/raid1/www/Hosts/bankrupt/TCR_Public/220113.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, January 13, 2022, Vol. 26, No. 12
Headlines
25-16 37TH AVE: Taps Rosewood Realty Group to Sell NY Property
37 VENTURES: Amends Alignment Claim Pay Details
689 ST. MARKS: Voluntary Chapter 11 Case Summary
ADAMIS PHARMACEUTICALS: Files Fast Track FDA Application for Tempol
AHI ESTATE: Seeks to Hire Monday McElwee & Albright as Counsel
ALIERA COMPANIES: Wants Ch. 11 Case Moved from Delaware to Georgia
ALL YEAR HOLDINGS: Aims to Select Winning Bidder in 60 Days
ALL YEAR HOLDINGS: Seeks to Hire 'Ordinary Course' Professionals
ALPHATEC HOLDINGS: Reports Prelim 2021 Results, 2022 Guidance
BALLINGER, TX: Moody's Confirms Ba2 Issuer Rating; Outlook Stable
BEACHSIDE BINGO: Taps Charles M. Wynn Law Office as Legal Counsel
BEACON PURCHASING: Seeks to Hire Brian D. Shapiro as Legal Counsel
BEACON PURCHASING: Seeks to Hire Weiland Golden Goodrich as Counsel
BEACON PURCHASING: Taps Force Ten Partners as Financial Advisor
BIOLASE INC: Expects Fourth Quarter Revenue of $12.2M to $12.5M
CELLA III: Gets Interim OK to Hire Kelly Hart as New Counsel
CFX CDO: Case Summary & 11 Unsecured Creditors
CFX US CO: Case Summary & 13 Unsecured Creditors
CITY BREWING: S&P Lowers ICR to 'B' On Soft Hard Seltzer Demand
CLASSIC CATERING: Unsecureds to be Paid in Full in 24 Months
CLUBHOUSE MEDIA: Gary Marenzi Quits as Director
COMFORT JET: Files for Chapter 15 Amid Isle of Man Liquidation
CROWN JEWEL: Seeks to Tap Cushman & Wakefield as Broker
CYPRESS CREEK: Seeks to Hire CBRE Inc. as Real Estate Advisor
EDWARD EADES: Gets OK to Hire Samaniego & Associates as Accountant
EL JEBOWL: Seeks to Tap Wadsworth as Bankruptcy Counsel
FAMOUS ANTHONY'S BROOKSIDE: Seeks Approval to Hire Legal Counsel
FAMOUS ANTHONY'S: Seeks to Tap Magee Goldstein Lasky as Counsel
GLOBAL NET: Fitch Affirms 'BB+' LT IDR, Outlook Stable
GPMI CO: Gets OK to Hire Engelman Berger as Bankruptcy Counsel
HARRY'S HOT DOGS: Seeks to Hire Shafferman & Feldman as Counsel
HAVEN FORT MYERS: SBA Opposes Subchapter V Plan
HERITAGE RAIL: Feb. 17 Disclosure Statement Hearing Set
HOLOGENIX LLC: Unsec. Creditors to Get Share of Income for 3 Years
HOME DEALS OF MAINE: Property Sale Proceeds to Fund Plan Payments
ICU MEDICAL: Fitch Converts Expected Ratings to 'BB' LT IDR
INPIXON: CEO Reflects on Role of Immersive Technologies
INTERNATIONAL PETROLEUM: Moody's Assigns B1 CFR; Outlook Stable
JEM HOMES: Capital Contribution & Continued Operations to Fund Plan
KOSMOS ENERGY: FMR LLC, Abigail Johnson Report 10.7% Equity Stake
LATAM AIRLINES: Merrill Lynch, Centerbridge Vie Interest Payments
LIMETREE BAY: Says Sale Appeal Not a Reason to Delay Closing
LTL MANAGEMENT: Judge Kaplan Postpones Stay Shelter Decision
LTR INTERMEDIATE: S&P Upgrades ICR to 'B', Outlook Stable
MALLINCKRODT PLC: Judge Probes Fairness of Opioid Legal Shield
MI WINDOWS: S&P Affirms 'B+' Issuer Credit Rating, Outlook Stable
MIWD HOLDCO II: Moody's Hikes CFR to B1; Outlook Stable
MIWD HOLDCO: Fitch Assigns 'BB-' LongTerm IDR, Outlook Stable
MJH HEALTHCARE: Moody's Assigns B2 CFR; Outlook Stable
MOUTHPEACE DENTAL: Competing Plans Set for Feb. 24
NEUBASE THERAPEUTICS: Appoints New Chief Financial Officer
NEW TROJAN: Moody's Lowers CFR to B3; Outlook Stable
NUTRIBAND INC: Signs Feasibility Agreement to Develop AVERSA
OMAGINE INC: US Trustee Says Plan Disclosures Inadequate
ORIGINCLEAR INC: Sells $620K Worth of Series Y Preferred Shares
PCDM PROPERTIES: Creditors to Get Installments, Interest in Plan
PIKE CORP: Moody's Rates New USD Unsecured Notes 'B3'
PIKE CORP: S&P Affirms 'CCC+' Rating on Senior Unsecured Notes
PLACE FOR VETERANS: Taps Lefkovitz & Lefkovitz as Legal Counsel
PPI LLC: Plan & Disclosures Due March 15, 2022
PREFERRED READY: Unsecureds Will Get 50% of Claims in 60 Months
RESTORNATIONS: Says Helvey Loans Status 'Illegal'
RIVERFRONT CRUISE: US Trustee Says Amended Plan Inaccurate
SELINSGROVE INSTITUTIONAL: Wood-Metal Hits Chapter 11 Bankruptcy
SHORE IMAGING: Feb. 10 Disclosure Statement Hearing Set
THE LOST CAJUN: Makes Comeback After Bankruptcy Exit
TONARCH 1 LLC: Voluntary Chapter 11 Case Summary
UNITED STRUCTURES: Case Summary & 6 Unsecured Creditors
VENUS CONCEPT: Reports Preliminary Revenue Results for Q4 2021
WHISPER LAKE: Seeks Approval to Hire Tousley as Special Counsel
[*] Overall December 2021 New Bankruptcy Filings Declined
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
25-16 37TH AVE: Taps Rosewood Realty Group to Sell NY Property
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25-16 37th Ave Owners, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of New York to employ Rosewood
Realty Group to market for sale its real property in New York.
The property is a seven-storey mixed-use condominium project
located at 25-16 37th Ave., Long Island City, N.Y.
Rosewood will be paid a commission equal to 3.75 percent of the
gross purchase price of the property. In the event that the
successful purchaser is the stalking horse bidder or senior lender,
then the firm will be paid a fixed fee of $25,000.
As disclosed in court filings, Rosewood is a "disinterested person"
within the meaning of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Greg Corbin
Rosewood Realty Group
38 E 29th St 5th floor
New York, NY 10016
Phone: +1 212-359-9900
Email: Greg@rosewoodrg.com
About 25-16 37th Ave Owners
Hollywood, Fla.-based 25-16 37th Ave Owners, LLC is a single asset
real estate debtor (as defined in 11 U.S.C. Section 101(51B)).
25-16 37th Ave Owners filed its voluntary petition for Chapter 11
protection (Bankr. E.D.N.Y. Case No. 21-42662) on Oct. 19, 2021,
listing $250,000 in assets and $18,437,803 in liabilities. Judge
Jil Mazer-Marino presides over the case.
Joel M. Shafferman, Esq., at Shafferman & Feldman, LLP represents
the Debtor as legal counsel.
37 VENTURES: Amends Alignment Claim Pay Details
-----------------------------------------------
37 Ventures, LLC and Larada Sciences, Inc., submitted Third Amended
Joint Chapter 11 Plan of Reorganization dated Jan. 4, 2022.
Class 3 consists of Alignment's Claim Against 37 Ventures.
Alignment shall receive a Pro Rata share until the Alignment Claim
is paid in full, after giving credit to distributions Alignment
receive s from Larada. In addition, 37 Ventures Pre-Confirmation
Distributions shall be credited as a distribution pursuant to this
provision. At the time of each distribution to Alignment under
either such section, the amount of Alignment's Allowed Claim shall
be recalculated to be the sum of the then outstanding principal
balance of Alignment's Secured (Class 4) Claim.
Class 4 consists of Alignment's Secured Claim Against Larada.
Alignment's Claim against Larada shall not bear interest. Larada
shall repa y in full Alignment's Class 4 Claim as follows:
* Larada shall pay 70% of the Remaining Larada Quarterly
Amount to Alignment until the Alignment's Class 4 Claim is paid in
full.
* If a Larada Asset Sale Liquidity Event occurs before such
time at Alignment's Class 4 Claim has been paid in full, then
Alignment's Class 4 Claim shall be paid in full from the net
proceeds of the Larada Asset Sale Liquidity Event.
* In the event that 37 Ventures has not paid Alignment's Claim
in full, Larada shall pay the balance of Alignment's Class 4 Claim
on or before December 31, 2028 or as otherwise provided in the
Plan.
Distributions under the Plan will be made from the following
sources: the 37 Ventures Net Effective Date Cash and, if
applicable, the Hawk contribution (same), Liquidity Event Net
Proceeds, the Larada Quarterly Payments and, if applicable, the
Larada Asset Sale Liquidity Event net proceeds (same).
Except as otherwise provided in this Plan, Reorganized Larada, as
of the Effective Date, shall be vested with all of the assets of
the Larada Estate; and Reorganized 37 Ventures, as of the Effective
Date, shall be vested with all of the assets of the 37 Ventures
Estate, including all claims and causes of action that existed
prior to, on or after the commencement of their respective chapter
11 cases.
A full-text copy of the Third Amended Joint Plan dated Jan. 4,
2022, is available at https://bit.ly/3GggVaB from PacerMonitor.com
at no charge.
Counsel for debtor 37 Ventures, LLC:
Gary E. Klausner, Esq.
Eve H. Karasik, Esq.
Jeffrey S. Kwong, Esq.
Levene, Neale, Bender, Yoo & Brill L.L.P.
10250 Constellation Blvd., Ste. 1700
Los Angeles, CA 90067
Telephone: (310) 229-1234
Facsimile: (310) 229-1244
Email: gek@lnbyb.com
ehk@lnbyb.com
jsk@lnbyb.com
Counsel for debtor Larada Sciences, Inc.:
George Hofmann, Esq.
Cohne Kinghorn, P.C.
111 East Broadway, 11th Floor
Salt Lake City, UT 84111
Telephone: (801) 363-4300
- and -
Derrick Talerico, Esq.
David B. Zolkin, Esq.
Zolkin Talerico LLP
12121 Wilshire Blvd., Suite 1120
Los Angeles, CA 90025
Telephone: (424) 500-8551
Facsimile: (424) 500-8951
E-mail: dtalerico@ztlegal.com
dzolkin@ztlegal.com
About 37 Ventures
37 Ventures, LLC, a company based in Thousand Oaks, Calif., sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. C.D.
Cal. Case No. 21-10261) on March 18, 2021. Its affiliate, Larada
Sciences, Inc., a Utah-based company that owns and operates clinics
dedicated to head lice prevention and treatment, filed a Chapter 11
petition (Bankr. C.D. Calif. Case No. 21-10269) on March 19, 2021.
The cases are jointly administered under Case No. 21-10261. Judge
Deborah J. Saltzman oversees the cases.
In their petitions, 37 Ventures and Larada Sciences disclosed
assets of between $1 million and $10 million and liabilities of
between $10 million and $50 million.
Levene Neale Bender Yoo & Brill, LLP, serves as 37 Ventures' legal
counsel. Larada Sciences tapped Cohne Kinghorn, PC, as bankruptcy
counsel, Zolkin Talerico LLP as local counsel, and Rocky Mountain
Advisory, LLC, as financial advisor.
689 ST. MARKS: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: 689 St. Marks Avenue, Inc.
689 Saint Marks Ave.
Brooklyn, NY 11216
Business Description: 689 St. Marks Avenue is a Single Asset Real
Estate debtor (as defined in 11 U.S.C.
Section 101(51B)).
Chapter 11 Petition Date: January 12, 2022
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 22-40043
Judge: Hon. Elizabeth S. Stong
Debtor's Counsel: Moshe Kalman Silver, Esq.
347 Fifth Avenue
Suite 1402-703
New York, NY 10016
Tel: 212-444-9972
Email: msilverlaw@gmail.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Frank Morris, president.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/O5GWCHA/689_ST_MARKS_AVENUE_INC__nyebke-22-40043__0001.0.pdf?mcid=tGE4TAMA
ADAMIS PHARMACEUTICALS: Files Fast Track FDA Application for Tempol
-------------------------------------------------------------------
Adamis Pharmaceuticals Corporation has submitted a Fast Track
Application to the U.S. Food and Drug Administration (FDA) for
Tempol for the treatment and prevention of COVID-19. Tempol is
currently being studied in a Phase 2/3 clinical trial in adult
patients with confirmed COVID-19 infection. Tempol has been shown
to have antiviral, anti-inflammatory, and antioxidant activity.
Although recent oral antiviral drugs have been approved by the FDA,
the Company believes that Tempol would provide an unmet medical
need because of its unique mechanism of action and safety profile.
Shyam Kottilil, MBBS, Ph.D., Professor of Medicine at the
University of Maryland School of Medicine (UMSOM), Chief of the
Division of Clinical Care and Research at UMSOM's Institute of
Human Virology, and Principal Investigator for the ongoing Tempol
clinical trial, commented: "We are currently observing extremely
high COVID-19 infection rates and we urgently need additional safe
and effective oral agents. I am pleased with the conduct of the
ongoing clinical trial thus far. If positive effects are observed
and result from Tempol's ongoing clinical trial, I believe that
this drug should be expedited through the approval process. Tempol
as an oral antiviral and anti-inflammatory agent may be an
important countermeasure, if proven safe and effective in this
trial."
Dr. Dennis J. Carlo, president and chief executive officer of
Adamis, commented, "Our ongoing clinical trial is continuing, as we
see a surge in COVID-19 infections in the U.S. and worldwide.
Concerns have been expressed about potential safety questions for
EUA approved antivirals such as mutagenesis and drug-drug
interactions (Molnupiravir: long-term safety questions linger as
approvals approach (pharmaceutical-technology.com))
(https://www.fda.gov/media/155050/download). We are thus applying
for Fast Track designation to the FDA to expedite the regulatory
approval pathway for Tempol. Because Tempol has both
anti-inflammatory and antiviral effects, we believe that Tempol
fulfills an unmet medical need as an oral agent, focusing on
multiple aspects of the pathogenesis of COVID-19 disease."
Recently, researchers from the National Institutes of Health (NIH)
highlighted Tempol as a potential home antiviral treatment for
COVID-19
(https://covid19.nih.gov/news-and-stories/tempol-potential-home-treatment-covid-19).
The Company also announced
(https://ir.adamispharmaceuticals.com/news-releases/news-release-details/adamis-pharmaceuticals-announces-publication-human-immune)
the results of a published study in collaboration with Stanford
University researchers suggesting that Tempol has strong, broad
in-vitro anti-cytokine activity. Suppression of inflammatory
cytokines with an antioxidant may be a beneficial treatment
strategy in COVID-19 infection.
About Adamis Pharmaceuticals
Adamis Pharmaceuticals Corporation --
http://www.adamispharmaceuticals.com-- is a specialty
biopharmaceutical company primarily focused on developing and
commercializing products in various therapeutic areas, including
allergy, opioid overdose, respiratory and inflammatory disease.
Adamis reported a net loss of $49.39 million for the year ended
Dec. 31, 2020, compared to a net loss of $27.51 million for the
year ended Dec. 31, 2019. As of Dec. 31, 2020, the Company had
$30.87 million in total assets, $27.37 million in total
liabilities, and $3.50 million in total stockholders' equity.
San Diego, California-based BDO USA, LLP, the Company's auditor
since 2020, issued a "going concern" qualification in its report
dated April 15, 2021, citing that the Company has suffered
recurring losses from operations and has a net capital deficiency
that raise substantial doubt about its ability to continue as a
going concern.
AHI ESTATE: Seeks to Hire Monday McElwee & Albright as Counsel
--------------------------------------------------------------
Auxilius Heavy Industries, LLC seeks approval from the U.S.
Bankruptcy Court for the Southern District of Indiana to hire
Monday McElwee and Albright to assist its lead counsel, KC Cohen,
Lawyer, PC.
KC Cohen requires the assistance of Monday McElwee and Albright to
conclude various items of litigation that are described in the
Debtor's Chapter plan of liquidation.
The hourly rates charged by the firm's attorneys and paralegals are
as follows:
Christopher J. McElwee $275 per hour
Nicholas J Wildeman $200 per hour
Bobby H Macias (paralegal) $100 per hour
As disclosed in court filings, Monday McElwee and Albright neither
represents nor holds interest adverse to the matters upon which it
is to be employed.
The firm can be reached through:
Christopher J. McElwee, Esq.
Monday McElwee & Albright
1915 Broad Ripple Ave
Indianapolis, IN 46220
Phone: 317-251-1929
Fax: 317-251-1941
About Auxilius Heavy Industries
Based in Carmel, Ind., Auxilius Heavy Industries, LLC is a
privately held company that operates in the wind industry. The
company offers wind turbine services, including blade inspections
and repairs, end of warranty inspections, turbine cleaning, and
supplemental manning. It serves wind farms located in the
following states: California, Colorado, Illinois, Indiana, Iowa,
Michigan, Nebraska, New Mexico, Texas, and Pennsylvania. It also
has offices in Los Angeles, Calif.; Bradfod, Ill., and Fowler,
Ind.
Auxilius Heavy Industries filed for Chapter 11 protection (Bankr.
S.D. Ind. Case No. 20-01963) on March 26, 2020, with total assets
of $639,911 and total liabilities of $2,025,877. Michael Kidwel,
president, signed the petition.
Judge James M. Carr presides over the case.
Auxilius Heavy Industries tapped KC Cohen, Lawyer, PC, as its legal
counsel and Sanders Tax Service as its accountant. Ken Wolff and
Stan Mills of Richey, Mills & Associates, LLP serve as financial
advisor and forensic accountant, respectively.
* * *
Auxilius Heavy Industries won approval to sell substantially all of
its assets to Kachina Consulting, LLC, for $1.65 million. It also
won approval to sell its accounts receivable to Kachina Consulting
for 82.5% of the actual outstanding balance of the accounts. As
part of the sale process, the Debtor sold its name to the buyer for
use as a trade style, and accordingly changed its name to AHI
Estate, LLC.
The company obtained confirmation for its Chapter 11 plan of
liquidation on April 13, 2021, and has been in the process of
liquidating assets and making distributions to creditors under the
plan.
ALIERA COMPANIES: Wants Ch. 11 Case Moved from Delaware to Georgia
------------------------------------------------------------------
Dorothy Atkins of Law360 reports that Georgia-based Aliera
Companies Inc. which was involuntarily put into Chapter 11 last
December 2021 has urged a Delaware federal judge Monday, January
10. 2022, to transfer the case to its home state where it recently
filed its own bankruptcy petition, firing back against petitioning
creditors who argued that the case should remain in Delaware.
In an eight-page reply, the now-defunct health insurance provider
argued that the judge shouldn't keep its bankruptcy proceeding in
Delaware, where a related bankruptcy filed by Sharity Ministries
Inc. , which is in the post-confirmation phase, is pending.
About Aliera Companies
Aliera Companies Inc. is focused on providing a full spectrum of
revolutionary options and services to a multitude of industries
that fit every need and budget. The company provides services to
support its subsidiaries which focus on the unique aspects of the
health care industry.
Aliera Companies Inc. sought Chapter 11 bankruptcy petition (Bankr.
N.D. Ga. Case No. 21-59493) on Dec. 21, 2021. In the petition
signed by Katie Goodman as authorized officer, Aliera Companies
Inc. estimated assets between $1 million and $10 million and
estimated liabilities: $500 million and $1 billion. J. Robert
Williamson, Esq., of SCROGGINS & WILLIAMSON, P.C., is the Debtor's
counsel.
ALL YEAR HOLDINGS: Aims to Select Winning Bidder in 60 Days
-----------------------------------------------------------
Vince Sullivan of Law360 reports that a Brooklyn property
development firm told a New York bankruptcy judge Monday, Jan. 10,
2022, that it has interest from six potential bidders for a Chapter
11 transaction that will help the company emerge from bankruptcy,
and that it hopes to select a partner within the next 60 days.
During the initial case conference of All Year Holdings Ltd.,
debtor attorney Gary T. Holtzer of Weil Gotshal & Manges LLP said
an ongoing marketing process has resulted in 40 parties agreeing to
non-disclosure agreements and six indications of interest of
potential bidders for a Chapter 11 transaction.
About All Year Holdings Ltd.
All Year Holdings Ltd. is a real estate development company founded
by American real estate developer Yoel Goldman.
All Year Holdings sought Chapter 11 bankruptcy protection (Bankr.
S.D.N.Y. Case No. 21-12051) on Dec. 14, 2021. The Debtor estimated
$1 billion to $10 billion in assets and liabilities. Weil,
Gotshal & Manges LLP, led by Matthew Paul Goren, is the Debtor's
counsel.
ALL YEAR HOLDINGS: Seeks to Hire 'Ordinary Course' Professionals
----------------------------------------------------------------
All Year Holdings Ltd. seeks approval from the U.S. Bankruptcy
Court for the Southern District of New York to employ and
compensate those professionals employed in the ordinary course of
business.
The "ordinary course" professionals include:
Archer & Greiner PC
1211 Avenue of the Americas, Suite 2750
New York, NY 10036
Attention: Allen G. Kadish, Esq.
Email: akadish@archerlaw.com
Corporate & Litigation Legal Services
Bartov & Co. HaArba'a Towers,
South Tower, 34th fl.,
30 HaArba'a Street,
Tel Aviv 6473926
Attention: Amir Bartov, Adv.
Email: bartov@shimonov.com
Corporate & Regulatory Legal Services
Koffsky Schwalb LLC
500 Seventh Avenue, 8th Floor
New York, NY 10018
Attention: Efrem Schwalb, Esq.
Email: eschwalb@koffskyschwalb.com
Corporate & Litigation Legal Services
Herrick, Feinstein LLP
Two Park Avenue,
New York, NY 10018
Attention: Avery S. Mehlman, Esq.
Email: amehlman@herrick.com
Litigation Legal Services
Conyers Dill & Pearman Commerce House,
Wickhams Cay 1
P.O. Box 3140
Road Town, Tortola
British Virgin Islands VG1110
Attention: Richard Evans
Email: Richard.Evans@conyers.com
BVI Legal Services
The fee for each ordinary course professional is capped at $150,000
for the entire period in which the Debtor's Chapter 11 case is
pending.
About All Year Holdings Ltd.
All Year Holdings Ltd. is a real estate development company founded
by American real estate developer Yoel Goldman. It operates as a
holding company, which, through its direct and indirect
subsidiaries, focuses on the development, construction,
acquisition, leasing and management of residential and commercial
income producing properties in Brooklyn, N.Y. The company's
portfolio includes approximately 1,648 residential units and 69
commercial units in Bushwick, Williamsburg, and
Bedford-Stuyvesant.
All Year Holdings sought Chapter 11 bankruptcy protection (Bankr.
S.D.N.Y. Case No. 21-12051) on Dec. 14, 2021. At the time of the
filing, the Debtor listed $1 billion to $10 billion in assets and
liabilities. Judge Martin Glenn oversees the case.
Weil, Gotshal & Manges LLP, led by Matthew Paul Goren, Esq., is the
Debtor's legal counsel.
ALPHATEC HOLDINGS: Reports Prelim 2021 Results, 2022 Guidance
-------------------------------------------------------------
Alphatec Holdings, Inc. announced preliminary revenue results for
the fourth quarter and full year ended Dec. 31, 2021, and provided
estimates for its full-year 2022 revenue guidance.
Preliminary, Unaudited Q4 and Full-Year 2021 Revenue Ranges
Fourth Quarter Full Year
Ended Dec. 31, 2021 Ended Dec. 31, 2021
------------------- -------------------
Total Revenue $73.2M to $74M $242.5M to $243.3M
Preliminary, unaudited fourth quarter 2021 U.S. organic revenue
grew 41% to 42% compared to the prior year period and 18% to 19%
sequentially. The greatest contributor to growth in the fourth
quarter was robust uptake of the PTP (Prone-TransPsoas) Approach,
which, coupled with strong interest in the recently launched ALIF
Standalone Interbody System, drove better-than-anticipated anterior
column adoption. The integration of EOS imaging is proceeding as
planned and EOS-related revenue exceeded expectations.
"Our dedication to creating clinical distinction drove significant
growth in 2021," said Pat Miles, chairman and chief executive
officer. "PTP continues to gain momentum and expand the market for
less invasive surgery. Additionally, the real-time, objective
information that ATEC alone brings into the O.R. through SafeOp
(automated SSEP and EMG) is improving surgical predictability and
patient outcomes. The industry's leading surgeons and sales
professionals are increasingly recognizing ATEC as spine's new
innovator. As I look to the years ahead, I couldn't be more
excited about our ability to earn surgeons' confidence. We've
assembled the highest concentration of know-how in the industry and
built an engine capable of fueling significant revenue growth well
into the future."
The preliminary information presented in this press release is
based on the Company's current expectations and may be adjusted as
a result of, among other things, completion of customary annual
audit procedures. The Company expects to announce its fourth
quarter and full-year 2021 financial and operating results on
Tuesday,
March 1, 2022, after the market close.
Financial Outlook for the Full-Year 2022
The Company anticipates full-year 2022 total revenue of $305
million, reflecting growth of approximately 26% compared to the
full year 2021. This includes organic revenue growth of between
22% and 23% and approximately $45 million of revenue related to EOS
imaging. Further detail will be provided when the Company reports
fourth quarter and full-year 2021 financial results.
About Alphatec Holdings
Alphatec Holdings, Inc. (ATEC) (www.atecspine.com), through its
wholly-owned subsidiaries, Alphatec Spine, Inc. and SafeOp
Surgical, Inc., is a medical device company dedicated to
revolutionizing the approach to spine surgery through clinical
distinction. ATEC architects and commercializes approach-based
technology that integrates seamlessly with the SafeOp Neural
InformatiX System to provide real-time, objective nerve information
that can enhance the safety and reproducibility of spine surgery.
Alphatec Holdings reported a net loss of $78.99 million for the
year ended Dec. 31, 2020, a net loss of $57 million for the year
ended Dec. 31, 2019, and a net loss of $28.97 million for the year
ended Dec. 31, 2018. As of Sept. 30, 2021, the Company had
$598.11 million in total assets, $100.07 million in total current
liabilities, $320.97 million in long-term debt, $24.95 million in
operating lease liability (less current portion), $16.75 million in
other long-term liabilities, $23.60 million in redeemable preferred
stock, and $111.76 million in total stockholders' equity.
BALLINGER, TX: Moody's Confirms Ba2 Issuer Rating; Outlook Stable
-----------------------------------------------------------------
Moody's Investors Service has confirmed the City of Ballinger, TX's
Ba2 issuer and general obligation limited tax (GOLT) ratings. At
the same time, the outlook has been revised to stable from ratings
under review. The issuer rating reflects Moody's assessment of
hypothetical city obligations supported by a general obligation
unlimited tax (GOULT) pledge. This action concludes a review for
direction uncertain initiated on October 14, 2021 due to lack of
sufficient information. Moody's has since received sufficient
financial information to maintain the rating. The city has $5.2
million in GOLT bonds outstanding.
RATINGS RATIONALE
The Ba2 issuer rating reflects very weak, negative general fund
reserves, a high debt burden supported by a weak utility system and
the lack of a dedicated debt service levy to support debt payments.
The rating also reflects the city's weak residential income profile
and limited concentrated and small though growing tax base.
The Ba2 GOLT rating incorporates the issuer long term rating credit
characteristics, and the city's ample taxing headroom to generate
sufficient property taxes sufficient to pay debt service, which
offsets the property tax rate limitation established by state law
and lack of a full faith and credit pledge.
RATING OUTLOOK
The stable outlook reflects Moody's expectation that the city's
financial operations and position will remain constrained as they
improve gradually.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS
- Trend of operating surpluses, significantly improving reserves
- Substantial tax base expansion and diversification
- Reduction of the debt burden
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS
- Return to deficit operations leading to further decline in
reserves
- Significant borrowing without comparable tax base growth
- Further financial deterioration of the water and sewer system
that supports city's debt
LEGAL SECURITY
The city's bonds are payable from a direct and continuing ad
valorem tax, levied on all taxable property, within the limits
prescribed by law.
PROFILE
The city of Ballinger has approximately 3,700 residents and is
located in Runnels County in central Texas, approximately 165 miles
northwest of Austin, TX (Aa1 stable). Local economic drivers
include agriculture and manufacturing.
BEACHSIDE BINGO: Taps Charles M. Wynn Law Office as Legal Counsel
-----------------------------------------------------------------
Beachside Bingo, Inc. seeks approval from the U.S. Bankruptcy Court
for the Northern District of Florida to employ Charles M. Wynn Law
Office, P.A. as its legal counsel.
The firm will advise the Debtor of its powers and duties under the
Bankruptcy Code and will provide other legal services in connection
with its Chapter 11 case.
The hourly rates charged by the firm's attorneys and legal
assistants are as follows:
Charles Wynn, Esq. $375 per hour
Michael Wynn, Esq. $300 per hour
Legal Assistant $100 per hour
The Debtor paid the firm a non-refundable retainer in the sum of
$5,000.
Charles Wynn, Esq., disclosed in court filings that the firm's
attorneys and legal assistants do not hold nor represent an
interest adverse to the Debtor's bankruptcy estate.
The firm can be reached through:
Charles M. Wynn, Esq.
Charles M. Wynn Law Offices, P.A.
4436 Clinton St.
P.O. Box 146
Marianna, FL 32447
Phone: (850) 526-1529
Email: court@wynnlaw-fl.com
About Beachside Bingo
Beachside Bingo, Inc. sought protection for relief under Chapter 11
of the Bankruptcy Code (Bankr. N.D. Fla. Case No. 22-30006) on Jan.
