/raid1/www/Hosts/bankrupt/TCR_Public/220211.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Friday, February 11, 2022, Vol. 26, No. 41
Headlines
5171 CAMPBELLS: Bankr. Court to Hear Pre-Trial Issues in Suit
60 91ST STREET: District Court Denies Bid to Subpoena Transcripts
A.G. DILLARD: Seeks Cash Collateral Access
ABCK REALTY: Case Summary & One Unsecured Creditor
ACM DEVELOPMENT: Seeks to Employ Latham as Bankruptcy Counsel
AEMETIS INC: BlackRock Has 9% Equity Stake as of Dec. 31
AKOUSTIS TECHNOLOGIES: BlackRock Reports 5.7% Equity Stake
ALAMO BORDEN: Seeks to Extend Exclusivity Period to April 13
ALDRICH PUMP: Asks Court Okay for $1.25-Mil. Deal With Insurer
ALLIANCE OF AMERICAN: Court OKs Defunct League Players' Pay
ASK IMAGE: Seeks to Hire Frank Giarratano as Accountant
BITNILE HOLDINGS: Cavalry Fund, et al. Report 0% Equity Stake
BLINK CHARGING: BlackRock Has 5.9% Equity Stake as of Dec. 31
BLUE CHIP: Gets Cash Collateral Access on Final Basis
BOY SCOUTS: Key Abuse-Survivors Group Now Backs Plan
BOY SCOUTS: Key Players Attack Nondebtor Releases in Chapter 11
BOY SCOUTS: Krause & Kinsman et al. May Proceed with Appeal
CAMDEN DIOCESE: Abuse Victims Asks Court for Ch.11 Claims Valuation
CENTER CITY: Mediation in Broad Street Appeal Directed to Proceed
CHRYSLER LLC: Bankr. Court Won't Enforce Sale Order to Bar Claims
CINEMA SQUARE: Has Deal to Extend Cash Collateral Use
CRAVE BRANDS: Subchapter V Trustee Counsel Awarded $56,000 in Fees
DIOCESE OF BUFFALO: Negotiates to Settle Attorney General Lawsuit
EDGEWATER HOLDINGS: Taps Lydecker LLP as Bankruptcy Counsel
EHT US1 INC: Opening Brief in "Wu" Appeal Due March 14
EXPRESS GRAIN: Gets More Time to File Chapter 11 Plan
FABMETALS INC: Unsecureds Will Get 27.24% of Claims in Plan
FORESTAR GROUP: S&P Raises ICR to 'B+', Outlook Stable
FREIGHT-BASE SERVICES: Amends Unsecured Claims Pay Details
GLOBAL CARIBBEAN: Seeks More Time to Solicit Plan Votes
GOLDEN STATE: Receiver Ordered to Return Stations to Ed Stolz
GRUPO AEROMEXICO: Enters Into LOI to Assume Control of Club Premier
HERTZ CORP: Must Make Public Customer Theft Data
IQ FORMULATIONS: March 16 Disclosure Statement Hearing Set
JOYFUL CARE: United States Trustee Says Disclosures Inadequate
LANDMARK 99: Case Summary & Nine Unsecured Creditors
LANNETT INC: S&P Downgrades ICR to 'CCC+' on Weaker Outlook
LINDERIAN CO: Wins Interim Cash Collateral Access
LTL MANAGEMENT: Claimants Group Fights to Keep LTL in Bankruptcy
LTL MANAGEMENT: Exclusivity Period Extended to May 12
LTL MANAGEMENT: MDL Court Won't Tackle Talc Committee Motions
MALLINCKRODT PLC: Acthar Claimants May Proceed with Appeal
MALLINCKRODT PLC: Rockford May Proceed with Appeal from Injunction
MARINER SEAFOOD: Principal Has Personal Liability to Hellofresh
MEN'S WEARHOUSE: S&P Affirms 'CCC+' ICR, Outlook Negative
MESSIAH'S GLASS: Seeks Cash Collateral Access
MICH'S MACCS: Gets Court Approval to Employ Auction Advisors
MOTELS OF SUGAR: March 9 Disclosure Statement Hearing Set
MTE HOLDINGS: Chenault-Vaughn Must File Amended Appeals Notice
MY2011 GRAND: Amends Plan to Update the AYHL Settlement
NATIONAL TRANSPORTATION: Case Summary & 16 Unsecured Creditors
NOVABAY PHARMACEUTICALS: Hudson Bay, Sander Gerber Hold 9.9% Stake
O'HARE SHELL: Unsecureds Will Get 100% of Claims in Plan
OASIS MIDSTREAM: S&P Raises ICR to 'BB-' Then Withdraws Rating
PAINT THE WIND: U.S. Trustee Unable to Appoint Committee
PAPER BLAST: Unsecured Creditors to Recover 12% in 60 Months
PHE.NO LLC: Case Summary & Two Unsecured Creditors
PLUS THERAPEUTICS: Hudson Bay, Sander Gerber Report 3.46% Stake
PLUS THERAPEUTICS: Parkman Entities Report 7.4% Equity Stake
PREFERRED READY: Amends Plan to Address Wayne Tyson's Claim Issues
PRIME GROUP: Case Summary & Four Unsecured Creditors
PRINCESS PORT: Seeks Cash Collateral Access
PURDUE PHARMA: Bankruptcy Mediator Extends Talks to Feb.16
PURDUE PHARMA: NY Judge Okays Canadian Entities Late Ch.11 Appeal
QUALITY CARE DAYCARE: Taps William Johnson as Bankruptcy Counsel
ROSIE'S LLC: March 31 Disclosure Statement Hearing Set
SERVICE KING COLLISION: Starts Debt Restructuring Negotiations
SPIRIT AIRLINES: Fitch Affirms 'BB-' LT IDR, Outlook Stable
STANDARD INDUSTRIES: Fitch Rates LT IDR First-Time 'BB'
STAYSAVER VACATIONS: Seeks Use of Cash Collateral
STORTZ FARM: Case Summary & 20 Largest Unsecured Creditors
UNITED WAY OF SALEM: Seeks Chapter 11 Bankruptcy Protection
WA INC: Unsecured Creditors Will Get 60% of Claims in Plan
WATERLOO AFFORDABLE: Taps SVN Affordable as Real Estate Broker
WILLCO XII: FirstBank Agrees to Cash Collateral Use Thru April 30
WILMA & FRIEDA'S: Case Summary & 20 Largest Unsecured Creditors
[*] A&G Real Estate Bags Distressed M&A Deal of the Year Award
[] Maclay Testifies Before Senate Committee on Abusing Chapter 11
*********
5171 CAMPBELLS: Bankr. Court to Hear Pre-Trial Issues in Suit
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Presently pending in the case captioned ROBERT S. BERNSTEIN, as
Plan Administrator for the Creditors Trust Under the Debtor's
Confirmed Plan, Plaintiff, v. MEYER, UNCOVIC & SCOTT LLP, a
Pennsylvania Limited Liability General Partnership, and ROBERT E.
DAUER, JR., an individual, Defendants, Civil Action No. 1:21-cv-216
(W.D. Pa.), are:
-- a motion by Defendants Meyer, Unkovic & Scott LLP and
Robert E. Dauer, Jr., asking the United States District Court for
the Western District of Pennsylvania to immediately withdraw the
reference of the Adversary Proceeding No. 19-22715-CMB to the
United States Bankruptcy Court for the Western District of
Pennsylvania; and
-- a motion by Plaintiff, the Plan Administrator for the
Creditors Trust under 5171 Campbells Land Co., Inc.'s confirmed
plan, to withdraw reference of the Adversary Proceeding for
purposes of trial only.
On July 6, 2021, Bernstein, acting as the Plan Administrator, filed
the Adversary Proceeding against the Law Firm and Dauer, asserting
claims of professional negligence and legal malpractice. At issue
are the legal services and advice that Defendants rendered in
connection with the Debtor's efforts to acquire real estate and
franchise rights for the purpose of operating various Perkins
restaurants.
The gravamen of Plaintiff's complaint is that, by virtue of the
Defendants' negligent acts and/or omissions, the Debtors' rights
and financial interests were compromised, and its business failed
to operate in a profitable manner. Defendants have filed a motion
to dismiss in this Court, claiming that the complaint fails to
state a claim upon which relief can be granted.
District Judge Susan Paradise Baxter grants Plaintiff's motion and
denies Defendants' motion without prejudice. The Court is not
persuaded that withdrawing reference of the Adversary Proceeding is
warranted at this time.
As Plaintiff points out, the Bankruptcy Court presided over the
Debtor's bankruptcy proceedings for more than two years and has no
doubt acquired substantial familiarity with the Debtor, its
business, its assets, and its liabilities, which will likely be
helpful in adjudicating issues related to the Adversary Proceeding.
Notably, Perkins is a material creditor of Debtor's bankruptcy
estate, and the complaint in this matter largely concerns alleged
actions or omissions on Defendants' part relative to the Debtors'
business relationship and dealings with Perkins. In particular,
Defendants allegedly served as counsel for the Debtor in connection
with the Debtor's purchase of Perkins franchise rights and in
connection with the later termination of those same franchise
rights.
Nor is there any reason to believe that the Bankruptcy Court is
less capable of presiding over the Adversarial Proceeding because
of the inherent nature of its docket, Judge Baxter holds. Indeed,
it is well within the ken of bankruptcy courts to preside over
complex and protracted proceedings. Judge Baxter says the District
Court has every confidence that the Bankruptcy Court will preside
over the pretrial aspects of the Adversarial Proceeding in a
competent and efficient manner.
A full-text copy of the Memorandum Opinion dated January 28, 2022,
is available at https://tinyurl.com/yu7u2cn5 from Leagle.com.
About 5171 Campbells
Based in Rankin, Pennsylvania, 5171 Campbells Land Co., Inc. is a
privately held company that operates in the restaurant industry.
5171 Campbells filed a Chapter 11 petition (Bankr. W.D. Pa. Case
No. 19-22715) on July 8, 2019. The petition was signed by William
T. Kane, president. At the time of filing, the Debtor estimated $1
million to $10 million in assets and $10 million to $50 million in
liabilities.
The Debtor is represented by Robert O. Lampl, Esq., in Pittsburgh.
The U.S Trustee for Region 3 appointed a committee of unsecured
creditors on Aug. 1, 2019.
On March 18, 2020, the Court confirmed the Debtor's Chapter 11 Plan
of Liquidation Dated Nov. 12, 2020. Robert S. Bernstein, Esq. was
appointed as the Plan Administrator.
60 91ST STREET: District Court Denies Bid to Subpoena Transcripts
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In IN RE 60 91st STREET CORP., District Judge Andrew L. Carter,
Jr., of the United States District Court for the Southern District
of New York denies a pro se appellant's request that "the Courts
Subpoena all the actual Court Hearing Transcripts of the underlying
Bankruptcy Case 20-10338, the Adversary Proceedings initiated by
the Chapter 11 Trustee, as well as the initial State Action in,
where I was denied the opportunity to be heard."
As Judge Engelmayer explained in his decision dismissing a separate
appeal filed by Appellant concerning the same bankruptcy
proceeding, Appellant is responsible for obtaining and filing any
relevant transcripts from the underlying proceeding, pursuant to
Federal Rule of Bankruptcy Procedure 8009(b), Judge Carter notes.
Appellant was also informed that she can obtain such transcripts at
no cost. Appellant has not shown she has attempted to obtain the
requested bankruptcy transcripts, Judge Carter further notes.
Additionally, Appellant has not demonstrated the relevance of the
other transcripts and proceedings she references.
A full-text copy of the Order dated February 1, 2022, is available
at https://tinyurl.com/ymhu6sd2 from Leagle.com.
About 60 91st Street Corp.
60 91st Street Corp. owned the property at 60 West 91st St., New
York, New York, 10024.
To stop foreclosure, 60 91st Street Corp. sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No.
20-10338) on Feb. 4, 2020, listing under $1 million in both assets
and liabilities. The Debtor has tapped Tenille Lewis, Esq., as
its
bankruptcy attorney.
Heidi Sorvino is Debtor's Chapter 11 trustee. The Trustee is
represented by White and Williams LLP.
A.G. DILLARD: Seeks Cash Collateral Access
------------------------------------------
A.G. Dillard, Inc. asks the U.S. Bankruptcy Court for the Western
District of Virginia, Lynchburg Division, for authority to use cash
collateral and provide adequate protection.
The Debtor requires the use of its Cash Collateral in order to
operate its business, pay its employees, and effectively
reorganize.
In 2019, the Debtor was generating over $26 million in income. One
year later, in 2020, the Debtor increased its revenue to over $27
million, but due to multiple factors, including those related to
the COVID-19 pandemic, the cost to perform pre-Pandemic fixed
contracts increased by nearly $10 million, causing a net loss. The
financial strain has also caused sales revenue to drop because of
the Debtor's inability to meet credit terms imposed by vendors.
Though the Debtor has shed unnecessary equipment and expenses, and
sought to restructure its debt obligations independently, its cash
flow remains hindered by excessive payment obligations. In late
January 2021, 1st Source Bank declared default against the Debtor
and demanded turnover of its collateral, which would effectively
cease the Debtor's business operation.
To the best of the Debtor's knowledge, Blue Ridge Bank, NA is the
only secured creditor with a lien on the Debtor's accounts.
Pursuant to a security agreement dated March 12, 2018 in the
original principal amount of $1,000,000 -- increased pursuant to a
promissory note to $4,000,000 on December 18, 2019 -- BRB has a
blanket lien on "all assets" of the Debtor, including all Debtor's
accounts.
In addition, pursuant to a promissory note in the amount of
$5,000,000 dated September 25, 2020, solely for the purpose of
refinancing BRB debt and at a cost of over $160,000 to the Debtor,
BRB has a blanket lien on the Debtor's tangible and intangible
property as well as a specific lien on the Debtor's cash
collateral. UCC-1 Financing Statements have been filed evidencing
the BRB Obligations.
As adequate protection for the use of cash collateral, the Debtor
proposes to provide post-Petition Date liens to BRB upon all assets
of the same type as BRB's Cash Collateral, which are or have been
acquired, generated, or received by the Debtor after the Petition
Date. The replacement liens will be perfected, enforceable, choate,
and effective without the necessity of BRB taking any other action,
including the filing of any additional security documents with
respect thereto. The Debtor proposes that the replacement lien will
be granted only to secure an amount equal to the actual amount of
Cash Collateral used by the Debtor.
A copy of the order and the Debtor's budget for the period from
February 11 to March 8, 2022 is available for free at
https://bit.ly/3GFsQxS from PacerMonitor.com.
The budget provides for total operating expenses, on a weekly
basis, as follows:
$118,746 for the week ending February 11, 2022;
$82,246 for the week ending February 18, 2022;
$82,246 for the week ending February 25, 2022;
$143,746 for the week ending March 4, 2022; and
$44,746 for the week ending March 8, 2022.
About A.G. Dillard, Inc.
A.G. Dillard, Inc. is an excavating contractor in Troy, Virginia.
It provides a wide variety of site construction services, including
site remodeling, clearing and demolition, pond repair/conversion,
excavating and grading, site concrete, and paving.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Va. Case No. 22-60115) on February 9,
2022. In the petition signed by Alan G. Dillard, III, president,
the Debtor disclosed up to $50 million in both assets and
liabilities.
Robert S. Westermann, Esq. at Hirschler Fleischer, PC is the
Debtor's counsel.
ABCK REALTY: Case Summary & One Unsecured Creditor
--------------------------------------------------
Debtor: ABCK Realty Management, LLC
3 Liska Way #101
Palm Tree, NY 10950
Business Description: ABCK Realty Management is a Single Asset
Real Estate debtor (as defined in 11 U.S.C.
Section 101(51B)). The Debtor owns in
fee simple title a mixed residential and
storefront property located at 5516 16th
Avenue, Brooklyn, NY having a current
value of $718,000.
Chapter 11 Petition Date: February 10, 2022
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 22-35063
Debtor's Counsel: Charles Higgs, Esq.
THE LAW OFFICE OF CHARLES A. HIGGS
44 South Broadway, Suite 100
White Plains, NY 10601
Tel: (917) 673-3768
Email: charles@freshstartesq.com
Total Assets: $721,000
Total Liabilities: $10,088,009
The petition was signed by Ahron Berlin as president.
The Debtor listed Joel Kohn and Yisocher Kaufman, as co-trustees,
as its sole unsecured creditor holding a claim of $10 million.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/F5DPWKY/ABCK_Realty_Management_LLC__nysbke-22-35063__0001.0.pdf?mcid=tGE4TAMA
ACM DEVELOPMENT: Seeks to Employ Latham as Bankruptcy Counsel
-------------------------------------------------------------
ACM Development, LLC seeks approval from the U.S. Bankruptcy Court
for the Middle District of Florida to hire Latham, Luna, Eden &
Beaudine, LLP to serve as legal counsel in its Chapter 11 case.
The firm's services include:
(a) advising as to the Debtor's rights and duties in the
case;
(b) preparing pleadings related to the case, including a
disclosure statement and plan of reorganization; and
(c) taking all other necessary actions incident to the proper
preservation and administration of the estate.
The firm's hourly rates are as follows:
Justin Luna, Esq. $475 per hour
Daniel Velasquez, Esq. $350 per hour
Prior to the commencement of the case, the Debtor paid an advance
fee of $60,000 and another $25,000 from Ironshield Paving, LLC for
pre-bankruptcy services and expenses.
Justin Luna, Esq., the firm's attorney who will be providing the
services, disclosed in a court filing that he is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Justin Luna, Esq.
Latham, Luna, Eden & Beaudine, LLP
201 S. Orange Ave., Suite 1400
Orlando, FL 32801
Tel: 407-481-5800
Fax: 407-481-5801
Email: jluna@lathamluna.com
About ACM Development
ACM Development, LLC provides excavation services and is based in
Ocoee, Fla.
ACM Development filed a petition for Chapter 11 protection (Bankr.
M.D. Fla. Case No. 22-00210) on Jan. 20, 2022, listing up to $10
million in assets and up to $50 million in liabilities. Eric R.
Mynhier, manager, signed the petition.
The Debtor tapped Latham, Luna, Eden & Beaudine, LLP as legal
counsel.
AEMETIS INC: BlackRock Has 9% Equity Stake as of Dec. 31
--------------------------------------------------------
BlackRock, Inc. disclosed in a Schedule 13G filed with the
Securities and Exchange Commission that as of Dec. 31, 2021, it
beneficially owns 2,986,931 shares of common stock of Aemetis,
Inc., representing 9 percent of the shares outstanding. A
full-text copy of the regulatory filing is available for free at:
https://www.sec.gov/Archives/edgar/data/738214/000083423722007293/us00770k2024_020422.txt
About Aemetis
Headquartered in Cupertino, California, Aemetis --
http://www.aemetis.com-- is an international renewable natural
gas, renewable fuels and byproducts company focused on the
acquisition, development and commercialization of innovative
technologies that replace traditional petroleum-based products.
The Company operates in two reportable geographic segments: "North
America" and "India."
Aemetis reported a net loss of $36.66 million for the year ended
Dec. 31, 2020, compared to a net loss of $39.48 million for the
year ended Dec. 31, 2019. As of Sept. 30, 2021, the Company had
$146.98 million in total assets, $74.61 million in total current
liabilities, $204.47 million in total long-term liabilities, and a
total stockholders' deficit of $132.09 million.
AKOUSTIS TECHNOLOGIES: BlackRock Reports 5.7% Equity Stake
----------------------------------------------------------
In a Schedule 13G filed with the Securities and Exchange
Commission, BlackRock, Inc. disclosed that as of Dec. 31, 2021, it
beneficially owns 2,965,937 shares of common stock Akoustis
Technologies Inc., representing 5.7 percent of the shares
outstanding. A full-text copy of the regulatory filing is
available for free at:
https://www.sec.gov/Archives/edgar/data/1584754/000083423722007330/us00973n1028_020422.txt
About Akoustis Technologies
Headquartered in Huntersville, NC, Akoustis is focused on
developing, designing, and manufacturing innovative RF filter
products for the mobile wireless device industry, including for
products such as smartphones and tablets, cellular infrastructure
equipment, and WiFi premise equipment.
Akoustis reported a net loss of $44.16 million for the year ended
June 30, 2021, a net loss of $36.14 million for the year ended June
30, 2020, and a net loss of $29.25 million for the year ended June
30, 2019. As of Dec. 31, 2021, the Company had $134.11 million in
total assets, $10.44 million in total liabilities, and $123.67
million in total equity.
ALAMO BORDEN: Seeks to Extend Exclusivity Period to April 13
------------------------------------------------------------
Alamo Borden County 1, LLC asked the U.S. Bankruptcy Court for the
Northern District of Texas to extend the exclusivity period to file
a Chapter 11 plan to April 13 and the period to solicit acceptances
for the plan to June 12.
The exclusivity period refers to the 120-day period during which
only the company can file a plan after a bankruptcy petition.
The extension, if granted by the court, will give Alamo more time
to resolve the adversary case (Adversary Proceeding No. 21-04068)
the company filed in October last year regarding ownership and
title to some of its assets. The case involves multiple parties
and remains pending before the court.
Alamo said it intends to file a proposed Chapter 11 plan either
this month or in March.
About Alamo Borden County 1 LLC
Alamo Borden County 1, LLC is part of the oil and gas extraction
industry. The company is based in Arlington, Texas.
Alamo Borden County 1 filed its voluntary petition for Chapter 11
protection (Bankr. N.D. Texas Case No. 21-42440) on Oct. 15, 2021,
listing as much as $10 million in both assets and liabilities.
Judge Mark X. Mullin oversees the case.
Joshua N. Eppich, Esq., at Bonds Ellis Eppich Schafer Jones, LLP
represents the Debtor as legal counsel.
ALDRICH PUMP: Asks Court Okay for $1.25-Mil. Deal With Insurer
--------------------------------------------------------------
Rick Archer of Law360 reports that Aldrich Pump is asking a North
Carolina bankruptcy judge to approve a $1.25 million deal to settle
claims over asbestos liability indemnification with another former
Ingersoll-Rand affiliate and defunct Home Insurance Co. Aldrich
told a bankruptcy judge that it has reached a $1.25 million deal to
settle claims over asbestos liability indemnification.
In a motion filed Monday, February 7, 2022, Aldrich said it had
reached a deal under which Home Insurance's liquidator will allow
the claim in Home's liquidation proceedings, and Aldrich will split
any proceeds of the claim with Clark Equipment Co. to wrap up the
duty to indemnify Clark.
About Aldrich Pump
Aldrich Pump LLC and Murray Boiler LLC are U.S. subsidiaries of
Trane Technologies, a publicly traded company. Ireland's Trane
Technologies, formerly as Ingersoll Rand plc, is a global climate
innovator that brings efficient and sustainable climate solutions
to buildings, homes, and transportation. The North American
headquarters of Trane Technologies are located in Davidson, North
Carolina.
Aldrich Pump and Murray Boiler sought Chapter 11 protection (Bankr.
W.D.N.C. Lead Case No. 20-30608) on June 18, 2020. The Hon. Craig
J. Whitley oversees the cases.
In the petition signed by Allan Tananbaum, chief legal officer, the
Debtor was estimated to have $100 million to $500 million in both
assets and liabilities.
The Debtors tapped Rayburn Cooper & Durham, P.A. and Jones Day as
legal counsel; Bates White, LLC, Evert Weathersby Houff, and K&L
Gates, LLP as special counsel; AlixPartners, LLP as financial
advisor; and Kurtzman Carson Consultants, LLC as claims and
noticing agent.
The Office of the U.S. Trustee appointed a committee of asbestos
personal injury claimants. The asbestos committee tapped Robinson
& Cole, LLP and Caplin & Drysdale, Chartered as its bankruptcy
counsel. The committee also selected FTI as its financial advisor
and Legal Analysis Systems, Inc. as its asbestos consultant.
On Oct. 14, 2020, the Court entered the order appointing Joseph W.
Grier, III, as legal representative for future asbestos claimants
(FCR). He tapped Orrick, Herrington & Sutcliffe LLP and Grier
Wright Martinez, PA as counsel; Anderson Kill P.C., as special
insurance counsel; and Ankura Consulting Group, LLC as asbestos
claims consultant and financial advisor.
ALLIANCE OF AMERICAN: Court OKs Defunct League Players' Pay
-----------------------------------------------------------
Patrick Danner of San Antonio Express News reports that a San
Antonio bankruptcy judge has approved a settlement providing for
payment for a defunct football league's players.
As many as 480 former players of the Alliance of American Football
league stand to receive unpaid wages as part of a bankruptcy
settlement approved by a judge Tuesday, Feb. 8, 2022. The league
folded after eight games in 2019.
The players each stand to receive $13,650 -- before attorneys' fees
-- in pay covering the final two games of the league's only season.
The league suspended operations in 2019 and filed for bankruptcy
before completing the season.
They also will each receive a $180,000 unsecured claim for wages
they would have been paid during the final two years of their
three-year contracts. That claim, however, is subject to the
bankruptcy estate first paying other creditors' claims.
"Notably, there were no objections or opt-outs (from the
settlement), which is remarkable in a case of this size," Chief
U.S. Bankruptcy Judge Craig Gargotta said in approving the
settlement.
Two players had sued the league and others for fraud, breach of
contract and other claims related to the league’s collapse. The
suit became part of the AAF's bankruptcy proceedings in San
Antonio.
San Antonio was among the cities to field a team in the AAF. It was
known as the Commanders.
The class-action lawsuit was brought by two players, linebacker
Reggie Northrup and punter Colton Schmidt, who played for the
Orlando Apollos and Birmingham Iron. respectively. They will each
receive an unsecured claim of $135,000 that is not subordinate to
other creditors. It's not immediately clear how much of that they
will actually receive, however.
Jonathon Farahi, a California lawyer representing the players, said
many of them were concerned about being "blackballed" if they
brought litigation against the league.
"It took a lot of guts...or Mr. Northrup and Mr. Schmidt to put
their name on this lawsuit," Farahi told the judge. "They really
stood up for the rest of these guys. In speaking to the rest of the
class, I know how grateful they are to these two individuals."
The priority wage claim totals about $6.5 million, assuming all 480
players submit claims. Their attorneys will get a third of that
amount.
The settlement was reached with the league, the trustee overseeing
the bankruptcy and AAF founder and CEO Charlie Ebersol.
The players alleged in a Thursday court filing that they were
"seduced and abandoned, induced to put their bodies on the line and
forego other other opportunities to play for the AAF." They also
said they were not told the league was failing financially.
In their complaint, the players alleged the AAF was intended as a
technology business rather than a sports league. It was developing
gambling technology intended to allow viewers to bet on each play
during a game using their mobile devices. The players said they
were used as "lab rats" to test the technology.
MGM Resorts International, which invested $7 million to finance
development of the technology, ended up with it under a 2019 sale
approved by the judge.
The players still have claims against Thomas Dundon, the AAF's
majority owner who reportedly agreed to invest $250 million in the
league. He is the majority owner of the National Hockey League’s
Carolina Panthers.
Dundon, who holds $70 million in claims in the AAF's bankruptcy,
previously objected to the settlement agreement. But his lawyers
didn't raise any objections at Tuesday's, February 8, 2022,
hearing.
Dundon had alleged the bankruptcy trustee, who is involved in the
settlement, is paying for "what appears to be" Ebersol's
"cooperation and future testimony as a witness in future litigation
against third parties to this settlement" -- including Dundon -- in
exchange for the release of claims against Ebersol.
