/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/220216.mbx T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, February 16, 2022, Vol. 26, No. 46 Headlines 1604 ISHERWOOD: Seeks Cash Collateral Use 230 JACOBS: Has Until April 10 to File Plan & Disclosures 436 PRINCETON: Plan and Disclosures Due April 10 A.G. DILLARD: Wins Cash Collateral Access Thru March 17 ADT SECURITY: Egan-Jones Keeps B- Senior Unsecured Ratings ADVANCE TRANSPORTATION: Wins Cash Collateral Access AEMETIS INC: Renaissance Entities Lower Equity Stake to 1.44% AEMETIS INC: State Street Has 5.48% Equity Stake as of Dec. 31 AGILE THERAPEUTICS: Vanguard Group Has 3.7% Stake as of Dec. 31 AGSPRING MISSISSIPPI: Seeks to Continue Cash Collateral Access ALTO MAIPO DELAWARE: Lenders Oppose Extra Chapter 11 Challenge Time AMERICAN AIRLINES: Egan-Jones Keeps B- Sr. Unsecured Debt Ratings AMERICAN EAGLE: Court Approves RSA, Bidding Procedures AMERIVET SERVICES: Seeks Cash Collateral Access APPLIED DNA: Incurs $4.7 Million Net Loss in First Quarter ARCHDIOCESE OF AGANA: Plans to Pay Abuse Claimants Face Objections ARCHDIOCESE OF SANTA FE: Reverses Request to Seal Records ARMATA PHARMACEUTICALS: Expects to Raise $45M From Stock Offering ASHFORD HOSPITALITY: Egan-Jones Retains CCC Sr. Unsecured Rating ATLANTIC BROOM: Case Summary & 20 Largest Unsecured Creditors BARTLEY INDUSTRIES: Unsecureds to Get 100 Cents on Dollar in Plan BBS HOLDINGS: Plan Filing Deadline Extended to March 28 BIONIK LABORATORIES: Incurs $7 Million Net Loss in Third Quarter BOY SCOUTS: March 2022 Hearing After Claimant Group Okays BOY SCOUTS: Plan Hearing Delayed Amid New Deal Concerns BYRNA TECHNOLOGIES: Incurs $3.3M Net Loss in FY Ended Nov. 30 CARPENTER REALTY: Unsecureds to be Paid in Full in Liquidating Plan CHARM HOSPITALITY: Court Denies Plan Approval; Dismissal Sought CLEVELAND IMAGING: Sanctions for Bid to Seize Property Upheld CNX MIDSTREAM: S&P Raises ICR to 'BB', Outlook Stable CNX RESOURCES: S&P Upgrades ICR to 'BB', Outlook Stable COMMUNITY HEALTH: Vanguard Group Has 7.7% Stake as of Dec. 31 CRESTWOOD EQUITY: Moody's Affirms Ba2 CFR on Oasis Midstream Deal CYTOSORBENTS CORP: Vanguard Group Has 5.1% Equity Stake DBMP LLC: Loses Bid to Toss Asbestos Victims' Suit DGS REALTY: Wins Cash Collateral Access Thru March 4 DUPONT STREET: Unsecured Claims Unimpaired in Plan EKSO BIONICS: AZ Fund, Azimut Investments Report 3.3% Equity Stake EMPACADORA Y PROCESADORA: Voluntary Chapter 11 Case Summary ENRAMADA PROPERTIES: Examiner Sought to Review Property Transfer FORUM DINER: Case Summary & 12 Unsecured Creditors FREDDIE MAC: Reports $12.11 Billion Net Income in 2021 GENON ENERGY: 2nd Cir. Greenlights Alix Suit vs. McKinsey GIRARDI & KEESE: IRS Comes After Tom Over $3.7 Million Debt GRUPO AEROMEXICO: To Assume Full Control of Club Premier HELIUS MEDICAL: AIGH Capital, Orin Hirschman Report 6.8% Stake HERTZ CORP: Falsely Arrested Customers Score Win in Court HIGHPEAK ENERGY: Fitch Gives FirstTime 'B-' LT IDR, Outlook Stable HKBH PRESCHOOLS: Seeks to Hire AM Law as Bankruptcy Counsel HOME DECOR: Voluntary Chapter 11 Case Summary INNERLINE ENGINEERING: Seeks Cash Collateral Access Thru April 30 INTEGRATED VENTURES: Incurs $515K Net Loss in Second Quarter ISLAND INDUSTRIES: Taps Glankler Brown as Bankruptcy Counsel JOHNSON & JOHNSON: Claimants Snub Move to Keep LTL Bankruptcy Alive JOHNSON & JOHNSON: Cost in Ending Talc Suits Could Reach $7 Billion KB HOME: Egan-Jones Keeps BB- Senior Unsecured Ratings KINTARA THERAPEUTICS: Incurs $5.9 Million Net Loss in 2nd Quarter LATAM AIRLINES: Creditors Continue Backstop Fees Clash LATAM AIRLINES: Defends Fees for Capital Raise to Ease Ch.11 Exit LATAM AIRLINES: NY Judge Postpones Hearing to February 18, 2022 LUCERO LLC: Seeks to Hire Belvedere Legal as Bankruptcy Counsel MAINSTREET PIER: Has Deal on Cash Collateral Access MALLINCKRODT PLC: Irish Court Appoints Interim Examiner MALLINCKRODT PLC: Seeks Last Chapter 11 Acthar Suit Pause Extension MRA HOLDINGS: Voluntary Chapter 11 Case Summary NMG HOLDING: Moody's Upgrades CFR to B3; Outlook Remains Stable NUZEE INC: Incurs $2.8 Million Net Loss in First Quarter OMEROS CORP: Vanguard Group Has 5.37% Equity Stake as of Dec. 31 POINTCLICKCARE TECHNOLOGIES: Moody's Downgrades CFR to B2 POINTCLICKCARE TECHNOLOGIES: S&P Lowers ICR to 'B' on Acquisition PULMATRIX INC: Renaissance Entities Report 4.36% Equity Stake PYXUS INTERNATIONAL: Has Plans of Exiting Hemp, Cannabis Business QUALITY MACHINE: Seeks Cash Collateral Access Thru March 31 SALAD & CO: Files Emergency Bid to Use Cash Collateral SEAGATE TECHNOLOGY: Egan-Jones Keeps BB+ Senior Unsecured Ratings SECONDWAVE CORP: To Pay Creditors From Future Income SEMILEDS CORP: Renaissance Entities Own Less Than 1% Equity Stake SOUTHERN ROCK: March 31 Hearing on Amended Disclosures STRADTMAN PARK: Seeks Cash Collateral Access TAB RESTAURANT: Case Summary & Six Unsecured Creditors TENEO HOLDINGS: $80MM Incremental Loan No Impact on Moody's B2 CFR TENRGYS LLC: Unsecureds to Recover 100% Under Plan TRIUMPH GROUP: Posts $7.2 Million Net Income in Third Quarter TWITTER INC: Share Repurchase Program No Impact on Moody's Ba2 CFR XEROX CORP: Egan-Jones Keeps BB Senior Unsecured Ratings [*] Claims Trading Report -- January 2022 ********* 1604 ISHERWOOD: Seeks Cash Collateral Use ----------------------------------------- 1604 Isherwood, LLC asks the U.S. Bankruptcy Court for the District of Columbia for authority to use cash collateral and run the business and engage in ordinary course transactions. The Debtor filed its petition for relief on November 19, 2021, while in dispute with the creditor WCP Fund I, LLC over the payment history associated with the account. WCP Fund I threatened to pursue foreclosure without making the proper adjustments to reflect the payments made to the Debtor's mortgage account. Since the filing of the petition for relief, the Debtor has remained in possession of the subject real property and performs the daily maintenance and operations. On February 5, 2020, the Debtor and WCP Fund I entered an agreement whereby the Debtor would execute and deliver a Deed of Trust Note in the amount of $525,000 and a Deed of Trust Note containing the Assignment of Rents comprising loan documents. The Debtor collects rent in the amount of $2,100 per month. The Debtor has held the rents in its debtor-in-possession account. Its monthly utility bills associated to the use of the property is approximately $1,400. The subject real property is comprised of a four-unit property used as residential property. The stated value of each property exceeds the lien interest of WCP Fund I. Prior to the bankruptcy filing, the Debtor expended considerable effort and financial resource to make the subject real property a profitable asset. A copy of the motion is available at https://bit.ly/3uRxqHc from PacerMonitor.com. About 1604 Isherwood LLC 1604 Isherwood, LLC is a single asset real estate debtor (as defined in 11 U.S.C. Section 101(51B)). The Washington, DC-based company owns a four-unit residential property, valued at $1.11 million, that is being rented out. 1604 Isherwood filed a petition for Chapter 11 protection (Bankr. D.D.C. Case No. 21-00277) on Nov. 19, 2021, disclosing $1,112,133 in assets and $550,000 in liabilities. Zaid Alli, managing member of 1604 Isherwood, signed the petition. Judge Elizabeth L. Gunn oversees the case. William C. Johnson, Jr., Esq., at The Johnson Law Group, LLC is the Debtor's legal counsel. 230 JACOBS: Has Until April 10 to File Plan & Disclosures --------------------------------------------------------- Judge Kathryn C. Ferguson has entered an order directing 230 Jacobs Creek, LLC, to file a Plan and Disclosure Statement by April 10, 2022. If the Plan and Disclosure Statement are not filed by April 10, 2022, the case will automatically be converted without further notice. About 230 Jacobs Creek 230 Jacobs Creek is primarily engaged in renting and leasing real estate properties. 230 Jacobs Creek, LLC, filed a Chapter 11 petition (Bankr. D.N.J. Case No. 21-19232) on Nov. 30, 2021. LAW OFFICES OF SCOTT E. KAPLAN, LLC, led by Scott E. Kaplan, is the Debtor's counsel. The Debtor estimated $500,000 to $1 million in assets and $1 million to $10 million in liabilities as of the bankruptcy filing. 436 PRINCETON: Plan and Disclosures Due April 10 ------------------------------------------------ Judge Kathryn C. Ferguson has entered an order that 436 Princeton Avenue, LLC file a Plan and Disclosure Statement by April 10, 2022. If the Plan and Disclosure Statement are not filed by April 10, 2022 the case will automatically be converted without further notice. The Debtor comply with the Operating Guidelines for Chapter 11 Debtors issued by the Office of the United States Trustee particularly as they apply to the filing of the operating reports and payment of the required quarterly fees to the United States Trustee pursuant to 28 U.S.C. section 1930. 436 Princeton Avenue, LLC, filed a Chapter 11 petition (Bankr. D.N.J. Case No. 21-19232) on Nov. 30, 2021. Judge Kathryn C Ferguson presides over the case. The Debtor's counsel: Scott E. Kaplan Law Offices Of Scott E. Kaplan, LLC Tel: (609) 259-1112 E-mail: scott@sekaplanlaw.com A.G. DILLARD: Wins Cash Collateral Access Thru March 17 ------------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Virginia, Lynchburg Division, has authorized A.G. Dillard, Inc. to use cash collateral on an interim basis and provide adequate protection to Blue Ridge Bank through the final hearing on March 17, 2022. As adequate protection, the Bank will have valid, enforceable and perfected replacement liens on all of the Bank's post-petition date collateral securing the obligations. The Replacement Liens will remain effective and enforceable unless or until otherwise modified by the Court. The Replacement Liens will be perfected, enforceable, choate, and effective without the necessity of the Bank taking any other action to validate or perfect the security interests and Replacement Liens granted to the Bank. As further adequate protection to the Bank, the Budget is revised to provide only that the Debtor will make a $1,000 per week adequate protection payments to the Bank, for a total of $5,000. Only to the extent the Adequate Protection is deemed to be insufficient adequate protection under section 361 of the Bankruptcy Code, the Bank will have a superpriority administrative claim pursuant to sections 361 and 507(b) of the Bankruptcy Code, for which the Bank has the burden of proof. The March 17 final hearing is scheduled for 11 a.m. A copy of the order ad the Debtor's budget for the period from February 11 to March 8, 2022 is available at https://bit.ly/3uMbWLX 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. Blue Ridge Bank, as lender, is represented by: Michael D. Mueller, Esq. Williams Mullen 200 South 10th St., Suite 1600 Richmond, VA 23219 Email: mmueller@williamsmullen.com ADT SECURITY: Egan-Jones Keeps B- Senior Unsecured Ratings ---------------------------------------------------------- Egan-Jones Ratings Company on January 25, 2022, maintained its 'B-' foreign currency and local currency senior unsecured ratings on debt issued by The ADT Security Corporation. EJR also maintained its 'B' rating on commercial paper issued by the Company. Headquartered in Boca Raton, Florida, The ADT Security Corporation provides security systems. ADVANCE TRANSPORTATION: Wins Cash Collateral Access --------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Texas, El Paso Division, has authorized Advanced Transportation Services Inc. to use cash collateral on an interim basis in the ordinary course of business in accordance with the budget, with a 15% variance and provide adequate protection. The Debtor is directed to maintain an average accounts receivable balance on hand at least equal to the total of the currently-outstanding liens thereon, which ATSI estimates is $25,000. Creditors with an interest in the cash collateral will be provided an interim replacement lien on post-petition accounts receivable, in the same priority and extent as existed on petition date. ATSI will make interim adequate protection payments to E Advance, LLC, sufficient to amortize its claim secured by accounts receivable, in level payments calculated for an amortization over 24 months, together with interest at a rate of 4% per annum. Payments of $1,086 will be due to E Advance on the fifth days of January 2022 and of each month thereafter, until the debt is satisfied or the Court's order is supplanted by a subsequent order. If any payment is not made on time, E Advance at its option may send a 15-day notice of default in writing to the Debtor's counsel, and if the late payment is not cured on time, permission to use E Advance's cash collateral will cease. A copy of the order is available at https://bit.ly/3sJCkDg from PacerMonitor.com. About Advance Transportation Services Advance Transportation Services, Inc. filed its voluntary petition for Chapter 11 protection (Bankr. W.D. Tex. Case No. 21-30906) on Nov. 30, 2021, listing up to $500,000 in assets and up to $1 million in liabilities. Judge H. Christopher Mott presides over the case. The Law Office of E.P. Bud Kirk represents the Debtor as legal counsel. AEMETIS INC: Renaissance Entities Lower Equity Stake to 1.44% ------------------------------------------------------------- Renaissance Technologies LLC and Renaissance Technologies Holdings Corporation disclosed in a Schedule 13G/A filed with the Securities and Exchange Commission that as of Dec. 31, 2021, they beneficially own 479,185 shares of common stock of Aemetis, Inc., representing 1.44 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/738214/000103738922000009/amtx-13g_20211231.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. AEMETIS INC: State Street Has 5.48% Equity Stake as of Dec. 31 -------------------------------------------------------------- In a Schedule 13G filed with the Securities and Exchange Commission, State Street Corporation disclosed that as of Dec. 31, 2021, it beneficially owns 1,823,083 shares of common stock of Aemetis, Inc., representing 5.48 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/93751/000009375122000042/AEMETIS_INC.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. AGILE THERAPEUTICS: Vanguard Group Has 3.7% Stake as of Dec. 31 --------------------------------------------------------------- The Vanguard Group disclosed in a Schedule 13G/A filed with the Securities and Exchange Commission that as of Dec. 31, 2021, it beneficially owns 4,494,704 shares of common stock of Agile Therapeutics Inc., representing 3.7 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/102909/000110465922016388/tv0174-agiletherapeuticsinc.htm About Agile Therapeutics Agile Therapeutics, Inc. is a women's healthcare company dedicated to fulfilling the unmet health needs of today's women. The Company's product and product candidates are designed to provide women with contraceptive options that offer freedom from taking a daily pill, without committing to a longer-acting method. Its initial product, Twirla, (levonorgestrel and ethinyl estradiol), a transdermal system, is a non-daily prescription contraceptive. Agile reported a net loss of $51.85 million for the year ended Dec. 31, 2020, compared to a net loss of $18.61 million for the year ended Dec. 31, 2019. As of Sept. 30, 2021, the Company had $36.68 million in total assets, $26 million in total liabilities, and $10.68 million in total stockholders' equity. Iselin, New Jersey-based Ernst & Young LLP issued a "going concern" qualification in its report dated March 1, 2021, on the consolidated financial statements for the year ended Dec. 31, 2020, citing that the Company has generated losses since inception, used substantial cash in operations, anticipates it will continue to incur net losses for the foreseeable future and requires additional capital to fund its operating needs beyond 2021. AGSPRING MISSISSIPPI: Seeks to Continue Cash Collateral Access -------------------------------------------------------------- Agspring Mississippi Region, LLC and affiliates ask the U.S. Bankruptcy Court for the District of Delaware for authority to continue using cash collateral and provide additional adequate protection to term lenders. The Debtors require the use of the Prepetition Secured Parties' cash collateral for working capital purposes to fund the Chapter 11 assets through a value maximizing plan process. The Debtors have previously completed and closed a Court-approved sale process related to their "Big River" assets. The Debtors received approximately $18.6 million in net proceeds from the sale. The Sale Proceeds constitute the Prepetition Secured Parties' cash collateral. On October 14, 2021, the Debtors filed a Motion for Entry of an Order (a) Authorizing the Debtors to Obtain Back-Up Postpetition Financing to the Extent Necessary; (b) Authorizing the Debtors to Use Cash Collateral; (c) Granting Liens and Providing SuperPriority Administrative Expense Status; (d) Granting Adequate Protection; (e) Modifying the Automatic Stay; and (f) Granting Related Relief. By the DIP Motion, the Debtors sought approval of a senior secured, super-priority term loan in the amount of $1,500,000 provided by LVS II SPE XVIII LLC and HVS V LLC. The Court entered a final order approving the DIP Motion on November 4, 2021. Under the terms of the DIP Order, the Debtors borrowed, and ultimately repaid in full, the DIP Facility and DIP Lenders. The DIP Order also authorized the Debtors to use the cash collateral of (i) U.S. Bank, National Association, as administrative agent under the Credit Agreement, dated as of December 11, 2015, and the lenders from time to time party thereto as term lenders, and (ii) LVS and HVS, as lenders under those Secured Promissory Notes dated as of September 9, 2021, solely on the terms and conditions set forth in the DIP Order. The Debtors are not operating and, as such, do not generate cash from business income. The Sale Proceeds constitute a substantial portion of the estates' remaining assets. The Prepetition Secured Parties have allowed prepetition claims exceeding $100 million and senior liens on the Sale Proceeds. To the extent there has been any diminution of value in their collateral, the Prepetition Secured Parties also have superpriority adequate protection claims and adequate protection liens. The Debtors, in consultation with their advisors, have determined in their business judgment that the proposed Plan milestones and adequate protection payment to the Term Lenders contemplated by the Proposed Order are reasonable under the circumstances. The Plan Milestones will help ensure these Cases move towards resolution on a reasonable timeline and, after the adequate protection payment is made, the Debtors expect to have sufficient funds to pay administrative expenses in full and confirm a plan of liquidation. In addition to the adequate protection provided in the DIP Order, the Debtors will make an adequate protection payment to the Term Lenders in the amount of $9,000,000 within two business days of entry of the Proposed Order, which will be applied against and will reduce the Prepetition Term Obligations. The Debtors will, unless otherwise agreed in writing by the Bridge Lenders and the Term Lenders, on or before: (i) February 18, 2022, deliver to the Bridge Lenders and the Term Lenders a draft plan of liquidation; (ii) February 25, 2022, deliver to the Bridge Lenders and the Term Lenders a draft disclosure statement; and (iii) March 4, 2022, (x) file a disclosure statement and plan reasonably acceptable to the Bridge Lenders and the Term Lenders, (y) file a motion, in form and substance reasonably satisfactory to the Bridge Lenders and the Term Lenders, seeking approval of the disclosure statement and solicitation procedures, and (z) seek the scheduling of a combined disclosure statement and plan hearing on March 25, 2022, or the earliest date thereafter on which the Court is available. The Debtors' failure to comply with the Plan Milestones will constitute a Termination Event under the DIP Order. The adequate protection provided to the Prepetition Secured Parties via the DIP Order and Proposed Order is consensual and appropriately safeguards the Prepetition Secured Parties from diminution in the value of their interests in the Prepetition Collateral, including cash collateral. The Prepetition Secured Parties have consented to the Debtors' use of cash collateral pursuant to the terms of the DIP Order and the Proposed Order. The Debtors believe the additional adequate protection, including the payment to the Term Lenders from the Sale Proceeds, is reasonable and strikes a sound balance between the Debtors' need for cash to satisfy administrative claims incurred in the Cases and confirming a plan of liquidation, and providing the Term Lenders with a return from the sale of their collateral. A copy of the motion is available at https://bit.ly/3oOKycj from PacerMonitor.com. About Agspring Mississippi Region Operating as a holding company, Agspring Mississippi Region, LLC -- https://agspring.com/ -- focuses on grain, oilseed, and specialty crop handling, processing, and logistics operations. Agspring and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 21-11238) on Sept. 10, 2021. In the petition signed by Kyle Sturgeon, chief restructuring officer, Agspring listed $10 million to $50 million in assets and $100 million to $500 million in liabilities. Judge Craig T. Goldblatt oversees the cases. The Debtors tapped Pachulski Stang Ziehl & Jones, LLP and Dentons US, LLP as bankruptcy counsel; Faegre Drinker Biddle & Reath LLP as special counsel; Piper Sandler & Co. as investment banker; and MERU, LLC as restructuring advisor. Kyle Sturgeon, managing director at MERU, serves as the Debtors' chief restructuring officer. ALTO MAIPO DELAWARE: Lenders Oppose Extra Chapter 11 Challenge Time ------------------------------------------------------------------- Isaac Monterose of Law360 reports that the senior lenders in an affiliate of a Chilean hydroproject's Chapter 11 case objected to 60 days of extra time being given to unsecured creditors challenging the debtor's claims, arguing that the extension being granted after the previous challenge period expired would be something "no bankruptcy court has ever done." In a 14-page objection filed on Friday, February 11, 2022, a group of prepetition bank lenders, who hold more than $2 billion of Alto Maipo Delaware LLC's debt, told a Delaware bankruptcy court that granting the extension would result in a more than 130-day challenge period even though the challenge period expired earlier this 2022. About Alto Maipo Alto Maipo owns the Alto Maipo Hydroelectric Project, outside Santiago, Chile, which is currently under construction. The project comprises two run-of-the-river plants with a combined installed capacity of 531 megawatts. The run-of-the-river project is a joint venture between U.S. utility subsidiary AES Gener and Chilean mining company Antofagasta Minerals (AMSA). Alto Maipo Delaware LLC and Alto Maipo SpA sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 21-11507) on Nov. 17, 2021. Javier Dib, board president and chief restructuring officer, signed the petitions. At the time of the filing, Alto Maipo Delaware LLC estimated between $1 billion and $10 billion in both assets and liabilities. The cases are handled by Judge Karen B. Owens. The Debtors tapped Young Conaway Stargatt & Taylor, LLP and Cleary Gottlieb Steen & Hamilton LLP as legal counsel; Nelson Contador Abogados & Consultores SpA as local Chilean counsel; AlixPartners, LLP as financial advisor; and Lazard Freres & Co. LLC and Lazard Chile SpA as investment banker. Prime Clerk, LLC is the claims, noticing and administrative agent. AMERICAN AIRLINES: Egan-Jones Keeps B- Sr. Unsecured Debt Ratings ----------------------------------------------------------------- Egan-Jones Ratings Company on January 27, 2022, maintained its 'B-' foreign currency and local currency senior unsecured ratings on debt issued by American Airlines Group Inc. EJR also maintained its 'B' the rating on commercial paper issued by the Company. Headquartered in Fort Worth, Texas, American Airlines Group Inc. operates an airline that provides scheduled passenger, freight, and mail service throughout North America, the Caribbean, Latin America, Europe, and the Pacific. AMERICAN EAGLE: Court Approves RSA, Bidding Procedures ------------------------------------------------------ U.S. Bankruptcy Court Judge J. Kate Stickles approved the assumption of the restructuring support agreement and bidding procedures for senior living chain American Eagle Delaware Holding Co. LLC on Friday, Feb. 11, 2022. The RSA includes the hiring of Blueprint Healthcare Real Estate Advisors LLC to sell Vista Lake facility. Consenting Holders who constitute the holders of a majority in aggregate principal amount of the Series 2018 Bonds have signed to the RSA, which provides that the Debtors will file a Plan that provides, among other things, (a) the existing Series 2018 Bonds will be exchanged for new Series 2022 Bonds, (b) certain of the Consenting Holders have agreed to provide additional capital to the Debtors, in the form of new Series 2022A Bonds, to meet the Facilities' capital expenditures needs, which will be senior in priority to the other series of restructured bonds, and (c) certain other obligations, including amounts owed to the Asset Manager, will be discharged. Under the bid procedures, initial qualified bids are due by March 28, 2022 by 4 p.m. Eastern