6, 2022, listing up to $500,000 in assets and up to $50,000 in
liabilities. Judge Karen K. Specie oversees the case.
Michael Austen Wynn, Esq., at Charles M. Wynn Law Office, P.A.
serves as the Debtor's legal counsel.
BEACON PURCHASING: Seeks to Hire Brian D. Shapiro as Legal Counsel
------------------------------------------------------------------
Beacon Purchasing, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Nevada to employ the Law Office of Brian
D. Shapiro, LLC to serve as co-counsel with Weiland Golden
Goodrich, LLP.
The firm will render these legal services:
(a) represent the Debtor in any proceeding or hearing in the
bankruptcy court in any action where the rights of the estate or
the Debtor may be litigated, or affected;
(b) prepare legal papers;
(c) take all necessary or appropriate actions in connection
with a sale or a plan of reorganization, and such further actions
as may be required in connection with the administration of the
Debtor's estate;
(d) take all necessary actions to protect and preserve the
Debtor's estate; and
(e) perform all other necessary legal services in connection
with the prosecution of the bankruptcy case.
The hourly rates of the firm's attorneys and staff are as follows:
Brian D. Shapiro $525
Other Attorneys and Paralegals $150 - $525
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a pre-bankruptcy retainer of $26,000 from the
Debtor.
Brian Shapiro, Esq., an attorney at the Law Office of Brian D.
Shapiro, disclosed in a court filing that the firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Brian D. Shapiro, Esq.
Law Office of Brian D. Shapiro, LLC
510 S. 8th Street
Las Vegas, NV 89101
Telephone: (702)386-8600
Facsimile: (702)383-0994
Email: brian@brianshapirolaw.com
About Beacon Purchasing
Beacon Purchasing LLC, doing business as Banner Purchasing LLC,
offers automated purchasing solution that allows clients to cut
costs. It is based in San Juan Capistrano, Calif.
Beacon Purchasing sought Chapter 11 protection (Bankr. D. Nev. Case
No. 21-15886) on Dec. 30, 2021, disclosing up to $50,000 in assets
and up to $10 million in liabilities. Steve Borgquist, managing
member, signed the petition.
Judge Natalie M. Cox oversees the case.
The Debtor tapped Weiland Golden Goodrich, LLP and the Law Office
of Brian D. Shapiro, LLC as bankruptcy counsel, and Force Ten
Partners, LLC as financial advisor.
BEACON PURCHASING: Seeks to Hire Weiland Golden Goodrich as Counsel
-------------------------------------------------------------------
Beacon Purchasing, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Nevada to employ Weiland Golden Goodrich,
LLP as its bankruptcy counsel.
The firm will render these legal services:
(a) advise the Debtor with respect to the requirements and
provisions of the Bankruptcy Code, Subchapter V, Federal Rules of
Bankruptcy Procedure, Local Bankruptcy Rules, U.S. Trustee
Guidelines, and other applicable requirements which may affect the
Debtor;
(b) assist the Debtor in preparing and filing schedules and
statement of financial affairs, complying with and fulfilling U.S.
Trustee requirements, complying with and fulfilling subchapter V
requirements, and preparing other documents as may be required
after the initiation of a Chapter 11 case;
(c) assist the Debtor in negotiations with creditors and other
parties-in-interest;
(d) assist the Debtor in the preparation and formulation of a
Chapter 11, Subchapter V plan;
(e) advise the Debtor concerning the rights and remedies of
the estate and of the Debtor in regard to adversary proceedings
which may be removed to, or initiated in, the bankruptcy court;
(f) prepare legal papers;
(g) represent the Debtor in any proceeding or hearing in the
bankruptcy court in any action where the rights of the estate or
the Debtor may be litigated, or affected; and
(h) otherwise provide those services to the Debtor as are
generally provided by a general insolvency counsel.
The hourly rates of the firm's attorneys are as follows:
Jeffrey I. Golden $750
Ryan W. Beall $480
Sonja M. Hourany $450
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a pre-bankruptcy retainer of $220,000 from the
Debtor.
Jeffrey Golden, Esq., an attorney at Weiland Golden Goodrich,
disclosed in a court filing that the firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Jeffrey I. Golden, Esq.
Ryan W. Beall, Esq.
Sonja M. Hourany, Esq.
Weiland Golden Goodrich LLP
650 Town Center Drive, Suite 600
Costa Mesa, CA 92626
Telephone: (714) 966-1000
Facsimile: (714) 966-1002
Email: jgolden@wgllp.com
rbeall@wgllp.com
shourany@wgllp.com
About Beacon Purchasing
Beacon Purchasing LLC, doing business as Banner Purchasing LLC,
offers automated purchasing solution that allows clients to cut
costs. It is based in San Juan Capistrano, Calif.
Beacon Purchasing sought Chapter 11 protection (Bankr. D. Nev. Case
No. 21-15886) on Dec. 30, 2021, disclosing up to $50,000 in assets
and up to $10 million in liabilities. Steve Borgquist, managing
member, signed the petition.
Judge Natalie M. Cox oversees the case.
The Debtor tapped Weiland Golden Goodrich, LLP and the Law Office
of Brian D. Shapiro, LLC as bankruptcy counsel, and Force Ten
Partners, LLC as financial advisor.
BEACON PURCHASING: Taps Force Ten Partners as Financial Advisor
---------------------------------------------------------------
Beacon Purchasing, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Nevada to employ Force Ten Partners, LLC
as financial advisor.
Force Ten Partners will render these services:
(a) analyze recent financial information;
(b) develop near-term budgets, financial projections, and
analysis to support all phases of the Chapter 11 case;
(c) assist with the preparation of Chapter 11 compliance
requirements;
(d) assist legal counsel with financial analysis and strategy
related to the Debtor's goals; and
(e) render other services mutually agreed upon.
The hourly rates of the firm's professionals are as follows:
Adam Meislik $850
Chad Kurtz $650
Other Staff $225 - $475
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a pre-bankruptcy retainer of $50,000 from the
Debtor.
Adam Meislik, a partner at Force Ten Partners, disclosed in a court
filing that the firm is a "disinterested person" as that term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Adam Meislik
Force Ten Partners, LLC
5271 California Ave., Suite 270
Irvine, CA 92617
Telephone: (949) 357-2359
Email: ameislik@force10partners.com
About Beacon Purchasing
Beacon Purchasing LLC, doing business as Banner Purchasing LLC,
offers automated purchasing solution that allows clients to cut
costs. It is based in San Juan Capistrano, Calif.
Beacon Purchasing sought Chapter 11 protection (Bankr. D. Nev. Case
No. 21-15886) on Dec. 30, 2021, disclosing up to $50,000 in assets
and up to $10 million in liabilities. Steve Borgquist, managing
member, signed the petition.
Judge Natalie M. Cox oversees the case.
The Debtor tapped Weiland Golden Goodrich, LLP and the Law Office
of Brian D. Shapiro, LLC as bankruptcy counsel, and Force Ten
Partners, LLC as financial advisor.
BIOLASE INC: Expects Fourth Quarter Revenue of $12.2M to $12.5M
---------------------------------------------------------------
BIOLASE, Inc. announced preliminary 2021 fourth quarter revenue
results that are significantly above fourth quarter revenue for
both 2020 and pre-COVID 2019. The Company will announce the
results for the fourth quarter and full year ended Dec. 31, 2021 in
the first half of March 2022.
The Company believes it is well positioned with its
industry-leading dental lasers to leverage and capitalize upon the
momentum it generated throughout 2021. Below are preliminary
fourth quarter results along with a recap of the Company's 2021 key
accomplishments and anticipated operational and product milestones
as the Company looks to execute its business plan to increase
adoption of BIOLASE's laser products by new and existing customers
and dental specialists.
Preliminary 2021 Fourth Quarter Results
* Revenue is expected to be in the range of $12.2 million to
$12.5 million, up 44% to 47% over the fourth quarter 2020 results
and up 20% to 23% over the fourth quarter 2019 pre-COVID results
* BIOLASE continued to gain momentum with new customers and
dental specialists during the quarter
* Approximately 90% of BIOLASE's sales territories were fully
staffed at the end of the quarter
* BIOLASE received approval for its new EdgePRO laser, which it
developed with EdgeEndo, a global leader in commercializing
products for the endodontics market
* Cash and cash equivalents are expected to be approximately
$30.0 million at year end, which the Company believes will be
sufficient to execute BIOLASE's multi-year growth strategy
Meaningful Accomplishments Throughout 2021
* Executed agreement with Dental Care Alliance (DCA), one of the
largest dental support organizations (DSO) in the United States
with more than 330 affiliated practices in 20 states, to expand
laser adoption and hands-on training programs in targeted
geographies
* Demonstrated leadership in creating awareness of the benefits
of laser dentistry through over 400 webinars, events, study clubs
and trainings in 2021
* Two prestigious dental journals, the International Journal of
Periodontics & Restorative Dentistry and Lasers in Medical Science,
demonstrated that BIOLASE's Waterlase Er,Cr:YSGG laser technology
can be beneficial for the management of peri-implantitis
* Strengthened balance sheet with $14M of funding to further
drive long-term growth strategy
* John Beaver, who was critical in driving the effort to
strengthen the Company's balance sheet, was named CEO and
President, and is spearheading the current growth strategy
* Launched several Specialist Communities – Waterlase Perio,
Waterlase Pediatric Dental, Waterlase Endo, and Epic Hygiene
Academies - to expand the awareness of the benefits of dental
lasers to dental specialists' communities
* Collaborated with EdgeEndo on the co-development of the
EdgePro, BIOLASE's first OEM project, and a next-generation
Laser-Assisted Microfluidic Irrigation device for endodontists
* Received FDA clearance for EdgePro, expanding the Company's
presence and relationships with the endodontists that the Company
believes will further the Company's goal of making Waterlase
technology the standard of care in endodontics
* Completed the newest version of the RAPID endo protocol, the
first update of our endo protocol since 2007
* Formed a clinical advisory partnership with Dr. L. Stephen
Buchanan to help expand laser adoption and increase hands-on
training programs with one of the global leaders in endodontics
* Appointed three new members of the Company's Board of
Directors: Drs. Kathleen T. O'Loughlin, Carol Gomez Summerhays, and
Martha Somerman
Anticipated 2022 Key Operational and Product Milestones to Position
the Company for Long-Term Growth and Success
The Company expects to:
* Continue to grow laser and consumable revenue in 2022 through
continued adoption by the dental community including general
dentists, dental specialists, dental hygienists, and group practice
entities
* Expand participation in our dental specialist and hygiene
academies to expand awareness of BIOLASE lasers
* Increase sales and marketing efforts through more education
regarding the benefits of BIOLASE technology for patients
* Enhance continued support of quality research with five
sponsored studies expected to be published in 2022
* Sign at least one more significant DSO customer in 2022
* Expand its revenue base through its OEM partnership with
EdgeEndo
"Our anticipated strong fourth quarter performance reflects the
rising demand for our industry-leading dental lasers and increased
adoption by new customers including general dentists and
specialists," commented John Beaver, president and chief executive
officer.
"Over the past 12 months, we have formed specialist academies to
expand the awareness of the benefits of our laser to dental
specialists. Specifically, we have launched specialist academies
for endodontists, periodontists, pediatric dentists, and dental
hygienists to drive further adoption of our laser technology. The
market opportunity that exists for BIOLASE within each of these
communities is very meaningful. I believe these initiatives, along
with continued success of our Waterlase Exclusive Trial Programs
and our continued penetration into the DSO market, positions us
well for significant revenue growth in 2022.
"We remain excited because only about 7% of the U.S. dental
community currently uses dental lasers, and with every one
percentage point increase in adoption of laser technology, we
estimate it can generate an additional $50 million in potential
revenue for BIOLASE," concluded Mr. Beaver.
About Biolase
BIOLASE -- http://www.biolase.com-- is a medical device company
that develops, manufactures, markets, and sells laser systems for
the dentistry and medicine industries. BIOLASE's proprietary laser
products incorporate approximately 300 patented and 35
patent-pending technologies designed to provide biologically and
clinically superior performance with less pain and faster recovery
times.
Biolase reported a net loss of $16.83 million for the year ended
Dec. 31, 2020, a net loss of $17.85 million for the year ended
Dec. 31, 2019, and a net loss of $21.52 million for the year ended
Dec. 31, 2018. As of Sept. 30, 2021, the Company had $58.51
million in total assets, $28.19 million in total liabilities, and
$30.32 million in total stockholders' equity.
CELLA III: Gets Interim OK to Hire Kelly Hart as New Counsel
------------------------------------------------------------
Cella III, LLC received interim approval from the U.S. Bankruptcy
Court for the Eastern District of Louisiana to employ Kelly Hart &
Hallman, LLP to substitute for Congeni Law Firm, LLC, the firm that
initially handled its Chapter 11 case.
The firm's services include:
a. working with the Debtor to analyze possible settlement
alternatives;
b. working with the Debtor as counsel with respect to
negotiations with secured creditor, Girod LoanCo LLC, the
preparation of settlement agreement, and representation of the
Debtor to obtain consummation of the settlement;
c. preparing legal papers and reviewing all financial reports
to be filed in the Debtor's case;
d. advising the Debtor concerning, and preparing, responses to
documents, which may be filed by other parties in the bankruptcy
court in connection with the settlement;
e. appearing in the bankruptcy court and dealing with the
consequences in case the settlement is not consummated;
f. commencing, continuing and conducting any necessary
litigation that might be required, subject to the conditions of the
settlement agreement;
g. providing documentation, as appropriate or necessary, of
corporate matters, of corporate analyses, opinions,
recommendations, conclusions and correspondence arising from or
related to the bankruptcy case; and
h. performing other legal services, which may be necessary and
proper arising from or related to the bankruptcy case, including
obtaining dismissal of the case upon consummation of the
settlement.
The hourly rates charged by the firm's attorneys and
paraprofessionals are as follows:
Partners $675 per hour
Associates $315 - $400 per hour
Paraprofessionals $100 - $200 per hour
Kelly Hart submits that it is disinterested and holds no claim or
interest adverse to the estate within the meaning of Sections
101(14) and 327 of the Bankruptcy Code, as modified by Section
1107(b) of the Bankruptcy Code.
The firm can be reached through:
Louis M. Phillips, Esq.
Kelly Hart & Hallman, LLP
One American Place
301 Main Street, Suite 1600
Baton Rouge, LA 70801-1916
Telephone: (225) 381-9643
Facsimile: (225) 336-9763
Email: louis.phillips@kellyhart.com
-- and --
Amelia L. Hurt, Esq.
Kelly Hart & Hallman, LLP
400 Poydras Street, Suite 1812
New Orleans, LA 70130
Telephone: (504) 522-1812
Facsimile: (504) 522-1813
Email: amelia.hurt@kellyhart.com
About Cella III
Cella III, LLC, a company based in Metairie, La., filed a Chapter
11 petition (Bankr. E.D. La. Case No. 19-11528) on June 5, 2019,
listing up to $50 million in assets and up to $10 million in
liabilities. George A. Cella, III, member and manager of Cella
III, signed the petition.
Judge Meredith S. Grabill oversees the case.
Louis M. Phillips, Esq., and Amelia L. Hurt, Esq., at Kelly Hart &
Hallman, LLP are the Debtor's bankruptcy attorneys.
CFX CDO: Case Summary & 11 Unsecured Creditors
----------------------------------------------
Debtor: CFX CDO Co., Inc.
f/k/a Cover FX Skin Care Inc.
228 Park Ave S
PMB 26206
New York, NY 10003-1502
Business Description: The Debtor owns and operates health and
personal care stores.
Chapter 11 Petition Date: January 11, 2022
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 22-10023
Judge: Hon. David S. Jones
Debtor's Counsel: George P. Angelich, Esq.
ARENT FOX LLP
1301 Avenue of the Americas
Floor 42
New York, NY 10019-6040
Tel: (212) 484-3900
Fax: (212) 484-3990
Email: george.angelich@arentfox.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Michael G. Long, chief financial officer
and chief operating officer.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 11 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/PL3PSYQ/CFX_CDO_Co_Inc__nysbke-22-10023__0001.0.pdf?mcid=tGE4TAMA
CFX US CO: Case Summary & 13 Unsecured Creditors
------------------------------------------------
Debtor: CFX US Co., Inc.
f/k/a Cover FX Skin Care Limited
228 Park Ave S.
PMB 26206
New York, NY 10003-1502
Business Description: The Debtor owns and operates health and
personal care stores.
Chapter 11 Petition Date: January 11, 2022
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 22-10022
Judge: Hon. David S. Jones
Debtor's Counsel: George P. Angelich, Esq.
ARENT FOX LLP
1301 Avenue of the Americas
Floor 42
New York, NY 10019-6040
Tel: (212) 484-3900
Fax: (212) 484-3990
Email: george.angelich@arentfox.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Michael G. Long, chief financial officer
and chief operating officer.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 13 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/PPURISI/CFX_US_Co_Inc__nysbke-22-10022__0001.0.pdf?mcid=tGE4TAMA
CITY BREWING: S&P Lowers ICR to 'B' On Soft Hard Seltzer Demand
---------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on La Crosse,
Wis.-based City Brewing Co. LLC (City Brewing) to 'B' from 'B+'.
S&P is concurrently lowering its issue-level rating on its $850
million senior secured term loan B to 'B' from 'B+'.
Significantly lower than expected consumer demand for hard seltzers
has created an inventory reset. S&P said, "We previously expected
continued strong hard seltzer category demand would sustain the
company's strong growth trajectory over the next few years.
Instead, category growth slowed significantly in 2021, due in part
to consumer shifts in demand toward other alternatives, including
RTD spirits. At the same time new entrants launched their own
versions of hard seltzers, including ABInbev, MolsonCoors, and
Constellation Brand. This moderation in demand, combined with a
flood of industry competition caused a significant buildup in
industry inventory, and City Brewing's impacted customers reduced
their orders for much of the second half of the year. We estimate
adjusted EBITDA will be down over 20% in 2021 from 2020 due to the
weak second half volumes, with leverage increasing to about 7x
(from the low-5x area at transaction close). This compares to our
prior expectation that EBITDA would grow over 40% and leverage
would improve to below 4x."
S&P said, "We expect customer orders for hard seltzers will pick
back up in 2022, albeit at lower levels given tempered industry
demand. City Brewing intends to fill lost volumes by expanding its
relationships with RTD spirits and functional energy customers.
However, we do not believe it will restore volumes in line with our
prior forecasts in the near term and it also will incur upfront
costs as it onboards new customers. As such, we expect leverage
will remain above 5x over the next year."
Operating performance was also affected by global supply chain
constraints, which will likely remain a challenge in 2022. As a
contract manufacturer, City Brewing benefits from pass-through
pricing on most of the costs it incurs. However, the company was
affected by reduced transportation and labor availability, and
ingredient and can shortages that increased overhead costs and
delayed production runs. While the company is focused on improving
employee retention and optimizing its supplier base, S&P expects
labor and supply chain constraints will remain headwinds in 2022.
S&P said, "After negative free operating cash flow (FOCF) in 2021,
we expect the company to turn cash flow positive next year and
believe it will continue to operate with sufficient liquidity.
Significantly lower second-half manufacturing volumes and one-time
transaction costs from recapitalization and the Irwindale facility
purchase earlier in 2021 will likely result in City Brewing
generating negative free cash flow exceeding $50 million in 2021 by
our estimates. As a result, the company drew around $30 million on
its revolver to fund the cash flow short fall in the fourth
quarter. We expect it could make an additional draw early in 2022
to fund additional capex but we believe it could fully draw on the
remaining revolver commitments without breaching its springing
7.15x net first-lien leverage covenant (we estimate the covenant
measured around 5x at fiscal year-end 2021). In addition, the
company pulled back on capital spending plans in 2021 to help
alleviate pressure on free cash flow and we expect it will further
lower capital spending to return to positive FOCF in 2022.
Nevertheless, this remains well below our prior expectations due to
lower than historical capacity utilization at its plants, higher
customer onboarding costs, and ramp-up costs associated with its
Irwindale facility.
"Our ratings on City Brewing continue to reflect its narrow focus
and vulnerability to actions of its larger customers. City is a
narrowly focused contract manufacturer of flavored malt beverage
(FMB) and RTD products. While we believe it is the largest contract
manufacturer in the market, it has historically had a significant
customer concentration (its top three customers accounted for over
75% of sales through the first half of 2021). The company's
profitability can materially weaken if its large customers
underperform or decide to take brewing in-house. This risk was
reflected in the company's 2021 performance, as its top customers
pulled back on hard seltzer orders due to weaker-than-expected
demand. We recognize that softer demand for hard seltzers, combined
with new customer wins in other categories, should help diversify
City Brewing's customer base and significantly reduce this
concentration, though we still view it as a material risk.
"The stable outlook reflects our expectation for healthy, but
slower than previously expected growth due to more moderate hard
seltzer demand. We expect that the company will gradually replace
lost volumes and improve capacity utilization through new customer
wins in RTD spirits and functional energy drinks, but that credit
metrics will remain highly leveraged over the next year, including
debt to EBITDA above 5x."
S&P could lower its rating on City Brewing if it fails to grow
profitability, keeping leverage above 7x. This could occur if:
-- Onboarding new customers takes longer than anticipated or is
more costly than expected, keeping plant utilization rates down;
-- Key customers decide to bring production in-house;
-- Costs to ramp up production at its Irwindale facility are
higher than expected; or
-- Supply chain constraints persist, disrupting operations.
S&P could raise its rating on City Brewing if it improves and
sustains leverage below 5x while generating healthy free cash flow.
This could occur if:
-- The hard seltzer category recovers faster than expected;
-- The company fully recovers lost production volume through new
customer relationships while prudently managing onboarding costs;
and
-- It successfully manages the ramp up of its Irwindale facility.
CLASSIC CATERING: Unsecureds to be Paid in Full in 24 Months
------------------------------------------------------------
Classic Catering Inc. filed with the U.S. Bankruptcy Court for the
Northern District of Alabama a First Amended Disclosure Statement
describing Plan of Reorganization dated Jan. 4, 2022.
Robert David Mashburn and Cathryn Lanell Mashburn started catering
out of their home kitchen in the early 1990s. In 1999 the Mashburns
incorporated their catering business as Classic Catering, Inc. and
they bought the building on Noble Street where the Debtor's
restaurant is currently located with a loan through SouthTrust
Bank.
The Debtor sought relief under Chapter 11 to restructure debt
repayment so as to accomplish the purpose of relieving the Debtor
from a problem with meeting payments to creditors due to issues
related to family issues arising from over expansion, illness in
the owners' family and bad business decisions which were aggravated
by COVID.
The Mashburns paid the loan in a timely manner until just before
the Debtor filed for Chapter 11 bankruptcy. The Debtor elected to
file for Chapter 11 bankruptcy because at the end of an additional
2 years of payments plus the $50,000 previously paid, Willow River
wanted the Mashburns to add their home as collateral for the LBC1
Trust loan just to get an extension of another 18 months. The
Mashburn believed it was time to address the loan on a more
permanent basis.
Cathryn Mashburn and Crystal Mashburn have taken over the day to
day operations of the business and have concentrated on the core
businesses of the restaurant and catering. The Debtor believes that
this concentration has improved the functionality and profitability
of the business even with the effects of COVID.
The Debtor shall pay all allowed secured claims as follows:
* The Alabama Department of Revenue filed Proof of Claim 1-1
alleging to be secured in the amount of $77,728.65. The Debtor
proposes to pay this claim in full with 3.0% per annum interest in
120 monthly installment payments of $750.55.
* The Internal Revenue Service filed Proof of Claim 2-2
alleging to be secured in the amount of $98,132.14. The Debtor
proposes to pay this claim in full with 3.0% per annum interest in
120 monthly installment payments of $947.57.
The Debtor estimates that the unsecured claims total $2,739.42.
Each allowed unsecured claim will be issued an unsecured note. Each
allowed claim shall be paid in full with 3.0% per annum interest by
issuance of a note in the amount of the allowed claim providing for
monthly payments in an amount equal to its pro rata share of 24
monthly installments totaling $117.74. The first monthly
installment payment shall be due 30 days after the effective date
of the Plan.
The equity security holders, Robert David Mashburn and Cathryn
Lanell Mashburn, are the one hundred percent owners of the Debtor.
They shall retain all their equity interests in the Debtor. They
shall receive nothing for their equity interest unless all
creditors are paid or otherwise satisfied in full as provided by
the Debtor's Plan of Reorganization.
A full-text copy of the First Amended Disclosure Statement dated
Jan. 04, 2022, is available at https://bit.ly/3ndvP9Y from
PacerMonitor.com at no charge.
Attorney for Debtor:
Harry P. Long
Post Office Box 1468
Anniston, Alabama 36202
(256)237-3266
Email: hlonglegal8@gmail.com
About Classic Catering
Classic Catering, Inc., sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Ala. Case No. 21-40569-11) on
June 9, 2021. In the petition signed by Cathryn L. Mashburn,
secretary, the Debtor disclosed up to $100,000 in assets and up to
$500,000 in liabilities.
Judge James J. Robinson oversees the case.
Harry P. Long, Esq., at the Law Offices of Harry P. Long, LLC, is
the Debtor's counsel.
CLUBHOUSE MEDIA: Gary Marenzi Quits as Director
-----------------------------------------------
Gary Marenzi resigned from his position as a member of the board of
directors of Clubhouse Media Group, Inc. effective Jan. 4, 2022.
Mr. Marenzi's resignation is not the result of any disagreement
with the company on any matter relating to the company's
operations, policies or practices, as disclosed in a Form 8-K filed
with the Securities and Exchange Commission.
About Clubhouse Media
Las Vegas, Nevada-based Clubhouse Media Group, Inc. operates a
global network of professionally run content houses, each of which
has its own brand, influencer cohort and production capabilities.
The Company offers management, production and deal-making services
to its handpicked influencers, a management division for individual
influencer clients, and an investment arm for joint ventures and
acquisitions for companies in the social media influencer space.
Its management team consists of successful entrepreneurs with
financial, legal, marketing, and digital content creation
expertise.
Clubhouse Media reported a net loss of $2.58 million for the year
ended Dec. 31, 2020, compared to a net loss of $74,764 for the year
ended Dec. 31, 2019. As of Sept. 30, 2021, the Company had $1.70
million in total assets, $7.95 million in total liabilities, and a
total stockholders' deficit of $6.25 million.
Spokane, Washington-based Fruci & Associates II, PLLC, the
Company's auditor since 2020, issued a "going concern"
qualification in its report dated March 15, 2021, citing that the
Company has net losses and negative working capital. These factors
raise substantial doubt about the Company's ability to continue as
a going concern.
COMFORT JET: Files for Chapter 15 Amid Isle of Man Liquidation
--------------------------------------------------------------
Liquidators of Comfort Jet Aviation, Ltd., filed a Chapter 15
bankruptcy petition in the U.S. to seek recognition of the
company's liquidation proceedings in the Isle of Man.
CJA, based in Douglas, Isle of Man, was in the business of managing
and operating aircraft.
On Oct. 1, 2021, the contributories and creditors of CJA
unanimously voted to appoint a liquidator to wind up CJA's
affairs.
Andrew Paul Shimmin, the founding partner of Shimmin Wilson,
Chartered Accountants, was named liquidator of CJA.
Mr. Shimmin is (1) in sole control of CJA for the purpose of
winding up its affairs, (2) collect all monies and accounts owed to
CJA, (3) have authority to direct CJA in all legal matters or
proceedings relating to CJA and CJA's property, and (4) have
authority to market and sell CJA's property for the benefit of its
creditors.
The liquidation is an administrative proceeding under legal
doctrines arising under the common law of the Isle of Man related
to insolvency.
On Dec. 16 and 17, the Liquidator attended mediation in a case
which is pending in the U.S. District Court for the Western
District of Oklahoma, Insured Aircraft Title Service, LLC, vs.
Comfort Jet Aviation Ltd., et al., Case No. 5:20-cv-00742. The
mediator was an attorney in Oklahoma City, Mr. Gary Chilton, Esq.
The parties were unable to resolve the case.
About Comfort Jet Aviation
Comfort Jet Aviation, Ltd., filed a Chapter 15 petition (Bankr.
W.D. Okla. Case No. 22-10039) on Jan. 11, 2022. Andrew Paul
Shimmin at Shimmin Wilson, Chartered Accountants, who was appointed
as as liquidator in the Isle of Man proceedings, signed the
petition. Douglas A. Rice, Esq., at DERRYBERRY & NAIFEH, LLP, is
the U.S. counsel.
CROWN JEWEL: Seeks to Tap Cushman & Wakefield as Broker
-------------------------------------------------------
Crown Jewel Properties, LLC seeks approval from the U.S. Bankruptcy
Court for the Central District of California to employ Cushman &
Wakefield of California, Inc. as its broker.
The Debtor needs the assistance of a broker to secure a commitment
or commitments for financing for its property located in Northern
San Diego County, Calif.
The Debtor has agreed to pay an advisory fee in an amount equal to
2 percent of the amount of an accepted financial offer.
Ben Schwartz, a member of Cushman & Wakefield, disclosed in a court
filing that the firm is a "disinterested person" as that term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Ben Schwartz
Cushman & Wakefield of California, Inc.
4747 Executive Dr, 9th Floor
San Diego, CA 92121
Telephone: (858) 452-6500
Email: ben.schwartz@cushwake.com
About Crown Jewel Properties
Crown Jewel Properties, LLC is a single asset real estate debtor
(as defined in 11 U.S.C. Section 101(51B)) based in Signal Hill,
Calif.
Crown Jewel Properties filed its voluntary petition for Chapter 11
protection (Bankr. C.D. Calif. Case No. 21-17872) on Oct. 12, 2021,
listing up to $50 million in assets and up to $10 million in
liabilities. James Eleopoulos, managing member, signed the
petition.
Judge Neil W. Bason presides over the case.
Douglas M. Neistat, Esq., at G&B Law, LLP represents the Debtor as
legal counsel.
CYPRESS CREEK: Seeks to Hire CBRE Inc. as Real Estate Advisor
-------------------------------------------------------------
Cypress Creek Emergency Medical Services Association seeks approval
from the U.S. Bankruptcy Court for the Southern District of Texas
to hire CBRE Inc., a Houston-based real estate services firm.
