Wins Cash Collateral Access Thru Jan 2022
------------------------------------------------------------
Judge Andrew B. Altenburg, Jr. of the U.S. Bankruptcy Court for the
District of New Jersey authorized 801 Asbury Avenue, LLC to
continue using cash collateral from December 19, 2021, through and
including January 22, 2022, pursuant to a budget.
The Debtor will use the cash collateral to (a) maintain and
preserve its assets; (b) to continue operation of its business; and
(c) conduct emergency maintenance and repairs to certain of its
properties.
The Debtor is authorized to make necessary maintenance and repairs
costing less than $750 to the Property without prior written
consent from National Capital Management LP; repairs and
maintenance costing more than $750 will require the Debtor to
provide documentation to NCM and obtain prior written consent from
NCM.
As adequate protection, lenders NCM and Kutztown Mortgage Partners,
LLC (KMP) are granted replacement liens in their respective
prepetition collateral to the same extent, validity and priority
of their respective prepetition liens, for the diminution in value
of their prepetition liens in cash collateral. The Lenders shall
have a superpriority administrative expense claim to the extent the
adequate protection proves insufficient.
The Debtor is required to make its monthly payments to the Lenders
as adequate protection payments in the amount of $3,340 (plus any
"overage" defined as additional monthly revenue over budgeted
expenses) for the duration of the Order.
The final hearing on the matter is scheduled for January 20 at 10
a.m.
A copy of the interim order and the Debtor's budget from December
25, 2021 to January 22, 2022 is available at https://bit.ly/3239xjP
from PacerMonitor.com at no charge.
The Debtor projects total disbursements of $8,998 for the week
ending December 25, 2021 and $3,340 for the week ending January 8,
2022.
About 801 Asbury Avenue
801 Asbury Avenue, LLC is a New Jersey limited liability
corporation which owns and operates commercial real property in
Ocean City.
801 Asbury Avenue, LLC along with affiliate 176 Route 50, LLC
sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. D.N.J. Case No. 21-14401 and 21-14402) on May 26, 2021. In
the petition signed by James McCallion, sole member, 801 Asbury
disclosed up to $10 million in both assets and liabilities.
Judge Andrew B. Altenburg, Jr. oversees the jointly administered
cases.
David B. Smith, Esq., at Smith Kane Holman, LLC is the Debtors'
counsel.
A & G PIZZA: Gets Cash Collateral Access
----------------------------------------
The U.S. Bankruptcy Court for the Eastern District of North
Carolina, Raleigh Division, has authorized A & G Pizza, Inc. to use
cash collateral on an interim basis in accordance with the budget,
with a 10% variance.
US Foods, Inc. is identified as the secured party in a UCC
Financing Statement filed with the NC Secretary of State (file
number 20180014280H). The Debtor does not believe that any
outstanding accounts payable are owed to US Foods.
The North Carolina Department of Revenue also has an interest in
Cash Collateral by virtue of a tax lien filed in 2020 in the amount
of $17,168.
Adequate protection of the Secured Creditors' interest in the
collateral exists in the form of replacement liens in
after-acquired revenue to the same extent as they had prior to the
bankruptcy. Following the period covered by the Order, the Debtor
believes it will be in a position where it can responsibly
determine what, if any, additional adequate protection can be
offered.
The Court ruled that the Debtor may use cash collateral provided
that the Secured Creditors will be granted liens in after-acquired
revenue to the same extent and priority as they had prior to the
filing of the case.
A further hearing on the matter is scheduled for January 24, 2022
at 12:30 p.m.
A copy of the order and the Debtor's budget for the period from
December 1, 2021, to January 31, 2022, is available at
https://bit.ly/3ytR5wv from PacerMonitor.com.
The Debtor projects $61,700 in total available cash and $55,448 in
total expenses.
About A & G Pizza, Inc.
A & G Pizza, Inc. operates "Milano Pizza" in Zebulon, North
Carolina. Milano Pizza has been in business for over 30 years. The
debtor-entity, owned by Aiman Abdelhadi, has operated Milano Pizza
since 2015.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.C. Case No. 21-02160) on September
29, 2021. In the petition filed by Aiman Abdelhadi, president, the
Debtor disclosed up to $50,000 in assets and up to $500,000 in
liabilities.
Judge David M. Warren oversees the case.
Travis Sasser, Esq., at Sasser Law Firm is the Debtor's counsel.
ADLI LAW: Seeks to Hire Hahn & Hahn as Bankruptcy Counsel
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Adli Law Group, P.C. seeks approval from the U.S. Bankruptcy Court
for the Central District of California to hire Hahn & Hahn, LLP to
serve as legal counsel in its Chapter 11 case.
The firm's services include:
(a) advising the Debtor on the requirements of the court, U.S.
bankruptcy laws, and the U.S. trustee's guidelines and requirements
for Chapter 11 debtors;
(b) advising the Debtor on the rights and remedies of its
bankruptcy estate and the rights, claims, and interests of
creditors;
(c) representing the Debtor in any proceeding or hearing
before the court involving its estate unless the Debtor is
represented in such proceeding or hearing by a special counsel;
(d) conducting examinations of witnesses, claimants, or
adverse parties and representing the Debtor in any adversary
proceeding, except to the extent that the subject matter of such
proceeding is in an area outside of the firm's expertise or the
representation of the Debtor in such proceeding is beyond the
firm's staffing capabilities;
(e) assisting the Debtor in the preparation of reports,
bankruptcy schedules, statement of financial affairs and legal
papers;
(f) assisting the Debtor in seeking approval to use cash
collateral or obtain financing, including, without limitation,
negotiating with lenders and preparing court papers;
(g) assisting the Debtor in the negotiation, formulation,
preparation, and confirmation of a plan of reorganization; and
(h) performing other necessary legal services.
The firm's hourly rates are as follows:
Dean G. Rallis Jr., Esq. $620 per hour
Attorneys $300 - $620 per hour
Paralegals $225 - $240 per hour
Dean Rallis Jr., 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:
Dean G. Rallis Jr., Esq.
Hahn & Hahn LLP
301 E. Colorado Blvd., 9th Floor
Pasadena, CA 91101-1977
Tel.: (626) 796-9123
Fax: (626) 449-7357
Email: drallis@hahnlawyers.com
About Adli Law Group P.C.
Adli Law Group, P.C., a full-service law firm in Los Angeles, filed
a petition for Chapter 11 protection (Bankr. C.D. Calif. Case No.
21-18572) on Nov. 10, 2021, listing $4,552,705 in assets and
$4,538,284 in liabilities. Dariush G. Adli, president of Adli Law
Group, signed the petition.
Judge Sheri Bluebond oversees the case.
The Debtor tapped Dean G. Rallis Jr., Esq., at Hahn & Hahn, LLP as
legal counsel.
AGUILA INC: U.S. Trustee Appoints Creditors' Committee
------------------------------------------------------
The U.S. Trustee for Region 2 on Dec. 14 appointed an official
committee to represent unsecured creditors in the Chapter 11 case
of Aguila, Inc.
The committee members are:
1. Parkview Hotel, LLC
P.O. Box 1550 Radio City Station
New York, NY 10101
Attention: Albert Faks, Asset Manager
Phone: 917-560-4774
Email: afaks@finance36.com
2. Daniel Blanco
92 North Avenue
New Rochelle, NY 10801
Phone: 917-828-0312
Email: dannyblanco1@gmail.com
3. Kalman Tabak
2137 79th Street
Brooklyn, NY 11214
Phone: 917-215-9665
Email: kalmantabak@gmail.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Aguila Inc.
Aguila Inc., a nonprofit homeless services organization in New
York, filed a petition for Chapter 11 protection (Bankr. S.D.N.Y.
Case No. 21- 11776) on Oct. 15, 2021, listing as much as $10
million in both assets and liabilities.
The case is handled by Judge Martin Glenn.
Robert Leslie Rattet, Esq., at Davidoff Hutcher & Citron, LLP
serves as the Debtor's legal counsel.
ALL YEAR HOLDINGS: Seeks Chapter 11 Bankruptcy Protection
---------------------------------------------------------
Andrew Scurria of The Wall Street Journal reports that Brooklyn
property developer Yoel Goldman's All Year Holdings Ltd. filed for
bankruptcy Tuesday, December 14, 2021, to protect itself from
potential litigation in the U.S. and Israel while continuing
negotiations with creditors over $1.56 billion in debt.
All Year has been in restructuring talks with bondholders since
April 2021 and looking for investors to either recapitalize or
outright buy its property business, according to papers filed in
the U.S. Bankruptcy Court in Manhattan.
About All Year Holdings Ltd.
All Year Holdings Ltd. is a real estate development company founded
by American real estate developer Yoel Goldman.
All Year Holdings sought Chapter 11 bankruptcy protection (Bankr.
S.D.N.Y. Case No. 21-12051) on Dec. 14, 2021. The Debtor estimated
$1 billion to $10 billion in assets and liabilities. Weil,
Gotshal & Manges LLP, led by Matthew Paul Goren, is the Debtor's
counsel.
ALLIED SYSTEMS: Court Denies Yucaipa's Bid to Stay Suits
--------------------------------------------------------
The United States Bankruptcy Court for the District of Delaware
denies the motion filed by Yucaipa American Alliance Fund I, L.P.
and Yucaipa American Alliance (Parallel) Fund I, L.P., to stay
pursuant to Bankruptcy Rule 8007(e) the adversary proceedings
captioned CATHERINE E. YOUNGMAN, LITIGATION TRUSTEE FOR ASHINC
CORPORATION, ET AL., AS SUCCESSOR TO THE OFFICIAL COMMITTEE OF
UNSECURED CREDITORS OF ASHINC CORPORATION, AND ITS AFFILIATED
DEBTORS Plaintiff, BDCM OPPORTUNITY FUND II, LP BLACK DIAMOND CLO
2005-1 LTD., SPECTRUM INVESTMENT PARTNERS, L.P., Intervenors, v.
YUCAIPA AMERICAN ALLIANCE FUND I, L.P., YUCAIPA AMERICAN ALLIANCE
(PARALLEL) FUND I, L.P., Defendants. CATHERINE E. YOUNGMAN,
LITIGATION TRUSTEE FOR ASHINC CORPORATION, ET AL., TO BDCM
OPPORTUNITY FUND II, LP., BLACK DIAMOND CLO 2005-1 LTD., SPECTRUM
INVESTMENT PARTNTERS L.P., BLACK DIAMOND COMMERICAL FINANCE,
L.L.C., as co-administrative agent, and SPECTRUM COMMERICAL FINANCE
LLC, as co-administrative agent Plaintiff, v. YUCAIPA AMERICAN
ALLIANCE FUND I, L.P., YUCAIPA AMERICAN ALLIANCE (PARALLEL) FUND I,
L.P., Defendants, Adv. Proc. No. 13-50530 (CSS), Adv. Pro. No.
14-50971 (CSS) (Bankr. D. Del.).
The Court explains that a stay of all proceedings pending
resolution of the appeals "will serve to carry on the delays that
[Yucaipa] has been so successful in achieving to date, to the
immediate and irreparable detriment of [Allied's] creditors and []
estate." Further, a stay will not "preserve the parties' and the
Court's resources," as Yucaipa claims.
On the contrary, it would deplete them, the Court says. The
parties and the Court are highly familiar with the facts, operative
documents, and issues of this case as a result of the recent
cross-motions for summary judgment.
Trial should be held now so that the parties and the Court are not
forced to relearn these topics after a long period of time, the
Court concludes.
A full-text copy of the Memorandum Order dated December 6, 2021, is
available at https://tinyurl.com/mr3v4x5h from Leagle.com.
About Allied Systems Holdings
BDCM Opportunity Fund II, LP, Spectrum Investment Partners LP, and
Black Diamond CLO 2005-1 Adviser L.L.C., filed involuntary
petitions for Allied Systems Holdings Inc. and Allied Systems Ltd.
(Bankr. D. Del. Case Nos. 12-11564 and 12-11565) on May 17, 2012.
The signatories of the involuntary petitions assert claims of at
least $52.8 million for loan defaults by the two companies.
Allied Systems, through its subsidiaries, provides logistics,
distribution, and transportation services for the automotive
industry in North America.
Allied Holdings Inc. first filed for chapter 11 protection (Bankr.
N.D. Ga. Case Nos. 05-12515 through 05-12537) on July 31, 2005.
Jeffrey W. Kelley, Esq., at Troutman Sanders, LLP, represented the
Debtors in the 2005 case. Allied won confirmation of a
reorganization plan and emerged from bankruptcy in May 2007 with
$265 million in first-lien debt and $50 million in second-lien
debt.
The petitioning creditors said Allied defaulted on payments of
$57.4 million on the first lien debt and $9.6 million on the
second. They hold $47.9 million, or about 20% of the first-lien
debt, and about $5 million, or 17%, of the second-lien obligation.
They are represented by Adam G. Landis, Esq., and Kerri K. Mumford,
Esq., at Landis Rath & Cobb LLP; and Adam C. Harris, Esq., and
Robert J. Ward, Esq., at Schulte Roth & Zabel LLP.
Allied Systems Holdings Inc. formally put itself and 18
subsidiaries into bankruptcy reorganization June 10, 2012,
following the filing of the involuntary Chapter 11 petition.
The Company is being advised by Mark D. Collins, Esq., at Richards,
Layton & Finger, P.A., and Jeffrey W. Kelley, Esq., at Troutman
Sanders, Gowling Lafleur Henderson.
The bankruptcy court process does not include captive insurance
company Haul Insurance Limited or any of the Company's Mexican or
Bermudan subsidiaries. The Company also announced that it intends
to seek foreign recognition of its Chapter 11 cases in Canada.
An official committee of unsecured creditors has been appointed in
the case. The Committee consists of Pension Benefit Guaranty
Corporation, Central States Pension Fund, Teamsters National
Automobile Transporters Industry Negotiating Committee, and General
Motors LLC. The Committee is represented by Sidley Austin LLP.
In January 2014, the U.S. Trustee for Region 3 appointed a
three-member Official Committee of Retirees.
Yucaipa Cos. has 55% of the senior debt and took the position it
had the right to control actions the indenture trustee would take
on behalf of debt holders. The state court ruled in March 2013 that
the loan documents didn't allow Yucaipa to vote.
In March 2013, the bankruptcy court gave the official creditors'
committee authority to sue Yucaipa. The suit includes claims that
the debt held by Yucaipa should be treated as equity or
subordinated so everyone else is paid before the Los Angeles-based
owner. The judge allowed Black Diamond to participate in the
lawsuit against Yucaipa and Allied directors.
Yucaipa American Alliance Fund I, L.P., Yucaipa American Alliance
(Parallel) Fund I, L.P., Yucaipa American Alliance Fund II, L.P.,
Yucaipa American Alliance (Parallel) Fund II, L.P., represented by
Michael R. Nestor, Esq., and Edmund L. Morton, Esq., at Young
Conaway Stargatt & Taylor, LLP; and Robert A. Klyman, Esq., at
Gibson, Dunn & Crutcher LLP.
First Lien Agent, Black Diamond Commercial Finance, L.L.C.,
represented by Adam G. Landis, Esq., and Kerri K. Mumford, Esq., at
Landis Rath & Cobb LLP; and Adam C. Harris, Esq., Robert J. Ward,
Esq., and David M. Hillman, Esq., at Schulte Roth & Zabel LLP.
Allied Systems Holdings, Inc., changed its name to ASHINC
Corporation.
* * *
ASHINC Corporation, f/k/a Allied Systems Holdings, Inc., and its
debtor affiliates filed with the U.S. Bankruptcy Court for the
District of Delaware a joint Chapter 11 plan of reorganization,
co-proposed by the Committee and the first lien agents. The Plan
provides that certain of the Debtors' assets, the Litigation Trust
Assets, will vest in the Allied Litigation Trust, and the remainder
of the Debtors' assets, including the proceeds from the sale of
substantially all of the Debtors' assets, will either revest in the
Reorganized Debtors or be distributed to the Debtors' creditors.
ARGON CREDIT: FRS Bid to Dismiss L. Kitchen Suit Denied
-------------------------------------------------------
The adversary proceeding captioned, LATONYA D. KITCHEN and KARENSA
HUTCHENS, Plaintiffs, v. FUND RECOVERY SERVICES, LLC, Defendant,
Adv. Proc. No. 21-00048 (Bankr. N.D. Ill.), seeks restitution under
California law.
In 2015 and 2016, Argon's affiliate entered into consumer loan
agreements with California residents, including Plaintiffs. Argon X
financed these consumer loans by borrowing under a loan and
security agreement ("LSA") that gave its lender a security interest
in the consumer loan receivables and a parent guarantee from Argon
Credit. That secured lender subsequently assigned all rights and
remedies under the LSA and the guarantee -- and its interest in the
consumer loan receivables -- to another entity, which subsequently
assigned them to FRS.