time, and auction is scheduled for March 31, 2022 at 10 a.m. Eastern. The sale hearing is slated for April 7, 2022 at 11:00 a.m. (prevailing Eastern Time). About American Eagle Established in 2018, Eagle Senior Living -- https://www.eagleseniorliving.org/ -- is a non-profit provider of senior living services across the United States, providing care on a daily basis to approximately 1,000 residents. Eagle Senior Living and related entities operate 15 residential senior care facilities located across the country, from Colorado, Minnesota, Wisconsin, and Ohio to Alabama, Tennessee, and Florida. On Jan. 14, 2022, American Eagle Delaware Holding Company LLC and 16 affiliated companies each filed a petition seeking relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 22-10028) to seek confirmation of their prepackaged plan. The Debtors' cases have been assigned to Judge J. Kate Stickles. Parent company American Eagle Lifecare Corporation and management company Greenbrier Senior Living are not included in the Chapter 11 filing. Greenbrier Senior Living continues to manage all of the communities. American Eagle Delaware Holding estimated assets and debt of $10 million to $50 million as of the bankruptcy filing. The Debtors are represented in the Chapter 11 cases by Polsinelli PC as legal counsel. FTI Consulting Inc. and Blueprint Healthcare Real Estate Advisors, LLC serve as financial advisor and real estate advisor, respectively. Epiq Corporate Restructuring, LLC is the claims agent and administrative advisor. AMERIVET SERVICES: Seeks Cash Collateral Access ----------------------------------------------- Amerivet Services LLC asks the U.S. Bankruptcy Court for the Eastern District of Michigan, Southern Division, for authority to use cash collateral and provide adequate protection. The Debtor seeks permission to use cash collateral as working capital in the operation of its business. The immediate use is necessary and will stabilize the Debtor's operations revenue. TBS Factoring holds a first lien on the cash collateral assets of the Debtor pursuant to its contract with the Debtor. The debt owed to TBS Factoring totals $55,139 and is fully secured. Cadence Bank holds a second lien on the cash collateral assets of the Debtor pursuant to its contract with the Debtor. The loan is SBA guaranteed and Cadence Bank is owed $55,909. This loan is fully secured. The SBA holds a third lien on the cash collateral assets to secure its debt of $209,492. This loan was obtained on April 21, 2020. When added to the other assets of the Debtor it holds as collateral this loan is fully secured. The SBA holds a fourth lien on the Cash Collateral assets of the Debtor to secure its loan of $294,421. This loan was obtained on January 31, 2022. This loan is not fully secured. The Debtor intends to provide adequate protection, to the extent of the aggregate diminution in value of cash collateral from and after the Petition Date, to the Lenders for the use of the cash collateral by: a. Maintaining the going concern value of the Debtor's business by using the Cash collateral to continue to operate the business and administer this Chapter 11 Case; and b. Providing to TBS, Cadence Bank, SBA and SBA a post petition replacement lien pursuant to 11 U.S.C. section 363(p)(2) in the accounts receivable of the Debtor, including cash generated or received by Debtor subsequent to the Petition Date, but only to the extent that TBS, Cadence Bank, SBA and SBA will be the same as existed as of the Petition Date. The Debtor also requests that the Court set a preliminary hearing on the use of cash collateral, and that at such preliminary hearing, the Court authorizes the temporary use of cash collateral consistent with the budget, in order to avoid immediate and irreparable harm to these bankruptcy estates pending a final hearing. About Amerivet Services LLC Amerivet Services LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Mich. Case No. 22-30167) on February 4, 2022. In the petition signed by Garret Brown, owner, the Debtor disclosed $1,183,528 in assets and $1,289,581 in liabilities. George E. Jacobs, Esq., at Bankruptcy Law Offices, represents the Debtor as counsel. APPLIED DNA: Incurs $4.7 Million Net Loss in First Quarter ---------------------------------------------------------- Applied DNA Sciences, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $4.72 million on $4.17 million of total revenues for the three months ended Dec. 31, 2021, compared to a net loss of $4.81 million on $1.62 million of total revenues for the three months ended Dec. 31, 2020. As of Dec. 31, 2021, the Company had $11.40 million in total assets, $3.01 million in total liabilities, and $8.39 million in total equity. Cash and cash equivalents stood at $2.7 million on Dec. 31, 2021, compared with $6.6 million as of Sept. 30, 2021. Applied DNA stated, "Our liquidity needs consist of our working capital requirements and research and development expenditure funding. As of December 31, 2021, we had working capital of $5,520,530. For the three-month period ended December 31, 2020, we used cash in operating activities of $3,701,894 consisting primarily of our loss of $4,720,911 net with non-cash adjustments of $320,751 in depreciation and amortization charges, $1,699,920 in stock-based compensation expense and $10,000 of bad debt expenses. Additionally, we had a net increase in operating assets of $1,018,201 and a net increase in operating liabilities of $6,547. Cash used in investing activities of $104,686 was for the purchase of property and equipment. We have recurring net losses, which have resulted in a net loss of $4,720,911 and generated negative operating cash flow of $3,701,894 for the three-month period ended December 31, 2021. These factors raise substantial doubt about our ability to continue as a going concern for one year from the issuance of the financial statements. The ability of the Company to continue as a going concern is dependent on the Company's ability to further implement its business plan, raise capital, and generate revenues. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern." Management's Commentary "Applied DNA had an excellent start to fiscal 2022 as we continued to capitalize on the demand for enterprise-scale COVID-19 testing while making meaningful progress in developing LinearDNA, our long-term, biotherapeutic growth platform," stated Dr. James A. Hayward, president and CEO. "Following record-high revenues in fiscal 2021, we are pleased to deliver another quarter of record revenues. Growth in our top-line was driven principally by higher demand for COVID-19 testing that was further catalyzed by the emergence of the Omicron variant, and due to the final shipment of molecular taggant under a previously awarded $1.6 million order to tag textile fibers. "The first quarter was also noteworthy for progress in positioning our LinearDNA platform as an alternative to plasmid DNA (pDNA) in the manufacture of nucleic acid-based therapeutics," continued Dr. Hayward. "Data generated from the ongoing animal clinical trials of our initial LinearDNA therapeutic candidate, our vaccine against SARS-CoV-2 in domestic felines and ferrets, as well as the application of LinearDNA constructs in a non-viral CAR-T manufacturing system alongside a European Union-based client, have been highly encouraging. With clinical development pipelines industrywide focused on therapies that require DNA for production and growing interest in pDNA alternatives with early- to late-stage manufacturing capacity that can allow therapeutic programs to evolve efficiently, we believe we are building a very compelling case for LinearDNA as a viable alternative to pDNA." Continued Dr. Hayward, "Looking ahead, we believe we are well-positioned for continued growth as investments in our clinical testing and services offering continue to yield growth. Testing momentum continued into the second quarter and contributed most of unaudited January revenues of approximately $2.0 million, and we anticipate higher demand from our largest testing client to ensure a safe start to the Spring semester for a larger on-campus population. We are also broadening the base of prospective testing clients nationwide upon authorization of our Linea 2.0 COVID-19 Assay (the "Linea 2.0 Assay") and Linea Unsupervised At-Home Sample Collection Kit (the "Collection Kit") EUA request. Existing clients have also expressed an interest in the Collection Kit as it enhances safeCircle's operational flexibility to end-users. Longer-term, we are working to ensure that our investments to support COVID-19 testing serve as the foundation for a stable and profitable clinical lab business based on a more diversified offering of molecular and genetic tests that parallel the therapeutic objectives for LinearDNA. "The next steps for our LinearDNA platform center on initiatives to optimize the design and delivery of LinearDNA, including the deployment of a Lipid Nanoparticle (LNP) system that we believe makes our platform more attractive to potential contract development and manufacturing company (CDMO) customers and enhances the development of our therapeutic pipeline. Our clinical development priorities align with our contract research organization (CRO) customers as we seek to mature these relationships into CDMO customers. With nearly one-half of our customers utilizing LinearDNA to manufacture preclinical CAR-T cells, we are working under the auspices of European Medicines Agency regulations with a European Union-based customer to define the first-ever Phase 1 LinearDNA CAR T clinical trial. Another substantial portion of our customers use LinearDNA as a template to manufacture preclinical mRNA therapeutics. Thanks to the success of COVID-19 vaccines, we believe the regulatory pathway for mRNA-based vaccines and therapeutics is well established, and developers are pursuing mRNA therapeutics for numerous indications beyond COVID-19. We believe that LinearDNA is well suited to supplant pDNA as the template for in vitro transcription, the process by which mRNA therapeutics are manufactured. In parallel, we expect to advance our veterinary COVID-19 vaccine candidate for its clinical data, its potential commercial utility, and its value as the prelude to LinearDNA vaccines for humans." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/744452/000141057822000113/apdn-20211231x10q.htm About Applied DNA Applied DNA -- http//www.adnas.com -- is a provider of molecular technologies that enable supply chain security, anti-counterfeiting and anti-theft technology, product genotyping, and pre-clinical nucleic acid-based therapeutic drug candidates. Applied DNA makes life real and safe by providing innovative, molecular-based technology solutions and services that can help protect products, brands, entire supply chains, and intellectual property of companies, governments and consumers from theft, counterfeiting, fraud and diversion. Applied DNA reported a net loss of $14.28 million for the year ended Sept. 30, 2021, compared to a net loss of $13.03 million for the year ended Sept. 30, 2020. As of Sept. 30, 2021, the Company had $14.42 million in total assets, $3.30 million in total liabilities, and $11.11 million in total equity. Melville, NY-based Marcum LLP, the Company's auditor since 2014, issued a "going concern" qualification in its report dated Dec. 9, 2021, citing that the Company incurred a net loss of $14,278,439 and generated negative operating cash flow of $13,387,955. These factors raise substantial doubt about the Company's ability to continue as a going concern. ARCHDIOCESE OF AGANA: Plans to Pay Abuse Claimants Face Objections ------------------------------------------------------------------ Haidee Eugenio Gilbert of The Guam Daily Post reports that two competing plans to compensate Guam's clergy sex abuse claimants have been drawing objections, with multiple parties asking the court to reject them for being "flawed" and for lacking "adequate information." The Archdiocese of Agana's plan includes payments of up to $34.8 million, while the committee representing abuse claimants and other creditors offers a plan that pays at least $100 million and real estate assets. The plans, or the "disclosure statements," lay out a proposal to get the archdiocese out of bankruptcy and a key part is paying some 270 abuse claimants. They are "fantasies bearing no relation to the realities of the situation," one of the archdiocese's insurers, Continental Insurance Co., said about the creditors' committee's plan that says $15 million will come from Continental. That's much higher than the $1 million that the insurance firm agreed to pay to assist the archdiocese, said Continental attorney David Christian II. Another church insurer, National Union, offered to pay $12 million to help settle the abuse claims but the creditors' committee said in its plan that $30 million will come from National. Attorney R. Todd Thompson, speaking for National, said there's no explanation offered for the "inflated value." He added coverage still is in dispute. Amendment needed Assistant U.S. Trustee Curtis Ching requested that the court require both the archdiocese and the creditors' committee to amend their disclosure statements to include "adequate information" as the Bankruptcy Code requires. For example, the archdiocese stated in its plan that it will sell the TakeCare building to or for the benefit of the survivors' trust, but later stated that it may sell the same building in order to satisfy the secured claims of First Hawaiian Bank, the U.S. Trustee pointed out. As expected, the archdiocese is objecting to the creditors' committee's plan, and the committee is objecting to the archdiocese's plan. Each asked the court to approve its plan, while also describing the other party's plan as "flawed" or "fatally flawed." U.S. District Court Chief Judge Frances Tydingco-Gatewood set a March 4 hearing date on the approval of these plans. But a trial starting Feb. 18 on the creditors' committee's lawsuit to include the assets of Catholic parishes and schools in the archdiocese's estate to pay abuse claimants would have a major bearing on the March hearing. 'Unrealistic' The creditors' committee cited, as an example, the archdiocese's disclosure of $57.26 million in real property belonging to parishes and schools that are being held in trust by the archdiocese, but only provides for $12.5 million of real property in its liquidation analysis. "As an initial matter, the debtor's plan is fatally flawed based on its inclusion of a channeling injunction for the benefit of certain 'protected parties' -- including all of the parishes and schools and such injunctions are not allowed in the Ninth Circuit," said creditors' committee attorney Robert Kugler. The archdiocese, through attorneys Bruce Anderson and John Terlaje, said the creditors' committee's proposed funding scheme is "so excessive and unrealistic." "A survivor reading this plan cannot read it and determine 'when will I get paid'?" the archdiocese attorneys said. Other objectors, supporters: The Lujan & Wolff LLP law firm, which represents a majority of the clergy sex abuse claimants, joined the creditors' committee's objection to the archdiocese plan and joined the U.S. Trustees' statement regarding the archdiocese's plan. Bank of Guam, through attorney Iain Macdonald, objected to the creditors' committee's plan. The bank extended loans to the archdiocese or its parishes and schools, now at more than $7 million. Cash deposits in the bank are at more than $5 million. "The committee plan distributes this cash to a class consisting exclusively of survivors, with nothing going to Bank of Guam," the bank said. The Boy Scouts of America, through attorney Erin Rosenberg, objected to both the plans of the archdiocese and the creditors' committee, saying neither plan adequately explains how those all affect their respective plan in the archdiocese bankruptcy case. Catholic Social Service, through attorney Minakshi Hemlani, objected to the creditors' committee's plan, saying it would force them into involuntary bankruptcy and would have a "harmful impact to the community." Catholic Social Service said the properties it owns and operates – such as those that are used as shelters for the homeless, the elderly, abused women and children, and the soup kitchen for the homeless – are among the disputed properties that the creditors' committee said should also be included in the estate to pay clergy abuse claimants. About Agana Archdiocese The Roman Catholic Archdiocese of Agana is an ecclesiastical territory or diocese of the Catholic Church in the United States that comprises the United States dependency of Guam. The Roman Catholic Archdiocese of Agana sought Chapter 11 protection (Bankr. D. Guam Case No. 19- 00001) on Jan. 9, 2019. In the petition signed by Most Rev. Michael Jude Byrnes, Coadjutor Archbishop of Agana, it listed $22.96 million in assets, with $45.66 million in liabilities. The case is handled by Honorable Judge Frances M Tydingco-Gatewood. Edwin H. Caldie, of Stinson Leonard Street LLP, is the Debtor's counsel. ARCHDIOCESE OF SANTA FE: Reverses Request to Seal Records --------------------------------------------------------- Rick Ruggles and Teya Vitu of Santa Fe New Mexican report the Archdiocese of Santa Fe and four insurance companies Monday backed away from a request to have some records sealed from public view in its bankruptcy case involving hundreds of people who allege sexual abuse by Catholic clergy. During a meeting and conference call with U.S. Bankruptcy Judge David Thuma, attorneys in the case also discussed the sale last week of the Immaculate Heart of Mary Retreat and Conference Center in Santa Fe for about $6.75 million. Modern Elder Academy, a Santa Fe-area business that offers lifelong learning opportunities, confirmed it is the buyer. The archdiocese is selling properties in an effort to raise enough money to settle its Chapter 11 bankruptcy with more than 400 claimants of clergy sexual abuse. Archdiocese attorney Thomas Walker had argued last month in a court filing the archdiocese and numerous insurers reached confidential agreements in the 1990s, when the clergy abuse scandal began to gain attention. Los Angeles attorney James Stang, an attorney for a committee that represents victims in the case, objected to the motion to keep the documents sealed. Stang wrote in a response to the archdiocese’s request “the need for transparency is overwhelming and creditors [victims] should not be kept in the dark.” During Monday’s meeting, Walker said sealing the records wasn’t necessary. If victims’ names and some other items were redacted, he said, the archdiocese and the insurance companies wouldn’t object to the documents being in the public record. "We appreciate that keeping things secret is not desirable," Walker said. Stang noted mediation in the bankruptcy case will resume in March 2022. The case, more than three years old, is on its third mediator. Walker told Thuma and the other attorneys the archdiocese will net about $6.3 million after commission and closing costs in the Immaculate Heart sale. Modern Elder Academy and the Mighty Union, a Texas-based hospitality company, vied for the property in early 2021. The archdiocese had listed the 12.4-acre property in August 2020 for $7.8 million. Immaculate Heart, at 50 Mount Carmel Road, is between Museum Hill and St. John's College and across the street from Santa Fe Preparatory School. Immaculate Heart started as a sanatorium 100 years ago and came under archdiocese ownership after World War II. The Immaculate Heart facilities include buildings with meeting rooms, classrooms and other gathering places. Modern Elder Academy majority owner Chip Conley in January 2021 purchased the 2,600-acre Saddleback Ranch near Galisteo. He plans to create a U.S. companion "midlife wisdom school" to pair with the Midlife Elder Academy he opened in 2018 north of Cabo San Lucas, Baja California, to serve as a boot camp for dealing with middle age. Conley was traveling Monday and unavailable for comment. In May 2022, Conley said in an interview he envisions a "country" version of Modern Elder Academy in Galisteo and a "city" version at Immaculate Heart. The Galisteo version will be focused more on nature, while the Immaculate Heart version may collaborate with neighboring schools, he said. "We are tremendously excited to work with the existing tenants and surrounding schools to forge enriching intergenerational collaboration on what might one day also become known as 'Education Hill,'" Modern Elder spokeswoman Joanie Griffin wrote in an email. "Most importantly," she added, "we are humbled to join such a long-standing, close-knit community and are committed to being supportive and respectful neighbors of its institutions and residents alike." About the Archdiocese of Santa Fe The Roman Catholic Church of the Archdiocese of Santa Fe -- https://www.archdiosf.org/ -- is an ecclesiastical territory or diocese of the southwestern region of the United States in the state of New Mexico. At present, the Archdiocese of Santa Fe covers an area of 61,142 square miles. There are 93 parish seats and 226 active missions throughout this area. The Archdiocese of Santa Fe sought Chapter 11 protection (Bankr. D.N.M. Case No. 18-13027) on Dec. 3, 2018, to deal with child abuse claims. It reported total assets of $49,184,579 and total liabilities of $3,700,000 as of the bankruptcy filing. Judge David T. Thuma oversees the case. The archdiocese tapped Elsaesser Anderson, Chtd. and Walker & Associates, P.C., as bankruptcy counsel, Stelzner, Winter, Warburton, Flores, Sanchez & Dawes, P.A as special counsel, and REDW LLC as accountant. ARMATA PHARMACEUTICALS: Expects to Raise $45M From Stock Offering ----------------------------------------------------------------- Armata Pharmaceuticals, Inc. has entered into a securities purchase agreement to sell Armata common stock and warrants to Innoviva Strategic Opportunities LLC, a wholly-owned subsidiary of Innoviva, Inc., Armata's largest shareholder. The gross proceeds to the Company from the transaction are expected to be $45 million, before deducting estimated offering expenses payable by the Company. Armata intends to use the net proceeds from this transaction to advance its clinical pipeline and strengthen its bacteriophage platform. The clinical pipeline is led by AP-PA02, currently under evaluation in the 'SWARM-P.a.' trial as a novel therapeutic to treat chronic Pseudomonas aeruginosa infections in people with cystic fibrosis. A second study, 'diSArm', is evaluating AP-SA02 in patients with complicated Staphylococcus aureus bacteremia. The bacteriophage platform efforts include engineering phage for improved attributes and the planned build-out of a phage-specific GMP manufacturing facility. "We are grateful to Innoviva for the strong vote of confidence in our Company and our technology that this investment represents," said Brian Varnum, chief executive officer of Armata. "Innoviva's long term support has powered the clinical development of AP-PA02 and AP-SA02. This financing also enables us to commit to new clinical indications for these lead product candidates, including non-cystic fibrosis bronchiectasis and prosthetic joint infections," Dr. Varnum concluded. Pursuant and subject to the terms and conditions of the securities purchase agreement and related agreements, Innoviva will purchase 9.0 million newly issued shares of Armata's common stock, at a price of $5.00 per share, and warrants to purchase up to 4.5 million additional shares of Armata's common stock, with an exercise price of $5.00 per share. The stock purchases are expected to occur in two tranches. Upon execution, Innoviva purchased approximately 3.6 million shares of common stock and warrants to purchase approximately 1.8 million shares of common stock for an aggregate purchase price of approximately $18.1 million. At the closing of the second tranche, upon Armata stockholders voting in favor of the transaction, Innoviva will purchase approximately 5.4 million shares of common stock and warrants to purchase approximately 2.7 million shares of common stock for an aggregate purchase price of $26.9 million. Subject to the satisfaction of certain closing conditions, including the approval of Armata's stockholders, the second closing contemplated by the securities purchase agreement is expected to occur near the end of the first quarter of 2022. The shareholders of Armata will receive a proxy statement seeking approval of the second closing in the coming weeks. Armata received legal advice in the transaction from Thompson Hine LLP, and Ladenburg Thalmann & Co. Inc. provided a fairness opinion. Willkie Farr & Gallagher LLP provided legal advice to Innoviva. About Armata Pharmaceuticals Marina del Rey, CA-based Armata is a clinical-stage biotechnology company focused on the development of pathogen-specific bacteriophage therapeutics for the treatment of antibiotic-resistant and difficult-to-treat bacterial infections using its proprietary bacteriophage-based technology. Armata is developing and advancing a broad pipeline of natural and synthetic phage candidates, including clinical candidates for Pseudomonas aeruginosa, Staphylococcus aureus, and other pathogens. In addition, in collaboration with Merck, known as MSD outside of the United States and Canada, Armata is developing proprietary synthetic phage candidates to target an undisclosed infectious disease agent. Armata is committed to advancing phage with drug development expertise that spans bench to clinic including in-house phage specific GMP manufacturing. Armata reported a net loss of $22.18 million for the year ended Dec. 31, 2020, compared to a net loss of $19.48 million for the year ended Dec. 31, 2019, and a net loss of $16.7 million for the year ended Dec. 31, 2018. As of Sept. 30, 2021, the Company had $42.67 million in total assets, $18.92 million in total liabilities, and $23.76 million in total stockholders' equity. ASHFORD HOSPITALITY: Egan-Jones Retains CCC Sr. Unsecured Rating ---------------------------------------------------------------- Egan-Jones Ratings Company, on January 26, 2022, maintained its 'CCC' foreign currency and local currency senior unsecured ratings on debt issued by Ashford Hospitality Trust, Inc. EJR also maintained its 'C' the rating on commercial paper issued by the Company. Headquartered in Dallas, Texas, Ashford Hospitality Trust, Inc. operates as a self-advised real estate investment trust focusing on the lodging industry. ATLANTIC BROOM: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Atlantic Broom Service, Inc. 600 N. Bedford Street East Bridgewater, MA 02333 Business Description: Atlantic Broom Service, Inc. offers roadway maintenance products, including replacement street sweeper brooms, blades and supplies for snow plows or traffic and highway signage for towns, cities, contracting companies, property management firms and more. Chapter 11 Petition Date: February 15, 2022 Court: United States Bankruptcy Court District of Massachusetts Case No.: 22-10173 Debtor's Counsel: Joseph S.U. Bodoff, Esq. RUBIN AND RUDMAN LLP 53 State Street Boston, MA 02109 Tel: 617-330-7000 Email: jbodoff@rubinrudman.