/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/211223.mbx T R O U B L E D C O M P A N Y R E P O R T E R Thursday, December 23, 2021, Vol. 25, No. 356 Headlines 203 HARRISON STREET: Gets OK to Hire SVN as Real Estate Broker 99 SUTTON LLC: Chapter 11 Case Summary ALLENTOWN SCHOOL: S&P Affirms 'BB+' Long-Term Rating on GO Debt AMERICAN FINANCE: Fitch Alters Outlook on 'BB+' LT IDR to Negative ANASTASIA HOLDINGS: S&P Raises ICR to 'CCC+', Outlook Negative ATHLETIC SPECIALTIES: Case Summary & 20 Largest Unsec. Creditors BLUEAVOCADO CO: Taps Michael Best & Friedrich as Special Counsel BROOKFIELD WEC: S&P Affirms 'B' ICR, Outlook Stable BROWN JORDAN: S&P Affirms 'CCC+' ICR on CreditWatch Negative BV GLENDORA: Unsecureds Will be Paid in Full CELLA III: Hearing on Motion to Supplement Continued to Jan. 11 CVENT INC: S&P Upgrades ICR to 'B' Following Debt Repayment DUTCHINTS DEVELOPMENT: Two More Creditors Appointed to Committee EW SCRIPPS: Fitch Affirms 'B' LT IDR, Outlook Stable EXELA TECHNOLOGIES: S&P Upgrades ICR to 'CCC-', Outlook Negative GALA SERVICE: Case Summary & One Unsecured Creditor GANDYDANCER LLC: Taps New Mexico Law Group as Litigation Counsel HOME TRUST: S&P Affirms 'BB+' Issuer Credit Rating, Outlook Stable HRNI HOLDINGS: Fitch Assigns Final 'B' LT IDR, Outlook Stable I-70 PROPERTIES: Seeks to Hire Stumbo Hanson LLP as Legal Counsel KURNCZ FARMS: U.S. Trustee Appoints Creditors' Committee LATAM AIRLINES: Seeks to Increase PJT's Fee Cap to $37-Mil. LINDEN CAB CORP.: Case Summary & One Unsecured Creditor MAUI MEADOWS: Taps Gina Duncan of Fine Island Properties as Broker MD AND SD LLC: Case Summary & One Unsecured Creditor MONROE COMMUNITY: S&P Affirms 'BB+' Rating on 2014A Revenue Bonds NEW CREATION: U.S. Trustee Unable to Appoint Committee OLYMPIC RESTAURANTS: Court Confirms Plan PLAYPOWER HOLDINGS: S&P Places 'B-' ICR on CreditWatch Negative PURSUE PHARMA: Judge McMahon Rejects Sackler Family Releases SN MANAGEMENT: Gets OK to Hire Frank & Frank as Legal Counsel STRIKE LLC: U.S. Trustee Appoints Creditors' Committee TOLL BROTHERS: S&P Alters Outlook to Positive, Affirms 'BB+' ICR WHITE CAP: S&P Alters Outlook to Stable, Affirms 'B' ICR [^] Recent Small-Dollar & Individual Chapter 11 Filings ********* 203 HARRISON STREET: Gets OK to Hire SVN as Real Estate Broker -------------------------------------------------------------- 203 Harrison Street Limited Partnership received approval from the U.S. Bankruptcy Court for the District of Nebraska to hire SVN Affordable Levental Realty as its real estate broker. The Debtor requires the services of a real estate broker in connection with the sale of its 72-unit apartment located at 203 Harrison St., Boone, Iowa. SVN will be paid a commission of 4 percent of the purchase price of the property. Frank Jermusek of SVN disclosed in a court filing that his firm does not represent interests adverse to the Debtor. The firm can be reached at: Frank Jermusek SVN Affordable Levental Realty 1660 Highway 100 S, Suite 330 Minneapolis, MN 55416 Tel: (952) 820-1615 / (952) 820-1600 Email: frank.jermusek@svn.com About 203 Harrison Street LP Omaha, Neb.-based 203 Harrison Street Limited Partnership is primarily engaged in renting and leasing real estate properties. 203 Harrison Street filed a petition for Chapter 11 protection (Bankr. D. Neb. Case No. 19-81060) on July 22, 2019, listing as much as $10 million in both assets and liabilities. The petition was signed by John C. Foley, Central States Development, LLC, general partner. Judge Thomas L. Saladino oversees the case. Robert Vaughan Ginn, Esq., at The Law Office of Robert V. Ginn serves as the Debtor's bankruptcy counsel. 99 SUTTON LLC: Chapter 11 Case Summary -------------------------------------- Debtor: 99 Sutton LLC 99 Sutton St. Brooklyn, NY 11222-3747 Business Description: Single Asset Real Estate under 11 U.S.C. Sec. 101(51B)). Chapter 11 Petition Date: Dec. 20, 2021 Court: United States Bankruptcy Court Eastern District of New York Case No.: 21-43124 Judge: Elizabeth S. Stong Debtor's Counsel: Lawrence Morrison MORRISON TENENBAUM, PLLC 87 Walker Street, Second Floor New York, NY 10013 Tel: 212-620-0938 E-mail: lmorrison@m-t-law.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $100 million to $500 million The petition was signed by Joseph Torres, member. The Debtor did not file a list of 20 largest unsecured creditors together with the petition. A full-text copy of the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/MJXBBXI/99_Sutton_LLC__nyebke-21-43124__0001.0.pdf?mcid=tGE4TAMA ALLENTOWN SCHOOL: S&P Affirms 'BB+' Long-Term Rating on GO Debt --------------------------------------------------------------- S&P Global Ratings revised its outlook to stable from negative on Allentown School District, Pa.'s existing general obligation (GO) debt and affirmed its 'BB+' long-term rating on the debt. "The outlook revision reflects our view of improved financial prospects for the near term, factoring in incremental progress in closing the budget gap, substantial federal relief, and stabilization in leadership positions," said S&P Global Ratings credit analyst John Sauter. The debt is secured by the district's full-faith-and-credit-GO pledge. All debt (except the series 2018 and 2014A bonds) is subject to the Pennsylvania Act 1 of 2006 limitation, which restricts a district's ability to raise the tax levy higher than a certain index. S&P rates the limited-tax GO debt at the same level as unlimited-tax GO debt, reflecting our expectation that it will use all resources available to service debt. Allentown School District's financial operations have been highly pressured, with a multiyear structural imbalance and continued liquidity pressures that necessitated a deficit bond, annual cash-flow borrowings, advances on state aid, and delayed vendor payments. The district would have ended fiscal years 2019 and 2020 with negative cash and fund balance positions without those actions. The size of budget deficits has been shrinking, though, and results are improving. The district is reporting break-even results for fiscal 2021 (preliminary, unaudited) with higher cash balances and no payment delays. It adopted a balanced budget for fiscal 2022. S&P feels 2021 and 2022 figures may have been weaker if the district had settled new teacher contracts, as it is still operating under one that ended in August 2020. "The stable outlook reflects our view of the leveling reserve position, stabilizing liquidity, and shrinking budget deficit, as well as the substantial opportunity in the form of more than $131 million in ESSER II and III funds (which is equal to 35% of the operating budget)," added Mr. Sauter. The rating remains constrained, however, by uncertainty on if future teacher contracts could amplify structural imbalance and trigger a more tenuous liquidity position, especially in light of what S&P considers weak revenue-raising prospects and limited expenditure flexibility. S&P said, "We consider social capital risks for the district to be elevated for the sector, as stagnant-to-declining enrollment, migration to charters schools, and a weaker sociodemographic profile could inhibit raising revenue ability and create greater demand for services. We have considered governance factors as elevated in the past, factoring in weaker oversight through constant management turnover, but feel these conditions are improved. We do not consider there to be increased environmental risks." AMERICAN FINANCE: Fitch Alters Outlook on 'BB+' LT IDR to Negative ------------------------------------------------------------------ Fitch Ratings has affirmed the Long-Term Issuer Default Rating (IDR) for American Finance Trust and American Finance Operating Partnership, L.P.'s (collectively AFIN) at 'BB+'. The Rating Outlook is revised to Negative from Stable. The Negative Outlook reflects Fitch's expectation for AFIN's leverage to increase to the mid 8x range following its $1.3 billion acquisition of the 81 property CIM portfolio, which is above Fitch's 8x negative rating sensitivity at the 'BB+' level. AFIN has committed to returning leverage to the mid-7.0x range within 12 months through improved NOI, asset sales and equity issuance under its at-the-market (ATM) equity program. Fitch's rating case anticipates the company will improve leverage back to within current sensitivities; however, Fitch sees heightened execution risk given the large (40%) discount at which AFIN shares trade relative to consensus net asset value (NAV) estimates. KEY RATING DRIVERS Announced Acquisition Represents Strategy Shift: AFIN's acquisition of the CIM portfolio provides several benefits to the company's credit profile. The deal will increase the company's operating scale and portfolio granularity. Moreover, open air, multi-tenant retail centers will comprise roughly 50% of portfolio NOI, pro forma for CIM, compared to 25% at Sept. 30, 2021. Tenant concentration will decline, with the top-10 tenants comprising 30% of ABR including CIM, compared to 39% for legacy AFIN. Office properties will decline to 1% of rents from 7% upon completion of AFIN's sale of its Bridgewater, NJ property leased to Sanofi that was announced as part of the transaction. AFIN will change its name to The Necessity Retail REIT during 2022, reflecting its heightened focus on retail real estate. Leverage Elevated in the Near Term: Fitch expects leverage (net debt to operating EBITDA) to increase to over 8x in 1Q22 when the transaction closes, but decline closer to its historical mid-7x range by year end as the company executes planned assets sales and equity issuances under its ATM program. Fitch sees minimal-to-moderate execution risk to the company's planned, de-levering asset sales during 2022. However, incremental equity issuance, i.e. beyond that assumed as part of the CIM transaction close, carry more uncertainty, in Fitch's view, given the sharp, 40% NAV discount at which the company's shares trade. Fitch's rating case assumes $300 million of equity issuance during 2022 and an additional $250 million during 2023. Externally Managed Structure: Fitch views AFIN's external management structure as a modest credit negative that could result in persistent equity valuation discount that challenges executing its acquisition-led growth strategy within its financial policy targets. Institutional investors generally favor internally managed REIT structures given dedicated management and fewer related party transactions and potential interest conflicts. AFIN is managed by AR Global, a specialized real estate manager with $12 billion of assets under management. Positively, AFIN's management agreement incentivizes adjusted funds for operations per share growth and equity issuance. Net Lease Mortgage Notes: AFIN's ABS funding program has mixed implications for AFIN's credit profile. As the buyers are typically ABS-focused and not traditional commercial real estate lenders, AFIN has access to an incremental source of capital as compared to its peers, a credit positive. Moreover, as the structure is more flexible than CMBS in regard to asset sales and substitutions, it allows AFIN to re-tenant or dispose of underperforming assets with greater ease than if held in a CMBS structure, thus better matching the investment strategy of focusing on non-rated entities. Further, master funding demonstrates leveragability and contingent liquidity for the company's portfolio. Limited Operating History: AFIN's rapid growth and shorter operating history result in limited comparable performance metrics. Positively, the company's occupancy and collection rates have been strong during the coronavirus pandemic, likely aided by its service retail focus and high percentage of IG-rated tenants DERIVATION SUMMARY AFIN's diversified portfolio with high single-tenant service retail exposure is generally in line with 'BB+' category net lease peers as measured by occupancy, tenant exposure. The company's Weighted Average Lease Term (WALT) of 8.5 years is lower than the Fitch-rated net lease average of 10 years but high compared to the broader REIT peer group, including focused office and industrial REITs. Fitch expects SSNOI growth in line with net lease peers in the low single-digit range through the forecast period. AFIN's credit metrics are similar to net lease peer Global Net Lease (BB+/Stable), but weaker than Getty Realty Trust (GTY; BBB-/Stable), Four Corners Property Trust (FCPT; BBB-/ Stable) and Essential Properties Realty Trust (EPRT; BBB-/Stable), service-based retail, net lease peers that have leverage policies ranging from 4.5x-6.0x. Fitch rates the IDRs of the parent REIT and subsidiary operating partnership on a consolidated basis, using the weak parent/strong subsidiary approach and open access and control factors, based on the entities operating as a single enterprise with strong legal and operational ties. For unsecured issues, Fitch applies an 'RR4' rating with ratings at 'BB+', in line with the IDR. No Country Ceiling or operating environment aspects have an impact on the rating. Fitch applies 50% equity credit to the company's perpetual preferred securities given the cumulative nature of coupon deferral with settlement through a manner other than equity (cash). Certain metrics calculate leverage including preferred stock. KEY ASSUMPTIONS -- Low single digit SSNOI growth in fiscal years 2021-2022; -- Occupancy increases slightly through the forecast period; -- Acquisitions of $1.3 billion in 2022, and $300 million - $400 million per year thereafter; dispositions totaling $510 million in 2022-2023; -- Equity issuances of approximately $200 million - $300 million per year through 2024. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- REIT leverage (net debt to recurring operating EBITDA) sustaining below 7.0x; -- Greater demonstrated access to unsecured debt capital; -- Unencumbered assets to unsecured debt (UA/UD) at or above 2.0x. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- REIT leverage (net debt to recurring operating EBITDA) sustaining above 8.0x; -- UA/UD sustaining at or below 1.5x; -- Portfolio operational underperformance with respect to occupancy, tenant retention and rent spreads. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. LIQUIDITY AND DEBT STRUCTURE Strong Liquidity: Fitch estimates AFIN's base case liquidity coverage at 1.2x (proforma for the announced acquisition) through YE 2023, which is strong for the rating. Fitch's liquidity assumptions include the $500 million senior unsecured notes that were issued in 4Q21 along with the additional liquidity provided by the firm's amended and upsized revolver (from $540 million to $815 million). The company does not engage in development projects, and the triple-net lease nature of the business does not require material recurring maintenance capex, although Fitch expects capex needs to increase following the CIM acquisition. The company has established and used at-the-market issuance programs for common and preferred stock, which Fitch views favorably. However, AFIN shares currently trade at a discount to NAV, which could temper equity issuance to fund acquisitions. Fitch defines liquidity coverage as sources of liquidity divided by uses of liquidity. Sources include unrestricted cash, availability under unsecured revolving credit facilities, and retained cash flow from operating activities after dividends. Uses include pro rata debt maturities, expected recurring capex, and forecast (re)development costs. ISSUER PROFILE American Finance Trust (AFIN) is an externally managed REIT focusing on acquiring and managing a diversified portfolio of primarily service-oriented and traditional retail and distribution-related commercial real estate properties located primarily in the U.S. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. ANASTASIA HOLDINGS: S&P Raises ICR to 'CCC+', Outlook Negative -------------------------------------------------------------- S&P Global Ratings raised its issuer credit rating on Beverly Hills, Calif.