CBRE has agreed to provide the Debtor with real estate advisory and
broker services pursuant to the terms set forth in six listing
agreements. One list agreement is for the firm to secure a sale
and lease back arrangement for the Debtor's main campus located at
7111 Five Forks Road. The other five listing agreements relate to
the potential sale of the properties located at (i) 20225 Stuebner
Airline Road; (ii) 20820 Lee Road; (iii) 20923 Holzworth Road; (iv)
3308 Treaschwig Road; and (v) 13603 Perry Road.
CBRE will get a commission of 6 percent of the gross sales price.
Steve King of CBRE disclosed in a court filing that he and his firm
neither hold nor represent any interest adverse to the Debtor's
estate.
The firm can be reached through:
Steve King
CBRE, Inc.
2800 Post Oak Blvd., Suite 500
Houston, TX 77056
Tel: +1 713 577 1617
Mobile: +1 281 546 6440
Email: steve.king@cbre.com
About Cypress Creek
Cypress Creek Emergency Medical Services Association is an
emergency medical service provider based in Spring, Texas.
Cypress Creek filed a petition for Chapter 11 protection (Bankr.
S.D. Texas Case No. 21-33733) on Nov. 18, 2021, listing as much as
$10 million in both assets and liabilities. Wren Nealy, Jr., chief
executive officer, signed the petition.
Judge Christopher M. Lopez oversees the case.
The Debtor tapped Annie Catmull, Esq., at O'Connorwesler, PLLC as
legal counsel; J. Patrick Magill of Magill, PC as chief
restructuring officer; and CBRE Inc. as real estate advisor.
EDWARD EADES: Gets OK to Hire Samaniego & Associates as Accountant
------------------------------------------------------------------
Edward Eades, MD, PC received approval from the U.S. Bankruptcy
Court for the District of Arizona to employ Samaniego & Associates
CPAs, PLLC as its accountant and financial consultant.
The firm's services include:
a. preparing and filing all necessary bankruptcy statements
and reports;
b. assisting with other tasks and guidance for finance and
operations of the Debtor;
c. assisting the Debtor's estate in recovery or damage
litigation;
d. assisting the Debtor in all financial matters relating to
its Chapter 11 case; and
e. providing other necessary accounting services.
The firm will be paid as follows:
a. $320 per month for the preparation of financial statements,
including the balance sheet as of Dec. 31, 2022 and the related
statement of income.
b. $1,900 flat fee for the preparation and filing of corporate
tax returns for the tax year 2021.
c. $200 an hour for accounting services.
d. Reimbursement in full for all work-related expenses.
As disclosed in court filings, Samaniego & Associates does not
represent any other entity having an adverse interest in connection
with the Debtor's bankruptcy case.
The firm can be reached through:
Alex Samaniego, CPA
Samaniego & Associates CPAs, PLLC
7467 E. Broadway Blvd
Tucson, AZ 85710-1410
Tel: (520) 885-6694
Email: alex@saatax.cpa
About Eades Edward MD PC
Eades Edward, M.D., P.C. filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Case No.
21-08572) on Nov. 19, 2021, listing up to $50,000 in both assets
and liabilities. Edward Eades, member and manager, signed the
petition.
Judge Scott H. Gan oversees the case.
The Debtor tapped D. Alexander Winkelman, Esq., at Mesch Clark
Rothschild as its legal counsel, and Samaniego & Associates CPAs,
PLLC as its accountant.
EL JEBOWL: Seeks to Tap Wadsworth as Bankruptcy Counsel
-------------------------------------------------------
El Jebowl, LLC seeks approval from the U.S. Bankruptcy Court for
the District of Colorado to employ Wadsworth Garber Warner
Conrardy, PC as its bankruptcy counsel.
The firm will render these legal services:
(a) advise the Debtor regarding its powers and duties;
(b) assist the Debtor in the development of a plan of
reorganization under Chapter 11;
(c) file the necessary pleadings, reports and actions, which
may be required under Chapter 11;
(d) take necessary actions to enjoin and stay until final
decree continuation of pending proceedings and to enjoin and stay
until final decree commencement of lien foreclosure proceedings;
and
(e) perform all other necessary legal services for the
Debtor.
The hourly rates of the firm's attorneys and staff are as follows:
David V. Wadsworth $450 (reduced to $375)
Aaron A. Garber $450
David J. Warner $375
Aaron J. Conrardy $375
Lindsay Riley $300
Anthony Camera $200
Paralegals $115
The Law Offices of Kevin S. Neiman, the Debtor's co-bankruptcy
counsel, will provide Wadsworth Garber Warner Conrardy a retainer
in the amount of $12,500, subject to court approval.
Aaron Garber, Esq., a partner at Wadsworth Garber Warner Conrardy,
disclosed in a court filing that the firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Aaron A. Garber, Esq.
Wadsworth Garber Warner Conrardy, PC
2580 West Main Street, Suite 200
Littleton, CO 80120
Telephone: (303) 296-1999
Facsimile: (303) 296-7600
Email: agarber@wgwc-law.com
About El Jebowl LLC
El Jebowl, LLC sought Chapter 11 protection (Bankr. D. Colo. Case
No. 22-10004) on Jan. 2, 2022, listing up to $100,000 in assets and
up to $500,000 in liabilities. Judge Thomas B. McNamara oversees
the case.
The Law Offices of Kevin S. Neiman, PC and Wadsworth Garber Warner
Conrardy, PC serve as the Debtor's bankruptcy counsel.
FAMOUS ANTHONY'S BROOKSIDE: Seeks Approval to Hire Legal Counsel
----------------------------------------------------------------
Famous Anthony's Brookside, Inc. seeks approval from the U.S.
Bankruptcy Court for the Western District of Virginia to employ
Magee Goldstein Lasky & Sayers, PC as its legal counsel.
The firm will render these legal services:
(a) advise the Debtor regarding its powers and duties in the
continued management and operation of its business and properties;
(b) advise and consult on the conduct of the Debtor's Chapter
11 case;
(c) attend meetings and negotiate with representatives of the
Debtor's creditors and other parties-in-interest;
(d) take all necessary action to protect and preserve the
Debtor's estate;
(e) prepare legal papers;
(f) represent the Debtor in connection with obtaining
post-petition financing, if necessary;
(g) advise the Debtor in connection with any potential sale of
assets;
(h) appear before the court;
(i) take any necessary action to negotiate, prepare and obtain
approval of a Chapter 11 plan and documents related thereto; and
(j) perform all other necessary or otherwise beneficial legal
services to the Debtor in connection with the prosecution of this
bankruptcy case.
On or about Dec. 6, 2021, the firm received a retainer of $6,818,
which was used for pre-bankruptcy services.
The hourly rates of the firm's attorneys and staff are as follows:
Attorneys $250 - $400
Paralegals/Paraprofessionals $115
In addition, the firm will seek reimbursement for expenses
incurred.
As of the petition date, the firm holds a retainer in the amount of
$5,297.
Andrew Goldstein, Esq., president of Magee Goldstein Lasky &
Sayers, disclosed in a court filing that the firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Andrew S. Goldstein, Esq.
Magee Goldstein Lasky & Sayers, PC
P.O. Box 404
Roanoke, VA 24003-0404
Telephone: (540) 343-9800
Facsimile: (540) 343-9898
Email: agoldstein@mglspc.com
About Famous Anthony's Brookside
Famous Anthony's Brookside, Inc. sought Chapter 11 protection
(Bankr. W.D. Va. Case No. 22-70009) on Jan. 10, 2022, listing up to
$50,000 in both assets and liabilities. Tony Triplette, president,
signed the petition. Magee Goldstein Lasky & Sayers, PC serves as
the Debtor's legal counsel.
FAMOUS ANTHONY'S: Seeks to Tap Magee Goldstein Lasky as Counsel
---------------------------------------------------------------
Famous Anthony's, Inc. seeks approval from the U.S. Bankruptcy
Court for the Western District of Virginia to employ Magee
Goldstein Lasky & Sayers, PC as its legal counsel.
The firm will render these legal services:
(a) advise the Debtor regarding its powers and duties in the
continued management and operation of its business and properties;
(b) advise and consult on the conduct of the Debtor's Chapter
11 case;
(c) attend meetings and negotiate with representatives of the
Debtor's creditors and other parties-in-interest;
(d) take all necessary action to protect and preserve the
Debtor's estate;
(e) prepare legal papers;
(f) represent the Debtor in connection with obtaining
post-petition financing, if necessary;
(g) advise the Debtor in connection with any potential sale of
assets;
(h) appear before the court;
(i) take any necessary action to negotiate, prepare and obtain
approval of a Chapter 11 plan and documents related thereto; and
(j) perform all other necessary or otherwise beneficial legal
services to the Debtor in connection with the prosecution of this
bankruptcy case.
On or about Dec. 6, 2021, the firm received a retainer of $6,818,
which was used for pre-bankruptcy services.
The hourly rates of the firm's attorneys and staff are as follows:
Attorneys $250 - $400
Paralegals/Paraprofessionals $115
In addition, the firm will seek reimbursement for expenses
incurred.
As of the petition date, the firm holds a retainer in the amount of
$4,050.
Andrew Goldstein, Esq., president of Magee Goldstein Lasky &
Sayers, disclosed in a court filing that the firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Andrew S. Goldstein, Esq.
Magee Goldstein Lasky & Sayers, PC
P.O. Box 404
Roanoke, VA 24003-0404
Telephone: (540) 343-9800
Facsimile: (540) 343-9898
Email: agoldstein@mglspc.com
About Famous Anthony's Inc.
Famous Anthony's, Inc. sought Chapter 11 protection (Bankr. W.D.
Va. Case No. 22-70010) on Jan. 10, 2022, listing up to $50,000 in
both assets and liabilities. Tony Triplette, president, signed the
petition. Magee Goldstein Lasky & Sayers, PC serves as the
Debtor's legal counsel.
GLOBAL NET: Fitch Affirms 'BB+' LT IDR, Outlook Stable
------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Ratings
(IDRs) of 'BB+' for Global Net Lease, Inc. (GNL) and Global Net
Lease Operating Partnership L.P. The Rating Outlook is Stable.
Fitch has also assigned a 'BB+' rating to Global Net Lease, Inc.'s
senior unsecured notes co-issued by the companies.
The ratings reflect GNL's strong rental income risk profile and
globally diversified portfolio of industrial and office properties
leased to high credit quality tenants under long-term, triple-net
leases. The Stable Outlook anticipates that GNL's credit metrics
will remain appropriate for a 'BB+' rating through the rating
horizon.
These positive factors are balanced by GNL's focus on properties in
secondary and tertiary markets, weak relative unencumbered asset
coverage of unsecured debt (UA/UD) and less established capital
access, including unsecured bonds. GNL's external management
structure is a modest credit negative that could hamper its ability
to raise attractively priced equity and execute its acquisition-led
growth strategy within its financial policy targets.
KEY RATING DRIVERS
Solid Performance through the Pandemic: GNL's investment grade
tenant exposure, industrial and office focus, and solid
underwriting underpin the strong collections during the pandemic.
The company maintained collections at or above 97% each quarter in
2020, and as of Sept. 30, 2021, GNL's rent collections have
returned to pre-pandemic levels at nearly 100% for the fourth
consecutive quarter. Although the company's exposure to rated
investment grade tenants has declined in recent years to 31% in
3Q21 from 39% in 4Q18, the collections performance during 2020
suggests its acquisition underwriting process has adequately
assessed tenant credit risk, to-date.
Tenant Quality Balances Moderate Concentration: GNL's tenant roster
is moderately concentrated, with the top 10 tenants comprising 33%
of annualized straight line rent at Sept. 30, 2021. Fitch views
this level of U.S. equity REIT tenant concentration as consistent
with high speculative grade ratings, all else equal. McLaren Group
is the company's largest tenant at 6% of annualized straight-line
rent, followed by Fedex (4%), and Whirlpool (4%).
GNL has 134 tenants that operate in 48 industries, of which 31% are
rated investment grade by one of the three major credit rating
agencies (including Fitch). The company estimates an additional 24%
of tenants at an implied investment grade rating, based on parent
guarantees or implied by financial metrics. This combined 55%
exposure has steadily declined from 78% in 4Q18, but the decline
did not appear to have a major impact on rent collections during
the pandemic. The U.S. economic recovery should provide some uplift
to GNL's tenant credit quality as balance sheets improve.
Alternatively, acquisitions of properties leased to unrated tenants
could drive the company's IG percentage lower.
Granular Portfolio Mitigates Single Tenant Risk: GNL's portfolio
strategy focus on single tenant assets, versus multi-tenant assets
more typical of industrial REIT strategies, creates binary
occupancy risk; each building is either 100% leased or 0% leased.
This risk generally results in less institutional competition for
the asset type, and other players in the space tend not to be as
sophisticated or well-capitalized as typical institutional buyers,
which can create enhanced pricing and return potential. REITs can
partially mitigate single tenant risk through portfolio
diversification, in contrast to smaller, weaker capitalized local
owners with fewer assets. No single asset comprises more than 10%
of GNL's annualized rents.
Elevated Leverage to Improve: Fitch expects GNL' s leverage (net
debt to EBITDA) to sustain at 7x on a quarterly run rate basis by
2023. Current leverage is elevated due to a number of large
acquisitions that closed near the end of period; however, the
annualized income contribution from recent purchases and additional
equity issuance with acquisitions should return leverage to
historical levels.
Long-Term Leases: GNL's weighted average lease term of 8.2 years is
lower than the net lease peer average of approximately 10 years but
high compared to the broader REIT peer group, including focused
office and industrial REITs. The company's lease expiration
schedule is well balanced, with some lease maturity concentration
in 2024 and 2025 when 11%, and 9% of rent expires.
Externally Managed: Fitch views GNL'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. GNL is managed by AR Global, a
specialized real estate manager with $12 billion of assets under
management (AUM). Positively, GNL's management agreement
incentivizes AFFO per share growth and equity issuance, is subject
to annual caps and declines based on AUM, and includes a
stock-based component.
DERIVATION SUMMARY
Fitch expects GNL to maintain a globally diversified,
acquisition-led portfolio growth strategy, with an emphasis on
growing its industrial portfolio in the U.S. and Europe. GNL's
portfolio is diversified by geography and property type but is
smaller and less granular than its triple-net U.S. equity REIT
peers.
GNL's strong portfolio quality and rental income risk profile are
balanced by its short operating history, less developed capital
access, weaker credit metrics, and external management structure.
The company's credit metrics, including leverage expected to
sustain at 7x and UA/UD sub 2x are weaker than 'BBB' category peers
including Lexington Property Trust (BBB/Stable), with sub-5x
leverage and UA/UD in the high-2x, and STAG Industrial
(BBB/Stable), with low-5x leverage and UA/UD in the mid-2x. GNL's
credit metrics are expected to be similar to peer American Finance
Trust (BB+/Negative), a triple-net peer (also externally managed by
AR Global) with a focus in retail real estate.
GNL's capital access is also less established than higher rated
investment grade U.S. Equity REIT peers. Fitch expects GNL to
transition to a primarily unsecured borrowing strategy in the
near-to-medium term, primarily by using proceeds from unsecured
private placement notes issuances to repay secured mortgage
borrowings. GNL shares trade at a wide (about 35%) discount to
consensus NAV estimates, which could temper equity issuance to fund
acquisitions.
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. 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). Fitch includes preferred stock when calculating certain
metrics.
KEY ASSUMPTIONS
-- Low single-digit SSNOI through the forecast period, with
occupancy staying around 99%;
-- Net acquisitions of $400M in 2021 and $450M 2022 through 2024;
-- Equity issuances funding roughly 50% of acquisitions through
forecast period;
-- Senior unsecured notes issuances in 2023 and 2024 as well as
refinancing of mortgage payables in 2021-2024.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Unencumbered assets to unsecured debt (UA/UD) at or above
2.0x;
-- Greater demonstrated access to unsecured debt capital,
including private placement notes;
-- REIT leverage (net debt to recurring operating EBITDA)
sustaining below 7x;
-- Increased portfolio scale and/or portfolio exposure to less
capital-intensive industrial properties.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- UA/UD sustaining at or below 1.5x;
-- REIT leverage (net debt to recurring operating EBITDA)
sustaining above 8x;
-- 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
Fitch estimates GNL's liquidity coverage through fiscal YE 2023 at
roughly 3x, assuming 80% of secured debt is refinanced. As of Sept.
30, 2021, the company had $176.4 million of readily available cash
and $104.0 million available under the revolving credit facility.
The credit facility consists of two components, an $835 senior
unsecured revolving credit facility and a senior unsecured term
loan facility. The availability of borrowings under the revolver is
based on the value of a pool of eligible unencumbered real estate
assets and compliance with various ratios related to those assets.
Fitch estimates GNL's unencumbered asset coverage of net unsecured
debt at 1.9x based on a stressed, blended cap rate of 9.1%, which
is slightly below the common 2.0x threshold for investment grade
U.S. equity REITs. Positively, the company's unencumbered pool is
more heavily concentrated in the strong performing industrial
property sector. The company's existing secured mortgage debt
suggests healthy secured lender demand for its assets.
The company has established and used at-the-market (ATM) issuance
programs for common and preferred stock, which Fitch views
favorably. However, GNL shares trade at a wide (roughly 35%)
discount to consensus NAV estimates, which could temper equity
issuance used 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
GNL is a publicly traded REIT that owns, acquires and manages a
diversified global portfolio of office, industrial and retail
properties. It focuses on sale-leaseback transactions involving
single tenant, mission critical income producing net-leased assets
across the U.S. and Western and Northern Europe.
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.
GPMI CO: Gets OK to Hire Engelman Berger as Bankruptcy Counsel
--------------------------------------------------------------
GPMI, Co. received approval from the U.S. Bankruptcy Court for the
District of Arizona to employ Engelman Berger, PC as its legal
counsel.
Engelman Berger will render these legal services:
(a) advise the Debtor regarding its powers and duties in the
continued management and operation of its business and property;
(b) represent the Debtor at the first meeting of creditors,
initial debtor interview and all court hearings, adversary
proceedings or contested matters that have been or may be filed;
(c) attend meetings and negotiate with representatives of
creditors and other parties-in-interest and advise and consult on
the conduct of the Debtor's Chapter 11 case;
(d) assist the Debtor with the preparation of its schedules of
assets and liabilities and statement of financial affairs;
(e) advise the Debtor with respect to any contemplated sales
of assets or business combinations, formulate and implement
appropriate closing procedures for such transactions, and prepare
and prosecute all motions or pleadings necessary to obtain the
court's authorization for such transactions;
(f) advise the Debtor with respect to any post-petition
financing and cash collateral arrangements, and negotiate, draft
and prosecute all documents, motions and pleadings relating
thereto;
(g) advise the Debtor on all matters relating to the
assumption, rejection or assignment of unexpired leases and
executory contracts;
(h) advise the Debtor with respect to legal issues arising in
or relating to the Debtor's ordinary course of business;
(i) take all necessary action to protect and preserve the
Debtor's estate;
(j) prepare, negotiate and take all actions necessary to
obtain approval or confirmation of a disclosure statement, plan of
reorganization and related agreements and documents; and
(k) perform all other legal services relating to the
administration and conduct of the Debtor's estate.
The hourly rates of the firm's attorneys and staff are as follows:
Steven N. Berger $600
Other Shareholders $375 – $600
Associates $250 – $350
Cindy K. Solomon, Certified Paralegal $200
In addition, the firm will seek reimbursement for expenses
incurred.
As of the petition date, the firm holds a remaining retainer
balance of $66,749.
Steven Berger, Esq., an attorney at Engelman Berger, disclosed in a
court filing that the firm is a "disinterested person" as that term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Steven N. Berger, Esq.
Patrick A. Clisham, Esq.
Michael P. Rolland, Esq.
Engelman Berger, PC
2800 North Central Avenue, Suite 1200
Phoenix, AZ 85004
Telephone: (602) 271-9090
Facsimile: (602) 222-4999
Email: snb@eblawyers.com
pac@eblawyers.com
mpr@eblawyers.com
About GPMI Co.
GPMI, Co. is engaged in developing new concepts, innovating
products, program development, and marketing. It is an
Arizona-based company established in 1989, with production
facilities in multiple United States locations.
GPMI filed its voluntary petition for relief under Chapter 11 of
the Bankruptcy Code (Bankr. D. Ariz. Case No. 22-00150) on Jan. 10,
2022, listing $10 million to $50 million in both assets and
liabilities. Yarron Bendor, president, signed the petition.
Judge Eddward P. Ballinger Jr. oversees the case.
Engelman Berger, PC serves as the Debtor's legal counsel.
HARRY'S HOT DOGS: Seeks to Hire Shafferman & Feldman as Counsel
---------------------------------------------------------------
Harry's Hot Dogs of Bay Plaza, LLC seeks approval from the U.S.
Bankruptcy Court for the Southern District of New York to hire
Shafferman & Feldman, LLP to provide legal services in connection
with its Chapter 11 case.
The firm's services include:
(a) providing advice to the Debtor with respect to its powers
and duties under the Bankruptcy Code in the continued operation of
its business and the management of its property;
(b) negotiating with creditors of the Debtor, preparing a plan
of reorganization and taking the necessary legal steps to
consummate a plan, including, if necessary, negotiations with
respect to financing a plan;
(c) appearing before various taxing authorities to work out a
plan to pay taxes owing in installments;
(d) preparing legal documents and appearing before the court;
and
(e) performing all other necessary legal services for the
Debtor.
Joel Shafferman, Esq., is the attorney at Shafferman & Feldman who
will be representing the Debtor in its bankruptcy case. His billing
rate is $425 an hour.
The firm received a retainer in the amount of $9,238 (inclusive of
the filing fee) from Michael Tulchiner, the managing member.
As disclosed in court filings, Shafferman & Feldman is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Joel M. Shafferman, Esq.
Shafferman & Feldman, LLP
137 Fifth Avenue, 9th Floor
New York, NY 10010
Tel: (212) 509-1802
Fax: (212) 509-1831
Email: shaffermanjoel@gmail.com
About Harry's Hot Dogs of Bay Plaza
Harry's Hot Dogs of Bay Plaza, LLC, a company based in Bronx, N.Y.,
filed its voluntary petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 21-12141) on Dec. 29,
2021, listing $76,269 in assets and $1,363,048 in liabilities.
Michael Tulchiner, managing member of Harry's, signed the petition.
Joel M. Shafferman, Esq., at Shafferman & Feldman, LLP represents
the Debtor as legal counsel.
HAVEN FORT MYERS: SBA Opposes Subchapter V Plan
-----------------------------------------------
The United States of America, on behalf of the U.S. Small Business
Administration ("SBA"), objects to the Subchapter V Plan of debtor
Haven Fort Myers, LLC.
The SBA filed a proof of claim on Sept. 9, 2021, listing a secured
claim of $156,364.73. (Claim 1-1.) The SBA's secured claim is
evidenced by a Form UCC-1 dated June 18, 2020. (Claim 1-1, Part 2
at 7.) Because the debtor did not object to Claim No. 1-1, it is
deemed allowed under 11 U.S.C. Sec. 502(a).
The Debtor's Plan filed Nov. 17, 2021, provides for the following
payment schedule regarding the SBA's claim: "The [SBA's] claim
shall be paid in equal monthly installments over forty-eight
months, with a balloon payment on the sixtieth month."
The SBA asserts that the Plan's failure to provide for payments
after 48 months until a final balloon payment in month 60 is
unreasonable under 11 U.S.C. Sec. 1129(a)(4). Moreover, the Plan
unfairly discriminates against SBA and is not fair and equitable
under 11 U.S.C. Sec. 1129(b)(1), as the unsecured claim of Bell
Tower Shops, LLC is paid in equal monthly installments over
twenty-four months.
SBA objects to the Article 7.3 -- which provides that an
unnegotiated check shall eliminate the debtor's entire debt -- as
not fair and equitable under 11 U.S.C. Sec. 1129(b)(1).
A full-text copy of the SBA's objection dated Jan. 3, 2022, is
available at https://bit.ly/33bqKrQ from PacerMonitor.com at no
charge.
About Haven Fort Myers
Fort Myers, Fla.-based Haven Fort Myers, LLC filed its voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
M.D. Fla. Case No. 21-00989) on July 29, 2021, listing as much as
$10 million in both assets and liabilities. Chittranjan Thakkar,
managing member, signed the petition. Edmund S. Whitson, III,
Esq., at Adams and Reese, LLP, represents the Debtor as legal
counsel.
HERITAGE RAIL: Feb. 17 Disclosure Statement Hearing Set
-------------------------------------------------------
Judge Thomas B. McNamara has entered an order within which Feb. 17,
2022, in Courtroom E, United States Bankruptcy Court for the
District of Colorado, United States Custom House, 721 19th Street,
Denver, Colorado is the hearing to consider the adequacy of and to
approve the Disclosure Statement of Debtor Heritage Rail Leasing,
LLC.
In addition, objections to the Disclosure Statement shall be filed
and served not less than 10 days prior to the Hearing.
A copy of the order dated Jan. 3, 2022, is available at
https://bit.ly/31NHRzu from PacerMonitor.com at no charge.
About Heritage Rail Leasing
Heritage Rail Leasing, LLC, leases rail rolling stocks, locomotives
and track equipment.
On Aug. 21, 2020, Portland Vancouver Junction & Railroad Inc.,
Vizion Marketing LLC and D.L. Paradeau Marketing LLC filed a
Chapter 11 involuntary petition against Heritage Rail Leasing. The
creditors are represented by Michael J. Pankow, Esq., at Brownstein
Hyatt Farber Schreck, LLP.
Judge Thomas B. McNamara oversees the case. L&G Law Group LLP and
Moglia Advisors serve as the Debtor's legal counsel and
restructuring advisor, respectively. Alex Moglia of Moglia
Advisors is the Debtor's chief restructuring officer.
On Oct. 19, 2020, the Office of the U.S. Trustee appointed a
committee to represent unsecured creditors in the Debtor's Chapter
11 case. The committee is represented by Goldstein & McClintock
LLLP and the Law Offices of Douglas T. Tabachnik, P.C.
On Oct. 28, 2020, the Court approved the appointment of Tom H.
Connolly as the Debtor's Chapter 11 trustee. The trustee tapped
Brownstein Hyatt Farber Schreck, LLP as his counsel.
HOLOGENIX LLC: Unsec. Creditors to Get Share of Income for 3 Years
------------------------------------------------------------------
Hologenix, LLC, filed with the U.S. Bankruptcy Court for the
Central District of California a Plan of Reorganization under
Subchapter V dated Jan. 04, 2022.
The Debtor was formed as a Delaware limited liability company in
2002. The Debtor's business is the scientific development and
manufacture of a product for use in various consumer products,
including, but not limited to, athletic wear, athleisure wear,
bedding as well as residential and commercial furniture.
The state of world health and economic affairs and the global
recession had a material impact on the Debtor's accounts receivable
collection and future revenue projections for many months. The
Debtor determined in its reasonable business judgment that it was
in the best interest of its estate to file this current bankruptcy
case to preserve the going-concern value of its business and save
the jobs of its employees. The Debtor has proposed this Plan to
repay its creditors in accordance with the Plan's terms.
Class 1 comprised of the allowed secured claims of The Northern
Trust Company of Delaware as Trustee of the Seth Casden Resulting
Trust and The Northern Trust Company of Delaware as Trustee of the
Graham Casden Resulting Trust (collectively, "Northern Trust").
Class 1 shall have an allowed secured claim in the amount of
$1,000,000.00 principle, plus accrued unpaid interest projected as
of the Effective Date to be $80,000. Class 1 shall receive payment
in the amount of $10,000 quarterly with November 15, 2025 as the
projected final payment date.
Class 2 comprised of the allowed secured claims Seth Casden, for
himself and as collateral agent (collectively, "Collateral Agent"),
in the total amount of $2,510,721.21 and shared pari passu among
secured creditors Alvaro Pascotto Revocable Trust, Julien Born and
Murali Sundar.
Class 2 shall have an allowed secured claim in the amount of
$2,166,333.00 principle, plus accrued unpaid interest projected as
of the Effective Date to be $394,388.21. Class 2 creditors will not
receive any payments under the Plan during the life of the Plan on
account of their Class 2 claims. Class 2 creditors will maintain
their claims and liens and interest will continue to accrue but be
unpaid for the life of the Plan.
Class 3 consists of all non-insider general unsecured claims of the
Debtor not included in any other class. Total amount of class 3
claims is $4,015,717.61. Each holder of a class 3 allowed claim
will receive a cash payment equal to its prorated share of the
Debtor's net disposable income over the life of the three-year Plan
commencing as of the Effective Date (the "Net Disposable Income"),
and upon confirmation of the Plan, the amount of $500,000, shall be
and is conclusively determined to be the net disposable income.
Class 3 shall receive the Net Disposable Income in the total amount
of $500,000. Payment to Class 3 shall be made by the Debtor on an
annual basis one the annual anniversary of the Plan Effective Date.
Class 3 will not receive interest on their claims.
Class 4 consists of Insider general unsecured claims of the Debtor
not included in any other class. Total amount of class 4 claims is
$605,000. The Class 4 claimants will voluntarily subordinate their
Class 4 claims to the non-insider general unsecured creditor
claimants in Class 3 for the life of the Plan. Class 4 claimants
will not receive any payment on account of their Class 4 claims
during the life of the Plan.
Class 5 consists of equity interest holders. The class 5 equity
interests will retain their rights and interests without
impairment. Class 5 receives no payments on account of their equity
interests during the life of the Plan.
Class 6 consists of the "phantom" equity interest holders. The
class 6 "phantom" equity interests will retain their rights and
interests without impairment. Class 6 receives no payments on
account of their equity interests during the life of the Plan.
The Plan will be funded with the Debtor's cash on hand on the Plan
Effective Date and continued business operations. After exiting
bankruptcy, the Debtor will attempt to refinance to effectuate the
NPV payment to Class 3.
A full-text copy of the Subchapter V Plan dated Jan. 4, 2022, is
available at https://bit.ly/3nfxfRs from PacerMonitor.com at no
charge.