FRS now asks the United States Bankruptcy Court for the Northern
District of Illinois to dismiss the Plaintiffs' amended complaint
for lack of subject matter jurisdiction or, alternatively, to
abstain from hearing the dispute. Specifically, FRS argues that
subject matter jurisdiction lapsed when the Trustee abandoned a
portfolio of consumer loans including the loans extended to the
Plaintiffs by Argon Credit LLC and Argon X, LLC.
The Court finds that resolution of the dispute between the
Plaintiffs and FRS affects the size of FRS's unsecured claim, which
in turn has a potential effect on the size of distributions to the
Debtors' other unsecured creditors. For this reason, and
notwithstanding the abandonment of the loan portfolio, the Court
retains subject matter jurisdiction to hear the dispute as a
noncore proceeding related to the Debtors' bankruptcy cases. In the
absence of compelling reasons to abstain, the Court does not
abstain from exercising its jurisdiction. Therefore, FRS's motion
is denied.
A full-text copy of the Memorandum Opinion dated December 8, 2021,
is available at https://tinyurl.com/y23jh5ax from Leagle.com.
About Argon Credit
Argon Credit LLC and Argon X LLC filed chapter 11 petitions (Bankr.
N.D. Ill. Case Nos. 16-39654 and 16-39655) on Dec. 16, 2016. The
petitions were signed by Raviv Wolfe, chief executive officer. The
Debtors are represented by Matthew T. Gensburg, Esq., and Philip E.
Groben, Esq., at Dale & Gensburg, P.C. The cases are assigned to
Judge Timothy A. Barnes.
Argon Credit LLC estimated assets at $1 million to $10 million and
liabilities at $50 million to $100 million. Argon X LLC estimated
assets at $10 million to $50 million and liabilities at $50 million
to $100 million.
AYTU BIOPHARMA: Chief Financial Officer Resigns
-----------------------------------------------
Richard I. Eisenstadt resigned as chief financial officer of Aytu
BioPharma, Inc., effective Dec. 30, 2021, to pursue another
opportunity at a development-stage pharmaceutical company.
Aytu BioPharma said Mr. Eisenstadt's resignation is not due to any
outstanding issues with the company or disagreements with respect
to its operations, policies, practices, and independent auditors.
The company has initiated a search to identify and recruit a new
candidate for the role of chief financial officer.
About Aytu BioPharma
Englewood, Colorado-based Aytu BioPharma, Inc., formerly known as
Aytu BioScience, Inc. -- http://www.aytubio.com-- is a specialty
pharmaceutical company with a growing commercial portfolio of
prescription therapeutics and consumer health products. The
company's primary prescription products treat attention deficit
hyperactivity disorder (ADHD) and other common pediatric
conditions. Aytu markets ADHD products Adzenys XR-ODT
(amphetamine) extended-release orally disintegrating tablets,
Cotempla XR-ODT (methylphenidate) extended-release orally
disintegrating tablets, and Adzenys-ER (amphetamine)
extended-release oral suspension.
Aytu Biopharma reported a net loss of $58.29 million for the year
ended June 30, 2021, compared to a net loss of $13.62 million
for the year ended June 30, 2020. As of Sept. 30, 2021, the
Company had $227.73 million in total assets, $116.23 million in
total liabilities, and $111.50 million in total stockholders'
equity.
BOY SCOUTS: AIG Seeks Delay to Touted $800 Million Settlement
-------------------------------------------------------------
Leslie Pappas of Law360 reports that closing in on the voting
deadline for its Chapter 11 plan, the Boy Scouts of America on
Tuesday, December 14, 2021, hailed an $800 million settlement for
sexual abuse claimants while fending off criticisms that the plan
is being rushed and survivors are getting frustrated about mixed
messages from attorneys.
The agreement with Century Indemnity Co. and other Chubb Ltd.
insurers, a committee of local councils, a coalition of sexual
abuse survivors, and a future claims representative is a
"monumental breakthrough," Boy Scouts attorney Jessica C. Lauria of
White & Case LLP said at a virtual hearing Tuesday at a bankruptcy
court in Delaware.
About Boy Scouts of America
The Boy Scouts of America -- https://www.scouting.org/ -- is a
federally chartered non-profit corporation under title 36 of the
United States Code. Founded in 1910 and chartered by an act of
Congress in 1916, the BSA's mission is to train youth in
responsible citizenship, character development, and self-reliance
through participation in a wide range of outdoor activities,
educational programs, and, at older age levels, career-oriented
programs in partnership with community organizations. Its national
headquarters is located in Irving, Texas.
The Boy Scouts of America and affiliate Delaware BSA, LLC, sought
Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-10343) on
Feb. 18, 2020, to deal with sexual abuse claims.
Boy Scouts of America was estimated to have $1 billion to $10
billion in assets and at least $500 million in liabilities as of
the bankruptcy filing.
The Debtors have tapped Sidley Austin LLP as their bankruptcy
counsel, Morris, Nichols, Arsht & Tunnell LLP as Delaware counsel,
and Alvarez & Marsal North America, LLC as financial advisor. Omni
Agent Solutions is the claims agent.
The U.S. Trustee for Region 3 appointed a tort claimants' committee
and an unsecured creditors' committee on March 5, 2020. The tort
claimants' committee is represented by Pachulski Stang Ziehl &
Jones, LLP, while the unsecured creditors' committee is represented
by Kramer Levin Naftalis & Frankel, LLP.
BOY SCOUTS: Reaches $800 Mil. Victim Payment Deal With Chubb Ltd.
-----------------------------------------------------------------
Alex Wolf of Bloomberg Law reports that the Boy Scouts of America
and Chubb Ltd. reaches $800 million cictim payment deal.
The Boy Scouts of America reached an agreement in principle with
insurer Chubb Ltd. to pay $800 million in insurance proceeds to
settle with more than 80,000 former scouts who filed sexual abuse
claims, increasing the size of a proposed Chapter 11 victims'
fund.
The pool of funds to compensate victims is now expected to exceed
$2.7 billion over the coming weeks with additional insurance
proceeds and contributions, the Boy Scouts said in a statement
Monday, December 13, 2021. "This will be the largest sexual abuse
compensation fund in the history of the United States," it said.
About Boy Scouts of America
The Boy Scouts of America -- https://www.scouting.org/ -- is a
federally chartered non-profit corporation under title 36 of the
United States Code. Founded in 1910 and chartered by an act of
Congress in 1916, the BSA's mission is to train youth in
responsible citizenship, character development, and self-reliance
through participation in a wide range of outdoor activities,
educational programs, and, at older age levels, career-oriented
programs in partnership with community organizations. Its national
headquarters is located in Irving, Texas.
The Boy Scouts of America and affiliate Delaware BSA, LLC, sought
Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-10343) on
Feb. 18, 2020, to deal with sexual abuse claims.
Boy Scouts of America was estimated to have $1 billion to $10
billion in assets and at least $500 million in liabilities as of
the bankruptcy filing.
The Debtors have tapped Sidley Austin LLP as their bankruptcy
counsel, Morris, Nichols, Arsht & Tunnell LLP as Delaware counsel,
and Alvarez & Marsal North America, LLC as financial advisor. Omni
Agent Solutions is the claims agent.
The U.S. Trustee for Region 3 appointed a tort claimants' committee
and an unsecured creditors' committee on March 5, 2020. The tort
claimants' committee is represented by Pachulski Stang Ziehl &
Jones, LLP, while the unsecured creditors' committee is represented
by Kramer Levin Naftalis & Frankel, LLP.
BOY SCOUTS: Tort Claimants Bash Proposed Email Row Fix
------------------------------------------------------
Leslie Pappas of Law360 reports that a committee of tort claimants
in the Boy Scouts of America's bankruptcy case that "polluted the
voting process" for the debtors' Chapter 11 plan is now "further
wasting time and estate resources" by suggesting that sexual abuse
claimants be sent more information, the Boy Scouts said Monday,
December 13. 2021.
Attorneys representing members of an informal survivor group called
Abused in Scouting should not be court-ordered to send a joint
communication to their clients with more advice about the plan, the
Boy Scouts said in a filing on Monday, December 13, 2021, urging a
Delaware bankruptcy judge to reject the proposal from the official
committee of tort claimants.
About Boy Scouts of America
The Boy Scouts of America -- https://www.scouting.org/ -- is a
federally chartered non-profit corporation under title 36 of the
United States Code. Founded in 1910 and chartered by an act of
Congress in 1916, the BSA's mission is to train youth in
responsible citizenship, character development, and self-reliance
through participation in a wide range of outdoor activities,
educational programs, and, at older age levels, career-oriented
programs in partnership with community organizations. Its national
headquarters is located in Irving, Texas.
The Boy Scouts of America and affiliate Delaware BSA, LLC, sought
Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-10343) on
Feb. 18, 2020, to deal with sexual abuse claims.
Boy Scouts of America was estimated to have $1 billion to $10
billion in assets and at least $500 million in liabilities as of
the bankruptcy filing.
The Debtors have tapped Sidley Austin LLP as their bankruptcy
counsel, Morris, Nichols, Arsht & Tunnell LLP as Delaware counsel,
and Alvarez & Marsal North America, LLC as financial advisor. Omni
Agent Solutions is the claims agent.
The U.S. Trustee for Region 3 appointed a tort claimants' committee
and an unsecured creditors' committee on March 5, 2020. The tort
claimants' committee is represented by Pachulski Stang Ziehl &
Jones, LLP, while the unsecured creditors' committee is represented
by Kramer Levin Naftalis & Frankel, LLP.
BRAZOS ELECTRIC: Hires JPMorgan Securities for Securitization Work
------------------------------------------------------------------
Jeremy Hill of Bloomberg News reports that Brazos Electric Power
Cooperative hires JPMorgan Securities to handle its securitization
work.
Brazos Electric Power Cooperative has tapped JP Morgan Securities
as investment banker and structuring adviser after a prior
engagement with Citigroup Global Markets fell through, a lawyer for
the bankrupt utility said in a hearing Tuesday, December 14, 2021.
Brazos is exploring, among other things, a potential securitization
of as much as $2B owed to Texas’ electric grid operator in the
wake of Winter Storm Uri.
Citigroup failed to finalize its own engagement with Brazos in part
due to disclosure issues, Louis Strubeck of O’Melveny & Myers
said in the hearing.
JPMorgan will initially receive $125,000 per month for its
services.
About Brazos Electric Power Cooperative
Brazos Electric Power Cooperative Inc. is a 3,994-megawatt
transmission and generation cooperative which members' service
territory covers 68 counties from the Texas Panhandle to Houston.
It was organized in 1941 and the first cooperative formed in the
Lone Star state with the primary intent of generating and supplying
electrical power. At present, Brazos Electric is the largest
generation and transmission cooperative in the state and is the
wholesale power supplier for its 16 member-owner distribution
cooperatives and one municipal system.
Before the severe cold weather that blanketed Texas with
sub-freezing temperatures February 2021, Brazos Electric was in all
respects a financially robust, stable company with a strong "A" to
"A+" credit rating. But Brazos Electric Power Cooperative ended up
in Chapter 11 bankruptcy in Texas after racking up an estimated
$2.1 billion in charges from Electric Reliability Council of Texas
(ERCOT) over seven days of the freeze.
Brazos Electric filed a voluntary petition for relief under Chapter
11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 21-30725)
on March 1, 2021. At the time of the filing, the Debtor disclosed
assets of between $1 billion and $10 billion and liabilities of the
same range.
Judge David R. Jones oversees the case.
The Debtor tapped Norton Rose Fulbright US, LLP and O'Melveny &
Myers LLP as bankruptcy counsel; Foley & Lardner LLP and Eversheds
Sutherland US LLP as special counsel; Collet & Associates LLC as
investment banker; and Berkeley Research Group, LLC as financial
advisor. Ted B. Lyon & Associates, The Gallagher Law Firm, West &
Associates LLP, Butch Boyd Law Firm and Boyd Smith Law Firm, PLLC
serve as special litigation counsel and McKool Smith PC serves as
special conflicts counsel. Stretto is the claims and noticing
agent.
The U.S. Trustee for Region 7 appointed an official committee of
unsecured creditors in the Debtor's case on March 15, 2021. The
committee is represented by the law firms of Porter Hedges, LLP and
Kramer, Levin, Naftalis & Frankel, LLP. FTI Consulting, Inc. and
Lazard Freres & Co. LLC serve as the committee's financial advisor
and investment banker, respectively.
BRAZOS ELECTRIC: Plan Filing Deadline Extended to March 28, 2022
----------------------------------------------------------------
Rick Archer of Law360 reports that a Texas bankruptcy judge has
given Brazos Electric Power Cooperative Inc. a
three-and-a-half-month extension on its deadline to file a Chapter
11 plan over the objections of cooperative members who say the
utility is pursuing the wrong strategy.
At a hearing Tuesday, December 14, 2021, U. S. Bankruptcy Judge
David Jones approved Brazos' request to extend its exclusivity
period – during which it is the only party allowed to propose a
Chapter 11 plan – through March 28, 2022. It will have the
exclusive rights to solicit creditor votes for a plan through May
25, 2022.
About Brazos Electric Power Cooperative
Brazos Electric Power Cooperative Inc. is a 3,994-megawatt
transmission and generation cooperative which members' service
territory covers 68 counties from the Texas Panhandle to Houston.
It was organized in 1941 and the first cooperative formed in the
Lone Star state with the primary intent of generating and supplying
electrical power. At present, Brazos Electric is the largest
generation and transmission cooperative in the state and is the
wholesale power supplier for its 16 member-owner distribution
cooperatives and one municipal system.
Before the severe cold weather that blanketed Texas with
sub-freezing temperatures February 2021, Brazos Electric was in all
respects a financially robust, stable company with a strong "A" to
"A+" credit rating. But Brazos Electric Power Cooperative ended up
in Chapter 11 bankruptcy in Texas after racking up an estimated
$2.1 billion in charges from Electric Reliability Council of Texas
(ERCOT) over seven days of the freeze.
Brazos Electric filed a voluntary petition for relief under Chapter
11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 21-30725)
on March 1, 2021. At the time of the filing, the Debtor disclosed
assets of between $1 billion and $10 billion and liabilities of the
same range.
Judge David R. Jones oversees the case.
The Debtor tapped Norton Rose Fulbright US, LLP and O'Melveny &
Myers LLP as bankruptcy counsel; Foley & Lardner LLP and Eversheds
Sutherland US LLP as special counsel; Collet & Associates LLC as
investment banker; and Berkeley Research Group, LLC as financial
advisor. Ted B. Lyon & Associates, The Gallagher Law Firm, West &
Associates LLP, Butch Boyd Law Firm and Boyd Smith Law Firm, PLLC
serve as special litigation counsel and McKool Smith PC serves as
special conflicts counsel. Stretto is the claims and noticing
agent.
The U.S. Trustee for Region 7 appointed an official committee of
unsecured creditors in the Debtor's case on March 15, 2021. The
committee is represented by the law firms of Porter Hedges, LLP and
Kramer, Levin, Naftalis & Frankel, LLP. FTI Consulting, Inc. and
Lazard Freres & Co. LLC serve as the committee's financial advisor
and investment banker, respectively.
CALPLANT I: Taps KCoe Isom as Auditor, Tax Services Provider
------------------------------------------------------------
CalPlant I Holdco, LLC and CalPlant I, LLC seek approval from the
U.S. Bankruptcy Court for the District of Delaware to hire KCoe
Isom, LLP as auditor and tax services provider.
The firm's services include:
(a) auditing financial statements for the year ended Dec. 31,
2021 for CalPlant I;
(b) auditing the consolidated financial statements for the
year ended Dec. 31, 2021 for CalPlant I Holdco and CalPlant I;
(c) preparing the 2021 federal and state income tax returns
for both companies;
(d) preparing year-end income tax planning for both companies;
and
(e) providing accounting services throughout the year, which
include 1099 preparation for CalPlant I Holdco.
The firm's hourly rates are as follows:
Partner 1 $525.10 per hour
Principal $430.79 per hour
ITR - EQCR $525.10 per hour
Senior Manager $410.00 per hour
Manager 1 $355.00 per hour
Senior 1 $286.78 per hour
Associate 1 $233.00 per hour
Admin Specialist $185.00 per hour
Accounting Specialist $179.35 per hour
Intern $200.00 per hour
William Peterson, a partner at KCoe Isom, 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:
William Peterson
KCoe Isom, LLP
2454 Builders Place, Suite 130
Chico, CA 95928
Tel: 530-891-6474
About CalPlant
CalPlant I, LLC -- http://www.eurekamdf.com/-- is a Northern
California-based company focused on manufacturing
sustainably-sourced building products, including the creation of
the world's first no-added-formaldehyde, rice straw-based medium
density fiberboard, Eureka MDF. CalPlant and its predecessor
company, CalAg, LLC, have spent many years researching, developing,
and patenting a process to make high-quality MDF using annually
renewable rice straw as the feedstock, the disposal of which has
posed environmental issues in California for decades.