-based color cosmetics company Anastasia Holdings LLC (Anastasia Beverly Hills; ABH) to 'CCC+' from 'CCC' as it no longer envisions a default scenario in the next 12 months. S&P said, "At the same time, we raised our issue-level rating on the company's senior secured credit facility to 'CCC+' from 'CCC'. Our '3' recovery rating remains unchanged, indicating our expectation for meaningful (50%-70%; rounded estimate: 50%) recovery for lenders in the event of a payment default. "The negative outlook reflects our view that the rating could be lowered in the next 12 months if the company does not address its 2023 revolver maturity before it becomes current in August 2022. We also believe the company's operations will remain volatile due to its prior track record and amid uncertainty in the macroeconomic environment and the color cosmetics market. "The upgrade reflects our view that although the company's capital structure remains unsustainable, the likelihood that it would default in the next 12 months has decreased. Financial performance has exceeded our previous forecast, but credit metrics remain very weak, with leverage of 19.3x (9x excluding preferred stock, which we include as debt) as of the 12 months ended Sept. 30, 2021. In addition, the company's free operating cash flow generation of $24 million for year-to-date September 2021 is significantly improved from negative a year ago and our previous forecast for negative free operating cash flow in fiscal 2021. Despite this, leverage remains very high and we continue to view its operations as vulnerable to unexpected volatility in the macro environment and changes in the color cosmetics market, and its capital structure as unsustainable. The U.S. color cosmetics market returned faster than expected in 2021, with consumers beginning to purchase makeup as social activities picked up over the summer. However, the company's revenue is still over 20% below 2019 levels, and we believe it won't likely return to pre-pandemic levels in the near to medium future. In our view ABH remains a small and niche competitor, whose ability to sustain the growth it has achieved this year and take market share in the increasingly competitive color cosmetics market remains unproven." The company's liquidity position is improving with positive cash flow generation. The company received an equity infusion from its owners Anastasia Soare and TPG Capital in summer 2020. S&P believes the worst is over for the company from the 2020 shock, but variants of COVID-19 will likely make its recovery choppy, posing risk to its ability to refinance its revolver which becomes current in August 2022. The company recently paid off its revolver borrowings from cash on the balance sheet, but we believe it would be challenged to maintain adequate liquidity in adverse conditions without full access to a revolver. The company's term loan trading price remains distressed but has improved to the high 80 cents area (from the steep discount of around 30 cents at the peak of the pandemic), making a distressed exchange in the next 12 months less likely. S&P said, "We believe the company will have to address its preferred equity with TPG before the capital structure is sustainable. TPG initially invested in the company with $600 million of preferred stock (class A stock) in 2018, this instrument accrues a paid-in-kind interest compounded annually. In addition, we also consider the owners' equity contribution in 2020 of approximately $61 million of preferred equity as debt in our calculation of the company's adjusted debt. We believe as the company's performance improves, it will likely replace its preferred stock with debt (either from refinancing or selling to another private equity firm via a leveraged transaction) to prevent future equity dilution when possible. We currently add approximately $800 million of preferred stock into the calculation of our adjusted debt. Given the company's track record, we believe its initial plan of IPO is unlikely, and leverage will likely stay in the double-digits." ABH remains a small and niche competitor. The company sells predominately through specialty beauty retailers, with more than 50% of its sales through ULTA and Sephora. The company's performance was already struggling before the COVID-19 pandemic as the color cosmetics market began to decline as consumers shifted to skincare purchases. In addition, the company's main marketing channel--social media--had significant competition from larger players. As a result, the company's revenue declined quickly and it lost market share to competitors. S&P said, "The negative outlook reflects our view that the rating could be lowered in the next 12 months if the company does not address its 2023 revolver maturity before it becomes current in August 2022. It also reflects our expectation that the company's operations could remain volatile due to its prior track record and amid uncertainty in the macroeconomic environment and the color cosmetics market." S&P could lower its rating if it believes the company will likely default without an unforeseen positive development over the next 12 months. This could occur if: -- It does not address its revolver maturity ahead of it becoming current in August 2022; -- The company's performance deteriorates from a worsening color cosmetics market, increasing competition, or operational issues such that its revenue, profitability, and cash flow generation declines from current levels; or -- S&P believes there is increasing likelihood that the company will pursue a distressed exchange or balance sheet restructuring. S&P could revise its outlook to stable if it believes the company's operating performance is stabilizing, which could occur if: -- The company successfully address its revolver maturity; and -- Performance meets our expectations from a better-than-expected consumer response to its products, and it continues to grow while taking share from competitors and expanding its profitability and cash flow generation. ATHLETIC SPECIALTIES: Case Summary & 20 Largest Unsec. Creditors ---------------------------------------------------------------- Debtor: Athletic Specialties 2, Inc. 1240 Karl Court Suite 1 Wauconda, IL 60084 Chapter 11 Petition Date: December 19, 2021 Court: United States Bankruptcy Court Northern District of Illinois (Chicago) Case No.: 21-14328 Judge: A Benjamin Goldgar Debtor's Counsel: Ariel Weissberg Weissberg & Associates, Ltd Tel: 312-663-0004 E-mail: ariel@weissberglaw.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Scott Palmberg, president. A copy of the Debtor's list of 20 unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/PVLNFTA/Athletic_Specialties_2_Inc__ilnbke-21-14328__0001.0.pdf?mcid=tGE4TAMA BLUEAVOCADO CO: Taps Michael Best & Friedrich as Special Counsel ---------------------------------------------------------------- BlueAvocado, Co. seeks approval from the U.S. Bankruptcy Court for the Western District of Texas to hire Michael Best & Friedrich, LLP as special counsel. The firm's services include: a. Advising the Debtor on general corporate legal matters that are not otherwise being directly handled by its bankruptcy counsel; b. Representing the Debtor in connection with litigation pending in Travis County, Texas, styled, Lee Valkenaar, et al. v. Edward Roels, et al., Cause No. D-1-GN-19-001505; c. Representing the Debtor in connection with litigation pending in Travis County, Texas, styled, BlueAvocado, Co. v. Travelers; d. Representing the Debtor in all other litigation, licensing, regulatory, tax and governmental matters; and e. Representing the Debtor in general administrative matters associated with its Chapter 11 case. The hourly rates charged by the firm's attorneys are as follows: Justin Mertz $550 per hour Richard Ressler $475 per hour Lance Hevizy $350 per hour In addition, the firm will seek reimbursement for work-related expenses. Richard Ressler, Esq., managing partner at Michael Best & Friedrich, disclosed in a court filing that his firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached at: Richard Ressler, Esq. Lance Hevizy, Esq. Michael Best & Friedrich, LLP 620 Congress Avenue, Suite 200 Austin, TX 78701 Tel: 512.320.0601 Fax: 512.640.3170 Email: rjressler@michaelbest.com lahevizy@michaelbest.com -- and -- Justin Mertz, Esq. Michael Best & Friedrich, LLP 790 N Water Street, Suite 2500 Milwaukee, WI 53202 Tel: 414.225.4972 / 414.271.6560 Fax: 414.277.0656 Email: jmmertz@michaelbest.com About BlueAvocado Co. BlueAvocado Co., an Austin, Texas-based manufacturer and distributor of reusable grocery bags, filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Texas Case No. 21-51384) on Nov. 10, 2021. In the petition signed by Julie Mak, president, the Debtor disclosed $1,499,370 in total assets and $2,243,028 in total liabilities as of Sep. 30, 2021. Judge Craig A. Gargotta oversees the case. The Debtor tapped Raymond W. Battaglia, Esq., at the Law Offices of Ray Battaglia, PLLC as bankruptcy counsel; Michael Best & Friedrich, LLP as special counsel; and AB Accretive, LLC as financial advisor. BROOKFIELD WEC: S&P Affirms 'B' ICR, Outlook Stable --------------------------------------------------- S&P Global Ratings revised its business risk profile score to fair from weak, and affirmed its 'B' ratings on Westinghouse Electric Co. (WEC). Brookfield WEC Holdings Inc.'s, the parent company of nuclear power plant products and service provider WEC, declining exposure to legacy contracts in the E&C markets and growing recurring-revenue base--as well as its larger scale and scope of operations than rated peers--reduces its business risk and should enhance future profitability. S&P said, "Our ratings reflect the company's scale as well as its strategic shift away from the more volatile, nonrecurring new power plant market. With approximately $3.2 billion of sales in 2020, WEC operates with greater scale than similarly rated capital goods peers. We continue to expect the company's Energy Systems business to decline over time as legacy projects roll off, including the Sanmen Haiyang facilities in China and the new reactors at the Vogtle plant in the U.S. Global nuclear reactor shutdowns have continued and much of the growth has been focused in Asia and other regions outside North America. We do not forecast new project revenue for WEC in our base case, but we do expect the company to continue growing its total revenue base, supported by a strong backlog of recurring sales in its other segments. "We expect the core Operating Plant Services business' revenue this year to remain in line with the 2020 level, despite a decline in the first half due to lower fuel volumes and a maintenance outages. WEC continues to perform well as global economies emerge from the pandemic. The company experienced a minimal impact on its business from COVID-19 because nuclear power plants are essential for power production in many communities. However, there were some delays in certain projects and descoping of maintenance work. Although the lingering COVID-19 variants present a degree of unpredictability, we believe the essential nature of Westinghouse's business insulates it from larger pandemic-related impacts. While we expect the demand for Nuclear power to decline in the U.S., it remains an essential element of the global energy mix. Furthermore, to ensure the safe and reliable operation of nuclear plants its customers cannot postpone maintenance. We expect that plant maintenance outages in the remainder of 2021 will result in stronger earnings relative to the first half. As a result, full year revenues should be relatively in line with 2020. "Despite our expectations for business improvement, margins remain pressured. In the second and third quarters, the company recognized additional costs and adjustments related to the completion of legacy projects. As a result, its S&P Global Ratings-adjusted LTM adjusted margins for the period ended Sept. 30, 2021 decreased approximately 230 basis points from the fiscal 2020 high. While we anticipate sequential improvement in the fourth quarter, 2021 leverage will likely remain elevated at or slightly above 7x. In addition, since the company emerged from bankruptcy it has embarked on a transformation plan to cut costs and drive stronger long-term profitability. We expect the company to continue prioritizing these initiatives, thus enabling WEC to delever toward the mid-6x range over the next 12 months. Our assessment of the company's financial risk also incorporates its financial sponsor ownership by Brookfield and the potential that leverage could remain high. "We expect that WEC will continue to generate strong FOCF as well as demonstrate adequate liquidity and covenant headroom. We anticipate the company will generate positive FOCF of approximately $175 million-$250 million over the next 12 months, with support from strong earnings from operations and working-capital inflows while maintaining similar levels of capital spending. We expect the company to remain acquisitive, using excess cash to fund opportunities that support both its existing customer base and new market growth. With over $300 million of cash on the balance sheet and full availability on its credit facilities, the company has adequate liquidity and covenant headroom to manage its operating needs over the next 12 months, in our view. "The stable outlook reflects our expectation that the company will remain disciplined in its approach to new builds and focus on reducing the costs in its base Operating Plant Services business, leading to strong cash-flow generation. We anticipate that the company's S&P Global Ratings-adjusted debt to EBITDA will exceed 7.0x in 2021 but continue to improve over the next 12 months." Downside scenario S&P said, "We could lower our rating on WEC if its debt to EBITDA remains elevated above 7x with no clear prospects for it to come down below 7x in the next 12 months. This could occur if the company engaged in additional debt-funded shareholder rewards or if its EBITDA margins were lower than we forecast due to unforeseen cost overruns or a failure to realize material savings from its restructuring efforts." Upside scenario S&P said, "Although unlikely over the next 12 months, we could raise our rating on WEC if we expect the company's adjusted debt to EBITDA to remain consistently below 5.0x, inclusive of potential future acquisitions and shareholder returns. The company would also need to maintain adequate liquidity while demonstrating a financial policy committed to maintaining its improved debt leverage on a sustained basis." BROWN JORDAN: S&P Affirms 'CCC+' ICR on CreditWatch Negative ------------------------------------------------------------ S&P Global Ratings affirmed the 'CCC+' issuer credit rating, and removed the ratings from CreditWatch, where S&P placed them with negative implications on Nov. 17, 2021, after the company failed to comply with its leverage covenant under its prior term loan facility. The outlook is negative. S&P withdrew its ratings on Brown Jordan because the company's $165 million term loan due in 2023 has been repaid. S&P Global Ratings withdrew all ratings on Brown Jordan, including the 'CCC+' issuer credit rating and 'CCC+' issue-level and '3' recovery ratings on the company's $165 million term loan due in 2023. This follows the company's refinancing of its term loan. BV GLENDORA: Unsecureds Will be Paid in Full -------------------------------------------- BV Glendora LLC, a Colorado limited liability company submitted a First Amended Disclosure Statement. The identity and fair market value of the estate's assets consist solely of the Property and the claims associated with the Rescission Action. As set forth in the appraisal report set forth as Exhibit D, the market value of the Glendora Property is estimated to be $3,000,000. The Plan will treat claims as follows: Class 4 – General Unsecured Claims. Class 4 consists of 2 non-insider claims, Dasher & Tabata in the amount of $2,011.25 and Tait & Associates in the amount of $520.00, these claims shall be paid in full 36 months after the Effective Date. Class 4 is impaired. Class 5 - Unsecured claim of the Debtor's affiliate Cadence Capital Investments LLC. Cadence's pre-Petition claim in the amount of $595,059.55 will be subordinated and junior to all other classes and which will receive no distribution unless and until all other allowed senior claims are paid in full. Class 5 is impaired. The Plan will be funded by the following: $100,000.00 new value contribution and financing from Glendora EF Investors, LLC and the Cadence Financing facility. Attorneys for Chapter 11 Debtor: JEFFREY S. SHINBROT A copy of the Disclosure Statement dated December 8, 2021, is available at https://bit.ly/3pHEBNR from PacerMonitor.com. About BV Glendora BV Glendora, LLC, is a Colorado limited liability company debtor and is the owner and developer a real estate project commonly known as 401 East Arrow Highway, in Glendora, California. The Glendora Property consists of a 32,000 square foot commercial building together with two adjoining parcels of commercial real estate. The Debtor acquired the Glendora Property in November, 2019, for a purchase price of $5,250,000, with $1,000,000 down-payment and a first deed of trust via a seller carryback for the remainder of the purchase price. The Glendora Property is currently vacant. Glendora EF Investors, LLC, is the 100% owner of BV Glendora's membership interests. Mr. William R. Rothacker is the manager of both the Debtor and Glendora EF Investors, LLC. BV Glendora, LLC, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 21-11627) on March 1, 2021. David B. Runberg, chief financial officer, signed the petition. In the petition, the Debtor disclosed assets of between $1 million and $10 million and liabilities of the same range. Judge Sheri Bluebond oversees the case. Jeffrey S. Shinbrot, APLC, is the Debtor's legal counsel. CELLA III: Hearing on Motion to Supplement Continued to Jan. 11 --------------------------------------------------------------- Judge Meredith S. Grabill entered an order that the Motion to Supplement the Record and for Scheduling Order in Connection with Amended Chapter 11 Plan of Cella III, LLC is continued to Tuesday, January 11, 2022, at 9:00 A.M. The hearing will take place before the undersigned at the U.S. Bankruptcy Court, Eastern District of Louisiana, 500 Poydras Street, Courtroom B-709, New Orleans, Louisiana. About Cella III LLC Cella III, LLC, owns the building and real estate located at 4545, 4539, and 4531 Veteran's Memorial Highway, Metairie, LA. This property is located at a prominent, heavily traveled commercial intersection of Veterans Memorial Boulevard and Clearview Parkway. Cella III filed a Chapter 11 petition (Bankr. E.D. La. Case No. 19-11528) on June 5, 2019. In the petition signed by George A. Cella, III, member and manager, the Debtor was estimated to have $10 million to $50 million in assets and $1 million to $10 million in liabilities. Judge Jerry A. Brown oversees the case. The Debtor tapped Congeni Law Firm, LLC as bankruptcy counsel, Sternberg, Naccari & White, LLC as special counsel, and Patrick J. Gros, CPA, APAC, as accountant. CVENT INC: S&P Upgrades ICR to 'B' Following Debt Repayment ----------------------------------------------------------- S&P Global Ratings raised its issuer credit rating on Tysons Corner, Va.