Attorneys for the Debtor:
LEVENE, NEALE, BENDER, YOO & GOLUBCHIK L.L.P.
RON BENDE
JOHN-PATRICK M. FRITZ
About Hologenix LLC
Pacific Palisades, Calif.-based Hologenix, LLC is the inventor of
Celliant technology (https://celliant.com), a patented,
clinically-tested textile technology that harnesses and recycles
the body's natural energy.
Hologenix filed its voluntary petition under Chapter 11 of the
Bankruptcy Code (Bankr. C.D. Calif. Case No. 20-13849) on April 22,
2020. In the petition signed by Seth Casden, chief executive
officer, the Debtor listed $1 million to $10 million in both assets
and liabilities.
Judge Barry Russell oversees the case.
Levene, Neale, Bender, Yoo & Brill L.L.P. represents the Debtor as
bankruptcy counsel. The Debtor also hired Tucker Ellis LLP,
Troutman Sanders LLP, Dermer Behrendt, Theodora Oringher PC, and
Buchalter as special counsel. The Colony Group, LLC serves as the
Debtor's accountant.
HOME DEALS OF MAINE: Property Sale Proceeds to Fund Plan Payments
-----------------------------------------------------------------
Home Deals of Maine, LLC, filed with the U.S. Bankruptcy Court for
the District of Maine a Plan of Reorganization for Small Business
dated Jan. 04, 2022.
The Debtor is a limited liability company formed under the laws of
the State of Maine. Since 2013, the Debtor has been in the
business of owning real estate properties in Maine and leasing
residential units on those properties.
The Plan Proponent's financial projections show that the Debtor
will have projected disposable income of $2,301,000. The final
Plan payment is expected to be paid on or before the date that is
120 days after the Effective Date of this Plan.
The Debtor's Plan provides for a single distribution of Plan Cash
to be funded primarily from the sales of the Debtor's real property
assets. The total scheduled value of the Debtor's real property
assets is $2,301,000.00. The Debtor will therefore have sufficent
disposable income to fund this Plan and fully satisfy its
creditors' allowed secured claims and allowed nonpriority unsecured
claims.
This Plan of Reorganization proposes to pay creditors of the Debtor
from what is referred to herein as "Plan Cash." During the pendency
of the Plan, the Debtor shall make periodic payments into Debtor's
Counsel's Chapter 11 Trust Account totaling $1,759,594.28 ("Plan
Cash"), and such funds shall be distributed to creditors in a total
of one (1) distribution – an Initial Distribution. The Initial
Distribution shall begin within 120 days of the Effective Date of
this Plan.
Non-priority unsecured creditors holding allowed claims will
receive distribution(s), which the proponent of this Plan has
valued at 100 cents on the dollar. This Plan also provides for the
payment of administrative and priority claims.
Class 2 consists of the Secured claim of Deere & Company d/b/a John
Deere Financial. Claim of $134,174.31, with a fixed annual interest
rate of 2.65%, is fully secured by the Debtor's John Deere Front
end loader and excavator. This claim shall be fully and finally
satisfied by payment in cash in the Initial Distribution. Creditor
retains its pre-petition lien(s) on the Debtor's property until the
claim is paid in full.
Class 4 consists of the Secured claim of U.S. Bank, National
Association, not in its individual capacity, but solely as trustee
for Fidelity & Guaranty Life Mortgage Trust 2018-1/NewRez LLC d/b/a
Shellpoint Mortgage Servicing.
Claim of $1,487,644.97, or such other total amounts to be
determined after production and review of payment history by U.S.
Bank, National Association, not in its individual capacity, but
solely as trustee for Fidelity & Guaranty Life Mortgage Trust
2018-1/NewRez LLC d/ b/a Shellpoint Mortgage Servicing, is fully
secured by a first priority mortgage on the Debtor's real property
assets. This claim has been partially paid from proceeds of sales
of the Debtor's real properties authorized by Orders of the Court
and shall be fully and finally satisfied by payment in cash in the
Initial Distribution. Creditor retains its first priority
pre-petition lien(s) on the Debtor's property until the claim is
paid in full.
Class 5 consists of Non-priority unsecured creditors. Holders of
Allowed Unsecured Claims will receive pro rata distribution(s) from
Plan Cash after payment of Administrative Expense Claims and
Allowed Secured Claims.
Class 6 consists of the interests of Equity Security Holder Jo A.
Roderick in property of the Debtor's estate. Sole member of the
Debtor. Not taking a distribution under this Plan. Upon entry of
the Confirmation Order, all property of the Debtor's estate shall
vest in the Debtor, free and clear of all liens, claims and
encumbrances, except to the extent provided in this Plan, pursuant
to Code section 1141(b).
The Debtor shall have adequate means for implementation of this
Plan by: (a) proceeds of sales of the Debtor's real property
assets, including without limitation real properties located at: 1
Gingerbread Lane, Waterville, Maine; 15 Gray Road, Waterville,
Maine; 15 Kelley Street, Fairfield, Maine; 183 Middle Street,
Fairfield, Maine; 93 Proctor Road, Arundel, Maine; 1 King Street,
Fairfield, Maine; 8 Church Hill Road, Buxton, Maine; 43 Drummond
Avenue, Waterville, Maine; 9 Summer Street, Waterville, Maine; 30
Osborne Street, Fairfield, Maine; 33 Summer Street, Waterville,
Maine; 41 Carey Lane, Waterville, Maine; and, 50 Ross Road, Saco,
Maine; and, (b) any other funds generated or received by the Debtor
and not allocated or paid pursuant to this Plan that may become
available.
A full-text copy of the Plan of Reorganization dated Jan. 04, 2022,
is available at https://bit.ly/3fcODlq from PacerMonitor.com at no
charge.
About Home Deals of Maine
Home Deals of Maine, LLC, filed a petition for Chapter 11
protection (Bankr. D. Maine Case No. 21-10267) on Oct. 6, 2021,
listing $3,147,975 in assets and $1,650,258 in liabilities. Jo A.
Roderick, sole member, signed the petition. Judge Peter G. Cary
oversees the case. The Debtor tapped Molleur Law Office as legal
counsel.
ICU MEDICAL: Fitch Converts Expected Ratings to 'BB' LT IDR
-----------------------------------------------------------
Fitch Ratings converted ICU Medical, Inc.'s (ICUI) Expected Ratings
with the Long-Term Issuer Default Rating of 'BB'. ICUI is a leading
infusion therapy company with global operations and a wide-ranging
product portfolio including IV solutions and infusion systems and
consumables. The Rating Outlook is Stable.
Fitch has also converted the expected ratings for ICUI's $850
million senior secured term loan B of 'BBB-'/'RR1'. ICU Medical
financed the acquisition of Smiths Medical, a business unit of
Smiths Group, with a combination of cash on hand, new equity and
$1.7 billion of new term loans. The Smiths Medical acquisition was
completed on Jan. 6, 2022.
KEY RATING DRIVERS
A Pure-Play Infusion Therapy Company: Compared to its larger and
more diversified peers, ICUI is a niche company that focuses on the
infusion therapy market. It develops, manufactures and sells IV
solutions, IV infusion pumps and software, and dedicated and
non-dedicated IV sets and accessories.
The majority of ICUI's revenues are derived from products that have
top three market positions and from single-use solutions and
consumables. However, significant reliance on the U.S. market and
modest level of product differentiation impose some constraints on
the ratings. Fitch expects the recent Class I recalls of Alaris
infusion pumps (Becton, Dickinson & Company) and Spectrum IQ
(Baxter International) will benefit ICUI in the short-term.
Resilient Performance: Overall, the pandemic has had a net neutral
impact on ICUI's top- and bottom-line growth. Increasing demand for
infusion consumables and pumps and critical care products has
counter-balanced the impact of delayed elective procedures. While
Fitch expects limited contributions from the pandemic and
stockpiles in the future, revenue is projected to grow at a
low-single digit rate in the near term. This reflects Fitch's
beliefs that ICUI's products are tied to hospital census and
surgery volumes, and a larger population of patients with diabetes,
neurological disorders, gastrointestinal diseases and cancer as a
growth-inducing factor.
Inflation and Supply Chain Headwinds: Fitch expects the risk that
supply chain challenges become a headwind to ICUI's revenues are
increasing. Labor shortages in the United States, high crude oil
prices and the global chip shortage are believed to have
significant impact on resin prices, manufacturing costs and
transportation costs. ICUI has rarely raised prices in the past and
Fitch does not have a view on whether the company would increase
prices to customers to cover higher costs. However, Fitch believes
that the inability to raise prices or recover costs would have an
adverse effect on ICUI's profitability.
Smiths Medical Acquisition: Fitch believes that the Smiths Medical
acquisition will allow ICUI to capture segments within the infusion
therapy market that it may not have strong positions in. This
includes syringe and ambulatory pumps and vascular access products.
Fitch expects the combined company to generate approximately $2.4
billion and $440 million in revenue and EBITDA in 2022,
respectively. Single-use solutions and consumables are expected to
make up ~85% of total revenues and the U.S. market will contribute
~60%. Smiths Medical will also strengthen ICUI's position in EMEA
markets and expand its presence in Asia-Pacific region.
Operational Stability Key to Growth and Margin Improvements: The
acquisition of Hospira Infusion Systems from Pfizer in 2017 proved
to be a challenge for ICUI to overcome. Hospira was considerably
larger than ICUI and provided geographical diversification
benefits. However, the integration was problematic, costly and
time-consuming. Fitch expects the integration of Smiths Medical to
be simpler and more executable but notes that Smiths Medical is a
business that has flat to declining revenue growth rates, lower
EBITDA margins and ongoing product issues. Fitch assumes EBITDA
margins to be 50bps-150bps lower than historical levels due to
inflationary pressure and supply chain issues on production.
Sufficient Free Cash Flow and Liquidity: On a standalone basis,
ICUI was expected to generate sufficient free cash flow to support
its operation with minimal shareholder-friendly actions.
Historically, the company has not paid dividends or repurchased
common shares. ICUI's Board of Directors has authorized a share
repurchase program of up to $100 million since August 2019 with no
expiration date. The terms and conditions in the previous credit
agreement, however, limited ICUI's ability to exercise this
program. As of Sept. 30, 2021, ICU Medical had $520 million of cash
on hand.
Pro forma for the closing of the Smiths Medical acquisition, Fitch
expects a significant reduction in FCF in 2022 but assumes a FCF
level of $150 million-$200 million in 2023 and 2024. Leverage, on a
total debt/EBITDA basis, is projected to be within the 3.3x-3.9x
range through the rating horizon. Fitch has not assumed that ICU
Medical will allocate discretionary FCF towards voluntary debt
repayment.
DERIVATION SUMMARY
ICUI's 'BB' rating reflects its top three position in the infusion
therapy market, significant portion of recurring revenues, and the
essentiality of its products in patient care. While ICUI is
benefited from international operations and manufacturing sites, it
is heavily relied on the U.S. market and somewhat less diversified
in terms of product offerings than its peers.
ICUI's peers have more geographical and product diversification,
larger operations, higher level of profitability and somewhat
similar or lower leverage. Baxter International (BBB) historically
maintained a conservative capital structure but the acquisition of
Hill-Rom has significantly pushed leverage beyond historical
levels.
Becton, Dickinson & Company (BBB-) and Boston Scientific (BBB) both
have broad medical device portfolios that enable them to remain
very competitive in domestic and international markets. The former
has shown willingness to deleverage after the C.R. Bard acquisition
in late 2017. B. Braun, a direct competitor of ICU Medical and not
rated by Fitch Ratings, is a well-known German health care company
and a leader in infusion therapy and pain management in Europe.
KEY ASSUMPTIONS
Fitch's key assumptions within the Agency's rating case for the
Issuer include:
-- Low-single digit revenue growth for ICUI, and flat to low-
single digit revenue decline for Smiths Medical;
-- EBITDA margins are 50bps-150bps below historical levels due to
the expected lower EBITDA contribution from Smiths Medical and
anticipated inflationary pressure and supply chain issues on
production;
-- $100 million remediation costs related to Smiths Medical; no
additional litigation issues and/or product recalls;
-- CAPEX ~$140-$150 million per year; FCF ~$150-$200 million per
year in 2023 and 2024;
-- Total debt/EBITDA maintained in the 3.3x-3.9x range; and
-- Fitch has not assumed any allocation of discretionary FCF
towards voluntary debt repayments, acquisitions or returns to
shareholders.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Fitch's expectation of modest impact from inflation and supply
chain issues and/or significant synergies realized from Smiths
Medical that lead to EBITDA and FCF margins sustained above
23% and 8% respectively;
-- Fitch's expectation that total debt/EBITDA will be maintained
below 3.0x; and
-- Fitch's expectation that (CFO-CAPEX)/total debt will be
sustained above 15%.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Fitch's expectation of significant impact from inflation and
supply chain issues and/or declining growth prospects that
lead to EBITDA and FCF margins sustained below 18% and 6%
respectively;
-- Fitch's expectation that total debt/EBITDA will be maintained
above 4.0x; and
-- Fitch's expectation that (CFO-CAPEX)/total debt will be
sustained below 10%.
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
Ample Liquidity and Simple Capital Structure: As of Sept. 30, 2021,
ICU Medical had $520 million of cash on hand. Fitch estimates that
LTM FCF at Sept. 30, 2021 was $174 million, or 13.5% of revenue,
and expects ICU Medical to post $164 million of FCF for FY21.
Upon closing of the Smiths Medical acquisition, ICUI's debt is
comprised of $1.7 billion of senior secured term loans and $500
million of senior secured revolver, which is assumed to be undrawn
at closing. Fitch expects the new revolver capacity and the
forecasted $150 million-$200 million of FCF in 2023 and 2024 will
be sufficient to support operations. ICUI's management intends to
run the business with a minimum of $250 million of cash on hand.
Debt Maturities: The senior secured revolver and term loan A mature
on Jan. 6, 2027 and the senior secured term loan B matures on Jan.
6, 2029. Term loan amortization is expected to be $22 million in
2022 and $30 million per year in 2023 and 2024.
ISSUER PROFILE
ICU Medical, Inc. (ICUI), based in San Clemente, CA, is an infusion
therapy company that develops, manufactures and sells medical
devices used in vascular therapy, critical care and oncology
applications. ICUI's products are segmented into four categories:
infusion consumables (41% of total revenues), infusion systems
(27%), IV solutions (28%) and critical care (4%) as of LTM Sept.
30, 2021. ~90% of total revenues are recurring, including 70%
single-use solutions and consumables and 20% consumables related to
infusion pumps. As of LTM Sept. 30, 2021, ICUI derived 73% of its
revenues from the United States.
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.
INPIXON: CEO Reflects on Role of Immersive Technologies
-------------------------------------------------------
Inpixon provided the following remarks from the Company's CEO,
Nadir Ali.
"The adoption of innovative immersive technologies as tools for
delivering exceptional experiences are only just beginning to move
into the mainstream. I am just back from CES 2022, the world's
largest consumer electronics and IT exhibition, where the latest in
innovation and technology were on display. It's not surprising
that immersive technologies (i.e., technologies that merge or layer
digital environments with the physical world) had a strong
presence. Twenty twenty-two is being referred to as the 'year of
the metaverse,' following last year's significant new product
activity and the world’s largest social media company changing
its name from Facebook to Meta. In a wide variety of industry
verticals, including healthcare, retail, corporates offices,
manufacturing, logistics, engineering, sports and entertainment,
we'll see augmented and virtual reality technologies play a key
role in changing the way organizations work and people engage with
each other. Leveraging these technologies to increase workforce
enablement and customer and employee connectedness will
revolutionize the way in which organizations can enable engagement
and deliver exceptional experiences.
"Inpixon is helping organizations all over the world create these
exceptional experiences by leveraging Indoor Intelligence
technologies to reimagine their workplaces, making them smarter to
achieve higher levels of productivity and performance, increase
safety and security and improve worker and employee satisfaction
rates with better experiences. The core of our corporate strategy
over the last few years has focused on developing and acquiring key
technologies to serve as a primary enabler of digital twins which
can be used in the metaverse while also helping organizations
bridge the gap between their digital and physical environments. As
a result, we are offering what we believe is the most comprehensive
suite of Indoor Intelligence solutions available in the market from
a single provider.
"Inpixon's mapping, positioning, real-time location services, and
campus app solutions are being relied upon by some of the largest
organizations in the world, and I am even more encouraged than ever
about the possibilities that lie ahead for Inpixon. Our strategy
has positioned us well to maximize the opportunity presented by the
major market trends that exist in immersive technologies at just
the right time.
"I'd like to reflect on the innovation and growth we achieved this
past year in 2021 and also take this opportunity to share my vision
for the future of Inpixon in 2022."
A Year of Innovation and Growth: Reimagining the Workplace
"Twenty twenty-one was a pivotal year for Inpixon. We had all
hoped it would mark the end of a global pandemic and usher in a
return to 'normal,' but instead, it served as year two of the
pandemic and reinforced the concept that what we all referred to as
'normal' would now have to look different.
"Since the start of the pandemic, Indoor Intelligence technologies
were brought into the spotlight as businesses looked for innovative
solutions to adapt and operate successfully even through the
disruption wrought by the global pandemic. Data from Inpixon's
State of Indoor Intelligence 2021 report revealed that over 80% of
respondents indicated indoor intelligence and location awareness
was important in achieving their 2021 goals. Organizations began
to seek solutions that could meet the demands of the future of work
given the digital workplace transformation taking place. At
Inpixon, we understood the importance of having a connection to our
customers through the end user in order to truly be able to drive
and influence the EXPERIENCE of Indoor Intelligence. And we knew
the 'app' would be the means in which this would best be
accomplished. We also saw an increase in demands for technologies
that could support the changing needs of a hybrid workplace. The
acquisition of The CXApp, a leading smart workplace app and hybrid
events solution provider, was the way we would be able to address
both, by closing the gap to the end user and also helping
organizations meet the demands of this 'new normal.'
"The CXApp acquisition expanded our offerings to include a
location-aware employee app focused on enhancing the workplace
experience, and an events platform able to manage physical, virtual
and hybrid events. Though it has been less than twelve months
since the acquisition, it is already proving to be a very strong
addition to Inpixon's suite of Indoor Intelligence solutions. It
is fueling our rapid growth rate, and in the last few months alone,
we built out more than 150 corporate campuses with tens of
thousands of reservable desks and mapped more than 12 million
square feet of office space.
"Inpixon's acquisition of Visualix's augmented reality, spatial
computing, and computer vision technologies, also in 2021, brought
us the core technological capabilities that are at the heart of
immersive experience technologies. This transaction provided
Inpixon with the foundation for the future of Indoor Intelligence.
We believe the combination of our range of technological
capabilities across spatially-aware maps, apps, and AR technologies
are unique in the market and can assist customers in reimagining
their environments by bridging the physical and digital world to
deliver advanced experiences that drive productivity, efficiency
and satisfaction in a way that other providers of similar solutions
can't offer. With this combination of capabilities, there is
significant market opportunity for Inpixon across numerous
industries, and we're excited about the game-changing potential of
these applications.
"In 2021 we also acquired IntraNav GmbH, a leading industrial IoT
(IIoT), real-time location system (RTLS), and sensor data services
provider. This acquisition brought established relationships with
blue-chip companies and positions Inpixon as a one-stop-shop for
comprehensive location intelligence solutions for both the
corporate and industrial sides of an organization. The acquisition
also expanded our RTLS capabilities with an enhanced industrial IoT
platform for Industry 4.0 smart factories, smart warehouses and
digital supply chains. We believe we are now positioned at the
heart of the fourth industrial revolution, commonly referred to as
Industry 4.0, with the new and comprehensive products IntraNav
brings to Inpixon. There are significant growth opportunities
within this market, and we believe we are the only company able to
address both the organizational and industrial sides of a business,
a major competitive differentiator.
"Through these acquisitions, we obtained not only industry leading
technologies but also established customer bases with top-tier
organizations. Specifically, our Indoor Intelligence customer
base1 expanded 55% in 2021 and includes numerous companies using
our solutions within the esteemed Fortune 1000 list. We believe
our success with these very large enterprises is further validation
of the value proposition, cost savings, and broad capabilities of
our products and solutions as a result of our strategic
initiatives.
In addition to the strong growth in the number of large companies
in our customer base, we also accomplished the following during
2021:
* Closed more than 230 deals
* Secured nearly $18 million in total contract value bookings3
* Increased our SaaS annual recurring revenue bookings by more
than $4 million4
"The market pundits have taken notice of our advanced solutions.
We won a number of industry awards, received continued recognition
as a Visionary in the 2021 Gartner Magic Quadrant for Indoor
Location Services, Global, and were named an IDC Innovator for
Location & Geospatial Intelligence 2021 with the researcher
highlighting the overall maturity of the Inpixon platform as a key
differentiator."
The Future: Continued Growth and Acceleration
"Inpixon is committed to continued growth and innovation that
delivers exceptional user experiences, and we are excited by the
opportunities of what can be accomplished in the physical and
digital world when leveraging our comprehensive Indoor Intelligence
platform, mobile apps, and patented technologies to create
actionable intelligence. With our extensive portfolio of
solutions, we are very well positioned to meet the needs of our
customers and new potential customers at any step in their journey
in the real world or in the metaverse. In 2022 we look to further
expanding our immersive experiences with hybrid events. Inpixon
has one of the leading platforms to provide customers with
capabilities to bridge IRL (in real life) and online events, and we
will extensively market this solution to existing and prospective
corporate customers. We will also pursue the substantial
cross-selling opportunities for our IOT/RTLS asset tracking
solutions within our existing CXApp customers, some of which are
already in discussion. We continue to grow our recurring revenue
and expand our robust pipeline with major global enterprises and
government agencies which should help us drive the company's
valuation.
"As we start the new year, we intend to focus on unifying and
branding our expanding portfolio of offerings, and you will notice
some changes to our website to reflect the full scope of our
solutions. I hope you'll join the conversation with us on
LinkedIn, Twitter, and Facebook, as we help organizations uncover
what's possible with Indoor Intelligence.
"Inpixon remains fully committed to building shareholder value by
continuing to grow our business, working towards positive
cash-flow, and leveraging our strong balance sheet. We believe we
have built a foundation for future success, both operationally and
financially. We deeply appreciate the support of all of our
shareholders and look forward to exciting developments in the new
year.
"I am also appreciative and proud of our employees around the world
which have stayed productive and connected while remaining
committed to our core values and to our vision to do good with
indoor data."
About Inpixon
Headquartered in Palo Alto, Calif., Inpixon (Nasdaq: INPX) is an
indoor data company and specializes in indoor intelligence. The
Company's indoor location data platform and patented technologies
ingest and integrate data with indoor maps enabling users to
harness the power of indoor data to create actionable
intelligence.
Inpixon reported a net loss of $29.21 million for the year ended
Dec. 31, 2020, a net loss of $33.98 million for the year ended
Dec. 31, 2019, and a net loss of $24.56 million for the year ended
Dec. 31, 2018. As of Sept. 30, 2021, the Company had $191.04
million in total assets, $26.66 million in total liabilities,
$39.50 million in mezzanine equity, and a total stockholders'
equity of $124.89 million.
INTERNATIONAL PETROLEUM: Moody's Assigns B1 CFR; Outlook Stable
---------------------------------------------------------------
Moody's Investors Service assigned a B1 corporate family rating
(CFR) and a B1-PD probability of default rating (PDR) to
International Petroleum Corp. (IPC). Concurrently, Moody's assigned
a B1 rating to IPC's proposed $300 million guaranteed senior
unsecured notes due 2027. The outlook on IPC is stable. The
proceeds of the issuance will be used to repay existing debt of
IPC, which was $183 million as of 30 September 2021, as well as for
general corporate purposes.
RATINGS RATIONALE
International Petroleum Corp.'s (IPC) B1 corporate family rating
(CFR) reflects its: (1) relatively good reserve profile with about
118 mmboe 1P developed (1PD) reserves and a net reserve life of
about 7 years; (2) low capex requirements of about $4-$5 per barrel
to broadly replace depleting reserves; (3) a strong track record of
increasing its daily production through acquisitions and capex
optimization; (4) healthy balance sheet with EP debt/avg. daily
production of about $6,800 and debt/EBITDA of 0.9x for the end of
2021 pro forma for the proposed issuance of a $300 million bond;
(5) strong free cash flow generation under its base case (Brent at
$68 in 2021 and $65 in 2022) and (6) a sound liquidity profile.
These credit strengths are balanced by: (1) modest scale and
diversification with about 41k boe/d of oil production (net of
royalties) from its assets in Canada, France and Malaysia in 2020
(2) the company's relatively mature oil and gas assets, which will
it make difficult to raise production meaningfully without
acquisitions or material capex investments (3) relatively high
production costs of about $15.5 per barrel considering the
additional costs for diluent, royalties, and the WTI / WCS
differentials for a large part of IPC's production compared to
other international peers, (4) the absence of a formal hedging
strategy (5) limited track record of operating the majority of its
oil and gas assets which have been acquired within the past four
years; (6) some uncertainty on its future asset footprint and
financial policy as the company is likely to grow its daily
production through external acquisitions, financed by debt.
The limited visibility as to IPC's future asset footprint and
financial policy limits the rating. Moody's understands that IPC is
aiming to grow its daily production meaningfully over the next
years, in line with its track record since inception in 2017.
Hence, the rating agency expects management to deploy a meaningful
portion of its about $195 million to $205 million cash on balance
expected for early 2022 (pro forma for the proposed bond issuance)
to either actively engage in acquisitions or to undertake a major
investment campaign over the next 24 months. In case of any major
transaction Moody's B1 CFR incorporates Moody's expectations that
the company will maintain at least adequate liquidity to offset
potential volatility in commodity prices and Western Texas
Intermediate to Western Canadian Select (WTI /WCS) differentials
and will actively seek to hedge a meaningful portion of its oil and
gas production.
Considering its strong liquidity, the company has no formal hedging
and leverage targets in place currently. At the same time Moody's
acknowledges that the company has operated under a relatively
conservative financial policy with debt/EBITDA at around 1.0x since
2017. At times of higher net/debt, IPC typically hedged between 30%
and 40% and 15% and 25% of its Canadian oil and gas production,
respectively, to reduce its commodity exposure at times of higher
debt.
ESG CONSIDERATIONS
Governance considerations include IPC's conservative balance sheet
management over the past years, including the issuance of
significant amounts of equity to finance acquisitions. The company
repaid the lion's share of its Reserve Based Lending Facilities in
Q3 2021, which were drawn in 2018 to finance the acquisitions of
Suffield and to co-finance the acquisition of Blackpearl (out of
$548 million, $393 million were financed via equity) in 2018 and
Granite in 2020.
Furthermore, the presence of the Lundin family as an anchor
shareholder (about 30% of shares) with a long-term investment
horizon supports its assessment of a relatively conservative
financial policy. While Moody's understands thar the family has
significant financial means which in the past were deployed to
support growth of its companies, at the same time the family can
exert meaningful influence on IPC's strategy. Several of the
members of the board of directors have been working for or with
companies owned by the Lundin family and L.H. Lundin is a board
member. Furthermore, William Lundin serves as the company's Chief
Operating Officer since December 2020.
Environmental risks that Moody's considers in IPC's credit profile
include its presence in western Canada which exposes it to carbon
reduction policies and lack of egress due to social opposition to
new pipeline capacity, as well as typical industry risks such as
increased regulations, liquid spills, and very high carbon
transition risk. Upstream companies will face increasing
regulations and costs over time, particularly oil producers, as
decarbonization efforts and the transition towards cleaner energy
accelerates.
LIQUIDITY PROFILE
Moody's considers IPC'S liquidity profile strong. Following the
execution of the proposed bond transaction, Moody's expects IPC to
have about $195 million - $205 million cash on balance by early
2022 and access to an approved CAD75 million (about $60 million)
fully undrawn senior revolving credit facility (RCF) coming due in
January 2024. According to Moody's base case, funds from operations
well above $200 million will be sufficient to cover capex spending
(about $100 million), operational cash needs, working capital
requirements, decommissioning expenses and the announced share
buyback program of about $50 million.
The B1 rating incorporates Moody's expectation that management will
at all times maintain meaningful liquidity headroom on top of the
CAD75 million RCF in case of any larger acquisition or distribution
to shareholders to offset potential commodity price volatility.
STRUCTURAL CONSIDERATIONS
The proposed senior unsecured $300 million guaranteed notes are
rated B1 in line with the CFR. The CAD75million senior RCF will
have share pledges from the operating subsidiary IPC Canada Ltd.
and therefore will rank ahead of the bonds in priority of claim.
However, the RCF will not be of a sufficient magnitude to warrant
downward notching for the bonds. The RCF will have no financial
covenants.
OUTLOOK
The stable outlook on IPC's ratings reflects Moody's expectations
that company will be able to maintain its production at current
levels with moderate capex spending. Furthermore, it takes into
account that the company will use the lion's share of cash on
balance following the issuance of the bond to either grow its
portfolio or increase shareholder remunerations.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The B1 rating could be upgraded if IPC: (1) successfully grows its
daily production towards 80k boe/d while maintaining stable 1PD
reserve life; (2) keeps its retained cash flow to debt ratio above
40%; (3) sustains LFCR above 1.5x and debt / EBITDA below 1.5x; (4)
maintains a strong liquidity buffer.
The B1 rating could be downgraded if IPC's: (1) retained cash flow
to debt ratio falls below 30% on a sustained basis; (2) LFCR falls
below 1.0x and debt/ EBITDA exceeds 2.5x on a sustained basis; (3)
daily production declines or 1PD reserve life materially
deteriorates; (4) liquidity profile materially deteriorates as
evidenced by sustained negative FCF generation or meaningful debt
financed acquisitions / shareholder distributions which materially
reduced liquidity headroom.
COMPANY PROFILE
IPC is a relatively small international oil and gas company with a
daily production of about 44k boe/d from its portfolio of
relatively mature assets in Canada, Malaysia and France. IPC
reported sales and EBITDA of about $554 million and $260 million,
respectively, over the last 12 months ending September 2021. The
company was created in 2017, when Lundin Energy AB (Baa3, stable)
spun off its non-Norwegian assets. The company is publicly listed
in Sweden and Canada and its shares are owned by about 31% by the
Lundin family and its management. Remaining shares are widely
diversified among institutional, retail and other investors.