CalPlant I and CalPlant I Holdco, LLC sought Chapter 11 protection
(Bankr. D. Del. Lead Case No. 21-11302) on Oct. 5, 2021. The cases
are handled by Honorable Judge John T. Dorsey.
CalPlant I Holdco listed up to $100 million in assets and up to
$50,000 in liabilities as of the bankruptcy filing while CalPlant I
listed as much as $500 million in both assets and liabilities.
The Debtors tapped Morrison & Foerster, LLP as bankruptcy counsel;
Morris James, LLP as local bankruptcy counsel; Paladin Management
Group as financial advisor; and KCoe Isom, LLP as auditor and tax
services provider. Prime Clerk, LLC is the claims, noticing and
administrative agent.
CCMW LLC: Court Approves Mediated Settlement Agreement
------------------------------------------------------
CCMW, LLC submitted a Disclosure Statement for the Amended Plan of
Liquidation dated Dec. 13, 2021.
During the Chapter 11 proceeding, Debtor has continued to operate
and collect rents from its tenants. Debtor has paid adequate
protection payments to FNB and DLT pursuant to Orders of the Court
related to the use of cash collateral.
The Debtor removed all three state court proceedings to Bankruptcy
Court and filed responsive pleadings as required. CCMW participated
in Court ordered mediation with the named Plaintiffs and Defendants
in all three proceedings and a Mediated Settlement Agreement was
reached at the mediation resolving substantially all of the pending
claims in the Adversary Proceedings. The Mediated Settlement
Agreement was approved by the Court upon entry of an Order
Approving Mediated Settlement Agreement on December 2, 2021. The
terms of the Mediated Settlement Agreement include the resolution
of the claims of FNB, DLT and Davenport.
On October 29, 2021, Debtor entered into an Asset Purchase
Agreement, subject to Court approval, with Three Blind Mice, LLC
for the purpose of the Sake Assets for the purchase price of
$2,100,000.00. Debtor filed a 363 Sale Motion on November 4, 2021
and on December 10, 2021 the Court entered an Order approving
bidding procedures and a break-up fee related to the proposed sale
of the Sale Assets to Three Blind Mice, LLC or a bidder making the
highest or otherwise best offer according to certain sale and
auction procedures ("December 10th Order").
Davenport submitted an Upset Bid pursuant to the December 10th
Order and has been deemed an Acceptable Bidder at an Upset Bid
amount of $2,200,000.00. Listing of the Real Property is expected
to occur within days of the filing of the Plan with a list price of
$2,250,000.00 and an Auction Sale will be conducted on February 14,
2022 at 12:00 pm, per the terms of the December 10th Order. A
hearing to approve the sale will be held on February 15, 2022 and
the sale shall close on or before March 15, 2022.
This Plan contemplates payments to two secured classes of creditors
using income derived from rental income during the Liquidation Sale
Period. This Plan further contemplates the sale of substantially
all of Debtor's assets and the use pf funds derived from said sale
to satisfy substantially all of Debtor's debt.
This is a plan of liquidation. The Debtor shall sell the Sale
Assets in a controlled fashion and at the highest value attainable,
in order to maximize the return of the Estate. The Cash proceeds
received from these efforts shall constitute and be added to
Available Cash. Under the Plan, certain claims shall be paid upon
expiration of the Liquidation Sale Period and certain other claims
shall be paid from Available Cash on the Distribution Date by the
Distribution Agent and distributed in accordance with the Plan of
Liquidation to creditors.
The sale contemplated by the 363 Sale Motion shall close on or
before March 15, 2022 (the "Closing Date") and it is contemplated
that a final sale order will be entered by the Court on or around
February 15, 2022.
In the event that the 363 Sale does not close on or before March
15, 2022, CCMW shall continue its engagement of Tracey G. Shrouder
of 360 Realty pursuant to the terms and conditions of an Exclusive
Right to Sell Listing Contract which shall include substantially
the same terms and conditions of compensation as the Sale and
Auction procedures. The Listing Agreement shall expire on April 15,
2022. The list price of the Sale Assets shall be no less than
$2,250,000.00 but may be adjusted to an amount equal to the highest
bid received at the February 14, 2022 Auction, At Debtor and
Shroud's discretion.
The sale of the Sale Assets shall occur within the Liquidation Sale
Period, unless otherwise modified by the Court upon request of the
Debtor. If the property is not sold on or before April 15, 2022,
the Debtor shall engage a reputable auction company to conduct an
auction of the Sale Assets. The Sale Assets shall be sold at
auction and said auction sale shall close on or before May 30, 2022
(the "Second Auction").
Upon the sale of the Sale Assets, whether pursuant to the 363 Sale
Motion or Second Auction, the purchase price, less customary
closing costs associated therewith, to include, but not limited to,
brokers commission, real property taxes and seller closing costs
("Net Sales Price"), shall be distributed at closing to the holders
of Allowed Secured Claims.
Class IV consists of the Secured Claim of First National Bank of
Pennsylvania ("FNB"). This Claim shall be treated as a secured
obligation of the Debtor in the amount of $783,487.81, which
includes attorney fees calculated at 15% of the balance due on the
Petition Date. The Allowed Secured Claim of FNB shall accrue
interest at the default rate from Petition Date to the earlier of
Date of Confirmation or the Closing Date. If the Closing Date
occurs after Date of Confirmation, the Allowed Secured Claim shall
accrue interest at the contract rate (4.75%) until the expiration
of the Liquidation Sale Period. The amount of the monthly interest
only payment at the contract rate would be $3,101.31 and at the
default rate would be $5,395.83. The Allowed Secured Claim of FNB
shall be paid in full at the expiration of the Liquidation Sale
Period.
The provisions of this Plan provide for the liquidation of the
Debtor's most substantial and valuable asset, the Real Property, in
order to satisfy its secured debt obligations and to create
Available Cash to distribute to its remaining creditors in an
effort to satisfy all claims in full. As of November 30, 2021, the
Debtor holds $3,448.52 in its bank account, which represents net
profit of the Debtor's operations. Post confirmation the bank
account is estimated to increase by approximately $5,000.00 per
month, on average.
The Debtor shall have approximately four months from the effective
date of the Plan to sell the Real Property. Should a sale not be
consummated on or before May 30, 2022, the Debtor shall employ the
services of a reputable auction company to liquidate the Sale
Assets through an auction, with the funds be dispersed pursuant to
the terms of this Plan.
A full-text copy of the Disclosure Statement dated Dec. 13, 2021,
is available at https://bit.ly/3m5CZNa from PacerMonitor.com at no
charge.
Counsel for the Debtor:
Samantha K. Brumbaugh, Esq.
Ivey, McClellan, Siegmund, Brumbaugh & McDonough, LLP
100 South Elm Street, Suite 500
Greensboro, NC 27401
Telephone: (336) 274-4658
Facsimile: (336) 274-4540
About CCMW LLC
Greensboro, N.C.-based CCMW, LLC sought protection under Chapter 11
of the Bankruptcy Code (Bankr. M.D. N.C. Case No. 21-10395) on July
20, 2021. At the time of the filing, the Debtor had $1 million to
$10 million in both assets and liabilities.
Judge Benjamin A. Kahn oversees the case.
Ivey, McClellan, Siegmund, Brumbaugh & McDonough, LLP and Lynn,
Webb & Smith, PLLC serve as the Debtor's legal counsel and
financial consultant, respectively.
CE ELECTRICAL: Unsecured Creditors Will Get 5% Dividend in Plan
---------------------------------------------------------------
CE Electrical Contractors, LLC, submitted a Revised Disclosure
Statement for the Chapter 11 Plan of Reorganization dated Dec. 13,
2021.
The Debtor is an electrical sub-contractor working on construction
projects in the State of Connecticut. It employs between 15 to 20
people at any one time.
Under the Plan, the Debtor will utilize ongoing revenues from its
business operations to pay a dividend to Allowed Claims.
Despite what seemed like overwhelming operating difficulties and
huge losses in 2020, as well as large losses in the opening period
of the chapter 11 case, the Debtor has moved toward positive cash
flow post-petition. For example, CE's attached accrued based P&L:
* Gross income has increased from approximately $102,000 in
the first month of the case to the lower $300,000 range later in
the chapter 11 case;
* Costs of goods sold ("COGS") has decreased as a percentage
of gross income, thus improving feasibility;
* Expenses have remained consistently within a small dollar
range; and
* Net income after COGS and expenses has moved from negative
to positive.
The Debtor's attached cash based P&L Statement reflects the
following:
* Gross income has varied monthly but overall has increased
from the 2nd quarter to the 3rd quarter, 2021;
* COGS have generally declined as a percentage of gross
income. Lowered COGS reflects better margins and long term
feasibility;
* Expenses remain in a narrow dollar range; and
* With the exception of August, 2021, the path of net income
has been from net losses to net gain.
The contrast between the post-petition period and year 2020 is
striking. In 2002, the Debtor has gross revenues of $13,190,523.67.
Its COGS amounted to some 90% of gross revenues. In contrast,
post-petition COGS generally amount to 60 to 70% of gross revenues.
In 2020, the company lost $1,062,633 (year 2020 cash based
P&L-attached). In contrast, post-petition through September 30,
2021, the Debtor's P&L statements show a positive net income of
$30,163.68 on the accrual basis and a negative net income of
$239,526.58 on the cash basis.
The IRS with a claim for $529,947 (POC no. 24). The IRS's claim
asserts considerable estimated payroll tax liabilities for
prepetition periods in 2020 in which the Debtor had not yet filed
payroll tax returns. After the IRS filed claim no. 24, the Debtor
filed the delinquent prepetition payroll. The IRS had made its
estimated claim based on prior tax returns when the Debtor was a
much bigger company with over 100 employees. The Debtor shed those
workers in 2020 and so its payroll tax liabilities, as reflected in
its filed payroll tax returns, were actually much lower. The Debtor
believes that the IRS will file an amended claim. Based on filed
returns for prepetition periods filed post-petition, the Debtor
estimates the liability for unpaid payroll taxes to be $127,259.
Class 3 consists of the claim of Ford Motor Credit Company, LLC.
This Class is not impaired. Paid pursuant to contract, $562.03 per
month in M1 – M26. Paid in full pay M 27 at $562.00.
Class 4 consists of the claim of the Americredit Financial
Services, Inc. (VIN 3508). Paid pursuant to contract, $484.44 per
month in M1 – M15. Final payment in M16 at $154. The Debtor did
not make payments for 6 months during the chapter 11 case and so
final payment will be 6 months after the contractual payment ending
date.
Class 5 consists of the claim of the Americredit Financial
Services, Inc. (VIN 2010). Paid pursuant to contract, $483.87 per
month in M1 – M15. Final payment in M16 at $154. The Debtor did
not make payments for 6 months during the chapter 11 case and so
final payment will be 6 months after the contractual payment ending
date.
Class 6 consists of the claim of the Americredit Financial
Services, Inc. (VIN 1187). Paid pursuant to contract, $462.50 per
month in M1 – M15. Final payment in M16 at $148. The Debtor did
not make payments for 6 months during the chapter 11 case and so
final payment will be 6 months after the contractual payment ending
date.
Class 7 consists of the claim of the Americredit Financial
Services, Inc. (VIN 0600). Inc. (VIN 0600). This Class is impaired.
Paid pursuant to contract, $485.55 per month In M1 – M15. Final
payment in M16 at $154. The Debtor did not make payments for 6
months during the chapter 11 case and so final payment will be 6
months after the contractual payment ending date.
Class 9 consists of the Allowed Unsecured Claims of the Debtor. The
Schedules indicate that there are approximately 240 general
unsecured creditors, more or less in this Class. The Debtor
estimates that the general unsecured Claims against the Estate
total approximately $9,706,959. When deficiency or unsecured claims
of De Lage Landen, Global Merchant, the U.S. S.B.A. and Wellen
Capital are included, general unsecured claims rise to
$10,378,565.
Unsecured claims will be paid 5% of the allowed amounts of their
claims over 68 months beginning in month 5 of the Plan. In year 1,
beginning in month 5, the monthly payment will be $2,400.00, the
monthly payment amount in year 2 will be $3,999.66, the monthly
payment amount in year 3 will be $5,999.33, the monthly payment
amount in year 4 will be $5,999.33, the monthly payment amount in
year 5 will be $10,479.00, and the monthly payment amount in year 6
will be $17,198.33 with $640.00 added to the final payment in month
72. Total payments to members of this class will be $543,942.00.
Class 11 consists of the Claims of Interest Holders. Paul Calafiore
is the sole member of the Debtor. There are no other members. He is
the managing member. He intends to retain his equity interest in
the Debtor postconfirmation. If the unsecured creditor class votes
to reject the Plan, then Mr. Calafiore intends that a contribution
of $50,000.00 or more that he intends to make to the Debtor
following confirmation be treated as a new value contribution.
Under this section, for someone to obtain an interest in a
reorganized debtor where the unsecured creditor class has voted to
reject a plan, that someone must offer what is called a new value
contribution in order to overcome a rule known as the Absolute
Priority Rule. The rule does not come into play if secured
creditors vote to reject a plan or if the unsecured creditor
class(es) vote to accept the Plan.
Mr. Calafiore will infuse the monies as a new value contribution
only if the Absolute Priority Rule comes into play. If it does not,
then his contribution is simply new money. Whether his new value
contribution meets the requirements under case law is a factual
inquiry that occurs at the time of plan confirmation, where the
Debtor believes that the unsecured creditors will vote to accept
the Plan. In any event, Mr. Calafiore's monies will be new monies
from the sale of a real property not owned by the Debtor or from a
personal loan to Mr. Calafiore. The new value monies will be in the
form of money, contributed as of the Plan's Effective Date.
In the facts of this case, and considering various factors that
courts consider, e.g. is the contribution more than a gratuitous
amount, are the funds necessary to a successful feasible plan, is
the contribution a best effort in the relevant facts, will
creditors benefit from the contribution, will the contribution will
be sufficient to meet case law's requirements. The monies will be
used to pay plan expenses first to administrative claims, then to
secured claims and unsecured claims.
In addition, the projections reflect that at the end of the plan
term, the Debtor will have relatively little value in terms of
monies. Its machinery and equipment will be relatively old. Secured
creditors will still be owed monies. If the Absolute Priority Rule
comes into play, then prior to plan confirmation, the Debtor will
provide a balance sheet as of the date that plan payments are
estimated to cease in order to help compare the value of the equity
being received at the time of plan confirmation with the value of
the Debtor at the time plan payments are estimated to cease.
In exchange for receiving the 100% interest in the reorganized
Debtor, Calafiore shall contribute new value monies estimated to be
$50,000 or more, at least 30 days prior to a hearing on
confirmation of the Plan or as amended. These monies shall be held
by counsel for the Debtor pending confirmation of the Plan and
shall then be distributed upon confirmation according to the Plan's
terms. If the Court denies confirmation of the Plan, then Debtor's
counsel shall return the monies to Calafiore on his request.
The Plan will be implemented by the Debtor. Calafiore will manage
the Debtor's business operation. He will be paid $184,896 (gross)
during the Plan term for his services. However, his salary may
increase during the Plan term.
Calafiore will act as the disbursing agent. He will serve without
bond and will receive no compensation for these services rendered
and expenses incurred pursuant to the Plan. The Debtor believe it
will have $225,000 on hand at the Effective Date.
A full-text copy of the Revised Disclosure Statement dated Dec. 13,
2021, is available at https://bit.ly/3m886HP from PacerMonitor.com
at no charge.
The Debtor is represented by:
Steven R. Fox, Esq.
The Fox Law Corporation, Inc.
17835 Ventura Blvd. Suite 306
Encino, CA 91316
Telephone: (818) 774-3545
Facsimile: (818) 774-3707
Email: srfox@foxlaw.com
Jenna N. Sternberg, Esq.
Boatman Law LLC
155 Sycamore Street
Glastonbury, CT 06033
Telephone: (860) 291-9061
Facsimile: (860) 291-9073
Email: jsternberg@boatmanlaw.com
About CE Electrical Contractors
CE Electrical Contractors LLC filed a voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D. Conn. Case No.
21-20211) on Mar. 5, 2021. Paul Calafiore, the managing member,
signed the petition. In the petition, the Debtor disclosed total
assets of $1,625,485 and total liabilities of $8,648,831.
Judge James J. Tancredi oversees the case.
The Debtor tapped The Fox Law Corporation, Inc. as lead bankruptcy
counsel and Boatman Law LLC as local bankruptcy counsel.
DAME CONTRACTING: Wins Cash Collateral Access Thru Feb 2022
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of New York has
authorized Dame Contracting, Inc. to continue using cash collateral
on an interim basis in accordance with the budget through February
23, 2022.
A telephonic hearing on the matter is scheduled for February 16 at
1:30 p.m.
A copy of the order is available at https://bit.ly/3E2mjvP from
PacerMonitor.com.