Gargotta asked the attorney to report back to him within 30 days to
update him on where the litigation against Dundon stands.
About Alliance of American Football
Founded by Charlie Ebersol and Bill Polian, Alliance of American
Football is a professional American football league. It is composed
of eight centrally owned and operated teams from the southern and
western United States.
Legendary Field Exhibitions, LLC and affiliates, including Ebersol
Sports Medial Group Inc. and AAF Properties, LLC, each filed a
Chapter 7 bankruptcy petition (Bankr. W.D. Tex. Lead Case No.
19-50900) on April 17, 2019. In its petition, AAF estimated assets
of $11.3 million and liabilities of $48.3 million.
The Debtors' counsel:
William A. (Trey) Wood, III
Bracewell LLP
Tel: 713-223-2300
E-mail: trey.wood@bracewelllaw.com
The Chapter 7 Trustee:
Randolph N Osherow
342 W Woodlawn, Suite 100
San Antonio, TX 78212
The Chapter 7 Trustee's counsel:
Abbey U. Dreher
Barrett Daffin Frappier Turner & Engel
Tel: 972-386-5040
E-mail: wdecf@bdfgroup.com
Randolph N Osherow
210-738-3001
Thomas Andrew Woolley, III
McCloskey Roberson, PLLC
Tel: 713-868-5581
E-mail: rwoolley@mccloskeypllc.com
Steve Turner
Barrett Daffin Frappier Turner & Engel
Tel: 512-687-2500
E-mail: wdecf@bdfgroup.com
Kell C. Mercer
Kell C. Mercer, P.C.
Tel: 512-627-3512
E-mail: kell.mercer@mercer-law-pc.com
Brian S. Engel
Barrett Daffin Frappier Turner & Engel
Tel: 512-687-2500
E-mail: brianen@bdfgroup.com
ASK IMAGE: Seeks to Hire Frank Giarratano as Accountant
-------------------------------------------------------
Ask Image Enterprises, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Maryland to hire Frank Giarratano, a
Maryland-based certified public accountant.
Mr. Giarratano provides general accounting, tax, litigation
support, reporting, auditing, and forensic services. He also
provides plan analysis, preference and avoidance action analysis,
and performance analysis services.
Mr. Giarratano will be paid $150 per hour and a flat fee of $400
for the preparation of each year's tax return.
In a court filing, Mr. Giarratano disclosed that he is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
Mr. Giarratano can be reached at:
Frank J. Giarratano, CPA
4237 Red Bandana Way
Ellicott City, MD 21042
Tel: (443) 283-2083
Fax: (443) 283-1407
About Ask Image
Ask Image Enterprises, LLC filed a petition for Chapter 11
protection (Bankr. D. Md. Case No. 21-17504) on Nov. 30, 2021,
listing up to $100,000 in assets and up to $500,000 in
liabilities.
Safari Charles, owner, signed the petition.
Judge David E. Rice oversees the case.
The Debtor tapped Marc A. Ominsky, Esq. as legal counsel and Frank
J. Giarratano, CPA as accountant.
BITNILE HOLDINGS: Cavalry Fund, et al. Report 0% Equity Stake
-------------------------------------------------------------
Cavalry Fund I LP, Cavalry Fund I Management LLC, and Thomas Walsh
disclosed in a Schedule 13G/A filed with the Securities and
Exchange Commission that as of Dec. 31, 2021, they beneficially own
zero shares of common stock of BitNile Holdings, Inc. A full-text
copy of the regulatory filing is available for free at:
https://www.sec.gov/Archives/edgar/data/896493/000090266422001129/p22-0536sc13ga.htm
About BitNile Holdings
BitNile Holdings, Inc. (formerly known as Ault Global Holdings,
Inc.) is a diversified holding company pursuing growth by acquiring
undervalued businesses and disruptive technologies with a global
impact. Through its wholly and majority-owned subsidiaries and
strategic investments, the Company owns and operates a data center
at which it mines Bitcoin and provides mission-critical products
that support a diverse range of industries, including
defense/aerospace, industrial, automotive, telecommunications,
medical/biopharma, and textiles. In addition, the Company extends
credit to select entrepreneurial businesses through a licensed
lending subsidiary. BitNile's headquarters are located at 11411
Southern Highlands Parkway, Suite 240, Las Vegas, NV 89141;
www.BitNile.com.
BitNile reported a net loss of $32.73 million for the year ended
Dec. 31, 2020, a net loss of $32.94 million for the year ended Dec.
31, 2019, and a net loss of $32.98 million for the year ended Dec.
31, 2018. As of Sept. 30, 2021, the Company had $225.72 million in
total assets, $24.74 million in total liabilities, and $200.98
million in total stockholders' equity.
BLINK CHARGING: BlackRock Has 5.9% Equity Stake as of Dec. 31
-------------------------------------------------------------
BlackRock, Inc. disclosed in a Schedule 13G filed with the
Securities and Exchange Commission that as of Dec. 31, 2021, it
beneficially owns 2,469,783 shares of common stock of Blink
Charging Co., representing 5.9 percent of the shares outstanding.
A full-text copy of the regulatory filing is available for free
at:
https://www.sec.gov/Archives/edgar/data/1364742/000083423722007251/us09354a1007_020422.txt
About Blink Charging
Based in Miami Beach, Florida, Blink Charging Co. (OTC: CCGID)
f/k/a Car Charging Group Inc. -- http://www.CarCharging.com-- is
an owner and operator of electric vehicle charging stations in the
United States and a growing presence in Europe, Asia, Israel, the
Caribbean, and South America. The Blink Network utilizes
proprietary cloud-based software that operates, maintains, and
tracks the EV charging stations connected to the network, along
with the associated charging data. The Company has established key
strategic partnerships to roll out adoption across numerous
location types, including parking facilities, multifamily
residences and condos, workplace locations, health care/medical
facilities, schools and universities, airports, auto dealers,
hotels, mixed-use municipal locations, parks and recreation areas,
religious institutions, restaurants, retailers, stadiums,
supermarkets, and transportation hubs.
Blink Charging reported a net loss of $17.85 million for the year
ended Dec. 31, 2020, a net loss of $9.65 million for the year ended
Dec. 31, 2019, and a net loss of $3.42 million for the year ended
Dec. 31, 2018. As of Sept. 30, 2021, the Company had $238.77
million in total assets, $14.41 million in total liabilities, and
$224.37 million in total stockholders' equity.
BLUE CHIP: Gets Cash Collateral Access on Final Basis
-----------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Alabama,
Southern Division, has authorized Blue Chip Hotels Assets Group
Birmingham East, LLC to use cash collateral on a final basis ad
provide adequate protection to Pacific Premier Bank.
The Debtor requires the use of cash collateral to ensure orderly
continuation of business.
The Debtor is indebted to Pacific Premier under a US Small Business
Administration Note dated March 6, 2017 payable by the Debtor to
Pacific Premier in the original principal amount of $2,349,000.
As of the Petition Date, the principal balance owed under the Note
was $2,168,044. The Debtor also agreed in the Note and Loan
Agreement to pay Pacific Premier's costs and expenses, including
without limitation its reasonable attorneys' fees, incurred in
connection with collecting amounts due under the Note, enforcing
the terms of the Note and Loan Agreement, and preserving or
disposing of any collateral securing the Loan.
The Obligations are secured by a Mortgage and Assignment of Rents
dated March 6, 2017 executed by the Debtor in favor of Pacific
Premier, encumbering certain real property and related property
interests located in Jefferson County, Alabama, as described more
specifically therein, on which the Debtor conducts its operations.
The Mortgage and AOR were recorded on March 21, 2017 in the Office
of the Judge of Probate of Jefferson County, Alabama as Instrument
#2017027420 and Instrument #2017027421, respectively.
Under the Mortgage and AOR, the Debtor granted to Pacific Premier a
first priority security interest in, inter alia, its rents,
revenue, income, issues, accounts receivable and cash, and all
proceeds of the same, derived from the operation of the Property,
which constitute cash collateral.
As adequate protection, Pacific Premier is granted replacement
liens in the post-petition Operating Revenues to the same extent
and priority as existed pre-petition. No financing statement or
other filing or control agreement by Pacific Premier is required to
perfect or continue the security interests granted therein;
however, should Pacific Premier desire to make any such filing or
execute any such agreement, the Debtor will take such actions and
execute such documents as may be reasonably required, and the
automatic stay is lifted and modified in favor of Pacific Premier
solely to permit it to file any documents it deems reasonably
necessary to perfect or continue the replacement liens granted
thereunder.
The Debtor will include in its Budget and pay to Pacific Premier,
and Pacific Premier will be entitled to receive, those monthly
payments owed to Pacific Premier under the Loan Documents, as and
when due, as adequate protection payments.
These events constitute an "Event of Default:"
a. The Debtor will violate or fail to timely satisfy,
post-petition, any term or condition of the Order or the Loan
Documents.
b. A trustee (other than the subchapter V trustee) or examiner
is appointed over the Debtor's bankruptcy estate without the
consent of Pacific Premier.
c. The Debtor sells or encumbers any item of property subject
to Pacific Premier's liens outside the ordinary course of the
Debtor's business, without the prior written consent of Pacific
Premier, unless the proceeds of any such transaction are sufficient
to pay the Obligations in full and are contemporaneously paid to
Pacific Premier for that purpose and in consideration for Pacific
Premier's release of the Security Documents and the liens granted
thereby.
d. The Chapter 11 proceeding is converted to a chapter 7
proceeding or dismissed.
e. Insurance required under the Loan Documents or the Order is
deemed inadequate, allowed to lapse, or otherwise terminated.
f. Taxes or other assessments are not paid as and when due,
resulting in the placement or imposition of liens on or actions
against the Property or the cash collateral.
A copy of the order is available at https://bit.ly/3HF9Alu from
PacerMonitor.com.
About Blue Chip Hotels Assets Group
Birmingham East LLC
Blue Chip Hotels Assets Group Birmingham East, LLC is part of the
hotel and motel industry. The company is headquartered in
Irondale, Ala.
Blue Chip Hotels filed its voluntary petition for Chapter 11
protection (Bankr. N.D. Ala. Case No. 21-02685) on Nov. 6, 2021,
listing as much as $10 million in both assets and liabilities.
Nilesh Mehta, managing member of Blue Chip Hotels, signed the
petition.
Judge Tamara O. Mitchell presides over the case.
C. Taylor Crockett, Esq., at C. Taylor Crockett, P.C. represents
the Debtor as legal counsel.
BOY SCOUTS: Key Abuse-Survivors Group Now Backs Plan
----------------------------------------------------
Becky Yerak and Andrew Scurria of The Wall Street Journal report
that the Boy Scouts of America has won over a key abuse-survivors
group on bankruptcy plan.
Lawyers of the official committee, representing 82,200 individual
claimants, will now recommend they accept the youth group's offer.
The Boy Scouts of America won backing for a landmark sex-abuse
compensation plan from the official committee representing 82,200
individual claimants, further solidifying support for ending the
largest bankruptcy case ever filed over childhood abuse.
The proposed deal with the survivors' committee, among the harshest
critics of the Boy Scouts since it filed for chapter 11 two years
ago, comes as the youth organization nears a trial scheduled for
later this month on a bankruptcy-exit plan that includes roughly
$2.7 billion for abuse victims.
About Boy Scouts of America
The Boy Scouts of America -- https://www.scouting.org/ -- is a
federally chartered non-profit corporation under title 36 of the
United States Code. Founded in 1910 and chartered by an act of
Congress in 1916, the BSA's mission is to train youth in
responsible citizenship, character development, and self-reliance
through participation in a wide range of outdoor activities,
educational programs, and, at older age levels, career-oriented
programs in partnership with community organizations. Its national
headquarters is located in Irving, Texas.
The Boy Scouts of America and affiliate Delaware BSA, LLC, sought
Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-10343) on
Feb. 18, 2020, to deal with sexual abuse claims.
Boy Scouts of America was estimated to have $1 billion to $10
billion in assets and at least $500 million in liabilities as of
the bankruptcy filing.
The Debtors have tapped Sidley Austin LLP as their bankruptcy
counsel, Morris, Nichols, Arsht & Tunnell LLP as Delaware counsel,
and Alvarez & Marsal North America, LLC, as financial advisor. Omni
Agent Solutions is the claims agent.
The U.S. Trustee for Region 3 appointed a tort claimants' committee
and an unsecured creditors' committee on March 5, 2020. The tort
claimants' committee is represented by Pachulski Stang Ziehl &
Jones, LLP, while the unsecured creditors' committee is represented
by Kramer Levin Naftalis & Frankel, LLP.
BOY SCOUTS: Key Players Attack Nondebtor Releases in Chapter 11
---------------------------------------------------------------
Vince Sullivan of Law360 reports that significant participants in
the Boy Scouts of America's bankruptcy case in Delaware have
objected to its proposed Chapter 11 plan, with the U.S. Trustee's
Office and groups of sex abuse claimants saying the plan's
third-party releases render it unconfirmable.
The U.S. trustee voiced its opposition late Monday, Feb. 7, 2022,
saying the plan's releases that would extinguish creditor claims
against numerous nondebtor parties violate the U. S. Constitution's
due process requirements, don't comply with the federal Bankruptcy
Code and clash with Third Circuit precedent. "The scope of the
plan's release provisions is so broad that the universe of parties
that will be released."
About Boy Scouts of America
The Boy Scouts of America -- https://www.scouting.org/ -- is a
federally chartered non-profit corporation under title 36 of the
United States Code. Founded in 1910 and chartered by an act of
Congress in 1916, the BSA's mission is to train youth in
responsible citizenship, character development, and self-reliance
through participation in a wide range of outdoor activities,
educational programs, and, at older age levels, career-oriented
programs in partnership with community organizations. Its national
headquarters is located in Irving, Texas.
The Boy Scouts of America and affiliate Delaware BSA, LLC, sought
Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-10343) on
Feb. 18, 2020, to deal with sexual abuse claims.
Boy Scouts of America was estimated to have $1 billion to $10
billion in assets and at least $500 million in liabilities as of
the bankruptcy filing.
The Debtors have tapped Sidley Austin LLP as their bankruptcy
counsel, Morris, Nichols, Arsht & Tunnell LLP as Delaware counsel,
and Alvarez & Marsal North America, LLC, as financial advisor.
Omni Agent Solutions is the claims agent.
The U.S. Trustee for Region 3 appointed a tort claimants' committee
and an unsecured creditors' committee on March 5, 2020. The tort
claimants' committee is represented by Pachulski Stang Ziehl &
Jones, LLP, while the unsecured creditors' committee is represented
by Kramer Levin Naftalis & Frankel, LLP.
BOY SCOUTS: Krause & Kinsman et al. May Proceed with Appeal
-----------------------------------------------------------
Chief Magistrate Judge Mary Pat Thynge of the United States
District Court for the District of Delaware issued a Recommendation
dated January 27, 2022, recommending that the case captioned KRAUSE
& KINSMAN, WOLF, RIFKIN, SHAPIRO, SCHULMAN & RABKIN, LLP, JAMES
HARRIS LAW, PLLC, ANDREOZZI & FOOTE, P.C., BABIN LAW, LLC, DAVIS
BETHUNE & JONES, Appellants, v. CENTURY INDEMNITY CO., and VERUS,
LLC, Appellees, C.A. No. 21-1778-RGA (D. Del.), be withdrawn from
the mandatory referral for mediation and proceed through the
District Court's appellate process.
Appellants do not believe that mediation would be helpful in
resolving this Appeal because issues concern the application of the
attorney-client privilege and work product doctrine to certain
documents and data. Appellants' appeal to obtain, not only relief,
but guidance and clarification from this Court through a written
opinion regarding these significant issues. Appellee Verus, LLC
takes no position regarding mediation. Appellee Century Indemnity
Company has not provided its position despite requests since
January 3, 2022 until the date of the written submission to this
judge on January 25, 2022. Century settled its liability in the
Bankruptcy Court, which remains subject to that court's approval
and has agreed to stand down. The remaining insurers join in
Appellants' position that mediation would not be helpful in
resolving this appeal. The parties have not previously been
involved in any ADR process regarding the discrete subject matters
of this appeal.
The parties propose the following expedited briefing schedule:
Appellants' Opening Brief -- February 5, 2022
Appellees' Response Brief -- February 15, 2022
Appellants' Reply Brief, is necessary -- February 18, 2022
A full-text copy of the Recommendation is available at
https://tinyurl.com/4j36v38r from Leagle.com.
About Boy Scouts of America
The Boy Scouts of America -- https://www.scouting.org/ -- is a
federally chartered non-profit corporation under title 36 of the
United States Code. Founded in 1910 and chartered by an act of
Congress in 1916, the BSA's mission is to train youth in
responsible citizenship, character development, and self-reliance
through participation in a wide range of outdoor activities,
educational programs, and, at older age levels, career-oriented
programs in partnership with community organizations. Its national
headquarters is located in Irving, Texas.
The Boy Scouts of America and affiliate Delaware BSA, LLC, sought
Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-10343) on
Feb. 18, 2020, to deal with sexual abuse claims.
Boy Scouts of America was estimated to have $1 billion to $10
billion in assets and at least $500 million in liabilities as of
the bankruptcy filing.
The Debtors have tapped Sidley Austin LLP as their bankruptcy
counsel, Morris, Nichols, Arsht & Tunnell LLP as Delaware counsel,
and Alvarez & Marsal North America, LLC as financial advisor.
Omni
Agent Solutions is the claims agent.
The U.S. Trustee for Region 3 appointed a tort claimants'
committee
and an unsecured creditors' committee on March 5, 2020. The tort
claimants' committee is represented by Pachulski Stang Ziehl &
Jones, LLP, while the unsecured creditors' committee is
represented
by Kramer Levin Naftalis & Frankel, LLP.
CAMDEN DIOCESE: Abuse Victims Asks Court for Ch.11 Claims Valuation
-------------------------------------------------------------------
Jeannie O'Sullivan of Law360 reports that clergy sex abuse
claimants implored a New Jersey bankruptcy judge on Wednesday,
February 9, 2022, to place a value on their claims amid a Chapter
11 stalemate with a Catholic diocese over their compensation,
arguing that the parties still can't agree on a figure after more
than a year.
The Diocese of Camden and the torts claims committee are at
"loggerheads" with respect to a payout for more than 300 clergy
abuse claims even after meditation before a retired federal judge,
committee attorney Brent Weisenberg of Lowenstein Sandler LLP told
the court during a roughly seven-hour hearing on several motions.
About The Diocese of Camden
The Diocese of Camden, New Jersey is a non-profit religious
corporation organized pursuant to Title 16 of the Revised Statutes
of New Jersey. It is the secular legal embodiment of the Roman
Catholic Diocese of Camden, a juridic person recognized under Canon
Law.
The Diocese of Camden sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.N.J. Case No. 20-21257) on Oct. 1, 2020.
Reverend Robert E. Hughes, vicar general and vice president, signed
the petition. In the petition, the Debtor disclosed total assets of
$53,575,365 and liabilities of $25,727,209.
Judge Jerrold N. Poslusny Jr. oversees the case.
The Debtor tapped McManimon, Scotland & Baumann, LLC, as its
bankruptcy counsel, Eisneramper, LLP, as financial advisor, Cooper
Levenson P.A. and Duane Morris LLP as special counsel. Prime Clerk
LLC is the Debtor's claims and noticing agent and administrative
advisor.
The U.S. Trustee for Regions 3 and 9 appointed an official
committee of unsecured trade creditors in the Debtor's Chapter 11
case. The committee is represented by Porzio, Bromberg & Newman,
P.C.
CENTER CITY: Mediation in Broad Street Appeal Directed to Proceed
-----------------------------------------------------------------
Chief Magistrate Judge Mary Pat Thynge of the United States
District Court for the District of Delaware issued a Recommendation
dated January 27, 2022, recommending that the matter in the
appellate case styled BROAD STREET HEALTHCARE PROPERTIES LLC, et
al., Appellants, v. CENTER CITY HEALTHCARE, LLC, et al., Appellees,
C.A. No. 21-1779-RGA (D. Del.), be withdrawn from the mandatory
referral for mediation, allowing the ongoing mediation to proceed
to conclusion and, if mediation is unsuccessful, proceed through
the Court's appellate process.
On October 29, 2021, Broad Street Health Care Properties, LLC,
Broad Street Healthcare Properties II, LLC, Broad Street Healthcare
Properties, III, LLC and Philadelphia Heath Holdings asked the
United States Bankruptcy Court for the District of Delaware
overseeing the Chapter 11 proceedings of Center City Healthcare,
LLC, to enter an Order (1) determining that the automatic stay does
not apply to their assets or, in the alternative, granting limited
relief from the automatic stay for them to sell, transfer or
otherwise encumber such assets (the Comfort/Lift Stay Motion).
The Comfort/Lift Stay Motion was opposed by each of Tenent Business
Services and Conifer Revenue Cycle Solutions (collectively Tenent),
HSRE-PAHH I, LLC and its affiliates, and the Official Committee of
Unsecured Creditors.
After an evidentiary hearing in the Bankruptcy Court on the
Comfort/Lift Stay Motion on December 1, 2021, the Bankruptcy Court
issued its Order on December 6 denying the request.
On December 20, 2021, Appellants filed with the Bankruptcy Court a
Notice of Appeal and on December 29, this appeal was assigned to
the Honorable Richard G. Andrews.
Certain issues raised by the Comfort/Lift Stay motion and the
various oppositions thereto and this appeal are closely related
with various claims, disputes and differences among the parties
that are currently the subject of mediation. Appellants and certain
related parties, the MBNF Non-Debtor Parties, the Debtors, the
Committee and HSRE engaged in mediation before the Honorable Kevin
J. Carey (ret.) pursuant to the Bankruptcy Court's orders dated
February 23, 2021 and July 28, 2021. Further, certain of the MBNF
Non-Debtor parties and Tenent engaged in mediation before the
Honorable Joseph J. Farnan (ret.). By agreement of all parties, the
Mediators are working cooperatively together and with the parties
with the goal to achieve a global resolution of all claims and
issues among the parties, including this appeal.
Although Appellants filed their Notice of Appeal to preserve their
rights, all parties are committed to continuing with Mediation. The
parties request that they be permitted to continue with Mediation
and no briefing schedule be set for this appeal until the Mediators
determine that Mediation has concluded without a settlement.
A full-text copy of the Recommendation is available at
https://tinyurl.com/bdesf33j from Leagle.com.
About Center City Healthcare
Center City Healthcare, LLC, is a Delaware limited liability
company that operates Hahnemann University Hospital. Its parent
company is Philadelphia Academic Health System, LLC, which is also
the parent company of St. Christopher's Healthcare, LLC and its
affiliated physician groups.
Center City Healthcare and its affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No.
19-11466) on June 30, 2019. At the time of the filing, the Debtors
estimated assets of between $100 million and $500 million and
liabilities of the same range.
The cases are assigned to Judge Kevin Gross.
The Debtors tapped Saul Ewing Arnstein & Lehr LLP as legal counsel;
EisnerAmper LLP as restructuring advisor; SSG Advisors, LLC as
investment banker; and Omni Management Group, Inc. as claims and
noticing agent.
CHRYSLER LLC: Bankr. Court Won't Enforce Sale Order to Bar Claims
-----------------------------------------------------------------
Judge Martin Glenn of the United States Bankruptcy Court for the
Southern District of New York addresses important issues about the
gatekeeping role of a bankruptcy court that is asked to interpret
and enforce a section 363 sale order that provided for a free and
clear sale of a debtor's assets.
FCA US LLC, the section 363 purchaser of most of Old Chrysler's
assets, is a defendant in a multi-district litigation involving
Takata airbags that is pending in a federal district court in
Florida. FCA raised the free and clear sale issue with the Florida
district court in 2015, and again in a motion to dismiss filed in
the Florida district court in 2018.
The Bankruptcy Court and the Florida district court have concurrent
jurisdiction to interpret the sale order. The Florida district
court granted FCA's motion to dismiss in part and denied it in
part, but the district court decision is not a final judgment.
Dissatisfied with the result in Florida, FCA now asks the
Bankruptcy Court to enforce the sale order and bar the claims
against FCA in the multi-district case. The plaintiffs make clear
that their claims against FCA are based solely on FCA's post-sale
conduct and not on any alleged conduct of pre-bankruptcy Chrysler.
Judge Glenn concludes that FCA should only get one bite at the
apple; the Court therefore applies permissive abstention under 28
U.S.C. Section 1334(c)(1); declines to interpret the sale order;
and denies the motion to enforce the sale order.
In prior decisions involving motions to enforce sale orders, the
Bankruptcy Court has used the term "gatekeeper" to describe and
distinguish the Court's role from that of the nonbankruptcy court
presiding over the underlying actions. In Dearden v. FCA US LLC
(In re Old Carco LLC), the Court discussed the legal standard that
governs a motion to dismiss pursuant to Federal Rule of Civil
Procedures 12(b)(6), and went on to state:
"While these principles apply to the [motion to dismiss], the
Court's role is more limited. It acts as a gatekeeper, and must
determine whether the Amended Complaint purports to allege a claim
that is barred by the Sale Order or the MTA, as amended. If the
claim passes the gate, the non-bankruptcy court presiding over the
action must decide if any surviving claim is a legally sufficient
claim under applicable non-bankruptcy law."
The critical question now is whether the Court must (or even may)
undertake its "gatekeeper" role in connection with the Takata MDL
which has been pending before Judge Moreno for many years, and in
which he has already ruled (but not on a final basis) on FCA's
arguments that the Sale Order bars the Plaintiffs claims against
FCA.
Judge Glenn points out that while the Bankruptcy Court has
jurisdiction to interpret the Sale Order, the MDL Court has
concurrent jurisdiction. In most circumstances, a bankruptcy court
that has approved a section 363 sale is in the best position to
interpret its own order, particularly as to the scope and meaning
of a "free and clear" sale provision. This is primarily a
bankruptcy law issue that has figured importantly in many
bankruptcy cases. Often, it is the nonbankruptcy court that has
asked for the bankruptcy court in exercising its gatekeeping
function to determine the scope and effect of the free and clear
sale provision. Other times, the section 363 purchaser, faced with
claims in a nonbankruptcy court that it believes are barred by a
free and clear sale order, files a motion in the bankruptcy court
to enforce the sale order before the claims in nonbankruptcy court
have proceeded very far.
But those are very different circumstances than the history
presented here, Judge Glenn notes. FCA raised the issue of the free
and clear sale provision in the MDL Court as early as 2015, and it
filed the MTD on those grounds in 2018, leading to the MTD Order in
2020. A bankruptcy court does not sit in review of decisions of
nonbankruptcy courts.
"FCA may be disappointed with the results it has achieved so far
from its chosen path, but that cannot justify its effort now in
this Court," Judge Glenn rules.