JEM HOMES: Capital Contribution & Continued Operations to Fund Plan
-------------------------------------------------------------------
JEM Homes International, LLC, filed with the U.S. Bankruptcy Court
for the Southern District of Florida a Small Business Plan of
Reorganization dated Jan. 4, 2022.
The Debtor's main Business is as a Developer and/or manufactured
Home Builder. The Debtor also builds Trusses for other
Developers/Home Builders.
A shortage in construction materials and skilled workers are a
continuing cause of the Debtor's cash flow issues, as other
Developer/Builders with whom the Debtor has contracts to build
trusses, are being affected by the skilled workers shortage.
During the beginning of 2021, the Landlord granted the Debtor a
forbearance for two months, which equals to $34,123.17 of rent,
monies which were due on September 2021. The Landlord had
threatened, and continues to seek, eviction proceedings, that,
coupled by some of the clients that have been requesting their
money back due to the delay, precipitated the filing of the Case.
Subject to the acceptance of the final terms of the operating
agreement between the Capital Investor and the Debtor's principal,
the Debtor will fund the Plan with funds from a Capital Investor,
who, in consideration of the Debtor's principal ceding 75% of his
interest in the Debtor, will make a Capital Contribution equal to
the amount of Debtor's debts who elect to be paid upon
confirmation, as well as a small Working Capital. Creditors not
paid in the first 30 days after the Effective date will be paid
from the Debtor's continued operations and other receivables from
operations.
Class 3 consists of General Unsecured Claims. If Claim is allowed,
Creditor will elect between receiving 75% of the total Value of the
Claim, no more than 30 days after the Effective Date or 100% of
their claim to be paid in one payment of 50% of the total Value of
the Claim, no more than 30 days after the Effective Date, and the
remainder to be paid in equal monthly installments during a 3 year
period, plus an additional 3.5% interest per annum, to be
calculated from the date of the Effective Date forward and to be
paid semi annually.
Class 4 consists of the Secured Claims of Wright Brothers in the
amount of $500,000.00. Contract will be assumed as modified and
extended. Secured Portion of the Claim will be paid through an
equal interest only payment, during the first 60 months, at 4%
interest per annum. The total Value of the Claim will be paid in
the earlier of month 60 or the sale of each lot based on the
Release Price.
Class 5 consists of the Secured Claims of Roberto and Monica Suarez
in the amount of $500,000.00. Contract will be assumed as modified
and extended, terms to be determined by the parties.
Class 6 consists of the Secured Claims of Marlin Business Bank
Pawnee Leasing Crestmark Vendor. Contract to be assumed as modified
and any arrears to be paid no more than 30 days after the Effective
Date.
Class 7 consists of General Unsecured Claims of Architechenburo
Sibilo NV in the amount of $50,000.00. To be paid no more than 30
days after the Effective Date.
Class 8 consists of Pre-petition Rent. Lease to be Assumed and
modified as agreed to by the parties. Pre and Post-petition arrears
will be paid in a manner to be determined by the parties.
Subject to the acceptance of the final terms of the operating
agreement between the Capital Investor and the Debtor's principal,
at least five days before confirmation, the Capital Investor will
deposit into Escrow Agent's account all funds needed to pay the
Creditors who have been designated to be paid on Effective Date
without the need of an election of a different treatment and all
Creditors who can choose and have elected to be paid on the
Effective Date and who have made such election at least 15 days
before the Confirmation Date. All Creditors who make an Election
within the 15 days before the Confirmation Date or after, will be
paid directly by the Capital Investor, within 30 days from when the
election is made or on the Effective Date, whichever is latest
A full-text copy of the Plan of Reorganization dated Jan. 4, 2022,
is available at https://bit.ly/3qddnjz from PacerMonitor.com at no
charge.
Counsel for Debtor:
Humberto Rivera, Esq.
Rivera Law Firm, PA
P.O. Box 211746
Royal Palm Beach, FL 33421
Telephone: (786) 529-6060
Facsimile: (786) 441-4373
Email: humberto@hriveralaw.com
About JEM Homes International
JEM Homes International, LLC, a Fort Pierce, Fla.-based
manufacturer of single-family homes, filed a petition for Chapter
11 protection (Bankr. S.D. Fla. Case No. 21-19086) on Sept. 20,
2021, listing up to $50,000 in assets and $1 million to $10 million
in liabilities. Roy Ronel Dan, managing member, signed the
petition. Judge Mindy A. Mora oversees the case. Rivera Law Firm,
PA, serves as the Debtor's legal counsel.
KOSMOS ENERGY: FMR LLC, Abigail Johnson Report 10.7% Equity Stake
-----------------------------------------------------------------
In an amended Schedule 13G filed with the Securities and Exchange
Commission, FMR LLC and Abigail P. Johnson disclosed that as of
Dec. 31, 2021, they beneficially own 48,577,680 shares of common
stock of Kosmos Energy, Ltd., representing 10.749% of the shares
outstanding.
Abigail P. Johnson is the director, chairman and chief executive
officer of FMR.
Members of the Johnson family, including Abigail P. Johnson, are
the predominant owners, directly or through trusts, of Series B
voting common shares of FMR LLC, representing 49% of the voting
power of FMR LLC. The Johnson family group and all other Series B
shareholders have entered into a shareholders' voting agreement
under which all Series B voting common shares will be voted in
accordance with the majority vote of Series B voting common shares.
Accordingly, through their ownership of voting common shares and
the execution of the shareholders' voting agreement, members of the
Johnson family may be deemed, under the Investment Company Act of
1940, to form a controlling group with respect to FMR LLC.
A full-text copy of the regulatory filing is available for free
at:
https://www.sec.gov/Archives/edgar/data/1509991/000031506622000053/filing.txt
About Kosmos Energy
Kosmos is a full-cycle deepwater independent oil and gas
exploration and production company focused along the Atlantic
Margins. The Company's key assets include production offshore
Ghana, Equatorial Guinea and the U.S. Gulf of Mexico, as well as a
world-class gas development offshore Mauritania and Senegal. The
Company also maintains a sustainable proven basin exploration
program in Equatorial Guinea, Ghana and the U.S. Gulf of Mexico.
Kosmos is listed on the NYSE and LSE and is traded under the ticker
symbol KOS.
Kosmos Energy reported a net loss of $411.58 million in 2020, a net
loss of $55.78 million in 2019, a net loss of $93.99 million in
2018, and a net loss of $222.79 million in 2017. As of Sept. 30,
2021, the Company had $4.15 billion in total assets, $461.74
million in total current liabilities, $3.41 billion in total
long-term liabilities, and $286.75 million in total stockholders'
equity.
LATAM AIRLINES: Merrill Lynch, Centerbridge Vie Interest Payments
-----------------------------------------------------------------
Jeremy Hill of Bloomberg News reports that Centerbridge Partners
and Merrill Lynch Credit Products said in court filings that
they're due interest payments on more than $200 million of claims
against a Latam Airlines Group SA subsidiary.
The firms hold debts of TAM Linhas Aereas SA, a Brazilian
subsidiary of the Chilean carrier, which are slated to ride through
Latam's bankruptcy unimpaired under its current plan. But
Centerbridge and Merrill Lynch argue they must receive interest
payments on account of their claims in order to be truly
unimpaired.
"TLA is indisputably solvent and, under well-established precedent,
the TLA Claims must receive postpetition interest to be unimpaired.
Yet, the Plan deprives the TLA Claims of any postpetition
interest. This flaw is fatal to approval of the Disclosure
Statement because the Plan misclassifies the TLA Claims and
deprives them of a vote," TLA Claimholders Group said in an
objection to the Disclosure Statement explaining the Plan.
"Permitting holders in Class 6 at TLA to vote, however, does not
cure the defects with the Plan. If that class is allowed to vote,
then -- particularly given the opposition of the TLA Claimholders
Group -- it is extremely likely to vote to reject the Plan. If that
happens, the Plan would become untenable. A critical component of
the Plan is that it maintains the Debtors' current organizational
structure, which requires reinstating the existing equity interests
in TLA held by it arent. But, if the holders of Class 6 Claims at
TLA are impaired and vote to reject the Plan, then the absolute
priority rule would prohibit TLA's parent from retaining its
equity, which would undermine that fundamental precept of the Plan.
As such, amending the Plan to deliver legitimate unimpairment to
the TLA Claims is imperative to the efficacy of the Plan."
As of Jan. 7, 2022, the sole members of the TLA Claimholders Group
are Merrill Lynch Credit Products, LLC, and Centerbridge Partners,
L.P. The law firm of Stroock & Stroock & Lavan LLP is representing
the TLA Claimholders Group.
About LATAM Airlines Group
LATAM Airlines Group S.A. -- http://www.latam.com/-- is a
pan-Latin American airline holding company involved in the
transportation of passengers and cargo and operates as one unified
business enterprise. It is the largest passenger airline in South
America.
Before the onset of the COVID-19 pandemic, LATAM offered passenger
transport services to 145 different destinations in 26 countries,
including domestic flights in Argentina, Brazil, Chile, Colombia,
Ecuador and Peru, and international services within Latin America
as well as to Europe, the United States, the Caribbean, Oceania,
Asia and Africa.
LATAM and its 28 affiliates sought Chapter 11 protection (Bankr.
S.D.N.Y. Lead Case No. 20-11254) on May 25, 2020. Affiliates in
Chile, Peru, Colombia, Ecuador and the United States are part of
the Chapter 11 filing.
The Debtors disclosed $21,087,806,000 in total assets and
$17,958,629,000 in total liabilities as of Dec. 31, 2019.
The Hon. James L. Garrity, Jr., is the case judge.
The Debtors tapped Cleary Gottlieb Steen & Hamilton LLP as
bankruptcy counsel, FTI Consulting as restructuring advisor, Lee
Brock Camargo Advogados as local Brazilian litigation counsel, and
Togut, Segal & Segal LLP and Claro & Cia in Chile as special
counsel. The Boston Consulting Group, Inc. and The Boston
Consulting Group UK LLP serve as the Debtors' strategic advisors.
Prime Clerk LLC is the claims agent.
The official committee of unsecured creditors formed in the case
tapped Dechert LLP as its bankruptcy counsel, Klestadt Winters
Jureller Southard & Stevens, LLP as conflicts counsel, UBS
Securities LLC as investment banker, and Conway MacKenzie, LLC as
financial advisor. Ferro Castro Neves Daltro & Gomide Advogados is
the committee's Brazilian counsel.
The Ad Hoc Group of LATAM Bondholders tapped White & Case LLP as
counsel.
Glenn Agre Bergman & Fuentes, LLP, led by managing partner Andrew
Glenn and partner Shai Schmidt, has been retained as counsel to the
Ad Hoc Committee of Shareholders.
LIMETREE BAY: Says Sale Appeal Not a Reason to Delay Closing
------------------------------------------------------------
Rick Archer of Law360 reports that the owner of the environmentally
troubled Limetree Bay Refinery told a Texas bankruptcy judge on
Monday, Jan. 10, 2022, that there was nothing to a failed bidder's
appeal of his decision to reopen the auction for the U. S. Virgin
Islands facility that would warrant delaying the closure of the
sale.
In its motion, Limetree Bay asked Judge David Jones of U.S.
Bankruptcy Court for the Southern District of Texas to deny a
motion by St. Croix Energy, which had won the original auction but
fell short in the renewed bidding, to stay the closure of the sale
to the winning bidder pending its appeal.
About Limetree Bay Refinery
Limetree Bay Energy is a large-scale energy complex strategically
located in St. Croix, U.S. Virgin Islands. The complex consists of
Limetree Bay Refining, a refinery with peak processing capacity of
650 thousand barrels of petroleum feedstock per day, and Limetree
Bay Terminal, a 34-million-barrel crude and petroleum products
storage and marine terminal facility serving the refinery and
third-party customers.
Limetree Bay Refining, LLC, restarted operations in February 2021,
and is capable of processing around 200,000 barrels per day. Key
restart work at the site began in 2018, including the 62,000
barrels per day modern, delayed Coker unit, extensive
desulfurization capacity, and a reformer unit to produce clean,
low-sulfur transportation fuels. The restart project provided much
needed economic development in the U.S.V.I. and created more than
4,000 construction jobs at its peak.
Limetree Bay Refining, LLC and its affiliates sought Chapter 11
protection on July 12, 2021. The lead case is In re Limetree Bay
Services, LLC (Bankr. S.D. Texas Case No. 21-32351).
Limetree Bay Terminals, LLC did not file for bankruptcy.
In the petitions signed by Mark Shapiro, chief restructuring
officer, Limetree Bay Services disclosed up to $10 million in
assets and up to $50,000 in liabilities. Limetree Bay Refining,
LLC, estimated up to $10 billion in assets and up to $1 billion in
liabilities.
The Debtors tapped Baker Hostetler as legal counsel and B. Riley
Financial Inc. as restructuring advisor.
The U.S. Trustee for Region 7 appointed an official committee of
unsecured creditors in the Debtors' cases on July 26, 2021. The
committee is represented by Pachulski Stang Ziehl & Jones, LLP.
405 Sentinel, LLC, serves as administrative and collateral agent
for the DIP lenders.
LTL MANAGEMENT: Judge Kaplan Postpones Stay Shelter Decision
------------------------------------------------------------
Rick Archer of Law360 reports that a New Jersey bankruptcy judge
Monday, January 10, 2022, that she postponed a decision on whether
Johnson & Johnson can be sheltered by the litigation pause for its
bankrupt talc spinoff for two weeks after tort claimants asked for
more time to wait for a district court ruling on the case.
At a virtual status conference U.S. Bankruptcy Judge Michael Kaplan
said because spinoff LTL Management won't be harmed by another two
weeks of the status quo he would grant the request by the two talc
claimants committees to push the hearing on the stay back from its
prior scheduled date of Tuesday, January 11, 2022.
About LTL Management
LTL Management, LLC, is a subsidiary of Johnson & Johnson (J&J),
which was formed to manage and defend thousands of talc-related
claims and oversee the operations of Royalty A&M. Royalty A&M owns
a portfolio of royalty revenue streams, including royalty revenue
streams based on third-party sales of LACTAID, MYLANTA/MYLICON and
ROGAINE products.
LTL Management filed a petition for Chapter 11 protection (Bankr.
W.D.N.C. Case No. 21-30589) on Oct. 14, 2021. The case was
transferred to New Jersey (Bankr. D. N.J. Case No. 21-30589) on
Nov. 16, 2021. The Hon. Michael B. Kaplan is the case judge. At
the time of the filing, the Debtor was estimated to have $1 billion
to $10 billion in both assets and liabilities.
The Debtor tapped Jones Day and Rayburn Cooper & Durham, P.A. as
bankruptcy counsel; King & Spalding, LLP and Shook, Hardy & Bacon
LLP as special counsel; McCarter & English, LLP as litigation
consultant; Bates White, LLC as financial consultant; and
AlixPartners, LLP as restructuring advisor. Epiq Corporate
Restructuring, LLC is the claims agent.
U.S. Bankruptcy Administrator Shelley Abel formed an official
committee of talc claimants in the Debtor's Chapter 11 case. The
committee tapped Bailey & Glasser, LLP, Otterbourg, P.C. and Brown
Rudnick, LLP as bankruptcy counsel. Massey & Gail, LLP and Parkins
Lee & Rubio, LLP serve as the committee's special counsel.
About Johnson & Johnson
Johnson & Johnson is an American multinational corporation founded
in 1886 that develops medical devices, pharmaceuticals, and
consumer packaged goods. It is the world's largest and most broadly
based healthcare company.
Johnson & Johnson is headquartered in New Brunswick, New Jersey,
the consumer division being located in Skillman, New Jersey. The
corporation includes some 250 subsidiary companies with operations
in 60 countries and products sold in over 175 countries.
The corporation had worldwide sales of $82.6 billion in 2020.
LTR INTERMEDIATE: S&P Upgrades ICR to 'B', Outlook Stable
---------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on LTR
Intermediate Holdings Inc.'s (doing business as Liberty Tire
Recycling) to 'B' from 'B-'. The outlook is stable.
S&P also raised the issue-level rating on the company's senior
secured credit facility, including its revolving credit facility
and term loan B, to 'B' from 'B-'. The recovery rating remains
'3'.
The stable outlook reflects S&P's expectation for a continued
rebound in total vehicle miles driven in the U.S., along with its
integration of the Rubbercycle acquisition, will enable Liberty
Tire to generate stable free cash flows that are sufficient to meet
its ongoing debt obligations and maintain debt leverage of 5x-6x.
LTR Intermediate has signed a definitive agreement to acquire
Rubbercycle Corp. for $125 million.
Rubberecycle is a leading manufacturer of reusable products,
including loose-fill rubber mulch, poured-in-place rubber surfaces,
and interlocking rubber tiles. It is a leading producer of high
quality, durable recycled rubber mulch. The company has a strong
inbound presence in the Northeast, with over 70 million pounds of
annual used tire recycling capacity and will provide existing Lakin
Tire East with an additional outlet for inbound used tire
collections. Rubbercycle is located in the Northeast U.S. and
should increase LTR's existing competitive landscape by reducing
transportation and disposal costs and become accretive to LTR's
EBITDA margins and future cash flows.
LTR is planning to fund the transaction with a $150 million add-on
term loan B, which will fund the acquisition, repay revolver
borrowings, and add cash to the balance sheet. Following its May
2021 acquisition by ECP, LTR has benefited from improved economic
growth and increased miles driven and was able reduce leverage as a
result before this proposed transaction.
LTR remains susceptible to industry dynamics, but S&P believes the
company has improved its fundamentals and end-use diversity.
Liberty Tire has been a leader and an established player in the
tire collection and processing space for several years. S&P said,
"Despite this, it was greatly affected by the entrance of a foreign
competitor in 2014, which significantly affected operating margins
and ultimately caused the company to restructure its capital
structure and undertake a transaction that we viewed as a selective
default in 2015. While we believe Liberty Tire's fundamentals have
improved since then and that its capital structure (including the
proposed add-on) is much more manageable, we remain wary of the
dynamics in its industry and its susceptibility to external
factors, including the entrance of new competitors and potentially
stricter environmental regulations." LTR in the past was heavily
focused and dependent on the field and turf sales end market and
now has expanded its end uses, such as extrusion wire, to enhance
its presence as a leading tire recycler.
S&P expects the company to remain highly acquisitive, which will
maintain highly leveraged credit metrics.
Liberty Tire has been active on the acquisition front, including
its purchases of Rubbercycle (2022), Lakin (March 2020), and IMC
(September 2018), as well as other smaller, bolt-on opportunities.
S&P said, "Under ECP, we believe Liberty Tire will remain highly
acquisitive (but our base case forecast does not include any
acquisitions other than Rubbercycle) and look for targets that
improve its geographic footprint and expand its collection and
resale volumes. We expect the company will continue to rely heavily
on debt financing to fund such opportunities. As such, we do not
expect that Liberty Tire's credit metrics will materially improve
over time because we believe it will prioritize growth over debt
reduction.
"The stable outlook on Liberty Tire reflects our expectation that a
modest rebound in total vehicle miles driven in the U.S., along
with its ongoing integration of Rubbercycle, will support stable
free cash flows sufficient to meet its ongoing debt obligations
while maintaining debt leverage of between 5x and 6x.
"We could lower our ratings on Liberty Tire over the next 12 months
if a material decline in its operating performance caused its
leverage to approach 7x on a sustained basis or its free cash flow
turned negative on a sustained basis, which would constrain its
liquidity and increase its dependence on its revolver. We could
also consider a lower rating if the company did not maintain
prudent financial policies that supported credit metrics we viewed
as commensurate with the current rating. We would view the pursuit
of large debt-funded growth initiatives or dividend distributions
to owners as inconsistent with our current financial policy
expectations.
"Although unlikely, we could raise our ratings on Liberty Tire over
the next 12 months if its leverage improved to well below 5x and
its financial sponsor committed to maintain financial policies that
supported its improved metrics. We could also consider a higher
rating if it successfully incorporated Rubbercycle such that we saw
a material and sustained improvement in its inbound-to-used tire
resale rates and a subsequent expansion in its EBITDA margins while
it maintained credit metrics we viewed as appropriate for a higher
rating."
MALLINCKRODT PLC: Judge Probes Fairness of Opioid Legal Shield
--------------------------------------------------------------
Steven Church of Bloomberg News reports that the judge overseeing
the reorganization of opioid maker Mallinckrodt Plc questioned the
fairness of a plan to protect executives and others from future
lawsuits, echoing the dispute that upended Purdue Pharma's effort
to settle its own highly charged opioid bankruptcy case.
Under Mallinckrodt's $5.45 billion settlement plan, officers and
directors could not be sued in most cases for their alleged role in
America's opioid epidemic. During a virtual court hearing on the
proposal Thursday, January, U.S. Bankruptcy Judge John Dorsey asked
how the legal protections would affect creditors who may want to
keep suing Mallinckrodt.
About Mallinckrodt PLC
Mallinckrodt -- http://www.mallinckrodt.com/-- is a global
business consisting of multiple wholly-owned subsidiaries
thatdevelop, manufacture, market and distribute
specialtypharmaceutical products and therapies. The company's
Specialty Brands reportable segment's areas of focus include
autoimmune and rare diseases in specialty areas like neurology,
rheumatology, nephrology, pulmonology and ophthalmology;
immunotherapy and neonatal respiratory critical care therapies;
analgesics; and gastrointestinal products. Its Specialty Generics
reportable segment includes specialty generic drugs and active
pharmaceutical ingredients.
On Oct. 12, 2020, Mallinckrodt plc and certain of its affiliates
sought Chapter 11 protection in Delaware (Bankr. D. Del. Lead Case
No. 20-12522) to seek approval of a restructuring that would reduce
total debt by $1.3 billion and resolve opioid-related claims
against them.
Mallinckrodt plc disclosed $9,584,626,122 in assets and
$8,647,811,427 in liabilities as of Sept. 25, 2020.
Judge John T. Dorsey oversees the cases.
The Debtors tapped Latham & Watkins LLP and Richards, Layton &
Finger P.A. as their bankruptcy counsel; Arthur Cox and Wachtell,
Lipton, Rosen & Katz as corporate and finance counsel; Ropes & Gray
LLP as litigation counsel; Torys LLP as CCAA counsel; Guggenheim
Securities LLC as investment banker; and AlixPartners LLP as
restructuring advisor. Prime Clerk, LLC, is the claims agent.
The official committee of unsecured creditors retained Cooley LLP
as its legal counsel, Robinson & Cole LLP as co-counsel, and Dundon
Advisers LLC as its financial advisor.
On Oct. 27, 2020, the U.S. Trustee for Region 3 appointed an
official committee of opioid related claimants. The OCC tapped Akin
Gump Strauss Hauer & Feld LLP as its lead counsel, Cole Schotz as
Delaware co-counsel, Province Inc. as financial advisor, and
Jefferies LLC as investment banker.
A confirmation trial for the Debtors' First Amended Joint Plan of
Reorganization was set to begin Nov. 1, 2021. The Confirmation
Hearing is slated to have two phases. Phase 1 commenced the week
of Nov. 1. Phase 2 will begin on or around the week of Nov. 15,
when the Acthar Administrative Claims Hearing proceedings
conclude.
MI WINDOWS: S&P Affirms 'B+' Issuer Credit Rating, Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings affirmed its 'B+' issuer credit rating on Gratz,
Pa.-based MI Windows and Doors LLC (MIWD).
S&P said, "At the same time, we raised our issue-level rating on
the term loan B to 'BB' from 'B+', and revised the recovery rating
to '1' from '3'. We assigned a 'B' issue-level and '5' recovery
rating to the $400 proposed senior unsecured notes.
"The stable outlook reflects our view that steady demand in the
company's end markets will support revenue and EBITDA prospects
while maintaining total leverage of 4x-5x over the next 12
months."
MIWD is seeking to issue $400 million of senior unsecured notes,
which along with cash from the balance sheet, will partially
refinance the company's existing term loan B, partially redeem
existing preferred equity, and repurchase common units which
affects S&P's total debt calculation.
Tailwinds from end markets and investments in growth initiatives
coupled with headwinds of cost inflation could lead to
mid-single-digit-percent EBITDA growth over the next 12-18 months.
S&P said, "We anticipate MIWD's annual sales will increase by
roughly 20% in 2021 from market demand and price as well as recent
acquisitions, and continue to grow by mid-single digits through
2022. S&P Global Ratings' economists forecast repair and remodeling
project demand to grow 5% in 2021 and 2% in 2022. We also project
housing starts of 1.59 million in 2021 and 1.51 million in 2022.
These forecasts and the company's current backlog lead us to
believe the sector will remain stable in its growth albeit at a
slower pace through 2022."
A risk is managing cost inflations in almost every category. Cost
increases in its key inputs of glass, aluminum, vinyl resins,
energy, labor, and logistics will put pressure on MIWD's margin
profile. Furthermore, shortages in labor, inputs, and supply chain
disruptions could hinder the company from achieving peak earnings.
For example, gross margins increased 500 basis points (bps) to
almost 42% in late 2020 as an unexpected jump in home renovation
during the pandemic in the U.S. coincided with sharply lower input
costs. By comparison, double-digit revenue growth in third-quarter
2021 is yielding lower gross margins, steady gross profit, and
similar EBITDA because of higher commodity and selling costs. Over
the years, however, the company has demonstrated the ability to
sustain margins by passing on these costs to consumers, potentially
with some lag taking into account the competitive balance with key
customers like World Window, ABC Supply Co, Builders FirstSource,
and Home Depot.
S&P said, "We view the proposed capital structure as leverage
neutral and will result in MIWD's S&P Global Ratings'-adjusted debt
leverage remaining at 4x-5x over the next 12 months.
"We believe the current capital structure, which will consist of
the pro forma $451 million term loan B and $400 million senior
unsecured notes, will lead to adjusted debt to EBITDA between 4x
and 5x (down from previous forecast of about mid-5x this time last
year). Funds from operations to debt is expected to be 12%-20% at
the end of 2021 and through 2022 with EBITDA to cash interest
coverage of above 3x during this time period, both of which we view
as adequate for the rating. MIWD's adjusted net debt will be
roughly $1 billion in 2021 and 2022. The proposed transaction will
reduce Koch Equity Development's preferred equity stake, which we
include as debt in our ratio calculations, to $256 million from
$456 million.
"Our 'B+' rating on MIWD reflects its position as one of the
largest providers of vinyl, aluminum, and fiberglass windows and
patio doors in the U.S. residential market."
The company's end revenues consist of roughly 50% residential
repair and remodeling and 50% new residential construction. Both
end markets have experienced strong earnings tailwinds since the
third quarter of 2020, and as such we believe these trends to
continue. Recent acquisitions of Milgard in 2019 and Sunrise of
2020 give the company a coast-to-coast North American footprint
with 10 manufacturing facilities and three internal supply
facilities. The company is currently investing in additional
manufacturing capacities to expand their Gratz, Pa. facility and
the expansion of their Temperance, Mich. facility is anticipated to
be completed in 2022. MIWD's above average EBITDA margins in the
16%-17% range are better than those of rivals Cornerstone Building
Brands Inc., the leading company in the U.S. market, and another
major competitor, Jeld-Wen Inc. This is due to MIWD's better
operating efficiency, partial vertical integration (the company
extrudes its own vinyl, fiberglass, aforementioned geographically
diverse manufacturing and distribution footprint, which all help
maximize its freight efficiency.
S&P said, "The stable outlook on MIWD reflects our view that better
demand conditions and profitability will enable it to maintain S&P
Global Ratings'-adjusted leverage of 4x-5x under most reasonable
market conditions despite the volatile commodity pricing
environment. We also expect its S&P Global Ratings'-adjusted
operating cash flow (OCF) to debt to remain between 15% and 25%."
S&P may lower its ratings on MIWD over the next 12 months if its
debt to EBITDA rises above 5x or its OCF to debt falls under 10%.
S&P believes this could occur if:
-- Its EBITDA declines 20% from our base-case assumption because
of weaker demand stemming from a severe downturn, which leads to a
sharp contraction in the company's earnings or a 200-basis-point or
more drop in its EBITDA margins;
-- Its OCF declines by more than 50%, potentially draining its
free cash flow; or
-- It pursues large debt-financed acquisitions or shareholder
friendly actions that cause it to sustain S&P Global
Ratings'-adjusted leverage of more than 5x.
S&P may raise its rating on MIWD over the next 12 months if the
company:
-- Outperforms our base-case expectations such that it reports
higher earnings, S&P Global Ratings'-adjusted leverage of below 4x,
and OCF to debt in excess of 25%; and
-- S&P believes it will sustain these levels under most market
conditions.
MIWD HOLDCO II: Moody's Hikes CFR to B1; Outlook Stable
-------------------------------------------------------
Moody's Investors Service upgraded MIWD Holdco II LLC's (the parent
of MI Windows and Doors, LLC (MIWD)) Corporate Family Rating (CFR)
to B1 from B2, Probability of Default Rating to B1-PD from B2-PD,
and the rating for the company's first lien senior secured term
loan due 2027 to Ba3 from B2. Moody's also assigned a B3 rating to
the company's proposed $400 million senior unsecured notes due
2030. The outlook is stable.
The proceeds of MIWD's new unsecured notes will be used to retire
about $300 million of its first lien term loan and to redeem about
$100 million of the preferred equity held at the parent company.
The company recently converted about $100 million of the preferred
equity (held at MIWD Holding Company LLC, the parent company of
MIWD Holdco II LLC) to common equity, which was subsequently
repurchased, and exercised all of the outstanding common equity
warrants held at the parent company in the amount of $142 million.
These are positive credit considerations given that the company's
preferred equity instrument is treated as debt and the common
equity warrants, where the holders held put rights, presented a
risk of a liquidity event.
"The CFR upgrade reflects the strengthening of the company's scale,
the favorable end market backdrop and the improvement in its credit
metrics pro forma for recent and proposed transactions" said
Natalia Gluschuk, Moody's Vice President - Senior Analyst. The
reduction in preferred equity will reduce the amount of PIK
interest prescribed by the terms of the agreement, therefore
resulting in lower debt increases going forward.