About Dame Contracting, Inc.
Dame Contracting, Inc. is a New York corporation founded in 1996 as
a small family-owned construction business. The Company has been
operated and managed by James Connolly and Lara McNeil. Mr.
Connolly is the sole shareholder and the President. Ms. McNeil is
the Vice President and Secretary. Dame Contracting is engaged in
carpentry construction for private and municipal jobs, ranging from
retain stores and restaurants to schools and other municipal
structures.
Dame Contracting sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 21-71627) on September
13, 2021. In the petition signed by James Connolly, president, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Alan S. Trust oversees the case.
Adam P. Wofse, Esq., at Lamonica Herbest & Maniscalco, LLP, is the
Debtor's counsel.
EAGLE HOSPITALITY: Court Fines Fraudsters Who Kept $2.4 Million
---------------------------------------------------------------
Leslie Pappas of Law360 reports that two "fraudsters" who snubbed a
Delaware bankruptcy court's order to return $2.43 million to Eagle
Hospitality Group's bankrupt U. S. hotels will each be fined $250
per day until they make good on the debt, the judge in the case
said Tuesday, December 14, 2021.
Taylor Woods and Howard Wu have failed to comply with court orders
to turn over the funds, and their disclosures to the court have
been "woefully insufficient and ripe with fraudulent
inconsistencies," U.S. Bankruptcy Judge Christopher S. Sontchi of
the District of Delaware said in an order Tuesday, December 14,
2021.
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.
EAGLE HOSPITALITY: Ex-Execs Penalized for Not Accounting PPP Loan
-----------------------------------------------------------------
Daniel Gill of Bloomberg Law reports that two former executives of
a bankrupt Eagle Hospitality unit must pay $250 a day until they
post a $2.4 million bond or otherwise account for Covid relief
funds they allegedly misappropriated.
Taylor Woods and Howard Wu, who previously controlled Eagle
Hospitality REIT Management Pte. Ltd., provided responses that were
"inconsistent at best and fraudulent at worst," Judge Christopher
S. Sontchi said in an order Tuesday, December 14, 2021.
At issue is about $2.4 million in Paycheck Protection Program
proceeds given to an Eagle Hospitality unit holding the master
lease for the Queen Mary hotel in Long Beach, Calif.
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.
ENERMEX INTERNATIONAL: Taps Gilbert Group as Special Counsel
------------------------------------------------------------
Enermex International, Inc. seeks approval from the U.S. Bankruptcy
Court for the Southern District of Texas to hire Gilbert Group as
special counsel.
The Debtor requires legal assistance to pursue eviction proceedings
against Ameer Transportation and two others and to collect past due
rent.
The firm's hourly rates are as follows:
Keith Gilbert, Esq. $270 per hour
Clerk $90 per hour
Administrative $45 per hour
Keith Gilbert, 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:
Keith Gilbert, Esq.
Gilbert Group
35835 FM 1774
Pinehurst, TX 77362
Tel.: 281 259 8121
Fax: 281 259 8741
About Enermex International
Houston-based Enermex International Inc. filed a voluntary petition
for Chapter 11 protection (Bankr. S.D. Texas Case No. 21-32619) on
Aug. 2, 2021, listing as much as $10 million in both assets and
liabilities. Enermex President Edgar Padilla signed the petition.
Judge Jeffrey P. Norman oversees the case.
The Debtor tapped Coplen & Banks, PC as bankruptcy counsel. Gilbert
Group and Hrbacek Law Firm, PC serve as special counsel.
FEDERAL CITY: Caterer Seeks Chapter 7 Bankruptcy
------------------------------------------------
Daniel J. Sernovitz of Washington Business Journal reports that
Kensington, Maryland-based Federal City Caterers, founded in 1994,
filed Dec. 10, 2021 for Chapter 7 liquidation in the U.S.
Bankruptcy Court in Greenbelt.
The company's fortunes appear to have fallen precipitously since
the public health crisis put an immediate halt to large public
gatherings, which have yet to rebound to pre-pandemic levels.
Federal City's income fell from nearly $4.7 million in 2019 to
about $780,500 last year, and it reported no income for 2021, per
its bankruptcy filing.
Representatives for Federal City could not be reached for comment.
Its website has been taken down and its business phone, routed
through a call center, is no longer active.
Federal City last ranked 15th among the region's largest catering
companies in 2020, based on 2019 metro-area revenue that it had
reported last year as $5.28 million, generated from nearly 1,500
events, according to Washington Business Journal research. The
company was headed by John James and co-owned by Deborah Allen,
Jeffrey Judy and Carlos Laranjeira, according to the Chapter 7
filing.
While legally based in Kensington, per the bankruptcy filing, the
company has pointed to a second, D.C. location at 1119 12th St. NW
as its primary place of business, per Washington Business Journal
research. In November 2020, the D.C. Alcoholic Beverage Control
Board issued an order that canceled the caterer’s license for
failure to remit licensing fees by Sept. 30, 2020. Days before that
order was issued, on Nov. 12, D.C. land records indicate that
Emerald City Realty Group LLC sold the 12th Street NW building for
nearly $2.3 million. James was listed on land records as president
of Emerald City.
In addition to the D.C. building sale, the company appears to have
sold off the balance of its assets during a pre-bankruptcy auction
held in January by N.T. Arrington-Auctioneer, according to the
bankruptcy filing.
Federal City Caterers identifies its two largest creditors as
Dogwood State Bank, of Charlotte, North Carolina, for a $211,753
loan under the federal Paycheck Protection Program, as well as DC
Party Rentals LLC, for trade debt of $73,783.
It’s at least the second of the region's formerly largest
caterers to shutter during the coronavirus crisis. Riverdale-based
Geppetto Catering closed its doors in the summer of 2020, though
that company has claimed that internal issues now subject to
litigation contributed more to its demise than the pandemic
itself.
Federal City Caterers, however, is far from the only local catering
company to see its income fall significantly since the start of the
pandemic. All of the company's on this year's Largest Catering
Companies List, published in August, reported steep drops in
metro-area revenue. That includes Bethesda-based Ridgewells
Holdings, at the top of the List as the region's largest, which
reported a drop from $39.80 million in metro-area revenue for 2019
to to $9.51 million last year, per Washington Business Journal
research. The District's Occasions Caterers, the second-largest
locally, fell from $49.4 million in 2019 revenue to $9.1 million
last 2020.
About Federal City Caterers
Federal City Caterers is one of the largest catering companies in
Greater Washington area. Federal City Caterers sought Chapter 7
bankruptcy protection (Bankr. D. Md. Case No. 21-17723) on Dec. 10,
2021. The case is handled by the Honorable Thomas J. Catliota.
David E. Lynn is the Debtor's counsel.
GIRARDI & KEESE: Edelson Seeks Solid Case Prior Flagging Concerns
-----------------------------------------------------------------
Lauraann Wood of Law360 reports that Edelson PC founder Jay Edelson
testified Tuesday, December 14, 2021, that his firm waited to sound
alarm bells on Thomas V. Girardi's suspected theft of at least $2
million in client settlement money because he wanted to make sure
the firm wasn't basing its claims on "mush."
In the last day of contempt proceedings in Illinois over Girardi's
suspected misappropriation, Edelson testified that the firm's
concerns over the way settlement money meant for certain plane
crash victims' families was handled reached one of its highest
points last summer, when former Girardi Keese attorney Keith
Griffin told the firm.
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
GTT COMMUNICATIONS: Court OKs Ch.11 Plan Without Release Clause
---------------------------------------------------------------
Rick Archer of Law360 reports that a New York bankruptcy judge on
Wednesday, December 15, 2021, approved GTT Communications Inc.'s
Chapter 11 plan after telling the company to remove provisions
releasing claims against third parties held by creditors who voted
against the Plan, even though no creditor had voted no.
At the remote hearing, U.S. Bankruptcy Judge Michael Wiles said
that while the U.S. Trustee's Office's objection to the release
clause had been rendered "academic" by the fact there had been no
opposition to the Plan, he still needed the cloud and networking
service company to remove the language to avoid setting a precedent
for such provisions in future cases.
About GTT Communications Inc.
Headquartered in McLean, Virginia, GTT Communications, Inc. --
http://www.gtt.net/-- owns and operates a global Tier 1 Internet
network and provides a comprehensive suite of cloud networking
services.
GTT and its affiliates sought Chapter 11 protection (Bankr.
S.D.N.Y. Lead Case No. 21-11880) on Oct. 31, 2021, to implement a
prepackaged Chapter 11 plan.
GTT had total assets of $2.8 billion and total debt of $4.1 billion
as of June 30, 2021. As of the petition date, the Debtors had
pre-bankruptcy funded indebtedness totaling $2.015 billion.
Judge Michael E. Wiles oversees the cases.
Akin Gump Strauss Hauer & Feld, LLP and Kelley Drye & Warren, LLP
serve as the Debtors' bankruptcy counsel and special counsel,
respectively. The Debtors also tapped TRS Advisors as financial
advisor and investment banker; CohnReznick, LLP as independent
auditor; KPMG, LLP as tax service provider; and Alvarez & Marsal,
LLC as restructuring advisor. Brian Fox, Alvarez & Marsal's
managing director, serves as the Debtors' chief restructuring
officer. Prime Clerk, LLC is the claims agent and administrative
advisor.
HBL SNF: Cash Collateral Access, $1.5MM DIP Loan OK'd
-----------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York has
authorized HBL SNF, LLC, d/b/a Epic Rehabilitation and Nursing at
White Plains, to use cash collateral on an interim basis and obtain
postpetition financing.
Specifically, the Debtor is permitted to obtain post-petition
financing of up to $1,500,000 from CNH Finance Fund I, L.P on an
interim basis, pending the Final Hearing.
The Debtor requires the use of Cash Collateral in order to, among
other things, preserve, maintain and maximize the value of its
assets and business.
White Plains Healthcare Properties I, LLC, Security Benefit Life
Insurance Company and Security Benefit Corporation assert an
interest in the cash collateral.
The Debtor is authorized to use the cash collateral of White Plains
and Security Benefit, without prejudice to any and all rights and
defenses of the Debtor and other parties in interest with
appropriate standing, including, without limitation, the right of
any party in interest to challenge the validity, extent, priority
or nature of any security interest or document relating thereto,
all of which rights and defenses are expressly preserved.
To secure the DIP Obligations, CNH is granted continuing, valid,
binding, enforceable, non-avoidable, and automatically and properly
perfected DIP Liens in the DIP Collateral as follows, in each case
subject to the Carve-Out:
a. pursuant to section 364(d)(1) of the Bankruptcy Code,
valid, enforceable, non-avoidable automatically and fully perfected
first priority senior priming liens on and security interests in,
all DIP Collateral wherever located, which senior priming liens and
security interests in favor of the DIP Lender will be senior to any
and all prepetition liens and for the avoidance of doubt, the
security interests granted to WPHCP and Security Benefit, whether
under the Lease, the Security Agreement or otherwise, and any other
judgment creditor claims; and
b. pursuant to section 364(c)(2) of the Bankruptcy Code,
valid, binding, continuing, enforceable, non-avoidable
automatically and fully perfected first priority liens on and
security interests in all DIP Collateral that is not otherwise
subject to a valid, perfected and non-avoidable security interest
or lien as of the Petition Date (or perfected after the Petition
Date to the extent permitted by section 546(b) of the Bankruptcy
Code).
The DIP Liens and the DIP Superpriority Claims: (i) will not be
made junior to or pari passu with any lien, security interest or
claim heretofore or hereinafter granted in the Chapter 11 Case, and
will be valid and enforceable against the Debtor, its estate, any
trustee or any other estate representative appointed or elected in
the Chapter 11 Case or any successor case and/or upon the dismissal
of the Chapter 11 Case or any successor case.
The Carve-Out means: (i) all invoiced and payable attorneys' fees
under sections 330 and 331 of the Bankruptcy Code, (ii) all fees
payable by the Debtor to the Subchapter V Trustee, (iii) all fees
payable by the Debtor to a patient ombudsman appointed under
section 333(a) of the Bankruptcy Code, and (iv) in the event of
conversion of the Chapter 11 Case to a case under chapter 7 of the
Bankruptcy Code, $10,000 for the Chapter 7 trustee's fees and
expenses.
The occurrence of an Event of Default or the occurrence of the
Maturity Date will constitute a "Termination Event."
The final hearing on the matter is scheduled for December 21, 2021,
at 11 a.m.
A copy of the order is available at https://bit.ly/3GMqCxf from
Omni Agent Solutions, the claims agent.
About HBL SNF, LLC
HBL SNF, LLC d/b/a Epic Rehabilitation and Nursing at White Plains
is a 160-bedroom skilled nursing and rehabilitation facility
located at 120 Church Street, White Plains, New York, which opened
in late 2019. HBL SNF provides an array of healthcare services,
including neurological, respiratory, orthopedic, occupational,
psychiatric, and many other medical and rehabilitative services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Court (Bankr. S.D.N.Y. Case No. 21-22623) on November 1,
2021. In the petition signed by CEO Lizer Jozefovic, the Debtor
disclosed $9,131,311 in total assets and $20,128,876 in total
liabilities.
Judge Sean H. Lane oversees the case.
Klestadt Winters Jureller Southard and Stevens, LLP is the Debtor's
counsel.
CNH Finance Fund I, L.P, as lender, is represented by Alissa M.
Nann, Esq., at Foley & Lardner LLP.
INTELSAT SA: Asks Bankruptcy Court to Approve Exit Financing Plan
-----------------------------------------------------------------
Advanced Television reports that Intelsat's Chapter 11 bankruptcy
reconstruction has cost the business some $200 million in legal and
professional fees. The end might now be in sight, but there will
still be arguments on the exact shape of the new business, and
Judge Keith Phillips will still be reviewing documents well into
the New Year.
Intelsat entered into bankruptcy on May 15, 2020. Given that
there's a trial still to be slated between SES and Intelsat over
the division of payments for freeing up C-band capacity it is quite
likely that it will be almost two full years since the process
started that the business will be free of litigation.
On December 14, 2021 the judge had a weighty 189-page bundle placed
before his court which provides a formula for how the court could
confirm Intelsat's 'Third Amended Joint Chapter 11 Plan' which
covers Intelsat and all its sister businesses. The documents
contain the draft Order covering the satellite operator's Exit Plan
Confirmation which has clearly advanced in terms of agreements
between the various parties over the past week or so.
The bundle contains details as to how Intelsat will finance itself
to the tune of some $7.5 billion by means of new borrowings.
Much of the document will now be uncontested. "It is particularly
compelling that the Plan is supported by the Debtors, the
Disinterested Directors, the Committee, more than 90 percent of the
Debtors’ prepetition capital structure, Ad Hoc Groups
representing over 80 percent ($11.9 billion) of the Debtors' funded
debt, the Equity Group, SES, and all Plan Classes in which votes
were cast," says Intelsat's lawyers.
However, there are still elements to be decided, not least which
Intelsat entity gets its hands on the FCC's C-band ‘Accelerated
Relocation Payments.'
About Intelsat S.A.
Intelsat S.A. -- http://www.intelsat.com/-- is a publicly held
operator of satellite services businesses, which provides a diverse
array of communications services to a wide variety of clients,
including media companies, telecommunication operators, internet
service providers, and data networking service providers. The
Company is also a provider of commercial satellite communication
services to the U.S. government and other select military
organizations and their contractors. The Company's administrative
headquarters are in McLean, Virginia, and the Company has extensive
operations spanning across the United States, Europe, South
America, Africa, the Middle East, and Asia.
Intelsat S.A. and its debtor-affiliates concurrently filed
voluntary petitions for relief under Chapter 11 of the Bankruptcy
Code (Bankr. E.D. Va. Lead Case No. 20-32299) on May 13, 2020. The
petitions were signed by David Tolley, executive vice president,
chief financial officer, and co-chief restructuring officer. At the
time of the filing, the Debtors disclosed total assets of
$11,651,558,000 and total liabilities of $16,805,844,000 as of
April 1, 2020.
Judge Keith L. Phillips oversees the cases.
The Debtors tapped Kirkland & Ellis LLP and Kutak Rock LLP as legal
counsel; Alvarez & Marsal North America, LLC as restructuring
advisor; PJT Partners LP as financial advisor & investment banker;
Deloitte LLP as tax advisor; and Deloitte Financial Advisory
Services LLP as fresh start accounting services provider. Stretto
is the claims and noticing agent.
The Office of the U.S. Trustee appointed a committee of unsecured
creditors on May 27, 2020. The committee tapped Milbank LLP and
Hunton Andrews Kurth LLP as legal counsel; FTI Consulting, Inc., as
financial advisor; Moelis & Company LLC as investment banker; Bonn
Steichen & Partners as special counsel; and Prime Clerk LLC as
information agent.