According to Judge Glenn, permissive abstention may be raised sua
sponte by the Court notwithstanding the absence of a motion by
either the FCA or the Plaintiffs. In deciding whether to abstain
under 28 U.S.C. 1334(c)(1), courts "weigh considerations of comity
and federalism, judicial economy, and efficiency, including:
(1) the effect or lack thereof on the efficient administration
of the estate if a Court recommends abstention, (2) the extent to
which state law issues predominate over bankruptcy issues, (3) the
difficulty or unsettled nature of the applicable state law, (4) the
presence of a related proceeding commenced in state court or other
nonbankruptcy court, (5) the jurisdictional basis, if any, other
than 28 U.S.C. Section 1334, (6) the degree of relatedness or
remoteness of the proceeding to the main bankruptcy case, (7) the
substance rather than form of an asserted 'core' proceeding, (8)
the feasibility of severing state law claims from core bankruptcy
matters to allow judgments to be entered in state court with
enforcement left to the bankruptcy court, (9) the burden on the
court's docket, (10) the likelihood that the commencement of the
proceeding in a bankruptcy court involves forum shopping by one of
the parties, (11) the existence of a right to a jury trial, and
(12) the presence in the proceeding of nondebtor parties.
Judge Glenn holds that factors two and three, the extent to which
non-bankruptcy law issues predominate over bankruptcy issues and
the difficulty of the applicable non-bankruptcy law, have been met.
At this point well-settled law recognizes that independent claims
against a section 363 purchaser based on the purchaser's post-sale
conduct are not barred by a free and clear provision in a sale
order. Whether Plaintiffs can prove at summary judgment or trial
that FCA's post-closing conduct was a proximate cause of their
economic losses has not been decided and it predominates over
bankruptcy issues in the Takata MDL.
Factor six, the degree of relatedness or remoteness of the
proceedings to the main bankruptcy case, favors abstention, Judge
Glenn says. There is a related proceeding pending in the MDL Court,
a non-bankruptcy court. More than 10 years after the Old Chrysler
bankruptcy case was filed in this Court and the 363 sale was
approved, the issues pending in the MDL Court are remote from the
main bankruptcy case and will not affect the success of the
reorganization.
Factor ten, the likelihood that the proceeding involves forum
shopping, weighs in favor of abstaining, Judge Glenn adds. FCA
chose the MDL Court as the first forum in which to raise the free
and clear sale issues. Now, years later, apparently dissatisfied
with its results so far, and having switched counsel, FCA hardly
presents a sympathetic case when asking this Court to exercise its
gatekeeping role. At no point did FCA argue that this Court should
decide the issue until now, well after FCA filed its MTD in 2018.
Moreover, FCA's MTD was granted a "full and fair opportunity to be
heard" by the MDL Court, Judge Glenn notes.
Factor eleven, the existence of a right to a jury trial, weighs in
favor of abstaining, Judge Glenn continues. The right to a jury
trial still exists in the MDL Court in determining what the
proximate cause for Plaintiffs' economic loss claims are.
According to Judge Glenn, FCA's request for this Court to assume
its "gatekeeper" role does not prevent the Court from permissively
abstaining, Judge Glenn holds. In prior decisions where the Court
exercised its gatekeeper function, it usually did so after the
nonbankruptcy court transferred the case to this Court to interpret
the Sale Order. Unlike those cases, FCA did not request the MDL
Court to transfer the Plaintiffs claims to this Court and the MDL
Court did not do so on its own.
A prior decision in which the case was not transferred to the Court
also counsels against the Court exercising its gatekeeper function
here, Judge Glenn expounds. In Overton v. Chrysler Grp. LLC, No.
2:17-CV-01983-RDP, 2018 WL 847772, at *8 (N.D. Ala. Feb. 13, 2018),
plaintiffs Overton and Graham sued New Chrysler and other
defendants in the Circuit Court of Jefferson County, Alabama, for
claims arising from a car accident with fatal and non-fatal
injuries. New Chrysler removed the action to the United States
District Court for the Northern District of Alabama and moved to
sever claims and transfer venue to the United States District Court
for the Southern District of New York for referral to this Court.
On February 13, 2018, the Alabama District Court declined to
transfer the case and remanded it to the Alabama State Court. On
March 12, 2018, New Chrysler filed a motion to enforce the Sale
Order with this Court and the Court exercised its gatekeeper role
to determine whether the claims asserted against New Chrysler were
barred by the Sale Order.
According to Judge Glenn, key facts distinguish Overton from the
facts present here. First, New Chrysler did not ask the Alabama
District Court to interpret whether the Sale Order barred the
plaintiffs' claims, and the Alabama District Court did not issue a
ruling whether the plaintiffs' claims were barred by the Sale Order
and instead left it for the Alabama State Court to decide. Second,
New Chrysler filed the motion to enforce the Sale Order in this
Court less than one month after the Alabama District Court's
decision. Here, FCA argued before the MDL Court that the Sale Order
barred the Plaintiffs' claims. The MDL Court specifically analyzed
the issue and found that the "application of the Sale order is
claim specific" and it would not rule on the "all or nothing"
argument advanced by FCA. Additionally, the Motion was filed three
years after FCA's MTD and more than one year after the MDL Order.
A full-text copy of Judge Glenn's Memorandum Opinion and Order
dated January 27, 2022, is available at
https://tinyurl.com/2p9b5zbv from Leagle.com.
GIBBONS P.C., By: Robert K. Malone, Esq. -- rmalone@gibbonslaw.com
-- Brett S. Theisen, Esq. -- btheisen@gibbonslaw.com -- (NJ Ofc),
New York, New York. Attorneys for FCA US LLC.
CLARK HILL PLC, By: John Berg, Esq. -- jberg@clarkhill.com --
Detroit, Michigan, Attorneys for FCA in MDL Action.
PODHURST ORSECK, P.A., By: Peter Prieto, Esq. --
pprieto@podhurst.com -- Matthew P. Weinshall, Esq. --
mweinshall@podhurst.com -- Miami, Florida and STUTZMAN BROMBERG
ESSERMAN PLIFKA, By: Peter D'Apice, Esq. -- d'apice@sbep-law.com --
Sander L. Esserman, Esq. -- esserman@sbep-law.com -- Kaitlyn
Fletcher, Esq. -- fletcher@sbep-law.com -- Dallas, Texas, Attorneys
for MDL Plaintiffs.
About Chrysler LLC
Chrysler LLC and 24 affiliates on April 30, 2009, sought Chapter 11
protection from creditors (Bankr. S.D.N.Y (Mega-case), Lead Case
No. 09-50002). Chrysler hired Jones Day, as lead counsel; Togut
Segal & Segal LLP, as conflicts counsel; Capstone Advisory Group
LLC, and Greenhill & Co. LLC, for financial advisory services; and
Epiq Bankruptcy Solutions LLC, as its claims agent. Chrysler
changed its corporate name to Old CarCo following its sale to a
Fiat-owned company. As of Dec. 31, 2008, Chrysler had
$39,336,000,000 in assets and $55,233,000,000 in debts. Chrysler
had $1.9 billion in cash at that time.
In connection with the bankruptcy filing, Chrysler reached an
agreement with Fiat SpA, the U.S. and Canadian governments and
other key constituents regarding a transaction under Section 363 of
the Bankruptcy Code that would effect an alliance between Chrysler
and Italian automobile manufacturer Fiat. As part of that deal,
Fiat acquired a 20% equity interest in Chrysler Group.
Under the terms approved by the Bankruptcy Court, the company
formerly known as Chrysler LLC on June 10, 2009, formally sold
substantially all of its assets, without certain debts and
liabilities, to a new company that will operate as Chrysler Group
LLC. The U.S. and Canadian governments provided Chrysler with $4.5
billion to finance its bankruptcy case. Those loans are to be
repaid with the proceeds of the bankruptcy estate's liquidation.
Old Carco's Second Amendment Joint Plan of Liquidation was
confirmed by the Bankruptcy Court on April 23, 2010.
CINEMA SQUARE: Has Deal to Extend Cash Collateral Use
-----------------------------------------------------
Cinema Square, LLC and Wilmington Trust, National Association, as
Trustee, for the benefit of the Holders of COMM 2016-DC2 Mortgage
Trust Commercial Mortgage Pass Through Certificates, Series
2016-DC2, have advised the U.S. Bankruptcy Court for the Central
District of California, Santa Barbara Division, that they have
reached an agreement to extend the Debtor's use of cash collateral
through June 30, 2022.
On November 24, 2021, the Court entered an Order Approving the
Agreement to Extend Stipulation Regarding Use of Cash Collateral
between the Lender and the Debtor, whereby the Lender consented to
use of cash collateral through February 28. The Court's Order
provides that the Cash Collateral Stipulation can be further
extended by the parties in writing without further the Bankruptcy
Court order.
The parties have discussed and reached an agreement to further
extend the Cash Collateral Stipulation through June 2022.
A copy of the stipulation and the Debtor's budget for the period
from February to June 2022 is available at https://bit.ly/3rEWQpv
from PacerMonitor.com.
The Debtor projects $319,388 in total operating income and $8,754
in total administrative expenses for the period.
About Cinema Square, LLC
Cinema Square, LLC is the owner of a small shopping center located
at 6917 El Camino Real, Atascadero, CA 93422. There are several
tenants, the primary tenant is a movie theater, the Galaxy
Theater.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 21-10634) on June 14,
2021. In the petition signed by Jeffrey C. Nelson, president, the
Debtor disclosed up to $50 million in assets and up to $10 million
in liabilities.
Judge Deborah J. Saltzman oversees the case.
William C. Beall, Esq., at Beall & Burkhardt, APC is the Debtor's
counsel.
CRAVE BRANDS: Subchapter V Trustee Counsel Awarded $56,000 in Fees
------------------------------------------------------------------
Judge Timothy A. Barnes of the United States Bankruptcy Court for
the Northern District of Illinois, Eastern Division, allows fees
and costs totaling $56,145.78 to be awarded to Gensburg
Calandriello & Kanter, P.C., as attorneys for the Subchapter V
Trustee of Crave Brands, LLC.
A full-text copy of the Findings of Fact and Conclusions of Law
dated January 28, 2022, is available at
https://tinyurl.com/2p9ys3rh from Leagle.com.
About Crave Brands
Crave Brands LLC, a company based in Chicago, Ill., sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
N.D. Ill. Case No. 21-04729) on April 9, 2021. In the petition
signed by Steve Karfaridis, manager, the Debtor disclosed total
assets of up to $50,000 and liabilities of up to $10 million.
Judge Timothy A. Barnes oversees the case.
Matthew Brash is the Subchapter V trustee appointed in the
Debtor's
bankruptcy case.
David A. Warfield, Esq., at Thompson Coburn LLP, represents the
Debtor as bankruptcy counsel.
LQD Financial Corp., a creditor, is represented by the Law Office
of William J. Factor, Ltd.
DIOCESE OF BUFFALO: Negotiates to Settle Attorney General Lawsuit
-----------------------------------------------------------------
Jay Tokasz of The Buffalo News reports that the Buffalo Diocese
appears to be closing in on a negotiated settlement of the state
attorney general's 2020 lawsuit over the diocese's decadeslong
cover-up of child sexual abuse allegations against clergy.
Lawyers for the diocese and the Attorney General's Office have been
going back and forth for months on a draft settlement agreement,
according to documents filed in U.S. Bankruptcy Court.
Bishop Michael W. Fisher declined to discuss those negotiations,
beyond saying that the diocese was committed to “strict
enforcement” of policies put in place to ensure the protection of
children and vulnerable adults.
"I'm not trying to be evasive or secretive about things, it's just
at this time, it's not appropriate for me to discuss the attorney
general’s case in the media or how we're responding to it. When
that time comes, believe me, we will do so," Fisher said in a
recent interview with The Buffalo News about his first year as 15th
bishop of the Buffalo Diocese.
A spokeswoman for the Attorney General's Office declined to
comment. Both sides signed an agreement in May to keep settlement
talks confidential.
In an hour-long interview, Fisher addressed recent developments in
the diocese's nearly two-year-old Chapter 11 bankruptcy case, a new
plan to rejuvenate parish life, and efforts to reach a final
determination from the Vatican on the fates of several priests who
were credibly accused of abusing children.
Attorney General Letitia James filed the lawsuit nearly 14 months
ago, alleging that the diocese, retired Bishop Richard J. Malone
and retired Auxiliary Bishop Edward M. Grosz protected more than
two dozen priests who had credible accusations of child sexual
abuse lodged against them.
The lawsuit was the culmination of a two-year investigation in
which the Attorney General's Office's Charities Bureau, which
oversees nonprofit organizations, subpoenaed thousands of pages of
internal diocese records. Court papers allege that the diocese and
its officials violated multiple provisions of the state's
Not-for-Profit Corporation Law and the Estates, Powers and Trusts
Law by not administering itself in a manner consistent with state
public policy.
It is the first Attorney General's Office probe in the country to
use such an approach in a lawsuit against a Catholic diocese over
its handling of sex abuse claims and offending priests.
The lawsuit, filed in New York County State Supreme Court, was
transferred to the U.S. District Court Southern District of New
York when the diocese raised potential religious freedom
questions.
U.S. District Court Judge Ronnie Abrams put the litigation on hold
in September to allow time for a negotiated settlement. Both sides
were slated to provide an update to Abrams in late January,
according to court papers filed in federal bankruptcy court, where
attorneys hired by the diocese are required to report their
billable hours of work.
As part of its lawsuit, the Attorney General's Office sought a
court order that will require the diocese to comply with its own
policies and procedures related to investigating abuse and removing
offending clergy and employees. It also asked the court to order
that the diocese hire an independent compliance auditor to monitor
and review those policies and procedures.
Fisher in September interviewed Kathleen McChesney to do the
monitoring and independent audit, court papers said. McChesney is a
former FBI executive assistant director who led the U.S. Conference
of Catholic Bishops’ Office of Child Protection and helped
dioceses implement the Charter for the Protection of Children and
Young People. She now runs Kinsale Management Consulting.
About The Diocese of Buffalo, N.Y.
The Diocese of Buffalo, N.Y., is home to nearly 600,000 Catholics
in eight counties in Western New York. The territory of the diocese
is co-extensive with the counties of Erie, Niagara, Genesee,
Orleans, Chautauqua, Wyoming, Cattaraugus, and Allegany in New York
State, comprising 161 parishes. There are 144 diocesan priests and
84 religious priests who reside in the Diocese.
The diocese through its central administrative offices (a) provides
operational support to the Catholic parishes, schools, and certain
other Catholic entities that operate within the territory of the
Diocese "OCE"; (b) conducts school operations through which it
provides parish schools with financial and educational support;
(c)
provides comprehensive risk management services to the OCEs; (d)
administers a lay pension trust and a priest pension trust for the
benefit of certain employees and priests of the OCEs; and (e)
provides administrative support for St. Joseph Investment Fund,
Inc.
Dealing with sexual abuse claims, the Diocese of Buffalo sought
Chapter 11 protection (Bankr. W.D.N.Y. Case No. 20-10322) on Feb.
28, 2020. The diocese was estimated to have $10 million to $50
million in assets and $50 million to $100 million in liabilities as
of the bankruptcy filing.
The Honorable Carl L. Bucki is the case judge.
Bond, Schoeneck & King, PLLC, led by Stephen A. Donato, Esq., is
the diocese's counsel; Connors LLP and Lippes Mathias Wexler
Friedman LLP are its special litigation counsel; and Phoenix
Management Services, LLC is its financial advisor. Stretto is the
claims agent, maintaining the page:
https://case.stretto.com/dioceseofbuffalo/docket.
The Office of the U.S. Trustee appointed a committee of unsecured
creditors on March 12, 2020. The committee is represented by
Pachulski Stang Ziehl & Jones, LLP and Gleichenhaus, Marchese &
Weishaar, PC.
EDGEWATER HOLDINGS: Taps Lydecker LLP as Bankruptcy Counsel
-----------------------------------------------------------
Edgewater Holdings Miami, LLC seeks approval from the U.S.
Bankruptcy Court for the Southern District of Florida to hire
Lydecker, LLP to serve as legal counsel in its Chapter 11 case.
The firm's services include:
(a) giving advice to the Debtor with respect to its powers and
duties and the continued management of its business operations;
(b) advising the Debtor with respect to its responsibilities
in complying with the U.S. Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the court;
(c) preparing legal documents;
(d) protecting the interest of the Debtor in all matters
pending before the court; and
(e) representing the Debtor in negotiation with its creditors
in the preparation of a Chapter 11 plan.
Carlos de Zayas, Esq., the firm's attorney who will be providing
the services, disclosed in a court filing that he is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Carlos de Zayas, Esq.
Lydecker, LLP
1221 Brickell Avenue, 19th Floor
Miami, Florida 33131
Tel. No.: (305) 416-3180
Fax. No.: (305) 416-3190
Email: cdz@lydecker.com
About Edgewater Holdings
Edgewater Holdings Miami, LLC is a company based in Hialeah, Fla.,
which conducts business under the name Fortuna House Apartments.
The company is part of the traveler accommodation industry.
Edgewater filed a petition for Chapter 11 protection (Bankr. S.D.
Fla. Case No. 22-10882) on Feb. 2, 2022, listing $5,037,200 in
assets and $3,695,403 in liabilities. Daniel Marzano, manager,
signed the petition.
The Debtor tapped Lydecker, LLP as legal counsel.
EHT US1 INC: Opening Brief in "Wu" Appeal Due March 14
------------------------------------------------------
Chief Magistrate Judge Mary Pat Thynge of the United States
District Court for the District of Delaware recommended that the
case captioned HOWARD WU, et al., Appellants, v. EHT US1, INC., at
al., Appellees, C.A. No. 21-1820-MN (D. Del.), be withdrawn from
the mandatory referral for mediation and proceed through the
District Court's appellate process.
Both Appellants and Appellees conferred regarding the prospects of
mediating the present dispute, and agreed that mediation will not
be useful in resolving this appeal. They requested that the appeal
be withdrawn from mandatory mediation.
The parties propose the following briefing schedule:
Appellants' Opening Brief -- March 14, 2022
Appellees' Answering Brief -- April 28, 2022
Appellants' Reply Brief -- May 30, 2022
Appellants filed a notice of appeal on December 27, 2021, from the
Bankruptcy Court's order confirming the Chapter 11 plan of the
liquidating debtors. Appellees previously sought to dismiss this
appeal based on equitable mootness and have now asked the Court to
consider the merits of this appeal, along with a simultaneous
motion to dismiss to avoid multiple rounds of appeals. Counsel for
the Liquidating Trustee conferred with the other Appellees -- the
Official Committee of Unsecured Creditors and Bank of America,
N.A., the prepetition agent -- and all Appellees jointly request
approval of certain deadlines.
A full-text copy of the January 27, 2022 Recommendation is
available at https://tinyurl.com/2p8emyj5 from Leagle.com.
About Eagle Hospitality Group
Eagle Hospitality Trust -- https://eagleht.com/ -- is a hospitality
stapled group comprising Eagle Hospitality Real Estate Investment
Trust and Eagle Hospitality Business Trust. Based in Singapore,
Eagle H-REIT is established with the principal investment strategy
of investing on a long-term basis in a diversified portfolio of
income-producing real estate, which is used primarily for
hospitality or hospitality-related purposes as well as real
estate-related assets in connection with the foregoing, with an
initial focus on the United States.
EHT US1, Inc. and 26 affiliates, including 15 LLC entities that
each owns hotels in the U.S., sought Chapter 11 protection (Bankr.
D. Del. Lead Case No. 21-10036) on Jan. 18, 2021. EHT US1
estimated $500 million to $1 billion in assets and liabilities as
of the bankruptcy filing.
The Debtors tapped Paul Hastings LLP and Cole Schotz P.C. as their
bankruptcy counsel, FTI Consulting Inc. as restructuring advisor,
and Moelis & Company LLC as an investment banker. Rajah & Tann
Singapore LLP and Walkers serve as Singapore Law counsel and Cayman
Law counsel, respectively. Donlin, Recano & Company, Inc. is the
claims agent.
The U.S. Trustee for Region 3 appointed an official committee of
unsecured creditors on Feb. 4, 2021. The committee tapped Kramer
Levin Naftalis & Frankel, LLP as bankruptcy counsel, Morris James
LLP as Delaware counsel, and Province, LLC as financial advisor.
LVM Law Chambers LLC serves as the Debtor's Singapore law Conflicts
counsel.
David M. Klauder, Esq., is the fee examiner appointed in the
Debtors' Chapter 11 cases. Thomas D. Bielli, Esq., at Bielli &
Klauder, LLC, is the fee examiner's legal counsel.
EXPRESS GRAIN: Gets More Time to File Chapter 11 Plan
-----------------------------------------------------
Express Processing, LLC and its affiliates, Express Biodiesel, LLC
and Express Processing, LLC, have been given more time to file
their plan for emerging from Chapter 11 protection.
The U.S. Bankruptcy Court for the Northern District of Mississippi
granted the companies' motions to file their plan of reorganization
and disclosure statement within 90 days from Jan. 27 or,
alternatively, 14 days after the court renders its decision in
connection with the procedures under Section 557 of the Bankruptcy
Code that have been enacted in the companies' jointly administered
Chapter 11 cases.
About Express Grain Terminals
Greenwood, Mississippi-based Express Grain Terminals, LLC, produces
soy products such as oil and biodiesel.
Express Grains Terminals and its affiliates, Express Biodiesel, LLC
and Express Processing, LLC, sought Chapter 11 protection (Bankr.
N.D. Miss. Lead Case No. 21-11832) on Sept. 29, 2021. At the time
of the filing, Express Grains Terminals listed up to $50 million in
assets and up to $100 million in liabilities. Judge Selene D.
Maddox oversees the cases.
The Law Offices of Craig M. Geno, PLLC, is the Debtors' legal
counsel.
UMB Bank, N.A., the Debtors' lender, is represented by Spencer Fane
LLP.
FABMETALS INC: Unsecureds Will Get 27.24% of Claims in Plan
-----------------------------------------------------------
FabMetals, Inc., filed with the U.S. Bankruptcy Court for the
Southern District of Ohio a Second Amended Plan of Reorganization
dated Feb. 7, 2022.
Debtor was originally founded in 1987 as a small custom fabricator,
building spray trucks for the nation's largest lawn care franchise.
The Debtor's current operations as a corporation were formed in
Ohio in 1991.
The benefit of this Plan is that it will allow a small business to
continue operations while providing employment and benefits to its
workforce. The benefit to all creditors is that they will receive a
portion of their outstanding debt with the possibility of a higher
return if the reorganized Debtor is successful.
The Plan will treat claims as follows:
* Class 4 consists of the debt owed to the Hensley Family
Limited Partnership as the DIP Lender. Class 4 Claims shall be paid
under the Plan in accordance with its Loan Documents and the DIP
Financing Order. The Class 4 Claim will be paid in full with
interest at the contract rate, with the line of credit provided for
under the Loan Documents and the DIP Financing Order remaining
available to the Debtor in accordance with the terms thereof. Class
4 is unimpaired under the Plan.
* Class 5 consists of remaining secured claims. This class is
made up of the claims of SG Equipment Finance USA Corporation dba
Trumpf Finance or De Lage Landen. Each Class 5 Claim will be paid
in full with interest at the contract rate and monthly payments
continuing until such claim is paid in full, regardless of whether
the final payment on such claim is during the Term of the Plan or
after the Term of the Plan has expired.
* Class 6 consists of Allowed General Unsecured Claims.
Allowed Class 6 Claims shall be paid the Pro Rata Allocation
(together with Class 7 Claims) of the Net Excess Funds. Debtor
estimates a distribution of approximately 27.24% over the Term,
with the possibility of more being distributed to Class 6 Claims
once there is a Finally Determined Stratacache Claim. Class 6 is
impaired under the Plan and entitled to vote to accept or reject
the Plan.
* Class 7 consists of the Stratacache Claim and treated at an
assumed amount of $2,361,270.00 until it is a Finally Determined
Stratacache Claim. Until Class 7 is a Finally Determined
Stratacache Claim or until the Final Distribution Date, whichever
comes first, the Debtor shall distribute Pro Rata Allocation
(together with Class 6 Claims) of the Net Excess Funds into the
Escrow Account. Within 30 days after Class 7 becoming a Finally
Determined Stratacache Claim, funds on deposit in the Escrow
Account shall be re-determined for the proper Pro Rata Allocation,
based upon the final amount of the Finally Determined Stratacache
Claim, and such re-calculated amount as is available in the Escrow
Account shall be distributed to Class 7.
* Class 8 consists of the ownership interest of Tommy and
Cynthia Hensley. Class 8 shall retain its ownership interest in the
Debtor. The salary of Tommy Hensley shall continue at $72,900
annually, subject to regular cost of living adjustments. The salary
of Cynthia Hensley shall continue at $60,750 annually, subject to
regular cost of living adjustments.
Debtor anticipates the continued operations of the business,
supplemented with draws from the DIP Lender will be adequate for
operations.
A full-text copy of the Second Amended Plan of Reorganization dated
Feb. 7, 2022, is available at https://bit.ly/3GGQIkG from
PacerMonitor.com at no charge.
Counsel for Debtor:
COOLIDGE WALL CO., L.P.A.
Patricia J. Friesinger
33 West First Street, Suite 600
Dayton, Ohio 45402
Tel: 937/223-8177
Fax: 937/223-6705
E-Mail: friesinger@coollaw.com
About Fabmetals Inc.
New Carlisle, Ohio-based FabMetals, Inc., filed a petition for
Chapter 11 protection (Bankr. S.D. Ohio Case No. 21-31583) on Sept.
17, 2021, listing as much as $10 million in both assets and
liabilities. Judge Guy R. Humphrey oversees the case.
Patricia J. Friesinger, Esq., at Coolidge Wall Co., L.P.A. and
Kentner Sellers, LLP serve as the Debtor's legal counsel and
accountant, respectively.
Security National Bank, a Division of The Park National Bank, as
lender, is represented by Vorys, Sater, Seymour and Pease, LLP.
FORESTAR GROUP: S&P Raises ICR to 'B+', Outlook Stable
------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on Arlington,
Tex.-based residential land developer Forestar Group Inc. to 'B+'
from 'B', and S&P raised its rating on the company's senior
unsecured notes to 'BB-' from 'B+'.
S&P's stable outlook is based on the view that leverage will drop
to about 3x EBITDA as solid demand for finished lots drives 40%
EBITDA growth as incremental land spending is funded with a
balanced mix of cash flow, cash on hand and incremental debt.
Forestar's lower leverage has stemmed from significant profit
growth. S&P forecasts the company's debt to EBITDA will be about 3x
into fiscal 2023 (September). This year's estimated 40% jump in
profits to about $290 million follows a doubling in 2021 EBITDA,
due mainly to a 30% increase in lot-sales volumes (of 25%). Higher
adjusted gross margin gains should also contribute, though this
year's expected rise of almost 200 basis points to 22% is a
fraction of the five-percentage point jump in fiscal 2021.
Near-term operational success will remain closely linked to
majority owner D.R. Horton (DHI). A master supply agreement
formalizes DHI's lot purchases from FOR and helps ensure continued
transactions between the two parties into the next decade, at
least, in S&P's view. Thus, the near-term profit gains have
relatively high visibility. Indeed, DHI is under contract to
purchase a full-third (20,000 homesites) of the company's owned
lots over time, and in 2022, Forestar's parent should account for
about 80% of the year's (lot sales) revenues of $1.7 billion.
DHI's ownership of FOR should only gradually decline. Equity
ownership by the country's largest builder (based on unit closings)
has been cut to 63%, from 75% since DHI took a controlling interest
in 2017. (FOR's results are consolidated into DHI's.) S&P's
forecasts suggest that, over the next three to five years, DHI will
reduce its stake by two to three percentage points annually. Thus,
FOR should remain a strategic part of the much larger DHI's
land-based growth plans for the foreseeable future.