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Clement G. Kilcy as president. 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/OSX7GMY/Atlantic_Broom_Service_Inc__mabke-22-10173__0001.0.pdf?mcid=tGE4TAMA BARTLEY INDUSTRIES: Unsecureds to Get 100 Cents on Dollar in Plan ----------------------------------------------------------------- Bartley Industries, Inc., submitted an Amended Plan of Reorganization. The Plan shows that the Debtor will have disposable income for the period described in Section 1191(c)(2) of no less than $150,000. This sum is sufficient to pay administrative costs, tax claims, and any remaining unsecured claims. The amount would have to increase should any secured creditor have to be included in the Plan. The Debtor projects that scenario to require another $2,500 per month, amortizing the secured claim of AmeriCredit. The Debtor is realizing savings under the Plan by selling property that serves as collateral, thereby eliminating interest that the estate would otherwise have to pay on the secured claim(s). The final Plan payment is expected to be paid on Feb. 28, 2026. Non-priority unsecured creditors holding allowed claims will receive distributions, which the proponent of this Plan has estimated to be 100 cents on the dollar. The Plan will treat unsecured claims as follows: * Class 3.1 - Non-priority unsecured creditor claims administrative convenience class. For allowed claims of less than $5,000, such claims will be paid in pro-rated installments over the first 6 months commencing on the Effective Date of the Plan. Class 3.1 is impaired. * Class 3.2 - Non-priority unsecured creditor claims that exceed $5,000. For allowed claims that exceed $5,000 such claims will be paid in no more than 60 installments, pro-rated at the sole discretion of the Debtor commencing when all have been fully satisfied. Class 3.2 is impaired. * Class 3.3 - Non-priority unsecured creditors bifurcated claims of AmeriCredit Financial. Paid in no more than 60 monthly pro-rated installments. No interest will be paid on any unsecured claim. Class 3.3 is impaired. The sources of cash for distribution are monthly income, cash on hand, sale of assets by alternate methods for real and personal property, and proceeds of future litigation. Attorney for the Debtor: B David Sisson, Esq. 305 E Comanche St./P O Box 534 Norman, OK 73070-0534 Tel: (405) 447-2521 Fax: (405) 447-2552 E-mail: sisson@sissonlawoffice.com A copy of the Plan dated Feb. 9, 2022, is available at https://bit.ly/3rINM2I from PacerMonitor.com. About Bartley Industries Bartley Industries Inc. offers electrical maintenance, repair and installation services. The company filed a Chapter 11 petition (Bankr. W.D. Okla. Case No. 21-12565) on September 25, 2021. In the petition signed by its president, Donna Bartley, the Debtor listed $1,733,842 in total assets and $2,003,791 in total liabilities. Judge Sarah A. Hall oversees the case. Law Offices of B David Sisson represents the Debtor, as counsel. First United Bank & Trust, as lender, is represented by: William Riley Nix, Esq. 717 North Crockett Street Sherman TX 75090 Tel: (903) 870-0212 Fax: (903) 870-0109 Email: riley_nix@yahoo.com BBS HOLDINGS: Plan Filing Deadline Extended to March 28 ------------------------------------------------------- Judge Peter C. McKittrick has granted BBS Holdings II, LLC's motion to extend the time to file a Plan and Disclosure Statement to March 28, 2022. BBS Holdings II said it will circulate the Plan and Disclosure Statement to creditors no later than March 7, 2022. About BBS Holdings Redmond, Ore.-based BBS Holdings II, LLC, filed a petition for Chapter 11 protection (Bankr. D. Ore. Case No. 21-32244) on Nov. 4, 2021, listing up to $1 million in assets and up to $10 million in liabilities. Jason Bronson, manager, signed the petition. Judge Peter C. Mckittrick oversees the case. The Debtor tapped Troutman Law Firm, P.C., as legal counsel. BIONIK LABORATORIES: Incurs $7 Million Net Loss in Third Quarter ---------------------------------------------------------------- Bionik Laboratories Corp. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $6.98 million on $183,262 of net revenues for the three months ended Dec. 31, 2021, compared to a net loss of $8.95 million on $180,409 of net revenues for the three months ended Dec. 31, 2020. For the nine months ended Dec. 31, 2021, the Company reported a net loss of $8.70 million on $1.08 million of net revenues compared to a net loss of $12.59 million on $730,698 of net revenues for the same period during the prior year. As of Dec. 31, 2021, the Company had $5.98 million in total assets, $10.42 million in total liabilities, and a total stockholders' deficit of $4.44 million. Rich Russo, chief financial officer and interim chief executive officer, commented, "We ended the third quarter with the strongest potential sales pipeline in our history, comprised of orders from our sales agreement with Kindred for their existing and soon-to-open affiliated inpatient rehabilitation hospitals, as well as many other facilities and institutions who realize the value and need for our products. Like many companies, Covid and supply chain related delays on both the BIONIK and customer placement sides of our business has resulted in lengthened delivery schedules. Sales for the quarter were flat with last year and increased 48% for the first nine months of the fiscal year. We are continuing to invest our cash of $3.4 million strategically, increasing our spend on sales and marketing programs while continuing to reduce general and administrative and other costs and expenses where possible. We remain focused on enhancing our existing products, new product development and expanding our distribution channels in the U.S. and internationally, while we explore other strategic avenues that could showcase BIONIK's advanced robotics and technology that improves the quality of life for stroke victims." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1508381/000141057822000089/bnkl-20211231x10q.htm About BIONIK Laboratories BIONIK Laboratories -- http://www.BIONIKlabs.com-- is a robotics company focused on providing rehabilitation and mobility solutions to individuals with neurological and mobility challenges from hospital to home. The Company has a portfolio of products focused on upper and lower extremity rehabilitation for stroke and other mobility-impaired patients, including three products on the market and three products in varying stages of development. Bionik Laboratories reported a net loss and comprehensive loss of $13.62 million for the year ended March 31, 2021, compared to a net loss and comprehensive loss of $25.02 million for the year ended March 31, 2020. As of Sept. 30, 2021, the Company had $12.46 million in total assets, $10.12 million in total liabilities, and $2.34 million in total stockholders' equity. Toronto, Canada-based MNP LLP, the Company's auditor since 2015, issued a "going concern" qualification in its report dated June 24, 2021, citing that the Company has experienced losses and has a working capital deficiency and an accumulated deficit. These conditions, along with other matters, raise substantial doubt about Company's ability to continue as a going concern. BOY SCOUTS: March 2022 Hearing After Claimant Group Okays --------------------------------------------------------- Randall Chase of Insurance Journal reports that the judge presiding over the Boy Scouts of America bankruptcy has delayed the start of a trial to determine whether the BSA's reorganization plan should be confirmed after an agreement with the official committee representing more than 80,000 men who say they were molested as children by Scout leaders and others resulted in several new plan provisions. During a three-hour hearing Friday, Feb. 11, 2022, Judge Laura Selber Silverstein pushed back the start of the confirmation hearing from Feb. 22 to March 9. The Boy Scouts had asked for only a one week delay, while plan opponents said they would need several weeks to analyze and respond to changes in the plan. The move follows Thursday's announcement of a tentative agreement between the BSA and the official abuse claimants committee, known as the tort claimants committee or TCC. The committee was appointed by the U.S. bankruptcy trustee to represent and act in the best interests of all sexual abuse survivors. It had long maintained that the BSA's plan to compensate child sex abuse victims was "grossly unfair," representing only a fraction of the potential liabilities of insurers and local Boy Scout councils, and a fraction of their ability to pay. But after weeks of intense discussions, the committee said it had negotiated important changes to the plan and is now recommending that abuse claimants who had voted against it change their votes. Among other things, the new plan provides abuse claimants the ability to sue insurance companies and local troop sponsoring organizations, such as churches and civic groups, that do not enter into settlements with the trustee who would oversee a $2.6 billion victims compensation fund. The new plan ratchets up the pressure on remaining opponents, including certain insurance companies and an ad hoc committee representing various Roman Catholic entities, including a church-affiliated nonprofit that insures hundreds of dioceses, religious orders and institutions. Attorneys for the ad hoc committee and the dissenting insurers argued Friday, Feb. 11, 2022, that the new plan bears no semblance to the plan that abuse claimants voted on last year. They said they deserve more time to find out how and why the changes were made, and how they affect their clients. They also said the settlement with the TCC was made possible only because the Boy Scouts, without the judge's knowledge or permission, improperly granted the TCC and certain other parties extensions to the court-ordered Feb. 4, 2022 deadline to object to the plan. An attorney for the U.S. bankruptcy trustee, which acts as a "watchdog" in Chapter 11 cases to ensure compliance with the U.S. bankruptcy code, also took the Boy Scouts to task. David Buchbinder said the plan has changed so much since last fall that the BSA needs to send out supplemental disclosures so abuse claimants and troop sponsoring organizations can fully understand what’s going on. "The debtor needs to explain how these proposed revisions improve the plan for (abuse claimants)," Buchbinder said, adding that the changes also leave troop sponsoring organizations "even more confused." Buchbinder argued in a Monday court filing the plan cannot be confirmed if provisions allowing non-debtor third parties to be released from liability without the consent of holders of abuse claim remain in place. He argued that the third-party releases for local Boy Scout councils, certain troop sponsoring organizations and settling insurers violate the due process rights of claimants and are not authorized under the bankruptcy code. Meanwhile, critics of the plan note that, under the changes unveiled Thursday, the BSA appears to be backing away from the findings of its own hired expert regarding the value of abuse claims. The Boy Scouts now assert that the conclusions of Charles Bates have not been agreed to by any other party, and that his conclusions are not a binding estimation of the BSA’s liability. The BSA also said it will consult with abuse claimants’ attorneys who are supporting the plan on what testimony Bates should provide. James Hallowell, an attorney for AIG, a dissenting insurer, said Bates' findings support insurers' arguments that the plan will result in claims values that exceed the values historically paid by the Boy Scouts before they filed for bankruptcy. Mitch Karlan, another attorney for AIG, said the Boys Scouts now apparently agree with the official abuse claimants committee that Bates' findings are wrong. "What's novel about it is that Dr. Bates is, of course the debtor's expert, who apparently is being thrown under the bus," he said. Silverstein told attorneys that she had "flagged the issue" regarding Bates. "It jumped off the page," she said. About Boy Scouts of America The Boy Scouts of America -- https://www.scouting.org/ -- is a federally chartered non-profit corporation under title 36 of the United States Code. Founded in 1910 and chartered by an act of Congress in 1916, the BSA's mission is to train youth in responsible citizenship, character development, and self-reliance through participation in a wide range of outdoor activities, educational programs, and, at older age levels, career-oriented programs in partnership with community organizations. Its national headquarters is located in Irving, Texas. The Boy Scouts of America and affiliate Delaware BSA, LLC, sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-10343) on Feb. 18, 2020, to deal with sexual abuse claims. Boy Scouts of America was estimated to have $1 billion to $10 billion in assets and at least $500 million in liabilities as of the bankruptcy filing. The Debtors have tapped Sidley Austin LLP as their bankruptcy counsel, Morris, Nichols, Arsht & Tunnell LLP as Delaware counsel, and Alvarez & Marsal North America, LLC, as financial advisor. Omni Agent Solutions is the claims agent. The U.S. Trustee for Region 3 appointed a tort claimants' committee and an unsecured creditors' committee on March 5, 2020. The tort claimants' committee is represented by Pachulski Stang Ziehl & Jones, LLP, while the unsecured creditors' committee is represented by Kramer Levin Naftalis & Frankel, LLP. BOY SCOUTS: Plan Hearing Delayed Amid New Deal Concerns ------------------------------------------------------- Leslie A. Pappas of Law360 reports that the confirmation of the Boy Scouts of America's Chapter 11 bankruptcy plan will start two weeks later than originally scheduled after several insurers, chartered organizations and the U.S. Trustee's Office demanded more information on a new deal that won support of sexual abuse survivors. At a virtual status conference Friday, February 11, 2022, Judge Laurie Selber Silverstein of the U. S. Bankruptcy Court for the District of Delaware said the Boy Scouts would need to file its amended plan, the new trust distribution procedures and the trust settlement agreement by Monday, February 14, 2022 for a two-week confirmation hearing to begin March 9, 2022. 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. BYRNA TECHNOLOGIES: Incurs $3.3M Net Loss in FY Ended Nov. 30 ------------------------------------------------------------- Byrna Technologies Inc. filed with the Securities and Exchange Commission its Annual Report on Form 10-K disclosing a net loss of $3.28 million on $42.16 million of net revenue for the year ended Nov. 30, 2021, compared to a net loss of $12.55 million on $16.57 million of net revenue for the year ended Nov. 30, 2020. As of Nov. 30, 2021, the Company had $75.31 million in total assets, $9.22 million in total liabilities, and $66.10 million in total stockholders' equity. Total cash as of Nov. 30, 2021, was $56.4 million, including $0.1 million of restricted cash, up from total cash of $9.7 million at Nov. 30, 2020, including restricted cash of $6.5 million. Fourth Quarter 2021 Results Overview Revenues for the quarter increased slightly (1.2%) to $11.2 million in Q4 FY21 from $11.0 million in Q4 FY20. Orders received during the quarter increased substantially, however, up 57.4% to $12.0 million in Q4 FY21 from $7.6 million in Q4FY20 as Q4 FY2020 sales included the fulfillment of $3.4 million of backorders received in prior quarters. Gross profit rose to $5.7 million, or 51.1% of reported net revenue, in Q4 FY21 as compared to gross profit of $4.9 million, or 44.4% of net revenue, in Q4 FY20. The improvement in gross margin was helped by improved operating efficiencies at the factories and the introduction of new higher margin products partially offset by higher inbound freight costs. Operating expenses rose to $8.8 million in Q4 FY21 from $6.2 million in Q4 FY20 and $6.7 million in Q3 FY21. The increase from Q3 FY21 was due to more than $1.02 million in additional advertising spend as Byrna looks to build brand awareness as well as $1.3 million in severance costs ($0.70 million non-cash) incurred during Q4 FY21 as the Company cut ongoing payroll costs through the elimination of several high paid positions. In addition, the Company incurred $0.25 million in additional variable costs (including credit card processing fees, online sales platform fees and outbound shipping costs) due to higher sales volume. Net loss in Q4 FY21 was $(3.2) million, or $(0.14) per share, compared to a net loss of $(1.6) million, or $(0.11) per share, in Q4 FY20, due primarily to the higher operating expenses outlined above. Excluding long-term stock-based compensation and one-time severance costs, non-GAAP adjusted net loss1 for Q4 FY21 was $(1.5) million or $(0.06) per share compared to non-GAAP adjusted net loss2 of $(1.1) million or $(0.06) per share in Q4 FY20. Bryan Ganz, CEO of Byrna, commented "It has been an amazing journey. Just two years ago, Byrna had less than $1.0 million in sales, only 96,000 people had visited our website and we had filled just 968 orders. We had no factory, no advertising budget and just ten employees. Two years later we have seen our sales increase by more than 4,500%. More than 8.6 million people have visited our website and we have filled more than 138,000 orders. "At the same time, we established two manufacturing facilities on two different continents, bringing the production of both launchers and ammunition in house and we have put into place the people, infrastructure and balance sheet necessary to take Byrna to the next level - and we did all of this in the middle of a pandemic and global supply chain crisis! "It has not been without its growing pains and there is still much work to do as we strive to improve procedures, enhance quality control processes and expand operations globally, however, on balance, I am extremely proud of what the team at Byrna has been able to accomplish in just a few short years and I look forward to working with this amazing group of people as we pursue our mission of building Byrna into a global brand by saving lives and giving folks the ability to "Live Safe."" FY 2022 Outlook Byrna believes that revenues for the first quarter of FY 2022 ending Feb. 28, 2022, will range between $8.4 and $9.2 million (down from prior guidance of $11.0 to $11.5 million). The reason for the wide range is that Byrna has $1.0 million of orders that is not sure if it can ship prior to the end of the quarter. For FY 2022 ending Nov. 30, 2022, Byrna is lowering its revenue guidance from $60 - $65 million to $55 - $60 million. The reduction in the Company's Q1 projection and its full year guidance is due to the uncertainties stemming from the global supply chain crisis. This new range reflects year-over-year growth of approximately 36% at the mid-point of the range. This projected growth is based on the Company's continued increase in brand awareness as evidenced by the increasing number of first time web visitors to Byrna.com coupled with the increasing number of brick and mortar retailers that are carrying the Byrna line of products, tempered somewhat by the current supply chain issues which, during Q1 FY22, has resulted in shortages of the raw materials and components necessary to produce both Byrna's flagship SD launcher line and the shoulder fired launchers acquired in the Mission acquisition (TCR, Mission-4 and MLR). In addition to production shortfalls that have plagued many of the Company's vendors, the Company has also been negatively impacted by extended shipping times (despite shipping everything by airfreight this quarter). The combined impact of production shortfalls and extended shipping times has forced several unplanned shutdowns at both Byrna factories during Q1 FY22. So far in 2021, the Byrna production facility in Ft. Wayne Indiana only was able to produce launchers 23 days (as of February 9th) due to out-of-stock components. As a result, launcher production for Q1 FY22 to date has been just 12,265 units. These unplanned shutdowns resulted in the Byrna SD being out of stock throughout the quarter resulting in empty shelves at the Company's dealers and out-of-stock notifications on its website. Due to the persistent and continuing supply chain issues, Byrna will not be able to build sufficient product to exceed the revised Q1 guidance of $9.2 million. On a positive note, Byrna expects to have enough raw material and components on hand by the end of this quarter to produce 30,000 units in Q2. This improvement in its inventory situation is the result of (1) a realignment of suppliers including moving production of several critical components to U.S. vendors; and (2) moving beyond the impact of the Christmas holiday and Chinese New Year shutdown periods. Over the longer term, Byrna is continuing to pursue its "all truck strategy" in which Byrna expects to be able to supply to the Ft. Wayne factory 100% of the components necessary to produce the Byrna SD from US suppliers before the end of this fiscal year. The Company also expects to have redundant supply of 100% of the components by year-end. Despite the Company's belief that it will be able to meet its production goals in the coming quarters and despite its efforts to bring on US suppliers for 100% of the inputs, there can be no assurance that the current supply chain issues, which have severely impacted the Company during Q1 FY22, will not continue to negatively impact the Company for several months or quarters to come. In addition to adversely impacting production, supply chain issues negatively impacted Byrna's new product development pipeline as suppliers were unable or unwilling to devote machine time to the production of the prototype parts that are necessary in the development of any new product. Turnaround times on prototype parts increased from roughly one week to, in many cases, more than four weeks. As a result, Byrna has not yet been able to release several critical new products including the 7-round magazine, the Byrna SD Pro and Byrna TCR. These delays have had a negative impact on Q1 FY22 sales. The Company believes that these products will all be in production by the end of the first quarter or very early in the second quarter. The two new products that the Company expects to have the greatest impact on sales in FY 2022 are the 12-gauge less-lethal finned projectile and the Byrna LE (Law Enforcement). The 12-gauge round will allow Byrna's patented and highly effective fin-tailed round projectile to be fired from any 12-gauge shotgun without having to spend more than $1,000 to purchase a dedicated launcher. This will allow the owners of the approximately 100 million shotguns (in the United States alone) to use their existing weapons system to disarm a threat at safe standoff distances without employing lethal force. The shotgun is the most common weapon used for home defense in the U.S. Allowing it to be used in a less-lethal manner could be a game changer when it comes to the widespread acceptance of less-lethal force. If all goes as planned, Byrna intends to go into production of its less-lethal 12-gauge round in Q3 of 2022, initially producing 100,000 rounds a month. Byrna expects these to retail for approximately $7.00 per round. The Byrna LE, which is specifically designed for law enforcement requirements, will have greater stopping power than the current Byrna SD range of products. This product, which the Company also expects to release to the market in Q3 of 2022 will be offered to both law enforcement and civilians. The Company expects that many owners of the Byrna HD and Byrna SD launchers will upgrade to the faster, more accurate and far more powerful Byrna LE. The Byrna LE will be produced exclusively in the U.S. A full-text copy of the Form 10-K