INTELSAT SA: Files Settlement to Pay First-Lien Notes in Ch.11
--------------------------------------------------------------
Vince Sullivan of Law360 reports that commercial satellite operator
Intelsat SA filed a proposed settlement Wednesday, December 15,
2021, in the Virginia bankruptcy court that would pay the allowed
claims of first-lien noteholders in full from the proceeds of a new
post-bankruptcy loan.
In its filing, Intelsat said the new deal modifies an earlier
agreement reached with holders of $1. 8 billion in principal amount
of 8% notes and holders of $490 million in principal amount of 9.5%
notes, and calls for them to be paid in full along with accrued
interest and a portion of a make-whole premium owed to the
noteholders.
About Intelsat S.A.
Intelsat S.A. -- http://www.intelsat.com/-- is a publicly held
operator of satellite services businesses, which provides a diverse
array of communications services to a wide variety of clients,
including media companies, telecommunication operators, internet
service providers, and data networking service providers. The
Company is also a provider of commercial satellite communication
services to the U.S. government and other select military
organizations and their contractors. The Company's administrative
headquarters are in McLean, Virginia, and the Company has extensive
operations spanning across the United States, Europe, South
America, Africa, the Middle East, and Asia.
Intelsat S.A. and its debtor-affiliates concurrently filed
voluntary petitions for relief under Chapter 11 of the Bankruptcy
Code (Bankr. E.D. Va. Lead Case No. 20-32299) on May 13, 2020. The
petitions were signed by David Tolley, executive vice president,
chief financial officer, and co-chief restructuring officer. At the
time of the filing, the Debtors disclosed total assets of
$11,651,558,000 and total liabilities of $16,805,844,000 as of
April 1, 2020.
Judge Keith L. Phillips oversees the cases.
The Debtors tapped Kirkland & Ellis LLP and Kutak Rock LLP as legal
counsel; Alvarez & Marsal North America, LLC as restructuring
advisor; PJT Partners LP as financial advisor & investment banker;
Deloitte LLP as tax advisor; and Deloitte Financial Advisory
Services LLP as fresh start accounting services provider. Stretto
is the claims and noticing agent.
The Office of the U.S. Trustee appointed a committee of unsecured
creditors on May 27, 2020. The committee tapped Milbank LLP and
Hunton Andrews Kurth LLP as legal counsel; FTI Consulting, Inc., as
financial advisor; Moelis & Company LLC as investment banker; Bonn
Steichen & Partners as special counsel; and Prime Clerk LLC as
information agent.
L&L WINGS: Interest Holders to Contribute $6M to Plan Funding
-------------------------------------------------------------
L&L Wings Inc., d/b/a Wings, submitted a Second Amended Disclosure
Statement in connection with its Second Amended Plan of
Reorganization dated Dec. 13, 2021.
On December 2021, the Debtor filed an application to employ and
retain SSG Advisors, LLC as investment bankers to the Debtor to
perform a market valuation of the Debtor in connection with the
requirement to satisfy the "new value" corollary to the absolute
priority rule required to confirm the Plan in the event that any
Class of creditors votes to reject the Plan.
The Plan shall be funded from (i) a portion of the Debtor's Cash on
hand as of the Effective Date, (ii) post-Effective date financing
from TD or such other financial institution (iii) an Effective Date
no less than $6,000,000 Cash capital contribution from the Interest
holders, and (iv) and such further Cash or contributions to the
extent necessary for working capital or post Effective Date
distributions required under the Plan.
The Debtor shall place in a segregated escrow account, in Cash, the
sum of $14,718,000, representing the estimated maximum
distributions on all Classified and Unclassified Claims under the
Plan, no later than 14 days before the Confirmation Date. The
distributions required under the Plan shall be distributed by the
Debtor (the "Disbursing Agent") solely and strictly in accordance
with the terms of the Plan and subject to entry of the Confirmation
Order.
Accordingly, the Debtor submits that it should not be required to
obtain a bond pursuant to Section 345 of the Bankruptcy Code.
Except as otherwise provided in the Plan, the first distribution
from the Plan Distribution Fund shall be distributed to holders of
Allowed Claims under the Plan by the Disbursing Agent on the later
of the following dates: (i) on the Effective Date to the extent the
Claim has been Allowed or (ii) to the extent that a Claim becomes
an Allowed Claim after the Effective Date, within 14 days after the
order allowing such Claim becomes a Final Order.
On or shortly after the Effective Date, the Disbursing Agent shall
commence to make distributions in accordance with this Plan.
Payments will be made from Debtor's Cash on hand, post-Effective
Date financing from TD or such other financial institution to
either the Debtor or Meir and Shaul Levy, and the $6 million
capital contribution form Meir and Shaul Levy in consideration for
their retention of their Interests.
Non-Levy Leases. On November 16, 2021, the Bankruptcy Court entered
an order authorizing the Debtor to assume its 8 unexpired
nonresidential leases with non-Levy Parties at the following
locations: (1) 9700N Kings HWY Myrtle Beach, SC, (2) 3136 Mission
Blvd San Diego, CA, (3) 4948 Newport Ave San Diego, CA, (4) 4918
Seawall Blvd Galveston, TX, (5) 529 Seawall Blvd Galveston, TX ,
(6) 16850 Collins Ave, #106A Sunny Isles Beach, FL , (7) 8103
Emerald Dr Emerald Isle, NC, (8) 106A N New River Drive Surf City,
NC 28445 (the "Non-Levy Leases"). The total amount of cure claims
required to paid to assume the Non-Levy Leases totals $187,833.21.
Levy Leases. Upon the Effective Date, all of the following Levy
Parties unexpired nonresidential leases ("Levy Leases") shall be
assumed: (1) 401 Mission Ave., Ste C130, Oceanside, CA, (2) 2020 NE
2nd Street, Deerfield Beach, FL, (3) 6705 Gulf Blvd., St.
Petersburg, FL, (4) 349 Johnson Street, Hollywood Beach, FL, (5)
201 Lincoln Road, Miami Beach, FL, (6) 2601-5 N. Ocean Dr., Riviera
Beach, FL, (7) 607 N. Atlantic Ave., Daytona Beach, FL, (8) 512 E.
Atlantic Ave., Delray Beach, FL, (9) 4392 NE Ocean Blvd., Jensen
Beach, FL (10) 82 South Lumina Ave., Wrightsville Beach, NC, (11)
1014 N. Lake Park Blvd., Carolina Beach, ND, (12) 32-10 Holden
Beach Rd. SW, Holden Beach, NC, (13) 2800 NW 125th St., B-2, Miami,
FL, (14) 666 Broadway, 8th Floor, New York, NY6 and (15) 529
Seawall Blvd., Galveston, TX. The total amount of cure claims
required to paid to assume the Levy Leases totals $9,837,493.
Like in the prior iteration of the Plan, Class 5 consists of the
holders of Allowed General Unsecured Claims. The Debtor estimates
that the Allowed Class 5 Claims total approximately $4,500,000. The
holders of Allowed Class 5 Unsecured Claims shall each receive (a)
a 50% distribution on account of their Allowed Class 5 Unsecured
Claims in Cash, on or shortly after the Effective Date and (b) a
Pro Rata distribution with Class 6 from the Disputed BMI Claim
Reserve to the extent of any excess funds available due to a
reduction in the amount of the Allowed Class 6 non-subordinated BMI
Claim as a result of any Final Order determining the BMI Adversary
Proceeding, provided Class 5 claimholders shall not receive more
than 100% of their Allowed Claims under the Plan. Such payments
shall be in full and final satisfaction of all Class 5 Claims.
Class 5 Claims are Impaired.
The hearing at which the Court will determine whether to confirm
the Plan will take place on January 27, 2022 at 10:00 a.m.
Objections to the confirmation of the Plan must be filed by January
20, 2022. January 20, 2022 at 4:00 p.m. is the Voting Deadline.
A full-text copy of the Second Amended Disclosure Statement dated
Dec. 13, 2021, is available at https://bit.ly/3shWqpA from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
Robert L. Rattet, Esq.
Jonathan S. Pasternak, Esq.
DAVIDOFF HUTCHER & CITRON LLP
605 Third Avenue
New York, New York 10158
Tel: (212) 557-7200
About L&L Wings
L&L Wings, Inc., is a New York-based retailer of beachwear and
beach sundry items. It operates 26 stores throughout North
Carolina, South Carolina, Florida, Texas and California.
L&L Wings sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. S.D.N.Y. Case No. 21-10795) on April 24, 2021. In the
petition signed by Ariel Levy, president, the Debtor disclosed up
to $50 million in assets and up to $100 million in liabilities.
Judge Shelley C. Chapman oversees the case.
The Debtor tapped Davidoff Hutcher & Citron LLP as legal counsel,
WebsterRogers LLP as accountant, and CFGI as financial advisor. A&G
Realty Partners, LLC, is its real estate consultant and advisor.
On May 7, 2021, the U.S. Trustee for Region 2 appointed an official
committee of unsecured creditors. Otterbourg PC and Thompson Hine,
LLP serve as the committee's bankruptcy counsel and special
counsel, respectively.
L&L WINGS: Seeks to Employ SSG Advisors as Investment Banker
------------------------------------------------------------
L&L Wings, Inc. seeks approval from the U.S. Bankruptcy Court for
the Southern District of New York to hire SSG Advisors, LLC as
investment banker.
The firm's services include:
(a) reviewing and analyzing the Debtor's business, operations,
financial statements, and projections;
(b) preparing a market valuation of the Debtor's business;
(c) analyzing any other valuations prepared by the Debtor or
its professionals, the unsecured creditors' committee or its
professionals, and any other party; and
(d) providing expert testimony on all aspects of the firm's
engagement.
The firm's hourly rates are as follows:
Managing Director $1,100 per hour
Director $850 per hour
Vice President $750 per hour
Associate $550 per hour
Analyst $400 per hour
The Debtor will also pay the firm a fixed valuation fee equal to
$100,000.
J. Scott Victor, managing director at SSG Advisors, 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:
J. Scott Victor
SSG Advisors, LLC
300 Barr Harbor Drive, Suite 420
West Conshohocken, PA 19428
Phone: (610) 940-5802
Fax: (610) 940-4719
Email: jsvictor@ssgca.com
About L&L Wings
L&L Wings, Inc. is a New York-based retailer of beachwear and beach
sundry items. It operates 26 stores throughout North Carolina,
South Carolina, Florida, Texas and California.
L&L Wings sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. S.D.N.Y. Case No. 21-10795) on April 24, 2021. In the
petition signed by Ariel Levy, president, the Debtor disclosed up
to $50 million in assets and up to $100 million in liabilities.
Judge Shelley C. Chapman oversees the case.
The Debtor tapped Davidoff Hutcher & Citron LLP as legal counsel;
WebsterRogers LLP as accountant; CFGI as financial advisor; A&G
Realty Partners, LLC as real estate consultant; and SSG Advisors,
LLC as investment banker.
On May 7, 2021, the U.S. Trustee for Region 2 appointed an official
committee of unsecured creditors. Otterbourg PC and Thompson Hine,
LLP serve as the committee's bankruptcy counsel and special
counsel, respectively.
LEHMAN BROTHERS: Bankruptcy Judge Chapman to Retire in 2022
-----------------------------------------------------------
James Nani of Bloomberg Law reports that Shelley C. Chapman, the
New York judge who presided over Lehman Brothers Holdings Inc.'s
mammoth bankruptcy case, will retire in June 2022.
Judge Chapman took over Lehman's case -- the biggest in U.S.
history -- when Judge James M. Peck retired in 2014. The investment
bank's bankruptcy and $613 billion in debt helped accelerate the
financial crisis of 2008.
Other notable Chapter 11 cases that Judge Chapman oversaw include
Nine West Holdings Inc., Sabine Oil & Gas Corp., Century 21
Department Stores LLC, Sbarro LLC, and BCBG Max Azria Global
Holdings LLC, according to a statement Monday, December 13, 2021,
from the U.S. Bankruptcy Court for the Southern District of New
York.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more than
150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of
corporations, governmental units, institutional clients and
individuals worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
disclosed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the
largest in U.S. history. Several other affiliates followed
thereafter.
Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC
sought for bankruptcy protection in December 2009.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell,
Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as
counsel to the Official Committee of Unsecured Creditors. Houlihan
Lokey Howard & Zukin Capital, Inc., is the Committee's investment
banker.
On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S.
District Court for the Southern District of New York, entered an
order commencing liquidation of Lehman Brothers, Inc., pursuant to
the provisions of the Securities Investor Protection Act (Case No.
08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee
for the SIPA liquidation of the business of LBI.
The Bankruptcy Court approved Barclays Bank Plc's purchase of
Lehman Brothers' North American investment banking and capital
markets operations and supporting infrastructure for US$1.75
billion. Nomura Holdings Inc., the largest brokerage house in
Japan, purchased LBHI's operations in Europe for US$2 plus the
retention of most of employees. Nomura also bought Lehman's
operations in the Asia Pacific for US$225 million.
Lehman emerged from bankruptcy protection on March 6, 2012, more
than three years after it filed the largest bankruptcy in U.S.
history. Lehman mad its first payment to creditors under its $65
billion payout plan in April 2012.
LTL MANAGEMENT: Jones Day Representation in Chapter 11 Okayed
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Jeannie O'Sullivan of Law360 reports that a New Jersey bankruptcy
judge gave interim approval Wednesday, December 15, 2021, for Jones
Day to serve as counsel for a Johnson & Johnson talcum powder
liability spinoff, LTL Management, in Chapter 11 proceedings,
saying he sees no actual conflicts caused by the firm's concurrent
representation of related entities.
U.S. Bankruptcy Judge Michael Kaplan overruled objections by the
U.S. Trustee's Office and a talc claimant's law firm, but said he'd
consider further briefing from the objectors, would revisit the
matter during a Jan. 11 hearing and make a final ruling on the
retention application then. The objectors say a conflict of
interest is posed by Jones Day.
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.
MALLET INC: Seeks to Hire Backenroth as Bankruptcy Counsel
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Mallett Inc. seeks approval from the U.S. Bankruptcy Court for the
Southern District of New York to hire Backenroth Frankel & Krinsky,
LLP to serve as legal counsel in its Chapter 11 case.
The firm's services include:
(a) providing the Debtor with legal advice regarding its
powers and duties in the continued operation of its business and
management of its property during the Chapter 11 case;
(b) preparing reports and legal documents;
(c) assisting the Debtor in formulating and negotiating a plan
of reorganization with creditors; and
(d) performing such other legal services for the Debtor as
required during the pendency of its bankruptcy case, including but
not limited to, the institution of actions against third parties,
objections to claims, and the defense of actions which may be
brought by third parties against the Debtor.
The firm's hourly rates are as follows:
Scott A. Krinsky, Esq. $575 per hour
Mark A. Frankel, Esq. $655 per hour
Abraham J. Backenroth, Esq. $695 per hour
Paralegal time $125 per hour
Moreover, the Debtor paid $35,000 to the firm as a retainer fee.
Mark Frankel, Esq., a member of Backenroth, 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:
Mark A. Frankel, Esq.
Backenroth Frankel & Krinsky, LLP
800 Third Avenue, 11th Floor
New York, NY 10022
Tel.: (212) 593-1100
Fax: (212) 644-0544
Email: mfrankel@bfklaw.com
About Mallett Inc.
New York-based Mallett Inc. sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 21-11619) on Sept.
15, 2021, listing $3,665,011 in assets and $13,181,708 in
liabilities. The petition was signed by Graham Shircore as
director.
Judge James L. Garrity Jr. oversees the case.
The Debtor tapped Backenroth Frankel & Krinsky LLP as bankruptcy
counsel, Lester Bleckner & Shaw LLP as special counsel, and Mazars
USA LLP as tax accountant.
MALLETT INC: Seeks to Hire Mazars USA as Tax Accountant
-------------------------------------------------------
Mallett Inc. seeks approval from the U.S. Bankruptcy Court for the
Southern District of New York to hire Mazars USA, LLP as tax
accountant.
Kathryn Byrne, the firm's accountant who will be providing the
services, will be paid at her hourly rate of $550. Moreover, other
professionals will be paid between $225 and $250 per hour for 20 to
30 hours and between $300 and $450 per hour for 15 to 20 hours.
Ms. Byrne 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:
Kathryn Byrne, CPA
Mazars USA LLP
135 W 50th Street
New York, NY 10020
Tel: +1 212.375.6770
About Mallett Inc.
New York-based Mallett Inc. sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 21-11619) on Sept.
15, 2021, listing $3,665,011 in assets and $13,181,708 in
liabilities. The petition was signed by Graham Shircore as
director.
Judge James L. Garrity Jr. oversees the case.
The Debtor tapped Backenroth Frankel & Krinsky LLP as bankruptcy
counsel, Lester Bleckner & Shaw LLP as special counsel, and Mazars
USA LLP as tax accountant.