Pro forma for the transactions Moody's estimates MIWD's debt to
EBITDA (including the preferred equity instrument as debt) at 5.2x
and EBITA to interest coverage at 2.5x. Moody's expects that the
company will continue to generate strong results in 2022 and
de-lever toward mid 4.0x.
The following rating actions were taken:
Upgrades:
Issuer: MIWD Holdco II LLC
Corporate Family Rating, Upgraded to B1 from B2
Probability of Default Rating, Upgraded to B1-PD from B2-PD
Senior Secured First Lien Term Loan, Upgraded to Ba3 (LGD3) from
B2 (LGD4)
Assignments:
Issuer: MIWD Holdco II LLC (co-borrower MIWD Finance Corporation)
Senior Unsecured Notes, Assigned B3 (LGD5)
Outlook Actions:
Issuer: MIWD Holdco II LLC
Outlook, Remains Stable
RATINGS RATIONALE
The B1 Corporate Family Rating is supported by: (1) the company's
good position in manufacturing of vinyl and aluminum doors and
windows and its considerable scale with over $1.4 billion in
revenue; (2) national footprint and diversity of product price
points and distribution channels; (3) solid operating margin and
positive free cash flow generation; (4) financial strategy that
focuses on deleveraging; and (5) Moody's expectation of solid
conditions in new construction and repair and remodeling
residential end markets of the company in the next 12 to 18
months.
On the other hand, the rating is constrained by: (1) the company's
aggressive financial policies, which include the use of a preferred
equity instrument that has a PIK component and debt like
characteristics; (2) moderately high debt leverage; (3) the limited
operating history in the company's current configuration having
acquired Milgard in a transformational transaction two years ago;
(4) the company's acquisitive nature and the associated integration
risks; (5) volatility in margin and pricing inherent in the window
and door manufacturing sector given the cyclicality of end markets
and a highly competitive industry environment; and 6) customer
concentration, with top ten customers representing about one third
of total revenue.
The stable outlook reflects Moody's expectation that over the next
12 to 18 months MIWD will benefit from favorable conditions in its
residential end markets, generate solid operating margin and
positive free cash flow, and delever toward mid 4.0x debt to
EBITDA.
Moody's expects MIWD will maintain good liquidity over the next 12
to 15 months, given its positive free cash flow, solid cash
balances, availability under its $150 million ABL revolver, which
is expected to remain largely undrawn, flexibility under the
springing fixed charge coverage covenant, and lack of debt
maturities until 2025, when the revolver expires.
The Ba3 rating on first lien term loan, one notch above the CFR,
reflects the priority position of this debt instrument in relation
to the unsecured notes in the capital structure. MI Windows and
Doors, LLC and its parent MIWD Holdco II LLC are joint borrowers
under the term loan. The loan benefits from guarantees of all
subsidiaries of MIWD Holdco II LLC. The B3 unsecured note rating,
two notches below the CFR, reflects the junior position of this
instrument and the resulting loss absorption in a default scenario.
MIWD HoldCo II LLC and MIWD Finance Corporation will be co-issuers
of the unsecured notes, benefiting from guarantees provided by the
subsidiaries of MIWD Holdco II LLC. Preferred equity is held at
MIWD Holding Company LLC.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded if the company exercises conservative
financial strategies, simplifies its capital structure, maintains
debt leverage comfortably below 4.0x and EBITA to interest coverage
above 4.0x, maintains strong liquidity, and generates strong
operating margins on a sustainable basis as it continues to expand
its size and scale. Favorable end market trends would also be an
important consideration.
Ratings could be downgraded if the company's financial policies
grew more aggressive in terms of capital structure and shareholder
friendly returns, if debt leverage was sustained above 5.0x and
EBITA to interest coverage declined materially below 3.0x, if
operating margins and free cash flow generation were to
deteriorate, including due to a weakening in the company's end
markets, or if acquisition integration difficulties were
experienced.
MI Windows and Doors, LLC is a manufacturer of vinyl and aluminum
windows and patio doors in the US, serving the residential end
markets of new construction and repair and remodeling. The company
is privately held, family and management owned, with a minority
investor being an affiliate of Koch Equity Development LLC. In the
last twelve month period ended October 2, 2021, MIWD generated
about $1.4 billion in revenue.
MIWD HOLDCO: Fitch Assigns 'BB-' LongTerm IDR, Outlook Stable
-------------------------------------------------------------
Fitch Ratings has assigned Long-Term Issuer Default Ratings (IDRs)
of 'BB-' to MIWD Holdco II LLC and MIWD Holding Company LLC (dba MI
Windows and Doors, LLC; MIWD). Fitch has also assigned a
'BB+'/'RR2' rating to MIWD Holdco II LLC's senior secured term loan
and a 'BB-'/'RR4' rating to the company's proposed offering of
senior unsecured notes. The Rating Outlook is Stable.
MIWD's IDR reflects the company's top four position in the highly
fragmented U.S. windows and doors market. The company's strong
profitability metrics and consistently strongly positive FCF
generation are credit positives relative to similarly-rated peers.
Fitch expects the company to maintain modest leverage levels, with
total debt to operating EBITDA between 3.5x and 4.0x during the
rating horizon. The company's high exposure to the residential new
construction market, its concentrated product portfolio within a
fragmented and competitive subsector, and limited geographic
diversification are also considered in the IDR.
KEY RATING DRIVERS
Stable Earnings Outlook: Fitch expects a relatively neutral
operating environment for building products companies in 2022.
Fitch expects MIWD's revenues to increase high-single digit
percentages this year, driven predominantly by price increases
implemented in late 2021 and roughly flat volume growth. Fitch
forecasts declining revenues in 2023 and 2024, which incorporates
Fitch's assumption for slowing residential end-market demand and
some normalization in average selling prices. Fitch expects
adjusted EBITDA margins to be roughly flat yoy at 15.9% in 2022 as
price and cost neutralize, and then situating in the 14.5%-15.5%
range thereafter, supporting strongly positive FCF generation.
Worsening inflation and supply constraints in 2022 and beyond could
necessitate further product price increases. This could be more
challenging to successfully implement if demand were to
meaningfully soften. Additionally, persistently weak demand could
result in sharper average sale price normalization over the
long-term than Fitch currently forecasts. These factors are risks
to Fitch's forecast and could result in worse margin performance
than Fitch currently anticipates.
Modest Leverage Levels: Fitch expects that total debt to operating
EBITDA, which does not include preferred equity as rated-entity
debt (see Summary of Financial Adjustments), will be 3.6x pro forma
for the contemplated financing transactions. Fitch expects total
debt to operating EBITDA to end 2022 around 3.3x and then to
situate in the 3.5x to 4.0x range thereafter, which is appropriate
for the 'BB-' rating. Fitch's leverage forecast assumes that the
company will continue to consolidate the domestic windows and doors
sector and opportunistically redeem preferred equity, which may
raise debt levels.
Management aims to maintain net leverage (excluding preferred
equity) below 3.0x over the long-term, but may exit this range from
time to time for opportunistic acquisition opportunities. Fitch
expects management to adhere to its leverage target on a long-term
basis.
Concentrated Product Portfolio: MIWD's product portfolio is highly
concentrated within vinyl windows. Fitch views the domestic windows
market as highly susceptible to competitive pressures and earnings
cyclicality, which weighs negatively on MIWD's credit profile. The
company's product portfolio spans price points, and the company has
a strong national market position, providing it with some
competitive advantages relative to smaller peers.
End Market Exposure: The company is predominantly exposed to the
residential repair and remodel (R&R) and new residential
construction end-markets in the U.S. Management estimates that
about 50% of sales come from the U.S. residential R&R market and
the remaining 50% of sales come from the U.S. new residential
construction market.
Fitch views R&R activity as a more stable end-market through
economic cycles than new construction activity. The company's
exposure to new residential construction demand is high relative to
Fitch-rated building products peers and could result in more
volatile earnings and credit metrics through the cycle, which is a
limiting factor to the rating.
Strong Profitability and FCF: MIWD generates strong EBITDA margins
relative to similarly-rated peers and competitors within the
windows and doors market. Fitch believes the company's margins
reflect prudent cost management and successfully executed M&A and
integration under current ownership. Despite the risk that margins
contract in a modestly weaker demand environment, Fitch expects the
company to maintain consistently positive FCF over the
intermediate-term due to the limited working capital and capex
intensity of the business, supporting the credit profile of the
company.
Limited Geographic Diversity: The company operates within the
United States and has sales exposure to all 50 states. The company
operates through 10 domestic manufacturing facilities and three
domestic internal supply facilities. Fitch views the company's
geographic exposure as relatively concentrated relative to
similarly-rated and higher-rated peers, which tend to have more
international sales exposure. However, the company's strong
national presence provides it with better diversity than
lower-rated peers, which tend to be more highly concentrated within
certain states.
Ownership and Distributions: MIWD is a majority-family owned and
operated business with Koch Equity Development (KED) participating
as a minority shareholder and holder of preferred equity. Fitch
expects the company to opportunistically redeem preferred shares
with debt proceeds and upstreamed cash from the operating entities
during the rating horizon, to the extent allowable under the
secured debt's restricted payment covenants.
DERIVATION SUMMARY
MIWD's 'BB-' rating reflects its relatively strong market position
in the U.S. domestic windows and doors market, its above-average
profitability metrics, modest leverage levels, and concentrated
product portfolio within a cyclical sector. The company is strongly
positioned relative to 'B'-category Fitch-rated building products
peers, including Doman Building Materials Ltd. (Doman; B/Stable),
Chariot Holdings, LLC (dba Chamberlain Group; B/Negative) and LBM
Acquisition, LLC (LBM; B/Negative).
MIWD has stronger credit metrics, profitability metrics, and lower
sales exposure to commodified product offerings than Doman and LBM.
MIWD's leverage levels are financial policy are more conservative
than Chamberlain's. Compared to higher rated investment-grade
peers, MIWD has significantly smaller scale, higher than average
exposure to new residential construction, higher leverage levels
and a more concentrated product portfolio.
Fitch applies its Parent and Subsidiary Linkage Rating Criteria to
arrive at ratings for each entity in the group, using the Stronger
Subsidiary (MIWD Holdco II LLC), Weaker Parent (MIWD Holding
Company LLC) path. Fitch considers Holdco II a stronger credit
profile than Holding Company due to the former's unrestricted
access to group cash flows. MIWD Holding Company LLC is the issuer
of the financial statements and has no operations and does not
issue Fitch-defined debt.
Fitch categorizes 'legal ring-fencing' as 'porous' under the
criteria due to Holdco II's limitations on upstreaming dividends
based on short-dated term loan documentation. Fitch considers
'Access & Control' 'Open' primarily due to Holding Company's direct
ownership over Holdco II.
Fitch assesses both the standalone credit profile of Holdco II and
the consolidated group credit profile as 'BB-'. Therefore, no up
notching of Holdco II applies and both Holding Company and Holdco
II are rated 'BB-'.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- Revenues increase 8% in 2022 and EBITDA margins remain roughly
flat at 15.5%-16.0% of revenues;
-- Revenues decline organically in 2023 and 2024, which
incorporates Fitch's assumption for a weaker residential
demand environment. EBITDA margins situate in the 14.5%-15.5%
range;
-- Capex as a percent of revenues increases to 4%-5% of revenues
in 2022 in order to expand production capacity;
-- FCF margins of 6%-7% of revenues annually during the
intermediate-term;
-- FCF and incremental debt issuance applied towards M&A activity
and preferred equity redemption during the rating horizon;
-- Total debt to operating EBITDA (excluding preferred equity)
situates in the 3.5x to 4.0x range during the rating horizon.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Fitch's expectation that total debt to operating EBITDA will
be sustained below 3.0x;
-- The company improves the diversity of its business by
meaningfully reducing its exposure to residential new
construction activity, broadening its product offerings or
significantly increasing its scale.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Fitch's expectation that total debt to operating EBITDA will
be sustained above 4.0x;
-- Sustained deterioration in operating performance resulting in
EBITDA margins contracting to the low-double digit
percentages, resulting low-single digit FCF margins.
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: MIWD has an adequate liquidity position,
supported by its readily available cash balance of $85 million and
its undrawn $150 million ABL revolving credit facility at the end
of 3Q21. Fitch expects the company's liquidity position to be
relatively unchanged following the unsecured bond issuance, which
will be used to repay term loan borrowings and redeem preferred
equity.
The company's nearest material maturity is not until December 2027,
when the company's term loan comes due. The ABL is set to expire in
December 2025. Fitch expects the company's seasonal working capital
usage to be limited and for annual FCF generation to remain
positive, further supporting the liquidity position in the
intermediate-term.
ISSUER PROFILE
MI Windows and Doors, LLC is one of the largest manufacturers of
vinyl, aluminum and fiberglass windows and patio doors in the U.S.,
selling its products into the new construction and R&R residential
markets through third-party distribution.
SUMMARY OF FINANCIAL ADJUSTMENTS
Fitch considers outstanding preferred equity issued by MIWD Holding
Company LLC as non-debt of the rated entity, per Section 7 of
Appendix 1: Main Analytical Adjustments under its Corporate Rating
Criteria. Fitch considers the preferred shares a shareholder loan,
as they are held by KED. Fitch determined that the presence of
these preferred equity instrument does not increase the probability
of default under rated-entity debt, resulting in the non-debt
classification.
Fitch adjusts historical reported EBITDA by adding back non-cash
stock-based compensation expense, non-cash inventory step-up
charges and one-time transaction fees to adjusted EBITDA.
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.
MJH HEALTHCARE: Moody's Assigns B2 CFR; Outlook Stable
------------------------------------------------------
Moody's Investors Service assigned first-time ratings to MJH
Healthcare Holdings, LLC ("MJH") including a B2 Corporate Family
Rating (CFR), and a B2-PD Probability of Default Rating. Moody's
also assigned a B2 rating to MJH's senior secured first lien credit
facility comprised of a 7-year $650 million term loan B and a 5
year $75 million revolving credit facility. The outlook is stable.
MJH is being acquired by BDT Capital Partners, LLC. The transaction
will be funded with proceeds from the term loan B together with a
significant amount of preferred and common equity. As part of the
transaction, MJH's existing equity owners are maintaining a
meaningful minority stake in the company.
Assignments:
Issuer: MJH Healthcare Holdings, LLC
Corporate Family Rating, Assigned B2
Probability of Default Rating, Assigned B2-PD
Senior Secured 1st Lien Term Loan B, Assigned B2 (LGD3)
Senior Secured 1st Lien Revolving Credit Facility , Assigned B2
(LGD3)
Outlook Actions:
Issuer: MJH Healthcare Holdings, LLC
Outlook, Assigned Stable
ESG factors are material to the ratings assignment. Among
governance considerations, the company is likely to employ
aggressive acquisition strategy to grow its business which would
potentially increase financial leverage.
RATINGS RATIONALE
The B2 CFR reflects MJH's relatively small size and scale with
anticipated 2021 revenue of less than $350 million. The rating
reflects MJH's moderate pro forma financial leverage on a Moody's
adjusted basis for the twelve months ended September 30, 2021,
which Moody's expects will remain in the mid-to-high four times
range over the next 12-18 months. While MJH focuses on a diverse
set of therapeutic categories, the company has some therapeutic
category concentration.
However, MJH benefits from its solid position as a niche provider
of medical marketing services spanning nine therapeutic categories
to the pharmaceutical, biotech and life science industries. The
company also differentiates itself by collaborating with industry
experts to internally develop most of the medical content it
distributes to end users. Content is distributed through various
mediums including in-person events, virtual events, and custom
publications via more than 50 owned brands.
Moody's expects MJH to have high single digit revenue growth
annually over the next few years, which together with good EBITDA
margin and low capital expenditure needs will drive healthy free
cash flow. In 2022 Moody's expects MJH's topline growth to be about
8% as the company increases its share of its customers' marketing
business targeting health care decision makers. Moody's expects MJH
to continue to generate solid margins. However, Moody's expects
profitability headwinds over the next few years as the impact from
the pandemic fades, payroll expenses rise, and there are an
increasing number of higher cost/lower margin in-person events
relative to more inexpensive/higher margin virtual events.
Moody's expects MJH to maintain good liquidity over the next year
supported largely by Moody's expectation for solid positive free
cash flow generation over the next 12 months and access to a $75
million revolver that will be undrawn at the close of the
transaction.
The senior secured credit facility is rated B2, in line with MJH's
B2 CFR. The senior secured credit facility accounts for the
preponderance of debt at the company. The credit facility will be
secured by a first priority lien on substantially all tangible and
intangible assets of MJH and the guarantors. The company will also
have preferred equity in the capital structure that will be held at
MJH Healthcare Holdings Parent, LLC, will be structurally
subordinated to the senior secured credit facility, and it does not
have a debt claim in the event of a bankruptcy.
The outlook is stable incorporating Moody's expectation that MJH
will continue to grow its size and scale both organically and
through acquisitions while Moody's adjusted debt-to-EBITDA remains
in the mid-to-high 4 times range over the next 12-18 months.
ESG considerations are material to MJH's credit profile. MJH has
some social risk associated with its core function as a marketer of
drugs in development for the pharmaceutical and biotech industry.
Among governance considerations, MJH is private equity owned, which
could lead to an increasingly aggressive financial policy over
time.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if MJH demonstrates a track record of
positive free cash flow, and effectively manages its growth with
prudent financial policies. Further the ratings could be upgraded
if adjusted debt to EBITDA is sustained below 3.5 times.
The ratings could be downgraded if liquidity weakens or adjusted
debt-to-EBITDA is sustained above 5 times. In addition, ratings
could be downgraded if the company makes a large debt financed
acquisition or shareholder distribution in the form of a dividend.
Following are some of the preliminary terms in the marketing term
sheet that are subject to change during syndication:
The senior credit facility is expected to contain flexible
covenants for transactions that, if undertaken, could adversely
affect creditors. This includes (but is not limited to) incremental
facility capacity up to the sum of: (a) the greater of $140 million
and 100% of Consolidated EBITDA as defined on a pro forma basis for
the most recent last four quarter period; (b) plus any unused
portion of the general debt basket that MJH elects to apply to the
incremental facility; (c) less the aggregate outstanding principal
amount of debt incurred pursuant to the definition of Incremental
Equivalent/Ratio Debt as defined; (d) plus the aggregate amount of
any voluntary permanent terminated commitment reductions with
respect to the revolver and all voluntary payments of any term
loans or other debt as defined. An unlimited additional amount is
permitted so long as the First Lien Net Leverage Ratio as defined
does not exceed the greater of the First Lien Net Leverage Ratio on
the closing date and, in the case of permitted acquisitions or
other investments the ratio immediately prior to incurring such
indebtedness.
The agreement is also expected to contain step downs in the asset
sale prepayment requirement to 50% and 0% if the First Lien
Leverage Ratio as defined is equal to the First Lien Leverage Ratio
at the closing date less 0.25 times or 0.5 times, respectively.
Also, the credit facility will prohibit any subsidiary that owns
any intellectual property considered material to MJH and its
restricted subsidiaries from being designated as an unrestricted
subsidiary, as well as any material intellectual property of MJH
from being transferred by the company or a restricted subsidiary to
an unrestricted subsidiary.
MJH Healthcare Holdings, LLC (MJH) - dba MJH Life Sciences -
headquartered in Cranbury, NJ, is a medical media company that
provides health care news, information, and other content to
millions of health care decision makers, physicians, pharmacists,
payers and patients. The fundamental data and insights that are
presented are developed in collaboration with its network of
industry partners and key opinion leaders. Information is
distributed through multiple channels including print and digital
content, live events, educational programs, custom market research,
and creative services. The company is owned by PE firm BDT Capital
Partners, LLC.
MOUTHPEACE DENTAL: Competing Plans Set for Feb. 24
--------------------------------------------------
Debtor Mouthpeace Dental, LLC, filed an Amended Plan of
Reorganization and a corresponding Disclosure Statement. Creditor
AP Brickworks, LLC, filed a competing Liquidating Chapter 11 Plan
and a corresponding Disclosure Statement.
Judge Barbara Ellis-Monro on Jan. 7, 2022, entered an order
approving the Disclosure Statements and Solicitation Packages of
the Plan Proponents.
With respect to the AP Plan, Class 1 is unimpaired and, therefore,
conclusively presumed to accept the AP Plan in accordance with
Section 1126(f) of the Bankruptcy Code, and Class 8 is not
receiving or retaining any property under the AP Plan and,
therefore, is conclusively presumed to reject the AP Plan in
accordance with Section 1126(g) of the Bankruptcy Code. Therefore,
AP shall not send any Ballots to holders of Claims or Equity
Interests in Class 1 or 8.
To be counted as votes to accept or reject the Debtor's Plan,
Ballots must be properly executed, completed (consistent with the
provisions of this Order), and delivered to Rountree Leitman &
Klein, Attention Benjamin R. Keck (the "Debtor's Balloting Agent")
at the address or email address specified on the Ballots so that
they are actually received no later than 5:00 p.m. Eastern Time on
February 14, 2022.
Upon completion of the balloting, the Balloting Agents will each
file a tabulation report certifying the amount and number of
allowed Claims of the Voting Classes accepting or rejecting their
respective Plans. Each Balloting Agent shall cause such tabulation
report to be filed on or before February 21, 2022 at 5:00 p.m.
(Eastern).
If any claimholder or equity interest holder seeks to challenge the
allowance of its Claim or Equity Interest for voting purposes in
accordance with the Tabulation Procedures, such claimholder must
file a motion, pursuant to Rule 3018(a) of the Bankruptcy Rules for
an order temporarily allowing its Claim or Equity Interest in a
different amount or classification for purposes of voting to accept
or reject a Plan (a "Rule 3018 Motion") and serve the Rule 3018
Motion on the respective Plan Proponent so that it is received by
such Plan Proponent no later than Feb. 7, 2022 at 5:00 p.m.
(Eastern). The Plan Proponent to which the Rule 3018 Motion is
directed shall then have until Feb. 14, 2022 at 5:00 p.m. (Eastern)
to file and serve any responses to such Rule 3018 Motion(s).
A joint hearing to consider confirmation of the respective Plans
will be held before Judge Barbara Ellis-Monro in Courtroom 1402 at
the United States Bankruptcy Court for the Northern District of
Georgia, 75 Ted Turner Drive, S.W., Atlanta, Georgia 30303 on
February 24, 2022 at 10:00 a.m. (Eastern).
Objections to confirmation of the Plan Proponents' respective Plans
shall be filed and served so as to be received by no later than
5:00 p.m. (Eastern) on Feb. 14, 2022.
The Plan Proponents may, but shall not be required, to file a
memorandum in support of plan confirmation and/or a consolidated
reply to any timely filed objection to their respective Plans no
later than February 21, 2022 at 5:00 p.m. (Eastern).
About Mouthpeace Dental
Mouthpeace Dental, LLC filed a voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga. Case No.
20-72289) on Dec. 3, 2020. Syretta Wells, sole shareholder, signed
the petition. In the petition, the Debtor disclosed total assets
of up to $50,000 and total liabilities of up to $1 million.
Judge Barbara Ellis-Monro oversees the case.
Rountree Leitman & Klein, LLC and Carroll & Company, CPAs, P.C.,
serve as the Debtor's legal counsel and accountant, respectively.
Bank of America, N.A., as lender, is represented by:
Beth E. Rogers, Esq.
Rogers Law Offices
100 Peachtree Street, Ste. 1950
Atlanta, GA 30303
Tel: 770-685-6320
Fax: 678-990-9959
Email: brogers@berlawoffice.com
NEUBASE THERAPEUTICS: Appoints New Chief Financial Officer
----------------------------------------------------------
NeuBase Therapeutics, Inc. has appointed Todd P. Branning as chief
financial officer. Mr. Branning has more than 25 years of
experience leading corporate finance and accounting, tax, financial
planning and analysis, and investor relations for several publicly
traded pharmaceutical companies.
"Todd brings the highest level of sophistication in finance to
NeuBase" said Dietrich A. Stephan, Ph.D., Founder, CEO and Chairman
of NeuBase. "We are a truly unique genetic medicines platform
company with a technology that is specifically designed to directly
and precisely drug the double-helix of the human genome and a new
therapeutic modality to address root causality across rare and
common diseases. Enlightened leadership, creativity, and clarity
of thought are essential in developing any new transformational
solution. Thus, I am delighted to welcome Todd to the executive
team as we begin our next phase of growth with the filing of our
first INDs and scaling our therapeutic pipeline."
"NeuBase has the potential to transform and consolidate the
pharmaceutical industry as we know it by bringing forward a 'final
generation' of genetic medicines in a scalable manner," said Mr.
Branning. "I am excited to join NeuBase at this important time in
the Company's growth and contribute my expertise to realize the
enormous potential of its platform to treat a wide range of
diseases affecting millions of patients that currently have limited
or no therapeutic options."
Prior to joining NeuBase, Mr. Branning was CFO of Phathom
Pharmaceuticals, Inc., a publicly traded late clinical-stage
biopharmaceutical company. Before that, he was senior vice
president, CFO of Amneal Pharmaceuticals, Inc., a publicly traded
pharmaceutical company, where he helped to build, leverage, and
optimize infrastructure following the completion of a
transformational merger. Prior to joining Amneal, he was Senior
Vice President, CFO of the global generic medicines division at
Teva Pharmaceutical Industries Ltd., a multinational generic
pharmaceuticals company, where he led the finance function and
served on the leadership team responsible for managing the
day-to-day operations of Teva's largest multi-billion- dollar
commercial unit. Mr. Branning has also held financial leadership
roles at Allergan plc, PricewaterhouseCoopers LLP, PPG Industries,
Inc., and Merck & Co., Inc. Mr. Branning received his BBA from the
University of Miami and MBA from Carnegie Mellon University. Mr.
Branning is also a Certified Public Accountant and has completed a
CFO certification program at The Wharton School at the University
of Pennsylvania.
The Company entered into an offer letter with Mr. Branning,
effective Jan. 10, 2022. Pursuant to the Offer Letter, Mr.
Branning's annual salary will be $425,000, and he will be eligible
for an annual performance bonus with a target of 40% of his base
salary. Mr. Branning's employment will be on an "at will" basis.
Additionally, the Company will grant Mr. Branning an option to
purchase 300,000 shares of the Company's common stock under the
Company's 2019 Stock Incentive Plan on his first day of employment.
Subject to Mr. Branning's continued employment with the Company,
1/4th of the shares underlying the Option will vest on the first
anniversary of Mr. Branning's start date, and 1/36th of the
remaining shares underlying the Option will vest at the end of each
calendar month thereafter, subject to vesting acceleration as set
forth in the Offer Letter. Mr. Branning also entered into the
Company's standard indemnification agreement and standard
confidentiality and invention assignment agreement with the
Company.
About NeuBase Therapeutics
NeuBase -- www.neubasetherapeutics.com -- is accelerating the
genetic revolution by developing a new class of precision genetic
medicines that Drug the Genome. The Company's therapies are built
on a proprietary platform called PATrOL that encompasses a novel
peptide-nucleic acid antisense oligonucleotide technology combined
with novel delivery shuttles that overcome many of the hurdles to
selective mutation engagement, repeat dosing, and systemic delivery
of genetic medicines. With an initial focus on silencing
disease-causing mutations in debilitating neurological,
neuromuscular, and oncologic disorders, NeuBase is committed to
redefining medicine for the millions of patients with both common
and rare conditions, who currently have limited to no treatment
options.
NeuBase reported a net loss of $25.41 million for the year ended
Sept. 30, 2021, a net loss of $17.38 million for the year ended
Sept. 30, 2020, and a net loss of $26.13 million for the year ended
Sept. 30, 2019. As of Sept. 30, 2021, the Company had $64.17
million in total assets, $10.10 million in total liabilities, and
$54.07 million in total stockholders' equity.
NEW TROJAN: Moody's Lowers CFR to B3; Outlook Stable
----------------------------------------------------
Moody's Investors Service downgraded New Trojan Parent, Inc.'s
ratings including its corporate family rating ("CFR") to B3 from B2
and probability of default rating ("PDR") to B3-PD from B2-PD.
Moody's also downgraded its first lien bank credit facilities,
which includes its revolver and first lien term loan B, to B2 from
B1 and downgraded its second lien term loan to Caa2 from Caa1. The
outlook is stable.
The downgrade reflects the company's high leverage since the LBO in
early 2021. Although demand for medical scrubs has continued to be
strong, New Trojan is facing elevated costs due to a challenging
supply chain environment. The higher than expected costs has
resulted in less EBITDA and free cash flow generation than expected
and has delayed debt repayment leading to Moody's adjusted EBITDA
of approximately 8.5x for the LTM period ended September 30, 2021.
Downgrades:
Issuer: New Trojan Parent, Inc.
Corporate Family Rating, Downgraded to B3 from B2
Probability of Default Rating, Downgraded to B3-PD from B2-PD
Gtd Senior Secured Revolving Credit Facility, Downgraded to B2
(LGD3) from B1 (LGD3)
Gtd Senior Secured 1st Lien Term Loan B, Downgraded to B2 (LGD3)
from B1 (LGD3)
Gtd Senior Secured 2nd Lien Term Loan, Downgraded to Caa2 (LGD6)
from Caa1 (LGD6)
Outlook Actions:
Issuer: New Trojan Parent, Inc.
Outlook, Remains Stable
RATINGS RATIONALE
New Trojan Parent, Inc.'s (dba "Careismatic") B3 CFR reflects its
high leverage, modest scale and narrow product focus on a single
apparel category (predominantly medical uniforms and scrubs) and
high customer concentration, which exposes the company to changes
in retailer merchandising and pricing strategies. The ratings also
reflect governance considerations including financial strategies
that will be dictated by its private investment owners, including a
tolerance for high leverage and the potential for debt-financed
acquisitions or dividend distributions. Mitigating these risks are
the stable and growing demand for medical uniforms, which has
recently accelerated due to the global coronavirus pandemic, and
the category's low fashion risk and the replenishment nature of the
product which drive a typically stable and predictable revenue
stream. The company also benefits from portfolio of well-recognized
brands within its market and good liquidity.