is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/0001354866/000143774922003122/byrn20211130b_10k.htm About Byrna Technologies Headquartered in Byrna Technologies Inc. -- www.byrna.com -- develops, manufactures, and sells non-lethal ammunition and security devices. These products are used by the military, correctional services, police agencies, private security and consumers. Byrna Technologies reported net loss of $4.41 million for the fiscal year ended Nov. 30, 2019, a net loss of $2.15 million for the fiscal year ended Nov. 30, 2018, and a net loss of $2.8 million for the fiscal year ended Nov. 30, 2017. As of Aug. 31, 2021, the Company had $76.28 million in total assets, $8.02 million in total liabilities, and $68.26 million in total stockholders' equity. CARPENTER REALTY: Unsecureds to be Paid in Full in Liquidating Plan ------------------------------------------------------------------- Carpenter Realty Corporation and its Debtor Affiliates filed with the U.S. Bankruptcy Court for the District of New Jersey a Joint Small Business Plan of Liquidation dated Feb. 10, 2022. The Plan provides for the appointment of the Subchapter V Trustee, Holly S. Miller to be the Plan Administrator, pursuant to a Liquidating Trust Agreement which will be filed as a supplement to this Plan prior to Confirmation. The Liquidating Trust will take title to the Debtors' assets. While the Liquidating Trust Agreement will control, it is expected that the Plan Administrator will be responsible for (i) conducting sales of the Debtors' properties to the buyer or buyers that submit the highest and best offers through a fair and open Section 363 sales process or processes approved by the Bankruptcy Court, (ii) prior to such sales, maintaining the Debtors' properties and businesses with existing management; (iii) after such sales, winding–down the remaining aspects of the Debtors' affairs, (iv) liquidating, by conversion to cash or other methods, any remaining assets as expeditiously as reasonably possible, (v) resolving disputed claims as appropriate, (vi) administering and taking such actions as are necessary to effectuate this Plan including making distributions required by this Plan, and (vii) filing appropriate tax returns. The Plan Administrator will use the proceeds generated from the sales of properties and other assets to pay costs of administration and fund payments to creditors and to Equity Interest holders to the extent provided under this Plan. This Plan of Liquidation contemplates that the net proceeds of the sales will generate sufficient cash to pay in full: all Allowed Administrative Expense Claims, Allowed Priority Claims, Allowed Priority Tax Claims, all Allowed Secured Claims, all Allowed (Non Insider) Unsecured Claims, all Allowed Subordinated Claims (if any), all Allowed Late Filed Claims (if any), and all Allowed Penalty Claims (if any) plus interest on such claims at the applicable legal rate. This Plan contemplates that the funds remaining would be used to fund distributions to Allowed Unsecured Claims (Insider) and any distribution to holders of Equity Interests after such claims and amounts are litigated, determined and fixed. Generally, the Debtors are owners, landlords, caretakers and managers of valuable real property and buildings consisting of industrial lands, farms, commercial buildings, residences, wetlands and other real estate. At the facility in Bridgeton, NJ, Carpenter Warehousing performs various storage, warehousing and logistics services, as well as assembling fence panels for certain customers and assisting in antique automobile restorations. The Debtors' Plan anticipates that the value of property to be distributed under the Plan is not less than the Debtors' disposable income for the either a three or five year period of time. As a result, the Debtors are proceeding to confirmation under Section 1191(b) of the Code and not soliciting votes from creditors or interest holders. Class 3 Non-Insider General Unsecured Claims consist of Carpenter Realty ($420,295.34); Carpenter Warehousing ($121,592.66); Briardale ($2,519.42); Gloucester ($53,896.00); and Equity ($7,220.62). The class will receive payment in full through the Plan through post confirmation operations or from the proceeds of the property sales as applicable after entry of an Order from the Bankruptcy Court approving such payments. Class 4 Insider General Unsecured Claims will receive payment in full through the Plan through post-confirmation operations or from the proceeds of the property sales as applicable after entry of an Order from the Bankruptcy Court approving such payments contemporaneously or after payment of all Class 3 Claims are paid. Class 5 consists of Equity Interest Holders cannot be paid until all of the Claims in Classes 1, 2, 3 and 4 have been paid in full. The residual funds remaining in each respective estate will be held in escrow by the Plan Administrator and paid to these Class 5 creditors pursuant to further Order of the Bankruptcy Court or other court of competent jurisdiction fixing the entitlement and amounts of each of such claim. The Class 5 Claims are impaired. The funds necessary for the implementation of the Plan shall be from: (a) the proceeds of the sales of all of the Debtors' property, (b) the cash on hand, (c) continual business operations, plus (d) any causes of action (if any). To effectuate the distribution of the Plan Assets to its claimants, this Plan provides for the appointment of a Plan Administrator on the Effective Date. The primary directive of the Plan Administrator will be to sell all of the Debtors' property to the bidder that provides the highest and best offer pursuant to a full, fair and efficient bankruptcy sales and bid procedure process as subsequently approved by this Court under Section 363 of the Bankruptcy Code and otherwise applicable rules of this Court. The proceeds of these sales and cash on hand shall be the primary source of funding for this Plan. A full-text copy of the Joint Liquidating Plan dated Feb. 10, 2022, is available at https://bit.ly/3rJSPA7 from PacerMonitor.com at no charge. Debtors' Counsel: Damien Nicholas Tancredi, Esq. FLASTER GREENBERG PC - CHERRY HILL 1810 Chapel Ave West Cherry Hill, NJ 08002 Tel: 856-661-1900 E-mail: damien.tancredi@flastergreenberg.com About Carpenter Realty Carpenter Realty Corp. and its affiliates are owners, landlords, caretakers and managers of valuable real property and buildings consisting of industrial lands, farms, commercial buildings, residences, wetlands and other real estate. At the facility in Bridgeton, NJ, Carpenter Warehousing Inc. performs various storage, warehousing and logistics services, as well as assembling fence panels for certain customers and assisting in antique automobile restorations. Carpenter Warehousing trades under the name "Thunderbolt Automotive" for its restoration services. Carpenter Realty and its affiliates sought Chapter 11 protection (Bankr. D.N.J. Lead Case No. 21-18789) on Nov. 12, 2021. At the time of filing, Carpenter Realty disclosed $10 million to $50 million in assets and $1 million to $10 million in liabilities. Damien Nicholas Tancredi, Esq. of FLASTER GREENBERG PC - CHERRY HILL, is the Debtors' counsel. CHARM HOSPITALITY: Court Denies Plan Approval; Dismissal Sought --------------------------------------------------------------- Judge Natalie M. Cox on Feb. 9, 2022, entered an order denying confirmation of Charm Hospitality, LLC's Amended Chapter 11 Plan. A hearing on the Plan was held Dec. 2, 2021. Brandy Brown, Esq. appeared on behalf Charm Hospitality and Michael R. Brooks, Esq. appeared on behalf of Secured Creditor. Secured creditor West Town Bank & Trust had filed an objection to the Debtor's proposed plan. The U.S. Trustee on Feb. 11, 202, filed a motion for the dismissal of the case, noting that: -- As the Debtor stated, "The hotel property is now closed, the Debtor is no longer generating revenue, and the Debtor's estate (once the property is foreclose[d]) will have no assets and no net value." -- The Debtor has not filed a monthly operating report ("MOR") since its August 2021 MOR. -- The Debtor has not paid fees required under 28 U.S.C. Sec. 1930(a)(6). Quarterly Fees totaling $607.21 are past due through the fourth quarter of 2021. About Charm Hospitality Charm Hospitality, LLC is a company that owns and operates a 77-room hotel located at 3019 Idaho St., Elko, Nev. The hotel was operated under the Wingate Inn By Wyndham Elko brand. The company is owned by Paramjit Kaur. Charm Hospitality filed a Chapter 11 petition (Bankr. D. Nev. Case No. 20-50880) on Sept. 15, 2020. In the petition signed by Larry Williams, corporate representative, the Debtor disclosed $3,099,287 in assets and $7,472,409 in liabilities. Judge Bruce T. Beesley oversees the case. Kung & Brown serves as the Debtor's bankruptcy counsel. CLEVELAND IMAGING: Sanctions for Bid to Seize Property Upheld ------------------------------------------------------------- Daniel Gill of Bloomberg Law reports that the Fifth Circuit ruled that three physician investors violated an automatic stay in a Texas hospital's bankruptcy case and were properly sanctioned for suing to try to wrest control of a property in its trust. A Texas bankruptcy court’s monetary sanctions on the doctors for bringing an adversary action amounted to a correct ruling, the U.S. Court of Appeals for the Fifth Circuit affirmed Friday Doctors Camil Kreit, Samir Kreit, and Fadi Ghanem were investors and board members of Cleveland Imaging and Surgical Hospital LLC in the Houston area. About Cleveland Imaging & Surgical Hospital Headquartered in Houston, Texas, Cleveland Imaging & Surgical Hospital, L.L.C., a/k/a Doctors Diagnostic Hospital, filed for Chapter 11 bankruptcy protection (Bankr. S.D. Tex. Case No. 14-34974) on Sept. 4, 2014. In the petition signed by Douglas J. Brickley, the receiver, the Debtor was estimated to have assets at $1 million to $10 million and its liabilities at $10 million to $50 million. Judge Jeff Bohm presides over the case. Christopher Adams, Esq., at Okin Adams & Kilmer LLP, serves as the Hospital's bankruptcy counsel. CNX MIDSTREAM: S&P Raises ICR to 'BB', Outlook Stable ----------------------------------------------------- S&P Global Ratings raised its issuer credit rating on CNX Midstream Partners L.P. (CNXM) to 'BB' from 'BB-'. S&P said, "We also raised our issue-level rating on CNXM's unsecured debt to 'BB' from 'BB-'. Our recovery rating on CNXM's senior unsecured debt remains '3', indicating our expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in a payment default scenario. While our analysis indicates a recovery of greater than 90% for CNXM's unsecured debt, we generally cap our recovery ratings on the unsecured debt of companies we rate in the 'BB' category at '3'. "The stable outlook on CNXM reflects our stable outlook on CNX. The stable outlook on CNX reflects our expectation that over the next 24 months CNX will maintain modest financial policies, including its extensive hedging program, that support free cash flow generation and a balance of debt repayment and shareholder returns. "We raised our rating on CNXM to reflect our upgrade of CNX. On Feb. 14, 2022, we raised our issuer credit rating on CNX to 'BB' from 'BB-'. We view CNXM as integral to CNX given the 2020 take-private transaction, the companies' shared management and operations team, and CNXM's position as the primary midstream operator servicing CNX's exploration and production (E&P) activities. At the same time, CNX is the sole parent and largest customer of CNXM and accounts for over 70% of its revenue. CNX's production and drilling activity is the biggest driver of CNXM's revenue, thus it relies on its parent for future growth opportunities. Given this core relationship, we raised our issuer credit rating on CNXM to 'BB' to equalize it with our rating on its parent. "The stable outlook on CNXM reflects our stable outlook on its parent CNX. The stable outlook on CNX reflects our expectation that over the next 24 months CNX will maintain modest financial policies, including its extensive hedging program, that support free cash flow generation and a balance of debt repayment and shareholder returns. As a result, we expect FFO/debt to exceed 45% and debt/EBITDA will remain below 2x. Our assumptions are supported by the company's robust hedging program that should lock in pricing on around 80% production, providing a cushion to a fall in natural gas prices. "We anticipate CNXM will have flat to marginally increased volumes and throughput in 2022. We expect CNXM to sustain S&P Global Ratings-adjusted debt to EBITDA of 1.6x-2.0x in 2022. "We could lower our ratings on CNXM if we lowered our rating on CNX. We could lower our issuer credit rating on CNX if we forecast its leverage will weaken over the next two years such that its expected FFO to debt falls below 30% and its debt to EBITDA is above 3x on a sustained basis. This would most likely occur if there is a sustained material decline in natural gas prices, likely in combination with a weakening in its hedging program, or its capital spending rises without a commensurate increase in its production. Alternatively, more aggressive shareholder returns than expected could limit debt repayment and lead to weaker financial measures. "We could raise our rating on CNXM if we raised our rating on CNX. We could raise our rating if CNX can grow its reserves or diversify its assets such that its business risk compares more favorably to higher rated peers. Additionally, we would expect FFO/debt to average above 60% with debt/EBITDA below 1.5x. This could occur if natural gas prices average well above our assumptions providing increased cash flow to expand capital spending, and CNX maintained a balance of debt repayment and shareholder returns." CNX RESOURCES: S&P Upgrades ICR to 'BB', Outlook Stable ------------------------------------------------------- S&P Global Ratings raised the issuer credit and senior unsecured ratings on CNX Resources Corp. to 'BB' from 'BB-'. The recovery rating on the senior unsecured debt remains capped at '3', indicating a 50%-70% recovery in the event of a payment default, because S&P expects CNX could incur additional secured or pari passu debt on the path to the hypothetical default. S&P said, "The stable outlook reflects our expectation CNX will maintain modest financial policies, including its extensive hedging program and no fixed dividends, that should support cash flow and financial measures including FFO/debt comfortably above 30% should natural gas prices moderate from current levels. This also assumes that CNX maintains a balance between debt repayment and shareholder returns. "We believe CNX's financial measures will continue to improve. Like much of the industry, we expect CNX to pursue capital spending that drives flat to modest growth, allowing it to focus free cash flow generation to fund continued debt repayment and shareholder returns. We forecast the company will generate average free cash flow of $450 million-$500 million annually under our price assumptions, after our expectation of capital spending of $400 million-$550 million . We also note that CNX has hedged more than 80% of its expected gas production for 2022, including basis differentials, which provides a level of stability to its cash flows. "CNX's robust hedging program provides stable cash flows. CNX's extensive hedging program should provide some stability through the often volatile price cycles of natural gas, which accounts for over 90% of its production. As a result, we would not expect to see EBITDA and debt leverage swings as severe as many exploration and production (E&P) peers experienced in 2020. Nevertheless, due to hedging, CNX has not fully benefitted from the recent run-up in natural gas prices, although overtime pricing should improve as it layers in new hedges at higher prices. We have adjusted historical financial measures for noncash mark to market hedge losses, which we estimate were about $1.1 billion for the year ended Dec. 31, 2021, because they don't reflect financial performance in the current period. "We believe CNX has one of the best cost positions among its Appalachian peers. While its size and scale somewhat lag those of its largest peers in the Appalachian Basin, the company's cash operating costs (excluding general and administrative costs) which we estimate to be about $0.65-$0.70 per thousand cubic feet equivalent (mcfe) are lower than those of its peers, which typically have cash operating costs of more than $1.00/mcfe. We believe CNX's vertical integration with its wholly owned subsidiary CNX Midstream Partners L.P. (CNXM) is a key reason for its low costs relative to those of its peers because it mitigates much of its third-party gathering and processing expenses. "The stable outlook reflects our expectation that over the next 24 months CNX will maintain modest financial policies, including its extensive hedging program, that support strong free cash flow generation and a balance of debt repayment and shareholder returns. As a result, we expect FFO/debt to exceed 45% and debt/EBITDA will remain below 2x. Our assumptions are supported by the company's robust hedging program that should lock in pricing on around 80% production, providing a cushion to a fall in natural gas prices. "We could lower our issuer credit rating on CNX if we forecast its leverage will weaken over the next two years such that its expected FFO to debt falls below 30% and its debt to EBITDA is above 3x on a sustained basis. This would most likely occur if there is a sustained material decline in natural gas prices, likely in combination with a weakening in its hedging program, or its capital spending rises without a commensurate increase in its production. Alternatively, more aggressive shareholder returns than expected could limit debt repayment and lead to weaker financial measures. "We could raise our rating if CNX can grow its reserves or diversify its assets such that its business risk compares more favorably to higher rated peers. Additionally, we would expect FFO/debt to average above 60% with debt/EBITDA below 1.5x. This could occur if natural gas prices average well above our assumptions providing increased cash flow to expand capital spending, and CNX maintained a balance of debt repayment and shareholder returns." COMMUNITY HEALTH: Vanguard Group Has 7.7% Stake as of Dec. 31 ------------------------------------------------------------- The Vanguard Group disclosed in a Schedule 13G/A filed with the Securities and Exchange Commission that as of Dec. 31, 2021, it beneficially owns 10,209,068 shares of common stock of Community Health Systems Inc., representing 7.73 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/102909/000110465922016878/tv0639-communityhealthsystem.htm About Community Health Systems Inc. Community Health Systems, Inc. -- http://www.chs.net-- is publicly traded hospital company and an operator of general acute care hospitals in communities across the country. The Company, through its subsidiaries, owns or leases 83 affiliated hospitals in 16 states with an aggregate of approximately 13,000 licensed beds. Healthcare services are also provided in more than 1,000 outpatient sites of care including affiliated physician practices, urgent care centers, freestanding emergency departments, imaging centers, cancer centers, and ambulatory surgery centers. The Company's headquarters are located in Franklin, Tennessee, a suburb south of Nashville. Shares in Community Health Systems, Inc. are traded on the New York Stock Exchange under the symbol "CYH." As of Sept. 30, 2021, the Company had $15.67 billion in total assets, $16.67 billion in total liabilities, $493 million in redeemable noncontrolling interests in equity of consolidated subsidiaries, and a total stockholders' deficit of $1.49 billion. * * * As reported by the TCR on Dec. 29, 2020, S&P Global Ratings raised its issuer credit rating on Community Health Systems Inc. to 'CCC+' from 'SD' (selective default). S&P said, "The stable outlook reflects our view that the company has reduced its debt, and improved its operations and cash flow such that its debt is now more manageable; however, we believe risks to the long-term sustainability of the capital structure remain, especially given ongoing uncertainty stemming from the coronavirus pandemic." In November 2020, Fitch Ratings affirmed the Long-Term Issuer Default Ratings (IDR) of Community Health Systems, Inc. (CHS) and subsidiary CHS/Community Health Systems, Inc. at 'CCC'. CRESTWOOD EQUITY: Moody's Affirms Ba2 CFR on Oasis Midstream Deal ----------------------------------------------------------------- Moody's Investors Service affirmed Crestwood Equity Partners LP's (CEQP) ratings including its Ba2 Corporate Family Rating and its Ba2-PD Probability of Default Rating, following CEQP's closing of Oasis Midstream Partners LP (OMP) acquisition. CEQP's outlook remains stable. Moody's also affirmed Crestwood Midstream Partners LP's (CMLP) Ba3 senior unsecured notes rating. CMLP's outlook remains stable. Concurrently, Moody's upgraded OMP's senior unsecured notes rating to Ba3 from B3. Moody's also withdrew OMP's corporate ratings, including its B2 CFR and its B2-PD PDR. With the closing of the acquisition transaction in February 2022, OMP's senior unsecured notes were assumed by CMLP, a subsidiary of CEQP, and are now the obligations of CMLP, pari passu with CMLP's existing senior unsecured notes. This action concludes the review for possible upgrade initiated on October 27, 2021. Affirmations: Issuer: Crestwood Equity Partners LP Corporate Family Rating, Affirmed Ba2 Probability of Default Rating, Affirmed Ba2-PD Pref. Stock Non-cumulative Preferred Stock, Affirmed B1 (LGD6) Issuer: Crestwood Midstream Partners LP Senior Unsecured Regular Bond/Debenture, Affirmed Ba3 (LGD4) Upgrades: Issuer: Oasis Midstream Partners LP Senior Unsecured Regular Bond/Debenture, Upgraded to Ba3 (LGD4) from B3 (LGD5) (previously under review for upgrade) Withdrawals: Issuer: Oasis Midstream Partners LP Corporate Family Rating, Withdrawn, previously rated B2 (previously under review for upgrade) Probability of Default Rating, Withdrawn, previously rated B2-PD (previously under review for upgrade) Speculative Grade Liquidity Rating, Withdrawn, previously rated SGL-3 Outlook Actions: Issuer: Crestwood Equity Partners LP Outlook, Remains Stable Issuer: Crestwood Midstream Partners LP Outlook, Remains Stable Outlook Actions: Issuer: Oasis Midstream Partners LP Outlook, Changed To Rating Withdrawn From Under Review RATINGS RATIONALE CEQP's Ba2 CFR reflects its basin diversification, good distribution coverage, offset by its meaningful volume risk exposure. The rating also reflects the company's relatively moderate leverage compared to peers and its ability to generate significant free cash flow that will allow the company to further reduce its debt. CEQP also benefits from strong distribution coverage, with coverage likely to exceed 2x in 2021. CEQP is constrained by its relatively smaller scale, the inherent volumetric risks in its gathering and processing business, customer counterparty risk and still significant concentration of its operations in the Bakken shale. CEQP's acquisition of OMP added scale to its strategically core Williston Basin assets and will boost cash flow in an essentially leverage neutral manner. The good operational and geographical fit of OMP's assets provides meaningful synergy opportunities, which CEQP estimates to be more than $25 million annually. OMP's notes are pari passu with CMLP's $1.8 billion notes and together are unsecured, effectively subordinating their claim on the company's assets to CMLP's $1.25 billion senior secured revolving credit facility due in December 2026. The substantial amount of secured debt in the capital structure results in the notes being rated Ba3, one notch below CEQP's Ba2 CFR. Moody's withdrew the ratings of OMP pursuant to its acquisition by CEQP and the assumption of its debt by CMLP. Following the consummation of the transaction, OMP merged into CMLP and CMLP assumed all of OMP's obligations including OMP's $450 million senior notes due 2029. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS CEQP's ratings may be upgraded if the company increases its scale while also improving its business profile by reducing volumetric risk and improving cash flow stability. Debt/EBITDA below 3.5x and good distribution coverage would also be supportive of an upgrade. A downgrade of CEQP is possible if the company aggressively increases shareholder returns, engages in debt funded acquisitions or weakens its business profile. Debt/EBITDA above 4.5x could result in a ratings downgrade. Houston, Texas-based master limited partnership CEQP, through its subsidiaries develops, acquires, owns or controls, and operates primarily fee-based assets and operations within the energy midstream sector. Its primary operations are located in the Bakken, Barnett and Marcellus Shales and the Powder River and Permian Basins. The principal methodology used in these ratings was Midstream Energy published in December 2018. CYTOSORBENTS CORP: Vanguard Group Has 5.1% Equity Stake ------------------------------------------------------- The Vanguard Group disclosed in a Schedule 13G/A filed with the Securities and Exchange Commission that as of Dec. 31, 2021, it beneficially owns 2,209,165 shares of common stock of CytoSorbents Corp., representing 5.08 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/102909/000110465922016944/tv0705-cytosorbentscorp.htm About CytoSorbents Based in Monmouth Junction, New Jersey, CytoSorbents Corporation is engaged in critical care immunotherapy, specializing in blood purification. Its flagship product, CytoSorb, is approved in the European Union with distribution in more than 70 countries around the world as an extracorporeal cytokine adsorber designed to reduce the "cytokine storm" or "cytokine release syndrome" seen in common critical illnesses that may result in massive inflammation, organ failure and patient death. Cytosorbents reported a net loss of $7.84 million for the year ended Dec. 31, 2020, a net loss of $19.26 million for the year ended Dec. 31, 2019, and a net loss of $17.21 million for the year ended Dec. 31, 2018. As of Sept. 30, 2021, the Company had $95.07 million in total assets, $24.46 million in total liabilities, and $70.61 million in total stockholders' equity. DBMP LLC: Loses Bid to Toss Asbestos Victims' Suit -------------------------------------------------- Daniel Gill of Bloomberg Law reports that an asbestos victim group will get to proceed with a lawsuit to consolidate building material maker CertainTeed LLC's assets with those of its bankrupt unit that was spun off to handle related litigation. Judge J. Craig Whitley's ruling to deny the spinoff DBMP LLC's motion to dismiss gives the victim plaintiffs a chance to seek compensation from a greater pool of assets. "Substantive consolidation" of a bankrupt company with a non-bankrupt company -- in this case, CertainTeed, a subsidiary of Saint-Gobain SA -- is rare, said the judge from the U.S. Bankruptcy Court for the Western District of North Carolina. About DBMP LLC DBMP, LLC is a North Carolina limited liability company and the direct parent company of Millwork & Panel LLC, which manufactures vinyl siding and polyvinyl chloride (PVC) trim products for the construction market at facilities it owns in Claremont, N.C. and Social Circle, Ga. It is a defendant in tens of thousands of asbestos-related lawsuits pending in courts throughout the United States. DBMP sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D.N.C. Case No. 20-30080) on Jan. 23, 2020. At the time of the filing, the Debtor disclosed assets of between $500 million and $1 billion and liabilities of the same range. Judge J. Craig Whitley presides over the case. The Debtor tapped Jones Day as bankruptcy counsel; Bates White LLC as consultant; Robinson, Bradshaw & Hinson, P.A. and Schiff Hardin LLP as special counsel; and Epiq Corporate Restructuring, LLC as claims, noticing and balloting agent. The Debtor also tapped Donlin, Recano and Company, Inc., to oversee the submission of personal injury questionnaires by claimants. The official committee of asbestos personal injury claimants appointed in the Debtor's case tapped Robinson & Cole, LLP and Caplin & Drysdale, Chartered as its bankruptcy counsel. Hamilton Stephens Steele Martin, PLLC is the committee's local counsel. The court approved the appointment of Sander L. Esserman as the future claimants' representative in the Debtor's case. Mr. Esserman tapped Young Conaway Stargatt & Taylor, LLP and Stutzman, Bromberg, Esserman & Plifka, a Professional Corporation, as his bankruptcy counsel. Alexander Ricks PLLC is the FCR's North Carolina counsel. DGS REALTY: Wins Cash Collateral Access Thru March 4 ---------------------------------------------------- The Hon. Bruce A. Harwood of the U.S. Bankruptcy Court for the District of New Hampshire has authorized DGS Realty, LLC to use the cash collateral of PHH Mortgage Services, as servicer for U.S. Bank National Trust Association, as Trustee for Lehman Brothers Small Balance Commercial Mortgage Pass Through Certificates, Series 2006-3. The Debtor is permitted to use and expend the proceeds of cash collateral to pay the costs and expenses incurred in the ordinary course of its business during the period from February 1, 20122 through March 4, 2022, or the date on which the Court enters an order revoking Debtor's right to use cash collateral in accordance with the budget. The Cash Flow Projection provides total cash payout of $10,406 per month during the period of Jan. 1 through March 31, 2019 PHH Mortgage is granted a postpetition replacement lien and security interest in all postpetition property of the estate of the same type against which it helds validly perfected and not avoidable liens and security interests as of the Petition Date. The replacement lien will maintain the same priority, validity and enforceability as such liens on the cash collateral, but will be recognized only to the extent of any diminution in the value of the collateral resulting from the use of cash collateral pursuant to the Order. In addition, the Debtor is expected to timely file monthly operating reports during the case through the Court's electronic filing system and pay PHH Mortgage its monthly payment of $6,750, plus real estate tax escrow in the amount of $2,802, each month commencing February 1, 2022. These payments will be the normal payments going forward. These payments will continue pending further order of the Court. Absent the Court's entry of a further order extending the authorization, authority to use cash collateral will terminate upon the earliest of: a. the last day of the Use Period; b. the earliest date on which a final hearing on cash collateral requirements can be held under the notice and service requirements of Bankruptcy Rules 4001(b) and (d) and 7004(h); c. appointment of a Trustee pursuant to Bankruptcy Code Section 1104; d. conversion of the Debtor's case to one under Chapter 7 of the Bankruptcy Code; e. dismissal of the Debtor's case; or f. entry of an order granting a Motion for Relief from Automatic Stay with respect to any property that is PHH Mortgage's collateral. A hearing on the Debtor's further use of cash collateral will be held on March 3, 2022 at 9 a.m. A full-text copy of the order and the Debtor's budget for the period from February 1 to March 4, 2022 is available at https://bit.ly/3sFbmgm from PacerMonitor.com. The Debtor projects $95,277 in total income and $9,552 in total expenses for February 2022. About DGS Realty Based in Concord, New Hampshire, DGS Realty, LLC, is a real estate limited liability company. Formed around May 10, 2017, the company is owned by David H. Booth, Manager, Stephen W. Booth, and Gregory A. Booth, each having a 1/3 interest. DGS Realty filed a Chapter 11 petition (Bankr. D.N.H. Case No. 22-10028) on January 24, 2022. In the petition signed by David H. Booth, the manager, the Debtor estimated assets and debts between $1 million and $10 million. Judge Bruce A. Harwood oversees the case. Representing the Debtor as counsel is Eleanor Wm Dahar, Esq., at Victor W. Dahar Professional Association. DUPONT STREET: Unsecured Claims Unimpaired in Plan -------------------------------------------------- Dupont Street Developers, LLC, submitted a Plan and a Disclosure Statement. The Plan provides for a transfer of the Property and the Purchased Assets to the Dupont Lender in satisfaction of the Dupont Lender Claim and DIP Claim. As part of the Sale, DuPont Lender will provide sufficient Available Cash to fund distributions under the Plan and the necessary capital to complete the remediation and development of the Property. Under the Plan, Class 2 DuPont Lender Claim totaling $63,996,103. The holder of an Allowed Class 2 Dupont Lender Claim will receive on account of and in full satisfaction of such Claim on or about the Effective Date the transfer of the Property free and clear of all liens, claims and encumbrances (subject to the Dupont Lender's mortgage, which, at the discretion of the Dupont Lender, may be assigned to a lender to the Dupont Lender). Class 2 is impaired. Class 5 General Unsecured Claims totaling $8,616,497. Each holder of an Allowed Class 5 General Unsecured Claim will receive from the Available Cash on account of such claim payment in full of their Allowed Class 5 General Unsecured Claim, and simple interest at the Federal Judgment Rate as to Class 5 per annum from the Petition Date, with principal being paid in full prior to any payments being made on account of such interest. Class 5 is unimpaired. Attorneys for DuPont Street Developers: Robert M. Sasloff, Esq. ROBINSON BROG LEINWAND GREENE GENOVESE & GLUCK P.C. 875 Third Ave. New York, New York 10022 Tel: (212) 603 6300 E-mail: rms@robinsonbrog.com A copy of the Disclosure Statement dated Feb. 9, 2022, is available at https://bit.ly/34D9rRc from PacerMonitor.com. About Dupont Street Developers Brooklyn, N.Y.-based Dupont Street Developers, LLC, is engaged in activities related to real estate. It owns premises at 49-55 Dupont St., Brooklyn, N.Y., having a current value of $57.12 million. Dupont Street Developers filed for Chapter 11 protection (Bankr. E.D.N.Y. Case No. 21-40664) on March 17, 2021. Bo Jin Zhu, manager, signed the petition. In the petition, the Debtor disclosed $57,125,000 in assets and $58,925,731 in liabilities. Judge Nancy Hershey Lord oversees the case. Robinson Brog Leinwand Greene Genovese & Gluck P.C., led by Mitchell A. Greene, Esq., is the Debtor's legal counsel. EKSO BIONICS: AZ Fund, Azimut Investments Report 3.3% Equity Stake ------------------------------------------------------------------ AZ Fund 1 AZ Allocation - Trend and Azimut Investments S.A. disclosed in a Schedule 13G/A filed with the Securities and Exchange Commission that as of Dec. 31, 2021, they beneficially own 423,000 shares of common stock of Ekso Bionics Holdings, Inc., representing 3.34 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/1549084/000121390022006643/ea155049-13ga1azimut_ekso.htm About Ekso Bionics Ekso Bionics -- http://www.eksobionics.com-- is a developer of exoskeleton solutions that amplify human potential by supporting or enhancing strength, endurance and mobility across medical and industrial applications. Founded in 2005, the Company continues to build upon its expertise to design some of the most cutting-edge, innovative wearable robots available on the market. The Company is headquartered in the Bay Area and is listed on the Nasdaq CapitalMarket under the symbol EKSO. Ekso Bionics reported a net loss of $15.83 million for the year ended Dec. 31, 2020, a net loss of $12.13 million for the year ended Dec. 31, 2019, and a net loss of $26.99 million for the year ended Dec. 31, 2018. As of Sept. 30, 2021, the Company had $50.73 million in total assets, $11.67 million in total liabilities, and $39.06 million in total stockholders' equity. EMPACADORA Y PROCESADORA: Voluntary Chapter 11 Case Summary ----------------------------------------------------------- Debtor: Empacadora Y Procesadora Del Sur, Inc. Parque Ind San Idelfonso Suite 2 Coamo, PR 00769 Chapter 11 Petition Date: February 15, 2022 Court: United States Bankruptcy Court District of Puerto Rico Case No.: 22-00354 Debtor's Counsel: Alexis Fuentes Hernandez, Esq. FUENTES LAW OFFICE PO Box 9022726 San Juan, PR 00902-2627 Tel: 787-722-5215 E-mail: alex@fuenteslaw.com Total Assets: $11,604,565 Total Liabilities: $10,598,204 The petition was signed by Carlos C. Rodriguez Alonso as president. A full-text copy of the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/FWUWPEI/EMPACADORA_Y_PROCESADORA_DEL_SUR__prbke-22-00354__0001.0.pdf?mcid=tGE4TAMA ENRAMADA PROPERTIES: Examiner Sought to Review Property Transfer ---------------------------------------------------------------- Maria Espinoza asks the U.S. Bankruptcy Court for the Central District of California to appoint an examiner in the Chapter 11 cases of Enramada Properties, LLC. James R. Selth, counsel to Espinoza, explains an examiner is needed to analyze the Debtor's avoiding power claims against insiders, including the transfer of a real property located at 13702 Oak St., Whittier, CA 90605, from Enramada to Juan and Sylvia Castro, the parents of one of the Debtor's principals. Enramada's Chapter 11 case is jointly administered with the cases of individual debtors Oscar Rene Novoa and Sylvia Novoas. Enramada acquired the Oak Street property in 2014. Over a six-month period in 2017, the Oak Street Property was transferred to the Castros four times, with title ending up in the name of the Castros by the final Grant Deed recorded in December 2017. Selth contends the transfer of the Oak Street Property clearly constitutes grounds to appoint an examiner to independently investigate the transaction, and any other insider dealings involving the Debtors. The examiner must report to the Court on the existence and collectability of avoidance claims. Selth says Enramada and the Novoas have refused to comply with their fiduciary duty to avoid and recover the Oak Street Property for the benefit of the bankruptcy estate. Espinoza is scheduled in the Enramada case as holding three undisputed unsecured claims totaling $84,622. She is also scheduled in the Novoas' case as holding an undisputed unsecured claim for $75,000, which appears to be a duplicate of two of the three Enramada claims. She is represented in the case by: James R. Selth, Esq. WEINTRAUB & SELTH, APC 11766 Wilshire Boulevard, Suite 1170 Los Angeles, CA 90025 Telephone: (310) 207-1494 Facsimile: (310) 442-0660 E-mail: jim@wsrlaw.net About Enramada Properties Enramada Properties, LLC, based in Whittier, California, holds a joint tenancy interest in a property located in Los Angeles, California valued at $325,000. It also owns two real properties in Whittier having an aggregate current value of $1.1 million. Enramada Properties filed for Chapter 11 bankruptcy (Bankr. C.D. Cal. Case No. 19-19869) on Aug. 22, 2019. In the petition signed by Sylvia Novoa, managing member, the Debtor listed total assets of $1,429,000 against total liabilities of $1,724,414. The Hon. Julia W. Brand oversees the case. Andrew S. Bisom, Esq., at The Bison Law Group, serves as the Debtor's bankruptcy counsel. The Debtors submitted a Second Amended Disclosure Statement in support of Amended Plan of Reorganization dated November 22, 2021. FORUM DINER: Case Summary & 12 Unsecured Creditors -------------------------------------------------- Debtor: Forum Diner Corp. 315 W Main Street Bay Shore, NY 11706 Business Description: Forum Diner Corp. is part of the restaurants industry. Chapter 11 Petition Date: February 15, 2022 Court: United States Bankruptcy Court Eastern District of New York Case No.: 22-40265 Debtor's Counsel: Lawrence F. Morrison, Esq. MORRISON TENENBAUM, PLLC 87 Walker Street, Second Floor New York, NY 10013 Tel: 212-620-0938 Fax: 646-390-5095 E-mail: info@m-t-law.com Total Assets: $85,214 Total Liabilities: $1,480,475 The petition was signed by Chris Moraitis as president. A full-text copy of the petition containing, among other items, a list of the Debtor's 12 unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/QCOCPUQ/Forum_Diner_Corp__nyebke-22-40265__0001.0.pdf?mcid=tGE4TAMA FREDDIE MAC: Reports $12.11 Billion Net Income in 2021 ------------------------------------------------------ Federal Home Loan Mortgage Corporation filed with the Securities and Exchange Commission its Annual Report on Form 10-K. For the year ended Dec. 31, 2021, the Company reported net income of $12.11 billion on $21.95 billion of net revenues compared to net income of $7.32 billion on $16.66 billion of net revenues for the year ended Dec. 31, 2020. The 65% year-over-year increase in net income was primarily driven by higher net revenues and a credit reserve release in Single-Family. Freddie Mac also disclosed net income of $2.74 billion on $5.56 billion of net interest income for the quarter ended Dec. 31, 2021, compared to net income of $2.91 billion on $5.02 billion of net revenues for the quarter ended Dec. 31, 2020. As of Dec. 31, 2021, Freddie Mac had $3.02 trillion in total assets, $2.99 trillion in total liabilities, and $28.03 billion in total equity. "In 2021, Freddie Mac made significant progress responsibly advancing our mission of making home possible, helping nearly five million families rent, buy, or refinance a home. The company continued to build financial strength by adding nearly $12 billion to retained earnings, improving our safety and soundness, and moving us closer to our capital target. We accomplished this while effectively managing our risks, which allows us to support our mission through the economic cycle and particularly in times of crisis. We begin 2022 with much to be proud of—and even more to accomplish in the year ahead," said Michael J. DeVito, chief executive officer. A full-text copy of the Form 10-K is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1026214/000102621422000031/fmcc-20211231.htm About Freddie Mac Federal National Mortgage Association (Freddie Mac) is a GSE chartered by Congress in 1970. The Company's public mission is to provide liquidity, stability, and affordability to the U.S. housing market. Freddie Mac does this primarily by purchasing residential mortgage loans originated by lenders. In most instances, it packages these loans into guaranteed mortgage-related securities, which are sold in the global capital markets and transfer interest-rate and liquidity risks to third-party investors. In addition, the Company transfers mortgage credit risk exposure to third-party investors through its credit risk transfer programs, which include securities- and insurance-based offerings. The Company also invests in mortgage loans and mortgage-related securities. The Company does not originate loans or lend money directly to mortgage borrowers. Since September 2008, Freddie Mac has been operating under conservatorship with FHFA as Conservator. The support provided by Treasury pursuant to the Purchase Agreement enables the company to maintain access to the debt markets and have adequate liquidity to conduct its normal business operations. The amount of funding available to Freddie Mac under the Purchase Agreement was $140.2 billion at Dec. 31, 2021. Pursuant to the Purchase Agreement, Freddie Mac will not be required to pay a dividend to Treasury on the senior preferred stock until it has built sufficient capital to meet the capital requirements and buffers set forth in the Enterprise Regulatory Capital Framework. As a result, the company was not required to pay a dividend to Treasury on the senior preferred stock in December 2021. As the company builds capital during this period, the quarterly increases in its Net Worth Amount have been, or will be, added to the aggregate liquidation preference of the senior preferred stock. The liquidation preference of the senior preferred stock increased to $98.0 billion on December 31, 2021 based on the $2.9 billion increase in the Net Worth Amount during the third quarter of 2021, and will increase to $100.7 billion on March 31, 2022 based on the $2.7 billion increase in the Net Worth Amount during the fourth quarter of 2021. GENON ENERGY: 2nd Cir. Greenlights Alix Suit vs. McKinsey --------------------------------------------------------- AlixPartners LLP and McKinsey & Co., Inc., are major competitors in a niche bankruptcy advising market involving estates with assets in excess of one billion dollars. Jay Alix, as assignee of AlixPartners, sued McKinsey & Co., Inc., three of its subsidiaries, and several current or former McKinsey employees under the Racketeer Influenced and Corrupt Organizations Act ("RICO"), 18 U.S.C. Section 1961 et seq., and state law. The amended complaint alleges McKinsey secured lucrative consulting assignments in this market by knowingly and repeatedly filing disclosure statements in the Bankruptcy Court containing incomplete, misleading, or false representations concerning conflicts of interest. Alix alleges this pattern of misrepresentations to the Bankruptcy Court resulted in injury to AlixPartners through the loss of engagements it otherwise would have secured and of substantial revenues those assignments would have generated, as well as through the loss of the opportunity to compete for them in an unrigged market. Alix contends AlixPartners was directly harmed by McKinsey's conduct because, had McKinsey truthfully and timely disclosed its conflicts to the Bankruptcy Court, McKinsey would have been disqualified from obtaining at least some of the assignments it secured. In turn, Alix believes AlixPartners, because of its major presence in this niche market, would have been retained in at least some of the cases. Alix also alleges a "pay-to-play" scheme under which McKinsey arranged meetings between its clients and bankruptcy attorneys in exchange for exclusive bankruptcy assignment referrals from those attorneys. Consistent with this scheme, Alix alleges that McKinsey offered to introduce AlixPartners to its clients if Alix would "drop[] the issues he had raised concerning McKinsey's acknowledged pay-to-play scheme and its illegal disclosure declarations." The District Court for the Southern District of New York (Jesse M. Furman, District Judge) dismissed Alix's RICO claims under Federal Rule of Civil Procedure 12(b)(6). The District Court concluded that Alix's allegations were insufficient to establish the required causal connection between McKinsey's purported RICO violations and AlixPartners's injury. An appeal followed. The dispositive issue is whether the amended complaint adequately alleges proximate causation under RICO. The United States Court of Appeals for the Second Circuit holds that it does and, consequently, vacates and remands for further proceedings. Jurisdiction The amended complaint initially contained several state-law claims in addition to the federal RICO claims at issue on this appeal. After the district court dismissed the federal claims under Rule 12(b)(6), it directed the parties to brief whether an independent basis for federal jurisdiction over the remaining state law claims existed. Alix responded by filing a notice to dismiss without prejudice, under Federal Rule of Civil Procedure 41, his state law claims, which he later attempted to retract. In response, the district court ruled that Alix's voluntary Rule 41 dismissal of state law claims was effective and could not be withdrawn. The court also denied Alix's motion for entry of judgment on his federal RICO claims and his alternative request to revive the state law claims. Ordinarily, immediate appeal is unavailable to a plaintiff, such as Alix, who seeks review of an adverse decision on some of his claims by voluntarily dismissing the others without prejudice. That is because the Second Circuit's jurisdiction is limited to appeals from final decisions of the district court, which are orders that end the litigation on the merits and leave nothing for the court to do but execute the judgment. Because dismissal without prejudice does not preclude reinstatement of the same claims, the Second Circuit does not generally permit an appeal upon dismissal without prejudice. However, the Second Circuit has previously held that "a plaintiff may cure such defect in appellate jurisdiction by disclaiming an intent to revive the dismissed claim (effectively, converting it to a dismissal with prejudice, for reasons of estoppel)." Alix made a similar effort to cure the jurisdictional defect in this case. When filing this appeal, he disclaimed his state law claims by filing an addendum to Form C, which states that he would "not pursue his appeal of the district court's July 6, 2020 ruling" and that he "hereby discontinues with prejudice the State Law Claims." The circuit court judges found this statement was sufficient to cure any defect in appellate jurisdiction and to permit us to review the district court's order dismissing Alix's RICO claims. RICO Claims To establish a RICO claim, a plaintiff must prove: (1) a violation of the RICO statute, (2) an injury to business or property, and (3) that the injury was caused by the RICO violation. This appeal implicates the causation element, pursuant to which a plaintiff must plausibly allege that the RICO violations were (1) "the proximate cause of his injury, meaning there was a direct relationship between the plaintiff's injury and the defendant's injurious conduct"; and that they were (2) "the but-for (or transactional) cause of his injury, meaning that but for the RICO violation, he would not have been injured." The dispositive issue is whether Alix plausibly alleges proximate cause. The district court concluded that Alix failed to allege proximate cause for three reasons. First, the alleged harm to AlixPartners, it concluded, was directly caused by the decisions of the various debtors' trustees not to hire AlixPartners rather than by McKinsey's misconduct. Second and relatedly, the court concluded that the existence of several intervening factors rendered the relationship between the alleged fraud and injury too indirect and remote. Lastly, the court believed there was "at least one 'better situated' party," such as the U.S. Trustee, "who can seek appropriate remedies for the most direct consequences of McKinsey's alleged misconduct." The Second Circuit disagrees with the district court's analysis and conclusions as to the 13 engagements. In general, the Second Circuit concludes its analysis conflated proof of causation and proof of damages and that it did not draw all reasonable inferences in Alix's favor. More specifically (and more importantly) the Second Circuit believes the district court gave insufficient consideration to the fact that McKinsey's alleged misconduct targeted the federal judiciary. As a consequence, this case requires them to focus on the responsibilities that Article III courts must shoulder to ensure the integrity of the Bankruptcy Court and its processes. Litigants in all of the courts are entitled to