MALLETT INC: Taps Lester Bleckner & Shaw as Special Counsel
-----------------------------------------------------------
Mallett Inc. seeks approval from the U.S. Bankruptcy Court for the
Southern District of New York to hire Lester Bleckner & Shaw, LLP
as special counsel.
The Debtor requires legal assistance in connection with the lease
of the building located at 929 Madison Ave., N.Y., including
negotiations with its landlord and subtenant, and other matters
ancillary therein.
The firm's hourly rates are as follows:
Martin Shaw, Esq. $650 per hour
Ian Lester, Esq. $650 per hour
Daniel Gammerman, Esq. $650 per hour
Kayla Laskin, Esq. $450 per hour
Martin Shaw, Esq., a partner at Lester Bleckner & Shaw, 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:
Martin Shaw, Esq.
Lester Bleckner & Shaw, LLP
350 Fifth Avenue, Suite 3301
New York, NY 10118
Tel.: 212 279 4494
Email: mshaw@lesterblecknershaw.com
About Mallett Inc.
New York-based Mallett Inc. sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 21-11619) on Sept.
15, 2021, listing $3,665,011 in assets and $13,181,708 in
liabilities. The petition was signed by Graham Shircore as
director.
Judge James L. Garrity Jr. oversees the case.
The Debtor tapped Backenroth Frankel & Krinsky LLP as bankruptcy
counsel, Lester Bleckner & Shaw LLP as special counsel, and Mazars
USA LLP as tax accountant.
MISSOURI JACK: Creditors to Get New Value or Plan Contribution
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Missouri Jack, LLC, Illinois Jack, LLC, and Conquest Foods, LLC
("Debtors") filed with the U.S. Bankruptcy Court for the Eastern
District of Missouri a Disclosure Statement describing Chapter 11
Plan of Reorganization dated Dec. 13, 2021.
The MoJack Debtor and IlJack Debtor are proposing a plan to
reorganize that provides for the continuing operation of their
businesses after Confirmation of the Plan.
After a lengthy period of negotiations, the MoJack Debtor and
IlJack Debtor both reached agreement with JIB resulting in the JIB
Missouri Term Sheet and JIB Illinois Term Sheet. Pursuant to such
term sheets, JIB agrees to concession under the JIB Franchise
Agreements. The terms of the JIB Missouri Term Sheet and JIB
Illinois Term Sheet have been incorporated into the Plan and form
the basis of the Plan and the reorganization of the Debtors.
In addition, Secured Creditor, Trinity, has agreed to a
restructuring of its secured note on favorable payment terms which
treatment is incorporated into the Plan. After the filing of the
Cases, the Disputed Claim held by CNB was purchased by an entity
known as Pegasus. The Debtors' believe that Elghanian is a member
of Pegasus and was also a former member of the Debtors. Pegasus has
expressed an interest in acquiring the equity Interests in the
Reorganized Debtors.
Should Pegasus elect to proceed with its acquisition, reach
agreement with the Debtors, and obtain approval from JIB to the
change of control of the Reorganized Debtors, its Claim will be
converted to equity under the Plan. Otherwise, the Debtors' current
owner intends to reacquire the equity Interests; and, absent an
alternative consensual arrangement with Pegasus, the Debtors intend
to pursue litigation to determine the nature, extent, validity,
priority and amount of the Disputed Claim asserted by Pegasus and
deem it to be entirely unsecured, undersecured or subordinated. The
Debtors believe that the Plan is nevertheless feasible and
confirmable regardless of the outcome of such litigation.
As a result of the financial condition of the MoJack Debtor and
IlJack Debtor, the Plan proposes that the Conquest Debtor will not
retain its Interest in the MoJack Debtor and IlJack Debtor after
the Effective Date of the Plan and that the Conquest Debtor will
liquidate its assets (other than its membership Interests in the
MoJack Debtor and IlJack Debtor which are being eliminated under
the Plan) for the benefit of creditors. The Interests in the
Reorganized MoJack Debtor and Reorganized IlJack Debtor will be
distributed to the Plan Funder. The Plan Funder will be either the
Plan Contributor or the New Value Contributor.
The Plan Contributor is the Person or Persons (other than the New
Value Contributor) that (a) timely delivers the Plan Contribution
Deposit; (b) timely makes the Plan Contribution; (c) is approved by
JIB as the JIB Post Effective Date Franchisee; (d) satisfies the
Plan Contribution Conditions; and (e) is approved by the Court as
part of Confirmation as the JIB Post Effective Date Franchisee. The
Plan Contributor is the Person making the highest and best offer to
acquire the Interests, which may include Pegasus or some other
non-insider third party wishing to acquire the Interests in the
Reorganized MoJack and Reorganized IlJack.
The Plan Contribution is a contribution to be made by the Plan
Contributor on or before the Confirmation Hearing in such amount as
agreed to by the Plan Contributor and the Debtors, but in an amount
that not less than the amount necessary to fund the Effective Date
Payments.
In the event there is no Plan Contributor that qualifies and
complies with the requirements or in the event that the Plan
Contributors offer is not the highest and best offer, the New Value
Contributor can reacquire the Interests in the Reorganized MoJack
and Reorganized IlJack in exchange for the New Value Contribution,
all or part of which New Value Contribution can be accomplished by
conversion of all or part of the DIP Claim.
Under the Plan, the Holders of General Unsecured Claims against the
MoJack Debtor will be receiving a Pro Rata share of (a) an Initial
Cash Payment on the Effective Date of $153,000; (b) twenty General
Unsecured Quarterly MoJack Plan Payments of twenty thousand dollars
each quarter; and (c) five General Unsecured Annual MoJack Plan
Payments of Available Cash, if any.
Under the Plan, the Holders of General Unsecured Claims against the
IlJack Debtor will be receiving a Pro Rata share of (i) an Initial
Cash Payment on the Effective Date of $20,000; (ii) twenty General
Unsecured Quarterly IlJack Plan Payments of five thousand dollars
each quarter; and (iii) five General Unsecured Annual IlJack Plan
Payments of Available Cash, if any.
Class 10 consists of all General Unsecured Claims against the
MoJack Debtor, except any General Unsecured Claims against the
MoJack Debtor that elect and/or qualify for treatment as
Convenience Claims in Class 9. The anticipated amount of Allowed
Claims in Class 10 is approximately $3,905,975. Each Holder of an
Allowed General Unsecured Claim shall receive, up to the full
amount of such Holder's Allowed General Unsecured Claim, its Pro
Rata share (taken together with the General Unsecured Claim of
Pegasus), of the following:
* General Unsecured MoJack Effective Date Payment. On the
Effective Date, the MoJack Debtor will distribute from the proceeds
of the Plan Contribution or New Value Contribution, as applicable,
a payment of $153,000 to be distributed on a Pro Rata basis to each
Holder of an Allowed General Unsecured Claim against the MoJack
Debtor qualifying for treatment in this Class (including, without
limitation, the Allowed General Unsecured Claim of Pegasus, if
any).
* General Unsecured Quarterly MoJack Plan Payment(s).
Commencing on a date selected by the Reorganized MoJack Debtor that
is a Business Day which is at least 90 days after the Effective
Date and after payment in full of the Administrative Claims and
Priority Claims (excluding Priority Tax Claims), the Reorganized
MoJack Debtor shall distribute to the Holders of Allowed General
Unsecured Claims, the General Unsecured Quarterly MoJack Plan
Payments, which shall be distributed Pro Rata among the Holders of
the Allowed General Unsecured Claims (taking into consideration the
Disputed Claims and the Allowed Pegasus General Unsecured Claim, if
any), which shall continue until the earlier of (i) the date on
which the Allowed General Unsecured Claims receive 100% of their
Allowed General Unsecured Claims, or (ii) the date of the last
General Unsecured Quarterly MoJack Plan Payment.
* General Unsecured Annual MoJack Plan Payment(s). Commencing
on a date selected by the Reorganized MoJack Debtor that is a
Business Day which is at least 180 days after the Effective Date
and after payment in full of the Administrative Claims and Priority
Claims (excluding Priority Tax Claims), the Reorganized MoJack
Debtor shall distribute to the Holders of Allowed General Unsecured
Claims, the General Unsecured Annual MoJack Plan Payments, which
shall be distributed Pro Rata among the Holders of the Allowed
General Unsecured Claims against MoJack (taking into consideration
the Disputed Claims and the Allowed Pegasus General Unsecured
Claim, if any), which shall continue until the earlier of (i) the
date on which the Allowed General Unsecured Claims receive 100% of
their Allowed General Unsecured Claims, or (ii) the date of the
last General Unsecured Annual MoJack Plan Payment.
Class 10A consists of all General Unsecured Claims against the
IlJack Debtor, except any General Unsecured Claims against the
IlJack Debtor that elect and/or qualify for treatment as
Convenience Claims in Class 9A. The anticipated amount of Allowed
Claims in Class 10A is approximately $225,517.75. Each Holder of an
Allowed General Unsecured Claim against the IlJack Debtor shall
receive, up to the full amount of such Holder's Allowed General
Unsecured Claim against the IlJack Debtor, its Pro Rata share
(taken together with the General Unsecured Claim of Pegasus), of
the following:
* General Unsecured IlJack Effective Date Payment. On the
Effective Date, the IlJack Debtor will distribute from the proceeds
of the Plan Contribution or New Value Contribution, as applicable,
a payment of $12,500 to be distributed on a Pro Rata basis to each
Holder of an Allowed General Unsecured Claim against the IlJack
Debtor qualifying for treatment in this Class (including, without
limitation, the Allowed General Unsecured Claim of Pegasus, if
any).
* General Unsecured Quarterly Plan Payment(s). Commencing on a
date selected by the Reorganized IlJack Debtor that is a Business
Day which is at least 90 days after the Effective Date and after
payment in full of the Administrative Claims and Priority Claims
(excluding Priority Tax Claims), the Reorganized IlJack Debtor
shall distribute to the Holders of Allowed General Unsecured Claims
against the IlJack Debtor, the General Unsecured Quarterly IlJack
Plan Payments, which shall be distributed Pro Rata among the
Holders of the Allowed General Unsecured Claims against the IlJack
Debtor (taking into consideration the Disputed Claims and the
Allowed Pegasus General Unsecured Claim, if any), which shall
continue until the earlier of (i) the date on which the Allowed
General Unsecured Claims receive 100% of their Allowed General
Unsecured Claims, or (ii) the date of the last General Unsecured
Quarterly IlJack Plan Payment.
* General Unsecured Annual IlJack Plan Payment(s). Commencing
on a date selected by the Reorganized IlJack Debtor that is a
Business Day which is at least 180 days after the Effective Date
and after payment in full of the Administrative Claims and Priority
Claims (excluding Priority Tax Claims), the Reorganized IlJack
Debtor shall distribute to the Holders of Allowed General Unsecured
Claims against the IlJack Debtor, the General Unsecured Annual
IlJack Plan Payments, which shall be distributed Pro Rata among the
Holders of the Allowed General Unsecured Claims against the IlJack
Debtor (taking into consideration the Disputed Claims and the
Allowed Pegasus General Unsecured Claim, if any), which shall
continue until the earlier of (i) the date on which the Allowed
General Unsecured Claims receive 100% of their Allowed General
Unsecured Claims, or (ii) the date of the last General Unsecured
Annual IlJack Plan Payment.
Class 10B consists of the General Unsecured Claims against the
Conquest Debtor. Class 10B is Impaired. The anticipated amount of
Allowed Claims in Class 10B is approximately $2,578,078.81. On the
Effective Date, in full, final and complete satisfaction,
compromise, settlement, and release of and in exchange for, the
Holders of the General Unsecured Claims against the Conquest Debtor
shall receive Cash from liquidation of the Conquest Debtor
remaining after payment of any senior Claims.
On the Effective Date, the Equity Interest in the MoJack Debtor and
IlJack Debtor shall be issued to the one of the following Persons:
(a) the Plan Contributor offering the Plan Contribution, which the
MoJack Debtor and IlJack Debtor, as applicable, prior to the
Confirmation Hearing, and the Court at the Confirmation Hearing,
determine to be the highest and best offer for the Equity
Interests, provided that the Plan Contributor satisfies each of the
Plan Contribution Conditions prior to the Confirmation Hearing; or
(b) the New Value Contributor. The Court shall determine at the
Confirmation Hearing whether the Plan Contribution or the New Value
Contribution is the highest and best offer for such Equity
Interests.
All amounts necessary for the Debtors to make payments or
distributions under the Plan shall be obtained from the proceeds of
the Plan Contribution or New Value Contribution (or sale proceeds),
as applicable and continued operation of the JIB Restaurants.
Unless otherwise agreed, distributions required by this Plan on
account of Allowed Claims shall be the sole responsibility of the
Reorganized MoJack Debtor and IlJack Debtor; provided that any
Allowed Administrative Claim that is satisfied prior to the
Effective Date shall also be an obligation of the Plan Funder.
A full-text copy of the Disclosure Statement dated Dec. 13, 2021,
is available at https://bit.ly/3eajn6d from PacerMonitor.com at no
charge.
Reorganization Attorneys for the Debtors:
Sandford L. Frey
Dennette A. Mulvaney
Robyn B. Sokol
LEECH TISHMAN FUSCALDO & LAMPL, INC
200 S. Los Robles Avenue
Suite 300
Pasadena, CA 91101
Telephone: (626) 796-4000
Facsimile: (626) 795-6321
E-mail: sfrey@leechtishman.com
rsokol@leechtishman.com
David A. Sosne
SUMMERS COMPTON WELLS LLC
8909 Ladue Rd
St. Louis, MO 63124
About Missouri Jack
Missouri Jack, LLC, and its affiliates Illinois Jack, LLC and
Conquest Foods, LLC, collectively own and operate 70 Jack in the
Box restaurants throughout Missouri and Illinois pursuant to
various franchise related agreements with Jack in the Box Inc., a
Delaware corporation, and its affiliated entities.
The Debtors filed voluntary petitions for relief under Chapter 11
of the Bankruptcy Code on Feb. 16, 2021 (Bankr. E.D. Mo. Case No.
21-40540). The petition was signed by Navid Sharafatian, manager
of TNH Partners, LLC, the sole manager of Missouri Jack and
Illinois Jack, and the sole managing member of Conquest.
Judge Barry S. Schermer oversees the cases.
Missouri Jack disclosed $10 million to $50 million in estimated
assets, and $1 million to $10 million in estimated liabilities.
MLK BRYANT: Seeks to Hire Michael D. O'Brien as Bankruptcy Counsel
------------------------------------------------------------------
MLK Bryant, LLC seeks approval from the U.S. Bankruptcy Court for
the District of Oregon to hire Michael D. O'Brien & Associates,
P.C. to serve as legal counsel in its Chapter 11 case.
The firm's hourly rates are as follows:
Michael D. O'Brien, MDO, Esq. $430/hour
Theodore J. Piteo, TJP, Esq. $350/hour
Hugo Zollman, HZ, Esq. $175/hour
Lauren Gary, LNG $125/hour
Mr. O'Brien, 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 D. O'Brien, MDO, Esq.
Michael D. O'Brien & Associates P.C.
12909 SW 68th Pkwy, Suite 160
Portland, OR 97223
Tel: 503-786-3800
Fax: 503-272-7796
Email: enc@pdxlegal.com
About MLK Bryant
MLK Bryant, LLC, a company based in Portland, Ore., filed a
petition for Chapter 11 protection (Bankr. D. Ore. Case No.
21-32459) on Dec. 11, 2021, listing up to $2,101,114 in assets and
up to $1,165,948 in liabilities. Meron Alemseghed, member, signed
the petition. Judge Peter C. Mckittrick oversees the case. The
Debtor tapped Michael D. O'Brien & Associates, P.C. as legal
counsel.
PIPELINE FOODS: Taps Finley Group as New Financial Advisor
----------------------------------------------------------
Pipeline Foods, LLC and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Delaware to hire The Finley
Group, Inc. as their new financial advisor and designate Matthew
Smith, the firm's managing director, as the new chief restructuring
officer.
The firm's services include:
(a) assuming management responsibility for the wind-down of
the Debtors' estates;
(b) evaluating wind-down legal strategy with input from the
Debtors' legal counsel;
(c) assisting in the development, review and approval of a
plan of liquidation and plan-related items, including disclosure
statement and liquidating trust agreement;
(d) assisting the Debtors and their professionals in
negotiations with lenders, creditors and other parties in interest
for the approval of a Chapter 11 plan and timely exit from the
Chapter 11 proceedings;
(e) reviewing and approving motions;
(f) providing declarations in support of bankruptcy court
filings as required;
(g) providing live testimony in support of bankruptcy court
filings as required;
(h) supervising reporting required by the court or creditors
during the pendency of the Debtors' bankruptcy cases; and
(i) assisting with such other matters as may be requested that
fall within Finley Group's expertise and that are mutually
agreeable.