Operating cash flows should remain solidly negative though, given
FOR's ambitious growth plans. S&P sid, "We think the company will
increase its inventory of homesites well ahead of replenishment
rates over the next two- to three years at least. In fact, through
fiscal 2023 our forecasts suggest these inventories grow by 10%-20%
annually. The resulting working capital outflows, of more than $250
million a year, however, will largely be funded from FFO. In
addition, we anticipate draws on the revolver this year, and by
mid-fiscal 2023 we expect a new senior note issuance."
The stable outlook reflects our view that Forestar's solid demand
for finished lots from builders, particularly from parent DHI, will
drive 30% revenue and 40% EBITDA growth. S&P said, "We believe
ongoing incremental land and development spending of more than $250
million will be mostly funded via funds from operations, along with
draws on cash and the revolver. In this scenario we forecast
adjusted leverage to be around 3x EBITDA."
S&P said, "We could downgrade Forestar back to 'B' if leverage
failed to remain below 4x. A possible scenario in which that could
occur is if the company spends some $400 million more on land and
development than we anticipate. Alternatively, but less likely, is
for EBITDA to fall about $100 million short (about 35%) of our
fiscal 2022 forecast.
"Although highly unlikely in the next 12 months, we could raise
Forestar's ICR to BB- in the longer term if the company were to
improve and sustain debt to EBITDA below 2x while achieving much
greater scale and diversity.
"Environmental factors are a moderately negative consideration in
our credit rating analysis of Forestar. The company is subject to a
variety of local, state, and federal statutes, ordinances, rules,
and regulations concerning health and environmental protection. We
view Forestar's ESG exposure as broadly in line with that of
industry peers."
FREIGHT-BASE SERVICES: Amends Unsecured Claims Pay Details
----------------------------------------------------------
Freight-Base Services, Inc., and Freight-Base Custom Brokers, Inc.,
submitted a Third Amended Plan of Reorganization for Small Business
dated Feb. 7, 2022.
The Debtor's Plan's financial projections show that the Debtor will
have projected disposable income of $398,000.00. Which amount will
be supplemented with either equity or financing of about
$246,083.70 in or before month 36 of the Plan.
This plan of Reorganization proposes to pay creditors of
Freight-Base Services, Inc. and Freight-Base Custom Brokers, Inc.
(the Debtor) from cash flow from operations, a small decrease in
working capital over 36 months, and either equity or financing
infusion on or before month 36.
Class 1 consists of Priority claims. Class 1 is unimpaired by this
Plan. The Illinois Department of Revenue's claim will be paid in
full as a Class 1 Priority Claims. And the Internal Revenue
Services' claim will be paid in full as to its Class 1 Priority
Claims.
Class 3 consists of Non-priority unsecured creditors. Class 3
Debtor has six nonpriority unsecured creditors: AJ Equity Group LLC
of $121,477.50; Blade Funding of $31,610.00; CFG of $41,272.00; IOU
of $13,847.00; Chase combined claims of $34,586.10 and IRS of
$20,311.05 that are impaired by this Plan and each holder of a
Class 3 claim will be paid 80 cents on the dollar over 36 months
commencing after confirmation of this Plan.
Class 4 consists of Equity security holders of the Debtor. Class 4
is impaired by this Plan and each holder of a Class 4 equity claim
will not be paid on pre-petition claims during the Plan. Since the
Plan proposes to pay far more than a liquidation would on all
claims, the equity holder retains the equity in the Reorganized
Debtor(s).
Upon Confirmation, the Debtor shall be vested with its assets,
subject only to the terms and conditions of this Plan. The Debtor
shall be entitled to continue to operate and manage its businesses
and financial affairs without further Order of this Court as set
forth in the Plan.
A full-text copy of the Third Amended Plan of Reorganization dated
Feb. 7, 2022, is available at https://bit.ly/3rE4foV from
PacerMonitor.com at no charge.
Debtors' Counsel:
Timothy M. Hughes, Esq.
Lavelle Law Ltd.
1933 N. Meacham Road, Ste. 600
Schaumburg, IL 60173
Telephone: (847) 705-7555
Email: thughes@lavellelaw.com
About Freight-Base Services
Freight-Base Services, Inc., and Freight-Base Customs Brokers, Inc.
filed voluntary petitions for relief under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ill. Lead Case No. 21-06990) on June
1, 2021. In the petition signed by Jack Groat, president,
Freight-Base Services listed under $1 million in both assets and
liabilities. Judge Donald R. Cassling oversees the cases.
The Debtors tapped Timothy M. Hughes, Esq., at Lavelle Law Ltd. as
legal counsel, and Daniel K. Anderson as accountant.
Thomas E. Springer is the Chapter 11 trustee appointed in the
Debtors' cases. The trustee is represented by Lavelle Law, Ltd.
GLOBAL CARIBBEAN: Seeks More Time to Solicit Plan Votes
-------------------------------------------------------
Global Caribbean Inc. asked the U.S. Bankruptcy Court for the
Southern District of Florida to extend the exclusivity period to
solicit acceptances for its proposed plan to exit Chapter 11
protection.
In its motion, Global Caribbean proposed to extend the exclusive
solicitation period until after the hearing on its disclosure
statement, which is scheduled for March 2.
Global Caribbean filed its disclosure statement and plan of
reorganization on Nov. 29. On Jan. 21, the company filed an
amended version of the disclosure statement after it was denied by
the court.
The exclusivity motion is on the court's calendar for Feb. 16.
About Global Caribbean
Global Caribbean, Inc. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Fla. Case No. 21-14402) on May 4,
2021, disclosing total assets of up to $500,000 and total
liabilities of up to $1 million. Judge Scott M. Grossman oversees
the case.
Brian S. Behar, Esq., at Behar, Gutt & Glazer, P.A., and Berkowitz
Pollack Brant Advisors CPAS, LLP serve as the Debtor's legal
counsel and accountant, respectively.
GOLDEN STATE: Receiver Ordered to Return Stations to Ed Stolz
-------------------------------------------------------------
Lance Venta of Radio Insight reports that a Federal Bankruptcy
Judge has ordered receiver Larry Patrick to turn 92.7 KREV
Alameda/San Francisco, 97.7 KRCK-FM Mecca/Palm Springs and 104.3
KFRH North Las Vegas back over to companies controlled by Ed
Stolz's Royce International Broadcasting.
California U.S. District Judge Jesus G. Bernal ordered the
appointment of Mr. Patrick as receiver for the three former CHRs on
July 6, 2020 authorizing him to solicit offers to sell the stations
and manage the licenses in the interim. A $6 million sale to
Christian operator VCY America was agreed to in December 2020 with
the network launching its programming on the three stations last
spring. While Bernal considered the case closed pending approval
of the sale by the FCC following multiple appeals court losses by
Stolz, Stolz filed for Chapter 11 bankruptcy protection in October
2021.
On January 31, an Emergency Joint Motion was granted by Judge
August Landis of the United States Bankruptcy Court District of
Nevada under 11 U.S.C. Sec. 543(a) stating that Mr. Patrick "shall
not make any disbursement from, or take any action in the
administration of property of the Debtors, proceeds, product,
offspring, rents, or profits of such property, or property of the
Debtors' bankruptcy estate, in Receiver's possession, custody, or
control, except such action as is necessary to preserve such
property. For clarity, avoidance of any doubt, and without
limitation, Receiver shall not take any action in an effort to
alienate or sell any or all of the radio broadcast licenses issued
to any of the Debtors by the Federal Communications Commission" and
that under 11 U.S.C. Sec. 543(b)(1) "Receiver shall deliver to
Debtors, through their managing member Edward R. Stolz, any
property of the Debtors held by or transferred to Receiver, or
proceeds, product, offspring rents, or profits of such property,
that was in Receiver's possession, custody, or control on or after
Nov. 9, 2021."
Patrick is also ordered to file an accounting of his operation of
the stations since being appointed as receiver by April 8.
In the bankruptcy filing, Stolz's companies claimed he owed
$590,340 to Patrick for receiver and attorney fees and unspecified
amounts to other lawyers, VCY America, as well as Crown Castle for
disputed transmitter site leases.
About Golden State Broadcasting
Golden State Broadcasting is a broadcasting company owned by Ed
Stolz. Golden State Broadcasting sought Chapter 11 bankruptcy
protection (Bankr. D. Nev. Case No. 21-14979) on Oct. 19, 2021. In
the petition signed by Edward R. Stolz as manager, Golden State
listed estimated assets between $10 million and $50 million and
estimated liabilities: $500,000 and $1 million. The case is
handled by Honorable Judge Natalie M. Cox. Stephen R. Harris, Esq.,
of HARRIS LAW PRACTICE LLC, is the Debtor's counsel.
GRUPO AEROMEXICO: Enters Into LOI to Assume Control of Club Premier
-------------------------------------------------------------------
Grupo Aeromexico, S.A.B. de C.V. (BMV: AEROMEX) informs that it,
together with its subsidiary Aerovías de Mexico, S.A. de C.V.
("Aerovías"), has entered into a binding letter of intent
("Binding LOI") with Aimia Holdings UK Limited and Aimia Holdings
UK II Limited (jointly, "Aimia"), to assume full control the Club
Premier (PLM) loyalty program in a transaction through which
Aeromexico will become the sole owner and operator of "Club
Premier", the leading loyalty program in Mexico. Upon closing of
the transaction, PLM will become a wholly-owned subsidiary of
Aeromexico (through Aerovías) ("Transaction").
Entry into the Binding LOI is part of the Company's Joint Plan of
Reorganization ("Plan") that was confirmed by the Bankruptcy Court
on January 28, 2022. The parties under the Binding LOI will
prepare and execute the definitive agreements for the Transaction,
reflecting the terms and conditions of the Binding LOI (the
"Definitive Agreement"), which Definitive Agreement will be subject
to customary closing conditions, including, among others,
consummation of the Plan on its Effective Date and approval of the
Transaction by the Mexican antitrust authorities. The Transaction
is expected to close within six months of the Bankruptcy Court's
order, entered on February 4, 2022, confirming the Plan.
Andres Conesa, CEO of Aeromexico stated: "The announcement is
another very exciting day for the Aeromexico family and our Club
Premier members. This is an important milestone in the Aeromexico
restructuring process and marks a major step forward as we continue
our complete transformation of the Aeromexico customer experience.
We would like to thank Aimia for their collaboration and close
partnership over the past decade. Since 2010, our joint vision has
built Club Premier into one of the leading airline loyalty programs
in Latin America. Aeromexico customers will benefit from a more
relevant and agile program that represents the best option to
reward loyalty both on the ground and in the air in Mexico and
around the world across all destinations Aeromexico serves."
Phil Mittleman, CEO of Aimia, said: "We want to thank our joint
venture partner, Aeromexico, for their collaboration in achieving
the best outcome for all stakeholders. Aeromexico has been a
valued and trusted partner since 2010, and we applaud them, and the
PLM leadership team for continuing to successfully navigate an
unprecedented period in the travel industry. We wish Aeromexico
continued success as they emerge from the bankruptcy process as a
significantly strengthened airline, supported by its loyalty
program." Mr. Mittleman added, "The substantial cash proceeds from
this transaction, combined with our existing cash, investments, and
significant operating and capital losses, will optimally position
Aimia to continue to capitalize on the best investment
opportunities globally, and deliver strong returns to our
stakeholders."
About Grupo Aeromexico
Grupo Aeromexico, S.A.B. de C.V. (BMV: AEROMEX) --
https://www.aeromexico.com/ -- is a holding company whose
subsidiaries are engaged in commercial aviation in Mexico and the
promotion of passenger loyalty programs. Aeromexico, Mexico's
global airline, has its main hub at Terminal 2 at the Mexico City
International Airport. Its destinations network features the
United States, Canada, Central America, South America, Asia and
Europe.
Grupo Aeromexico and three of its subsidiaries sought Chapter 11
protection (Bankr. S.D.N.Y. Lead Case No. 20-11563) on June 30,
2020. In the petitions signed by CFO Ricardo Javier Sanchez Baker,
the Debtors reported consolidated assets and liabilities of $1
billion to $10 billion.
The Debtors tapped Davis Polk and Wardell LLP as their bankruptcy
counsel, KPMG Cardenas Dosal S.C. as auditor, and Rothschild & Co
US Inc. and Rothschild & Co Mexico S.A. de C.V. as financial
advisor and investment banker. White & Case LLP, Cervantes Sainz
S.C. and De la Vega & Martinez Rojas, S.C., serve as the Debtors'
special counsel. Epiq Corporate Restructuring, LLC, is the claims
and administrative agent.
The U.S. Trustee for Region 2 appointed a committee to represent
unsecured creditors on July 13, 2020. The committee is represented
by Willkie Farr & Gallagher, LLP and Morrison & Foerster, LLP.
HERTZ CORP: Must Make Public Customer Theft Data
------------------------------------------------
Steven Church of Bloomberg News reports that Hertz Corp., battling
hundreds of customers who say they faced false arrests for auto
theft after they rented their cars, was ordered by a federal judge
to disclose how many renters it accuses every year.
U.S. Bankruptcy Judge Mary Walrath sided with the advocates for 220
people suing Hertz who argued court documents should be public.
In various documents filed in federal court in Wilmington, Delaware
the car renter has demanded that key details about its anti-theft
program be blocked out, contending that rivals would use the
information to tarnish the car renter's reputation.
About Hertz Corp.
Hertz Corp. and its subsidiaries -- http://www.hertz.com/--
operate a worldwide vehicle rental business under the Hertz,
Dollar, and Thrifty brands, with car rental locations in North
America, Europe, Latin America, Africa, Asia, Australia, the
Caribbean, the Middle East, and New Zealand. They also operate a
vehicle leasing and fleet management solutions business.
On May 22, 2020, The Hertz Corporation and certain of its U.S. and
Canadian subsidiaries and affiliates filed voluntary petitions for
reorganization under Chapter 11 in the U.S. Bankruptcy Court for
the District of Delaware (Bankr. D. Del. Case No. 20-11218).
Judge Mary F. Walrath oversees the cases.
The Debtors have tapped White & Case LLP as their bankruptcy
counsel, Richards, Layton & Finger, P.A., as local counsel, Moelis
& Co. as investment banker, and FTI Consulting as financial
advisor. The Debtors also retained the services of Boston
Consulting Group to assist the Debtors in the development of their
business plan. Prime Clerk LLC is the claims agent.
The U.S. Trustee for Regions 3 and 9 appointed a Committee to
represent unsecured creditors in Debtors' Chapter 11 cases. The
Committee has tapped Kramer Levin Naftalis & Frankel LLP as its
bankruptcy counsel, Benesch Friedlander Coplan & Aronoff LLP as
Delaware counsel, UBS Securities LLC as investment banker, and
Berkeley Research Group, LLC, as financial advisor. Ernst & Young
LLP provides audit and tax services to the Committee.
* * *
Hertz Global and its subsidiaries emerged from Chapter 11
bankruptcy at the end of June 2021. Hertz won approval of a Plan of
Reorganization that unimpaired all classes of creditors (who are
legally deemed to have accepted it) and was approved by more than
97% of voting shareholders. The Plan provided for the existing
shareholders to receive more than $1 billion of value.
Recovery by shareholders of close to $8 a share was made possible
after a fierce competition among bidders for control in the
company. Initial offers from potential bidders for Hertz in its
bankruptcy offered nothing for equity. Hertz in May 2021 selected
investment firms Knighthead Capital Management LLC and Certares
Management LLC, joined by joined by other investors including
Apollo Global Management Inc. and a group of existing shareholders,
as the winning bidders for control of the bankrupt company. A
rival group that included Centerbridge Partners LP, Warburg Pincus
LLC and Dundon Capital Partners LLC was outbid at auction.
Hertz's Plan eliminated over $5 billion of debt, including all of
Hertz Europe's corporate debt, and will provide more than $2.2
billion of global liquidity to the reorganized Company. Hertz also
emerged with (i) a new $2.8 billion exit credit facility consisting
of at least $1.3 billion of term loans and a revolving loan
facility, and (ii) an $7 billion of asset-backed vehicle financing
facility, each on favorable terms.
IQ FORMULATIONS: March 16 Disclosure Statement Hearing Set
----------------------------------------------------------
Judge Scott M. Grossman has entered an order within which March 16,
2022 at 2:30 p.m. at the United States Bankruptcy Court, 299 E.
Broward Blvd. Courtroom: 308, Fort Lauderdale, FL 33301 is the
hearing to consider approval of the disclosure statement of Debtor
IQ Formulations, LLC.
In addition, March 9, 2022 is the deadline for objections to
Amended Disclosure Statement.
A copy of the order dated Feb. 7, 2022, is available at
https://bit.ly/35WB489 from PacerMonitor.com at no charge.
About IQ Formulations
IQ Formulations, LLC is a Tamarac, Fla.-based company that operates
in the dairy product manufacturing industry. It conducts business
under the name Metabolic Nutrition.
IQ Formulations filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No.
21-15922) on June 18, 2021. Jay Cohen, chief executive officer and
president, signed the petition. At the time of the filing, the
Debtor disclosed total assets of up to $50,000 and total
liabilities of up to $10 million. Judge Scott M. Grossman presides
over the case. Behar, Gutt & Glazer, P.A. serves as the Debtor's
legal counsel.
JOYFUL CARE: United States Trustee Says Disclosures Inadequate
--------------------------------------------------------------
Peter C. Anderson, the United States Trustee for Region 16 (the
"U.S. Trustee"), objects to the proposed Disclosure Statement
Describing Plan of Reorganization ("DS") of Debtor Joyful Care
Caregiving Services, Inc.
The United States Trustee asserts that the DS fails to contain
adequate information upon which the parties in interest will be
able to make an informed judgment about the Plan as required by 11
U.S.C. §1125, for the following reasons:
* First, the DS fails to make any distinction as to which
portion of the IRS and FTB tax claims are priority versus general
unsecured.
* Second, the DS fails to provide a reserve for the $421,040
disputed claim of Hermina Estes.
* Third, the DS fails to adequately explain how the Debtor
will bridge the gap between its actual performance during this
bankruptcy case and its plan payment projections.
* Fourth, the DS fails to adequately define the Effective
Date.
* Fifth, the Plan itself contains provisions relating to
Discharge, Injunction and Limitation of Liability that are
inconsistent with the Bankruptcy Code.
A full-text copy of the United States Trustee's objection dated
Feb. 7, 2022, is available at https://bit.ly/35SctRU from
PacerMonitor.com at no charge.
Attorney for the U.S. Trustee:
Michael Hauser (Bar No. 140165)
Ronald Reagan Federal Building & United States Courthouse
411 West Fourth Street, Suite 7160
Santa Ana, CA 92701-8000
Telephone: (714) 338-3400
Facsimile: (714) 338-3421
Email: Michael.Hauser@usdoj.gov
About Joyful Care Caregiving Services
Joyful Care Caregiving Services, Inc., sought protection for relief
under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No.
21-11648) on June 30, 2021, disclosing total assets of up to
$50,000 and total liabilities of up to $500,000. Judge Erithe A.
Smith presides over the case. Khang & Khang, LLP, is the Debtor's
legal counsel.
LANDMARK 99: Case Summary & Nine Unsecured Creditors
----------------------------------------------------
Debtor: Landmark 99 Enterprises, Inc.
d/b/a Wilma & Frieda's
11322 Camarillo Street, #103
Toluca Lake, CA 91602
Business Description: The Debtor is part of the restaurants
industry.
Chapter 11 Petition Date: February 9, 2022
Court: United States Bankruptcy Court
Central District of California
Case No.: 22-10148
Judge: Hon. Victoria S. Kaufman
Debtor's Counsel: Michael Jay Berger, Esq.
LAW OFFICES OF MICHAEL JAY BERGER
9454 Wilshire Boulevard, 6th Floor
Beverly Hills, CA 90212
Tel: (310) 271-6223
Fax: (310) 271-9805
E-mail: michael.berger@bankruptcypower.com
Estimated Assets: $50,000 to $100,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Kelly McFall as owner/CEO.
A full-text copy of the petition containing, among other items, a
list of the Debtor's nine unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/CCBBD3Y/Landmark_99_Enterprises_Inc_dba__cacbke-22-10148__0001.0.pdf?mcid=tGE4TAMA
LANNETT INC: S&P Downgrades ICR to 'CCC+' on Weaker Outlook
-----------------------------------------------------------
S&P Global Ratings lowered its issuer-level rating on Lannett Inc.
to 'CCC+' from 'B-'. The outlook is negative.
At the same time, S&P lowered its issue-level ratings on the
company to 'B-'. The recovery ratings are unchanged.
S&P said, "The negative outlook reflects the possibility of another
downgrade if we believed that Lannett were likely to consider a
distressed exchange offer or sub-par redemption. This could occur
if we expected continued pricing erosion within its key products or
delays in new product launches to meaningfully reduce FOCF
prospects and liquidity.
"Significant price erosion on Lannett's products due to competitive
pressures contributes to our expectation for FOCF deficits through
fiscal 2023 and our view that the company's capital structure is
unsustainable over the long term.Lannett continues to face
increased risks to its ability to strengthen the portfolio amid a
very competitive pricing environment for its generic products, with
limited prospects of improvement over the next few quarters. We
expect this pricing erosion, combined with the company's ongoing
efforts to optimize its product portfolio, to result in a revenue
decline of 25%-30% and break-even to negative $10 million of
adjusted EBITDA in fiscal 2022. Under these assumptions, we expect
the company to generate an FOCF deficit of $40 million-$50 million
in fiscal 2022. We believe this represents a trough year for the
company and anticipate revenue, EBITDA, and FOCF generation to
gradually improve over the subsequent two years. We expect growth
in earnings and cash flow generation over the next couple of years
to come primarily from cost-saving initiatives and Advair Diskus,
which we assume will launch during fiscal 2023. Lannett's highly
anticipated biosimilar insulin glargine and insulin aspart launches
are still several years away, in our view. Despite earnings
improvement beyond fiscal 2022, we expect annual FOCF deficits
through fiscal 2024 to reduce the company's available liquidity and
increase the likelihood that the company could consider a
distressed exchange or sub-par redemption within the next 12 months
if operating conditions do not improve.
"The company's liquidity position and long-dated maturity profile
could buy it time and potentially avoid a restructuring scenario.
Lannett refinanced its debt last year and has no meaningful debt
maturities until 2026, and available liquidity of about $136
million as of Dec. 31, 2021 (including just under $100 million of
cash). While we expect FOCF deficits over the next couple of years
to meaningfully erode the company's cash position, we acknowledge
that it could allow the company to endure this challenging period
until annual FOCF generation turns positive, potentially due to an
improvement in the competitive landscape or revenue generation from
new product launches.
"The negative outlook reflects our view that Lannett could pursue a
distressed exchange or other debt restructuring within the next 12
months to reduce its debt obligations, which we consider
unsustainable in the long term. In our view, key risks include
continued pricing erosion within its key products or delays in new
product launches that could meaningfully reduce FOCF prospects and
liquidity.
"We could lower our rating on Lannett within the next 12 months if
the company announced a distressed exchange or we considered such
an event to be highly likely. This could occur if we expected
continued pricing erosion within its key products or delays in new
product launches to meaningfully reduce FOCF prospects and
liquidity.
"We could revise the outlook to stable if we saw a lower likelihood
of a distressed exchange or debt restructuring within the next 12
months. This could occur if the pricing environment for its key
generic products improved, contributing to our expectation for near
break-even or positive FOCF generation."
ESG credit indicators: E-2, S-2, G-2
S&P said, "Our ESG credit indicators are unchanged as a result of
this rating action. ESG factors are an overall neutral
consideration in our credit rating analysis of Lannett Co. Inc.
Lannett was named, along with dozens of other generic drug
companies, in an industrywide price-fixing scheme in several
consolidated class-action lawsuits and two lawsuits filed by the
attorneys general of approximately 41 states. Lannett is directly
implicated in six of the 114 drug products identified by the state
attorneys general but has not had any charges brought against it in
the U.S. Department of Justice's industrywide antitrust
investigation. We expect the civil cases to take many years to
resolve and do not forecast any cash flow impact in the near
term."
LINDERIAN CO: Wins Interim Cash Collateral Access
-------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Texas, Tyler
Division, has authorized The Linderian Company Ltd. to use up to
$147,534 to pay payroll plus the required amount to pay all
required taxes and withholdings from both employer and employee,
and up to $87,958 in additional expenses, less the LDI payroll
amount of $500 and associated taxes for Greg Sechrist within the
line item of LDI Management, which amount has been waived by Mr.
Sechrist.
As adequate protection for the Debtor's use of cash collateral,
Internal Revenue Service, Fox Capital Group, Inc. d/b/a Fox
Business Funding, EBF Holdings, LLC d/b/a Everest Business Funding,
and Cloudfund LLC are granted a general and continuing lien upon
and security interest in and to all of the Debtor's right, title,
and interests in, to, and against the Secured Creditors'
collateral, acquired by the Debtor after the Petition Date.
As part of the adequate protection provided to the Secured
Creditors, the Debtor will submit to the Secured Creditors copies
of all monthly reports required to be made to the U.S. Trustee, all
filings made by the Debtor with the Court, and all notices of
hearings in the Reorganization Case. The Debtor will also give the
Secured Creditors proof of insurance coverage and maintain same on
the tangible portions of the collateral.
The Court says the relief granted by the Interim Order will become
a final order if no objection to the Motion is filed by February
15, 2022. In the event a final hearing on the Motion is necessary,
the hearing will be on February 22 at 9:30 a.m.
A copy of the order is available at https://bit.ly/33bNBUh from
PacerMonitor.com.
About The Linderian Company, Ltd.
The Linderian Company, Ltd. operates a nursing care facility in
Longview, Texas. The Debtor sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. E.D. Tex. Case No. 22-60024) on
January 19, 2022. In the petition signed by Greg Sechrist, managing
partner, the Debtor disclosed up to $1 million in assets and up to
$10 million in liabilities.
Judge Joshua P. Searcy oversees the case.
Mark A. Castillo, Esq., at Curtis Castillo PC is the Debtor's
counsel.
LTL MANAGEMENT: Claimants Group Fights to Keep LTL in Bankruptcy
----------------------------------------------------------------
James Nani of Bloomberg Law reports that a group of asbestos injury
victims is opposing calls to toss the bankruptcy of a Johnson &
Johnson spinoff that was created to resolve thousands of lawsuits
over its talc-based baby powder products.
Allowing the spinoff, LTL Management LLC, to remain in Chapter 11
is the best way to bring a fast and equitable resolution to the
litigation, the talc claimants told U.S. Bankruptcy Judge Michael
B. Kaplan on Tuesday, February 8, 2022.
The claimants, a proposed class of Canadian women who say they
developed ovarian cancer from J&J products, said LTL Management's
bankruptcy should continue even if it was filed in bad faith.
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.
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.
An official committee of talc claimants was formed in the Debtor's
Chapter 11 case on Nov. 9, 2021. On Dec. 24, 2021, the U.S. Trustee
for Regions 3 and 9 reconstituted the talc claimants' committee and
appointed two separate committees: (i) the official committee of
talc claimants I, which represents ovarian cancer claimants, and
(ii) the official committee of talc claimants II, which represents
mesothelioma claimants.
The official committee of talc claimants I tapped Genova Burns LLC,
Brown Rudnick LLP, Otterbourg PC and Parkins Lee & Rubio LLP as its
legal counsel. Meanwhile, the official committee of talc claimants
II is represented by the law firms of Cooley LLP, Bailey Glasser
LLP, Waldrep Wall Babcock & Bailey PLLC, Massey & Gail LLP, and
Sherman Silverstein Kohl Rose & Podolsky P.A.