expect that the rules will be followed, the required disclosures will be made, and that the court's decisions will be based on a record that contains all the information applicable law and regulations require. If McKinsey's conduct has corrupted the process of engaging bankruptcy advisors, as Alix plausibly alleges, then the unsuccessful participants in that process are directly harmed. The fact that this case invokes the Second Circuit's supervisory responsibilities makes its resolution of it sui generis and of little, if any, application to "ordinary" RICO cases where these responsibilities are not front and center. But in light of these special considerations, the Second Circuit holds Alix has plausibly alleged proximate cause with respect to all 13 engagements. The fact that this case is not within the mine-run of civil RICO cases means that its proximate cause analysis differs somewhat from the analysis in cases such as Bridge v. Phoenix Bond & Indem. Co., 553 U.S. 639 (2008), Anza v. Ideal Steel Supply Co., 547 U.S. 451 (2006), or Empire Merchants, LLC v. Reliable Churchill LLLP, 902 F.3d 132 (2d Cir. 2018), the Second Circuit notes. Alix argues that the causal chain in this case is likewise sufficiently direct for Rule 12(b)(6) purposes. Alix reasons that, because causation "need only be probable," he sufficiently alleged proximate causation by showing that AlixPartners would have received at least one of the engagements from which McKinsey likely would have been disqualified based on AlixPartners's record of success in securing engagements. The district court held that Alix failed to plead proximate cause because intervening events might have broken the chain of causation, such as the Bankruptcy Judge determining whether an advisor was necessary at all and the Trustee selecting a particular advisor, which might not have been AlixPartners. We agree that these might have been intervening events if Alix had somehow learned, before any assignments had been made, that McKinsey had been filing false statements and then sued for the fees it anticipated it would have received if McKinsey had told the truth. However, this is not such a case, the Second Circuit notes. Alix sued after the assignments had already been awarded. Consequently, the Second Circuit says it need not speculate whether the Bankruptcy Judge and the Trustee would have thought an advisor was necessary. The Second Circuit says it is certainly reasonable to infer that the Bankruptcy Court, the U.S. Trustee, and the parties involved who thought an advisor was needed in thirteen cases would continue to think so after learning that their selected advisor was ineligible because of fraud and that they would, at that point, make an alternative selection. And it is also a reasonable inference that, in making another selection, they would likely have awarded assignments to eligible firms in approximately the same ratio they had been using in the past. Of course, McKinsey might ultimately prove the existence of intervening factors, but that showing must await summary judgment or trial. Although the Second Circuit holds that Alix sufficiently alleges proximate cause with respect to the 13 bankruptcies, proximate cause is especially conspicuous in the case of GenOn Energy. Specifically, Alix plausibly alleges that had McKinsey filed proper disclosure statements, GenOn would not have hired McKinsey and, even if it had, the bankruptcy court would not have approved McKinsey's retention. Moreover, Alix plausibly alleges that had McKinsey been disqualified, AlixPartners would have been hired. According to the amended complaint, McKinsey, prior to and at the time of the filing of the GenOn bankruptcy, had extensive connections to NRG Energy, GenOn's parent company and a current or former McKinsey client. Prior to its bankruptcy, GenOn had a multi-million-dollar fraudulent transfer claim against NRG Energy. Had McKinsey made truthful disclosures, Alix alleges, GenOn would not have hired McKinsey RTS to investigate GenOn's fraudulent transfer claim against NRG Energy, McKinsey's own client. Nor would it have hired McKinsey to negotiate GenOn's separation from NRG Energy during bankruptcy proceedings. Alix further alleges that, in addition to failing to disclose its connection to NRG Energy, McKinsey also concealed at least 53 other known conflicts and connections, some of which would have revealed that multiple McKinsey clients were GenOn's creditors. Alix further alleges that in order to avoid being listed as a creditor of the estate, McKinsey received avoidable preference payments from GenOn and intentionally concealed an interest adverse to the estate. Based on these alleged facts, it is implausible to conclude that GenOn would have retained McKinsey with knowledge of these serious conflicts of interests, the Second Circuit says. "We are even more hard-pressed to conclude that the Bankruptcy Court, given these facts, could or would have found that McKinsey was 'disinterested' and did not 'hold or represent an interest adverse to the estate,'" the Second Circuit adds. McKinsey contends that the causal chains in the 13 bankruptcies are too tenuous to meet the proximate cause standard because debtors do not have to hire a bankruptcy consultant at all or may hire more than one. In its view, this discretion makes any causal relationship too speculative. The Second Circuit disagrees. Although the existence of an intervening decision-maker "may in some cases tend to show that an injury was not sufficiently direct to satisfy [the] proximate-cause requirement, . . . it is not in and of itself dispositive." The Second Circuit notes that on its review of a Rule 12(b)(6) dismissal, they see nothing implausible or speculative about the conclusion that AlixPartners and the other competitors would have secured additional engagements absent McKinsey's alleged misconduct. Although proximate cause is most clearly alleged with respect to GenOn, the remaining 12 engagements also meet the proximate cause requirement, the Second Circuit says. "This is because Alix plausibly alleges that AlixPartners and the other two firms that compete for assignments in large bankruptcies would have been in direct competition for the other 12 bankruptcies if McKinsey had not submitted allegedly fraudulent statements to the Bankruptcy Court. Then, plausibly, the firms would have received assignments roughly in accordance with their historical market shares. Moreover, fraud on the Bankruptcy Court committed in the manner alleged by Alix causes direct harm to litigants who are entitled to a level playing field and calls into play our unique supervisory responsibilities," the Second Circuit says. Play-to-Play Scheme The district court dismissed Alix's RICO claims predicated on the pay-to-play scheme because it found that the allegations failed to meet the pleading and proximate cause standards. It concluded that the pay-to-play allegations were "devoid of any supporting specifics" and inadequate to meet the pleading requirements, and that even if they did, that they failed to show a sufficiently direct link between the allegedly unlawful conduct and injury. The Second Circuit disagrees and holds hold that Alix adequately pleaded bankruptcy fraud under Federal Rule of Civil Procedure 9(b) and that the allegations show a sufficiently direct link between the alleged fraud and injury. According to the Second Circuit, at this stage, Alix's pay-to-play allegations need only suggest "a strong inference of fraud." The allegations in the complaint about specific cases, when combined with the unusually detailed allegations regarding Alix's meetings with Dominic Barton, one of which allegedly led to Barton admitting McKinsey's role and participation in an illegal scheme and supposed agreement to take steps to end that scheme, easily raise a strong inference of fraud. Accordingly, the Second Circuit concludes that Alix's detailed pay-to-play allegations comfortably meet the Rule 9(b) standard. Even if they are adequately pleaded, McKinsey contends that the pay-to-play allegations suffer from the same problem of insufficient causal connection as the allegations concerning fraudulent disclosure statements. The pay-to-play allegations, McKinsey argues, "narrow" the gap between the alleged predicate acts and injury but fall short of "eliminat[ing]" that gap because of the independent decisions of debtors and the bankruptcy court. Specifically, McKinsey contends that Alix's RICO claim predicated on the pay-to-play scheme necessarily fails when the allegations do not show that the debtors would have hired AlixPartners in the absence of the scheme. The Second Circuit disagrees. At the motion to dismiss stage, Alix need only plausibly allege that the pay-to-play scheme proximately caused AlixPartners' harm. "We believe that the pay-to-play allegations are sufficiently robust to plausibly allege that the causal connection has been met. Whether Alix can substantiate his allegations is a question for summary judgment or trial, but at this juncture we find that the allegations are sufficient to allege proximate cause," the Second Circuit holds. The injury alleged due to the fraudulent disclosure statements is the loss of assignments as a bankruptcy consultant. Pay-to-play is different because the purported injury is the lost opportunity to compete in an unrigged "beauty contest." Where this occurs, competitors who do not pay are ipso facto harmed. In this sense, the allegations concerning the pay-to-play scheme are like those in Bridge, where the Court recognized the existence of an injury resulting from the rigged lottery system. Here, Alix likewise plausibly alleges a direct causal chain between AlixPartners's loss (the opportunity to participate in an unrigged contest) and McKinsey's pay-to-play scheme that was intended to buy off the competition. For each pay-to-play engagement, Alix specifically alleges that AlixPartners "was never even asked to pitch for the work" in cases in which it ordinarily would have competed for an assignment absent the scheme. Furthermore, it follows from Alix's pay-to-play allegations, which we must accept as true at this point, that McKinsey eviscerated what had historically been an even playing field in the bankruptcy advising marketplace. Suffice it to say that it is implausible -- indeed inconceivable -- that any Bankruptcy Court would have approved McKinsey's retention if Alix's allegations were substantiated. There is accordingly a plausibly alleged direct causal link between McKinsey's purported marketplace manipulation and the harm to Alix of being excluded from a market that had been rigged. In view of Alix's allegations that competitors had been bought off, the Second Circuit says, in the absence of discovery and on an undeveloped record, is not in a position to identify intervening causes that could have severed this causal chain. And given this Court's responsibility to oversee the integrity of the bankruptcy process, the Second Circuit sees no other victims with the appropriate incentive to remedy the harm caused by McKinsey's scheme as alleged by Alix. Accordingly, the Second Circuit holds that the pay-to-play allegations plausibly allege RICO proximate causation. A full-text copy of the Opinion penned by Circuit Judge Barrington D. Parker dated January 19, 2022, is available at https://tinyurl.com/mr23heuu from Leagle.com. The appeals case is Jay Alix, Plaintiff-Appellant, v. McKinsey & Co., Inc., McKinsey Holdings, Inc., McKinsey & Company Inc. United States, McKinsey Recovery & Transformation Services U.S., LLC, Dominic Barton, Kevin Carmody, Jon Garcia, Seth Goldstrom, Alison Proshan, Jared D. Yerian, Robert Sternfels, Defendants-Appellees, No. 20-2548-cv (2d Cir.). SEAN F. O'SHEA -- sean.oshea@cwt.com -- (Michael E. Petrella -- michael.petrella@cwt.com -- Amanda L. Devereux -- amanda.devereux@cwt.com -- on the brief), Cadwalader, Wickersham & Taft LLP, New York, NY,for Plaintiff-Appellant. FAITH E. GAY -- fgay@selendygay.com -- (Jennifer M. Selendy -- jselendy@selendygay.com -- Maria Ginzburg -- mginzburg@selendygay.com -- Caitlin J. Halligan -- challigan@selendygay.com -- David S. Flugman -- dflugman@selendygay.com -- on the brief), Selendy & Gay, PLLC, New York, NY and JOHN GLEESON -- jgleeson@debevoise.com -- (Andrew J. Ceresney -- aceresney@debevoise.com -- Erica S. Weisgerber -- eweisgerber@debevoise.com -- Nathan S. Richards -- nsrichar@debevoise.com -- on the brief), Debevoise & Plimpton LLP, New York, NY, for Defendants-Appellees McKinsey & Co., Inc., McKinsey Holdings, Inc., McKinsey & Company Inc. United States, and McKinsey Recovery & Transformation Services U.S., LLC. ROY T. ENGLERT, JR. -- renglert@robbinsrussell.com -- (Ariel N. Lavinbuk -- alavinbuk@robbinsrussell.com -- Richard A. Sauber, on the brief), Robbins, Russell, Englert, Orseck, Untereiner & Sauber, LLP, Washington, DC, for Defendants-Appellees Kevin Carmody, Jon Garcia, Alison Proshan, and Robert Sternfels. REID M. FIGEL -- rfigel@kellogghansen.com -- (Bradley E. Oppenheimer -- boppenheimer@kellogghansen.com -- on the brief), Kellogg, Hansen, Todd, Figel & Frederick, PLLC, Washington, DC, for Defendant-Appellee Seth Goldstrom. CATHERINE L. REDLICH -- credlich@driscollredlich.com -- Driscoll & Redlich, New York, NY, for Defendant-Appellee Dominic Barton. MICAH E. MARCUS -- mmarcus@mcdonaldhopkins.com -- (Christopher Dean -- cdean@mcdonaldhopkins.com -- on the brief), McDonald Hopkins LLC, Chicago, IL, for Defendant-Appellee Jared D. Yerian. About GenOn Energy GenOn Energy, Inc., is a wholesale power generation corporation with 15,394 megawatts in generating capacity, operating operate 32 power plants in eight states. GenOn is subsidiary of NRG Energy Inc., which is a competitive power company that produces, sells and delivers energy and energy services, primarily in major competitive power markets in the U.S. GenOn is the product of two mergers since 2010. First, on Dec. 3, 2010, two wholesale power generation companies -- RRI Energy, a company formerly known as Reliant Energy, and Mirant Corporation -- completed an all-stock, tax-free merger with Mirant becoming RRI's wholly-owned subsidiary. Following the merger, RRI took its current name: GenOn. NRG, through a wholly-owned subsidiary, and GenOn completed a stock-for-stock merger in a $6 billion deal, with GenOn continuing as the surviving company on December 14, 2012. NRG, as consideration for acquiring GenOn's entire equity, issued 0.1216 shares of NRG common stock for each outstanding share of GenOn. In structuring the merger, NRG "ring-fenced" GenOn's debt, leaving GenOn's creditors without recourse against NRG's assets in the event of GenOn's default. GenOn Energy, Inc. ("GenOn"), GenOn Americas Generation, LLC ("GAG") and 60 of their directly and indirectly-owned subsidiaries commenced the Chapter 11 cases in Houston (Bankr. S.D. Tex. Lead Case No. 17-33695) on June 14, 2017, to implement a restructuring plan negotiated with stakeholders prepetition. As of March 31, 2017, GenOn Energy had $4.81 billion in total assets, $4.51 billion in total liabilities and $304 million in total stockholders' equity. The Debtors' cases have been assigned to Judge David R. Jones. Kirkland & Ellis LLP is the Debtors' bankruptcy counsel. Zack A. Clement, PLLC, is the local counsel. Rothschild Inc. is the financial advisor and investment banker. McKinsey Recovery & Transformation Services U.S. is the restructuring advisor. Epiq Systems, Inc., is the claims and noticing agent. Credit Suisse Securities (USA) LLC serves as GenOn Energy's financial advisor and investment banker. Special Counsel to the GAG Steering Committee is Quinn Emanuel Urquhart & Sullivan, LLP. The Steering Committee of GAG Noteholders is comprised of Benefit Street Partners LLC, Brigade Capital Management, LP, Franklin Mutual Advisers, LLC, and Solus Alternative Asset Management LP, each on behalf of itself or certain affiliates, and/or accounts managed and/or advised by it or its affiliates. Counsel to the GenOn Steering Committee and the GAG Steering Committee are Keith H. Wofford, Esq., Stephen Moeller-Sally, Esq., and Marc B. Roitman, Esq., at Ropes & Gray LLP. Counsel for NRG Energy, Inc., are C. Luckey McDowell, Esq., and Ian E. Roberts, Esq., at Baker Botts L.L.P. The court on December 12, 2017, entered the order confirming the third amended joint Chapter 11 plan of reorganization of GenOn Energy, Inc. and its affiliates. GIRARDI & KEESE: IRS Comes After Tom Over $3.7 Million Debt ----------------------------------------------------------- Ryan Naumann of Radar Online reports that Real Housewives of Beverly Hills star Erika Jayne is hoping to walk away from her marriage with Tom Girardi with a little cash -- but that seems less likely as each day passes. According to court documents obtained by Radar, the Bravo star's estranged husband is accused of owing millions to the Internal Revenue Service. The once-respected attorney has been hit with a $3.7 million creditor's claim as part of his involuntary Chapter 7. Girardi was forced into bankruptcy last year by his many creditors. Between him and his law firm, it is believed he owes over $101 million. Jayne and her ex have received a ton of backlash over the debt because many of the people screwed over were former clients of Girardi — including orphans, widows, and a fire burn victim. In the new filing, the IRS says Girardi failed to pay them in full for 2018 and 2019. He allegedly owes them $257,220 for 2018 and another $3,3345,619 for 2019. His tax bill for 2018 has grown with $20k in interest due to Girardi's non-payment, while an additional $43k was added to the 2019 bill. The IRS is also coming after Girardi for civil penalties against the former lawyer in the amount of $51k — which appears to be some sort of penalty. The tax debt takes priority to most other debts in bankruptcy and will be paid out before Jayne sees a dime. The reality star filed for divorce from Girardi in November 2020 -- as his financial and legal problems started to mount. She denies having any knowledge of her husband's alleged embezzlement but his creditors are still coming after her for their money. The divorce was put on hold due to the bankruptcy. Jayne won't be awarded a dime in spousal support or see any assets handed over to her until the bankruptcy cases are settled. Recently, the trustee presiding over the bankruptcy for Girardi's law firm demanded Jayne hand over a pair of diamond earrings the now-disbarred attorney purchased. The jewelry was purchased in 2007 for $750k but are now worth $1.4 million. The problem is financial records allegedly show Girardi purchased the earrings using money from his client's trust account. Jayne has refused to give up the earrings but has turned them over until the judge makes a decision. She is also facing a $25 million lawsuit demanding she pays back money Girardi spent to pay the bills for her company EJ Global. On top of that, a federal judge signed off on Girardi's former clients being allowed to go after the reality star for money Girardi allegedly embezzled from them. Jayne also had her company EJ Global suspended by the California Franchise Tax Board — her lawyer told us that appears to be due to the paperwork being sent to her ex's law firm. About Girardi & Keese Girardi and Keese or Girardi & Keese was a Los Angeles-based law firm founded in 1965 by lawyers Thomas Girardi and Robert Keese. It served clients in California in a variety of legal areas. It was known for representing plaintiffs against major corporations. An involuntary Chapter 7 petition (Bankr. C.D. Cal. Case No. 20-21022) was filed in December 2020 against GIRARDI KEESE by alleged creditors Jill O'Callahan, Robert M. Keese, John Abassian, Erika Saldana, Virginia Antonio, and Kimberly Archie. The petitioners' attorneys: Andrew Goodman Goodman Law Offices, Apc Tel: 818-802-5044 E-mail: agoodman@andyglaw.com Elissa D. Miller, a member of the firm SulmeyerKupetz, has been appointed as Chapter 7 trustee for GIRARDI KEESE. The Chapter 7 trustee can be reached at: Elissa D. Miller 333 South Grand Ave., Suite 3400 Los Angeles, California 90071-1406 Telephone: (213) 626-2311 Facsimile: (213) 629-4520 E-mail: emiller@sulmeyerlaw.com An involuntary Chapter 7 petition was also filed against Thomas Vincent Girardi (Case No. 20-21020) on Dec. 18, 2020. The Chapter 7 trustee can be reached at: Jason M. Rund Email: trustee@srlawyers.com 840 Apollo Street, Suite 351 El Segundo, CA 90245 Telephone: (310) 640-1200 GRUPO AEROMEXICO: To Assume Full Control of Club Premier -------------------------------------------------------- Grupo Aeroméxico, S.A.B. de C.V. (BMV: AEROMEX) informs that it, together with its subsidiary Aerovias de Mexico, S.A. de C.V., 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 Aeroméxico 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 Aeroméxico (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 Aeroméxico stated: "Today's announcement is another very exciting day for the Aeroméxico family and our Club Premier members. This is an important milestone in the Aeroméxico restructuring process and marks a major step forward as we continue our complete transformation of the Aeroméxico 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. Aeroméxico 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 Aeroméxico 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. HELIUS MEDICAL: AIGH Capital, Orin Hirschman Report 6.8% Stake -------------------------------------------------------------- AIGH Capital Management, LLC and Mr. Orin Hirschman disclosed in a Schedule 13G filed with the Securities and Exchange Commission that as of Dec. 31, 2021, they beneficially own 255,400 shares of common stock of Helius Medical Technologies, Inc., representing 6.8 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/1131362/000149315222003908/formsc13g.htm About Helius Medical Helius Medical Technologies -- http://www.heliusmedical.com-- is a neurotech company focused on neurological wellness. Its purpose is to develop, license or acquire non-invasive technologies targeted at reducing symptoms of neurological disease or trauma. Helius Medical reported a net loss of $14.13 million for the year ended Dec. 31, 2020, compared to a net loss of $9.78 million for the year ended Dec. 31, 2019. As of Sept. 30, 2021, the Company had $7.88 million in total assets, $2.84 million in total liabilities, and $5.04 million in total stockholders' equity. Philadelphia, Pennsylvania-based BDO USA, LLP issued a "going concern" qualification in its report dated March 10, 2021, citing that the Company has incurred substantial net losses since its inception, has an accumulated deficit of $118.9 million as of Dec. 31, 2020 and the Company expects to incur further net losses in the development of its business. These conditions raise substantial doubt about its ability to continue as a going concern. HERTZ CORP: Falsely Arrested Customers Score Win in Court --------------------------------------------------------- Steven Church of Insurance Journal reports that Hertz Corp., battling hundreds of customers who say they were falsely arrested for auto theft after renting cars, was ordered by a federal judge to disclose how many renters it accuses every year. U.S. Bankruptcy Judge Mary Walrath sided with advocates for 220 people suing Hertz who argued more details about Hertz's internal anti-theft program should be public. In various documents filed in federal court in Wilmington, Delaware, the car renter has demanded that data on how many theft reports it files every year be blocked out of court papers to prevent rivals from using the information to tarnish Hertz's reputation. The U.S. Trustee, which monitors bankruptcies for the Justice Department, CBS News, and advocates for people suing Hertz for false arrest argued that the information should be made public. Court documents show that some of the customers who rented cars were jailed and in at least one case held at gunpoint just hours after paying for a rental. The false arrest claims often involve long-term rentals, some set up directly by the customer, others through an auto insurance company, according to court documents. If something goes wrong with a renewal payment, or there's some other problem, Hertz may report the renter to the police saying the car has been stolen, documents show. Afterward, Hertz charges the renter's credit card or debit card and collects whatever was due, lawyers for the suing renters said in court filings. In order to prove the false arrest claims aren't isolated incidents, lawyers suing Hertz have been collecting data on how often the rental company files police reports against customers. Bankruptcy Claims Those who claim Hertz had them wrongly arrested have filed claims in bankruptcy court demanding to be paid like other creditors of the company. Walrath oversaw Hertz's Chapter 11 reorganization, which ended last year with a plan to pay creditors in full. The false arrest claims could cost Hertz hundreds of millions of dollars, according to advocates for those suing the company. The fight is part of a broader dispute about how to handle those claims from former renters who say they were wrongly arrested because of an alleged error by Hertz. As is typical in big, complicated Chapter 11 cases, Hertz left behind a shell in bankruptcy to help administer creditor payouts and resolve any legal disputes not covered by its reorganization plan. CBS previously reported that Hertz said the “vast majority” of cases involve renters who were weeks or months overdue on returns and authorities are brought in only after “exhaustive attempts” to reach a customer. The case is Hertz Corp. 20-11218, U.S. Bankruptcy Court, District of Delaware (Wilmington). 