The firm's hourly rates are as follows:
Managing Directors $525 - $575 per hour
Senior Directors $450 - $500 per hour
Directors $300 - $400 per hour
Financial Analysts $250 - $300 per hour
Mr. Smith disclosed in a court filing that he is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
Finley Group can be reached at:
Matthew W. Smith
The Finley Group, Inc.
212 South Tryon St., Suite 1050
Charlotte, NC 28281
Tel.: (704) 375-7542
Fax: (704) 342-0879
Email: matt@finleygroup.com
About Pipeline Foods
Pipeline Foods, LLC -- https://www.pipelinefoods.com/ -- is the
first U.S.-based supply chain solutions company focused exclusively
on non-GMO, organic, and regenerative food and feed. It is based in
Fridley, Minn.
Pipeline Foods and its affiliates sought Chapter 11 protection
(Bankr. D. Del. Lead Case No. 21-11002) on July 8, 2021. The
affiliates are Pipeline Holdings, LLC, Pipeline Foods Real Estate
Holding Company, LLC, Pipeline Foods, ULC, Pipeline Foods Southern
Cone S.R.L., and Pipeline Foods II, LLC. In the petition signed by
CRO Winston Mar, Pipeline Foods disclosed between $100 million and
$500 million in both assets and liabilities.
Judge Karen B. Owens oversees the cases.
The Debtors tapped Saul Ewing Arnstein & Lehr, LLP as legal
counsel; Ocean Park Securities, LLC as investment banker; Baker
Tilly US, LLP and Baker Tilly Windsor, LLP as tax consultants; and
The Finley Group, Inc. as financial advisor. Matthew Smith,
managing director at Finley Group, serves as chief restructuring
officer. Stretto is the claims, noticing and administrative
agent.
Bryan Cave Leighton Paisner, LLP serves as legal counsel to the
Board of Directors.
On July 22, 2021, the U.S. Trustee for Region 3 appointed an
official committee of unsecured creditors. The committee tapped
Barnes & Thornburg, LLP as its legal counsel and Dundon Advisers,
LLC as its financial advisor.
Bryan Cave Leighton Paisner LLP serves as special counsel to the
board of managers of Pipeline Holdings, LLC, one of the affiliated
debtors.
PWM PROPERTY: Affiliate 181 West Wins Cash Collateral Access
------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware has
authorized 181 West Madison Property, LLC, an affiliate of PWM
Property Management LLC, to, among other things, use cash
collateral on a final basis in accordance with the budget and
provide adequate protection.
181 West Madison requires the use of cash collateral, among other
things, to fund the orderly continuation of its business, maintain
the confidence of its tenants, customers, and vendors, pay its
operating expenses, and preserve its going-concern value,
consistent with the budget.
181 West Madison owns the land located at 181 West Madison Street,
Chicago, Illinois, and the commercial real estate building located
thereon.
The 181 West Madison property, the leases and rents thereof and
therefrom, and various associated personal property are encumbered
by a recorded, first priority Mortgage, Assignment of Leases and
Rents, Security Agreement and Fixture Filing dated November 27,
2019. The Mortgage secures a loan in the original principal amount
of $240 million made that date to 181 West Madison. The original
note evidencing the Mortgage Loan has been split into multiple
notes, and various of the Notes have been securitized. Certain of
the Notes are now held by Wells Fargo Bank, National Association,
as Trustee for the holders of J.P. Morgan Chase Commercial Mortgage
Securities Trust 2020-LOOP, Commercial Mortgage Pass-Through
Certificates, Series 2020-LOOP. The Prepetition Secured Party is
the assignee of record of the Mortgage, holds the Mortgage on
behalf of itself and holders of the other Notes evidencing the
Mortgage Loan, and acts for itself and those other holders by and
through Situs Holdings, LLC, its Special Servicer, with respect to
the Mortgage Loan and the Loan Documents.
As adequate protection for the Debtor's use, sale, or lease of cash
collateral, the Prepetition Secured Party is granted:
a. valid and perfected replacement security interests in and
liens upon the Debtor's assets and properties; and
b. a superpriority administrative claim against the Debtor's
estate, as and to the extent provided in section 507(b) of the
Bankruptcy Code.
As additional adequate protection of the Prepetition Secured
Party's respective interests, the Debtor will maintain the going
concern value of the Prepetition Secured Party's collateral by
using the cash collateral as provided by and only in accordance
with the Second Interim Order.
A copy of the order is available at https://bit.ly/3GLeqwD from
PacerMonitor.com.
About PWM Property Management
PWM Property Management LLC and its affiliates are primarily
engaged in renting and leasing real estate properties. They own
two premium office buildings, namely 245 Park Avenue in New York
City, a prominent commercial real estate assets in Manhattan's
prestigious Park Avenue office corridor, and 181 West Madison
Street in Chicago, Illinois.
On Oct. 31, 2021, PWM Property Management LLC and its affiliates
sought Chapter 11 protection (Bankr. D. Del. Lead Case No.
21-11445). PWM estimated assets and liabilities of $1 billion to
$10 billion as of the bankruptcy filing.
The cases are pending before the Honorable Judge Mary F. Walrath
and are being jointly administered for procedural purposes under
Case No. 21-11445.
The Debtors tapped White & Case LLP as restructuring counsel; Young
Conaway Stargatt & Taylor, LLP as local counsel; and M3 Advisory
Partners, LP as restructuring advisor. Omni Agent Solutions is the
claims agent.
PWM PROPERTY: Affiliate 245 Park Avenue Wins Cash Collateral Access
-------------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware has
authorized 245 Park Avenue Property, LLC, an affiliate of PWM
Property Management LLC, to, among other things, use cash
collateral on a final basis and provide adequate protection.
245 Park Avenue requires the use of cash collateral, among other
things, to fund the orderly continuation of its business, maintain
the confidence of its tenants, customers, and vendors, pay its
operating expenses, and preserve its going-concern value,
consistent with the Budget.
245 Park Avenue owns the land located at 245 Park Avenue, New York,
and the commercial real estate building located thereon.
The 245 Park Avenue property, the leases and rents thereof and
therefrom, and various associated personal property are encumbered
by a recorded, first priority Consolidated, Amended and Restated
Mortgage, Assignment of Leases and Rents, Security Agreement and
Fixture Filing dated May 5, 2017. The Mortgage secures a loan in
the original principal amount of $1.2 billion made that date to the
Debtor. The original note evidencing the Mortgage Loan has been
split into multiple notes, and various of the Notes have been
securitized. Certain of the Notes are now held by Wilmington
Trust, National Association, as Trustee for the holders of 245 Park
Avenue Trust 2017-245P, Commercial Mortgage Pass-Through
Certificates, Series 2017-245P. The Mortgage Loan is guaranteed by
Debtor 181 West Madison Holding LLC. The Prepetition Secured Party
is the assignee of record of the Mortgage, holds the Mortgage on
behalf of itself and holders of the other Notes evidencing the
Mortgage Loan and acts for itself and those other holders by and
through Situs Holdings, LLC, its Special Servicer, with respect to
the Mortgage Loan and the Loan Documents.
As adequate protection for the Debtor's use, sale, or lease of cash
collateral, the Prepetition Secured Party is granted:
a. valid and perfected replacement security interests in and
liens upon the Debtor's assets and properties; and
b. a superpriority administrative claim against the Debtor's
estate, as and to the extent provided in section 507(b) of the
Bankruptcy Code.
As additional adequate protection of the Prepetition Secured
Party's respective interests, the Debtor will maintain the going
concern value of the Prepetition Secured Party's collateral by
using the cash collateral as provided by and only in accordance
with the Second Interim Order.
A copy of the final order is available at https://bit.ly/3DZaCX0
from PacerMonitor.com.
About PWM Property Management
PWM Property Management LLC, et al., are primarily engaged in
renting and leasing real estate properties. They own two premium
office buildings, namely 245 Park Avenue in New York City, a
prominent commercial real estate assets in Manhattan's prestigious
Park Avenue office corridor, and 181 West Madison Street in
Chicago, Illinois.
On Oct. 31, 2021, PWM Property Management LLC and its affiliates
sought Chapter 11 protection (Bankr. D. Del. Lead Case No.
21-11445). PWM estimated assets and liabilities of $1 billion to
$10 billion as of the bankruptcy filing.
The cases are pending before the Honorable Judge Mary F. Walrath
and are being jointly administered for procedural purposes under
Case No. 21-11445.
The Debtors tapped White & Case LLP as restructuring counsel; Young
Conaway Stargatt & Taylor, LLP as local counsel; and M3 Advisory
Partners, LP as restructuring advisor. Omni Agent Solutions is the
claims agent.
PWM PROPERTY: Avoids Chapter 11 Case Dismissal
----------------------------------------------
Andrew Scurria of The Wall Street Journal reports that HNA-backed
Manhattan skyscraper owner, PWM Property Management, avoided
dismissal of its Chapter 11 case.
Judge Mary Walrath declined to boot the Manhattan skyscraper backed
by Chinese conglomerate HNA Group Co. out of chapter 11, ruling the
building owner had legitimate reasons to fear a forced sale.
Judge Mary Walrath of the U.S. Bankruptcy Court in Wilmington,
Del., ruled that 245 Park Avenue owner PWM Property Management LLC
could remain under court protection, deciding against its business
partner SL Green Realty Corp., the skyscraper's property manager,
which argued the chapter 11 case was filed in bad faith.
About PWM Property Management
PWM Property Management LLC, et al., are primarily engaged in
renting and leasing real estate properties. They own two premium
office buildings, namely 245 Park Avenue in New York City, a
prominent commercial real estate assets in Manhattan's prestigious
Park Avenue office corridor, and 181 West Madison Street in
Chicago, Illinois.
On Oct. 31, 2021, PWM Property Management LLC and its affiliates
sought Chapter 11 protection (Bankr. D. Del. Lead Case No.
21-11445). PWM estimated assets and liabilities of $1 billion to
$10 billion as of the bankruptcy filing.
The cases are pending before the Honorable Judge Mary F. Walrath
and are being jointly administered for procedural purposes under
Case No. 21-11445.
The Debtors tapped White & Case LLP as restructuring counsel; Young
Conaway Stargatt & Taylor, LLP as local counsel; and M3 Advisory
Partners, LP as restructuring advisor. Omni Agent Solutions is the
claims agent.
RELIEF TELEMED: Gets Interim OK to Employ Provost as Accountant
---------------------------------------------------------------
Relief Telemed, Inc. received interim approval from the U.S.
Bankruptcy Court for the Middle District of Louisiana to hire
Provost, Salter, Harper & Alford, LLC to prepare its tax returns
and monthly operating reports.
The firm's hourly rates are as follows:
Accountants $275 per hour
Support Staff $130 per hour
Kenneth Alford, the firm's accountant 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:
Kenneth H. Alford, CPA
Provost, Salter, Harper & Alford, L.L.C.
8550 United Plaza Boulevard, Suite 600
Baton Rouge, LA 70809
Tel: (225) 924-1772
Fax: (225) 927-9075
Email: admin@psha.com
About Relief Telemed Inc.
Relief Telemed, Inc. filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. M.D. La. Case No.
21-10569) on Dec. 3, 2021. At the time of the filing, the Debtor
listed up to $1 million in assets and up to $500,000 in
liabilities.
Ryan James Richmond, Esq., at Sternberg, Naccari & White, LLC
represents the Debtor as legal counsel while Provost, Salter,
Harper & Alford, LLC serves as the Debtor's accountant.
RGN-GROUP: Teachers Insurance Appeals May Proceed
-------------------------------------------------
Magistrate Judge Christopher J. Burke of the United States District
Court for the District of Delaware recommends that the appellate
cases captioned RGN-GROUP HOLDINGS, LLC, et al., Appellants, v.
TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA, Appellee,
and TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA,
Appellant, v. RGN-GROUP HOLDINGS, LLC, et al., Civil Action No.
21-1430-RGA, Bankruptcy BAP No. 21-71, Civil Action No.
21-1476-RGA, Bankruptcy BAP No. 21-73 (D. Del.), be withdrawn from
mandatory referral for mediation and proceed through the District
Court's appellate process.
Pursuant to paragraph 2(a) of the Procedures to Govern Mediation of
Appeals from the United States Bankruptcy Court for this District
dated September 11, 2012, a teleconference was held on November 8,
2021 for an initial review and discussion with counsel to determine
the appropriateness of mediation in this matter.
As a result of that teleconference, a videoconference mediation
occurred on December 7, 2021.
No resolution of this matter occurred and further mediation at this
stage would not be a productive exercise, a worthwhile use of
judicial resources nor warrant the expense of the process.
A full-text copy of the Magistrate's recommendation dated December
8, 2021, is available at https://tinyurl.com/4ackkknp from
Leagle.com.
About RGN-Group Holdings
Headquartered in Chertsey, UK, Regus Group Plc was founded by the
current CEO Mark Dixon in 1989 and is the world's largest provider
of serviced offices and videoconferencing facilities. Following
the acquisition of HQ Global Workplaces in 2004, it runs a network
of approximately 80,000 workstations in 55 countries around the
world.
RGN-Group Holdings, LLC and its affiliates are primarily engaged in
renting and leasing real estate properties in the U.S.
On Aug. 17, 2020, RGN-Group Holdings and and other U.S. affiliates
of Regus Group sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. Del. Lead Case No. 20-11961). At the time of the
filing, RGN-Group Holdings disclosed total assets of $1,005,956,000
and total liabilities of $946,016,000.
Judge Brendan Linehan Shannon oversees the cases.
The Debtors have tapped Faegre Drinker Biddle & Reath LLP as their
bankruptcy counsel, Alixpartners as financial advisor, Duff &
Phelps LLC as restructuring advisor, and Epiq Corporate
Restructuring LLC as claims and noticing agent.
SPEED INDUSTRIAL: Unsecured Creditors to Recover 100% in Plan
-------------------------------------------------------------
Speed Industrial Gas, LLC, filed with the U.S. Bankruptcy Court for
the Western District of Texas a Combined Disclosure Statement and
Chapter 11 Plan ("DS/Plan") dated Dec. 13, 2021.
The Debtor is a supplier of welding supplies, as well as industrial
and specialty gases. The Debtor was formed by Mr. Speed on February
24 of 2021, and officially started doing business in or around May
of 2021.
The Debtor Proposes to assume its obligations under the Broadway
Secured Loan Documents, and pay all principal and interest amounts
as and when such amounts come due pursuant thereto. The Borrower
will also assume all obligations owed to the Holders of any Other
Secured Claims, and pay all principal and interest owed thereunder
as and when due. Furthermore, the Debtor proposes payment in full
of all General Unsecured Claims. Within thirty (30) days of the
Effective Date, the Debtor will pay all General Unsecured Claims
using the proceeds of the Exit Financing provided by Mr. Speed in
an amount up to $1,000,000.00.
Mr. Speed's General Unsecured Insider Claims against the Debtor,
including all prepetition advances and the general unsecured
portion of the postpetition DIP Loan advances, shall be carried as
a post-Effective Date unsecured claim of the Reorganized Debtor,
and shall be paid upon a sale of the Reorganized Debtor's business.
Such sale, however, is not projected to occur for at least two
years following the confirmation of the Plan. Finally, Holders of
Interests in the Debtor will retain their equity interests in the
Reorganized Debtor. All equity interest in the Reorganized Debtor
will vest in Mr. Speed on the Effective Date.
The Plan will treat claims as follows:
* Treatment of the Broadway Secured Claim and the Other
Secured Claims (Classes 1 and 4). Under the Plan, upon the
Effective Date, the Debtor shall assume the Broadway Secured Loan
and all obligations under the Broadway Secured Loan Documents. The
Debtor shall continue to make payments of principal and interest to
Broadway Bank as and when they become due. The Debtor similarly
shall assume all Other Secured Claims, and continue to make
payments to the Holders of all Other Secured Claims pursuant to the
terms and conditions of the obligations underlying such Other
Secured Claims as and when due. Broadway Bank and Holders of
Allowed Other Secured Claims shall retain all liens/security
interests and other rights with respect to property of the Debtor's
Estate, vested in the Reorganized Debtor after the Effective Date,
in accordance with applicable state law and federal bankruptcy
law.
* All Allowed General Unsecured Claims in Class 2 will be paid
in full with advances from the Exit Financing, unless a Holder of a
General Unsecured Claim agrees to alternative treatment in writing.
Accordingly, and subject to the foregoing, under the Plan, on the
date a General Unsecured Claim becomes an Allowed Claim, and in
full and final satisfaction, compromise, settlement, release,
discharge of, and in exchange for, each Holder of an Allowed
General Unsecured Claim shall receive payment in full, in cash, on
account of such Allowed General Unsecured. This Class has
$128,342.45 estimated claim amounts and will receive a distribution
of 100% of their allowed claims.
* The General Unsecured Insider Claims of Mr. Speed in Class
3, consisting of prepetition advances made by Mr. Speed to the
Debtor in the amount of $1,994,617.00 and postpetition advances
pursuant to the DIP Loan in the amount of $250,000.00 shall be: (i)
carries as a post-Effective Date unsecured obligation of the
Reorganized Debtor; and (ii) paid upon a sale of the Reorganized
Debtor's business, with such sale not projected to occur until at
least two years post-Confirmation.