LTL MANAGEMENT: Exclusivity Period Extended to May 12
-----------------------------------------------------
LTL Management, LLC has been given more time to file its plan for
emerging from Chapter 11 protection.
Judge Michael Kaplan of the U.S. Bankruptcy Court for the District
of New Jersey extended the exclusivity periods for LTL to file a
Chapter 11 plan and to solicit acceptances for the plan to May 12
and July 11, respectively.
The extension of the exclusivity periods is without prejudice to
LTL's right to seek further extension and the right of any party to
oppose, according to the court order signed by Judge Kaplan on Feb.
7.
LTL had requested the court to extend the exclusive filing period
and the solicitation period to June 13 and Aug. 10, respectively.
However, Arnold & Itkin, LLP objected, saying the court should
limit the extension of the exclusivity periods in light of the
pending motions to dismiss LTL's Chapter 11 case.
The court is currently scheduled to hear the motions to dismiss at
a multi-day evidentiary hearing starting on Feb. 14.
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.
An official committee of talc claimants was formed in the Debtor's
Chapter 11 case on Nov. 9, 2021. On Dec. 24, 2021, the U.S.
Trustee for Regions 3 and 9 reconstituted the talc claimants'
committee and appointed two separate committees: (i) the official
committee of talc claimants I, which represents ovarian cancer
claimants, and (ii) the official committee of talc claimants II,
which represents mesothelioma claimants.
The official committee of talc claimants I tapped Genova Burns LLC,
Brown Rudnick LLP, Otterbourg PC and Parkins Lee & Rubio LLP as its
legal counsel. Meanwhile, the official committee of talc claimants
II is represented by the law firms of Cooley LLP, Bailey Glasser
LLP, Waldrep Wall Babcock & Bailey PLLC, Massey & Gail LLP, and
Sherman Silverstein Kohl Rose & Podolsky P.A.
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.
LTL MANAGEMENT: MDL Court Won't Tackle Talc Committee Motions
-------------------------------------------------------------
MedTruth reports that the federal judge in charge of the
multidistrict litigation (MDL) against Johnson & Johnson's
asbestos-tainted talcum products has declined to decide issues
arising from the bankruptcy of the company's subsidiary LTL
Management. This decision sharply limits what talc plaintiffs can
do to continue to pursue justice while LTL Management settles its
bankruptcy affairs, according to Law360.
On Jan. 21, 2022, Judge Freda L. Wolfson released a 14-page
decision, stating that it would be improper to take up the decision
over whether LTL Management can legally extend its bankruptcy
protections to other third-party company affiliates. These
bankruptcy protections are currently preventing the talc liability
lawsuits from proceeding.
The talc MDL, comprised of more than 38,000 lawsuits from people
claiming that J&J's talcum powder caused their ovarian cancer, has
been stalled after J&J chose to use a business loophole known as
the "Texas two-step" to separate all of their talc liability into a
new company and then force that company into bankruptcy. Now the
new company, LTL Management, is receiving the benefit of a
bankruptcy process known as a "stay."
This stay pauses all collections efforts against an entity,
including lawsuits, until the bankruptcy has been concluded. This
stay protection has also been extended to all of LTL Management's
affiliates, including its parent company Johnson & Johnson.
Plaintiff's attorneys critical of this maneuver have accused J&J of
exploiting an obscure business strategy and using the bankruptcy
system in bad faith in order to prevent more talc lawsuits from
going to trial.
In protest of these actions, a committee made up of talc
plaintiff's attorneys attempted to compel Judge Wolfson to restrict
the broad protections of the stay through a legal motion called a
withdrawal of reference. This procedure asks a judge to weigh in
on a discrete, finite issue separate from the procedure as a whole.
LTL Management's attorneys argued against this withdrawal, saying
that the issues of the automatic stay and its scope are
"quintessential bankruptcy issues."
Judge Wolfson agreed with LTL Management that these issues were the
core of the bankruptcy proceeding and therefore declined to
overreach into deciding the issues of the bankruptcy court. With
Judge Wolfson's refusal, a series of legal maneuvers may finally
begin to conclude.
Initially, the plaintiffs asked that the entire Chapter 11
bankruptcy proceeding be thrown out because it was conducted in bad
faith. The North Carolina judge who heard their motion declined to
pass judgment, citing the case's impending transfer to New Jersey.
On Jan 10, 2022, New Jersey Bankruptcy Judge Micheal Kaplan delayed
his judgment of the bad faith question pending Judge Wolfson's
withdrawal of reference decision. Now that Judge Wolfson has made
her judgment, Judge Kaplan may be free to rule on the legitimacy of
LTL Management's bankruptcy claims.
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.
An official committee of talc claimants was formed in the Debtor's
Chapter 11 case on Nov. 9, 2021. On Dec. 24, 2021, the U.S. Trustee
for Regions 3 and 9 reconstituted the talc claimants' committee
and
appointed two separate committees: (i) the official committee of
talc claimants I, which represents ovarian cancer claimants, and
(ii) the official committee of talc claimants II, which represents
mesothelioma claimants.
The official committee of talc claimants I tapped Genova Burns LLC,
Brown Rudnick LLP, Otterbourg PC and Parkins Lee & Rubio LLP as its
legal counsel. Meanwhile, the official committee of talc claimants
II is represented by the law firms of Cooley LLP, Bailey Glasser
LLP, Waldrep Wall Babcock & Bailey PLLC, Massey & Gail LLP, and
Sherman Silverstein Kohl Rose & Podolsky P.A.
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.
MALLINCKRODT PLC: Acthar Claimants May Proceed with Appeal
----------------------------------------------------------
The case styled as ACTHAR INSURANCE CLAIMANTS, Appellant, v.
MALLINCKRODT PLC, et al., Appellees, C.A. No. 21-1780-LPS (D.
Del.), is an appeal from a December 6, 2021 Order of Bankruptcy
Court Judge John T. Dorsey sustaining the Debtors' objection to
certain Achthar-Related Administrative Claims, an oral Bench Ruling
issued on the same day, and a December 21, 2021 written opinion and
final order enter in connection with the Order and Bench Ruling.
Appellants include Attestor Limited and its affiliate entities
including Avon Holding I, LLC and Humana Inc. Appellees are
Mallinckrodt plc and its affiliated debtors and
debtors-in-possession.
The parties were not previously or presently involving in mediation
or other alternative dispute resolution process. Based on the
nature of the relief granted by the Bankruptcy Court and the issues
on appeal, the parties do not believe that mediation would be
fruitful in this appeal, and request that this matter be removed
from mandatory mediation.
Appellees proposed a briefing schedule to Appellants. Thereafter,
Appellants advised Appellees they intend to seek certification for
direct review by the Third Circuit. They also take the position
that this Court not set a briefing schedule while that request in
pending. Although Appellees intend to oppose certification, they
are willing to agree that this Court need not setting a briefing
schedule until certification is decided.
Therefore, Chief Magistrate Judge Mary Pat Thynge of the United
States District Court for the District of Delaware recommended
that, pursuant to paragraph 2(a) of the Procedures to Govern
Mediation of Appeals from the United States Bankruptcy Court for
this District and 28 U.S.C. Section 636(b), this matter be
withdrawn from the mandatory referral for mediation and proceed
through the appellate process of this Court. No objections to this
Recommendation pursuant to 28 U.S.C. Section 636(b)(1)(B), FED. R.
CIV. P. 72(a) and D. DEL. LR 72.1 are anticipated because the
Recommendation is consistent with the parties request.
A full-text copy of the January 27, 2022 Recommendation is
available at https://tinyurl.com/4796kw2r from Leagle.com.
About Mallinckrodt PLC
Mallinckrodt -- http://www.mallinckrodt.com/-- is a global
business consisting of multiple wholly-owned subsidiaries that
develop, manufacture, market and distribute specialty
pharmaceutical products and therapies. The company's Specialty
Brands reportable segment's areas of focus include autoimmune and
rare diseases in specialty areas like neurology, rheumatology,
nephrology, pulmonology and ophthalmology; immunotherapy and
neonatal respiratory critical care therapies; analgesics; and
gastrointestinal products. Its Specialty Generics reportable
segment includes specialty generic drugs and active pharmaceutical
ingredients.
On Oct. 12, 2020, Mallinckrodt plc and certain of its affiliates
sought Chapter 11 protection in Delaware (Bankr. D. Del. Lead Case
No. 20-12522) to seek approval of a restructuring that would reduce
total debt by $1.3 billion and resolve opioid-related claims
against them.
Mallinckrodt plc disclosed $9,584,626,122 in assets and
$8,647,811,427 in liabilities as of Sept. 25, 2020.
Judge John T. Dorsey oversees the cases.
The Debtors tapped Latham & Watkins LLP and Richards, Layton &
Finger P.A. as their bankruptcy counsel; Arthur Cox and Wachtell,
Lipton, Rosen & Katz as corporate and finance counsel; Ropes & Gray
LLP as litigation counsel; Torys LLP as CCAA counsel; Guggenheim
Securities LLC as investment banker; and AlixPartners LLP as
restructuring advisor. Prime Clerk, LLC, is the claims agent.
The official committee of unsecured creditors retained Cooley LLP
as its legal counsel, Robinson & Cole LLP as co-counsel, and Dundon
Advisers LLC as its financial advisor.
On Oct. 27, 2020, the U.S. Trustee for Region 3 appointed an
official committee of opioid related claimants. The OCC tapped Akin
Gump Strauss Hauer & Feld LLP as its lead counsel, Cole Schotz as
Delaware co-counsel, Province Inc. as financial advisor, and
Jefferies LLC as investment banker.
The confirmation trial for the Debtors' First Amended Joint Plan of
Reorganization began in November 2021.
MALLINCKRODT PLC: Rockford May Proceed with Appeal from Injunction
------------------------------------------------------------------
The case styled CITY OF ROCKFORD, ILLINOIS, et al., Appellants, v.
MALLINCKRODT PLC, et al., Appellees, C.A. No. 21-1746-LPS (D.
Del.), is an appeal from a November 29, 2021 order of The Honorable
John T. Dorsey that extended for an additional 90 days an existing
preliminary injunction of litigation against certain non-Debtors.
Pursuant to this Second Extension Order and absent further
extension, the injunction will expire on February 28, 2022.
Under the Initial Order by the Bankruptcy Court on December 4,
2020, an injunction was entered for 270 days. In response to
Appellants' leave to appeal the Initial Order, the District Court
found the Order was not final, and Appellants did not meet the
standards for interlocutory appeal.
Prior to the expiration of the Initial Order, the Debtors sought
and obtained a first 90-day extension of it, which extended the
injunction up to and through November 29, 2021. Appellants sought
to appeal this Order, but did not seek leave for interlocutory
appeal. Thereafter, the judge recommended that the proceedings be
withdrawn from mandatory mediation. The Court withdrew the matter
from mandatory mediation, but did not set a briefing schedule. The
First Extension Order has now been superseded by the Second
Extension Order.
As to the present appeal, Appellants have not sought leave for
interlocutory appeal. However, the parties agree that mediation
would not be fruitful and request the matter be removed from
mandatory mediation. Where the parties disagree is on the
appropriate briefing schedule.
Appellants argue that the extension of the preliminary injunction
for the additional 90 days operates as a permanent injunction given
the procedural status of the case, that is, the plan confirmation
is ongoing and that the Amended Plan, as proposed, converts all
existing injunctions into permanent ones through the Effective
Date, thereby removing any "preliminary" nature, making the
Extension Order a final order. Therefore, Appellants had no need to
seek leave to file an interlocutory appeal, and Appellees have not
filed a motion to dismiss. Appellants propose the following
briefing schedule:
Appellants' Opening Brief - February 1, 2022
Appellees' Response Brief - March 4, 2022
Appellants' Reply Brief - March 18, 2022
Appellees maintain that setting a briefing schedule at this stage
is premature. They also do not agree that this appeal is properly
before the Court, in light of its prior holding of the appeal on
the Initial Order making the Second Extension not a final order.
They contend that Appellants are required to request leave for
interlocutory appeal, and have not done so. Further, they argue
that the Debtors' plan of reorganization does not contemplate
conversion of the Extension Order into permanent injunction. As of
January 4, 2022, the Plan had not been confirmed and cannot have
any effect on the Extension Order, and therefore the appeal from
this order is not properly before this Court.
Appellees contend that if the Court declines to summarily dismiss
this appeal, the appeal should be held in abeyance pending the
developments in the Bankruptcy Court. As of January 4, 2022, the
Bankruptcy Court was holding multi-day closing arguments relating
to confirmation of the Plan and thereafter will need time to render
a decision, which will likely affect the parties' positions and
arguments on this appeal. Moreover, Appellants have sought to
withdraw all of their proofs of claim in the Debtors' cases, which,
if successful, will likely alter the parties' position and
arguments on this appeal.
Accordingly, Chief Magistrate Judge Mary Pat Thynge of the United
States District Court for the District of Delaware recommended
that, pursuant to paragraph 2(a) of the Procedures to Govern
Mediation of Appeals from the United States Bankruptcy Court for
this District and 28 U.S.C. Section 636(b), this matter be
withdrawn from the mandatory referral for mediation and proceed in
some fashion through the appellate process of this Court. Through
this Recommendation, the parties are advised of their right to file
objections to this Recommendation pursuant to 28 U.S.C. Section
636(b)(1)(B), FED. R. CIV. P. 72(a) and D. DEL. LR 72.1.
A full-text copy of the Recommendation dated January 27, 2022, is
available at https://tinyurl.com/yc55zeyz from Leagle.com.
About Mallinckrodt PLC
Mallinckrodt -- http://www.mallinckrodt.com/-- is a global
business consisting of multiple wholly-owned subsidiaries that
develop, manufacture, market and distribute specialty
pharmaceutical products and therapies. The company's Specialty
Brands reportable segment's areas of focus include autoimmune and
rare diseases in specialty areas like neurology, rheumatology,
nephrology, pulmonology and ophthalmology; immunotherapy and
neonatal respiratory critical care therapies; analgesics; and
gastrointestinal products. Its Specialty Generics reportable
segment includes specialty generic drugs and active pharmaceutical
ingredients.
On Oct. 12, 2020, Mallinckrodt plc and certain of its affiliates
sought Chapter 11 protection in Delaware (Bankr. D. Del. Lead Case
No. 20-12522) to seek approval of a restructuring that would reduce
total debt by $1.3 billion and resolve opioid-related claims
against them.
Mallinckrodt plc disclosed $9,584,626,122 in assets and
$8,647,811,427 in liabilities as of Sept. 25, 2020.
Judge John T. Dorsey oversees the cases.
The Debtors tapped Latham & Watkins LLP and Richards, Layton &
Finger P.A. as their bankruptcy counsel; Arthur Cox and Wachtell,
Lipton, Rosen & Katz as corporate and finance counsel; Ropes & Gray
LLP as litigation counsel; Torys LLP as CCAA counsel; Guggenheim
Securities LLC as investment banker; and AlixPartners LLP as
restructuring advisor. Prime Clerk, LLC, is the claims agent.
The official committee of unsecured creditors retained Cooley LLP
as its legal counsel, Robinson & Cole LLP as co-counsel, and Dundon
Advisers LLC as its financial advisor.
On Oct. 27, 2020, the U.S. Trustee for Region 3 appointed an
official committee of opioid related claimants. The OCC tapped Akin
Gump Strauss Hauer & Feld LLP as its lead counsel, Cole Schotz as
Delaware co-counsel, Province Inc. as financial advisor, and
Jefferies LLC as investment banker.
The confirmation trial for the Debtors' First Amended Joint Plan of
Reorganization began in November 2021.
MARINER SEAFOOD: Principal Has Personal Liability to Hellofresh
---------------------------------------------------------------
In the appellate case, GROCERY DELIVERY E-SERVICES USA, INC. DOING
BUSINESS AS HELLOFRESH, Plaintiff-Respondent, v. JOHN P. FLYNN ALSO
KNOWN AS "JACK FLYNN", Defendant-Appellant, Index No. 655837/20,
Appeal No. 15174, Case No. 2021-02153 (N.Y. App. Div.), the
Appellate Division of the Supreme Court of New York, First
Department, unanimously affirmed, with costs, the order of the
Supreme Court, New York County (Margaret Chan, J.), entered on June
3, 2021, which denied defendant's motion to dismiss the complaint
pursuant to CPLR 3211(a)(7).
Grocery Delivery E-Services USA, Inc., doing business as
Hellofresh, entered into an agreement in December 2017 with Mariner
Seafood, LLC, under which Mariner would supply salmon to it. John
P. Flynn is Mariner's manager, president, and, until October 13,
2020, sole principal. Mariner also agreed to carry product recall
insurance and to name Hellofresh as an additional insured under the
policy. Mariner obtained the policy, but did not name Hellofresh as
an additional insured.
In November 2018, Mariner informed plaintiff of a listeria
contamination of its products, causing plaintiff to recall more
than 32,000 units. As a result, plaintiff sustained more than
$500,000 in losses. Defendant asked plaintiff to forward its loss
claim to Mariner's insurance company, which it did, and the
insurance company paid Mariner on the claim, but Mariner never paid
plaintiff. Based on allegations that defendant converted the
insurance proceeds either individually or on behalf of Mariner,
plaintiff brought an action against Mariner in February 2020 for
breach of contract and conversion. Mariner defaulted and on
September 14, 2020, it filed for Chapter 11 bankruptcy. Shortly
thereafter, plaintiff commenced this action against defendant for
conversion.
The Appellate Division of the Supreme Court of New York, First
Department, finds that the complaint states a cause of action for
conversion by alleging that the proceeds paid by the insurance
company to Mariner for plaintiff's claim constitutes a specific,
identifiable fund, that plaintiff has a superior right of
possession to the fund, and that defendant interfered with
plaintiff's right of possession. Plaintiff's superior right of
possession is based not on Mariner's contractual obligation to make
it whole following its recall losses but on the equitable lien it
has over the insurance proceeds to the extent of its loss claim due
to Mariner's failure to abide by its agreement to name plaintiff as
an additional insured on the product recall insurance policy, the
Appellate Court holds. Mariner had a specific obligation to turn
over that fund to plaintiff, and defendant had an obligation not to
interfere with plaintiff's right to the fund, the Court said.
Because plaintiff alleges that defendant took actions that brought
about the conversion of its property, defendant may be subject to
personal liability, the Appellate Court holds. The commingling of
the fund with Mariner's general corporate accounts does not render
the conversion claim insufficient, because it was defendant and
Mariner who commingled the funds, the Court adds. Nor is
plaintiff's conversion claim against defendant duplicative of its
breach of contract claim against Mariner.
A full-text copy of the Appellate Court's decision dated January
27, 2022, is available at https://tinyurl.com/2p8utwsr from
Leagle.com.
Handel & Carlini, LLP, Poughkeepsie (Anthony C. Carlini, Jr. of
counsel), for appellant.
Lupkin PLLC, New York (Michael B. Smith of counsel), for
respondent.
About Mariner Seafood LLC
Mariner Seafood, LLC, is in the business of buying and selling
seafood inventory from third party importers to domestic and
Canadian seafood processors and food service distributors.
Mariner Seafood sought Chapter 11 protection (Bankr. D. Mass. Case
No. 20-11870) on Sept. 14, 2020. In the petition signed by John P.
Flynn, president and manager, the Debtor was estimated to have
assets and liabilities in the range of $10 million to $50 million.
The Debtor tapped Christopher M. Condon, Esq., at Murphy & King,
Professional Corp., as counsel.
MEN'S WEARHOUSE: S&P Affirms 'CCC+' ICR, Outlook Negative
---------------------------------------------------------
S&P Global Ratings affirmed all its ratings on specialty apparel
retailer The Men's Wearhouse LLC (TMW), including its 'CCC+' issuer
credit rating.
The negative outlook reflects S&P's expectation that TMW's
operating performance and competitive standing could face an uneven
recovery path.
TMW's performance may remain uncertain over the next few quarters.
TMW participates in the highly competitive and widely fragmented
men's specialty apparel retail segment, which has experienced
performance volatility because of increased competition as well as
changing consumer preferences. S&P said, "We have seen demand
recovery for apparel and accessories across retail in 2021 and
TMW's fiscal third-quarter sales demonstrates the company is on a
path of recovery. However, the likelihood that customers are
currently willing to refresh their wardrobes for formalwear remains
uncertain. We still believe TMW faces operating pressure as the
COVID-19 environment continues to weigh down sales and secular
headwinds persist, leading to unsettled recovery prospects."
S&P said, "We expect 2022 revenue to remain lower than fiscal 2019
levels, reflecting the ongoing recovery and the impact of locations
closed through the company's bankruptcy process. We believe pent-up
demand and measured inventory levels have allowed the company to
reduce promotional activity, improving merchandise margins.
Combining with continued efforts of managing operating costs, we
now expect S&P Global Ratings-adjusted EBITDA margins of about 11%
by year-end 2022."
TMW has improved its liquidity position since the bankruptcy
emergence. TMW had a sizable draw on the asset-based lending (ABL)
revolving credit facility following its bankruptcy emergence. In
addition, the company upsized its priority term loan by $27.5
million and issued $55 million convertible notes in March 2021 to
bolster its liquidity. The company fully paid down the ABL during
the third quarter ended Oct. 30, 2021 with cash flows. In S&P's
view, this provides the company with better liquidity cushion to
focus on efforts to improve performance and to absorb potentially
volatile performance in the post-COVID-19 environment.
Secular shifts and potential fluctuation in consumer demand could
lead to volatile near-term performance. S&P said, "Although TMW is
a recognized brand and is improving its omnichannel and rental
business presence, we believe its market position continues to be
vulnerable given the challenges it faces in the narrow men's
specialty apparel sector. We anticipate the operating environment
will remain highly competitive as TMW competes with department
stores, off-price, and increasing online vendors that are taking
more market share from specialty players. As fashion trends
continue to evolve, including a widespread adoption of the hybrid
work model and further casualization of the workplace, we believe
consumers may spend less on traditional suits and formalwear. As a
result, we continue to believe TMW depends on favorable market
conditions to meet its financial commitments and generate
sufficient cash to maintain operations, contributing to our view
that the capital structure might be unsustainable. We recognized
that management has executed a variety of initiatives to improve
its operation efficiency and merchandise offerings to cater
customer needs."
The negative outlook reflects S&P's expectation that TMW's
operating performance and competitive standing will continue to be
uncertain and face an uneven recovery path.
S&P could lower its rating on TMW if:
-- S&P believes the likelihood of an event of default in the next
12 months has materially increased; or
-- The speed and magnitude of its sales and EBITDA recovery
underperform our expectations and lead to sustained cash burn and
materially weaker liquidity.
S&P could raise the rating on TMW if:
-- S&P sees a record of sales and EBITDA recovery, leading to
sustained positive free operating cash flow (FOCF) in the next
year; and
-- S&P no longer view the capital structure as unsustainable.
MESSIAH'S GLASS: Seeks Cash Collateral Access
---------------------------------------------
Messiah's Glass, Inc. asks the U.S. Bankruptcy Court for the
District of Colorado for authority to use cash collateral and
provide adequate protection.
The Debtor must use cash to continue its business operations
post-petition and maintain its inventory.
Pre-petition, the Debtor was engaged in litigation initiated by the
former business owner, Patrick Dye, over an alleged default under a
Promissory Note by and between the Debtor and Mr. Dye. Despite the
Debtor's best efforts to negotiate a settlement of the claims with
Mr. Dye, the Debtor was unable to reach a resolution, and the
litigation proceeded to trial in the District Court for El Paso
County, Colorado, following which a judgment was entered against
the Debtor and its principals, John and Denise Groenhof.
Faced with the possibility of aggressive collection actions by Mr.
Dye, combined with the need to restructure its operations to ensure
continued profitability, the Debtor filed its voluntary petition
pursuant to Chapter 11, Subchapter V of the Bankruptcy Code to
focus on its core operations, restructure its obligations, and
remain a going concern.
In 2006, the Debtor entered into a Promissory Note with Patrick
Dye. In connection with the Promissory Note, Mr. Dye filed a UCC-1
Financing Statement on or about July 3, 2006, purporting to perfect
a secured interest in substantially all of the Debtor's assets. The
Debtor is investigating the claim to determine the validity of the
secured interest.
In or around 2015, the Debtor entered into a loan with Colorado
East Bank & Trust secured by substantially all of the assets of the
Debtor. Colorado East Bank & Trust duly filed a UCC-1 Financing
Statement perfecting its interest in the Debtor's assets, including
receivables and cash in accounts on December 24, 2015.
The Debtor's books and records reflect that the total amount owed
to TBK Bank, successor by merger to Colorado East Bank & Trust, is
approximately $465,158 as of the Petition Date.
As adequate protection, the Debtor proposes to provide Secured
Creditors with a post-petition lien on all post-petition accounts
receivable and contracts and income derived from the operation of
the business and assets, to the extent that the use of the cash
results in a decrease in the value of such duly perfected interest
in the collateral.
The Debtor will only use cash collateral in accordance with the
Budget, subject to a deviation on line item expenses not to exceed
15% without the prior agreement of the Secured Creditors.
A copy of the motion is available at https://bit.ly/3swHzGA from
PacerMonitor.com.
About Messiah's Glass, Inc.
Messiah's Glass, Inc. is a Colorado corporation that provides glass
repair and replacement services to automotive and residential
customers in Colorado Springs and surrounding areas. MG is wholly
owned by John and Denise Groenhof.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Co. Case No. 22-10399) on February 8,
2022. In the petition signed by John Groenhof, president, the
Debtor disclosed up to $50,000 in assets and up to $1 million in
liabilities.
Jeffrey S. Brinen, Esq., at Kutner Brinen Dickey Riley, P.C, is the
Debtor's counsel.
MICH'S MACCS: Gets Court Approval to Employ Auction Advisors
------------------------------------------------------------
Mich's Maccs, LLC received approval from the U.S. Bankruptcy Court
for the Southern District of New York to hire Auction Advisors to
market and sell its bakery business and related assets.
The firm will be paid an auctioneer fee of $2,500 and up to $400
for actual out-of-pocket expenses incurred in connection with the
sale and marketing of the assets.
Joshua Olshin, managing member of Auction Advisors, disclosed in a
court filing that he is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Joshua Olshin
Auction Advisors
1350 Avenue of Americas, 2nd Floor
New York, NY 10019
Tel: 800-862-4348
About Mich's Maccs
Mich's Maccs, LLC manufactures and sells artisanal
chocolate-covered coconut treats.
Mich's Maccs filed a petition for Chapter 11 protection (Bankr.
S.D. N.Y. Case No. 21-11567) on Sept. 3, 2021, listing up to
$50,000 in assets and up to $1 million in liabilities. Judge David
S. Jones oversees the case.
The Debtor tapped Glankler Brown, PLLC as legal counsel.
MOTELS OF SUGAR: March 9 Disclosure Statement Hearing Set
---------------------------------------------------------
Judge Robyn L. Moberly has entered an order within which March 9,
2022 at 02:00 PM at Rm. 329 U.S. Courthouse, 46 E. Ohio St.,
Indianapolis, IN 46204 is the hearing to consider the disclosure
statement of Debtor Motels of Sugar Land, LLP.
In addition, any objection to the disclosure statement must be
filed and served at least 5 days prior to the hearing date.