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. HIGHPEAK ENERGY: Fitch Gives FirstTime 'B-' LT IDR, Outlook Stable ------------------------------------------------------------------ Fitch Ratings has assigned a first-time Long-Term Issuer Default Rating (IDR) of 'B-' to HighPeak Energy, Inc. Fitch has also assigned 'BB-'/'RR1' ratings to HighPeak's senior secured reserve-based lending credit facility (RBL) and 'B'/'RR3' ratings to the new $225 million unsecured notes. The Rating Outlook is Stable. HighPeak's rating reflects their Permian asset base with high liquids exposure, solid drilling inventory of economic locations, expected rapid increase in size and scale, and the leverage profile forecast to remain at or below 1.0x through the cycle. These factors are partially offset by the company's current small production size and reserve replacement, and the company's currently low 12-month hedge coverage of approximately 25% of 2022 forecast oil production, which leaves future cash flows susceptible to market price fluctuations. KEY RATING DRIVERS Permian Asset Base: HighPeak Energy's asset base (approximately 62,000 net acres) is in the Northern Midland basin in two large contiguous blocks (approximately 33,000 and approximately 29,000 in Flat Top and Signal Peak, respectively), with opportunity for 10,000+ foot laterals. The assets are liquids-oriented with 15.5 Mboepd (mid-October 2021) production with approximately 95% liquids and approximately 85% oil. Management has identified 1,942 total locations across and seven benches, and estimate 29 MMboe net reserves expected at YE 2021. Minimal legacy development provides HighPeak the ability to utilize industry learning to optimize development patterning and completion across their delineated formations. While much of the midland basin is well-developed, particularly the Lower Spraberry and Wolfcamp A and B zones, which offers comfort around expected well results, Fitch believes the Company's acreage is less de-risked and well results could vary across the region. Execution Risk Around Growth Strategy: Fitch believes there is execution risks around the company's growth strategy as the rig count increases considerably from one rig in 2Q21 to four rigs in 2022 and the company utilizes most of its available liquidity to maintain elevated capex levels. The company's production in mid-October was 15.5 Mboepd and management expects to produce approximately 80 Mboepd by 2024 through its four-rig drilling program. The capital program, currently estimated at approximately $750 million in 2022, will be funded with the company's new $225 million unsecured notes, significant draw on the RBL and through internally generated cash flows. HighPeak is operating in Flat Top, which is in Northeastern Howard County and Signal Peak is in Southeastern Howard County. These areas are less developed than Western Howard County; however, performance to date has been strong driven primarily by HighPeak's high liquids mix (95% liquids, 85% oil), which has been higher than other counties in the Midland basin. Fitch believes the current growth plan is aggressive and understands a weakened pricing environment could force the company to pull back on its capital spending and significantly slow down its production growth. Fitch's base case currently forecasts production to average approximately 25 Mboepd in 2022 and increase toward 50 Mboepd in 2023 with sub-1.5x gross debt/EBITDA. Near-Term Negative FCF: Fitch forecasts HighPeak to significantly outspend cash flows through 2023 given the increase in capex in 2022 and increasing toward $800 million in 2023. Fitch expects the company will be able to generate positive FCF in 2024 at Fitch's $50/bbl WTI price assumption, which should allow for repayment of the RBL borrowings that will help reduce refinance risks on the new unsecured notes. Given the short-term nature of the company's rig contracts, management could scale back its rig count to preserve liquidity in a weakened oil price environment. Limited Near-Term Hedge Book: Fitch believes HighPeak's currently low hedge coverage leaves the company susceptible to weakening commodity prices in 2022 especially given the large expected RBL borrowings to fund the development program. HighPeak's 12-month hedge program covers approximately 25% of oil production in 2022; the credit agreement requires the company to hedge 60% of its oil production over the next 12 months based on the PDP reserves at the semi-annual redetermination in Spring (April 1) and Fall (Oct. 1). Given HighPeak's projected growth in the coming years, the company hedge coverage will be low in the near term, but should increase to approximately 50% hedged in 2023. Sub-1.5x Leverage Profile: Fitch forecasts HighPeak's leverage of 0.6x at 2021 increasing to 1.1x in 2022 before falling back to less than 1.0x thereafter. While the company is relatively new, Management has expressed the priority of balance sheet protection and conservative financial policy, reinforced by the equity contributions to-date of approximately $675 million. Fitch expects further deleveraging over time as the production profile grows, but will look to see management reduce outstanding borrowing under the RBL in the near term. DERIVATION SUMMARY HighPeak Energy is a relatively small, growth-oriented operator with average daily production of approximately 15.5 thousand barrels of oil equivalent per day (mboepd) in mid-October 2021, which is smaller than its Permian peers at 3Q21, Matador Resources Company (B+/Stable; 90 Mboepd), Callon Petroleum Company (B/Stable; approximately 100 Mboepd), Crownrock, L.P. (B-/Stable; 115 Mboepd) and SM Energy Company (B/Stable; 156 Mboepd). In terms of cost structure, HighPeak's Fitch-calculated unhedged cash netback of $49.00 per barrel of oil equivalent (boe; 77% margin) is stronger than its peers, Matador ($41.70/boe; 75% margin), Callon Petroleum ($37.00/boe; 67% margin), SM Energy ($39.40/boe; 74% margin) and Crownrock ($38.10/boe; 78% margin). The company's forecast sub-1.5x leverage is similar to Permian peers Matador, CrownRock and SM Energy, but stronger than Callon with leverage expected at sub-2.5x levels in 2022. KEY ASSUMPTIONS Fitch's key assumptions within the rating case for the issuer include: -- West Texas Intermediate (WTI) prices of $67.00/bbl, $57.00/bbl and $50.00/bbl in 2022, 2023 and 2024, respectively; -- Henry Hub prices of $3.25/mcf, $2.75/mcf and $2.50/mcf in 2022, 2023 and 2024, respectively; -- Average production of approximately 27 Mboepd in 2022, increasing above 50 Mboepd in 2023 and double-digit growth thereafter; -- Completion of the $225 million senior unsecured note offering as expected in early 2022; -- Annual capex ranging between $750 million-$850 million during the forecast to facilitate production growth; -- Near-term negative FCF funded with the proposed senior unsecured note issuance and RBL borrowings; -- Moderate opex efficiencies as production size increases, tempered by increasing service cost environment from recent lows. KEY RECOVERY RATING ASSUMPTIONS -- The recovery analysis assumes that HighPeak Energy would be reorganized as a going concern (GC) in bankruptcy rather than liquidated. -- Fitch has assumed a 10% administrative claim. GC Approach -- Fitch assumed a bankruptcy scenario exit EBITDA of $125 million. This GC EBITDA reflects Fitch's projections under a stressed case price deck with a prolonged commodity price downturn ($32/WTI and $1.65/mcf gas lows in 2023, increasing to $42/bbl WTI and $2.25/mcf gas in 2024). -- The GC EBITDA estimate reflects Fitch's view of a sustainable, post-reorganization EBITDA level upon which Fitch base the enterprise valuation, which reflects the decline from current pricing levels to stressed levels and then a partial recovery coming out of a troughed pricing environment. Fitch believes that a lower-for-longer price environment combined with continued aggressive growth and consequent RBL-funded capital outspend and liquidity erosion could pose a plausible bankruptcy scenario for HighPeak. An EV multiple of 3.0x EBITDA is applied to the GC EBITDA to calculate a post-reorganization enterprise value. The choice of this multiple considered the following factors: -- The historical bankruptcy case study exit multiples for peer companies ranged from 2.8x to 7.0x, with an average of 5.6x and a median of 6.1x; -- The lower multiple takes into consideration HighPeak's oil weighted Midland Permian asset base which has increased risk given its less developed. Liquidation Approach -- The liquidation estimate reflects Fitch's view of the value of balance sheet assets that can be realized in sale or liquidation processes conducted during a bankruptcy or insolvency proceeding and distributed to creditors. -- Fitch considers valuations such as SEC PV-10 and M&A transactions for each basin including multiples for production per flowing barrel, proved reserves valuation, value per acre and value per drilling location. Fitch has assumed the lower Proved Reserve (1P) based valuation estimate to be the most conservative. -- The RBL is assumed to be fully drawn upon default, given the company's hedge position as well as Fitch's expectation that production growth would likely offset the risk of price-linked borrowing base reduction. The RBL is senior to the unsecured notes in the waterfall. -- The allocation of value in the liability waterfall results in recovery corresponding to 'RR1' for the senior secured RBL facility ($195 million) and 'RR3' for the senior unsecured notes ($225 million), which is consistent with Fitch's Notching and Recovery Rating Criteria. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- Transition to positive FCF generation that allows for gross debt reduction; -- Consistent track record of reserve replacement and total production approaching 50 Mboepd; -- Continued asset development and maintenance of unit economics across the acreage position; -- Mid-cycle total debt with equity credit/operating EBITDA sustained below 2.0x. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Material reduction and/or delay in transition to positive FCF generation which limits the ability to repay gross debt; -- Failure to realize production growth resulting in production sustained below 20 Mboepd; -- Slower asset development timeline and deterioration of unit economics; -- Mid-cycle total debt with equity credit/operating EBITDA sustained above 3.0x. 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 Outspend Reduces Near-Term Liquidity: Fitch does not see material near-term liquidity needs and believes the company's refinance risk is manageable given the expected ramp up in size and scale and the small overall size of the unsecured notes. As of 3Q21, HighPeak's liquidity consists of $12 million of cash on its balance sheet and an additional $100 million of borrowing capacity under the $195 million RBL facility. The RBL is subject to a semi-annual borrowing base redetermination and was affirmed at $195 million in October 2021. Fitch expects HighPeak to fully repay the RBL in early 2022 with the new $225 million senior notes issuance. Fitch expects the remaining cash from the issuance (approximately $102 million) and the RBL facility will be used to fund the proposed capital expenditure plan in the near and medium term, but recognizes that liquidity will be reduced as the company outspends its cash flows in 2022. However, Fitch believes the company will have the ability to upsize the RBL facility in the next 12 months as the reserve base expands through its development program. ISSUER PROFILE HighPeak Energy, Inc. is an independent energy exploration and production company operating in Howard County in the Northern Midland Basin of the Permian in West Texas. HighPeak assets consist of approximately 33,000 net acres in Flat Top and approximately 29,000 acres at Signal Peak. HighPeak operate approximately 92% of the net acreage across the company's assets and hold an average working interest of approximately 88% in the Flat Top and the Signal Peak area. Approximately 97% of the net operated acreage provides for horizontal well locations with lateral lengths of 10,000 feet or greater in the formations covered by the Company's assets. ESG Considerations HighPeak has an ESG Relevance Score of '4' for energy management that reflects the company's cost competitiveness and financial and operational flexibility due to scale, business mix and diversification. This factor has a negative impact on the credit profile, and is relevant to the rating in conjunction with other factors. 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. HKBH PRESCHOOLS: Seeks to Hire AM Law as Bankruptcy Counsel ----------------------------------------------------------- HKBH Preschools, LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of Florida to employ AM Law, LLC to serve as legal counsel in its Chapter 11 case. The firm's services include: a. advising the Debtor with respect to its powers and duties; 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 papers; d. protecting the interests 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 plan of reorganization and assisting the Debtor in obtaining confirmation of the plan at a hearing before the court. AM LAW received the sum of $18,250 for its services. Gary Murphree, Esq., a partner at AM LAW, disclosed in a court filing that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Gary M. Murphree, Esq. AM LAW, LLC 10743 SW 104th Street Miami, FL 33176 Tel: (305) 441-9530 Fax: (305) 595-5086 Email: gmm@amlaw-miami.com About HKBH Preschools HKBH Preschools LLC, doing business as Soaring Eagles Academy, filed a Chapter 11 bankruptcy petition (Bankr. S.D. Fla. Case No. 22-10618) on Jan. 26, 2022, disclosing as much as $1 million in both assets and liabilities. Judge Laurel M. Isicoff oversees the case. The Debtor is represented by Gary M. Murphree, Esq., at A.M. LAW, LLC. HOME DECOR: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: Home Decor Liquidators, LLC 4187 Pleasant Hill Rd, Suite 200 Duluth, GA 30096 Chapter 11 Petition Date: February 15, 2022 Court: United States Bankruptcy Court Northern District of Georgia Case No.: 22-51278 Debtor's Counsel: Henry F. Sewell, Jr., Esq. LAW OFFICES OF HENRY F. SEWELL, LLC 2964 Peachtree Road NW Suite 555 Atlanta, GA 30305 Tel: 404-926-0053 E-mail: hsewell@sewellfirm.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Christopher I. Prescott, president, manager, and member. The Debtor failed to include in the petition a list of its 20 largest unsecured creditors. A full-text copy of the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/JURJZOA/Home_Decor_Liquidators_LLC__ganbke-22-51278__0001.0.pdf?mcid=tGE4TAMA INNERLINE ENGINEERING: Seeks Cash Collateral Access Thru April 30 ----------------------------------------------------------------- Innerline Engineering, Inc. asks the U.S. Bankruptcy Court for the Central District of California, Riverside Division, for authority to use cash collateral for the period February 14 to April 30, 2022 in accordance with the budget, with a 15% variance. The Debtor requires the use of cash collateral to pay the ordinary and necessary operating expenses. The Debtor was cashflow positive in 2021 as shown in its profit and loss statement, through December 31, 2021. Due to the Debtor's recent financial performance, it believes the continued and uninterrupted operation of the business is in the best interest of the estate and all its creditors. The business was purchased as a going concern for about $900,000 in June 2017. In 2018, gross revenue was a little more than $2,900,00. In 2019, gross revenue was a little more than $3.400,000. Due to COVID-19 related slowdowns in customer orders, revenue dipped to a little more than $2,300,000. Through the first half of 2021, the Debtor was on pace for about $2,800,000 in annual sales but as the 2021 year progressed, the Debtor began to see an uptick in customer orders such that 2021 gross sales exceeded $3,00,000 on an annualized basis. The Debtor obtained three COVID-19 related financial relief related loans during 2020 and 2021. The Debtor used these funds to help it to recover from the impact of the pandemic and to rebuild the business in what is now a new business environment. These loan proceeds have assisted the Debtor in surviving and will help preserve value for creditors. The Debtor obtained these COVID-19 related financial assistance: a. Economic Injury Disaster Loan loan from the SBA in the amount of $150,000, obtained on May 10, 2020 -- payments set to start May 2022; 3.75% amortized over 30-years, $731/month; b. PPP loan from US Metro Bank in the amount of $373,700, obtained on April 5, 2020 -- forgiven on June 14, 2021; c. PPP #2 loan from Pacific City Bank in the amount of $385,700, obtained on February 23, 2021 -- terms are: 1% amortized over 5-years; loan forgiveness application submitted January 17, 2022. By late Spring 2021, after a reduction in 2020 business related to COVID-19, the Debtor decided to look for other options to corral its debts and to secure a complete financial reorganization. The creditors with liens on cash collateral are HOP Capital, Employment Development Department, Danny Song, Dig Vac, LLC, APS Environmental Inc., Midwest Employers Casualty Company, U.S. Small Business Administration, Herc Rentals, Inc., and Internal Revenue Service. The total of the creditors' claim amount is $2,010,385. The Debtor believes that HOP Capital, Danny Song, the SBA, and the IRS will take the position that all tangible and intangible personal property of the Debtor constitutes cash collateral within the meaning of section 363(a) of the Bankruptcy Code. The Debtor believes the value of its total assets consisting of the cash collateral exceed the value of all liens secured on those assets. The Debtor estimates that the value of its Cash Collateral is $2,104,290 and the liens secured on the cash collateral total $2,010,385. There is equity of at least $323,697, per the book value, with an equity cushion of 4.46% exceeding all liens. The Debtor proposes these adequate protection payments: -- HOP Capital: $3,000; -- Danny Song: $1,000; -- U.S. Small Business Administration: $731; and -- Internal Revenue Service: $3,000. A copy of the motion and the Debtor's budget for the period from February to April 2021 is available at https://bit.ly/3LzwrkU from PacerMonitor.com. The Debtor projects $900,124 in total income and $355,748 in total operating expenses for the period. About Innerline Engineering Corona, Cal.-based Innerline Engineering, Inc. -- http://www.innerlineengineering.com/-- offers a variety of services to municipalities, utility owners, industrial facilities and commercial property owners for the maintenance of their underground utilities. Innerline Engineering filed a petition for Chapter 11 protection (Bankr. C.D. Cal. Case No. 21-14305) on Aug. 9, 2021, listing as much as $10 million in both assets and liabilities. Thomas J.C. Yeh, chief financial officer, signed the petition. Judge Wayne E. Johnson oversees the case. Resnik Hayes Moradi LLP serves as the Debtor's bankruptcy counsel. INTEGRATED VENTURES: Incurs $515K Net Loss in Second Quarter ------------------------------------------------------------ Integrated Ventures, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $515,261 on $2.55 million of total revenues for the three months ended Dec. 31, 2021, compared to a net loss of $200,083 on $182,120 of total revenues for the three months ended Dec. 31, 2020. For the six months ended Dec. 31, 2021, the Company reported net income of $832,196 on $4.46 million of total revenues compared to a net loss of $588,861 on $264,347 of total revenues for the same period during the prior year. As of Dec. 31, 2021, the Company had $16.16 million in total assets, $586,705 in total liabilities, $1.13 million in series C preferred stock, $3 million in series D preferred stock, and $11.45 million in total stockholders' equity. Prior to the six months ended Dec. 31, 2021, the Company had reported recurring net losses from operations and used net cash in operating activities. As of Dec. 31, 2021, the Company had an accumulated deficit of $44,510,922. The Company said these conditions raise substantial doubt about its ability to continue as a going concern. The Company stated, "There can be no assurances that the Company will be successful in attaining a profitable level of operations or in generating additional cash from the equity/debt markets or other sources fund its operations. The financial statements do not include any adjustments relating to the recoverability of assets and classification of assets and liabilities that might be necessary. Should the Company not be successful in its business plan or in obtaining the necessary financing to fund its operations, the Company would need to curtail certain or all operational activities and/or contemplate the sale of its assets, if necessary." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/0001520118/000147793222000684/intv_10q.htm About Integrated Ventures Inc. Integrated Ventures Inc. -- www.integratedventuresinc.com -- operates as technology holdings Company with focus on cryptocurrency sector. Integrated Ventures reported a net loss of $22.43 million for the year ended June 30, 2021, compared to a net loss of $1.08 million for the year ended June 30, 2020. As of Sept. 30, 2021, the Company had $14.72 million in total assets, $413,933 in total liabilities, $1.12 million in series C preferred stock, $3 million in series D preferred stock, and $10.18 million in total stockholders' equity. Houston, TX-based M&K CPAS, PLLC, the Company's auditor since 2018, issued a "going concern" qualification in its report dated Sept. 24, 2021, citing that the Company has suffered net losses from operations in current and prior periods and has an accumulated deficiency, which raises substantial doubt about its ability to continue as a going concern. ISLAND INDUSTRIES: Taps Glankler Brown as Bankruptcy Counsel ------------------------------------------------------------ Island Industries, Inc. seeks approval from the U.S. Bankruptcy Court for the Western District of Tennesse to employ Glankler Brown, PLLC to serve as legal counsel in its Chapter 11 case. The firm's services include: a. rendering legal services relating to the reorganization proceeding; b. preparing bankruptcy schedules, statement of affairs and reports; c. preparing legal papers; d. formulating and filing a plan of reorganization and motions to approve the sale of assets; and e. rendering legal advice with respect to the various matters arising during the course of the bankruptcy case. The hourly rates charged by the firm's attorneys and paralegals are as follows: Partners $475 per hour Associates $275 per hour Paralegals $195 per hour The firm will also seek reimbursement for out-of-pocket expenses incurred. Michael Coury, Esq., a partner at Glankler Brown, disclosed in a court filing that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Michael P. Coury, Esq. Ricky L. Hutchens, Esq. Glankler Brown, PLLC 6000 Poplar Avenue Suite 400 Memphis, TN 38119 Tel: (901) 576-1886 Email: mcoury@glankler.com rhutchens@glankler.com About Island Industries Island Industries, Inc. is a Memphis, Tenn.-based distributor of pipe and component products serving a variety of markets. Island Industries sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Tenn. Case No. 22-20380) on Feb. 2, 2022, listing as much as $10 million in both assets and liabilities. Judge Jennie D. Latta oversees the case. Glankler Brown, PLLC is the Debtor's legal counsel. JOHNSON & JOHNSON: Claimants Snub Move to Keep LTL Bankruptcy Alive ------------------------------------------------------------------- James Nani of Bloomberg Law reports that two asbestos injury victim groups told a bankruptcy court to ignore a call to maintain a Johnson & Johnson spinoff's, LTL Management, Chapter 11 case, arguing that the filing on behalf of a proposed class actually represents the views of only a single person. The proposed class action representing Canadians with ovarian cancer and mesothelioma hasn't been certified, and the litigation has been on hold since December, the two claimant committees told U.S. Bankruptcy Judge Michael B. Kaplan Thursday, February 10, 2022. Counsel for the proposed class generally hasn't participated in J&J spinoff LTL Management LLC's Chapter 11 proceedings, the committees said. 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. JOHNSON & JOHNSON: Cost in Ending Talc Suits Could Reach $7 Billion ------------------------------------------------------------------- Steven Church of Bloomberg News reports that Johnson & Johnson has told credit-rating firms it may need to spend as much as $7 billion in bankruptcy to end more than 38,000 lawsuits filed by people who claim they were harmed by the company's iconic baby powder, lawyers for plaintiffs said in court Monday, February 14, 2022. J&J's former treasurer, Michelle Ryan, gave the estimate to S&P analysts, according to Brian Glasser, a lawyer for people suing the consumer products said, citing company emails. J&J is fighting in bankruptcy court in Trenton, New Jersey to save its legal strategy for resolving all current and future suits tied to talc. 