-based provider of event management and hospitality software Cvent Inc. to 'B' from 'CCC+' and its issue-level rating on its first-lien secured credit facility to 'B+' from 'CCC+'. At the same time, S&P revised its recovery rating on the first-lien facility to '2' from '3' to reflect its improved lender recovery prospects following the debt reduction. The stable outlook reflects S&P's expectation Cvent's growth investments will drive double-digit revenue growth with steady adjusted EBITDA margins in the 11% to 12% area in 2022 such that adjusted leverage remains in the high-4x area. The merger results in significant improvement in the company's forecast leverage, cash flow metrics and credit quality. The significant debt repayment following the transaction will drive Cvent's S&P Global Ratings-adjusted leverage down to the high-4x area by year-end 2021, from 10.4x as of Sept. 30, 2021. Additionally, the debt reduction lowers Cvent's pro forma interest expense by about $20 million which will allow the company to generate about $40 million in annual reported free operating cash flow in 2022 and 2023. In addition, the company has total liquidity of $178.2 million available across its revolving credit facility and cash on hand which should adequately meet the company's growth and reinvestment needs. The company's growth investments will limit EBITDA margin expansion and leverage reduction over the next year. S&P said, "We expect leverage will remain in the high-4x area over the next 12 months despite solid topline growth as Cvent maintains its investments into sales and marketing and research and development to acquire clients and build out its platform capabilities to adapt to a changing industry landscape that will include a structurally larger share of hybrid and virtual events (in addition to those in person). We expect Cvent's S&P Global Ratings-adjusted EBITDA margins will decline to the mid-12% area in 2021, from over 19% in 2020, and by 150 basis points (bps) to about 11% in 2022 due to these growth investments as well as an increase in certain costs temporarily reduced during the pandemic." Cvent's virtual event and engagement solution Attendee Hub was developed quickly in 2020 and has already supported virtual annual contract value bookings of over $266 million. This supports our view the company offers one of the more complete event management platform products in the market, and it should drive revenue growth to the low double-digit area in 2022. Financial sponsor ownership may limit additional deleveraging. Cvent's financial-sponsor owner, Vista Equity Partners, remains in control of the company with an 82.7% stake in Cvent following the transaction. Additionally, Vista's board representation will include five out of nine members, and S&P believes Vista will retain the ability to influence Cvent's operational and capital allocation strategy, which could result in an aggressive financial policy with leveraging acquisitions. The company's below average EBITDA margins, modest operating scale, and narrow business focus limit S&P's business risk assessment. Cvent's EBITDA margins lag most enterprise software peers (25%-30% on average), its salesforce and other growth investments notwithstanding. This is due to its labor-intensive cost structure and the relatively high cost of delivery associated with cloud-based solutions. In S&P's view, its below average profitability, modest EBITDA operating base, and niche focus in the cyclical event and conference management software industry limit its leveraging capacity. Offsetting factors include the company's strong organic revenue growth track record, its market leadership, brand recognition in the industry and high percentage of recurring and reoccurring revenue (92%). The stable outlook reflects S&P's expectation Cvent's growth investments will drive double-digit revenue growth with steady adjusted EBITDA margins in the 11% to 12% area in 2022 such that adjusted leverage remains in the high-4x area. S&P could lower the ratings over the next 12 months if it expects adjusted leverage to rise and exceed 7x or free operating cash flow (FOCF)-to-debt is expected to decline to the low single-digit percent area. In this case: -- Revenue growth remains in the single-digit percent area due to additional fallout from the pandemic or low demand for its virtual event solution; -- S&P Global Ratings-adjusted EBITDA margins decline sharply; -- The company adopts a more aggressive financial policy consisting of high-priced debt-funded acquisitions or leveraging shareholder returns. S&P could raise its ratings if the company sustains adjusted leverage below 5x, and S&P expects: -- Organic revenue growth in the double-digit percent area and EBITDA margin expansion toward that of its peers; -- Enhanced business diversity and end-markets better insulate revenues from pandemic driven lockdowns; -- A steady decline in the share of common stock owned by Vista Funds towards the 40% area; and -- A reserved financial policy with respect to large leveraging shareholder returns or acquisitions. DUTCHINTS DEVELOPMENT: Two More Creditors Appointed to Committee ---------------------------------------------------------------- The U.S. Trustee for Region 17 appointed two more creditors to serve on the official committee of unsecured creditors in the Chapter 11 case of Dutchints Development, LLC. The new members are: 1. Fred Kurland Attn: Fred Kurland 4213 Los Palos Avenue Palo Alto, CA 94306 Phone: (650) 862-1172 E-mail: Fred.Kurland@outlook.com 2. Cathy Ettenger Attn: Cathy Ettenger 581 Bridgeport Terrace Sunnyvale, CA 94087 Phone: (415) 577-3038 E-mail: Ettenger19@yahoo.com Counsel: Stephen R. Pappas 9515 Soquel Drive Ste 202 Aptos, CA 95003 Phone: (831) 661-5851 E-mail: Steve@stephenpappas.com The bankruptcy watchdog had earlier appointed The Sabet Revocable Family Trust, Paul Harms and Verse Two Properties, LLC as committee members, court filings show. About Dutchints Development Dutchints Development LLC, a Los Altos, Calif.-based company engaged in activities related to real estate, filed its voluntary petition for Chapter 11 protection (Bankr. N.D. Calif. Case No. 21-51255) on Sept. 29, 2021, listing as much as $10 million in both assets and liabilities. Vahe Tashjian, managing member, signed the petition. Judge Elaine M. Hammond presides over the case. Geoffrey E. Wiggs, Esq., at the Law Offices of Geoff Wiggs represents the Debtor as legal counsel. EW SCRIPPS: Fitch Affirms 'B' LT IDR, Outlook Stable ---------------------------------------------------- Fitch Ratings has affirmed The E.W. Scripps Company's (Scripps) Long-Term Issuer Default Rating (IDR) at 'B' and the senior secured issue rating at 'BB'/'RR1'. Fitch has also upgraded Scripps' senior unsecured issue rating to 'B'/'RR4' from 'B-'/'RR5' due primarily to the repayment of $500 million of debt in 2021. The Rating Outlook is Stable. KEY RATING DRIVERS ION Media Acquisition: On Jan. 7, 2021, Scripps acquired ION Media Networks (ION), the fifth-rated national broadcast network, for $2.65 billion or 8.2x June 30, 2020 EBITDA (5.9x with full synergies). The acquisition provides Scripps with access to national advertising from the general, upfront and scatter markets, as well as direct response, which grew more than 20% in 3Q21. The acquisition is also expected to contribute approximately $500 million of synergies over six years, including a meaningful reduction of carriage fees for Scripps' digital networks as distribution transitions over to Scripps-owned stations. High but Declining Leverage: Scripps financed the ION transaction with a mix of cash from divestiture proceeds and debt and preferred equity issuance resulting in Fitch-calculated pro forma last eight quarters annualized (L8QA) closing leverage of 6.3x (inclusive of preferred equity). Although Scripps' operating performance is in line with Fitch's expectations, it repaid more debt than expected ($500 million actual versus $200 million expected), driving Fitch-calculated leverage to 5.7x. Fitch expects Scripps will continue to repay debt in line with management comments, further pushing leverage below 5.5x over the rating horizon. Business Model Realignment: Scripps realigned its business model into three segments: Local Media (television stations), Scripps Networks (nine national multicast networks and Newsy, a digital national news network) and Other to create a full-scale national television business. Scripps Network provides access to national advertisers with its almost ubiquitous coverage of all U.S. households through free over-the-air broadcast and various free and subscription services. It also has higher operating margins than Local Media. Advertising Exposure: Ad revenues accounted for approximately 65% of Scripps' L8QA total pro forma revenues (excluding political), with local advertising comprising a significant portion. The ad spending decline trajectories in 2020 was consistent with Fitch's view that ad spend on legacy mediums such as linear television, terrestrial radio, out-of-home, etc. will remain hypercyclical. Although the ad market's pace of recovery exceeded Fitch's initial expectations, Fitch continues to remain cautiously optimistic about overall ad market expectations into 2022 but expects legacy mediums to continue losing share. Fitch believes Scripps has become better positioned to manage through weaker operating performance due to contractual increases in retransmission revenues (currently mid-20% of pro forma revenues, ex. political) and increasing exposure to national advertising (reduces localized economic effects). Incrementally, the softened ad environment did not appear to have an impact on 2020 political ad revenues and Fitch expects a robust political advertising cycle in 2022 that could approach the scale of the historical 2020 presidential election. Growing Net Retransmission Revenues: Fitch expects that retransmission revenues will grow at a high-single-digit pace over the near term. Fitch expects these fees to continue to increase given the significant gap between a broadcast station's audience share and its share of multichannel video programming distributors' (MVPDs) programming fees. However, Fitch notes affiliates share an increasing proportion of these fees with the networks, which are expected to increase from roughly 51% in 2018 to mid-50% by YE 2023 per SNL Kagan. Weak, Albeit Improving, EBITDA Margins: Fitch expects Scripps' EBITDA margin will improve over the rating horizon due to operating improvements and cost savings related to the ION acquisition. However, Fitch expects margins to continue lagging peers due to the still-high concentration of lower-rated stations in Scripps television portfolio. In addition, although Scripps Networks reduces Scripps' reliance on the local television business and generates much better operating margins, they only generate approximately 40% of total revenues and ION's cost synergies are expected to be realized over six years. Improving FCF: TV broadcasters typically generate significant amounts of FCF due to high operating leverage and minimal capex requirements. Since closing the ION acquisition, management raised its FCF guidance twice, most recently to $255 million to $265 million (3Q21). Drivers include the ION integration, the addition of more than 1,000 new-to TV advertisers in each of the last two quarters and a significant increase national advertising revenue. Viewer Fragmentation: Scripps continues facing secular headwinds present in the TV broadcasting sector including declining audiences amid increasing programming choices, with further pressures from over-the-top (OTT) internet-based television services. However, it is Fitch's expectation that local broadcasters will remain relevant. Fitch also views positively the increasing inclusion of local broadcast content in OTT offerings. Growth in OTT subscribers could provide incremental revenues and offset declines of traditional MVPD subscribers. However, Fitch does not believe penetration will be material for Scripps over the near term, particularly give the company's predominance in smaller and medium-sized markets. DERIVATION SUMMARY Scripps' 'B' IDR reflects its smaller scale and higher leverage relative to the larger and more diversified media peers, like ViacomCBS, Inc. (BBB/Stable) and Discovery Communications (BBB-/Stable). Although Fitch views Scripps' enhanced scale and diversification following the ION acquisition as credit positives, pro forma total leverage is expected to remain well above ViacomCBS and Discovery. Scripps has a similar leverage profile as Gray Television Inc. (BB-/Stable). However, Gray benefits from a television station portfolio with stations ranked number one or number two in 92% of its markets and has significant exposure in political battleground geographies. Gray's EBITDA margins, in the high 30% range (two-year average), lead the peer group. By comparison, Fitch expects Scripps' EBITDA margins will remain in the mid-to-high 20% range (even-odd year average). HYBRIDS TREATMENT AND NOTCHING Fitch treats the $600 million of preferred shares issued to Berkshire Hathaway as 100% debt, and does not apply any equity credit based on: -- The preferred shares are subordinated to all other debt instruments in Scripps' capital structure, and senior only to equity; -- Scripps has an unconstrained ability to defer coupon payments, and can accrue interest at 100 bps above the cash dividend rate; -- The preferred shares are perpetual, and there is no issuer call option until 2026; -- Although the preferred shares lack material covenants, they do have a Change of Control clause. The Change of Control must be settled via cash redemption of the preferred shares at 105% of par, unless the preferred shareholder chooses to exercise its warrant, in which case the preferred shares will convert to common equity. Because Scripps does not have discretion in whether it settles the change of control in cash or in equity, equity credit is negated and Fitch treats the shares as 100% debt. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: Local Media -- 2021 results reflect Scripps' most recent guidance which Fitch believes is achievable; -- Core advertising returns to low single digit growth thereafter; -- Political advertising revenues of roughly $270 million in 2022 with strong presidential cycle; -- Retransmission revenues grow to more than $700 million by 2024, representing mid-single digit annual growth; -- EBITDA margins fluctuate reflecting even year political revenues but are expected to improve on average due to the mix shift towards higher-margin retransmission revenues. Scripps Network -- 2021 results reflect Scripps' most recent guidance which Fitch believes is achievable; -- Thereafter, annual mid- to high-single digit revenue growth and improved profitability incorporate the better operating profile of the Katz digital multicast networks. Newsy benefits primarily from OTT advertising revenue growth and increased carriage arrangements with traditional multichannel programming distributors. Aggregate -- Fitch assumes Scripps exhausts its NOLs in 2022 and cash taxes increase; -- Fiscal 2021 reflects a full year of ION media financial results; -- Roughly $30 million in pension contributions in 2021 and thereafter $10 million annually over the forecast period; -- Capex at roughly 2.5% of revenues; -- Dividends and share buybacks suspended due to preferred shares; -- L8QA average leverage falls 5.5x over the rating horizon. KEY RECOVERY RATING ASSUMPTIONS The recovery analysis assumes that Scripps would be considered a going-concern in bankruptcy and that the company would be reorganized rather than liquidated. Fitch has assumed a 10% administrative claim. Scripps' going-concern EBITDA is based on pro forma LQ8A EBITDA, including a full year of ION Media. Fitch then stresses operating performance by assuming an economic downturn. This results in a severe cyclical decline in TV station's core advertising revenues of roughly 15%, while also negatively affecting advertising at Scripps Networks (ION Media, Newsy, Katz). Fitch expects traditional mediums, including television, will again be disproportionately impacted by the pullback in advertising. Fitch notes Scripps benefits from its higher proportion of subscription revenues (retransmission revenues) relative to the previous recessionary period and does not expect political ad revenues to be impacted by economic pressure. However, given the high degree of operating leverage in the business, Scripps' going-concern LQ8A EBITDA declines almost 20% to $560 million. Fitch employs a 6x distressed enterprise value multiple reflecting the value present in the company's FCC licenses in small and medium-sized U.S. markets. This multiple is roughly in-line with the median TMT emergence enterprise value/EBITDA multiple of 5.5x. It also incorporates the following: (1) Public trading EV/EBITDA multiples typically range from 8x-11x; (2) Recent M&A transaction multiples in a range of 7x-9x including synergies. Gray Television acquired Raycom Media for $3.6 billion in January 2019, including $80 million of anticipated synergies, or 7.8x. Apollo Global Management, LLC acquired Cox Media for $3.1 billion in February 2019 pre-synergies, or 9.5x. Nexstar Media Group acquired Tribune Media Company in September 2019 for $7.2 billion, including the assumption of debt and $185 million of outlined synergies, or 7.5x. Nexstar then sold 22 stations to three buyers as required under the terms of the Tribune acquisition for a blended 7.5x. Scripps announced its acquisition of 15 television stations from Cordillera Communications in October 2018 for $521 million, or 8.3x including $8 million in outlined synergies. Scripps announced its acquisition of eight stations from Nexstar in March 2019 for $580 million. The purchase price represented an 8.1x multiple of average two-year EBITDA excluding the New York City CW affiliate, WPIX. Fitch estimates an adjusted, distressed enterprise valuation of roughly $3.4 billion. Fitch assumes a fully drawn revolver ($400 million) in its recovery analysis since credit revolvers are tapped as companies are under distress. As of Sept. 30, 2021, Scripps had $2.3 billion in senior secured term loans and notes, $1.0 billion in unsecured debt, and $600 million of preferred equity. The recovery analysis results in a 'RR1' recovery rating for the company's secured first lien debt reflecting Fitch's belief that 91%-100% expected recovery is reasonable, resulting in a 3-notch uplift from the IDR of 'B' to an issue-level rating of 'BB'. The recovery analysis results in an 'RR4' recovery rating for the senior unsecured notes, reflecting 31%-50% expected recovery, resulting in no notching and an issue-level rating of 'B'. Fitch notes the issue rating benefitted from the Scripps' repayment of approximately $500 million of debt since the ION acquisition's closing, resulting in the upgrade from 'B-'. Fitch does not rate the preferred equity. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- Two-year average total leverage (total debt with equity credit/operating EBITDA) sustained below 5.5x. -- Two-year average FCF/Gross Adjusted Debt above 5%. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Two-year average total leverage sustained above 6.5x as a result of incremental acquisition activity, shareholder friendly activities or weaker than anticipated operating performance including an acceleration in secular pressures. -- Two-year average FCF/Gross Adjusted Debt falls below 2.5%. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. LIQUIDITY AND DEBT STRUCTURE Adequate Liquidity: At Sept. 30, 2021, Scripps had $72 million in cash and cash equivalents, excluding $34 million of restricted cash, and had full access to its revolver, which was upsized to $400 million from $210 million on Jan. 7, 2021 in connection with the ION acquisition. The company has no material maturities until 2024, when its term loan B1 matures (approximately $281 million expected outstanding after required annual amortization payments), while required annual term loan amortization totals $19 million. Fitch expects positive FCF over the rating horizon and no revolver borrowings. Management raised its fiscal 2021 FCF guidance for the second time this year on its 3Q21 conference call to $255 million - $265 million, up from its original $210 million - $240 million, due to the accelerated ad market rebound and overall stronger operating performance. The company's revolving credit facility has a 4.50x maximum first lien net leverage covenant which is tested only when there are revolver borrowings outstanding (springing covenant). ISSUER PROFILE The E.W. Scripps Company (Scripps) is the nation's fourth-largest TV broadcaster with 61 stations in 41 markets, serving audiences through a diversified portfolio of local and national media brands. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. EXELA TECHNOLOGIES: S&P Upgrades ICR to 'CCC-', Outlook Negative ---------------------------------------------------------------- S&P Global Ratings raised its issuer credit rating on its issuer credit rating on Exela Technologies Inc. to 'CCC-' from 'SD'. The outlook is negative. S&P said, "We assigned our 'CCC-' issue-level rating and '4' recovery rating to the company's new 11.5% first-priority senior secured notes due 2026. We also raised our existing senior secured ratings to 'CCC-' from 'D' on the company's remaining 10% notes and term loan. "We assigned our 'CCC-' issue-level rating and '4' recovery rating to the company's new 11.5% first-priority senior secured notes due 2026. We also raised our existing senior secured ratings to 'CCC-' from 'D' on the company's remaining 10% notes and term loan. "In our view, Exela faces a material liquidity deficit over the next year, and absent a capital infusion, a comprehensive restructuring is likely within the next year. Exela's $100 million fully drawn revolver matures in July 2022, and the company also needs to fund an appraisal action settlement in the future. Furthermore, we project the company will continue to experience free cash flow deficits over the next 12 months, with no additional borrowing capacity available on its revolving credit or securitization facilities. These liquidity requirements substantially exceed our forecast of roughly $40 million - $50 million in balance sheet cash at year end 2021, which we consider the minimum cash balance necessary to run the business." Exela raised $35 million in equity investments earlier in December from B. Riley securities. However the prospects for further at the market (ATM) equity offerings to fund short term liquidity needs are unclear. The recent exchange resulted in a reduction in debt, however interest and amortization savings are more substantial. The company exchanged $662.7 million in new notes and $225 million in cash for $912.7 million of old notes. Additionally, $127.8 million of new notes and cash were exchanged for $212.1 million of old term loans. Roughly $192 million of the new notes and additional equity are held by affiliates of the company in an indirect wholly owned subsidiary. The maturity date for the new notes will be July 15, 2026, if no old notes or old term loans remain outstanding; however, if there are outstanding notes or term loans, the maturity date will be July 15, 2023. Following the exchange, all covenants on the existing debt have been eliminated, cash interest expense has been reduced by roughly $25 million, and amortization payments on the term loan have been reduced to about $5 million per year. Despite gross margin improvements in 2021, the company continues to experience steep revenue declines and cash flow deficits. Revenues for the company declined roughly 11% as of Sept. 30, 2021 compared with the same prior year period, with free cash flow deficits of $81 million. S&P said, "The company's gross margins have been improving as it sheds some lower margin contracts, and we expect revenues to stabilize in 2022 due to new contract wins. However, the timing for implementing these new contracts remains uncertain, and the company has experienced elevated working capital needs and ongoing optimization and restructuring (O&R) expenses. The company has roughly $15 million in O&R expenses year to date, down from $36 million last year, driving some of the improvement in gross margins for the business. We forecast the company will continue to experience roughly $5 million per quarter in O&R expenses during 2022. Additionally, we expect tight labor market conditions and the COVID-19 pandemic will be disruptive to the company's large global workforce, and make sourcing and recruiting employee's more difficult, as greater than 60% of employees are in higher-cost regions such as the Americas and EMEA." The negative outlook reflects upcoming maturities in July 2022 for the company's fully drawn $100 million revolving credit facility and the likelihood of restructuring. S&P said, "We could lower our ratings on Exela if the company defaults, announces a distressed exchange or restructuring, or misses an interest payment. "We could revise our outlook on Exela to stable or raise our rating if the company addresses its upcoming revolver maturity. We would also expect at least a one-year liquidity runway, and an EBITDA to interest ratio above 1.2x." GALA SERVICE: Case Summary & One Unsecured Creditor --------------------------------------------------- Debtor: Gala Service, Corp. 4310 39th St Sunnyside, NY 11104-4302 Chapter 11 Petition Date: December 17, 2021 Court: United States Bankruptcy Court Eastern District of New York Case No.: 21-43106 Judge: Elizabeth S. Stong Debtor's Counsel: Alla Kachan Law Offices Of Alla Kachan P.C. Tel: 718-513-3145 E-mail: alla@kachanlaw.com Scheduled Assets: $448,092 Scheduled Liabilities: $1,380,414 The petition was signed by Mitchell Cohen, president. List of Creditors Who Have the 20 Largest Unsecured Claims and Are Not Insiders: Entity Nature of Claim Claim Amount ------ --------------- ------------ PenFed Credit Union NYC Taxi $940,414 131 33rd Street, 7th Floor Medallions New York, NY 10001 #3G55, 3G56 A copy of the Debtor's list of 1 unsecured creditor filed together with the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/DDBRNLQ/Gala_Service_Corp__nyebke-21-43106__0001.0.pdf?mcid=tGE4TAMA GANDYDANCER LLC: Taps New Mexico Law Group as Litigation Counsel ---------------------------------------------------------------- GandyDancer, LLC seeks approval from the U.S. Bankruptcy Court for the District of New Mexico to hire New Mexico Law Group, P.C. as its civil litigation counsel. The firm's services include representing the Debtor in civil litigation, receivership matters, account receivables, and all other general litigation matters. The hourly rates charged by the firm are as follows: Attorney $275 per hour Paralegal $125 per hour Legal Assistant/Law Clerk $95 per hour In addition, the firm will seek reimbursement for work-related expenses. Robert Singer, Esq., at New Mexico Law Group disclosed in a court filing that the firm and its attorneys do not hold any interest adverse to the Debtor and its estate. The firm can be reached at: Robert N. Singer, Esq. New Mexico Law Group, P.C. 6709 Academy N.E., Suite A Albuquerque, NM 87109 Phone: 505-842-5500 Email: rsinger@swcp.com About GandyDancer GandyDancer, LLC provides underground utilities, railroad construction, maintenance, excavation, heavy-haul transportation, bridge construction, and demolition services. It is based in Albuquerque, N.M. GandyDancer filed a petition for Chapter 11 protection (Bankr. N.M. Case No. 19-12669) on Nov. 21, 2019, listing up to $50,000 in assets and up to $10 million in liabilities. Jamin Hutchens, managing member, signed the petition. Judge David T. Thuma oversees the case. Don F. Harris, Esq., and Dennis A. Banning, Esq., at NM Financial & Family Law serve as the Debtor's bankruptcy attorneys. The Debtor also tapped Carr Riggs & Ingram, LLC and New Mexico Law Group, P.C. as its accountant and civil litigation counsel, respectively. HOME TRUST: S&P Affirms 'BB+' Issuer Credit Rating, Outlook Stable ------------------------------------------------------------------ S&P Global Ratings affirmed its issuer credit and issue-level ratings on the 13 Canadian and Bermudian banks and their subsidiaries. The affirmations follow a revision to S&P's criteria for rating banks and nonbank financial institutions and for determining a Banking Industry Country Risk Assessment (BICRA). S&P affirmed its issuer credit ratings and issue-level ratings on: Bank of Montreal (A+/Stable/A-1) Bank of Nova Scotia (A+/Stable/A-1) Canadian Imperial Bank of Commerce (A+/Stable/A-1) Royal Bank of Canada (AA-/Stable/A-1+) Toronto-Dominion Bank (The) (AA-/Stable/A-1+) National Bank of Canada (A/Stable/A-1) Desjardins Group (A+/Stable/A-1) Laurentian Bank of Canada (BBB/Stable/A-2) HSBC Bank Canada (A+/Stable/A-1) Manulife Bank of Canada (A+/Stable/A-1) Home Trust Company (BB+/Stable/B) HSBC Bank Bermuda (A-/Stable/A-2) Bank of N.T. Butterfield (BBB+/Stable/A-2) S&P's outlooks on these 13 banks remain stable. S&P said, "Our assessments of economic risk and industry risk in Canada and Bermuda also remain '3' and '2', and '6' and '3', respectively. These scores determine the BICRA and the anchor, or starting point, for our ratings on financial institutions that operate primarily in those countries. The trends we see for economic risk and industry risk in Canada and Bermuda remain stable and stable, respectively." In addition, the group stand-alone credit profiles (SACP), which affect HSBC Bank Bermuda, HSBC Bank Canada, and Manulife Bank of Canada, and our assessment of the likelihood of extraordinary external support on domestically systemically important banks in Canada and Bermuda including Bank of N.T. Butterfield, Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Desjardins Group, National Bank, Royal Bank, and Toronto Dominion Bank are unchanged under our revised criteria. CANADIAN BANKS Bank of Montreal (BMO) The ratings reflect BMO's well-entrenched domestic retail and commercial platform and a retail and commercial franchise in the U.S. started several decades ago; sufficient capital to absorb even significant losses; credit quality that we believe will stay fairly strong; and a funding and liquidity profile similar to that of large peers. These strengths are somewhat offset by a domestic retail banking franchise that does not capture the same level of market share as do stronger peers such as Royal Bank and TD Bank. Outlook S&P said, "The stable outlook reflects our expectation that over our two-year outlook horizon, BMO will continue to focus on strengthening its retail banking franchise and positive trajectory of improved earnings and productivity ratio versus those of stronger peers. "We expect the forecast S&P Global Ratings risk-adjusted capital (RAC) ratio will remain comfortably in our adequate range (7%-10%) even with the resumption of share repurchases and higher dividend payouts, which we expect will be mostly offset by strong internal capital generation." Downside scenario. S&P could lower its assessment of BMO's SACP if credit losses were to meaningfully exceed the average of the large peers or if funding and liquidity metrics were to weaken significantly. Upside scenario. An upgrade is less likely, as S&P does not expect BMO to outperform its higher-rated domestic peers. Bank of Nova Scotia (BNS) The ratings on BNS reflect a strong domestic retail and commercial franchise and a diversified international banking platform. The ratings also reflect sufficient capital; and credit quality metrics that we expect will remain strong. The funding and liquidity metrics are moderately weaker than those of domestic peers but still within the range for the adequate score. These strengths are somewhat offset by an international banking franchise that has been lagging in operating performance vis-à-vis other segments of the bank, though it is beginning to turn around. Outlook The stable outlook reflects S&P's expectation that over its two-year outlook horizon, BNS will maintain strong operating performance. S&P expects the forecast RAC ratio will remain in the adequate range (7%-10%) though at the lower end (7.8% at second-quarter 2021), with strong earnings offsetting share repurchases and dividend increases. Downside scenario. S&P could lower its assessment of BNS' SACP if: -- Credit losses rose substantially; -- S&P expected the RAC ratio to fall below 7% on a sustained basis, perhaps due to substantially higher loan losses; or -- Funding and liquidity metrics, which are already slightly weaker than the peer average, weakened significantly. Upside scenario. S&P is unlikely to raise the ratings in the next two years, given the difficult comparison with higher-rated domestic and international peers, unless the bank's economic risk score changed and was that of domestic peers (which would lift the anchor) that have less international exposure to countries with less favorable BICRAs than Canada. Canadian Imperial Bank of Commerce (CIBC) The ratings on CIBC reflect our expectation that the bank will maintain its strong operating performance underscored by an established domestic banking franchise, improving revenue diversification, good credit quality performance, and sufficient capital to absorb even large losses. These strengths are somewhat offset by a retail and commercial banking franchise that ranks below in market share vis-vis other large peers. Outlook S&P said, "The stable outlook reflects our expectation that over a two-year time horizon, conservative underwriting and a measured risk appetite will help CIBC contain credit losses, as we expect asset quality metrics will weaken only modestly. Should losses be higher than our expectations, consistent earnings and strong regulatory capital ratios would help absorb them. Although we expect some pressure on the RAC ratio from higher capital payouts and loan growth, we believe that strong operating performance will offset that. We project CIBC's RAC ratio will remain squarely in our adequate range of 7%-10%." Downside scenario. While unlikely given S&P's current expectations for future performance, it could lower the rating if credit losses were to meaningfully exceed those of peers or we see consistent pressures on the bank's capital levels. Upside