A copy of the order dated Feb. 7, 2022, is available at
https://bit.ly/3sz3hd7 from PacerMonitor.com at no charge.
Attorney for the Debtor:
KC Cohen 04310-49
KC Cohen, Lawyer, PC
151 N. Delaware St., Ste. 1106
Indianapolis, IN 46204
317.715.1845
fax 636.8686
kc@esoft-legal.com
About Motels of Sugar Land
Motels of Sugar Land, LLP owns the 94-suite Springhill Suites and
Hotel by Marriott in Sugarland, Texas, that employs 14 people.
Motels of Sugar Land sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Ind. Case No. 21-00371) on Jan. 29,
2021. Motels of Sugar Land President Sanjay Patel signed the
petition. In the petition, the Debtor disclosed $6,396,935 in
assets and $6,455,893 in liabilities.
Judge Robyn L. Moberly oversees the case. KC Cohen, Lawyer, PC is
the Debtor's legal counsel.
MTE HOLDINGS: Chenault-Vaughn Must File Amended Appeals Notice
--------------------------------------------------------------
Chief Magistrate Judge Mary Pat Thynge of the United States
District Court for the District of Delaware issued a Recommendation
dated January 27, 2022, that at present no action must be taken
regarding whether the matter in the appeals case captioned
CHENAULT-VAUGHAN FAMILY PARTNERSHIP, LTD., Appellant, v. CENTENNIAL
RESOURCE PRODUCTION LLC, Appellee, C.A. No. 21-1846-LPS (D. Del.),
should be withdrawn from mandatory mediation.
Appellant are directed to file an Amended Notice of Appeal on or
before February 17, 2022. The parties are also directed to provide
an Amended Joint Submission on Mandatory Mediation and Proposed
Briefing Schedule on or before March 3, 2022.
In this appeal, Appellant challenges a December 17, 2021 Memorandum
Opinion and Order on Cross-Motions for Summary Judgment and on a
Motion to Dismiss for lack of Subject Matter Jurisdiction. In the
Bankruptcy Court, Appellant explained that its Motions were filed
out of abundance of caution to ensure that the appellate deadlines
were not missed. Appellant noted that if the Memorandum Opinion and
Order on Cross-Motions for Summary Judgment are considered final
and appealable, the deadline for an appeal is 14 days thereafter.
If the Opinion and Order are interlocutory, the deadline to file an
application for leave to file an interlocutory appeal is governed
by Rule 8004. Rule 8004(e) provides that if a motion to certify
meets the interlocutory standard, an application for interlocutory
appeal must be filed within 10 days after the decision because it
is governed by 28 U.S.C. §1292(b).
At the January 10, 2022 Status Conference, the Bankruptcy Court
entered a briefing schedule to facilitate a final, appealable order
on the Cross-Motions for Summary Judgment and advised of its
preference for a single order addressing the entire matter to avoid
piecemeal appeals.
The Bankruptcy Court denied Appellant's Motion for Entry of Final
Judgment, for Certification of Interlocutory Appeal, and for
Certification of Direct Appeal. As a result, the December 27, 2021
Notice of Appeal was premature as to the summary judgment order.
Appellant plans to file an amended notice of appeal after the final
order is entered.
After conferring in response to the judge's Oral Order of January
4, 2022, the parties agree that mediation of the issues in this
appeal is likely to be unproductive. The parties previously
discussed settlement without success and believe mediation would
not result in a resolution. The parties intend to have another
discussion regarding briefing schedules after any amended notice of
appeal is filed, and agree that no proposed briefing schedule would
be appropriate at this time.
As of the date of this Recommendation, no amended notice of appeal
is filed.
Appellant further requests that any briefing on the appeal of the
Order Denying Motion to Dismiss for Lack of Subject Matter
Jurisdiction be deferred so the issues may be brief as part of the
appeal of the Order on Cross-Motions for Summary Judgment because
the matters involve common issues of law and fact, and the
Bankruptcy Court addressed the issues in the same Order.
The Parties also request that an Order be entered extending the
time within which they may provide an Amended Joint Submission on
Mandatory Mediation and Proposed Briefing Schedule until 14 days
after Appellant files an Amended Notice of Appeal in this case.
A full-text copy of the Recommendation is available at
https://tinyurl.com/2fshwkjs from Leagle.com.
About MTE Holdings
MTE Holdings LLC is a privately held company in the oil and gas
extraction business. MTE sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Del. Case No. 19-12269) on Oct. 22,
2019. In the petition signed by its authorized representative,
Mark A. Siffin, the Debtor disclosed assets of less than $50
billion and debts of $500 million.
Judge Karen B. Owens was originally assigned to the case before
Judge Christopher S. Sontchi took over.
The Debtor tapped Kasowitz Benson Torres LLP as its bankruptcy
counsel; Morris, Nichols, Arsht & Tunnell, LLP as its local
counsel; Greenhill & Co., LLC, as financial advisor and investment
banker; Ankura Consulting LLC, as a chief restructuring officer;
and Stretto as its claims and noticing agent.
MY2011 GRAND: Amends Plan to Update the AYHL Settlement
-------------------------------------------------------
My 2011 Grand LLC and S&B Monsey LLC submitted a Fourth Amended
Disclosure Statement describing the Fourth Amended Joint Plan of
Reorganization.
The Debtors shall satisfy the Class 1 Claims with respect to each
Debtor from the proceeds of the SKW and SME financing pursuant to
the term sheets. Class 3 Claims with respect to each Debtor will be
paid on the 20 month anniversary of the Effective Date from cash on
hand.
Administrative Claims, Priority Claims, if any, and statutory fees
to the Office of the United States due on the Effective Date shall
be paid either from funds to be contributed by the Interest Holders
or the proceeds of refinancing if available.
The AYHL Settlement is restated and incorporated by reference. The
AYHL Settlement Order mandates certain relief that supports
confirmation of this Plan, and also mandates certain relief in the
event that confirmation of this Plan is denied or, if confirmed,
the Plan fails to become effective.
In accordance with the AYHL Settlement Order, since December 31,
2021, interest on the amount of the Payment (as defined in the AYHL
Settlement Order) has accrued and will continue to accrue at 12%
per annum and the principal amount of the Payment has increased and
will continue to increase by $10,000 per month.
In addition, in accordance with the AYHL Settlement Order, and to
the extent the "Trigger Date" occurs, AYHL maintains its rights,
and has authority, to invoke the remedies.
The Amended Disclosure Statement does not alter the proposed
treatment for unsecured creditors and the equity holder:
* MY 2011 Class 3 General Unsecured Claims. Allowed General
Unsecured Claims are projected to total $38,000. Each Class 3
Claimant shall be paid the Allowed Amount of its Claim plus
interest at the Legal Rate on the 20-month anniversary of the
Effective Date.
* MY 2011 Class 4 Interests Holders. To the extent necessary,
Interest Holders shall be obligated to pay or escrow for
Administrative Claims and statutory fees due to the Office of the
United States Trustee on or before the Effective Date. Interest
Holders shall be entitled maintain ownership of their Interests
under the Plan.
* Monsey Class 4 General Unsecured Claims Allowed General
Unsecured Claims are projected to total $172,675. Each Class 3
Claimant shall be paid the Allowed Amount of its Claim plus
interest at the Legal Rate on the 20-month anniversary of the
Effective Date.
* Monsey Class 5 Interests Holders. To the extent necessary,
Interest Holders shall be obligated to pay or escrow for
Administrative Claims and statutory fees due to the Office of the
United States Trustee on or before the Effective Date. Interest
Holders shall be entitled maintain ownership of their Interests
under the Plan.
A full-text copy of the Fourth Amended Disclosure Statement dated
Feb. 7, 2022, is available at https://bit.ly/3uC8jbm from
PacerMonitor.com at no charge.
Attorneys for the Debtors:
Mark Frankel
Backenroth Frankel & Krinsky, LLP
800 Third Avenue, Floor 11
New York, New York 10022
Tel: (212) 593-1100
About MY 2011 Grand LLC
MY2011 Grand has an equitable interest in Grand Living LLC II, the
Mezz owner of Grand Living LLC, the owner of the property located
at 227 Grand Street Brooklyn, NY 11211. The current value of the
Debtor's interest is $12.80 million.
S & B Monsey has an equitable interest in Grand Living LLC II, the
Mezz owner of Grand Living LLC, the owner of the property located
at 227 Grand Street Brooklyn, NY 11211. The current value of the
Debtor's interest is $13.2 million.
MY 2011 Grand LLC and S & B Monsey filed voluntary petitions under
Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case
No.19-23957) on Nov. 6, 2019. The petitions were signed by David
Goldwasser, authorized signatory of GC Realty Advisors.
At the time of filing, MY2011 Grand and S & B Monsey each estimated
$10 million to $50 million in assets and $1 million to $10 million
in liabilities.
The Debtors are represented by Mark A. Frankel, Esq. at Backenroth
Frankel & Krinsky, LLP, as counsel.
NATIONAL TRANSPORTATION: Case Summary & 16 Unsecured Creditors
--------------------------------------------------------------
Debtor: National Transportation Inc.
9525 Hillwood Dr. Ste. 170
Las Vegas, NV 89134
Chapter 11 Petition Date: February 10, 2022
Court: United States Bankruptcy Court
District of Nevada
Case No.: 22-10456
Judge: Hon. Natalie M. Cox
Debtor's Counsel: David J. Winterton, Esq.
DAVID WINTERTON & ASSOCIATES, LTD
7881 W. Charleston Blvd.
Suite 220
Las Vegas, NV 89117
Tel: 702-363-0317
Fax: 702-363-1630
Email: autumn@davidwinterton.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by James R. Gleich as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 16 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/BNDEAJA/NATIONAL_TRANSPORTATION_INC__nvbke-22-10456__0001.0.pdf?mcid=tGE4TAMA
NOVABAY PHARMACEUTICALS: Hudson Bay, Sander Gerber Hold 9.9% Stake
------------------------------------------------------------------
Hudson Bay Capital Management LP and Sander Gerber disclosed in a
Schedule 13G filed with the Securities and Exchange Commission that
as of Dec. 31, 2021, they beneficially own 4,971,292 shares of
common stock of NovaBay Pharmaceuticals, Inc. (including 4,804,326
shares of common stock issuable upon exercise of warrants or
conversion of shares of convertible preferred stock).
The amount represents 9.99 percent of the shares outstanding,
calculated based upon 44,958,364 shares of common stock outstanding
as of Nov. 26, 2021, as reported in the Prospectus filed with the
SEC on Dec. 16, 2021 pursuant to Rule 424(b)(3). A full-text copy
of the regulatory filing is available for free at:
https://www.sec.gov/Archives/edgar/data/1389545/000139382522000071/nby_13g.htm
About Novabay
Headquartered in Emeryville, California, NovaBay Pharmaceuticals,
Inc. -- http://www.novabay.com-- is a biopharmaceutical company
focusing on commercializing and developing its non-antibiotic
anti-infective products to address the unmet therapeutic needs of
the global, topical anti-infective market with its two distinct
product categories: the NEUTROX family of products and the
AGANOCIDE compounds. The Neutrox family of products includes
AVENOVA for the eye care market, CELLERX for the aesthetic
dermatology market, and NEUTROPHASE for wound care market.
Novabay reported a net loss and comprehensive loss of $11.04
million for the year ended Dec. 31, 2020, a net loss and
comprehensive loss of $9.66 million for the year ended Dec. 31,
2019, and a net loss and comprehensive loss of $6.54 million for
the year ended Dec. 31, 2018. As of Sept. 30, 2021, the Company
had $12.24 million in total assets, $2.88 million in total
liabilities, and $9.36 million in total stockholders' equity.
O'HARE SHELL: Unsecureds Will Get 100% of Claims in Plan
--------------------------------------------------------
O'Hare Shell Partners, LLC, filed with the U.S. Bankruptcy Court
for the Northern District of Illinois a Second Amended Plan of
Reorganization dated Feb. 7, 2022.
The Debtor operates a gas station with a convenience store, car
wash, ATM and Lottery.
The Debtor is the proponent of this Plan as well as the Disbursing
Agent if the plan is consensual. If the Plan is not consensual, Ken
Novak, Sub-Chapter V Trustee is the disbursing agent. This Plan
provides for distributions to the holders of allowed claims from
the Debtor's operations.
The claims in these Classes are impaired by the Plan:
* Class 1 consists of the Secured Claim of West Town Bank &
Trust. In its Proof of Claim (1-1), West Town asserts that it holds
the perfected first mortgage of the real estate commonly known as
4111 N. Manheim Road, Schiller Park, Illinois (PIN 12-16
307-035-000) in the amount of $5,003,158.28. Debtor shall pay West
Town Bank & Trust in full or as agreed without five years of the
effective date of this Chapter 11 Plan. Until payment in full,
Debtor shall continue to remit monthly mortgage payments for
principal, interest and escrow to West Town in the amount of
$10,000.00 per month.
* Class 2A consists of the Priority Claim of Ascentium
Capital. In its Proof of Claim (4-1), Ascentium Capital asserts
that it holds a security interest in gas pumps located at the real
estate commonly known as 4111 N. Manheim Road, Schiller Park,
Illinois (PIN 12-16 307-035-000) in the amount of $111,125.62.
Debtor shall continue to remit monthly payments for principal,
interest and escrow to AC in accordance with the terms of the Loan
Documents at 4% interest.
* Class 2B consists of the Secured Claim of Crestmark. In its
Proof of Claim (6-1), West Town asserts that it holds a security
interest in signage on the real estate commonly known as 4111 N.
Manheim Road, Schiller Park, Illinois (PIN 12-16-307-035-000) in
the amount of $163,993.62. Debtor shall continue to remit monthly
payments for principal, interest and escrow to AC in accordance
with the terms of the Loan Documents at 4% interest.
* Class 3 consists of the Allowed General Unsecured Claims.
Debtor has 3 general unsecured creditors alleging a total balance
of $136,835.46.
-- The Republic Bank Claim (Claim 5-1) is a pandemic
Paycheck Protection Program ("PPP") claim. The Debtor pre and
post-petition had applied to the United States Small Business
Administration for the loan to be forgiven pursuant to applicable
requirements. The US Small Business Administration misapplied the
requirements and denied the forgiveness application based on the
default to West Town. However, the Debtor's principal was granted
forgiveness for other businesses. As a result, the claim of
Republic Bank will be denied. The Debtor will be objecting this
Proof of Claim and until an outcome will not make any payment to
Republic Bank.
-- If the Objection to the Republic Bank is sustained (only
Hamni Bank and Republic Bank paid) each Holder of Allowed Class 3
Claims shall be paid pro rata (estimated 100% of claims) beginning
on the first on the month after the effective date of $1,150.00 per
month. If the Objection to the Republic Bank is overruled (Hamni
Bank, Republic Bank and Robert Habib paid) each Holder of Allowed
Class 3 Claims shall be paid pro rata (estimated 100% of claims)
beginning on the first on the month after the effective date of
$2,300.00 per month.
All creditors will receive payment in full through this Chapter 11
Plan or liquidation based on the fair market value of the Debtor's
real estate.
All of the assets of the Debtor and this estate shall vest in the
Debtor upon Confirmation of the Plan subject to the liquidation,
terms and conditions of this Plan. The mechanics of how the Debtor
will liquidate the assets.
This Plan is self-executing. The Debtor shall not be required to
execute any newly created documents to evidence the claims, liens
or terms of repayment to the holder of any Allowed Claim, except
for the Restructured Promissory Note and all other loan documents.
A full-text copy of the Second Amended Plan of Reorganization dated
Feb. 7, 2022, is available at https://bit.ly/3HI3MYq from
PacerMonitor.com at no charge.
Debtor's Counsel:
Paul M. Bach, Esq.
Bach Law Offices, Inc.
P.O. Box 1285
Northbrook, IL 60065
Telephone: (847) 564-0808
Facsimile: (847) 564-0985
Email: pnbach@bachoffices.com
About O'Hare Shell Partners
Schiller Park, Ill.-based O'Hare Shell Partners, LLC, filed its
voluntary petition for relief under Chapter 11 of the Bankruptcy
Code (Bankr. N.D. Ill. Case No. 21-12756) on Nov. 8, 2021, listing
as much as $10 million in both assets and liabilities. Dorothy M.
Flisk, president, signed the petition.
Judge Donald R. Cassling oversees the case.
Paul M. Bach, Esq., and Penelope N. Bach, Esq., at Bach Law
Offices, Inc., is the Debtor's legal counsel.
OASIS MIDSTREAM: S&P Raises ICR to 'BB-' Then Withdraws Rating
--------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating and issue-level
rating on Oasis Midstream Partners L.P. to 'BB-' from 'B' and
removed the ratings from CreditWatch, where we placed them with
positive implications on Oct. 28, 2021. The outlook is positive,
the same as the outlook on Crestwood.
S&P subsequently withdrew its issuer credit rating on Oasis
Midstream.
S&P said, "At the same time, we revised our recovery rating on
Oasis Midstream's unsecured debt to '4' (rounded estimate: 45%)
from '3' to reflect the recovery prospects in line with those for
Crestwood's unsecured debt."
On Feb. 1, 2022, Crestwood Equity Partners L.P. (BB-/Positive)
completed its acquisition of Oasis Midstream Partners L.P.
S&P said, "The rating actions follow the closing of Crestwood's
acquisition of Oasis Midstream. We raised our rating on Oasis
Midstream to 'BB-' with a positive outlook to equalize it with the
rating on Crestwood because we now consider Oasis Midstream to be a
core entity of Crestwood. We subsequently withdrew the rating."
PAINT THE WIND: U.S. Trustee Unable to Appoint Committee
--------------------------------------------------------
The U.S. Trustee for Region 3 on Feb. 8 disclosed in a court filing
that no official committee of unsecured creditors has been
appointed in the Chapter 11 case of Paint the Wind, LLC.
About Paint the Wind
Paint the Wind, LLC, a company in Biglerville, Pa., sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Pa.
Case No. 22-00078) on Jan. 19, 2022, listing up to $50 million in
assets and up to $10 million in liabilities. Christine M. Rakoci,
member, signed the petition.
Judge Henry W. Van Eck oversees the case.
Lawrence V. Young, Esq., CGA Law Firm, is the Debtor's legal
counsel.
PAPER BLAST: Unsecured Creditors to Recover 12% in 60 Months
------------------------------------------------------------
Paper Blast Co., filed with the U.S. Bankruptcy Court for the
Northern District of Illinois a Plan of Reorganization dated Feb.
7, 2022.
Paper Blast Co. operates an internet based printing store related
to banners and party supplies.
This Plan provides for distributions to the holders of allowed
claims from the net income from operations of the Debtor. The
Debtor has been conducting business and after paying off its
previous Chapter 11 Case (20-1366), and overextended itself with
additional debt using Cash Management Accounts (CMA).
The CMA allowed the Debtor to obtain funds and make payments on a
daily basis. As to the four CMAs (Spark Funding, LLC d/b/a
Fundamental Capital, Irwin Funding, Syndicate Group USA, Inc. and
Efinancial Tree) ("the CMAs") daily payments of $9,000.00 were
required. This amount of cash leaving the business on a daily basis
was preventing the Debtor from continuing to operate. In order to
continue to operate the Debtor was required to breach these CMA
arrangements caused the Debtor to file this bankruptcy case.
Class 1 consists of Allowed General Unsecured Claims. Debtor has 9
general unsecured creditors totaling a balance of $707,780.14. Each
Holder of Allowed Class 3 Claims shall be paid a pro rata share
(estimated 12% of claims) beginning the first of the month after
the effective date of $1,416.00 per month for sixty months.
At the beginning of the bankruptcy case, the Debtor had evidence of
a questionable security interests in the assets of the Debtor by
Spark Funding, LLC d/b/a Fundamental Capital, Irwin Funding,
Syndicate Group USA, Inc. and Efinancial Tree. Only one of these
parties (Irwin Funding) filed an unsecured non priority proof of
claim and the others did not file a proof of claim.
Any claim by Spark Funding, LLC d/b/a Fundamental Capital, Irwin
Funding, Syndicate Group USA, Inc. and Efinancial Tree is therefore
unsecured and not secured in any way shape or form. Any alleged
security agreement by Spark Funding, LLC d/b/a Fundamental Capital,
Irwin Funding, Syndicate Group USA, Inc. and Efinancial Tree are
therefore void and of no legal effect against the Debtor or the
Debtor's property.
All of the assets of the Debtor and this estate shall vest in the
Debtor upon Confirmation of the Plan subject to the liquidation,
terms and conditions of this Plan.
This Plan is self-executing. The Debtor shall not be required to
execute any newly created documents to evidence the claims, liens
or terms of repayment to the holder of any Allowed Claim, except
for the Restructured Promissory Note and all other loan documents.
A full-text copy of the Plan of Reorganization dated Feb. 7, 2022,
is available at https://bit.ly/3uIFUAi from PacerMonitor.com at no
charge.
Debtor's Counsel:
Paul M. Bach, Esq.
Bach Law Offices, Inc.
P.O. Box 1285
Northbrook, IL 60062
Tel: (847) 564-0808
Email: pnbach@bachoffices.com
About Paper Blast Co.
Paper Blast Co. filed a petition for Chapter 11 protection (Bankr.
N.D. Ill. Case No. 21-12790) on Nov. 9, 2021, listing up to $50,000
in assets and up to $1 million in liabilities. Judge A. Benjamin
Goldgar oversees the case. The Debtor is represented by Paul M.
Bach, Esq., at Bach Law Offices, Inc.
PHE.NO LLC: Case Summary & Two Unsecured Creditors
--------------------------------------------------
Debtor: Phe.no LLC
5350 Wilshire Blvd.
Los Angeles, CA 90036
Chapter 11 Petition Date: February 9, 2022
Court: United States Bankruptcy Court
Central District of California
Case No.: 22-10715
Judge: Hon. Vincent P. Zurzolo
Debtor's Counsel: Michael Jay Berger, Esq.
LAW OFFICES OF MICHAEL JAY BERGER
9454 Wilshire Boulevard, 6th Floor
Beverly Hills, CA 90212
Tel: (310) 271-6223
Fax: (310) 271-9805
E-mail: michael.berger@bankruptcypower.com
Estimated Assets: $50,000 to $100,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Ranvir Gujral, Board of Managers of
Phenomenon Holdings, LLC, which is the sole member of Phe.no LLC.
A full-text copy of the petition containing, among other items, a
list of the Debtor's two unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/XXT3RAY/Pheno_LLC__cacbke-22-10715__0001.0.pdf?mcid=tGE4TAMA
PLUS THERAPEUTICS: Hudson Bay, Sander Gerber Report 3.46% Stake
---------------------------------------------------------------
Hudson Bay Capital Management LP and Sander Gerber disclosed in an
amended Schedule 13G filed with the Securities and Exchange
Commission that as of Dec. 31, 2021, they beneficially own 550,000
shares of common stock issuable upon exercise of warrants of Plus
Therapeutics, Inc., representing 3.46 percent of the shares
outstanding. A full-text copy of the regulatory filing is
available for free at:
https://www.sec.gov/Archives/edgar/data/1095981/000139382522000105/pstv_13ga.htm
About Plus Therapeutics
Headquartered in Austin, Texas, Plus Therapeutics, Inc. --
http://www.plustherapeutics.com-- is a clinical-stage
pharmaceutical company focused on the discovery, development, and
manufacturing scale up of complex and innovative treatments for
patients battling cancer and other life-threatening diseases.
Plus Therapeutics reported a net loss of $8.24 million for the year
ended Dec. 31, 2020, compared to a net loss of $10.89 million for
the year ended Dec. 31, 2019. As of Sept. 30, 2021, the Company
had $24.75 million in total assets, $9.99 million in total
liabilities, and $14.76 million in total stockholders' equity.
BDO USA, LLP, in San Diego, Calif., the Company's auditor since
2016, issued a "going concern" qualification in its report dated
Feb. 22, 2021, citing that the Company has suffered recurring
losses and negative cash flows from operations that raise
substantial doubt about its ability to continue as a going concern.
PLUS THERAPEUTICS: Parkman Entities Report 7.4% Equity Stake
------------------------------------------------------------
In a Schedule 13G filed with the Securities and Exchange
Commission, these entities and individual reported beneficial
ownership of 1,508,508 shares of common stock of Plus Therapeutics
Inc., representing 7.4 percent of the shares outstanding:
* Parkman Healthcare Partners LLC
* Parkman Healthcare Partners Holdings LP
* Parkman Healthcare Partners Holdings GP LLC
* Gregory Martinez
A full-text copy of the regulatory filing is available for free
at:
https://www.sec.gov/Archives/edgar/data/1095981/000091957422000666/d9172057_13-g.htm
About Plus Therapeutics
Headquartered in Austin, Texas, Plus Therapeutics, Inc. --
http://www.plustherapeutics.com-- is a clinical-stage
pharmaceutical company focused on the discovery, development, and
manufacturing scale up of complex and innovative treatments for
patients battling cancer and other life-threatening diseases.
Plus Therapeutics reported a net loss of $8.24 million for the year
ended Dec. 31, 2020, compared to a net loss of $10.89 million for
the year ended Dec. 31, 2019. As of Sept. 30, 2021, the Company
had $24.75 million in total assets, $9.99 million in total
liabilities, and $14.76 million in total stockholders' equity.
BDO USA, LLP, in San Diego, Calif., the Company's auditor since
2016, issued a "going concern" qualification in its report dated
Feb. 22, 2021, citing that the Company has suffered recurring
losses and negative cash flows from operations that raise
substantial doubt about its ability to continue as a going concern.
PREFERRED READY: Amends Plan to Address Wayne Tyson's Claim Issues
------------------------------------------------------------------
Preferred Ready Mix, LLC, submitted a Second Modification to the
Plan of Reorganization Under Subchapter V dated Feb. 7, 2022.
The Debtor proposes the Second Modification to Debtor's Plan of
Reorganization Under Subchapter V to address the concerns raised by
Wayne C. Tyson. In accordance with Bankruptcy Rule 3019, to the
extent applicable, this Plan may be modified or amended upon
application of the Debtor or corrected prior to the Confirmation
Date.
The changes proposed are neither material nor adverse to any party
and should be made a part of the Plan approved in this case and are
set forth as follows:
Class 1 Claims: Allowed Secured Claims of Bank Direct 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 6.5% 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 each Claim is paid in full under the Plan. This
Claimant shall retain its pre-Petition Date Liens securing these
Claims. These Claims are impaired.
Proof of Claim No. 3, for Wayne C. Tyson is secured by two
non-exempt vehicles. As of October 14, 2021 (the "Petition Date"),
Tyson claims to hold an Allowed Secured Claim in the amount of
$19,097.83 which Tyson claims is oversecured. Because Tyson may be
oversecured, the amount owed to Tyson relating to Tyson Proof of
Claim No. 3 may be entitled to Tyson's reasonable post-petition
attorneys' fees which shall be added to the amount of its claim.
Tyson shall provide the Reorganized Debtor with an invoice
reflecting its reasonable and necessary post-petition attorneys'
fees within 30 days following entry of an order confirming this
Plan. If the Reorganized Debtor objects to the reasonableness or
necessity of Tyson's post-petition attorney's fees, the Reorganized
Debtor shall file a motion to determine same on or before 45 days
following entry of an order confirming this Plan. If no such motion
is filed, all invoiced amounts shall be deemed to be fully and
finally allowed.