The stable outlook reflects Moody's view that liquidity will remain
good, with positive free cash flow generation and a fully available
$100 million revolving credit facility. The outlook also reflects
that Moody's expects credit metrics to improve on revenue and
earnings growth and debt reduction.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be downgraded if the company's overall operating
performance, liquidity or relationships with key customers
deteriorate, or if financial policies become more aggressive such
as through material debt-financed dividends. Quantitively, the
ratings could be downgraded should FCF/debt fall below 1% or
EBITA/interest expense fall below 1.25x.
The ratings could be upgraded if the company maintains good
liquidity and a commitment to debt reduction. Quantitatively, the
ratings could be upgraded with debt/EBITDA below 6x and
EBITA/interest above 1.75x.
New Trojan Parent, Inc. is the parent company of Careismatic
Brands, Inc., which designs and distributes medical and school
uniform apparel and related products globally. Careismatic operates
using various trademarks including Cherokee and Dickies. The
company is owned by the private equity firm Partners Group.
NUTRIBAND INC: Signs Feasibility Agreement to Develop AVERSA
------------------------------------------------------------
Nutriband Inc. has signed a feasibility agreement with Kindeva Drug
Delivery to develop Nutriband's lead product, AVERSA Fentanyl,
based on its proprietary AVERSA abuse deterrent transdermal
technology and Kindeva's FDA-approved transdermal fentanyl patch
(fentanyl transdermal system). The feasibility agreement is
focused on adapting Kindeva's commercial transdermal manufacturing
process to incorporate AVERSA technology.
Nutriband's AVERSA abuse deterrent technology can be utilized to
incorporate aversive agents into transdermal patches to prevent the
abuse, diversion, misuse and accidental exposure of drugs with
abuse potential. The technology is covered by a broad intellectual
property portfolio with a recent notice of allowance from the
United States Patent and Trademark Office (USPTO) and international
patents granted in Europe, Japan, Korea, Russia, Mexico, and
Australia.
Kindeva, a leading global contract development and manufacturing
organization (CDMO), has a rich legacy of over 50 years of
pharmaceutical innovation as 3M Drug Delivery Systems. Kindeva
scientists and engineers include pioneers in the transdermal
industry who developed the first drug-in-matrix transdermal patch
which has become the standard patch design in the transdermal
market. Kindeva currently manufactures millions of branded and
generic transdermal patches each year which are distributed
globally, primarily in the US, Europe and Asia.
"We are delighted to partner with Kindeva, a world leader in
transdermal product development and manufacturing, to help us bring
AVERSA Fentanyl to market. Our focus is to develop our AVERSA
abuse deterrent technology to improve the safety profile of
transdermal drugs susceptible to abuse, such as fentanyl, while
making sure that these drugs remain accessible to those patients
who really need them," said Gareth Sheridan, CEO, Nutriband.
"Kindeva has a long track record of proven innovation in drug
delivery, including in transdermal systems. We are excited to
bring the talents of our team and our approved product to this
feasibility collaboration with Nutriband. Continuing to formulate
and develop combination products that are safe and effective for
patients is central to our mission," said Aaron Mann, CEO,
Kindeva.
About Nutriband
Nutriband Inc. -- www.nutriband.com -- is primarily engaged in the
development of a portfolio of transdermal pharmaceutical products.
Its lead product under development is an abuse deterrent fentanyl
patch incorporating its AVERSA abuse deterrence technology. AVERSA
technology can be incorporated into any transdermal patch to
prevent the abuse, misuse, diversion, and accidental exposure of
drugs with abuse potential.
Nutriband reported a net loss of $2.93 million for the year ended
Jan. 31, 2021, a net loss of $2.72 million for the year ended
Jan. 31, 2020, and a net loss of $3.33 million for the year ended
Jan. 31, 2019. As of Oct. 31, 2021, the Company had $15.43
million in total assets, $1.11 million in total liabilities, and
$14.32 million in total stockholders' equity.
OMAGINE INC: US Trustee Says Plan Disclosures Inadequate
--------------------------------------------------------
William K. Harrington, the United States Trustee for Region 2,
submitted an objection to the Disclosure Statement for the Plan of
Reorganization for Omagine Inc., and Journey of Light, Inc.
The United States Trustee points out that the Disclosure Statement
should be amended to provide creditors and equity holders with
sufficient information to allow them to make an informed choice as
to whether to vote to accept or reject the Plan of Reorganization,
or to raise objections to the Plan.
The U.S. Trustee notes that that the creditors that vote for the
Plan and equity holders that are deemed to accept the Plan are
forced to release claims they may have against the Debtors'
officers, directors and attorneys. These are impermissible
non-consensual releases, as creditors and equity holders are not
asked to opt-in to the releases to be bound by them. The
Disclosure Statement, however, does not contain any information
–- let alone adequate information -- regarding the releases. The
Disclosure Statement fails to address basic questions that should
be answered before there is a vote on the Plan. Specifically, the
Disclosure Statement should address (i) why the Plan treats class 5
equity holders as unimpaired despite the fact the legal rights of
each class 5 member will be altered by requiring them to provide
non-consensual third-party releases, (ii) the authority to justify
non-consensual releases that do not require parties to opt-in to
the releases, (iii) what, if anything, is being provided in return
for the nonconsensual releases, (iv) why the non-consensual
releases are necessary and included in the Plan, (v) why the
Debtors believe this Court has jurisdiction to order the
non-consensual release of the claims of creditors and interest
holders against non-debtors, and (vi) the time period to which the
non-consensual releases pertain.
According to the United States Trustee, additionally, under the
Plan priority tax claims will only receive a distribution if the
Debtors are successful in pursuing certain litigation after the
Plan is confirmed. Priority tax claimants, then, may never receive
a distribution, let alone be paid the total value of their claims
within five years of the commencement of these cases. Accordingly,
the U.S. Trustee believes the Plan may not comply with Section
1129(a)(9)(C) of the Bankruptcy Code, which requires, among other
things, priority tax claims to be paid the total value of their
claim, as of the effective date, over a period not exceeding 5
years after the commencement of the case. The Disclosure Statement
should address how, if at all, the Plan complies with section
1129(9)(C).
Moreover, the U.S. Trustee asserts that under the Plan all
executory contracts, including Derivative Equity Interests, are
rejected. Claims for rejection damages, however, will not share in
any distribution, including the distribution to unsecured
creditors. The Disclosure Statement neither lists the executory
contracts the Debtors will reject, nor indicates if the Debtors do
not believe such executory contracts exist. In addition, the
Disclosure Statement does not explain why unsecured claims for
rejection damages, if any, will not share in the distribution with
other unsecured creditors.
About Omagine and Journey of Light
Omagine, Inc., and Journey of Light, Inc., sought Chapter 11
protection (Bankr. S.D.N.Y. Lead Case No. 20-10742) on March 10,
2020. At the time of filing, Omagine listed up to $50,000 in
assets and up to $10 million in liabilities while Journey of Light
listed as much as $50,000 in both assets and liabilities.
Other than Omagine's claims to be brought in Oman, the Debtors have
virtually no assets as of the bankruptcy filing date. Omagine,
Inc., and Journey of Light were previously in the entertainment,
hospitality and real estate development opportunities in the Middle
East, including a mixed-use entertainment, hospitality, and real
estate development project in Muscat, Oman.
Judge Michael E. Wiles oversees the cases.
The Debtors tapped Rotbert Business Law PC as bankruptcy counsel
and BSA Al Rashdi & Al Barwani Advocates as litigation counsel.
ORIGINCLEAR INC: Sells $620K Worth of Series Y Preferred Shares
---------------------------------------------------------------
Between Dec. 17, 2021 and Jan. 6, 2022, Originclear, Inc. entered
into subscription agreements with certain accredited investors
pursuant to which the company sold an aggregate of 6.2 shares of
the company's Series Y preferred stock for an aggregate purchase
price of $620,000. The company also issued an aggregate of
4,960,000 warrants to the investors.
Conversion of Preferred Shares
On Jan. 4, 2022, holders of the company's Series R preferred stock
converted an aggregate of 235 Series R shares into an aggregate of
17,379,647 shares, including make-good shares, of the company's
common stock.
Between Jan. 4, 2022 and Jan. 6, 2022, holders of Series U
preferred stock converted an aggregate of 405 Series U shares into
an aggregate of 21,135,847 shares of the company's common stock.
On Jan. 4, 2022, holders of Series W preferred stock converted an
aggregate of 50 Series W shares into an aggregate of 694,446 shares
of the company's common stock.
Dividends in Shares of Common Stock
On Dec. 31, 2021, Originclear issued an aggregate of 294,723 shares
of the company's common stock as dividends to certain holders of
Series O preferred stock.
Consultant Issuances
Between Dec. 1, 2021 and Dec. 31, 2021, Originclear issued to
consultants and one employee an aggregate of 6,507,540 shares of
the company's common stock for services including 1,789,639 shares
of common stock for settlement of prior consulting agreements.
About OriginClear
Headquartered in Clearwater, Florida, OriginClear --
www.originclear.tech -- is a water technology company which has
developed in-depth capabilities over its 14-year lifespan. Those
technology capabilities have now been organized under the umbrella
of OriginClear Tech Group.
OriginClear reported net income of $13.26 million for the year
ended Dec. 31, 2020, compared to a net loss of $27.47 million for
the year ended Dec. 31, 2019. As of June 30, 2021, the Company had
$2.11 million in total assets, $45.45 million in total liabilities,
$9.36 million in commitments and contingencies, and a total
shareholders' deficit of $52.70 million.
Houston, Texas-based M&K CPAS, PLLC, the Company's auditor since
2019, issued a "going concern" qualification in its report dated
May 21, 2021, citing that the Company suffered a net loss from
operations and has a net capital deficiency, which raises
substantial doubt about its ability to continue as a going concern.
PCDM PROPERTIES: Creditors to Get Installments, Interest in Plan
----------------------------------------------------------------
PCDM Properties, LLC, filed a Combined Plan of Reorganization and
Disclosure Statement.
After the filing of the bankruptcy petition, PCDM was authorized to
continue in business under the protection of the Bankruptcy Code
and to attempt to work out an arrangement with creditors on a plan
for the repayment of its debts.
On November 2, 2016, PCDM Properties, LLC was incorporated under
the laws of Louisiana. The Debtor's owns 6 residential single
family rental properties located at:
* 209 Macklyn Drive, Lafayette, Louisiana
* 205 Richland Avenue, Lafayette, Louisiana
* 303 Doc Duhon Street, Lafayette, Louisiana
* 209 Odile Street, Lafayette, Louisiana
* 508 West Alexander Street, Lafayette, Louisiana
* 302 Zilia Street, Lafayette, Louisiana
The liquidation analysis shows that unsecured creditors would
receive a 100% pro rata if the Debtor's assets were liquidated.
There are, however, no known unsecured creditors in this case.
To date, there have been no unsecured proofs of claim filed and
PCDM is unaware of any unsecured and/or undersecured claims.
All of the Assets of the Reorganized Debtor, including all
fixtures, equipment, intangibles, movable property and immovable
property will remain in the possession of PCDM free and clear of
any mortgage, lien, judgment and/or other encumbrances, none of
which will be recognized and maintained under this plan, unless
provided for herein.
The United States Trustee's fees do not require allowance by the
Court. Both pre-confirmation and post-confirmation UST fees shall
be paid in cash and in full pursuant to all applicable provisions
of the Bankruptcy Code and other statutory provisions. PCDM will be
required to continue to file monthly operating reports and/or
disbursement reports and shall pay quarterly fees to the UST until
this case is closed, converted, or dismissed. The reports shall be
filed on the same frequency as operating reports were filed
according to the Debtor in Possession Order.
The secured claim due Home Bank is $50,060 inclusive of accrued
interest and attorney fees in accordance with the proof of claim
filed in this proceeding. The Allowed Secured Claim of the Home
Bank will be amortized over 240 months and accrue interest at rate
of 4.25% per annum from date until paid and will be satisfied
by payments of 83 equal monthly payments in the amount of $376.59
each and one final payment on the 84th month in an amount equal to
the entire unpaid balance of principal and interest then due shall
be immediately due and payable.
The secured claim due Velocity Commercial Capital is $380,533
inclusive of accrued interest and attorney fees in accordance with
the proof of claim filed in this proceeding. The Allowed Secured
Claim of the Velocity will be amortized over 360 months and accrue
interest at rate of 5.5% per annum from date until paid and will be
satisfied by payments of 83 equal monthly payments in the amount of
$2,167 each and one final payment on the 84th month in an amount
equal to the entire unpaid balance of principal and interest then
due shall be immediately due and payable.
The secured claim due Gulf Coast Bank was $145,500 inclusive of
accrued interest and attorney fees. The Allowed Secured Claim of
Gulf Coast Bank will be amortized over 240 months and accrue
interest at rate of 8.5% per annum from the confirmation date until
paid and will be satisfied by payments of 35 equal monthly payments
in the amount of $1,280 each and one final payment on the 36th
month in an amount equal to the entire remaining unpaid balance of
principal and interest which remaining amount shall then be
immediately due and payable.
Attorney for PCDM Properties, LLC:
DAVID PATRICK KEATING
THE KEATING FIRM, APLC
P.O. Box 3426
Lafayette, LA 70502
Phone: (337) 233-0300
Email: rick@dmsfirm.com
A copy of the Combined Plan of Reorganization and Disclosure
Statement dated Jan. 7, 2022, is available at
https://bit.ly/3HOkWDy from PacerMonitor.com.
About PCDM Properties
PCDM Properties, LLC, filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. W.D. La. Case No. 21
50212) on April 13, 2021. At the time of filing, the Debtor
disclosed $500,001 to $1 million in assets and $100,001 to $500,000
in liabilities. The Keating Firm, APLC serves as the Debtor's
legal counsel.
PIKE CORP: Moody's Rates New USD Unsecured Notes 'B3'
-----------------------------------------------------
Moody's Investors Service has assigned a B3 rating to the new USD
senior unsecured notes to be issued by Pike Corporation. With the
proceeds, Pike plans to pay dividends and repay a bridge loan used
to fund the acquisition of Entregado Group, Inc. Both debt-funded
transactions are credit negative, as they will increase debt
leverage and reduce financial buffer against unexpected cost
overruns from electric construction and engineering projects. They
also reflect the company's aggressive financial policy and elevate
the risk of a rating decline should business integration or project
execution go against plan. Pike's B2 Corporate Family Rating
("CFR") with a stable outlook remains unchanged for now, as its
business profile and credit metrics including pro-forma debt
leverage are comparable to peers in the same rating category.
The B3 rating on the senior unsecured notes reflects the
junior-ranking position of this debt instrument with respect to the
Ba3 rated senior secured first-lien credit facilities and the
limited assets available for repayment after higher ranking debt in
a default scenario. Pike's gross debt will increase to $1,425
million, including $700 million first-lien term loan due January
2028 and $725 million senior unsecured notes (including the new
$225 million issuance) due September 2028.
The ratings are subject to the transaction closing as proposed and
receipt and review of the final documentation.
Assignments:
Issuer: Pike Corporation
Senior Unsecured Regular Bond/Debenture, Assigned B3 (LGD5)
RATINGS RATIONALE
Pike's pro-forma debt leverage, including the incremental debt and
Moody's adjustment for operating lease, will increase to about 5x
from 4.2x at the end of September 2021. Although the pro-forma
leverage is in line with the rating requirement of below 5.5x,
Moody's expects greater variation in Pike's credit metrics and cash
flows given Entregado's large exposure to fixed-price electric
infrastructure projects, restructuring needs to improve Entregado's
profitability, as well as Pike's earnings volatility from storm
restoration service and significant working capital changes
associated with a large electric transmission project.
Entregado's transmission and distribution construction services to
electric utilities in the South Central and Southeastern parts of
the US are complementary to Pike's electric construction and
engineering business. The acquisition will also strengthen Pike's
geographic footprint. However, Entregado had weak operating
performance from undertaking lump-sum contracts over the last three
years. The $110 million acquisition price paid by Pike assumes
significant earnings improvement from cost synergies, including
more favorable lease agreements and back office consolidation, to
be realized in the next 12 months. The integration risk is
mitigated by Entregado's small business scale and Pike's good
operating track record.
The company's greater risk tolerance will likely lead to further
shareholder friendly actions and leave little leeway within its B2
CFR against cost overruns or other business risks. Pike has
embarked on more frequent and sizable distributions to shareholders
in the last three years. The planned $125 million dividends this
time are larger than the prior ones—$60 million in August 2020
and $100 million in April 2021.
Pike's credit profile is constrained by its limited geographic and
end market diversity since it mostly provides engineering,
maintenance, repair, replacement and upgrade work for electric
utilities. It also incorporates its customer concentration,
moderate scale and the competitive nature of the utility and
telecommunications services sectors.
Pike's credit profile is supported by favorable industry
fundamentals as utilities continue to focus on replacing aging
infrastructure, modernizing and expanding the electricity grid and
outsourcing more engineering and construction services to third
parties. The company's master service agreements also support
relative revenue stability.
Pike's liquidity profile is supported by its available revolving
credit facility and free cash flows. The $236 million revolver had
$177 million availability as of September 26, 2021 and is subject
to a 5.8x springing senior secured leverage covenant, against which
Pike has ample cushion. The completion of a large transmission
contract is likely to consume working capital in 2022, but Pike's
sound earnings and low capital expenditure continue to support
future free cash flow generation.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
The ratings could be upgraded if the company increases its scale
and geographic diversity and strengthens its cash generating
ability as evidenced by FFO/debt increasing to more than 17.5%,
while maintaining good margins and a leverage ratio (debt/EBITDA)
below 4.0x. A downgrade could occur if deteriorating operating
results, debt-financed acquisitions or shareholder distributions
result in the company's leverage ratio being sustained above 5.5x,
or FFO/debt sustained below 12.5%. A weakening of its liquidity
profile could also result in downward pressure.
Headquartered in Mount Airy, North Carolina, Pike Corporation
provides installation, repair and maintenance and storm restoration
services for investor-owned, municipal, and cooperative electric
utilities and telecommunications companies in the United States.
The company provides engineering and design services and constructs
and maintains substations, underground and overhead distribution
networks and transmission lines. In December 2020, Lindsay Goldberg
acquired a 50.1% voting stake in Pike. Eric Pike maintains a
material minority equity stake in the company after this
transaction. Revenue for the twelve months ended September, 2021
was approximately $1.9 billion.
PIKE CORP: S&P Affirms 'CCC+' Rating on Senior Unsecured Notes
--------------------------------------------------------------
S&P Global Ratings affirmed its 'CCC+' issue-level rating on Pike
Corp.'s senior unsecured notes following the company's $225 million
upsizing of the facility (to $725 million). S&P's '6' recovery
rating is unchanged, indicating its xpectation for negligible
(0%-10%; rounded estimate: 0%) recovery in the event of a payment
default.
S&P said, "At the same time, we affirmed our 'B' issue-level rating
on Pike's outstanding $700 million term loan and $203 million
revolver. The '3' recovery rating is unchanged, indicating our
expectation that lenders would receive meaningful (50%-70%; rounded
estimate: 60%) recovery of principal in the event of a payment
default."
The company plans to use the proceeds from the upsizing to repay
the $100 million bridge loan it issued in December 2021 in
connection with its acquisition of Entregado Group (unrated). In
addition, Pike plans to use the remaining proceeds to pay a $125
million dividend to its shareholders.
S&P said, "Our 'B' issuer credit rating and stable outlook on Pike
reflect our expectation for continued organic growth, supported by
its backlog of projects, and healthy sustained margins such that
its debt to EBITDA (pro forma for the transaction) remains 5x or
below in 2022, although we estimate its free operating cash flow to
debt will be about 5% for the year due to working capital swings."
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- S&P's simulated default scenario assumes a payment default
occurring in 2025 stemming from broader macroeconomic weakness,
which leads to a slowdown in outsourcing and reduced or postponed
maintenance spending by Pike's utility customers.
-- This could be further exacerbated if it is unable to attract
and/or retain a skilled labor force, particularly in the event of a
severe storm when there is an immediate need to mobilize employees
for a timely response.
-- This could cause Pike to lose key contracts and customers,
which would reduce its revenue and margins. This would impair the
company's cash flow generation, erode its liquidity,
and--eventually--lead to a payment default.
-- S&P values the company based on a 5x EBITDA multiple to arrive
at a total enterprise value. This multiple is in line with the
multiples it uses for its engineering and construction peers.
-- Other key default assumptions include the company's revolving
credit facility is 85% drawn at the point of default.
Simulated default assumptions
-- Simulated year of default: 2025
-- EBITDA at emergence: $121 million
-- EBITDA multiple: 5x
Simplified waterfall
-- Net enterprise value at default (after 5% administrative
costs): $573 million
-- Secured first-lien debt claims: $882 million
--First-lien recovery expectations: 50%-70% (rounded estimate:
60%)
-- Value available to unsecured claims: $0 million
-- Total unsecured claims: $1.07 billion
--Unsecured recovery expectations: 0%-10% (rounded estimate:
0%)
Note: All debt amounts include six months of prepetition interest.
Collateral value equals the asset pledge from obligors after
priority claims plus the equity pledge from nonobligors after
nonobligor debt.
PLACE FOR VETERANS: Taps Lefkovitz & Lefkovitz as Legal Counsel
---------------------------------------------------------------
A Place for Veterans LLC seeks approval from the U.S. Bankruptcy
Court for the Middle District of Tennessee to employ Lefkovitz &
Lefkovitz, PLLC as its legal counsel.
Lefkovitz & Lefkovitz will render these legal services:
(a) advise the Debtor regarding its rights, duties, and
powers;
(b) prepare legal papers;
(c) represent the Debtor at all hearings, meetings of
creditors, conferences, trials, and any other proceedings in this
Chapter 11 case; and
(d) perform such other legal services as may be necessary in
connection with this case.
The hourly rates of the firm's counsel and staff range as follows:
Steven L. Lefkovitz $525
Associate Attorneys $350
Paralegals $125
In addition, the firm will seek reimbursement for expenses
incurred.
Steven Lefkovitz, Esq., an attorney at Lefkovitz & Lefkovitz,
disclosed in a court filing that the firm is a "disinterested
person" as defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Steven L. Lefkovitz, Esq.
Lefkovitz & Lefkovitz, PLLC
618 Church Street, Suite 410
Nashville, TN 37219
Telephone: (615) 256-8300
Facsimile: (615) 255-4516
Email: slefkovitz@lefkovitz.com
About A Place for Veterans
A Place for Veterans, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. M.D. Tenn. Case No. 21-03833) on Dec. 17,
2021. Steven L. Lefkovitz, Esq., at Lefkovitz & Lefkovitz, PLLC
represents the Debtor as legal counsel.
PPI LLC: Plan & Disclosures Due March 15, 2022
----------------------------------------------
Judge Lisa S. Grethko set these deadlines and hearing dates are
established for PPI, LLC:
* For creditors who are required by law to file claims, the
deadline is April 4, 2022, except that for governmental units the
deadline to file claims is 180 days from the date the petition was
filed.
* The deadline for the debtor to file motions is February 15,
2022.
* The deadline for parties to request the debtor to include any
information in the disclosure statement is Feb. 15, 2022.
* The deadline for the Debtor to file a combined plan and
disclosure statement is March 15, 2022.
* The deadline to return ballots on the Plan, as well as to file
objections to final approval of the disclosure statement and
objections to confirmation of the plan, is May 17, 2022. The
completed ballot form shall be returned by mail to the debtor’s
attorney: Max J. Newman, Butzel Long, Stoneridge West, 41000
Woodward Avenue, Bloomfield Hills, MI 48304.
* The hearing on objections to final approval of the disclosure
statement and confirmation of the plan shall be held on May 25,
2022 at 1:00 p.m., before the Honorable Lisa S. Gretchko, in
Courtroom 1975, 211 West Fort Street, Detroit, Michigan 48226.
* The deadline for all professionals to file final fee
applications is 30 days after the confirmation order is entered.
* The deadline to file a motion to extend the deadline to file a
plan is February 15, 2022.
* The deadline to file a motion to temporarily allow a claim or
interest for the purpose of accepting or rejecting the plan
pursuant to Fed. R. Bankr. P. 3018(a) is April 25, 2022.
The Debtor shall begin to negotiate the terms of a plan of
reorganization and a disclosure statement as soon as practicable.
If the debtor fails to meet the deadline to file a plan and
disclosure statement, the case may be dismissed or converted to
chapter 7 pursuant to 11 U.S.C. section 1112(b)(4)(J).
About PPI, LLC
PPI, LLC, doing business as PPI Aerospace, is a large Nadcap
accredited chemical process and surface engineering facility
focused on serving the specific needs of suppliers to the Aerospace
and Defense industries. The company is based in Warren, Mich.
PPI, LLC, filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. E.D. Mich. Case No. 21-49385) on
Dec. 2, 2021, listing up to $1 million in assets and up to $10
million in liabilities. Scott W. Thams, chief financial officer
and manager, signed the petition.
Judge Lisa S. Gretchko oversees the case.
Max J. Newman, Esq., at Butzel Long, a Professional Corporation,
represents the Debtor as legal counsel.
PREFERRED READY: Unsecureds Will Get 50% of Claims in 60 Months
---------------------------------------------------------------
Preferred Ready Mix, LLC, filed with the U.S. Bankruptcy Court for
the Southern District of Texas a Plan of Reorganization under
Subchapter V dated Jan. 4, 2022.
The Debtor is in the business of providing concrete delivery
services for commercial and residential concrete providers. The
Debtor's business was formed on March 19, 2019 as an LLC with 3
members: Robert Foran, Lincoln Catchings, III, and Matthew Tyson,
each having a 1/3 ownership interest.
The Debtor filed this Bankruptcy Case due to a receivership which
had resulted in the seizure of the Debtor's equipment and trucks
and put the Debtor out of business. The receivership relates to a
judgment taken against the Debtor which the Debtor is still
disputing.
The Plan will treat claims as follows:
* Class 1 Claims: Allowed Secured Claims of BankDirect Capital
Finance and Wayne C. Tyson in the amount of $56,856.14. All Class 1
Claims shall be paid in full in 60 equal monthly installments of
principal plus interest at the rate of 5% per annum. The payments
shall begin on the first day of the first month following the
Effective Date and continue on the first day of each subsequent
month until the Claim is paid in full under the Plan.
* Class 2 Claim: Allowed Secured Claims of FundThrough USA,
Inc is estimated to be $8,963.54. Class 2 Claims shall be paid in
full in 60 equal monthly installments of principal plus interest at
the rate of 5% per annum. The payments shall begin on the first day
of the first month following the Effective Date and continue on the
first day of each subsequent month until the Claim is paid in full
under the Plan.
* Class 3 Claims: Allowed General Unsecured Claims, excluding
Insiders are estimated to be $902,376.29. Each of the Class 3
Claimants shall be paid a total of 50% of the amount of their
Allowed Claims in equal monthly installments over 60 months. The
payments shall begin on the first day of the first month following
the Effective Date and continue for the next 59 months. These
Claims are impaired.
* Class 4 Claims: Allowed Unsecured Claims of Insiders. The
Allowed Unsecured Claims of Insiders, if any, shall not be paid
under this Plan. These claims are impaired.
* Class 5 Interests: Allowed Equity Interest Holders. All
Equity Interests shall be retained. These Interests are not
Impaired.
The Debtor intends to make all payments required under the Plan
from available cash and income from the business operations of the
Debtor.
A full-text copy of the Plan of Reorganization dated Jan. 4, 2022,
is available at https://bit.ly/331OTBo from PacerMonitor.com at no
charge.
Attorneys for Debtor:
Joyce W. Lindauer, Esq.
Joyce W. Lindauer Attorney, PLLC
1412 Main Street, Suite 500
Dallas, TX 75202
Tel: (972) 503-4033
Fax: (972) 503-4034
Email: Joyce@joycelindauer.com
About Preferred Ready-Mix
Preferred Ready-Mix, LLC, filed a petition for Chapter 11
protection (Bankr. S.D. Tex. Case No. 21-33369) on Oct. 14, 2021,
listing as much as $1 million in both assets and liabilities.
Lincoln M. Catchings, III, vice president, signed the petition.
Judge Jeffrey P. Norman oversees the case.
The Debtor tapped Joyce W. Lindauer Attorney, PLLC, as legal
counsel.
RESTORNATIONS: Says Helvey Loans Status 'Illegal'
-------------------------------------------------
Debtor Restornations submitted a reply to Harlan Helvey's objection
to the Debtor's Chapter 11 Small Business Disclosure Statement.
In response to the objection of the U.S. Trustee, the Debtor has
agreed to amend its disclosure statement to address the issues
raised in the objection. In addition, due to the fact that there
are objections to each of the 3 proof of claim filed by Harlan
Helvey a fully complete and accurate disclosure statement cannot be
prepared until such time as each of the debtor's objection to
Helvey's proof of claim are fully resolved and the court has ruled
on each of them.
Status of Helvey Loans
According to the Debtor, pursuant to California Finance Code
Section 22000et seq. the loans made by Helvey to Debtor require
that the lender i.e. Helvey, be properly licensed by State
California. In this matter Helvey and his prior corporation, Lot12
Alma Real Corporation, were never licensed as commercial loan
brokers. As a result, the principal of each of these loans is
collectible but there is a spectrum of decisions by various courts
as to how any interest, late charges, collection expenses, etc.,
are to be treated since they are not enforceable, only the
principal is enforceable.
In light of the illegal status of these loans due to Helvey and Lot
12 being unlicensed requires the court's ruling on Debtor pending
objections to Helvey's 3 proofs of claim in order for the Debtor to
prepare a full and accurate disclosure statement and proposed a
Chapter 11 Plan.
Attorney for Debtor Restornations:
Micheal E. Plotkin
80 South Lake Avenue, Suite 702
Pasadena, California
Tel: (626) 568-8088
Fax: (626) 568-8102
About Restornations
Restornations sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. C.D. Cal. Case No. 21-10500) on March 24, 2021. At
the time of the filing, the Debtor disclosed total assets of up to
$10 million and liabilities of up to $500,000. Judge Victoria.
Kaufman oversees the case. Michael E. Plotkin, Esq., is the
Debtor's legal counsel.