scenario. S&P could raise CIBC's SACP if it believes the bank's credit metrics could perform in line with those of higher-rated peers in a sustainable manner, despite its higher-than-peer concentration to leveraged Canadian households. However, S&P would raise the ICR only if it was to raise the SACP by at least two notches. Federation des caisses Desjardins du Quebec (FCDQ) FCDQ is a core subsidiary of the Desjardins Group and is vital and integral to the effective functioning of Desjardins. The ratings reflect Desjardins' significant retail franchise in Quebec with a leading market share in residential mortgages and retail deposits. It benefits from strong capital adequacy; good credit quality metrics; and a funding and liquidity profile that will remain close to its peers. This is somewhat offset by concentrated geographic exposure to Quebec; higher exposure to highly indebted domestic consumers versus the average of the large Canadian banks; and high inherent cost structure due to its cooperative nature. Outlook S&P said, "The stable outlook reflects our expectation that over our two-year outlook horizon, Desjardins Group will maintain a strong balance sheet, good earnings history, and robust capital ratios. The stable outlook also reflects Desjardins' leading and well-anchored market share in Quebec. We expect our forecast RAC ratio will remain at the high end of our strong range of 10%-15% over the next two years." Downside scenario. S&P could lower the ICR on FCDQ if it lowered its assessment of the stand-alone creditworthiness of the group (group SACP) on Desjardins. This could occur if credit losses meaningfully exceeded our expectations. Upside scenario. S&P could raise the ICR on FCDQ if it revised its SACP of the group. This could occur if the forecast RAC ratio sustainably exceeded 15% due to better-than-expected operating performance. Home Capital Group (HCG) The ratings reflect HCG's strong underwriting standards for near-prime mortgages, very strong capital adequacy ratio, and good progress to date on strengthening profitability, financial flexibility, and governance. However, the company's concentrated exposure to the riskier near-prime segment of the Canadian mortgage market, dependence on third-party brokered channel for mortgage and deposit originations, and limited revenue and geographical diversification are negative rating factors. Outlook S&P said, "The stable outlook reflects our expectation that over our two-year outlook horizon, HCG will continue to strengthen its operating performance and see only modest asset quality deterioration. We expect the forecast RAC ratio (21.7% at second-quarter 2021) to fall on share repurchases and resumption of dividend payments in 2022; and it could breach our 15% threshold for a very strong score." Downside scenario. S&P could lower the ICR if it expected the forecast RAC ratio to fall below 15% and remain there for an extended period; if the company's continuing plans to improve profitability lagged below expectations; or if funding and liquidity metrics weakened considerably from current levels, for example, through substantially greater reliance on brokered deposits and wholesale funding. Upside scenario. S&P could consider raising the ICR if it believed the company's operations have returned to more normalized levels of earnings, and that HCG is managing growth in its loan portfolios responsibly without any material increase in risk appetite. An upgrade would be contingent on maintenance of very strong capital, stable asset quality metrics, increased financial flexibility, and efficacy of governance. HSBC Bank Canada (HSBC Canada) S&P believes that, as a core subsidiary to the HSBC Group, HSBC Canada would likely receive support from the group under any foreseeable circumstances. It therefore rates it in-line with the other core subsidiaries of the group. Outlook S&P said, "The stable outlook on HSBC Canada reflects our outlook on the HSBC Group and its core operating subsidiaries headed by nonoperating company HSBC Holdings plc (HSBC; A-/Stable/A-2). We expect our ICR on HSBC Canada to move in line with that on other core operating subsidiaries of the HSBC Group, given that we assess HSBC Canada as a core operating subsidiary of the HSBC Group under our group rating methodology. Our base case is that group support will not meaningfully weaken during our two-year outlook horizon, and that the group will not extract capital from the bank that causes our RAC ratio to fall below our 7% threshold (adequate: 7%-10%). We believe that the parent will continue to support the Canadian operations." Downside scenario. S&P said, "We could lower the ICR on HSBC Canada if we were to lower our ratings on HSBC Group. We could also lower the ICR on HSBC Canada if we were to come to the view that the Canadian market is no longer of top-tier importance to the HSBC Group or if we think senior creditors won't benefit from the group's additional loss-absorbing capacity buffer." Upside scenario. The likelihood that S&P raise its ratings on HSBC Canada is also linked with its view of the group. Laurentian Bank of Canada (LBC) The ratings on LBC reflect a renewed strategic plan to reinvigorate the bank and resume growth, which is expected to produce positive incremental results over the medium-to-long term, and a track record of modest NCOs. This is somewhat offset by funding and liquidity metrics that are weaker than those of larger Canadian peers, though still within S&P's adequate range; and significantly smaller national market share, with concentration to Quebec and lack of business scale relative to the larger Canadian banks. Outlook S&P said, "The stable outlook reflects our expectation that over our two-year outlook horizon, LBC will stay focused on its strategy. We expect loan losses will increase modestly and be manageable due to strong economic and credit conditions. We also expect that the forecast RAC ratio (8% at second-quarter 2021) will remain in our adequate range of 7%-10%. We expect funding and liquidity metrics to stabilize. We believe that the bank's renewed strategic plan is likely to produce positive incremental results and strengthen the franchise in the medium-to-long term, if well executed." Downside scenario. S&P could lower the ratings if the renewed strategic plan does not produce incremental improvements in performance and growth; funding and liquidity metrics deteriorate substantially from current levels; or loan losses are outsize relative to those of Canadian peers. Upside scenario.An upgrade is unlikely, as we expect that the renewed strategy will take some time to produce good results, which we expect will be balanced with manageable asset quality metrics. We may revisit the bank's specific credit factors should peer relatives change in the future. Manulife Bank of Canada (MBC) The ratings on MBC reflect the strong brand recognition and parental support from Manulife Financial Corp., the parent; the bank's strategic importance to its parent; and very strong capital ratios, including the S&P Global Ratings RAC ratio. Those strengths are offset somewhat by a small national market share relative to that of the large Canadian banks; substantial concentration in residential mortgages; and lack of meaningful revenue diversification. Outlook S&P said, "The stable outlook reflects our expectation that over our two-year outlook horizon, MBC will conservatively manage its capital position so that the forecast RAC ratio remains above 15% (very strong threshold). We also expect the bank will continue to generate strong earnings. Although we expect loan losses will rise from pristine levels, we believe that they will remain manageable." Downside scenario. S&P could lower its SACP and rating on MBC if it expects the RAC ratio to fall below 15% (over 15% is very strong) on a sustained basis. This could occur, for example, if the parent company extracted outsize (from historical) special dividends; or if credit quality weakened considerably. Upside scenario. S&P said, "We believe that an upgrade is unlikely. We would only upgrade if we revised upward the bank's SACP and the parent's group credit profile improved or if its strategic importance to the group increased. The bank's small position in the Canadian banking market and concentration to residential mortgages limit the odds of a higher SACP. Furthermore, we don't expect to change our view on MBC's strategic importance." National Bank of Canada (NBC) S&P said, "Our ratings on NBC reflect its strong capital levels and growing scale in stable fee businesses such as wealth management. We expect asset quality metrics to be manageable. Still, NBC's reliance on capital markets trading revenues (which tend to be cyclically more volatile than other fee-based income) is higher than the D-SIBs' average." The bank also is concentrated in Quebec. Outlook The stable outlook on NBC reflects S&P's expectation that over its two-year outlook horizon, the bank will maintain a strong retail and commercial franchise and relatively strong client loyalty, particularly in its home province of Quebec, a reasonably diverse portfolio of business lines, a well-established strategy, strong asset quality metrics, and a RAC ratio that will remain at the high end of our adequate range (7%-10%). Downside scenario. S&P could lower the rating over the next two years, if the bank's stand-alone creditworthiness deteriorated; for example, if credit losses meaningfully exceeded D-SIB peer averages, or if the bank faced heightened market and operational risks and losses, or funding and liquidity metrics weakened. Upside scenario. S&P could raise its SACP and ratings on the bank if we expected NBC's RAC ratio to exceed 10% on a consistent basis. Royal Bank of Canada (RBC) The ratings reflect RBC's diversified business model and operating scale with leading market positions in Canada and a strong and expanding U.S. commercial and wealth management platform; sufficient capital to absorb even significant losses; and credit quality metrics that we expect will remain strong. Outlook S&P said, "The stable outlook reflects our expectation that over the two-year outlook horizon, RBC will maintain its substantial earnings power and a forecast RAC ratio that will be squarely in our adequate range of 7%-10% with some pressure from share repurchases and dividend increases, though to be offset by continued strong operating performance. We expect asset quality metrics to remain strong." Downside scenario. S&P could lower the ratings if credit losses meaningfully, and sustainably, increased compared with peers' or if we expected the RAC ratio to fall below 7% on a sustained basis, perhaps due to substantially higher loan losses. Upside scenario. An upgrade is unlikely, as S&P does not expect RBC to outperform its large domestic and international peers sufficiently to warrant an upgrade despite some comparative strengths and advantages. Toronto Dominion Bank (TD) The ratings reflect S&P's xpectation that TD will maintain its dominant domestic and U.S. retail franchise; sufficient capital to absorb large loan losses; and strong credit quality metrics. S&P expects access to domestic and international funding will remain strong and liquidity levels will fall but remain appropriate. Outlook S&P said, "The stable outlook reflects our expectation that over our two-year outlook horizon, TD's operating performance will remain solid. We expect the RAC ratio (9.1% at second-quarter 2021) will remain squarely within our adequate range of 7%-10%, and credit quality metrics will remain strong." Downside scenario. S&P could lower the ratings if credit losses exceeded its expectations and were meaningfully higher than the peer average. Upside scenario. An upgrade is less likely because S&P doe not expect TD to significantly outperform large domestic peers despite some comparative strengths and advantages. BERMUDIAN BANKS Bank of N.T. Butterfield (BNTB) The ratings on BNTB reflect a formidable competitive market position in Bermuda and the Cayman Islands, where few banks operate; a high proportion of relatively stable non-interest revenue; a long operating history in key markets; and sufficient capital to absorb large loan losses. These strengths are somewhat offset by geographic concentration of operations; exposure to tourism/hospitality, which could be unstable as demonstrated during the pandemic; and large single-name concentrations in the loan portfolio. Outlook S&P said, "Our stable outlook on BNTB reflects our expectation that over our two-year outlook horizon, the bank will maintain its substantial market position in key markets and manage credit losses effectively. We also expect the bank's regulatory capital ratios will remain strong, the RAC ratio will be at the upper end of our 7%-10% adequate range, and the bank will maintain good liquidity. We understand that the bank will continue its expansion strategy into countries it has identified, which will improve diversification." Downside scenario. S&P could lower the rating if operating performance substantially weakened or loan losses increased considerably. Upside scenario. S&P could raise the rating if the bank's geographical expansion materially improves diversification. HSBC Bank Bermuda (HBBM) The ratings reflect HBBM's strategic importance to HSBC Holdings PLC; leading competitive position in Bermuda; very strong capital adequacy; and large proportion of high-quality liquid assets. These strengths are offset by elevated nonperforming assets versus those of peers; a geographically concentrated loan portfolio with large single-name exposures; and large capital returns to shareholders on several occasions in the past decade. Outlook The stable outlook reflects S&P's expectation that over our two-year outlook horizon, HBBM will maintain its strategic importance to the HSBC group, as a fully owned subsidiary sharing the parent's name, making it likely to receive group support in most foreseeable circumstances if needed. S&P said, "We also expect HBBM to maintain its very strong RAC ratio--without paying any outsize dividends to the parent that would cause the ratio to fall very sharply or below 15%. We believe the bank's high capital levels and good efficiency should help it maintain a SACP of 'bbb-', even as it copes with higher loan losses than peers." Downside scenario. S&P said, "We could lower the ratings--by reducing or eliminating the three group support notches we incorporate in them--if we believe the group's proclivity to support its Bermudian operations will meaningfully decline. For instance, that could occur if there was an indication that its parent, HSBC Holdings PLC (HSBC; A-/Stable/A-2), intended to exit Bermuda. We would also lower the ratings on the bank if we lowered our group SACP (a) and ratings on HSBC. "In addition, we could lower the ratings if the bank's SACP weakens. That could occur if HSBC extracts substantial dividends from the bank, particularly while credit losses spike." Upside scenario. S&P views the probability of an upgrade as very low because it would require either higher group status than strategically important or both a higher bank SACP and group SACP. That's because it caps the ratings on strategically important subsidiaries one notch below the SACPs of their groups. RATINGS LIST BANK OF MONTREAL RATINGS AFFIRMED BANK OF MONTREAL BANK OF MONTREAL EUROPE PLC Issuer Credit Rating A+/Stable/A-1 BANK OF MONTREAL, CHICAGO BRANCH BMO CAPITAL MARKETS CORP. Issuer Credit Rating A-1 BANK OF N.T. BUTTERFIELD & SON LTD. RATINGS AFFIRMED BANK OF N.T. BUTTERFIELD & SON LTD. Issuer Credit Rating BBB+/Stable/A-2 BANK OF NOVA SCOTIA (THE) RATINGS AFFIRMED BANK OF NOVA SCOTIA (THE) BANK OF NOVA SCOTIA AUSTRALIA BRANCH Issuer Credit Rating A+/Stable/A-1 CANADIAN IMPERIAL BANK OF COMMERCE RATINGS AFFIRMED CANADIAN IMPERIAL BANK OF COMMERCE Issuer Credit Rating A+/Stable/A-1 DESJARDINS GROUP RATINGS AFFIRMED FEDERATION DES CAISSES DESJARDINS DU QUEBEC Issuer Credit Rating A+/Stable/A-1 CAPITAL DESJARDINS INC. Issuer Credit Rating A+/Stable/-- HSBC HOLDINGS PLC RATINGS AFFIRMED HSBC BANK BERMUDA LTD. Issuer Credit Rating A-/Stable/A-2 HSBC BANK CANADA Issuer Credit Rating A+/Stable/A-1 HOME CAPITAL GROUP INC. RATINGS AFFIRMED HOME CAPITAL GROUP INC. Issuer Credit Rating BB-/Stable/B HOME TRUST CO. Issuer Credit Rating BB+/Stable/B LAURENTIAN BANK OF CANADA RATINGS AFFIRMED LAURENTIAN BANK OF CANADA Issuer Credit Rating BBB/Stable/A-2 MANULIFE FINANCIAL CORP. RATINGS AFFIRMED MANULIFE BANK OF CANADA Issuer Credit Rating Local Currency A+/Stable/A-1 NATIONAL BANK OF CANADA RATINGS AFFIRMED NATIONAL BANK OF CANADA Issuer Credit Rating A/Stable/A-1 ROYAL BANK OF CANADA RATINGS AFFIRMED ROYAL BANK OF CANADA ROYAL TRUST CO. (THE) RBC USA HOLDCO CORP. RBC INVESTOR SERVICES TRUST RBC INVESTOR SERVICES BANK S.A. RBC DOMINION SECURITIES INC. RBC CAPITAL MARKETS LLC Issuer Credit Rating AA-/Stable/A-1+ CITY NATIONAL BANK BEVERLY HILLS Issuer Credit Rating A+/Stable/A-1 ROYAL TRUST CORP. OF CANADA Issuer Credit Rating AA-/Stable/-- TORONTO-DOMINION BANK RATINGS AFFIRMED TORONTO-DOMINION BANK TD SECURITIES (USA) LLC TD BANK N.A. Issuer Credit Rating AA-/Stable/A-1+ TD BANK US HOLDING CO. Issuer Credit Rating AA-/Stable/-- HRNI HOLDINGS: Fitch Assigns Final 'B' LT IDR, Outlook Stable ------------------------------------------------------------- Fitch Ratings has assigned HRNI Holdings, LLC (HRNI, fka Spectacle Gary Holdings, LLC) a final