Tyson's Allowed Secured Claim (together with the foregoing post
petition amounts) shall be paid as follows:
* Payments from and after the Effective Date will be due on
the 30th day following the Effective Date and on the same day of
each month thereafter for a term of 60 months;
* The Debtor's monthly payment will be in an amount necessary
to fully amortize the allowed amount of Tyson's claim as of the
Effective Date over a period of 60 months, together with interest
from and after the Effective Date at an annual interest rate of
6.50%; and
* Payment is due at the following address: Wayne C. Tyson,
19238 San Solomon Spring Court, Cypress, Texas 77433.
Tyson shall retain all its liens on the Reorganized Debtor's
Property in its current lien priority to secure repayment of its
Allowed Secured Claim.
The Amended Plan does not alter the proposed treatment for
unsecured creditors and the equity holder:
* 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 Second Modified Plan of Reorganization
dated Feb. 7, 2022, is available at https://bit.ly/3sqFSKz 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.
PRIME GROUP: Case Summary & Four Unsecured Creditors
----------------------------------------------------
Debtor: Prime Group Properties, LLC
14127 Leavitt Ave.
Dixmoor, IL 60067
Business Description: Prime Group Properties, LLC is a Single
Asset Real Estate debtor (as defined in 11
U.S.C. Section 101(51B)).
Chapter 11 Petition Date: February 10, 2022
Court: United States Bankruptcy Court
Northern District of Illinois
Case No.: 22-01490
Judge: Hon. Janet S. Baer
Debtor's Counsel: John H. Redfield, Esq.
CRANE, SIMON, CLAR & GOODMAN
Suite 3950
135 South LaSalle Street
Chicago, IL 60603-4297
Tel: 312-641-6777
Fax: 312-641-7114
Email: jredfield@cranesimon.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Jesse Fuller as majority member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's four unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/T35P4QI/Prime_Group_Properties_LLC__ilnbke-22-01490__0001.0.pdf?mcid=tGE4TAMA
PRINCESS PORT: Seeks Cash Collateral Access
-------------------------------------------
Princess Port Bed & Breakfast, Inc. asks the U.S. Bankruptcy Court
for the Northern District of California, San Francisco Division,
for authority to use cash collateral generated by the real property
commonly known as 445 Mirada Road, Half Moon Bay, CA 94019.
The Debtor requires the use of cash collateral for repairs, upkeep,
insurance, taxes, liquidation of any tenant deposits upon vacation
of the property, to make payments to secured creditors subject to
an approved budget.
The parties that assert liens or encumbrances against the Property
are Fay Servicing and Real Time Resolutions.
As of the date of the Motion, the Property is operating as a bed
and breakfast generating rental income between $3,000 and $6,000 on
a monthly basis.
The Debtor requests approval on a final basis to pay expenses for
the Property consistent with the amounts and categories set forth
in the monthly Operating Budget, in the amount of up to $6,000,
with a variance equal to plus or minus $1,000.
The Debtor proposes to use a portion of the rental income collected
from the Property to make required payments including property
taxes, hazard insurance and maintenance expenses to keep up the
condition of the Property. These payments will continue until the
effective date of a Chapter 11 plan, dismissal or conversion of the
case.
Beginning in March 2022, the Debtor will begin making regular
monthly scheduled payments to secured creditors of the Property and
the payments will continue until the effective date of a Chapter 11
plan, dismissal or conversion of the case.
The Debtor asserts that the lienholders are adequately protected by
an equity cushion in their collateral.
The fair market value of the Property is estimated to be $2,650,000
and the aggregate debt to satisfy all claims encumbering the
Property is approximately $2,497,000. There is approximately
$278,000 in equity to Fay Servicing, therefore, an equity ratio of
10.49% ($278,000 / $2,650,000). There is also approximately
$153,000 in equity to Real Time Resolutions and therefore, an
equity ratio of 5.77% ($153,000/$2,650,000). This equity together
with adequate protection payments that will commence March 2022,
adequately protects the interest of the lienholders identified in
Section II.A. above pursuant to the standards set forth in section
361 and 363(e) of the Bankruptcy Code.
A copy of the motion is available at https://bit.ly/3HWcfrn from
PacerMonitor.com.
About Princess Port Bed and Breakfast
Princess Port Bed and Breakfast, Inc. is the fee simple owner of a
real property located at 445 Mirada Road, Half Moon Bay, Calif.,
valued at $2.57 million.
Princess Port Bed and Breakfast filed its voluntary petition for
Chapter 11 protection (Bankr. N.D. Calif. Case No. 21-30775) on
Nov. 23, 2021, disclosing $2,585,562 in assets and $1,429,200 in
liabilities. Maria Boruta, principal at Princess Port Bed and
Breakfast, signed the petition.
Judge William J. Lafferty oversees the case.
E. Vincent Wood, Esq., at The Law Offices of E. Vincent Wood
represents the Debtor as legal counsel.
PURDUE PHARMA: Bankruptcy Mediator Extends Talks to Feb.16
----------------------------------------------------------
Judge Shelley C. Chapman, acting as the mediator holding talks
between members of the Sackler family that own Purdue Pharma and
U.S. states opposed to the OxyContin-maker's bankruptcy exit plan,
requested an extension of the mediation deadline to Feb. 16, 2022,
according to court documents filed on Tuesday, February 8, 2022.
Judge Robert Drain granted the Mediator's request for an
extension.
On February 8, 2022 the Mediator filed a Second Interim Report in
which she stated that, after extensive negotiations over the last
week with the Mediation Parties and certain Additional Parties, she
believes that the Mediation Parties "are even closer to an
agreement in principle that provides for certain material
non-economic terms and substantial additional consideration . . .
that would be used exclusively for abatement of the opioid crisis,
including support and services for survivors, victims, and their
families." The Second Interim Report also notes that the Mediator
believes that the Mediation would be aided by greater participation
by certain Additional Parties
and requested that the Mediation Termination Date be extended from
12:00 a.m. February 8, 2022 to February 16, 2022 at 5:00 p.m. EST.
About Purdue Pharma LP
Purdue Pharma L.P. and its subsidiaries --
http://www.purduepharma.com/-- develop and provide prescription
medicines and consumer products that meet the evolving needs of
healthcare professionals, patients, consumers and caregivers.
Purdue's subsidiaries include Adlon Therapeutics L.P., focused on
treatment for Attention-Deficit/Hyperactivity Disorder (ADHD) and
related disorders; Avrio Health L.P., a consumer health products
company that champions an improved quality of life for people in
the United States through the reimagining of innovative product
solutions; Imbrium Therapeutics L.P., established to further
advance the emerging portfolio and develop the pipeline in the
areas of CNS, non-opioid pain medicines, and select oncology
through internal research, strategic collaborations and
partnerships; and Greenfield Bioventures L.P., an investment
vehicle focused on value-inflection in early stages of clinical
development.
Opioid makers in the U.S. are facing pressure from a crackdown on
the addictive drug in the wake of the opioid crisis and as state
attorneys general file lawsuits against manufacturers. More than
2,000 states, counties, municipalities and Native American
governments have sued Purdue Pharma and other pharmaceutical
companies for their role in the opioid crisis in the U.S., which
has contributed to the more than 700,000 drug overdose deaths in
the U.S. since 1999.
OxyContin, Purdue Pharma's most prominent pain medication, has been
the target of over 2,600 civil actions pending in various state and
federal courts and other fora across the United States and its
territories.
On Sept. 15 and 16, 2019, Purdue Pharma L.P. and 23 affiliated
debtors each filed a voluntary petition for relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No.
19-23649), after reaching terms of a preliminary agreement for
settling the massive opioid litigation. The Debtors' consolidated
balance sheet as of Aug. 31, 2019, showed $1.972 billion in assets
and $562 million in liabilities.
U.S. Bankruptcy Judge Robert Drain oversees the cases.
The Debtors tapped Davis Polk & Wardwell, LLP and Dechert, LLP as
legal counsel; PJT Partners as investment banker; AlixPartners as
financial advisor; and Grant Thornton, LLP as tax structuring
consultant. Prime Clerk LLC is the claims agent.
Akin Gump Strauss Hauer & Feld LLP and Bayard, P.A., represent the
official committee of unsecured creditors appointed in the Debtors'
bankruptcy cases.
David M. Klauder, Esq., is the fee examiner appointed in the
Debtors' cases. The fee examiner is represented by Bielli &
Klauder, LLC.
* * *
U.S. Bankruptcy Judge Robert Drain in early September 2021 approved
a plan to turn Purdue into a new company (Knoa Pharma LLC) no
longer owned by members of the Sackler family, with its profits
going to fight the opioid epidemic. The Sackler family agreed to
pay $4.3 billion over nine years to the states and private
plaintiffs and in exchange for a lifetime legal immunity. The deal
resolves some 3,000 lawsuits filed by state and local governments,
Native American tribes, unions, hospitals and others who claimed
the company's marketing of prescription opioids helped spark and
continue an overdose epidemic.
Separate appeals to approval of the Plan have already been filed by
the U.S. Bankruptcy Trustee, California, Connecticut, the District
of Columbia, Maryland, Rhode Island and Washington state, plus some
Canadian local governments and other Canadian entities.
Purdue filed its Chapter 11 Plan on March 15, 2021. A 12th amended
Chapter 11 plan was filed on Sept. 2, 2021, which was confirmed on
Sept. 17. Purdue divides the claims against it into several
categories, one of which it calls "PI Claims," consisting of claims
"for alleged opioid-related personal injury." The plan provides
for the creation of the "PI Trust," which will administer all PI
Claims. The trust will be funded with an initial distribution of
$300 million on the effective date of the Chapter 11 plan, followed
by a distribution of $200 million in 2024, and distributions of
$100 million in 2025 and 2026. In sum, "[t]he PI Trust will receive
at least $700 million in value, and may receive an additional $50
million depending on the amount of proceeds received on account of
certain of Purdue's insurance policies."
The Plan further provides that Purdue's ability to recover from its
insurers will be vested in a "Master Disbursement Trust." To the
extent any proceeds are recovered from Purdue's insurers with
respect to the PI Claims, up to $450 million of those proceeds will
be channeled from the MDT to the PI Trust. However, the PI Trust
will be funded regardless of whether anything is recovered from
Purdue's insurers. Instead, "[d]istributions to the PI Trust are
subject to prepayment on a rolling basis as insurance proceeds from
certain of Purdue's insurance policies are received by the MDT and
paid forward to the PI Trust."
PURDUE PHARMA: NY Judge Okays Canadian Entities Late Ch.11 Appeal
-----------------------------------------------------------------
Dorothy Atkins of Law360 reports that a New York federal judge on
Wednesday, February 9, 2022, approved a belated appeal filed by
Canadian entities challenging Purdue Pharma's Chapter 11 plan,
hours after Purdue said it had no problem with the appeal going
forward before the Second Circuit.
U.S. District Judge Colleen McMahon wrote "motion granted without
opposition" across the top of a two-page memo endorsement, thereby
greenlighting a request by a group of Canadian entities, including
First Nations people and Canadian municipalities, to challenge
Purdue Pharma's multibillion-dollar Chapter 11 plan before the
Second Circuit.
About Purdue Pharma LP
Purdue Pharma L.P. and its subsidiaries --
http://www.purduepharma.com/-- develop and provide prescription
medicines and consumer products that meet the evolving needs of
healthcare professionals, patients, consumers and caregivers.
Purdue's subsidiaries include Adlon Therapeutics L.P., focused on
treatment for Attention-Deficit/Hyperactivity Disorder (ADHD) and
related disorders; Avrio Health L.P., a consumer health products
company that champions an improved quality of life for people in
the United States through the reimagining of innovative product
solutions; Imbrium Therapeutics L.P., established to further
advance the emerging portfolio and develop the pipeline in the
areas of CNS, non-opioid pain medicines, and select oncology
through internal research, strategic collaborations and
partnerships; and Greenfield Bioventures L.P., an investment
vehicle focused on value-inflection in early stages of clinical
development.
Opioid makers in the U.S. are facing pressure from a crackdown on
the addictive drug in the wake of the opioid crisis and as state
attorneys general file lawsuits against manufacturers. More than
2,000 states, counties, municipalities and Native American
governments have sued Purdue Pharma and other pharmaceutical
companies for their role in the opioid crisis in the U.S., which
has contributed to the more than 700,000 drug overdose deaths in
the U.S. since 1999.
OxyContin, Purdue Pharma's most prominent pain medication, has been
the target of over 2,600 civil actions pending in various state and
federal courts and other fora across the United States and its
territories.
On Sept. 15 and 16, 2019, Purdue Pharma L.P. and 23 affiliated
debtors each filed a voluntary petition for relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No.
19-23649), after reaching terms of a preliminary agreement for
settling the massive opioid litigation. The Debtors' consolidated
balance sheet as of Aug. 31, 2019, showed $1.972 billion in assets
and $562 million in liabilities.
U.S. Bankruptcy Judge Robert Drain oversees the cases.
The Debtors tapped Davis Polk & Wardwell, LLP and Dechert, LLP as
legal counsel; PJT Partners as investment banker; AlixPartners as
financial advisor; and Grant Thornton, LLP as tax structuring
consultant. Prime Clerk LLC is the claims agent.
Akin Gump Strauss Hauer & Feld LLP and Bayard, P.A., represent the
official committee of unsecured creditors appointed in the Debtors'
bankruptcy cases.
David M. Klauder, Esq., is the fee examiner appointed in the
Debtors' cases. The fee examiner is represented by Bielli &
Klauder, LLC.
* * *
U.S. Bankruptcy Judge Robert Drain in early September 2021 approved
a plan to turn Purdue into a new company (Knoa Pharma LLC) no
longer owned by members of the Sackler family, with its profits
going to fight the opioid epidemic. The Sackler family agreed to
pay $4.3 billion over nine years to the states and private
plaintiffs and in exchange for a lifetime legal immunity. The deal
resolves some 3,000 lawsuits filed by state and local governments,
Native American tribes, unions, hospitals and others who claimed
the company's marketing of prescription opioids helped spark and
continue an overdose epidemic.
Separate appeals to approval of the Plan have already been filed by
the U.S. Bankruptcy Trustee, California, Connecticut, the District
of Columbia, Maryland, Rhode Island and Washington state, plus some
Canadian local governments and other Canadian entities.
Purdue filed its Chapter 11 Plan on March 15, 2021. A 12th amended
Chapter 11 plan was filed on Sept. 2, 2021, which was confirmed on
Sept. 17. Purdue divides the claims against it into several
categories, one of which it calls "PI Claims," consisting of claims
"for alleged opioid-related personal injury." The plan provides
for the creation of the "PI Trust," which will administer all PI
Claims. The trust will be funded with an initial distribution of
$300 million on the effective date of the Chapter 11 plan, followed
by a distribution of $200 million in 2024, and distributions of
$100 million in 2025 and 2026. In sum, "[t]he PI Trust will receive
at least $700 million in value, and may receive an additional $50
million depending on the amount of proceeds received on account of
certain of Purdue's insurance policies."
The Plan further provides that Purdue's ability to recover from its
insurers will be vested in a "Master Disbursement Trust." To the
extent any proceeds are recovered from Purdue's insurers with
respect to the PI Claims, up to $450 million of those proceeds will
be channeled from the MDT to the PI Trust. However, the PI Trust
will be funded regardless of whether anything is recovered from
Purdue's insurers. Instead, "[d]istributions to the PI Trust are
subject to prepayment on a rolling basis as insurance proceeds from
certain of Purdue's insurance policies are received by the MDT and
paid forward to the PI Trust."
QUALITY CARE DAYCARE: Taps William Johnson as Bankruptcy Counsel
----------------------------------------------------------------
Quality Care Daycare @ BUP, LLP seeks approval from the U.S.
Bankruptcy Court for the District of Maryland to hire William C.
Johnson, Jr., Esq., a practicing attorney in Greenbelt, Md., to
handle its Chapter 11 case.
The services to be provided by the attorney include:
(a) providing general advice concerning compliance with the
requirements of Chapter 11;
(b) preparing any necessary amendments to the Debtor's
bankruptcy schedules, statement of financial affairs, and related
documents;
(c) representing the Debtor in all contested matters;
(d) representing as appropriate in any related matters in
other courts;
(e) advising the Debtor concerning the structure of a Chapter
11 plan and any required amendments;
(f) advising the Debtor concerning the feasibility of
confirmation of a plan and representation in connection with the
confirmation process;
(g) liaising, consulting and, where appropriate, negotiating
with creditors and other parties in interest;
(h) reviewing relevant financial information;
(i) reviewing claims to determine which claims are allowable
and in what amounts;
(j) prosecuting claims objections, as appropriate;
(k) representing the Debtor at the Section 341 meeting of
creditors and at any hearings or status conferences in court; and
(l) providing other necessary legal services.
Mr. Johnson will be paid an hourly fee of $450. The attorney
received the sum of $7,533 as a retainer fee.
In a court filing, Mr. Johnson disclosed that he is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
Mr. Johnson can be reached at:
William C. Johnson, Jr., Esq.
6305 Ivy Lane, Suite 630
Greenbelt, MD 20770
Tel: (301) 477-3450
Fax: (301) 477-4813
Email: William@JohnsonLG.Law
About Quality Care Daycare
Quality Care Daycare @ BUP, LLP filed a petition for Chapter 11
protection (Bankr. D. Md. Case No. 22-10546) on Feb. 3, 2022,
listing up to $1 million in assets and up to $500,000 in
liabilities.
The Debtor tapped William C. Johnson, Jr., Esq., a practicing
attorney in Greenbelt, Md., to handle its bankruptcy case.
ROSIE'S LLC: March 31 Disclosure Statement Hearing Set
------------------------------------------------------
Judge Thomas B. McNamara has entered an order within which March
31, 2022, at 1:30 p.m., 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
Rosie's LLC.
In addition, objections to the Disclosure Statement shall be filed
and served not less than fourteen (14) days prior to the Hearing.
A copy of the order dated Feb. 7, 2022, is available at
https://bit.ly/3sxWAI0 from PacerMonitor.com at no charge.
Attorneys for the Debtor:
Timothy M. Swanson, Esq.
Patrick Akers, Esq.
Moye White LLP
1400 16th Street 6th Floor
Denver, CO 80202-1486
Tel: (303) 292-2900
Fax: (303) 292 4510
Email: Tim.Swanson@moyewhite.com
Patrick.Akers@moyewhite.com
About Rosie's LLC
Rosie's, LLC, a Sterling, Colo.-based company engaged in renting
and leasing real estate properties, filed a voluntary petition for
Chapter 11 protection (Bankr. D. Colo. Case No. 21-14259) on Aug.
16, 2021, listing as much as $50 million in both assets and
liabilities. David W. Lebsock, the Debtor's manager, signed the
petition. Moye White, LLP, represents the Debtor as legal counsel.
SERVICE KING COLLISION: Starts Debt Restructuring Negotiations
--------------------------------------------------------------
Alexander Saeedy and Alexander Gladstone, writing for The Wall
Street Journal report that Blackstone Inc.'s Service King Collision
Repair Centers Inc. has started talks with creditors about
restructuring the company's debt, which could include a potential
chapter 11 filing, according to people familiar with the matter.
Lenders in the company's $775 million term loan have signed
nondisclosure agreements with the company to begin negotiations
ahead of a looming debt maturity due in July 2022, the people
said.
About Service King Collision Repair
Service King Collision Repair -- https://www.serviceking.com/ -- is
a national automotive collision repair company operating in 24
states and the District of Columbia across the U.S. It was founded
in 1976 by Eddie Lennox in Dallas. The Carlyle Group purchased
majority ownership of Service King in 2012. After growing the chain
from 49 Texas locations to more than 175 locations in 20 states, it
sold a majority stake to Blackstone in July 2014. Carlyle has
maintained a minority stake. In 2017, Bloomberg reported that
Blackstone and Carlyle explored a sale of the chain
for as much as $2 billion.
SPIRIT AIRLINES: Fitch Affirms 'BB-' LT IDR, Outlook Stable
-----------------------------------------------------------
Fitch Ratings has affirmed Spirit Airlines' Long-Term Issuer
Default Rating at 'BB-' and its senior secured notes at
'BB+'/'RR1'. The Rating Outlook is Stable. The affirmation follows
Spirit Airlines and Frontier Airlines' announcement that the
companies will merge in a transaction valued at $6.6 billion. The
companies expect the transaction to close in the second half of
2022 pending regulatory approval.
The rating affirmation reflects Fitch's view that the combined
companies will benefit from an improved competitive position and
economies of scale. The two low-cost carriers are also well
positioned in the domestic and near-international leisure markets
which are quickly recovering from pandemic lows. Fitch believes
that the balance sheet of the combined company will remain
supportive of the current rating as no incremental debt is being
raised to fund the transaction.
KEY RATING DRIVERS
Merger with Frontier Airlines: Frontier has agreed to purchase
Spirit for $2.9 billion consisting of 1.9126 shares of Frontier
stock and $2.13 in cash for each share of Spirit stock. The
transaction is valued at $6.9 billion including assumed debt and
lease obligations. Frontier shareholders will own 51.5% of the
combined company with existing Spirit Shareholders owning the
remaining 48.5%. The merged companies will create the fifth largest
airline in the U.S., as measured by capacity. Pro forma combined
revenues for 2021 total $5.3 billion. Key items such as the
combined company management team and branding have yet to be
announced.
Combined Networks a Positive: Fitch views the combination of Spirit
Airlines and Frontier Airlines' networks as strategically sound.
The carriers currently have limited overlap, and the combination
will create a much broader portfolio of destinations as well as
additional schedule depth in certain markets. The scale of the
combined networks will create a stronger competitor to four largest
U.S. carriers, who currently control some 80% of the market. The
merger may also prove to be a strong defensive move in fending off
new entrants into the ultra-low-cost-air-carriers market.
Target Synergies: The companies are targeting $500 million in
EBITDA synergies on a run-rate basis, $100 million of which are
related to reduced costs and $400 million of which is related to
revenues driving the combined networks and broader customer reach.
While Fitch's modelling is conservative to the public estimate, the
combination is likely to produce efficiencies that should drive
upside for margins. Cost synergies are likely to be achievable as
the stated target represents a modest reduction to the airlines'
pre-merger cost structures. Revenue synergies are less tangible,
and are given little weight in Fitch's forecasts.
Post COVID Deleveraging Intact: Fitch expects adjusted leverage for
the combined companies to trend toward pre-pandemic levels over two
to three years. Frontier and Spirit maintained comparable leverage
profiles pre-COVID but leverage remains elevated in 2021 due to the
pandemic. As the merger will not involve new debt, there is not
expected to be an impact to the combined entities' leverage
profile. Frontier maintains very little debt but has substantial
lease obligations. The airlines are expected to deleverage as air
traffic recovers, falling below 4.75 in 2023.
Fleet Commonality: Spirit and Frontier both operate A320 family
aircraft. Fleet commonality generates efficiencies in terms of
pilot and crew training, maintenance, spare parts & engines etc.
Crew flexibility is beneficial in terms of operating efficiency, as
the combined companies will ultimately be able to easily swap
pilots and cabin crews between flights once the labor groups
merge.
This step may take some time, as airline union negotiations often
take multiple years. At YE 2021 Spirit operated a fleet of 173
aircraft, weighted toward the A320 and A320 NEO, while Frontier
operated 110 aircraft, 73 of which were A320 NEOs. Both carriers
operate young fleets, driving fuel efficiency and maintenance costs
benefits. The combined carrier will have an average fleet age of
around five years.
Regulatory Approval: The transaction is subject to approval by the
Department of Justice and Department of Transportation. Fitch does
not anticipate major regulatory hurdles given the market position
of the merging airlines relative to their much larger competitors.
The last merger among smaller airlines was between Alaska Air and
Virgin America, which received regulatory approval with little
pushback.
Fitch believes that the creation of a larger low-cost carrier that
acts as a more effective competitor to the four major U.S. carriers
may be viewed favorably by regulators. However, there is some risk
that the current administration takes a harsher stance towards any
consolidation in the airline industry. The relatively small number
of remaining competitors in the U.S. airline industry means that
regulatory approval is not guaranteed.
DERIVATION SUMMARY
Spirit's 'BB-' rating is in line with JetBlue (BB-/Negative) and
above United Airlines (B+/Stable) and American Airlines
(B-/Stable). Fitch views Spirit's focus on domestic and leisure
travel to be a benefit compared with United Airlines and American
Airlines, which are more exposed to international and business
travel are likely to be under pressure longer due to the
coronavirus pandemic. JetBlue's credit metrics are expected to be
better than Spirit's, but this is partly offset by Spirit's
low-cost base. Spirit's network and route diversification still
lags behind peers, but has strengthened as the carrier has
continued to grow.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Adjusted debt/EBITDAR sustained below 4.25x;
-- FFO fixed-charge coverage sustained around 3.0x;
-- Realization of merger synergies leading FCF to trend towards
neutral or higher.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Adjusted debt/EBITDAR sustained above 4.75x;
-- EBITDAR margins deteriorating into the low double-digit range;
-- FFO fixed-charged coverage sustained at 2.0x or below;
-- Liquidity declining toward 15% of LTM revenue;
-- A material deterioration in passenger traffic due to an
outbreak of new variants of the coronavirus or new or
lingering travel restrictions.
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
Sufficient liquidity Post Merger. Fitch estimates the combined
entity will have total available liquidity of more than $2 billion,
representing about 35% of the combined entities' 2019 revenues and
provides a material cushion against potential weakening air traffic
demand. At the end of December 2021, Spirit reported $1.7 billion
in unrestricted cash, cash equivalents and short-term investments
while Frontier reported $918 million in unrestricted cash.
Spirit's debt structure primarily consists of term loans and
enhanced equipment trust certificate debt, all of which is secured
by aircraft. The company also has $510 million in senior secured
notes, $528.2 million in convertible notes and $240 million in
senior secured revolving credit facility that is undrawn. The
senior secured notes (BB+/RR1) are secured by Spirit's loyalty
program, including revenues from its co-brand credit cards and
Spirit Saver$ Club, and other intellectual property. Spirit has
$28.2 million in 4.75% convertible notes due 2025 and $500 million
in 1.00% convertible notes due 2026.
Frontier's debt structure primarily consists of $2.5 billion in
operating leases at the end of Sept. 30, 2021; Fitch treats
operating leases as debt for airlines and the figure is
incorporated into Fitch's financial metrics. The company also has
$126 million in pre-delivery payment facilities provided by
Citibank and $66 million in payroll support program promissory note
with the U.S. Treasury. The company had $150 million outstanding in
treasury loans but has repaid it in February 2022, unencumbering
the company's co-branded credit card program and related assets.
ISSUER PROFILE
Spirit Airlines, Inc. (Spirit) is a Florida-based, ultra-low-cost
air carrier. The company began operations in 1980 and has expanded
its network to include 80 destinations throughout the United
States, Latin America and the Caribbean as of March 31, 2021.
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.
STANDARD INDUSTRIES: Fitch Rates LT IDR First-Time 'BB'
-------------------------------------------------------
Fitch Ratings has assigned a first-time Long-Term Issuer Default
Rating (IDR) of 'BB' to Standard Industries Inc. Fitch has also
assigned a 'BBB-'/'RR1' rating to the company's senior secured ABL
facility, a 'BB+'/'RR2' rating to the company's senior secured term
loan and 'BB'/'RR4' ratings to the company's senior unsecured
notes. The Rating Outlook is Stable.