* Mr. Speed shall retain all equity Claims in the Debtor,
which claims shall be unaltered by the Plan, and vest in the
Reorganized Debtor. All equity interest in the Reorganized Debtor
will vest in Mr. Speed on the Effective Date.
The Plan contemplates that Mr. Speed will provide the Reorganized
Debtor with Exit Financing up to $1,000,000.00 at an interest rate
of 0% per annum. The Exit Financing will be available on the
Effective Date pursuant to the Exit Financing Agreement included in
the Plan Supplement. Additionally, the Debtor is projected to
become cash flow positive in or around March, 2022, which means
that the Reorganize Debtor will be able to meet its ordinary course
of business operating expenses until the Reorganized Debtor's
business is sold.
A full-text copy of the Combined Disclosure Statement and Plan
dated Dec. 13, 2021, is available at https://bit.ly/3263U4j from
PacerMonitor.com at no charge.
Counsel to Speed Industrial:
Lloyd A. Lim, Esq.
Balch & Bingham, LLP
811 Louisiana Street, Suite 1010
Houston, TX 77002
Telephone: (713) 362-2550
Email: llim@balch.com
About Speed Industrial Gas
Speed Industrial Gas, LLC is a San Antonio, Texas-based company
that offers welding supplies, industrial and specialty gas
products.
Speed Industrial Gas filed a petition for Chapter 11 protection
(Bankr. W.D. Tex. Case No. 21-51297) on Oct. 22, 2021, listing as
much as $10 million in both assets and liabilities. Ernest W.
Speed, III, owner and sole member of Speed Industrial Gas, signed
the petition.
The Debtor tapped Lloyd A. Lim, Esq., at Balch & Bingham, LLP as
legal counsel.
TALEN ENERGY: Closes First-Lien Financing Worth $848 Million
------------------------------------------------------------
Jim Silver of Bloomberg News reports that Talen Energy unit
upsizes, closes $848 million first-lien financing.
Talen Energy subsidiary Talen Energy Supply upsizes and closes on
previously announced first-lien revolving credit facility
commitment led by GoldenTree Asset Management and Silver Point
Finance in aggregate amount of $848 million.
Talen Energy Supply expanded the facility to additional capital
partners including Apollo Capital Management, Diameter Capital
Partners and Owl Creek Asset Management through their respective
managed funds.
NOTE: Talen said Dec. 2, 2021 it received a $788m loan from
GoldenTree and Silver Point
About Talen Energy Corp.
Talen Energy Corporation is an independent power generation
infrastructure company, headquartered in Allentown, Pennsylvania.
Talen Energy Supply, LLC is a company that operates utility
networks, with a principal place of business in Allentown,
Pennsylvania.
About Talen Energy Supply LLC
Talen Energy Supply LLC, is one of the largest competitive power
generation and infrastructure companies in North America. TES owns
and/or controls approximately 13,000 megawatts of generating
capacity in wholesale U.S. power markets, principally in the
Mid-Atlantic, Texas and Montana. Through its subsidiary, Cumulus
Growth, Talen is developing a large-scale portfolio of renewable
energy, battery storage, and digital infrastructure assets across
its expansive footprint.
TELIGENT INC: Court Approves 3-Part Chapter 11 Stalking Horse Sale
------------------------------------------------------------------
Jeff Montgomery of Law360 reports that bankrupt generic
pharmaceuticals venture Teligent Inc. secured a Delaware judge's
approval Tuesday, December 14, 2021, for a three-part stalking
horse sale that could net the business $64 million or even more if
other offers surface.
U.S. Bankruptcy Judge Brendan L. Shannon approved the sale plan and
Jan. 11. 2022 bid deadline during a hearing in which he also
approved severance and key employee incentive and retention
payments over limited objections from the debtor's official
committee of unsecured creditors. The approvals moved Teligent
closer to resolution of business and regulatory troubles that sent
the company into bankruptcy in October with nearly $130 million in
debt.
About Teligent Inc.
Teligent, Inc., a specialty generic pharmaceutical company,
develops, manufactures, markets, and sells generic topical, branded
generic, and generic injectable pharmaceutical products in the
United States and Canada. The company was formerly known as IGI
Laboratories, Inc. and changed its name to Teligent, Inc. in
October 2015. Teligent, Inc. was founded in 1977 and is based in
Buena, New Jersey.
Teligent Inc. and three affiliates sought Chapter 11 protection
(Bankr. D. Del. Lead Case No. 21-11332) on Oct. 14, 2021. The cases
are handled by Honorable Judge Brendan Linehan Shanno.
The Debtor disclosed total assets of $85.0 million and total debt
of $135.8 million as of Aug. 31, 2021.
Young Conaway Stargatt & Taylor, LLP and K&L Gates LLP are the
Debtors' attorneys. Portage Point Partners, LLC, is the Debtors'
restructuring advisor. Raymond James & Associates, Inc., is the
Debtors' investment banker. Epiq Corporate Restructuring, LLC, is
the claims agent.
Latham & Watkins LLP, serves as co-counsel to the Prepetition First
Lien Parties and the Senior DIP Parties. Morgan Lewis & Bockius LLP
serves as co-counsel to the DIP Junior Term Loan Parties and
Prepetition Second Lien Parties. Morris, Nichols, Arsht & Tunnell
LLP serves as co-counsel to the DIP Parties and Prepetition Secured
Parties. Jenner & Block LLP serves as co-counsel to the Creditors'
Committee. Osler, Hoskin & Harcourt LLP, serves as Canadian
counsel to both the DIP Junior Term Loan Parties and the Senior DIP
Parties. NautaDutilh Avocats Luxembourg S.a r.l., as Luxembourg
serves as counsel to both the DIP Junior Term Loan Parties and the
Senior DIP Parties. TGS Baltric is the Estonian counsel to both the
DIP Junior Term Loan Parties and the Senior DIP Parties.
USA GYMNASTICS: Gets Court Approval for Plan After Settlement
-------------------------------------------------------------
USA Gymnastics announced Dec. 13, 2021 that the U.S. bankruptcy
court for the Southern District of Indiana confirmed a joint Plan
of Reorganization supported by USA Gymnastics and the Survivors'
Committee that will provide a settlement with sexual abuse
Survivors and enable the organization to emerge from bankruptcy by
year end.
Judge Robyn Moberly confirmed a plan that provides for significant
non-monetary commitments from USA Gymnastics focused on athlete
safety and wellness and a $380M financial settlement.
Prominent among the plan's provisions are commitments by USAG to
further strengthen Safe Sport policies, complaint adjudication and
member club involvement; and having at least one Survivor on USAG's
Board of Directors, Safe Sport Committee, and Athlete Health and
Wellness Council. It also provides for a Restorative Justice
process to facilitate historical accountability, reconciliation and
continued cultural transformation in the gymnastics community.
"USA Gymnastics is deeply sorry for the trauma and pain that
Survivors have endured as a result of this organization's actions
and inactions," USAG President and CEO Li Li Leung said. "The Plan
of Reorganization that we jointly filed reflects our own
accountability to the past and our commitment to the future.
"Individually and collectively, Survivors have stepped forward with
bravery to advocate for enduring change in this sport. We are
committed to working with them, and with the entire gymnastics
community, to ensure that we continue to prioritize the safety,
health, and wellness of our athletes and community above all
else."
USA Gymnastics filed a voluntary petition for reorganization under
Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for
the Southern District of Indiana on December 5, 2018. The filing
was undertaken to pave the way toward a settlement with Survivors.
Survivors and other creditors voted overwhelmingly to approve the
plan on November 29, with the court formally confirming an updated
plan at Monday's hearing.
Elected on the eve of the bankruptcy filing, Kathryn Carson, Board
Chair and independent director, led the organization through CEO
succession, pandemic and bankruptcy. "Today is about the
Survivors," Carson said. "They have used their voices to elicit
meaningful change and restructuring within USA Gymnastics, and
their impact extends far beyond our sport. We are grateful and
humbled by their courage and determination to make all sport safer
around the world."
With the plan now approved by the court, a trust for the survivors
will be funded by insurers, the USOPC and USA Gymnastics.
Compensation will be distributed to Survivors in accordance with
the allocation schedule developed and approved by the Survivors'
Committee. USAG will formally exit bankruptcy in the coming weeks,
after necessary administrative work and the entry of an order by
the Court closing the case. In connection with the confirmation of
the plan, the USOPC has resolved its Section 8 complaint against
USA Gymnastics, which will continue USOPC's recognition of USA
Gymnastics as the national governing body of the sport.
The full filing can be found at
https://omniagentsolutions.com/usagymnastics
About USA Gymnastics
USA Gymnastics -- https://www.usagym.org/ -- is a not-for-profit
organization incorporated in Texas. Based in Indianapolis, Indiana,
USAG's organization encompasses six disciplines: women's
gymnastics, men's gymnastics, trampoline and tumbling, rhythmic
gymnastics, acrobatic gymnastics, and group gymnastics. USAG
provides educational opportunities for coaches and judges, as well
as gymnastics club owners and administrators, and sanctions
approximately 4,000 competitions and events throughout the United
States annually. More than 200,000 athletes, professionals, and
clubs are members of USAG. USAG sets the rules and policies that
govern the sport of gymnastics in the United States, including
selecting and training the United States gymnastics teams for the
Olympics and World Championships. As of the Petition Date, USAG
employs 53 individuals, nearly all of whom work for USAG full
time.
USA Gymnastics sought Chapter 11 protection (Bankr. S.D. Ind. Case
No. 18-09108) on Dec. 5, 2018. USAG estimated $50 million to $100
million in assets and the same range of liabilities as of the
bankruptcy filing.
The Hon. Robyn L. Moberly is the case judge.
USAG tapped JENNER & BLOCK LLP as counsel; ALFERS GC CONSULTING,
LLC and SCRAMBLE SYSTEMS, LLC, as business consulting services
providers; and OMNI Management Group, Inc., as claims agent.
USA GYMNASTICS: Reaches $380 Mil. Deal With Abuse Survivors
-----------------------------------------------------------
Dennis Romero of Today reports that USA Gymnastics says it has
reached a $380 million settlement with the sexual abuse survivors
of former national team doctor and convicted sex offender Larry
Nassar.
The settlement is part of a bankruptcy reorganization plan
confirmed by a U.S. bankruptcy court in Indiana a Monday, December
13, 2021, debtors' administrators for USA Gymnastics said in a
statement. A survivors' committee approved the plan, they said.
The settlement orders USA Gymnastics to implement policies and
processes designed to protect athletes against abuse, including
having at least one survivor on the organization's board.
Aly Raisman renews call for 'independent investigation' into USA
Gymnastics
"USA Gymnastics is deeply sorry for the trauma and pain that
survivors have endured as a result of this organization's actions
and inactions," USAG President and CEO Li Li Leung said in the
administrators' statement Monday, December 13, 2021.
"Individually and collectively, survivors have stepped forward with
bravery to advocate for enduring change in this sport," he added.
In 2017 Nassar, 58, who is accused of molesting hundreds of former
patients, pleaded guilty in a Michigan court to sexually abusing 10
minors. He's serving a virtual life sentence, technically up to 175
years in prison.
USA Gymnastics filed for Chapter 11 bankruptcy protection and
reorganization Dec. 5, 2021 "to pave the way toward a settlement
with survivors," administrators said.
Survivors voted "overwhelmingly" to approve the deal late last
month, they said. More than 90 percent of the more than 500 victims
voted yes to a tentative settlement in September 2021.
That month, Olympic gold medalist Simone Biles told the Senate
Judiciary Committee the federal government failed to provide
necessary oversight of an organization created by Congress.
"I don't want another young gymnast, or Olympic athlete, or any
individual to experience the horror that I and hundreds of others
have endured before, during and continuing to this day in the wake
of the Larry Nassar abuse," she said.
USA Gymnastics first brought allegations of his sexual abuse to
authorities in 2015. The FBI was criticized in a Justice Department
report this 2021 for allegedly moving slowly and making missteps as
it investigated.
This summer, survivors and USA Gymnastics proposed a $425 million
settlement, but that was contingent on insurers' approval.
A trust fund for survivors will be covered by insurers, the United
States Olympic and Paralympic Committee and USA Gymnastics, the
administrators said.
Kathryn Carson, USA Gymnastics' board chair, said in the
administrators' statement that survivors have "used their voices to
elicit meaningful change and restructuring within USA Gymnastics,
and their impact extends far beyond our sport."
About USA Gymnastics
USA Gymnastics -- https://www.usagym.org/ -- is a not-for-profit
organization incorporated in Texas. Based in Indianapolis, Indiana,
USAG's organization encompasses six disciplines: women's
gymnastics, men's gymnastics, trampoline and tumbling, rhythmic
gymnastics, acrobatic gymnastics, and group gymnastics. USAG
provides educational opportunities for coaches and judges, as well
as gymnastics club owners and administrators, and sanctions
approximately 4,000 competitions and events throughout the United
States annually. More than 200,000 athletes, professionals, and
clubs are members of USAG. USAG sets the rules and policies that
govern the sport of gymnastics in the United States, including
selecting and training the United States gymnastics teams for the
Olympics and World Championships. As of the Petition Date, USAG
employs 53 individuals, nearly all of whom work for USAG full
time.
USA Gymnastics sought Chapter 11 protection (Bankr. S.D. Ind. Case
No. 18-09108) on Dec. 5, 2018. USAG estimated $50 million to $100
million in assets and the same range of liabilities as of the
bankruptcy filing.
The Hon. Robyn L. Moberly is the case judge.
USAG tapped JENNER & BLOCK LLP as counsel; ALFERS GC CONSULTING,
LLC and SCRAMBLE SYSTEMS, LLC, as business consulting services
providers; and OMNI Management Group, Inc., as claims agent.
[^] BOOK REVIEW: Jacob Fugger the Rich
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Jacob Fugger the Rich: Merchant and Banker of Augsburg, 1459-1525
Author: Jacob Streider
Publisher: Beard Books
Hardcover: 227 pages
List Price: $34.95
Quick, can you work out how much $75 million in sixteenth century
dollars would be worth today? Well, move over Croesus, Gates,
Rockefeller, and Getty, because that's what Jacob Fugger was
worth.
Jacob Fugger was the chief embodiment of early German capitalistic
enterprise and rose to a great position of power in European
economic life. Jacob Fugger the Rich is more than just a
fascinating biography of a powerful and successful businessman,
however. It is an economic history of a golden age in German
commercial history that began in the fifteenth century. When the
book was first published, in 1931, The Boston Transcript said that
the author "has not tried to make an exhaustive biography of his
subject but rather has aimed to let the story of Jacob Fugger the
Rich illustrate the early sixteenth century development of economic
history in which he was a leader."
Jacob Fugger's family was one of the foremost family in Augsburg
when he was born in 1459. They got their start by importing raw
cotton, by mule, from Mediterranean ports. They later moved into
silk and herbs and, for a long while, controlled much of Europe's
pepper market.
Jacob Fugger diversified into copper mining in Hungary and
transported the product to English Channel and North Sea ports in
his own ships. A stroke of luck led to increased mining
opportunities. Fugger lent money to the Holy Roman Emperor
Maximilian I to help fund a war with France and Italy. Mining
concessions were put up as collateral. The war dragged on, the
Emperor defaulted, and Fugger found himself with a European
monopoly on copper.
Fugger used his extensive business network in service of the Pope.
His branches all over Europe collected payments due the Vatican and
issued letters of credit that were taken to Rome by papal agents.
Fugger is credited with creating the first business newsletter. He
collected news of evolving business climate as well as current
events from his agents all across Europe and distributed them to
all his branches.
Fugger's endeavors were not universally applauded. The sin of
usury was still hotly debated, and Fugger committed it wholesale.
He was sued over his monopoly on copper. He was involved in some
messy bribes in bringing Charles V to the throne. And, his
lucrative role as banker in the sale of indulgences, those chits
that absolve the buyer of sin, raised the ire of Martin Luther
himself. Luther referred to Fugger specifically in his Open Letter
to the Christian Nobility of the German nation Concerning the
Reform of the Christian Estate just before being excommunicated in
1521. Fugger went on, however, to fund Charles V's war on
Protestanism and became even richer. Fugger built many churches and
buildings in Augsburg. He was generous to the poor and designed
the world's first housing project. These buildings and lovely
gardens, called the Fuggerei, are still in use today.
A New York Times reviewer said that Jacob Fugger the Rich, a book
"concerned with the most famous, most capable, and most interesting
of all [the members of the Fugger family] will be as interesting
for the general reader as for the special student of business
history." This observation is just as true today as in 1931, when
first made.
Jacob Streider was born in 1877 and died in 1936. He was a
professor of economic history at the University of Munich.
*********
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