Long-Term Issuer Default Rating (IDR) of 'B'. Fitch has also assigned a final 'B+'/'RR3' rating to HRNI's $415 million senior secured term loan B. The Rating Outlook is Stable. HRNI's IDR reflects its 'b-' Standalone Credit Profile (SCP) with a one-notch uplift related to its relationship with Seminole Hard Rock Entertainment, Inc. (BBB/Stable) and Seminole Hard Rock International, LLC (BBB/Stable) collectively SHRE. HRNI's SCP reflects its single-site nature and conservative gross leverage. However, Fitch expects gross leverage to increase to 5.0x-5.5x due to multiple competitive openings in the Chicagoland market. The one-notch uplift to the IDR from HRNI's SCP is pursuant to Fitch's Parent and Subsidiary Linkage Rating Criteria and reflects the entity's linkage to SHRE, which Fitch considers to be a stronger parent. SHRE indirectly owns 76% of HRNI. KEY RATING DRIVERS Moderate Leverage to Increase: Fitch calculates pro forma gross leverage (total debt/EBITDA) of 4.4x, which should decline toward 4.0x by 2022. This is strong in the context of the SCP, but will increase in the medium term due to cannibalization from competitive openings in the Chicagoland market. Fitch expects strong FCF for HRNI's single-site property in the near term due to good EBITDA generation, manageable interest expense and minimal required maintenance capex. This should help near-term delevering. Competitive Pressure: HRNI will be subject to multiple new competitive properties, including a casino in Chicago's south suburban area estimated by 2024 and in downtown Chicago estimated by 2026. The state is considering proposals for both sites, with multiple well-capitalized operators vying for the licenses. The additional supply will affect existing properties in Chicagoland, including HRNI, given the close proximity to Gary, Indiana. Fitch expects the south suburban and downtown licenses to negatively impact HRNI's cash flow and leverage, although this should be manageable. Fitch forecasts a high-teen percentage revenue decline in 2024 following the opening of the south suburban casino. Fitch's base case does not forecast this casino to meaningfully expand the total addressable gaming market due to Chicagoland's existing casinos and video lottery terminals. Pro forma leverage is likely to exceed 5.0x, assuming a roughly 50% flow-through to EBITDA, which is more consistent with a 'b-' SCP for the standalone property. Longer-Term Risk from Downtown License: Fitch looks through this competitive opening to evaluate the long-term credit risk for HRNI, due to the likely impact it will have on the marketplace and on HRNI's metrics. Similarly to the south suburban license, Fitch's base case does not contemplate meaningful growth to the overall addressable market and assumes significant cannibalization from all Chicagoland casinos. Fitch forecasts HRNI's leverage to remain in the 5.0x-5.5x range, assuming a 10%-15% revenue cannibalization for HRNI and similar flowthrough as the south suburban competitive opening. Lack of Diversification: HRNI operates a single property in a competitive market that is subject to new supply risk, limiting rating upside as future cash flow generation will be challenged. Most single-site operators are rated in the single 'B' category unless there are unique end-market dynamics. These include monopolistic positions, being a clear market leader, or having a conservative balance sheet. HRNI's geographic concentration offsets decent pro forma leverage and credit metrics. Good Initial Performance: The property opened in May 2021 and has taken incremental market share away from nearby competitors in addition to the legacy Majestic Star share. HRNI has mid-teen percentage market share in Indiana and a similar share in the broader Chicagoland market. Hard Rock is the newest property opening in nearly a decade and has benefited from its proximity to the highway, brand recognition, and favorable regional gaming trends. Current win-per-day metrics are trending above area averages, at over $400 and $3,000 for slots and tables, respectively. Solid Chicagoland Performance: Regional gaming performance has been strong in 2021, with most markets recovering to 2019 revenue levels. This is largely due to pent-up demand, a lack of reliance on fly-in visitation, and strong consumer discretionary spend. Regional gaming has been a bright spot in overall leisure and entertainment spend, and Fitch forecasts growth over 2019 levels through to 2022. The Chicagoland area has also performed well, with annualized revenue slightly above full-year 2019, trending towards $2.0 billion in GGR for the entire market. SHRE Relationship Positive: Fitch believes HRNI's association with SHRE warrants a one-notch uplift from HRNI's SCP due to management and brand overlap. Fitch considers SHRE as a stronger parent based on its underlying SCP, which is consistent with 'b+' pro forma for SHRE's purchase of the Mirage from MGM Resorts. SHRE's 'BBB' IDR is attributed to the guarantee of its debt by Seminole Tribe of Florida (STOF; BBB/Stable). However, Fitch believes SHRE has weak legal and strategic incentives to support HRNI, as there is no downstream guarantee and HRNI make a low financial contribution relative to SHRE's broader complex. Fitch's assessment of moderate operational incentives recognizes that HRNI shares common executive management with SHRE, is part of SHRE's broader 'Unity' player rewards program, and that its property is part of SHRE's regional gaming expansion aspirations. SHRE owns 76% of HRNI and controls a majority of its board of directors. SHRE has also supported the entity through equity injections in 2021 when it took majority control following the prior majority owner's (Spectacle Entertainment Group) licensing issues with state regulators. DERIVATION SUMMARY HRNI's SCP is consistent with most other single-site gaming operators, including Empire Resorts Inc. (B+/Stable; SCP: b-) and Enterprise Development Authority (EDA; B+/Negative). HRNI has similar end-market dynamics as the two peers, including competitive operating environments with new supply risk, single-site properties, and similar cash flow generation. HRNI's leverage and profitability is weaker than its similar Hard Rock branded peer in Sacramento, EDA, especially given the pending casino openings in Chicagoland through 2026. HRNI is considered weaker than its larger, more geographically diversified regional gaming peers, including Bally's Corporation (B+/Stable), Great Canadian Gaming Corporation (B+/Stable), and MGM Resorts International (BB-/Rating Watch Negative). These peers have similar-to-slightly higher leverage profiles, but much stronger FCF generation and are well diversified. KEY ASSUMPTIONS -- Slot and table win-per-day remaining stable through 2022, slightly above the Chicagoland average. GGR to rise by low single digits in 2022 and 2023, supported by solid initial performance and Chicagoland already experiencing a full recovery above pre-pandemic levels; -- A competitive south suburban Chicago casino opens in 2024, negatively affecting HRNI. Fitch expects 19% cannibalization to revenue with a roughly 50% flowthrough to EBITDA; -- A second competitive casino opens in 2026 in downtown Chicago. Fitch expects an additional 15% decline in gaming revenue, and a similar flowthrough; -- EBITDA margin to decline over the long term from the strong initial performance due to competitive openings, expiration of tax holidays and increasing management fees; -- Deleveraging ahead of the competitive openings to be driven through amortization (5% a year) and some degree of voluntary debt paydown (potentially through an excess cash flow sweep), but Fitch expects leverage to rise from 2024 due to cannibalization; -- Capex limited to maintenance beyond 2021; -- No shareholder distributions or acquisitions. KEY RECOVERY RATING ASSUMPTIONS The recovery analysis assumes HRNI would be reorganized as a going-concern in bankruptcy rather than liquidated. Fitch has assumed a 10% administrative claim and full draw on the $35 million revolver. The current recovery ratings contemplate $500 million of secured debt claims. Going-concern EBITDA of $55 million reflects a sustainable level of operating performance following a restructuring scenario stemming from severe competitive pressures due to new competitive openings. Though Fitch already expects some level of cannibalization in its base case, Fitch's recovery scenario envisions a greater degree of cannibalization and outsized impact to gaming metric performance. Going-concern EBITDA assumes a level of win-per-unit-per-day of slots and tables of $300 and $2,000, respectively, which is well below the current average in the Chicagoland market and below where the casino is trending; about $430 and $3,000. Fitch expects non-gaming revenues to remain around 10% of total property revenue. Fitch applies a 6.0x enterprise value/EBITDA multiple, which reflects the competitiveness of the Chicagoland market and new supply risk, and the property's limited operating record. It also reflects the single-site limitations of the credit. The 6.0x multiple is in line with comparable regional gaming peers. The quality of the property and healthy initial performance help to offset these concerns. Fitch forecasts a post-reorganization enterprise value of roughly $330 million. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- Greater degree of confidence that gross debt/EBITDA will remain below 5.0x and the FCF margin will exceed 10% amid the competitive pressures in the greater Chicago area; -- An increase in rating linkage with SHRE; -- Geographic diversification away from the Chicagoland market. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Gross debt/EBITDA sustaining above 7.0x; -- FCF approaching breakeven; -- Decrease rating linkage with SHRE or weakening of SHRE's SCP. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. LIQUIDITY AND DEBT STRUCTURE Liquidity is adequate between operational cash and $25 million in availability on its $35 million revolver. Cash flow generation is sufficient to cover debt service and a small amount of maintenance capex annually. Fitch expects FCF margins to be in the mid-teen range in 2022 and 2023, prior to the competitive openings, and to fall to a single-digit percent longer term. HRNI refinanced its prior debt with a new secured capital structure, in the form of a $35 million super senior secured revolver due 2026 ($10 million drawn at close) and a $415 million senior secured term loan B due 2028. ISSUER PROFILE HRNI is the owner and operator of Hard Rock Casino Northern Indiana. SHRE indirectly owns 76% of HRNI and is, in turn, fully owned by STOF. I-70 PROPERTIES: Seeks to Hire Stumbo Hanson LLP as Legal Counsel ----------------------------------------------------------------- I-70 Properties, LLC seeks approval from the U.S. Bankruptcy Court for the District of Kansas to employ Stumbo Hanson, LLP as its legal counsel. Stumbo Hanson will render these legal services: (a) advise the Debtor regarding its powers and duties in the continued operation and management of its property; (b) prepare legal papers; and (c) perform all other legal services for the Debtor. Stumbo Hanson received a retainer of $15,000 from the Debtor. The hourly rates of counsel and staff are as follows: Tom R. Barnes II $300 Todd A. Luckman $300 Lee W. Hendricks $300 Tiffany Thomas $200 Other Associates $200 Law Clerks $85 In addition, the firm will seek reimbursement for expenses incurred. To the best of the Debtor's knowledge, the firm has no connection with the Debtor's creditors, or any other party-in-interest, or their attorneys and it represents no interest adverse to the estate. The firm can be reached through: Tom R. Barnes II, Esq. Stumbo Hanson, LLP 2887 S.W. MacVicar Ave. Topeka, KS 66611 Telephone: (785) 267-3410 Facsimile: (785) 267-9516 Email: tom@stumbolaw.com About I-70 Properties I-70 Properties, Inc. filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Kan. Case No. 21-40768) on Dec. 13, 2021. Connie L. Seymour, managing member, signed the petition. At the time of the filing, the Debtor disclosed up to $50,000 in assets and $1 million to $10 million in liabilities. Tom R. Barnes II, Esq., at Stumbo Hanson, LLP serves as the Debtor's counsel. KURNCZ FARMS: U.S. Trustee Appoints Creditors' Committee -------------------------------------------------------- The U.S. Trustee for Regions 3 and 9 appointed an official committee to represent unsecured creditors in the Chapter 11 case of Kurncz Farms, Inc. The committee members are: 1. Caledonia Farmers Elevator Co., Inc. Attn: Chad J. Chambers 146 E. Main Street SE Caledonia, MI 49316 Phone: (616) 891-8108 E-mail: cchambers@cfeco.com. 2. Clinton Veterinary Service Attn: Dr. Justin Hess 4553 E. Centerline Road St. Johns, MI 48879 Phone: (517) 449-0062 E-mail: jphessjp@gmail.com. 3. Quality Liquid Feeds Attn: Cory Berg 3586 State Road 23 North Dodgeville, WI 53533 Phone: (608) 935-2345 E-mail: cory@qlf.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 Kurncz Farms Inc. Kurncz Farms, Inc. is part of the cattle ranching and farming industry. The company is based in Saint Johns, Mich. Kurncz Farms sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Mich. Case No. 21-02612) on Nov. 30, 2021, listing as much as $10 million in both assets and liabilities. Peter J. Kurncz, president of Kurncz Farms, signed the petition. Susan M. Cook, Esq. at Warner Norcross and Judd, LLC is the Debtor's legal counsel. The U.S. Trustee for Region 17 appointed an official committee of unsecured creditors in the Debtor's case on Nov. 22, 2021. The committee is represented by Shulman Bastian Friedman & Bui, LLP. LATAM AIRLINES: Seeks to Increase PJT's Fee Cap to $37-Mil. ----------------------------------------------------------- LATAM Airlines Group S.A. and its affiliates seek approval from the U.S. Bankruptcy Court for the Southern District of New York to modify the terms of retention of PJT Partners LP. In their supplemental application, the Debtors propose to increase the investment banker's fee cap to $37 million from $25 million. To date, PJT's fees have already exceeded the existing $25 million cap. The firm, however, is not seeking to be paid anything above the $25 million cap until a restructuring actually occurs. Thus, the difference between the current $25 million cap and the increased $37 million cap (or $12 million) would only be payable to PJT upon the consummation of a restructuring, according to the court filing. PJT Partners can be reached through: Timothy R. Coleman PJT Partners LP 280 Park Avenue New York, NY 10017 Phone: +1 212-364-7800 About LATAM Airlines Group LATAM Airlines Group S.A. -- http://www.latam.com/-- is a pan-Latin American airline holding company involved in the transportation of passengers and cargo and operates as one unified business enterprise. It is the largest passenger airline in South America. Before the onset of the COVID-19 pandemic, LATAM offered passenger transport services to 145 different destinations in 26 countries, including domestic flights in Argentina, Brazil, Chile, Colombia, Ecuador and Peru, and international services within Latin America as well as to Europe, the United States, the Caribbean, Oceania, Asia and Africa. LATAM and its 28 affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 20-11254) on May 25, 2020. Affiliates in Chile, Peru, Colombia, Ecuador and the United States are part of the Chapter 11 filing. The Debtors disclosed $21,087,806,000 in total assets and $17,958,629,000 in total liabilities as of Dec. 31, 2019. The Hon. James L. Garrity, Jr., is the case judge. The Debtors tapped Cleary Gottlieb Steen & Hamilton LLP as bankruptcy counsel, FTI Consulting as restructuring advisor, Lee Brock Camargo Advogados as local Brazilian litigation counsel, and Togut, Segal & Segal LLP and Claro & Cia in Chile as special counsel. The Boston Consulting Group, Inc. and The Boston Consulting Group UK LLP are the Debtors' strategic advisors while PJT Partners LP serve as their investment banker. Prime Clerk, LLC is the claims agent. The official committee of unsecured creditors formed in the case tapped Dechert LLP as its bankruptcy counsel, Klestadt Winters Jureller Southard & Stevens, LLP as conflicts counsel, UBS Securities LLC as investment banker, and Conway MacKenzie, LLC as financial advisor. Ferro Castro Neves Daltro & Gomide Advogados is the committee's Brazilian counsel. The ad hoc group of LATAM bondholders tapped White & Case LLP as counsel. Glenn Agre Bergman & Fuentes, LLP, led by managing partner Andrew Glenn and partner Shai Schmidt, has been retained as counsel for the ad hoc committee of shareholders. LINDEN CAB CORP.: Case Summary & One Unsecured Creditor ------------------------------------------------------- Debtor: Linden Cab Corp. 4310 39th St Sunnyside, NY 11104-4302 Chapter 11 Petition Date: December 17, 2021 Court: United States Bankruptcy Court Eastern District of New York Case No.: 21-43109 Judge: Jil Mazer-Marino Debtor's Counsel: Alla Kachan Law Offices Of Alla Kachan P.C. Tel: 718-513-3145 E-mail: alla@kachanlaw.com Scheduled Assets: $447,708 Estimated Liabilities: $1,379,562 The petition was signed by Mitchell Cohen, president. List of Creditors Who Have the 20 Largest Unsecured Claims and Are Not Insiders: Entity Nature of Claim Claim Amount ------ --------------- ------------ PenFed Credit Union NYC Taxi 131 33rd Street, 7th Floor Medallions New York, NY 10001 #7L41, 7L42 $938,562 A copy of the Debtor's list of one unsecured creditor filed together with the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/DV7BVGA/Linden_Cab_Corp__nyebke-21-43109__0001.0.pdf?mcid=tGE4TAMA MAUI MEADOWS: Taps Gina Duncan of Fine Island Properties as Broker ------------------------------------------------------------------ Maui Meadows Management, LLC seeks approval from the U.S. Bankruptcy Court for the District of Hawaii to hire Gina Duncan, principal broker at Fine Island Properties. The Debtor requires the services of a broker in connection with the sale of its property located at 575 Linekona Place, Wailuku, Hawaii. The broker's commission is $33,600 or 6 percent of the sale price, which is $560,000. Ms. Duncan disclosed in a court filing that she does not have connection with the Debtor, creditors or any other party in interest. Fine Island Properties can be reached at: Gina Duncan Fine Island Properties 275 W. Kaahumanu Ave., Suite 189 Kahului, HI 96732 Phone: 808-250-9858 About Maui Meadows Management Maui Meadows Management, LLC, a company based in Kihei, Hawaii, filed a petition for Chapter 11 protection (Bankr. D. Hawaii Case No. 21-01129) on Dec. 14, 2021, listing as much as $10 million in both assets and liabilities. Steven Michael Warsh, manager, signed the petition. Judge Robert J. Faris oversees the case. Michael J. Collins, Esq., at Cain & Herren, ALC is the Debtor's legal counsel. MD AND SD LLC: Case Summary & One Unsecured Creditor ---------------------------------------------------- Debtor: MD and SD LLC 1065 Lee Street Des Plaines, IL 60016 Chapter 11 Petition Date: Dec. 20, 2021 Court: United States Bankruptcy Court Northern District of Illinois Case No.: 21-14376 Judge: Janet S. Baer Debtor's Counsel: Paul M. Bach Bach Law Offices Tel: 847-564-0808 E-mail: paul@bachoffices.