RIVERFRONT CRUISE: US Trustee Says Amended Plan Inaccurate
----------------------------------------------------------
Mary Ida Townson, United States Trustee for Region 21, objects to
confirmation of the proposed plan of reorganization of debtor
Riverfront Cruise and Anticipation Yacht Charters, LLC.
In support of this UST Objection, the United States Trustee states
as follows:
* The 2nd Amended Plan does not include accurate projections
of financial information over the life of the plan payments, so
that creditors may assess the viability of the 2nd Amended Plan and
of the Debtor. The exhibit attached to the 2nd Amended Plan does
not include any projections for the restaurant operations in which
the Debtor seeks to retain a 20% interest.
* The 2nd Amended Plan does not commit all of the Debtor’s
disposable income because it fails to provide for any revenue
derived from the 20% interest in the restaurant.
* The 2nd Amended Plan fails to discuss how the Debtor intends
to generate the revenue for the yacht chartering portion of the
business given that the two main vessels The Star of New York and
Riverfront Cruises 1, utilized in that enterprise, have been
surrendered. Nor do the projections accurately detail which vessels
will generate the revenue contemplated by the projections. The
Debtor has not shown that the remaining 2 smaller vessels can
generate the amount of revenue historically generated by the
surrendered vessels.
* It is not until December 29th, 2021, that the Debtor filed
the 2nd Amended Plan proposing a nominal 1% distribution to
unsecured creditors. The proposed 1% distribution, while the
Debtor's principal retains a 100% ownership of the Debtor and a 20%
interest in future restaurant operations is clearly not fair and
equitable. As such it is not surprising that the unsecured creditor
participation in this case has been nonexistent.
* The assignment or sale attempted by the Debtor further lacks
transparency. The Debtor has not filed a motion seeking to assign
the lease with the City of Fort Lauderdale or sell its interest in
the restaurant. The Debtor's attempt to assign the lease and
transfer the majority interest in the restaurant without filing
motion, without providing appropriate notice to all parties and
without a hearing and court order is improper. The mere act of
filing the agreement as a Notice of Filing is insufficient.
* The 2nd Amended Plan in conjunction with the Notice of
Filing are attempting the sale of the Debtors interest in the lease
and restaurant without presenting the agreement to the Court or
affording parties an opportunity to object and is therefore not
confirmable.
A full-text copy of the United States Trustee's objection dated
Jan. 04, 2022, is available at https://bit.ly/3rbPJDt from
PacerMonitor.com at no charge.
About Riverfront Cruise and
Anticipation Yacht Charters
Riverfront Cruise and Anticipation Yacht Charters, LLC filed its
voluntary petition for relief under Chapter 11 of the Bankruptcy
Code (Bankr. S.D. Fla. Case No. 21-17382) on July 29, 2021. James
Campbell, the Debtor's member, signed the petition. In the
petition, the Debtor listed as much as $50,000 in assets and as
much as $10 million in liabilities.
Judge Peter D. Russin presides over the case.
Richard R. Robles, Esq., at the Law Offices of Richard R. Robles,
P.A., represents the Debtor as legal counsel.
SELINSGROVE INSTITUTIONAL: Wood-Metal Hits Chapter 11 Bankruptcy
----------------------------------------------------------------
Marcia Moore of The Daily Item reports that Wood-Metal filed for
bankruptcy Friday, January 7, 2022, in an effort to save the
business and negotiations with lenders are underway on behalf of
William Penn Cabinetry and Stanley Woodworking, an attorney said
Friday, January 7, 2021.
"William Penn is closed and probably will not reopen. We're
hopeful Stanley Woodworking and Wood-Metal will survive," said
Robert Chernicoff, a Harrisburg attorney who specializes in Chapter
11 cases retained by business owners Maurice and Deb Brubaker.
Mr. Chernicoff said negotiations to determine options for the two
other companies -- including bankruptcy or asset liquidation -- are
continuing.
More than 100 employees have been impacted by the financial
struggles of the three companies owned by the Brubakers, married
tax specialists who live in Selinsgrove.
They launched William Penn Cabinetry, a start-up high-end cabinet
manufacturer in Freeburg in February 2020, and purchased Stanley
Woodworking, a 40-year-old Middleburg company, one month later just
as the global health pandemic struck.
In early 2021, the couple obtained a three-year, $500,000 CARES Act
loan and more than $370,000 in Paycheck Protection Program (PPP)
loans. Mr. Chernicoff, a former assistant attorney general with the
Commonwealth of Pennsylvania and assistant chief counsel for the
Pennsylvania Department of Labor and Industry, said the loans
should not prohibit a bankruptcy filing.
In October, production at William Penn shut down. Work has slowed
considerably at Stanley and only a handful of the 25 employees are
still working there.
Employees and others said problems began this summer when the
Brubakers began bouncing checks and failed to inform employees for
months that they had dropped benefits while continuing to deduct
contributions from their paychecks.
On Friday, January 7, 2022, Stanley Woodworking employee Wendi
Clark filed a civil claim in District Judge John Reed's Selinsgrove
office against the Brubakers to recoup $779.40 she said they
deducted for retirement and disability benefits that had been
dropped.
"They owe me that money and keep saying they'll pay it. I'm done
dealing with them," said Clark who, like several of Brubakers'
employees, had insurance, retirement and disability contributions
deducted for several months without informing them the benefits had
been dropped. "If they file bankruptcy, we don't get anything."
Despite defaulting in June on a payment to former Stanley
Woodworking owner R. Thomas Fitzgerald, the Brubakers purchased
Wood-Metal in Selinsgrove in August. The business was owned for
years by the late Robert Gronlund, who was at the helm of the
former Wood-Mode Inc. in Kreamer when that business abruptly shut
down after 77 years and put nearly 1,000 people out of work in May
2019.
Mr. Fitzgerald told The Daily Item last month that the Brubakers
owe him $1.7 million for Stanley Woodworking and he doesn't expect
the business will be able to survive losing "key" customers.
Meanwhile, the Brubakers face scrutiny from the state Attorney
General's Office which this week confirmed it had received
insurance fraud complaints. They've also been evicted from two of
their three Snyder County business locations.
Last December 2021, Dennis Van, owner of the Freeburg plant where
William Penn operated, obtained a judgment in district court
against the Brubakers, ordering them to pay $12,000 and vacate the
401 E. Front St. property. Van said the couple owed $78,000 and he
hadn't been paid rent since October 2021.
Bill French, a Middleburg businessman who owns the 100 E. Sherman
St., Selinsgrove property where Wood-Metal is located, obtained a
similar eviction judgment in Snyder County Court against the
Brubakers last December 2021. French said he is owed rent in excess
of $40,000.
Deb Brubaker is scheduled to appear Wednesday, January 7, 2022,
before a district judge in Middleburg on a misdemeanor charge of
passing a bad check. She's accused of paying a $700 propane bill to
Moyer’s Gas with a worthless check in October 2021.
About Wood-Metal Industries
Wood-Metal Industries -- is a manufacturer of cabinets and casework
for a variety of applications in education, healthcare and
institutional environments. It offers wide of products like custom
made wood, music and plastic laminate casework in various colours,
thereby enabling clients to choose and enhance the style that
complements their interior design schemes along with performance
and strength.
Selinsgrove Institutional Casework, LLC, doing business as Wood
Metal Industries, sought Chapter 11 protection (Bankr. M.D. Pa.
Case No. 22-bk-00021) on Jan. 7, 2022.
The Debtor's counsel:
Robert E Chernicoff
Cunningham And Chernicoff PC
Tel: (717) 238-6570
E-mail: rec@cclawpc.com
SHORE IMAGING: Feb. 10 Disclosure Statement Hearing Set
-------------------------------------------------------
Judge Kathryn C. Ferguson has entered an order within which Feb.
10, 2022 at 2:00 p.m. at Courtroom No. 2, Clarkson S. Fisher
Courthouse, 402 East State Street, Trenton, NJ 08608, is the
hearing on the adequacy of the Disclosure Statement of debtor Shore
Imaging PC.
In addition, written objections to the adequacy of the Disclosure
Statement shall be filed with the Clerk of the Court and served
upon counsel for the Debtor, Counsel for the Creditor's Committee
and upon the United States Trustee no later than 14 days prior to
the hearing before the Court, unless otherwise directed by the
Court.
A copy of the order dated Jan. 3, 2022, is available at
https://bit.ly/3zMDBws from PacerMonitor.com at no charge.
Attorney for the Debtor:
Eugene D. Roth, Esquire
Valley Park East
2520 Highway 35, Suite 307
Manasquan, New Jersey 08736
Tel: (732) 292-9288
About Shore Imaging
Shore Imaging PC offers a full range of diagnostic medical imaging
services and interventional biopsy procedures.
Shore Imaging PC filed a Chapter 11 bankruptcy petition (Bankr.
D.N.J. Case No. 21-16355) on Aug. 7, 2021. In the petition signed
by Harpreet Kaur, sole member/medical director, the Debtor
estimated assets of $500,000 to $1 million and debt of $1 million
to $10 million. GIORDANO, HALLERAN & CIESLA, P.C., led by Donald F.
Campbell, Jr., is the Debtor's counsel.
THE LOST CAJUN: Makes Comeback After Bankruptcy Exit
----------------------------------------------------
Mura Dominko of Eat This, Not That reports that the seafood chain,
The Lost Cajun, is making a comeback after bankruptcy. The
family-friendly brand just announced plans for growth.
According to the report, the beloved family-friendly seafood chain
The Lost Cajun is making a steady comeback after the pandemic
pushed it into bankruptcy and forced it to close several
locations.
The report recounts that in April 2021, the gumbo-and-seafood
concept ended up filing for Chapter 11 bankruptcy, reporting
liabilities of more than $1.4 million and assets of about $338,000.
While it operated two dozen locations across seven states, the
chain's franchisees were experiencing major losses and announcing
they may be forced to shutter their restaurants.
However, the chain has emerged from bankruptcy on December 7, 2021
and it's far from the end of the road for the regional darling and
its fans. The company said it netted out without any restaurant
losses during the pandemic. While it did permanently close three
locations in Texas and one in Colorado, it also managed to open
four locations across the two states and South Carolina.
And the chain has further growth in the works. Two more locations
are scheduled to open early this year—one in Rancho Cucamonga,
Calif., and one in downtown Florence, S.C.—which will bring the
chain's tally to 26 restaurants in total. Additionally, the company
has plans to continue growing with six to eight new locations a
year, according to a spokesperson.
The chain started as a family affair, founded by Raymond "Griff"
Griffin and wife Belinda in Colorado in 2010. The entrepreneurial
couple used 100-year-old recipes for gumbos, fried fish platters,
and po'boys to develop the chain's menu with a traditional Cajun
flair. The first franchisee was onboarded in 2015.
"I never could have imagined that what started out as a fun idea to
bring authentic Cajun food and culture to Colorado would grow into
such a well-loved brand," said Griffin. "Thankfully, through the
support of our corporate team, franchisees, and, most importantly,
our guests, we have been able to navigate successfully through
COVID-19. Today we are well poised for significant growth in 2022
and beyond."
About The Lost Cajun Enterprises
Frisco, Colo.-based The Lost Cajun Enterprises, LLC and The Lost
Cajun Spice Company, LLC filed Chapter 11 petitions (Bankr. D.
Colo. Lead Case No. 21-12072) on April 21, 2021. Raymond A.
Griffin, founder, signed the petitions.
At the time of the filing, Lost Cajun Enterprises disclosed between
$100,000 and $500,000 in assets and between $1 million and $10
million in liabilities. Lost Cajun Spice disclosed total assets of
up to $50,000 and total liabilities of up to $1 million as of the
petition date.
Judge Joseph G. Rosania Jr. oversees the cases.
Akerman LLP and Peak Franchise Capital serve as the Debtors' legal
counsel and financial advisor, respectively.
TONARCH 1 LLC: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Tonarch 1, LLC
2249 Duane Street
Los Angeles, CA 90039
Business Description: Tonarch is a Single Asset Real Estate as
defined in 11 U.S.C. Section 101(51B)).
Chapter 11 Petition Date: January 12, 2022
Court: United States Bankruptcy Court
Northern District of California
Case No.: 22-30017
Debtor's Counsel: Paul E. Manasian, Esq.
LAW OFFICE OF PAUL MANASIAN
1310 65th Street
Emeryville, CA 94608
Tel: (415) 730-3419
Email: manasian@mrlawsf.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Anne Kihagi, manager.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/3AVGHIY/TonarchLLC__canbke-22-30017__0001.0.pdf?mcid=tGE4TAMA
UNITED STRUCTURES: Case Summary & 6 Unsecured Creditors
-------------------------------------------------------
Debtor: United Structures of America, Inc.
3717 Sunset Blvd., Houston, TX 77005
Harris County
Business Description: United Structures of America Inc. is
engaged in manufacturing steel products.
Chapter 11 Petition Date: January 11, 2022
Court: United States Bankruptcy Court
Southern District of Texas
Case No.: 22-30104
Debtor's Counsel: Mark A. Platt, Esq.
FROST BROWN TODD LLC
2101 Cedar Springs Rd.
Suite 900
Dallas, TX 75201
Tel: (214) 580-5852
E-mail: mplatt@fbtlaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Dain R. Drake, president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's six unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/XPBJK2Q/United_Structures_of_America_Inc__txsbke-22-30104__0001.0.pdf?mcid=tGE4TAMA
VENUS CONCEPT: Reports Preliminary Revenue Results for Q4 2021
--------------------------------------------------------------
Venus Concept Inc. reported preliminary unaudited revenue results
for the three months ended Dec. 31, 2021.
Management Commentary:
"Fourth quarter revenue results reflect strong global demand from
customers and strong execution of our focused commercial strategy,"
said Domenic Serafino, chief executive officer of Venus Concept.
"We delivered revenue growth for this quarter of more than 30%
year-over-year in the United States and 20% revenue growth
year-over-year in international markets. Sales to international
customers increased 44% on a quarter-over-quarter basis, despite
continued global supply disruptions related to COVID-19 which
resulted in a backlog for customer purchase orders received of $1.1
million at quarter-end. Total systems and subscription revenue
increased approximately 36% year-over-year in the fourth quarter
fueled by continued strong adoption of Venus Bliss and a record
quarter for system adoption in our hair restoration business where
revenue increased more than 60% year-over-year in Q4."
Mr. Serafino continued: "While the operating environment continues
to be challenging, our confidence in the long-term outlook for
Venus Concept remains high. We expect to drive total Company
revenue growth of at least 20% in fiscal year 2022 fueled by strong
execution of our focused commercial strategy and material
contributions to growth from new product introductions –
particularly the Venus Bliss Max beginning in the second-half of
2022. We also expect to drive continued improvements in our
operating leverage, with the goal of generating positive cash flow
in the fourth quarter of 2022. We are very excited about the
prospects for our AIme device, our non-surgical robotic technology
platform, that we believe has the potential to disrupt initially
the skin tightening and directional lifting market, with plans to
add additional clinical applications in the years to come. The
clinical validation phase continues to progress; we expect to begin
enrollment in AIme's human clinical study later this month which,
depending on the pace of enrollment, has us on track to meet our
goal for study completion by the end of the third quarter of 2022,
and submission for FDA 510(k) clearance as soon as possible
thereafter."
Preliminary Fourth Quarter 2021 Revenue Summary:
* Preliminary total GAAP revenue for the three months ended Dec.
31, 2021 is expected to be in the range of $32.0 million to $33.0
million, compared to total GAAP revenue of $25.8 million for the
three months ended Dec. 31, 2020, representing an increase of 24%
to 28% year-over-year.
Preliminary Fiscal Year 2021 Revenue Summary:
* Preliminary total GAAP revenue for the twelve months ended
Dec. 31, 2021 is expected to be in the range of $105.0 million to
$106.0 million, compared to total GAAP revenue of $78.0 million for
the twelve months ended Dec. 31, 2020, representing an increase of
35% to 36% year-over-year.
About Venus Concept
Toronto, Ontario-based Venus Concept Inc. is an innovative global
medical technology company that develops, commercializes, and
delivers minimally invasive and non-invasive medical aesthetic and
hair restoration technologies and related practice enhancement
services. The Company's aesthetic systems have been designed on a
cost-effective, proprietary and flexible platform that enables the
Company to expand beyond the aesthetic industry's traditional
markets of dermatology and plastic surgery, and into
non-traditional markets, including family and general practitioners
and aesthetic medical spas.
Venus Concept reported a net loss of $82.82 million for the year
ended Dec. 31, 2020, compared to a net loss of $42.29 million for
the year ended Dec. 31, 2019. As of Sept. 30, 2021, the Company
had $138.15 million in total assets, $109.38 million in total
liabilities, and $28.77 million in total stockholders' equity.
Toronto, Canada-based MNP LLP issued a "going concern"
qualification in its report dated March 29, 2021, citing that the
Company has reported recurring net losses and negative cash flows
from operations that raises substantial doubt about its ability to
continue as a going concern.
WHISPER LAKE: Seeks Approval to Hire Tousley as Special Counsel
---------------------------------------------------------------
Whisper Lake Developments, Inc. seeks approval from the U.S.
Bankruptcy Court for the Western District of Washington to hire
Tousley Brain Stephens, PLLC as its special counsel.
The Debtor requires legal assistance in the pending action in
Whatcom County Superior Court styled Lillypad Developments, Inc. et
al., vs. Engelsman, et al. (Case No. 20-2-01314-37); and in another
case styled Thor, et al. v. Engelsman et al. (Case No.
21-2-00279-3).
The hourly rates charged by the firm for its services are as
follows:
Kim Stephens, Esq. $595 per hour
Rebecca Solomon $385 per hour
Clerks and Paralegals $150 to $350 per hour
Associates and Partners $270 to $925 per hour
Kim Stephens, Esq., a member of Tousley, disclosed in a court
filing that the firm does not have any interest adverse to that of
the estate or the Debtor in the matters upon which it is to be
engaged.
The firm can be reached through:
Kim D. Stephens, Esq.
Tousley Brain Stephens PLLC
1200 5th Ave Suite 1700
Seattle, WA 98101
Phone: +1 206-682-5600
Fax: (206) 682-2992
Email: kstephens@tousley.com
About Whisper Lake Developments
Whisper Lake Developments, Inc. is a Ferndale, Wash.-based company
engaged in activities related to real estate. It is the owner of
five real properties in Washington having a total current value of
$9.53 million.
Whisper Lake Developments sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Wash. Case No. 21-12060) on Nov. 10,
2021, disclosing $9,666,063 in assets and $5,562,777 in
liabilities. Judge Timothy W. Dore oversees the case.
Thomas A. Buford, Esq., at Bush Kornfield, LLP and Tousley Brain
Stephens, PLLC serve as the Debtor's bankruptcy counsel and special
counsel, respectively. Orse & Co. is the Debtor's restructuring
advisor.
[*] Overall December 2021 New Bankruptcy Filings Declined
---------------------------------------------------------
Epiq released its December 2021 bankruptcy filing statistics from
its Epiq Bankruptcy AACER Platform. Overall, December new filings
were 27,957 across all chapters, down 4.7% from November 2021 which
had 29,328 new filings. Total commercial filings across all
chapters were 1,650, up 4.8% over November 2021, which had 1,575
new filings.
Total new filings across all chapters for the full year 2021 were
401,398, down 24.2% over 2020, which had a total of 529,222. 2021
new filing metrics include a full year of impact from the COVID-19
global pandemic, while 2020 new filing metrics include pre-pandemic
filing activity.
Chapter 7 individual bankruptcies had 16,214 new filings in
December, down 6.8% over November 2021, which had 17,395 new
filings. For the full year, new Chapter 7 individual bankruptcy
filings were 265,948, down 24.7% over the full year 2020, which had
352,978 new filings. In 2021, the top five states with new Chapter
7 filings were California (30,917), Florida (21,329), Ohio
(15,956), Illinois (13,868), and Michigan (12,337).
Chapter 13 individual bankruptcies had 10,024 new filings, down
2.7% over November 2021, which had 10,306. This is the second month
where new Chapter 13 filings declined after the prior 6 months of
incremental increases month-over-month. For the full year, Chapter
13 filings were 112,197, down 21.4% over 2020 which had a total of
142,659 new filings. In 2021, the U.S. Southeast region continued
to lead new Chapter 13 filings with Georgia (10,556), Alabama
(8,725), Florida (7,948), and Tennessee (7,372) leading the way as
the states with the largest filing activity.
Chapter 11 commercial filings, including Sub Chapter V, had a total
of 309 new filings in December, a sharp increase of 56.1% over
November which had 198. Of these, 70 were Sub Chapter V, down from
76 the prior month. The full year 2021 had 3,596 new Chapter 11
filings, including Sub Chapter V, down 46.6% over the full year
2020 which had 6,726 new filings.
"December individual bankruptcy filing activity continued to trend
down as has been the pattern since the COVID-19 global pandemic
manifested in the U.S. in March 2020. Commercial filings spiked up
sharply month-over-month, but levels continue to be way off
pre-COVID-19 levels," said Chris Kruse, senior vice president of
Epiq Bankruptcy Technology.
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re Melanie Lynne Michaud
Bankr. E.D.N.Y. Case No. 22-70009
Chapter 11 Petition filed January 3, 2022
In re Aakilarose Inc.
Bankr. N.D. Cal. Case No. 22-50007
Chapter 11 Petition filed January 4, 2021
See
https://www.pacermonitor.com/view/O6YK6YQ/Aakilarose_Inc_and_David_Merritt__canbke-22-50007__0002.0.pdf?mcid=tGE4TAMA
represented by: John M. Hart, Esq.
ATTORNEY AT LAW
E-mail: thejohnhartfirm@gmail.com
In re Monica Monique Jeffers
Bankr. S.D. Tex. Case No. 22-30036
Chapter 11 Petition filed January 4, 2022
In re The Bronze Kingdom LLC
Bankr. M.D. Fla. Case No. 22-00040
Chapter 11 Petition filed January 5, 2022
See
https://www.pacermonitor.com/view/HTZKC4A/The_Bronze_Kingdom_LLC__flmbke-22-00040__0001.0.pdf?mcid=tGE4TAMA
represented by: Jeffrey S. Ainsworth, Esq.
BRANSONLAW, PLLC
E-mail: jeff@bransonlaw.com
In re 3310 West 1 Group LLC
Bankr. S.D. Fla. Case No. 22-10083
Chapter 11 Petition filed January 5, 2022
See
https://www.pacermonitor.com/view/OQ2PJGI/3310_WEST_1_GROUP_LLC__flsbke-22-10083__0001.0.pdf?mcid=tGE4TAMA
represented by: Joel Aresty, Esq.
JOEL M. ARESTY PA
E-mail: aresty@icloud.com
In re Molaoi Restaurant Corp.
Bankr. E.D.N.Y. Case No. 22-40017
Chapter 11 Petition filed January 5, 2022
See
https://www.pacermonitor.com/view/KYQ34EI/Molaoi_Restaurant_Corp__nyebke-22-40017__0001.0.pdf?mcid=tGE4TAMA
represented by: Ralph E. Preite, Esq.
KOUTSOUDAKIS & IAKOVOU LAW GROUP PLLC
E-mail: ralph@kilegal.com
In re Lawrence Dwight Moses, Sr. and Elizabeth Lucille Moses
Bankr. D.R.I. Case No. 22-10006
Chapter 11 Petition filed January 5, 2022
represented by: Pamela Ricciarelli, Esq.
In re CMA Holdings LLC
Bankr. N.D. Tex. Case No. 22-30031
Chapter 11 Petition filed January 5, 2022
See
https://www.pacermonitor.com/view/XS6OY6Y/CMA_Holdings_LLC__txnbke-22-30031__0001.0.pdf?mcid=tGE4TAMA
represented by: Brandon Tittle, Esq.
TITTLE LAW GROUP, PLLC
E-mail: btittle@tittlelawgroup.com
In re Shakeb Hasan Zuberi
Bankr. C.D. Cal. Case No. 22-10078
Chapter 11 Petition filed January 6, 2022
represented by: Onyinye Anyama, Esq.
In re Beachside Bingo, Inc.
Bankr. N.D. Fla. Case No. 22-30006
Chapter 11 Petition filed January 6, 2022
See
https://www.pacermonitor.com/view/I564ZOQ/Beachside_Bingo_Inc__flnbke-22-30006__0001.0.pdf?mcid=tGE4TAMA
represented by: Michael A. Wynn, Esq.
CHARLES WYNN LAW OFFICES, P.A.
E-mail: michael@wynnlaw-fl.com
In re Julio A. Garcia and Bonnie L. Garcia
Bankr. N.D. Ill. Case No. 22-00130
Chapter 11 Petition filed January 6, 2022
In re 3100 Winifred, LLC
Bankr. D. Md. Case No. 22-10052
Chapter 11 Petition filed January 6, 2022
See
https://www.pacermonitor.com/view/ZHVCWDI/3100_Winifred_LLC__mdbke-22-10052__0001.0.pdf?mcid=tGE4TAMA
represented by: Craig A. Butler, Esq.
THE BUTLER LAW GROUP, PLLC
E-mail: cbutler@blgnow.com
In re Quality Care Daycare @ BUP LLP
Bankr. D. Md. Case No. 22-10053
Chapter 11 Petition filed January 6, 2022
See
https://www.pacermonitor.com/view/TAAVUSA/Quality_Care_Daycare__BUP_LLP__mdbke-22-10053__0001.0.pdf?mcid=tGE4TAMA
represented by: TBD
In re J M Dunn Electric Inc.
Bankr. S.D. Tex. Case No. 22-30067
Chapter 11 Petition filed January 6, 2022
See
https://www.pacermonitor.com/view/YGSECRY/J_M_Dunn_Electric_Inc__txsbke-22-30067__0001.0.pdf?mcid=tGE4TAMA
represented by: Joan Kehlhof, Esq.
JOAN KEHLHOF, LLC
E-mail: jkehlhof@whkllp.com
In re Ahmad Mohammad Garib and Iman Ahmad Garib
Bankr. M.D. Fla. Case No. 22-00083
Chapter 11 Petition filed January 7, 2022
represented by: Jeffrey Ainsworth, Esq.
In re Jeffrey Lee Washington and Allison Sherrer Washington
Bankr. N.D. Fla. Case No. 22-30007
Chapter 11 Petition filed January 7, 2022
represented by: Edward Peterson, Esq.
In re Superior Septic, LLC
Bankr. N.D. Ga. Case No. 22-50200
Chapter 11 Petition filed January 7, 2022
See
https://www.pacermonitor.com/view/56MVAWY/Superior_Septic_LLC__ganbke-22-50200__0001.0.pdf?mcid=tGE4TAMA
represented by: Will Geer, Esq.
WIGGAM & GEER, LLC
E-mail: wgeer@wiggamgeer.com
In re Charlotte Equities LLC
Bankr. S.D.N.Y. Case No. 22-22007
Chapter 11 Petition filed January 7, 2022
See
https://www.pacermonitor.com/view/E57JFYI/Charlotte_Equities_LLC__nysbke-22-22007__0001.0.pdf?mcid=tGE4TAMA
represented by: Justin Walker, Esq.
In re GML Logistics, LLC
Bankr. W.D. Pa. Case No. 22-20037
Chapter 11 Petition filed January 7, 2022
See
https://www.pacermonitor.com/view/KN2VUEY/GML_Logistics_LLC__pawbke-22-20037__0001.0.pdf?mcid=tGE4TAMA
represented by: Rodney D. Shepherd, Esq.
LAW OFFICES OF RODNEY SHEPHERD
E-mail: rodsheph@cs.com
In re David Michael Peters
Bankr. S.D. Cal. Case No. 22-00036
Chapter 11 Petition filed January 10, 2022
represented by: Kit Gardner, Esq.
In re Joseph Robert Verna and Karen Elizabeth Verna
Bankr. M.D. Fla. Case No. 22-00021
Chapter 11 Petition filed January 10, 2022
represented by: Michael Dal Lago, Esq.
In re Stephen George Tibstra and Elizabeth Zveibil Tibstra
Bankr. M.D. Fla. Case No. 22-00103
Chapter 11 Petition filed January 10, 2022
represented by: Jeffrey Ainsworth, Esq.
In re South Florida Fund & Management LLC
Bankr. S.D. Fla. Case No. 22-10159
Chapter 11 Petition filed January 10, 2022
See
https://www.pacermonitor.com/view/YGCL6DY/South_Florida_Fund__Management__flsbke-22-10159__0001.0.pdf?mcid=tGE4TAMA
represented by: Jeanne Snipes, Esq.
In re KBK Enterprises of Roanoke, Inc.
Bankr. W.D. Va. Case No. 22-70008
Chapter 11 Petition filed January 10, 2022
See
https://www.pacermonitor.com/view/QHBSIKI/KBK_Enterprises_of_Roanoke_Inc__vawbke-22-70008__0001.0.pdf?mcid=tGE4TAMA
represented by: Andrew S. Goldstein, Esq.
MAGEE GOLDSTEIN LASKY & SAYERS, P.C.
E-mail: agoldstein@mglspc.com
In re Famous Anthony's Brookside, Inc.
Bankr. W.D. Va. Case No. 22-70009
Chapter 11 Petition filed January 10, 2022
See
https://www.pacermonitor.com/view/QSQNR6Q/Famous_Anthonys_Brookside_Inc__vawbke-22-70009__0001.0.pdf?mcid=tGE4TAMA
represented by: Andrew S. Goldstein, Esq.
MAGEE GOLDSTEIN LASKY & SAYERS, P.C.
E-mail: agoldstein@mglspc.com
In re Famous Anthony's Inc.
Bankr. W.D. Va. Case No. 22-70010
Chapter 11 Petition filed January 10, 2022
See
https://www.pacermonitor.com/view/IMUEGDA/Famous_Anthonys_Inc__vawbke-22-70010__0001.0.pdf?mcid=tGE4TAMA
represented by: Andrew S. Goldstein, Esq.
MAGEE GOLDSTEIN LASKY & SAYERS, P.C.
E-mail: agoldstein@mglspc.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
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Each Tuesday edition of the TCR contains a list of companies with
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liabilities delivered to nation's bankruptcy courts. The list
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then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
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*********
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