Standard's ratings reflect the company's leading market positions
within its business segments, high exposure to relatively
less-cyclical repair and replacement end-markets, robust liquidity
position, and strong EBITDA and FCF generation. Long-term risk
factors include high leverage, volatile raw material costs, the
cyclicality of some of the company's end-markets, and, at times,
sizeable distributions to its parent.
KEY RATING DRIVERS
Leadership Position: Standard is the No. 1 manufacturer of
residential and commercial roofing products in North America, and
the leading manufacturer of flat and pitched roofing systems in
Europe. Fitch believes a leading market position and meaningful
market share often beget pricing power and provide advantages in
terms of shelf-space allocation within distribution channels. This
is reflected in EBITDA margins that are stronger than its
investment grade building products peers and relatively stable
margins even during periods of inflationary input costs.
Elevated Leverage Levels: Total debt to operating EBITDA increased
to 4.8x for the LTM period ended Oct. 3, 2021 due to the $2.5
billion term loan issued to fund the company's $3.1 billion
dividend payment to its parent. During 4Q21, Standard paid down
$900 million on its term loan using $400 million of cash and a $500
million add-on to its notes due July 2030. Fitch estimates total
debt to operating EBITDA was about 4.5x at YE 2021 and expects this
ratio to decline to 4.2x in 2022 as a result of further term loan
paydown. Longer term, Fitch expects leverage will be at or below
4.0x.
SIH Ownership of Standard Industries Inc.: Standard Industries
Holdings Inc. (SIH) is a privately-held holding company that owns
Standard Industries Inc. and W.R Grace & Co., a specialty chemicals
and materials producer. In September 2021, SIH acquired Grace, and
funded the acquisition, in part, with a $3.1 billion cash dividend
from Standard to SIH. Standard funded the dividend with balance
sheet cash and the issuance of a $2.5 billion senior secured term
loan due 2028.
While Fitch does not expect Standard to regularly pay large
dividends to SIH, unique circumstances such as additional
acquisitions by SIH may require the upstream of meaningful
dividends from Standard, which could temporarily weaken its credit
profile.
Stable Earnings Outlook: Fitch forecasts a relatively stable
earnings outlook for Standard in 2022, supported by price increases
and a recovering commercial construction end-market. Fitch expects
Standard's revenues to be relatively flat this year, as volume
declines in residential roofing are offset by further price
increases and improvement in commercial construction activity.
Fitch's base case forecast assumes revenues decline low-single
digits in 2023, which incorporates Fitch's expectation of further
weakness in the U.S. residential roofing market and normalizing
selling prices.
Diverse Sources of Revenues: The company's products are sold
primarily to the residential and commercial end-markets in the U.S.
and Europe, providing Standard with exposure to sectors that
typically have different cycle times. Fitch estimates that about
75% of Standard's sales are derived from repair and
replacement-driven demand, with the balance from new construction
activity. Fitch views this end-market exposure a credit positive as
roofing repair and replacement is largely nondiscretionary and less
volatile than new construction through the cycle, providing
stability to margins and cash flows.
Strong Profitability: Standard's EBITDA margins are strong relative
to investment-grade U.S. building products peers and are expected
to be between 20%-21% during the next few years, similar to the
margins reported by the company over the past few years.
The company also generates strong FCF (cash flow after capex and
dividends), although FCF can at times be erratic depending on
dividend payments to its parent. FCF margins were 5.7% in 2018,
negative in 2019 (due to higher working capital investment,
elevated capex and a $500 million dividend to its parent) and 9.2%
in 2020 (due to lower capex). Fitch expects the company to report
FCF margin of 2.5%-3% in 2021 due to working capital investments
and more-normal capex levels, but to then sustain in the 4.5%-6.5%
range thereafter.
Balanced Growth Strategy: Fitch views Standard's growth strategy as
a credit positive since the company balances organic and inorganic
growth. Standard has made both bolt-on and transformational
acquisitions as well as significant capital investments to fuel
organic growth. Fitch expects capex levels to be elevated during
2022 and 2023, as the company invests in a number of growth
initiatives, including increasing its manufacturing capacity.
The company began its international expansion in 2016 with the $1.0
billion acquisition of Icopal, a European manufacturer of roofing
and waterproofing products. In 2017, Standard acquired Braas Monier
for $1.1 billion, a manufacturer of pitched roofing products in
Europe, South Africa and parts of Asia, which it combined with
Icopal to create BMI, offering a broader suite of roofing products.
Most recently, Standard acquired underlayment manufacturer FT
Synthetics for about $145 million during 4Q21.
DERIVATION SUMMARY
Standard's credit metrics are meaningfully weaker than
low-investment-grade building products peers, including Owens
Corning (OC; BBB-/Positive), RPM International, Inc. (RPM;
BBB-/Stable), and James Hardie Industries plc (JHX; BBB-/Stable).
The company has a less diverse product portfolio than OC and RPM,
but has lower exposure to more volatile new construction
end-markets than these peers. The company's profitability and cash
flow metrics are in-line with OC's and stronger than RPM's.
KEY ASSUMPTIONS
-- Standard's total revenues are flat in 2022 and decline low-
single digit percentages in 2023 due to lower residential
roofing volumes and normalizing selling prices;
-- EBITDA margins peak at 21.2% in 2021 and decline to 21.0% in
2022 and 20.0% in 2023 due to raw material inflation and some
softening in residential roofing demand;
-- Elevated levels of capex in 2022 and 2023 resulting in FCF
margins (after dividends) in the 4.5%-6.0% range;
-- FCF applied towards additional prepayments on senior secured
term loan;
-- Total debt to operating EBITDA of 4.5x at YE 2021, 4.2x at YE
2022, and 4.0x by YE 2023.
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 3.8x;
-- Operating EBITDA/interest paid sustained above 5.3x.
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 4.5x;
-- Operating EBITDA/interest paid falling below 4.0x;
-- Shareholder-friendly capital allocation during a construction
downturn or period of economic distress.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
LIQUIDITY AND DEBT STRUCTURE
Strong Liquidity Position: Standard's liquidity position is
supported by the company's cash on hand, ABL availability, and FCF
generating ability. The company's debt maturities are
well-laddered, with the next major maturity in November 2026, when
EUR800 million of notes come due. As of Oct. 3, 2021, the company
had $956 million of cash and cash equivalents and about $614
million of availability under its $650 million ABL which matures in
December 2024. During 4Q21, Standard paid down $900 million on its
senior secured term loan due September 2028 using $400 million of
cash and a $500 million add-on to its July 2030 notes.
ISSUER PROFILE
Standard Industries Inc. is one of the largest manufacturers of
residential and commercial roofing in the U.S. and the leading
manufacturer of flat and pitched roofing systems in Europe.
Standard also manufactures waterproofing products, insulation
products, aggregates, specialty construction and other products.
The company operates 175 manufacturing facilities in 30 countries
across North America, Europe, and Asia.
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.
STAYSAVER VACATIONS: Seeks Use of Cash Collateral
-------------------------------------------------
StaySaver Vacations LLC asks the U.S. Bankruptcy Court for the
Middle District of Florida, Tampa Division, for authority to use
cash collateral to fund its operating expenses and costs of
administration in the Chapter 11 case and to provide adequate
protection.
The Debtor believes KR Capital LLC, Steve Bowman, Colebrook
Financial Company, & Capital Partners Alternative Income & Growth
Fund, LLC may assert valid and perfected security interest on all
StaySaver Receivables of StaySaver Vacations, LLC.
The Debtor, StaySaver Vacations LLC, is owned by DIP, StaySaver
Vacation Group LLC, 8:22-bk-00193-CPM and managed by Larry Biondi,
managing member of DIP, StaySaver Vacation Group LLC,
8:22-bk-00193-CPM. The Debtor operates a travel discount club in
leased premises at 2601 Cattlemen Rd. Suite 500, Sarasota, FL
34232. The Debtor is in the business of selling memberships in its
discount travel club to consumers. Often the consumers finance a
portion of the purchase price of the travel club membership. The
Debtor collateralized the financed portions of many of its
consumers' membership purchase prices.
The Debtor engages in the operation of a travel discount club. The
Debtor allows its customers to finance a portion of purchase price
of membership in its travel dis count club. The Debtor's operations
include collections of payments owing on the outstanding balance of
the membership fees. The Debtor engages the services of
independent contractors to conduct collection activities on its
accounts receivable. The Debtor's account receivable constitutes
the collateral for its secured lenders.
In exchange for the Debtor's ability to use Cash Collateral in the
operation of its business, the Debtor proposes to grant to the
Lenders, as adequate protection, replacement liens to the same
extent, validity, and priority as existed on the Petition Date. The
Debtor proposes that the Lenders' "floating" liens on such assets
that would continue to "float" to the same extent, validity, and
priority as existed on the Petition Date, notwithstanding Section
552 of the Bankruptcy Code.
A copy of the motion is available at https://bit.ly/34w69PQ from
PacerMonitor.com.
About StaySaver Vacations LLC
StaySaver Vacations LLC provides members only access to online
travel savings, including flights, hotel stays, car rentals, luxury
cruises and more.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-00192) on January 17,
2021. In the petition signed by Larry Biondi, managing member, the
Debtor disclosed up to $10 million in both assets and liabilities.
Marshall G. Reissman, Esq. at the Reissman Law Group, P.A., is the
Debtor's counsel.
STORTZ FARM: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Stortz Farm Partnership
490 Van Buren Dr.
Waukon, IA 52172
Business Description: Stortz Farm Partnership
Chapter 11 Petition Date: February 10, 2022
Court: United States Bankruptcy Court
Northern District of Iowa
Case No.: 22-00069
Debtor's Counsel: Austin Peiffer, Esq.
AG & BUSINESS LEGAL STRATEGIES
PO Box 11425
Cedar Rapids, IA 52410-1425
Tel: 319-363-1641
Email: austin@ablsonline.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Brian J. Stortz, principal of Stortz
Farm Partnership.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/NL52HJQ/Stortz_Farm_Partnership__ianbke-22-00069__0001.0.pdf?mcid=tGE4TAMA
UNITED WAY OF SALEM: Seeks Chapter 11 Bankruptcy Protection
-----------------------------------------------------------
Matt Gray, writing for NJ.com, reports that the owner of
fire-damaged community center, United Way of Salem County, filed
for bankruptcy protection to halt a sheriff's sale.
The planned sheriff's sale of a fire-damaged community center in
South Jersey has been scrubbed because of a bankruptcy filing.
The United Way of Salem County, which owns the John B. Campbell
Community Center in Salem City, filed for Chapter 11 bankruptcy
this week, halting the sale, which was planned for Monday.
The center has remained vacant since the United Way chapter ceased
operations at the site several years ago and local officials had
hoped a change in ownership could lead to the center being repaired
and reopened.
They expressed frustration over the latest delay.
The agency defaulted on payments for a $100,000 loan that TD Bank
made to the previous operators of the center in 2010, according to
court records, and the bank began foreclosure proceedings in 2020.
A judge granted foreclosure in July and the sale was initially
listed for December 2021. It was postponed to Feb. 7 at the request
of the defendant.
The property was listed for sheriff’s sale to recover $315,178.59
— including principal and interest — owed to TD Bank.
A fire that was deemed suspicious broke out at the center on Oct.
17, 2021 damaging an office and storage area in the
40,000-square-foot building. Flames burned through the roof and
adjacent areas of the center suffered heat, smoke and water
damage.
The Salem County Prosecutor's Office and Salem Police Department
are conducting an arson investigation.
After acquiring the community center in 2014, the United Way
chapter used the building as its headquarters and the site, valued
at $3.4 million, also housed a daycare, recreation and exercise
facilities, along with programs for kids and seniors.
The United Way of Salem County was terminated from the national
United Way organization in 2018 over a series of issues, including
failing to pay membership dues and not meeting terms of probation
it was placed on for failing to produce audited financial
statements.
In addition, the state Attorney General's Office found the agency
failed to follow rules for disclosing how money is distributed to
recipient organizations and failed for five years to file renewal
registration statements with the state.
The state fined the local United Way chapter and a consent order
was signed in 2017 between the Attorney General's Office and
Monique Chadband, then-executive director of the United Way of
Salem County.
The federal bankruptcy filing lists Chadband as treasurer of the
agency.
Efforts to reach her and the attorney handling the bankruptcy
filing for comment were unsuccessful.
The filing lists various creditors, including utility companies, a
financial services business, a law firm, security company, lawn
care company, the New Jersey Division of Taxation and Chadband
herself, who is listed as being owed $575,649.42 in deferred
compensation.
The chapter’s estimated assets and liabilities are both listed as
between $1 million and $10 million, according to the paperwork.
A status conference on the bankruptcy application is scheduled for
March 24 in Camden federal court.
As for the center, it remains unrepaired and open to the elements,
according to local officials.
Salem City leaders had hoped the building could be restored as a
local community resource. They had been in regular contact with TD
Bank over the matter and a local committee was formed to address
the project.
Salem City Council President Earl Gage called the latest delay a
sad day for the city and its residents.
"So once again the building will continue to sit and deteriorate
because of the negligence of the owner," Gage said.
About United Way of Salem County
United Way of Salem County is a civic and social is a is a civic
and social organization in Salem, New Jersey.
United Way of Salem County sought Chapter 11 bankruptcy protection
(Bankr. D.N.J. Case No. 22-10951) on Feb. 6, 2022. In the petition
filed by Monique Chadband as treasure, United Way of Salem County
listed estimated assets of between $1 million and $10 million and
estimated liabilities between $1 million and $10 million. Kenneth
L. Baum, Esq., of LAW OFFICES OF KENNETH L. BAUM, LLC, is the
Debtor's counsel.
WA INC: Unsecured Creditors Will Get 60% of Claims in Plan
----------------------------------------------------------
WA, Inc., filed with the U.S. Bankruptcy Court for the Southern
District of Ohio a First Amended Plan of Reorganization dated Feb.
7, 2022.
WA, Inc. was founded by Henry Wilson in 2000 as an MBE
architectural firm. The company currently has offices in
Cincinnati, Ohio and St. Louis, Missouri to service clients in
those geographical areas.
WA, Inc. problems center primarily with the Covid 19 shutdown. WA
has been working successfully with its creditors for the past 20
months, but the debt load was not currently sustainable without the
intervention of the Court. With reorganization and hiring of
qualified employees, the company will be able to resume
profitability and growth. When the pandemic hit in early 2020 six
contracts for services were either delayed or cancelled. The debtor
was slow in adjusting to the downturn and was unable to meet its
obligations.
The benefit of this plan is that it will allow a small business to
continue operations while providing employment and benefits to at
least 12 individuals. The benefit to all creditors is that they
will receive a portion of their outstanding debt with the
possibility of a higher return if the reorganized Debtor is
successful.
The Debtor will make nine (9) payments of $60,500 semi-annually
beginning on the First Distribution Date (the "Scheduled Minimum
Payments"). $19,450 of that payment will be made to Priority tax
claims at 3.50% interest and the balance will be paid pro-rata to
unsecured creditors at no interest.
In addition to the Scheduled Minimum Payments, creditors in classes
2 and 3 shall also receive additional distributions ("Additional
Profit Sharing Distributions") based upon the profitability of the
business which is fixed at $ 15,000 (the "Base Period Profit
Amount").
Specifically, if there is any net profit in excess of what is
necessary to make the Scheduled Minimum Payments and in excess of
20% of the Base Period Profit Amount during any of the 6-month
distribution periods during the plan term, all such net profit
shall be shared 75% to the creditors in classes 2 and 3 and 25% to
the Debtor. The Additional Profit Sharing Distributions shall be
calculated and paid concurrently with the Scheduled Minimum
Payments. When priority tax claims have been fully paid, the
disbursement that would have gone to priority claims shall be added
to the disbursement to unsecured creditors.
Unsecured creditors shall receive an estimated 60% of their claims
based upon the payment of the Scheduled Minimum Payments, and
higher recoveries up to the full amount of their allowed claims if
and to the extent that any Additional Profit Sharing Distributions
are made.
The length of the plan shall be 54 months (9 semi-annual payments
of $60,500 each).
Class 3 consists of the Allowed Unsecured Claims of an estimated $
660,000. The Class 3 Claims shall receive 9 semiannually pro-rata
payments of $41,050 plus any bonus offset as set forth in Article
IV through the payment of the Scheduled Minimum Payments and any
Additional Profit Sharing Distributions. The portion of the
Scheduled Minimum Payments paid to creditors in Class 3 shall
increase upon the payment in full of the Class 3 priority claims.
Class 5 consists of the membership interest of Richard Mellott and
Henry Wilson. Class 5 shall retain their membership interest in the
Debtor. The salary of the Class 5 members shall not be increased
during the term of the plan.
The Debtor anticipates that they will be able to pay current
operation expenses and fund the Chapter 11 plan payments. The
financial projections for the next 36 months reflect disposable
income which is sufficient to fund the plan during the first three
years of the Plan term. With the assumption the business will
remain consistent, the Debtor will be able to fund the plan for the
54 months.
A full-text copy of the First Amended Plan of Reorganization dated
Feb. 7, 2022, is available at https://bit.ly/34thYpV from
PacerMonitor.com at no charge.
Attorney for Debtor:
Robert A Goering (0003884)
Eric W. Goering
GOERING & GOERING LLC
220 W. 3rd St.
Cincinnati, OH 45202
513-621-0912
(513) 621-6042 (fax)
bob@goering-law.com
eric@goering-law.com
About WA Inc.
Cincinnati, Ohio-based WA, Inc., filed its voluntary petition for
Chapter 11 protection (Bankr. S.D. Ohio Case No. 21-12122) on Oct.
1, 2021, listing up to $500,000 in assets and up to $10 million in
liabilities. Judge Jeffery P. Hopkins oversees the case.
Robert A. Goering, Esq., at Goering & Goering represents the Debtor
as legal counsel. The Debtor also tapped the services of Jerry
Kanter, an accountant practicing in Cincinnati, Ohio.
WATERLOO AFFORDABLE: Taps SVN Affordable as Real Estate Broker
--------------------------------------------------------------
Waterloo Affordable Housing, LLC seeks approval from the U.S.
Bankruptcy Court for the District of Nebraska to hire SVN
Affordable Levental Realty to sell its properties in Waterloo,
Iowa.
The firm will be paid a broker's fee equal to 4 percent of the
purchase price of the properties.
SVN President Frank Jermusek disclosed in a court filing that he is
a "disinterested person" as the term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached at:
Frank A. Jermusek
SVN Affordable Levental Realty
1660 Highway 100 S. Suite 330
Minneapolis, MN 55416
Tel: 952-820-1615
About Waterloo Affordable Housing
Waterloo Affordable Housing, LLC, a lessor of real estate in Omaha,
sought protection under Chapter 11 of the Bankruptcy Code (Bankr.
D. Neb. Case No. 19-81610) on Oct. 30, 2019, listing as much as $10
million in both assets and liabilities. Judge Thomas L. Saladino
oversees the case.
Robert Vaughan Ginn, Esq., and Theodore R. Boecker, Jr., Esq.,
serve as the Debtor's bankruptcy attorney and special litigation
attorney, respectively.
The Debtor filed its Chapter 11 plan and disclosure statement on
Sept. 9, 2021.
WILLCO XII: FirstBank Agrees to Cash Collateral Use Thru April 30
-----------------------------------------------------------------
Willco XII Development, LLLP and FirstBank, a Colorado banking
corporation, have advised the U.S. Bankruptcy Court for the
District of Colorado that they have reached an agreement regarding
the extension of Willco's access to cash collateral through April
30, 2022, and now desire to memorialize the terms of this agreement
into an Agreed Order.
The Parties have agreed to further extend and modify the Interim
Order Authorizing Use of Cash Collateral and Providing Adequate
Protection through April 30, 2022, upon the Amended Budget.
A copy of the stipulation is available at https://bit.ly/3GH7pN8
from PacerMonitor.com.
About Willco XII Development, LLLP
Willco XII Development, LLLP, owns the hotel property at 4851
Thompson Parkway, in Johnstown Colorado, currently identified as
the Comfort Inn & Suites in Johnstown. The company is a unit of
William G. Albrecht's Spirit Hospitality, LLC.
Willco XII Development sought Chapter 11 protection (Bankr. D.
Colo. Case No. 20-16307) on Sept. 23, 2020, to stop its lender from
foreclosing on the property.
The Debtor disclosed $14.2 million in assets and $10.274 million in
liabilities as of the bankruptcy filing. The Debtor's property is
valued at $13 million and secures a $6.4 million first mortgage to
the FirstBank of Colorado and a $3.46 million second mortgage to
Wells Fargo.
Lance J. Goff represents the Debtor as the counsel.
FirstBank, as lender, is represented by Chad Caby, Esq. at LEWIS
ROCA ROTGHERBER CHRISTIE LLP.
WILMA & FRIEDA'S: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Wilma & Frieda's Inc.
d/b/a Wilma & Frieda's Cafe
11322 Camarillo Street, #103
Toluca Lake, CA 91602
Business Description: The Debtor is part of the restaurants
industry.
Chapter 11 Petition Date: February 9, 2022
Court: United States Bankruptcy Court
Central District of California
Case No.: 22-10147
Judge: Hon. Victoria S. Kaufman
Debtor's Counsel: Michael Jay Berger, Esq.
LAW OFFICES OF MICHAEL JAY BERGER
9454 Wilshire Boulevard, 6th Floor
Beverly Hills, CA 90212
Tel: (310) 271-6223
Fax: (310) 271-9805
E-mail: michael.berger@bankruptcypower.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Kelly McFall as chief executive
officer.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/5QIHMYA/Wilma__Friedas_Inc_dba_Wilma__cacbke-22-10147__0001.0.pdf?mcid=tGE4TAMA
[*] A&G Real Estate Bags Distressed M&A Deal of the Year Award
--------------------------------------------------------------
A&G Real Estate Partners' portfolio optimization of gift and
stationery retailer Paper Source earned it a share of the
"Distressed M&A Deal of the Year-Middle Markets" award at Global
M&A Network's 13th Annual Turnaround Atlas Awards Ceremony. The
awards committee also recognized SSG Capital Advisors, investment
banker on the Paper Source deal, and Carl Marks Advisors, financial
advisor to the secured lender.
The Melville-based real estate advisory firm, which specializes in
real estate sales and auctions nationwide, received the award
during the virtual event held on Jan. 26-27. "Once again, we
honored eminent firms and top-performing dealmakers from the North
and South Americas, who exemplify excellence for executing
transactions," said Shanta Kumari, CEO and Global Group Editor,
Global M&A Network.
"We are honored to receive this latest recognition from Global M&A
Network on behalf of our team," said A&G Co-President Emilio
Amendola. "In our view, Paper Source was a strong illustration of
how the right approach to real estate can turn a retailer's
fortunes around."
Challenges created by the initial onset of the pandemic in 2020
were at the root of A&G's engagement with Paper Source, noted A&G
Senior Managing Director Todd Eyler. "The pandemic occurred right
after Paper Source had snapped up 30 new stores from competitor
Papyrus,†he said. "lthough Paper Source had an online
presence, about 85 percent of its revenue was coming from the
brick-and-mortar operations."
Safety concerns about shopping in stores were just part of the
reason sales and traffic had declined at those locations. "So many
in-person events like weddings and graduation parties had been
postponed, which directly affected market demand for Paper Source
products," Mr. Eyler explained.
In March 2021, Paper Source filed for Chapter 11 bankruptcy
protection. At that time, the retailer employed 1,700 people and
operated 158 stores with $36 million in estimated annual lease
charges. It was reportedly saddled by about $100 million in debt.
"Paper Source certainly needed to rethink its real estate portfolio
given the changes that were occurring," Mr. Amendola said.
A&G conducted an in-depth portfolio review, crafted strong
messaging and dove into negotiations with landlords. "Within 45
days, A&G had restructured a total of 130 of these leases, saving
about 20 percent of annual average occupancy costs per location and
securing an average of about one month of abatements per location,"
Mr. Amendola noted.
In May 2021, Barnes & Noble parent company Elliott Investment
Management L.P. acquired the retailer for a reported $91.6 million.
This enabled Paper Source to emerge from Chapter 11 with plans to
operate 130 stores and its ecommerce business. "Paper Source's
financials, primarily based on the restructured leases in the
portfolio, were a major driver of that acquisition," Mr. Amendola
said.
Global M&A Network named A&G "Real Estate Restructuring Firm of the
Year" for its overall work in both 2019 and 2020. The firm was also
recognized by the organization in both years for its efforts on
numerous individual deals.
About A&G Real Estate Partners
A&G -- http://www.agrep.com/-- is a team of seasoned commercial
real estate professionals and subject matter experts that delivers
strategies designed to yield the highest possible value for
clients’ real estate. Key areas of expertise include real
estate sales, occupancy cost reductions, lease terminations,
dispositions, real estate due diligence, valuations, acquisitions,
and facilitation of growth opportunities. Utilizing its marketing
knowledge, reputation and advanced technology, A&G has advised the
nation's most prominent retailers and corporations in both healthy
and distressed situations. The firm's team has achieved
rent-reduction and occupancy-cost savings approaching $8 billion on
behalf of clients in every real estate sector, while selling more
than $12 billion of properties and leases. Founded in 2012, A&G is
headquartered in Melville, N.Y.
[] Maclay Testifies Before Senate Committee on Abusing Chapter 11
-----------------------------------------------------------------
On February 8, 2022 Caplin & Drysdale's Kevin Maclay testified at a
U.S. Senate Judiciary Committee hearing concerning corporations
using Chapter 11 to side-step accountability.
In his testimony regarding the Texas Two Step, Mr. Maclay stated
that "When the richest and most powerful corporations in the
country are using the federal bankruptcy system to avoid paying the
most vulnerable people in the country something is wrong. The
system needs to be fixed."
"Unless a stop is put to it, the Texas Two-Step effectively places
corporations willing to stoop to it above the law. Tort victims can
no longer seek redress for their injuries in the court system, as
such corporate defendants argue, so far successfully, that the
bankruptcy filing by their BadCo likewise protects their GoodCo
from lawsuits. Yet their GoodCo remains outside of bankruptcy and
free from the transparency and court oversight usually required as
a condition of such bankruptcy protection," Mr. Maclay added in his
testimony.
"And there are major consequences to the abuse of the Texas
Two-Step loophole. As of the dates of their bankruptcy filings,
there were hundreds of thousands of claims collectively pending
against Georgia Pacific, CertainTeed (part of the Saint-Gobain
corporate family), Ingersoll-Rand, Trane, Johnson & Johnson, and
their affiliates. Those injured victims have now been trapped in
illegitimate bankruptcies manufactured by undeniably wealthy
companies. Those victims include dead and dying individuals, or
their survivors, some of whom likely have few, if any, other
options and are in desperate financial straits. At a minimum, the
Texas Two-Step has resulted in substantial delays to their ability
to seek justice, and potentially could even eliminate that ability.
These are real-world problems, not merely academic concerns, and
fundamental fairness is at stake."
A video of the committee hearing is available at
https://www.c-span.org/video/?517788-1/hearing-lawsuits-corporate-accountability&vod
Mr. Maclay's full written testimony is available at
https://www.caplindrysdale.com/files/29516_kcm_written_testimony.pdf
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
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public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
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equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
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Monthly Operating Reports are summarized in every Saturday edition
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The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
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*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Philadelphia, Pa., USA.
Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante,
Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon,
Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and
Peter A. Chapman, Editors.
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