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Michael A. Difatta, managing member. List of Creditors Who Have the 20 Largest Unsecured Claims and Are Not Insiders: Entity Nature of Claim Claim Amount ------ --------------- ------------ Illinois Department Disputed $0.00 Of Revenue (Bankr. Section) 100 W. Randolph Street Chicago, IL 60606 A copy of the Debtor's list of one unsecured creditor filed together with the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/RL3OW2Y/MD_and_SD_LLC__ilnbke-21-14376__0001.0.pdf?mcid=tGE4TAMA MONROE COMMUNITY: S&P Affirms 'BB+' Rating on 2014A Revenue Bonds ----------------------------------------------------------------- S&P Global Ratings revised its outlook to stable and affirmed its 'BB+' long-term rating on Monroe County Industrial Development Corp., N.Y.'s series 2014A revenue bonds, issued on behalf of Monroe Community College Association Inc. (MCCA). "The outlook revision to stable is based on our view of MCCA's better-than-expected fiscal 2021 coverage of 1.26x, coupled with positive operations based on anticipated fall 2022 enrollment and following projected softer financials and coverage in fiscal 2022, which will benefit from strong support from Monroe Community College to make up projected shortfalls and remain in compliance with covenants and post-annual coverage of 1.2x," said S&P Global Ratings credit analyst Brian Marshall. The outlook revision also reflects our favorable view of MCCA's reserve levels and good relationship with Monroe Community College. S&P said, "The college transitioned to remote learning to protect the health and safety of students, and to limit the community spread of the coronavirus. We view the risks posed by the pandemic to public health and safety as a social risk under our environmental, social, and governance factors. Despite the elevated social risk, we believe the project's environmental and governance risk are in line with our view of the sector as a whole. "We could lower the rating if occupancy doesn't rebound following projected improvement in fall 2022 and if available reserves fall materially from current levels due to continued occupancy pressures beyond fall 2021, such that a draw on available funds is necessary, leaving little cushion for additional pressures. "We could raise the rating following a trend of sustained solid occupancy and cash flows comparable to those of higher-rated peers while meeting covenants and debt service payments on an ongoing basis." NEW CREATION: U.S. Trustee Unable to Appoint Committee ------------------------------------------------------ The U.S. Trustee for Region 2 on Dec. 20 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of New Creation Fellowship of Buffalo. About New Creation Fellowship of Buffalo New Creation Fellowship of Buffalo, a tax-exempt religious organization in Cheektowaga, N.Y., filed its voluntary petition for Chapter 11 protection (Bankr. W.D.N.Y. Case No. 21-11127) on Nov. 10, 2021, listing up to $10 million in assets and up to $1 million in liabilities. Stephen J. Andzel, the Debtor's principal, signed the petition. Judge Carl L. Bucki oversees the case. Arthur G. Baumeister, Jr., Esq., at Baumeister Denz, LLP represents the Debtor as legal counsel. OLYMPIC RESTAURANTS: Court Confirms Plan ---------------------------------------- Judge Arthur I. Harris has entered an order confirming the Plan of Olympic Restaurants LLC. Olympic Restaurants LLC submitted a Plan of Reorganization. This Plan of Reorganization under chapter 11 of the Bankruptcy Code proposes to pay creditors of the Debtor from the future cash flow of its business operations, financial relief payments, and possibly the sale of its operations as a going concern. Non-priority unsecured creditors holding allowed claims will receive distributions over the which the Debtor has valued at approximately 100 cents on the dollar. Class 3 – General Unsecured Claims. Allowed unsecured claims will be paid annually pro-rata from the Debtor's Projected Disposable Income, after and subject to the payment of Administrative Expenses and Priority Tax Claims, and payment to all other Classes. No interest shall accrue on any Claims in this Class. Class 3 is impaired. Counsel to Debtor and Debtor-in-Possession: Frederic P. Schwieg Attorney at Law. 19885 Detroit Rd. #239 Rocky River OH 44116-3008 1 (440) 499-4506 fschwieg@schwieglaw.com A copy of the Order dated December 8, 2021, is available at https://bit.ly/3pJJm9J from PacerMonitor.com. About Olympic Restaurants Olympic Restaurants LLC is a Greek restaurant based in Solon, Ohio, which conducts business under the name Simply Greek. Olympic Restaurants sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ohio Case No. 20-14537) on Oct. 8, 2020. At the time of the filing, Debtor had estimated assets and liabilities of less than $50,000. Judge Arthur I. Harris oversees the case. Frederic P. Schwieg Attorney at Law is the Debtor's legal counsel. PLAYPOWER HOLDINGS: S&P Places 'B-' ICR on CreditWatch Negative --------------------------------------------------------------- S&P Global Ratings placed all ratings on PlayPower Holdings Inc., including the 'B-' issuer credit rating, on CreditWatch with negative implications. S&P said, "We plan to resolve the CreditWatch over the next few months, with the outcome largely dependent on the pace of PlayPower's cash flow recovery. If its ongoing cash burn depletes liquidity such that we expect the company will need to seek external sources of funding, we could lower the rating by one or more notches. "The CreditWatch reflects the possibility that we could lower ratings if PlayPower's liquidity position continues to deteriorate." Demand for PlayPower's recreational equipment has been good through the pandemic, but its ability to fill orders in 2021 has been limited by a fire at a key production facility in May and a disruptive plant consolidation. As a result of these supply chain disruptions, PlayPower has accrued around $170 million of backlog at the end of third-quarter 2021, which is around 40% higher than the previous year. Additionally, inflation in labor, raw materials, and freight in 2021 have been significant. Although PlayPower has successfully passed through price increases in recent North American equipment orders, expected shipping delays will create a lag between realized pricing increases and material cost inflation that will hurt margins. S&P said, "As a result, we expect that PlayPower will burn cash through the fourth quarter and around $40 million in aggregate of free cash flow in 2021. Our understanding is that PlayPower's manufacturing volumes are improving, but that it will not return to full capacity until at least the first quarter of 2022. Additionally, margins should begin to improve as it fills lower priced orders in its backlog. As a result of manufacturing capacity improvements, and progress in fulfilling higher priced orders, we expect that the company could ramp toward positive cash flow by the end of the first-quarter 2022. "At the end of third-quarter 2021, PlayPower reported that it had about $28.3 million of available cash on hand, in addition to $15.8 million of undrawn revolver availability. PlayPower's ability to draw on the revolver is constrained by its total net leverage covenant, which the company would violate if it draws more than 35% of the revolver commitment, triggering a covenant test. While PlayPower executes on its operational recovery plan over the next few months, its anticipated available sources of liquidity will be thin, and the company could become vulnerable to unforeseen setbacks that could cause a liquidity shortfall. "Under our current base case set of assumptions, PlayPower could report 2022 results that drive credit measures that are good for the current rating. We currently expect that improved manufacturing capacity, in addition to continued good demand for recreational equipment (supported by the order backlog), could drive revenue growth of around 30% in 2022 compared with 2021. Additionally, we expect that EBITDA margins in 2022 could expand modestly compared with 2021 but remain below historical levels as the company contends with continued inflationary cost pressures in labor, raw materials, and freight. As a result, we currently expect that PlayPower could reduce its leverage to around 6x-7x and improve EBITDA coverage of interest expense to around 2x-2.5x in 2022." PlayPower is reliant on municipalities' ability to fund discretionary playground equipment spending, which can be impaired during periods of economic weakness. Reliance on municipal budgets can mean limited demand visibility because playground equipment can have a long replacement cycle. In addition, playground equipment purchases can be deferred to prioritize other areas of government spending when municipal budgets contract. S&P believes customer concentration in municipalities can be partly offset by acquisitions that are exposed to commercial customers. There are several other business and financial considerations that S&P incorporates into the PlayPower rating: -- The playground equipment market is highly competitive and fragmented. -- Risks of EBITDA margin compression in a weak operating environment due to the company's fixed cost base and small scale compared to other leisure companies, despite cost synergies and manufacturing improvements that were realized over the past few years. -- Currency risk associated with European operations. -- Control by a financial sponsor, which translates into sustained anticipated highly leveraged financial risk. -- These risks are partly offset by PlayPower's leading position in various playground equipment, shading structure, and outdoor equipment markets, as well as some geographic diversity from European operations. -- S&P plans to resolve the CreditWatch over the next few months, with the outcome largely dependent on the pace of PlayPower's cash flow recovery. If its ongoing cash burn depletes liquidity such that it expects the company will need to seek external sources of funding, it could lower the rating by one or more notches. The company has a 7.25x total net leverage covenant that springs when its revolver is more than 35% drawn. As of Sept. 30, 2021, PlayPower's credit agreement measure of leverage was greater than the covenant maximum, restricting its ability to draw on the revolver to $15.8 million before it would be required to test. Under S&P's current base case set of assumptions, it expects that PlayPower's leverage could be in compliance with covenants by the third quarter of 2022. PURSUE PHARMA: Judge McMahon Rejects Sackler Family Releases ------------------------------------------------------------ Jonathan Randles at The Wall Street Journal reports OxyContin maker Purdue Pharma LP spent years building a restructuring plan to settle thousands of lawsuits and deliver funding to combat the opioid crisis. That plan is in limbo after a federal judge ruled that a deal the company struck with its owners isn't allowed under the law. After U.S. District Judge Colleen McMahon's surprise ruling last week overturning a roughly $4.5 billion settlement between the OxyContin maker and members of the Sackler family who own the company, Purdue, once on the verge of settling an onslaught of lawsuits over its flagship opioid painkiller, will remain in bankruptcy court as it attempts to salvage a settlement that took years and hundreds of millions of dollars to craft. Billions of dollars that Purdue and the family had agreed to pay are now on hold, jeopardizing payouts expected by the people injured by OxyContin overuse and for programs to combat the worsening opioid epidemic. The company so far has spent more than $548 million in fees for lawyers, and other professionals advising the company and creditor groups, according to court papers filed earlier this month. Purdue said in papers filed Monday in the U.S. Bankruptcy Court in White Plains, N.Y., that although Judge McMahon's ruling is a "significant setback," the company believes it has a good chance to win on an appeal. The company asked a bankruptcy judge to extend to February a preliminary injunction that has paused thousands of civil lawsuits against the company and members of the Sackler family during the chapter 11 case as it pursues an appeal. The settlement between the Sacklers and Purdue, which filed for bankruptcy in September 2019, was part of a complex set of agreements between the company, states and other creditor groups that supporters said delivered as much money as possible to combat the opioid crisis and averted costly disputes over how the money would be allocated to various groups. But the settlement included legal releases that would have shielded Sackler family members from pending and future opioid-related lawsuits, a sticking point that lead a handful of federal and state authorities to challenge the settlement in Judge McMahon's court. A bankruptcy judge in White Plains, N.Y., approved the settlement earlier this year. Purdue has said it would appeal Judge McMahon's ruling to the Second U.S. Circuit Court of Appeals, a process that is likely to take several months. Whether Purdue is able to convince the appeals court that Judge McMahon's decision was wrong will depend on how the appeals court interprets the extent to which companies can extend the power of bankruptcy to resolve lawsuits. Judge McMahon said Purdue's plan was based on the idea that the company through chapter 11 could provide its owners with legal releases, an assumption she said was incorrect and not permitted by the bankruptcy code. Judge McMahon said her decision to invalidate the settlement "will almost certainly lead to the undoing of a carefully crafted plan that would bring about many wonderful things, including especially the funding of desperately needed programs to counter opioid addiction." Purdue said the court's determination that such releases aren't permitted by the bankruptcy code "contravenes 33 years of controlling authority in the Second Circuit." Such releases, known as nonconsensual releases of third parties, have been controversial because they benefit individuals who haven't filed for bankruptcy protection themselves and can be imposed on parties even when they are opposing a deal. In Purdue's case, the opposing group—attorneys general from Washington, California, Connecticut, Maryland and a few other states—would have had their civil enforcement claims against Sackler family members extinguished even though these states didn't support the reorganization plan. In response to the Purdue settlement, Congressional Democrats introduced legislation earlier this year to ban such releases. These types of releases have increasingly become a common feature of large corporate bankruptcies. Supporters say they are a critical legal tool in chapter 11 to deliver as much compensation as possible to people injured by defective products and survivors of sexual abuse. Days before Judge McMahon's ruling, a bankruptcy judge in Indianapolis approved a similar release in a $380 million bankruptcy settlement between USA Gymnastics, the U.S. Olympic & Paralympic Committee, insurers and sexual-abuse victims of longtime national team physician Larry Nassar. In Purdue's case, Judge McMahon acknowledged the time and work that has gone into the settlement, saying it was unfortunate her ruling came down years after Purdue filed for chapter 11 in 2019. But Judge McMahon said Purdue and supporters of the plan worked off a faulty assumption that the law permitted these types of releases "despite the language of the bankruptcy code and the lack of any clear ruling to that effect." "I am sure that the last few years would have proceeded in a very different way if the parties had thought otherwise," Judge McMahon said. "But that is why the time to resolve this question for once and for all is now—for this bankruptcy, and for the sake of future bankruptcies." Judge McMahon said her ruling won't be the last word on the releases and said the appeals court should weigh in on the issue. Purdue Chairman Steve Miller said the ruling "will delay and perhaps end" the company's ability to deliver billions of dollars in funding to combat the opioid epidemic and compensate victims. The company said the reorganization plan, which was supported by most states and groups representing the interests of opioid victims and other creditors, was the culmination of a collaborative process with governments, creditors and representatives for opioid victims. "These funds are needed now more than ever as overdose rates hit record-highs, and we are confident that we can successfully appeal this decision and deliver desperately needed funds to the communities and individuals suffering in the midst of this crisis," Mr. Miller said last week. SN MANAGEMENT: Gets OK to Hire Frank & Frank as Legal Counsel ------------------------------------------------------------- SN Management, LLC received approval from the U.S. Bankruptcy Court for the Eastern District of Michigan to hire Frank & Frank, PLLC to serve as legal counsel in its Chapter 11 case. Jerome Frank, Esq., and Tami Salzbrenner, Esq., are the firm's principal attorneys who will be providing the services. Mr. Frank and Ms. Salzbrenner will charge $390 per hour and $200 per hour, respectively. The attorneys will also seek reimbursement for work-related expenses. As of Dec. 15, the firm has received a retainer in the amount of $7,000. The retainer was used to pay debts owing to the firm in the amount of $2,662 and the filing fee of $1,738, leaving a retainer balance of $2,600. Mr. Frank, a member and manager of Frank & Frank, disclosed in a court filing that he is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Frank & Frank can be reached at: Jerome D. Frank, Esq. Tami R. Salzbrenner, Esq. Frank & Frank, PLLC 30833 Northwestern Hwy. Suite 205 Farmington Hills, MI 48334 Phone: (248) 932-1440 Fax: (248) 932-1443 Email: mfrank@frankfirm.com tami@frankfirm.com About SN Management SN Management, LLC, a company based in Trenton, Mich., filed a petition for Chapter 11 protection (Bankr. E.D. Mich. Case No. 21-49033) on Nov. 17, 2021. Dr. Iqbal Nasir, managing member, signed the petition. As of Dec. 31, 2020, the Debtor had total assets of $4,253,276 and total debts of $5,255,675. Jerome D. Frank, Esq., and Tami R. Salzbrenner, Esq., at Frank & Frank, PLLC are the Debtor's bankruptcy attorneys. STRIKE LLC: U.S. Trustee Appoints Creditors' Committee ------------------------------------------------------ The U.S. Trustee for Region 7 appointed an official committee to represent unsecured creditors in the Chapter 11 cases of Strike, LLC and its affiliates. The committee members are: 1. Mears Group, Inc. Attn: Steve Wilhelm 1606 Eastport Plaza Drive, Suite 110 Collinsville, IL 62234 Tel: 618-407-1616 E-mail: steve.wilhelm@quantaservices.com Counsel for Member: Vorys, Sater, Seymour and Pease LLP Tiffany Strelow Cobb, Esq. 52 East Gay Street Columbus, OH 43215 Office: 614-464-8322 Mobile: 614-204-0575 Fax: 614-719-4663 E-mail: tscobb@vorys.com Vorys, Sater, Seymour and Pease LLP Steven R. Rech, Esq. 909 Fannin, Suite 2700 Houston, TX 77010 2. Ardent Services, LLC Attn: James A. Heurtin/Laura Hotard 170 New Camellia Blvd., Suite 200 Covington, LA 70433 Tel: 985-792-3000 Fax: 985-792-3001 E-mail: josteicoechea@ardent.us jim.heurtin@ardent.us lhotard@emcoris.net Counsel for Member: Laura Hotard, Esq. 2450 South Shore Blvd., Suite 215 League City, TX 77573 Tel: 832-861-5965 E-mail: lhotard@emcoris.net 3. Jones Transport, LLC Attn: Jay Johnson 6184 Hwy 98 W, Suite 210 Hattiesburg, MS 39402 Tel: 800-956-1151 E-mail: jay.johnson@jolo.com 4. CBK Transport, LLC Attn: Ben Fleming 28130 Ascot Farms Rd. Magnolia, TX 77354 Tel: 601-402-8212 E-mail: ben.fleming@cbktransport.com 5. Aspen American Insurance Company c/o Amynta Surety Solutions Attn: Jose Aguiar 855 Winding Brook Dr. Glastonbury, CT 06033 Tel: 860-956-3427 E-mail: joe.aguiar@amyntagroup.com Counsel for Member: Manier & Herod, PC Sam Poteet, Esq. Michael Collins, Esq. 1201 Demonbreun St., Suite 900 Nashville, TN 37203 Tel: 615-429-2145 Fax: 615-242-4203 E-mail: mcollins@manierherod.com spoteet@manierherod.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 Strike LLC Strike LLC -- http://www.strikeusa.com/-- is a full-service pipeline, facilities, and energy infrastructure solutions provider. Headquartered in The Woodlands, Texas, Strike partners closely with clients all across North America, safely and successfully delivering a full range of integrated engineering, construction, maintenance, integrity, and specialty services that span the entire oil and gas life cycle. Strike sought Chapter 11 protection (Bankr. S.D. Texas Lead Case No. 21-90054) on Dec. 6, 2021. In the petitions signed by CFO Sean Gore, Strike listed as much as $500 millionin in both assets and liabilities. The cases are handled by Judge David R. Jones. Jackson Walker, LLP and Thomas E. Lauria, Esq., Matthew C. Brown, Esq., Fan B. He, Esq., and Gregory L., of White & Case LLP, serve as the Debtor's attorneys. Opportune Partners, LLC is the Debtor's investment banker and financial advisor while Epiq Corporate Restructuring, LLC is its claims agent. TOLL BROTHERS: S&P Alters Outlook to Positive, Affirms 'BB+' ICR ---------------------------------------------------------------- S&P Global Ratings revised its outlook on Toll Brothers Inc. to positive from stable. S&P also affirmed its 'BB+' issuer credit rating on the company and 'BB+' issue-level rating on its senior unsecured notes. The positive outlook reflects S&P's expectations for robust earnings and cash flow, which should enable Toll Brothers to maintain financial policies that preserve credit ratios consistent with an investment-grade rating, even if the U.S. housing market weakens. Toll Brothers reduced leverage with stronger earnings and debt reduction. The boom in U.S. housing in 2021 has propelled Toll Brothers to strong EBITDA growth, with good cash flow to support higher community count and some debt reduction in the next few years. Toll Brothers has reduced debt by about $500 million in the past three quarters, dropping its borrowings to the lowest point in five years. Earnings growth in 2022 could improve leverage to below 2x, which should provide a buffer at the investment-grade rating for corporate development, shareholder returns, and an unpredictable downturn in Toll Brothers' earnings. Leverage has improved for six straight quarters since the early days of pandemic lockdowns. Lower debt and a steady rebound in earnings improved adjusted debt to EBITDA to an estimated 2.2x-2.4x for the fiscal year ended Oct. 31, 2021. Leverage should improve further if good cash flow and strong earnings persist despite higher costs and supply-chain disruptions in late 2021. Toll Brothers was our first "rising star" candidate among homebuilders in 2018, but leverage jumped to 3.3x by 2020 from 2.3x in 2018 because of $1.3 billion of share repurchases in that period while EBITDA dropped in successive years. S&P said, "Nevertheless, we believe the company can improve leverage to below 2x in the next two years, joining other investment-grade homebuilders with good downside protection for shareholder returns or from a downturn in this cyclical industry. We expect Toll Brothers will increase land investments in the next few years to increase community count amid buoyant demand and solid pricing conditions." Strong prices support margin expansion, but higher costs might still catch up. Sequentially stronger gross margins could be difficult to sustain because of high input costs and continued pressure from labor costs and availability. Lumber prices have dropped from record highs, but they remain at least 25% higher in late 2021 than the past decade. Other commodity inputs are driving costs higher for most building materials, so those cost pressures will likely persist into 2022. Homebuilders are exposed to tight labor conditions, which we believe has constrained the industry's ability to increase volumes amid strong market conditions. Nevertheless, pricing power has supported earnings amid improved home affordability with historic-low mortgage rates. Moreover, homebuilders are mostly shifting their product mix to more entry-level price points, which results in lower unit revenues just as unit costs jump. S&P said, "The positive outlook incorporates our expectation that good earnings and cash flow could boost Toll Brothers' ratio cushion for an investment-grade rating, considering policies for shareholder remuneration, corporate development, and the inherent cyclicality of homebuilder profits and cash flow. Price gains are offsetting higher costs and the transition to a mix of lower price points, so that lower debt levels, improving returns, and good cash flow should provide some buffer to the inherent volatility of earnings. "We could raise our rating on Toll Brothers to 'BBB-' in the next 12-24 months if the company sustains adjusted debt to EBITDA of 2x-3x and debt to capital below 45%. In such a scenario, we expect that Toll Brothers would build some buffer in these ratios to sustain a typical homebuilding downturn, which could entail a year or two of 25%-35% lower EBITDA. As we have done for the homebuilding peers we've already upgraded to investment grade, we estimate that debt to EBITDA closer to 2x in this cyclically strong market should preserve ratios in a downturn. "We could revise the outlook back to stable if Toll Brothers' adjusted debt to EBITDA rises toward 3x because of any combination of debt-funded initiatives or weaker earnings. That said, higher leverage from margin degradation alone appears less likely because of lower debt, and robust cash flow should enable continued growth in community count. Therefore, debt-funded shareholder returns and acquisitions are key to preserving a buffer to potentially weaker earnings in this cyclical industry." WHITE CAP: S&P Alters Outlook to Stable, Affirms 'B' ICR -------------------------------------------------------- S&P Global Ratings revised its outlook on U.S.-based specialty concrete accessories and construction products and services distributor White Cap Supply Holdings LLC to stable from negative and affirmed all its ratings, including the 'B' issuer credit rating. S&P said, "The stable outlook reflects our view that the company's 2021 market tailwinds and earnings growth should support credit metrics in line with the current ratings through 2022. "We expect White Cap's S&P Global Ratings-adjusted leverage to be roughly 6x range under most market conditions throughout 2022. Though recent debt issuances and debt-funded acquisitions have substantially increased leverage, we expect S&P Global Ratings-adjusted leverage has improved to roughly 6x from prior estimates of above 7x. This is under consideration that its financial sponsor Clayton Dubilier and Rice (CD&R) and Sterling Group does not execute additional aggressive dividends or large debt-funded acquisitions. White Cap's prevailing end markets and strong pricing trends enable it to rapidly increase earnings and mitigate recent cost inflations. Historically, the company has produced free operating cash flow (FOCF) to debt in the high single-digit percentage area. We expect that pro forma of recent acquisitions, the company will be able to increase FOCF to the low double-digit percentage area in the next twelve months as the company maintains its strong pricing initiates. "Our forecast incorporates our view that White Cap will likely maintain solid momentum in its operating performance over the next 12 months, particularly given the strong demand in its residential end market. Combined with the more resilient environment in its infrastructure end market and our projections for improved demand in nonresidential end markets in 2022, we believe White Cap's good operating performance will likely support higher organic volume. Still, the commercial and residential construction markets are highly cyclical. We believe the company's earnings and leverage can be volatile throughout the business cycle." Although not incorporated in future forecasts, the Biden Administration's focus on an infrastructure bill could mean positive trends in outer years. White Cap derives 27% of sales from public infrastructure construction end markets, with the remaining 49% and 22% from nonresidential and residential end markets, respectively. Although S&P does not forecast any of President Biden's planned infrastructure bill into its assumptions, it views the passing of a renewed infrastructure bill as positive for the company. Adversely, there is inherent risk if there are declines in public infrastructure construction and delays or reductions in government funding, including funding by transportation authorities and other state agencies, particularly if it is not augmented by federal funding. White Cap's financial risk incorporates S&P's view of the industry's inherent volatility and cyclicality. White Cap's FOCF will likely be sufficient to fund tuck-in acquisitions and maintain adequate liquidity. Its strong margins and modest working capital and capital expenditure (capex) requirements will likely support solid FOCF to debt of high-single digits to low-double digits over the next two years. S&P said, "We expect White Cap to remain acquisitive and anticipate it will opportunistically consolidate small distributors as its owners look to monetize. We do not forecast any voluntary debt repayment during 2021. We believe White Cap's FOCF generation will provide it with enough liquidity to support its operations and fund moderate acquisition activity." The stable outlook on White Cap reflects our belief that end markets should remain stable through 2022. S&P expects mid-single-digit percent revenue growth and relatively flat EBITDA margins, maintaining adjusted debt to EBITDA of roughly 6x through 2022. Adjusted leverage is also driven by its assumption of no large debt-funded dividends or acquisitions in the next twelve months. S&P could lower its rating if: -- White Cap's S&P Global Ratings-adjusted debt to EBITDA trends above 7x on a sustained basis. Such a scenario could follow a decline in end-market demand, higher-than-expected cost inflation that it cannot pass on through price increases, integration challenges, or -- It pursues a more aggressive financial policy such as an additional debt-funded dividend to its financial sponsors, and -- The company's FOCF generation to debt falls well below 5%. An upgrade is unlikely over the next year, as the financial sponsor ownership is a limiting factor for the rating. However, this could happen if demand for White Cap's products is stronger than expected and the company significantly expands end-market diversification. Under this scenario, S&P expects White Cap to sustain: -- Adjusted leverage below 5x; and -- Positive discretionary cash flow for debt repayment. -- There would also need to be more certainty the financial sponsor is willing to maintain leverage at this level. [^] Recent Small-Dollar & Individual Chapter 11 Filings ------------------------------------------------------- In re SS&S Specialties, LLC Bankr. N.D. Fla. Case No. 21-50124 Chapter 11 Petition filed Dec. 16, 2021 See https://www.pacermonitor.com/view/JX2PYOA/SSS_Specialties_LLC__flnbke-21-50124__0001.0.pdf?mcid=tGE4TAMA represented by: Edward J. Peterson, III Stichter, Riedel, Blain & Postler, P.A. Tel: 813-229-0144 E-mail: epeterson.ecf@srbp.com In re JJJ CC & K Management Corp Bankr. E.D.N.Y. Case No. 21-43092 Chapter 11 Petition filed Dec. 16, 2021 Filed pro se In re Golden Title Loan, LLC Bankr. W.D. Tenn. Case No. 21-24148 Chapter 11 Petition filed Dec. 16, 2021 See https://www.pacermonitor.com/view/XJD6AWI/Golden_Title_Loan_LLC__tnwbke-21-24148__0001.0.pdf?mcid=tGE4TAMA represented by: John L. Ryder One Commerce Square Tel: 901-525-1455 E-mail: jryder@harrisshelton.com In re Sunset Woods Holdings, LLC Bankr. E.D. Va. Case No. 21-12033 Chapter 11 Petition filed Dec. 16, 2021 See https://www.pacermonitor.com/view/5NDXBGQ/Sunset_Woods_Holdings_LLC__vaebke-21-12033__0001.0.pdf?mcid=tGE4TAMA represented by: Michael Jacob Owen Sandler Fisher-Sandler, LLC Tel: 703-967-3315 E-mail: sandlerlaw@yahoo.com In re William R Perry & Associates, LLC Bankr. N.D. Fla. Case No. 21-50126 Chapter 11 Petition filed Dec. 17, 2021 See https://www.pacermonitor.com/view/2K2RSEY/William_R_Perry__Associates_LLC__flnbke-21-50126__0001.0.pdf?mcid=tGE4TAMA represented by: Robert C. Bruner and Byron Wright, III Bruner Wright, P.A. Tel: 850-385-0342 E-mail: rbruner@brunerwright.com twright@brunerwright.com In re 13 Clinton Ave LLC Bankr. D. Mass. Case No. 21-11870 Chapter 11 Petition filed Dec. 20, 2021 See https://www.pacermonitor.com/view/PJ6N4PA/13_Clinton_Ave_LLC__mabke-21-11870__0001.0.pdf?mcid=tGE4TAMA represented by: David B. Madoff Madoff & Khoury LLP Tel: 508-543-0040 E-mail: madoff@mandkllp.com ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. 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