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. KB HOME: Egan-Jones Keeps BB- Senior Unsecured Ratings ------------------------------------------------------ Egan-Jones Ratings Company, on January 26, 2022, maintained its 'BB-' foreign currency and local currency senior unsecured ratings on debt issued by KB Home. Headquartered in Los Angeles, California, KB Home builds single-family homes in the United States, primarily targeting first-time and first move-up homebuyers. KINTARA THERAPEUTICS: Incurs $5.9 Million Net Loss in 2nd Quarter ----------------------------------------------------------------- Kintara Therapeutics, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $5.89 million for the three months ended Dec. 31, 2021, compared to a net loss of $5.41 million for the three months ended Dec. 31, 2020. For the six months ended Dec. 31, 2021, the Company reported a net loss of $11.86 million compared to a net loss of $24.93 million for the same period during the prior year. The decreased loss for the six months ended Dec. 31, 2021 compared to the six months ended Dec. 31, 2020 was largely due to the recognition of $16.1 million of non-cash expenses related to the acquisition of in-process research and development costs associated with the Adgero transaction in August 2020. As of Dec. 31, 2021, the Company had $17.72 million in total assets, $3.62 million in total liabilities, and $14.10 million in total stockholders' equity. At Dec. 31, 2021, the Company had cash and cash equivalents of approximately $14.0 million. "We are in the clinical stage and have not generated any revenues to-date. We do not have the prospect of achieving revenues until such time that our product candidates are commercialized, or partnered, which may not ever occur. In the near future, we will require additional funding to maintain our clinical trials, research and development projects, and for general operations. These circumstances indicate substantial doubt exists about our ability to continue as a going concern within one year from the date of filing of the condensed consolidated interim financial statements," Kintara said. "Consequently, management is pursuing various financing alternatives to fund our operations so we can continue as a going concern. However, the coronavirus ("COVID-19") pandemic has created significant economic uncertainty and volatility in the credit and capital markets. Management plans to secure the necessary financing through the issue of new equity and/or the entering into of strategic partnership arrangements but the ultimate impact of the COVID-19 pandemic on our ability to raise additional capital is unknown and will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration of the COVID-19 outbreak and any new information which may emerge concerning the severity of the COVID-19 pandemic. We may not be able to raise sufficient additional capital and may tailor our drug candidate development program based on the amount of funding we are able to raise in the future. Nevertheless, there is no assurance that these initiatives will be successful," the Company said. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1498382/000156459022004688/ktra-10q_20211231.htm About Kintara Located in San Diego, California, Kintara (formerly DelMar Pharmaceuticals) is dedicated to the development of novel cancer therapies for patients with unmet medical needs. Kintara is developing two late-stage, Phase 3-ready therapeutics for clear unmet medical needs with reduced risk development programs. The two programs are VAL-083 for GBM and REM-001 for CMBC. Kintara reported a net loss of $38.30 million for the year ended June 30, 2021, compared to a net loss of $9.13 million for the year ended June 30, 2020. As of Sept. 30, 2021, the Company had $22.34 million in total assets, $3.18 million in total liabilities, and $19.16 million in total stockholders' equity. San Francisco, CA-based Marcum LLP, the Company's auditor since 2019, issued a "going concern" qualification in its report dated Sept. 28, 2021, citing that the Company has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. LATAM AIRLINES: Creditors Continue Backstop Fees Clash ------------------------------------------------------ Rick Archer of Law360 reports that the Chilean carrier LATAM Airlines and a collection of its creditors continued to clash before a New York bankruptcy judge on Friday, February 11, 2022, over a backstop financing agreement in LATAM's Chapter 11 plan, with each side accusing the other of taking a distorted view of the costs. Over the course of the second full day of virtual hearings on the issue, LATAM accused the objecting creditors of adopting an overly narrow view of the proposed backstop arrangement to exaggerate the size of the fees the backstopping creditors would receive, while the objectors argued that LATAM was attempting to minimize the fees. About LATAM Airlines Group LATAM Airlines Group S.A. -- http://www.latam.com/-- is a pan-Latin American airline holding company involved in the transportation of passengers and cargo and operates as one unified business enterprise. It is the largest passenger airline in South America. Before the onset of the COVID-19 pandemic, LATAM offered passenger transport services to 145 different destinations in 26 countries, including domestic flights in Argentina, Brazil, Chile, Colombia, Ecuador and Peru, and international services within Latin America as well as to Europe, the United States, the Caribbean, Oceania, Asia and Africa. LATAM and its 28 affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 20-11254) on May 25, 2020. Affiliates in Chile, Peru, Colombia, Ecuador and the United States are part of the Chapter 11 filing. The Debtors disclosed $21,087,806,000 in total assets and $17,958,629,000 in total liabilities as of Dec. 31, 2019. The Hon. James L. Garrity, Jr., is the case judge. The Debtors tapped Cleary Gottlieb Steen & Hamilton LLP as bankruptcy counsel, FTI Consulting as restructuring advisor, Lee Brock Camargo Advogados as local Brazilian litigation counsel, and Togut, Segal & Segal LLP and Claro & Cia in Chile as special counsel. The Boston Consulting Group, Inc. and The Boston Consulting Group UK LLP serve as the Debtors' strategic advisors. Prime Clerk LLC is the claims agent. The official committee of unsecured creditors formed in the case tapped Dechert LLP as its bankruptcy counsel, Klestadt Winters Jureller Southard & Stevens, LLP, as conflicts counsel, UBS Securities LLC as investment banker, and Conway MacKenzie, LLC, as financial advisor. Ferro Castro Neves Daltro & Gomide Advogados is the committee's Brazilian counsel. The Ad Hoc Group of LATAM Bondholders tapped White & Case LLP as counsel. Glenn Agre Bergman & Fuentes, LLP, led by managing partner Andrew Glenn and partner Shai Schmidt, has been retained as counsel to the Ad Hoc Committee of Shareholders. LATAM AIRLINES: Defends Fees for Capital Raise to Ease Ch.11 Exit ----------------------------------------------------------------- Andrew Scurria and Akiko Matsuda of The Wall Street Journal report that Latam Airlines Group SA defended the cash payments it has offered to some creditors for guaranteeing a $5.44 billion capital raise, saying the proposed fees are justified because of the risks of investing in a bankrupt airline as the Covid-19 pandemic drags on. Judge James Garrity of the U.S. Bankruptcy Court in New York deferred ruling after a contested hearing Friday, February 11, 2021, on Latam's request to sign an agreement with large unsecured creditors to backstop its proposed sale of equity shares and convertible notes. About LATAM Airlines Group LATAM Airlines Group S.A. -- http://www.latam.com/-- is a pan-Latin American airline holding company involved in the transportation of passengers and cargo and operates as one unified business enterprise. It is the largest passenger airline in South America. Before the onset of the COVID-19 pandemic, LATAM offered passenger transport services to 145 different destinations in 26 countries, including domestic flights in Argentina, Brazil, Chile, Colombia, Ecuador and Peru, and international services within Latin America as well as to Europe, the United States, the Caribbean, Oceania, Asia and Africa. LATAM and its 28 affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 20-11254) on May 25, 2020. Affiliates in Chile, Peru, Colombia, Ecuador and the United States are part of the Chapter 11 filing. The Debtors disclosed $21,087,806,000 in total assets and $17,958,629,000 in total liabilities as of Dec. 31, 2019. The Hon. James L. Garrity, Jr., is the case judge. The Debtors tapped Cleary Gottlieb Steen & Hamilton LLP as bankruptcy counsel, FTI Consulting as restructuring advisor, Lee Brock Camargo Advogados as local Brazilian litigation counsel, and Togut, Segal & Segal LLP and Claro & Cia in Chile as special counsel. The Boston Consulting Group, Inc. and The Boston Consulting Group UK LLP serve as the Debtors' strategic advisors. Prime Clerk LLC is the claims agent. The official committee of unsecured creditors formed in the case tapped Dechert LLP as its bankruptcy counsel, Klestadt Winters Jureller Southard & Stevens, LLP, as conflicts counsel, UBS Securities LLC as investment banker, and Conway MacKenzie, LLC, as financial advisor. Ferro Castro Neves Daltro & Gomide Advogados is the committee's Brazilian counsel. The Ad Hoc Group of LATAM Bondholders tapped White & Case LLP as counsel. Glenn Agre Bergman & Fuentes, LLP, led by managing partner Andrew Glenn and partner Shai Schmidt, has been retained as counsel to the Ad Hoc Committee of Shareholders. LATAM AIRLINES: NY Judge Postpones Hearing to February 18, 2022 --------------------------------------------------------------- TGSL reports that following a Feb. 11 hearing, Judge James L. Garrity of the US Bankruptcy Court in New York deferred, for this week, his decision on the expected disclosure statement (Disclosure Statement), one of the most important milestones in the reorganization process of the Chilean flag carrier, as it brings together all its background: assets, liabilities, routes, market percentages, plans to resume operations and the price of the company. The judge's decision came shortly after the firm signed a modification to the restructuring support agreement, called Restructuring Support Agreement (RSA), thus adding the support of the Ad Hoc Group of Bondholders. That step, also key to advancing the reorganization process, had to be explained by the company at the hearing. Latam defended the cash payments it offered to creditors to guarantee a capital increase of US$5.44 billion and said the proposed fees are justified due to the risks of investing in a bankrupt airline while the pandemic continues. Meanwhile, unsecured creditors not participating in the capital increase say the $734 million amount "is unreasonably high." Once Latam obtains the approval of the judge on the disclosure, the process that leads to the formal exit of Chapter 11 will begin. Until March 7, 2022 the company has the "exclusive right" to formally present its reorganization plan, which will be based on what was approved in this yet to be defined step. In previous interviews, the CEO of the airline, Roberto Salvo, said that he hopes to get out of Chapter 11 by the end of 2022. About LATAM Airlines Group LATAM Airlines Group S.A. -- http://www.latam.com/-- is a pan-Latin American airline holding company involved in the transportation of passengers and cargo and operates as one unified business enterprise. It is the largest passenger airline in South America. Before the onset of the COVID-19 pandemic, LATAM offered passenger transport services to 145 different destinations in 26 countries, including domestic flights in Argentina, Brazil, Chile, Colombia, Ecuador and Peru, and international services within Latin America as well as to Europe, the United States, the Caribbean, Oceania, Asia and Africa. LATAM and its 28 affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 20-11254) on May 25, 2020. Affiliates in Chile, Peru, Colombia, Ecuador and the United States are part of the Chapter 11 filing. The Debtors disclosed $21,087,806,000 in total assets and $17,958,629,000 in total liabilities as of Dec. 31, 2019. The Hon. James L. Garrity, Jr., is the case judge. The Debtors tapped Cleary Gottlieb Steen & Hamilton LLP as bankruptcy counsel, FTI Consulting as restructuring advisor, Lee Brock Camargo Advogados as local Brazilian litigation counsel, and Togut, Segal & Segal LLP and Claro & Cia in Chile as special counsel. The Boston Consulting Group, Inc. and The Boston Consulting Group UK LLP serve as the Debtors' strategic advisors. Prime Clerk LLC is the claims agent. The official committee of unsecured creditors formed in the case tapped Dechert LLP as its bankruptcy counsel, Klestadt Winters Jureller Southard & Stevens, LLP, as conflicts counsel, UBS Securities LLC as investment banker, and Conway MacKenzie, LLC, as financial advisor. Ferro Castro Neves Daltro & Gomide Advogados is the committee's Brazilian counsel. The Ad Hoc Group of LATAM Bondholders tapped White & Case LLP as counsel. Glenn Agre Bergman & Fuentes, LLP, led by managing partner Andrew Glenn and partner Shai Schmidt, has been retained as counsel to the Ad Hoc Committee of Shareholders. LUCERO LLC: Seeks to Hire Belvedere Legal as Bankruptcy Counsel --------------------------------------------------------------- Lucero LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of California to employ Belvedere Legal, a Professional Corporation to serve as legal counsel in its Chapter 11 case. The firm will provide these services: a. advise and represent the Debtor in all matters and proceedings within this Chapter 11 case other than those particular areas that may be assigned to special counsel; b. assist the Debtor in any manner relevant to a review of its debts, obligations, maximization of its assets and where appropriate, disposition thereof; c. assist the Debtor in the operation, reorganization and liquidation of its business, if appropriate; d. assist the Debtor in the performance of all of its duties and powers under the Bankruptcy Code and Bankruptcy Rules, and in the performance of such other services; and e. represent the Debtor in dealing with its creditors and other constituencies, analyzing the claims in this case and formulating and seeking approval of a plan of reorganization. The firm will be paid at the rate of $495, and will also be reimbursed for out-of-pocket expenses incurred. Matthew Metzger, Esq. a partner at Belvedere Legal, disclosed in a court filing that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Matthew D. Metzger, Esq. Belvedere Legal, PC 1777 Borel Place, Suite 314 San Mateo, CA 94402 Tel: (415) 513-5980 Fax: (415) 513-5985 Email: mmetzger@belvederelegal.com About Lucero LLC Lucero, LLC, a company in San Mateo, Calif., sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Calif. Case No. 22-30058) on Jan. 31, 2022, listing up to $10 million in assets and up to $1 million in liabilities. Henry Richard Lucero, managing member, signed the petition. Judge Dennis Montali oversees the case. Belvedere Legal, PC, led by Matthew D. Metzger, Esq., is the Debtor's legal counsel. MAINSTREET PIER: Has Deal on Cash Collateral Access --------------------------------------------------- Mainstreet Pier, LLC and Independent Bank have advised the U.S. Bankruptcy Court for the District of Colorado they have reached an agreement regarding the Debtor's use of cash collateral and now desire to memorialize the terms of this agreement into an agreed order. The Parties agree the Agreed Final Order Authorizing Use of Cash Collateral and Providing Adequate Protection dated October 1, 2021 will be extended to and including March 10, 2022. In addition to the forms of adequate protection provided for in the Cash Collateral Order, the Debtor has agreed to: (i) maintain and retain the funds totaling at least $100,000 currently on deposit in accounts numbered 1200040259 and 1200040366 with the Secured Lender; (ii) promptly share with the Secured Lender any: (a) offers to purchase the real property belonging to the Debtor; and (b) offers to refinance the secured debt owing to the Secured Lender; and (iii) allow inspectors and appraisers retained by the Secured Lender or its counsel to access the Debtor's property during normal business hours. A copy of the stipulation is available at https://bit.ly/3HSKkZ4 from PacerMonitor.com. About Mainstreet Pier, LLC Mainstreet Pier, LLC is a Colorado limited liability company which owns and operates a boutique hotel, commonly known at The Ascent on Main Street. The Ascent has 51 hotel rooms, operates two restaurants and an event center, and leases out another two restaurants and a jewelry store. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Colo. Case No. 21-14682) on September 10, 2021. In the petition signed by Rick Hill, manager, the Debtor disclosed up to $50,000 in assets and up to $50 million in liabilities. Jonathan M. Dickey, Esq., at Kutner Brinen Dickey Riley, P.C. is the Debtor's counsel. Independent Bank, as lender, is represented by: John F. Young, Esq. Markus Williams Young & Hunsicker LLC 1775 Sherman Street, Suite 1950 Denver, CO 80203 Tel: (303) 830-0800 Fax: (303) 830-0809 MALLINCKRODT PLC: Irish Court Appoints Interim Examiner ------------------------------------------------------- Ellen O'Riordan of the Irish Times reports that the High Court of Ireland has appointed an interim examiner to a Dublin-based but US-run drugmaker Mallinckrodt PLC. At the High Court on Monday, Justice Michael Quinn said he was satisfied to appoint Michael McAteer of Grant Thornton as interim examiner to Mallinckrodt Public Limited Company. Mallinckrodt filed for bankruptcy in Delaware as the company, with EUR5.3 billion (EUR4.63 billion) in long-term debt, faced a string of US lawsuits accusing it of deceptively marketing opioids. While the company has no direct Irish employees, some 110 are resident in Ireland, and it has its centre of main residence in this jurisdiction. Mr Justice Quinn said this was a "complex case" where restructuring negotiations have been ongoing since prior to the opening of Chapter 11 proceedings in October 2020. He said the provisional examiner could immediately bring his expertise and judgment to bear on the plan and this was critical to ensure confidence in the company. This, he ruled, was "sufficient justification" for the appointment pending a hearing of the petition later this month. Earlier this month Mallinckrodt won US court approval to settle its opioid-related liabilities for about $1.7 billion and exit chapter 11 under a broader restructuring deal. The company, which is registered and incorporated in Ireland, requires court approval in this State before its Chapter 11 plan can take effect. It has said the reorganisation plan will reduce its debt by $1.3 billion. Mallinckrodt is pursuing a US court-approved Chapter 11 reorganisation that would set up a $1.6 billion trust to resolve opioid-related claims with American states, local governments and private individuals. Existing shares will be wiped out under the bankruptcy plan, while guaranteed unsecured bondholders are exchanging debt for ownership in the reorganised business. 'Onslaught' of actions Brian Kennedy SC, instructed by Arthur Cox, said the group has faced particular difficulties arising out of an "onslaught" of legal actions. He said the more than 3,000 legal cases brought against various Mallinckrodt companies have threatened the viability of the business and restructuring was necessary. While the group believes it has a "meritorious defence," the sheer volume of challenges has become more than it can handle, said Mr. Kennedy. He also said the company’s trading and operations has also been "significantly impacted" by the Covid-19 pandemic. An independent expert has assessed the company and believes it has a reasonable prospect of survival under the proposals if an interim examiner is appointed, said counsel. He said the petitioners, who are company directors, believe the appointment of an interim examiner at the earliest opportunity was "critically important" as there is an urgent need to progress the reorganisation of the company and regain certainty. Mr. Kennedy said there was "at least a risk" that there would be some opposition to the petition but he does not know if this will occur or what the nature of that opposition might be. Mr. Justice Quinn made various orders, including one appointing the interim examiner. The case is due to return before the court for mention on February 24th, with the petition to be heard the following week. 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: Seeks Last Chapter 11 Acthar Suit Pause Extension ------------------------------------------------------------------- Rick Archer of Law360 reports that Mallinckrodt PLC is asking a Delaware bankruptcy judge for one final extension of an order pausing lawsuits against the drugmaker relating to its marketing of Acthar gel products, saying it needs the injunction to see it through to the end of its Chapter 11 case. In a motion filed Friday, Feb. 11, 2022, Mallinckrodt asked U.S. Bankruptcy Judge John Dorsey to extend the now more than 14-month-old injunction, currently due to expire at the end of February, until such time as he approves the final version of Mallinckrodt's Chapter 11 plan. 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. MRA HOLDINGS: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: MRA Holdings LLC 18245 Forest Road Lynchburg, VA 24502 Business Description: MRA Holdings LLC is primarily engaged in renting and leasing real estate properties. Chapter 11 Petition Date: February 15, 2022 Court: United States Bankruptcy Court Western District of Virginia Case No.: 22-60132 Debtor's Counsel: David Cox, Esq. COX LAW GROUP, PLLC 900 Lakeside Drive Lynchburg, VA 24501-3602 Tel: (434) 845-2600 Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Paul J. Marten as manager. The Debtor did not file a list of its 20 largest unsecured creditors. A full-text copy of the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/YPLSDOQ/MRA_Holdings_LLC__vawbke-22-60132__0001.0.pdf?mcid=tGE4TAMA NMG HOLDING: Moody's Upgrades CFR to B3; Outlook Remains Stable --------------------------------------------------------------- Moody's Investors Service upgraded the ratings of NMG Holding Company, Inc. (dba "Neiman Marcus ") including its Corporate Family Rating to B3 from Caa1 and its Probability of Default Rating to B3-PD from Caa1-PD. The company's senior secured notes were also upgraded to Caa1 from Caa2. The outlook is stable. The upgrade reflects the company's continued progress to improve its operations and seize on the current strength in the luxury segment. The company has improved its credit metrics and liquidity position to reflect a more sustainable capital structure and its performance is more reflective of its business prior to the pandemic and its bankruptcy filing in May 2020. Upgrades: Issuer: NMG Holding Company, Inc. Corporate Family Rating, Upgraded to B3 from Caa1 Probability of Default Rating, Upgraded to B3-PD from Caa1-PD Senior Secured Regular Bond/Debenture, Upgraded to Caa1 (LGD4) from Caa2 (LGD4) Outlook Actions: Issuer: NMG Holding Company, Inc. Outlook, Remains Stable RATINGS RATIONALE Neiman Marcus' B3 corporate family rating reflects the expectation for only very modest-to-breakeven free cash flow generation as the company invests in working capital and capital expenditures. The rating also reflects Moody's view that the recovery in luxury apparel demand still remains at risk as occasions to dress, particularly for work, could be delayed or face permanent changes to consumer demand patterns as consumers maintain their more casual dressing habits. The company will need to continue to reactivate customers and attract a younger demographic which may prove challenging as competition increases, particularly as the brands offered through Neiman Marcus increase their direct to consumer efforts. Neiman Marcus' rating reflects its well-known reputation and solid position in the luxury apparel market. Although its core higher income demographic customer typically has the means to spend, participation remains dependent on the customer's desire to purchase. The rating also reflects its very good liquidity with $395 million of cash on hand and $743 million available on its undrawn revolver (unrated). The rating also acknowledges that while Neiman Marcus' leverage is currently moderate, there is a risk that it could increase as its current former lenders seek to divest their current ownership of the company. The stable outlook reflects Neiman Marcus' very good liquidity which will allow it to increase its investment in working capital and capital expenditures and that Neiman Marcus' financial strategy is expected to remain conservative. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Ratings could be downgraded if Neiman Marcus' sales and operating performance becomes inconsistent. Quantitatively, ratings could be downgraded if debt/EBITDA was sustained above 6.0 times, EBITA/Interest was sustained below 1.2 times or if its liquidity profile deteriorates. Any additional debt incurrence or shareholder friendly activities would be viewed negatively. Ratings could be upgraded if sales and operating performance continues to consistently improve, liquidity remains very good, and financial strategies support leverage sustained below 4.0x and EBIT/interest is sustained above 1.75x. Headquartered in Dallas, Texas, NMG Holding Company, Inc. operates 37 Neiman Marcus stores, 2 Bergdorf Goodman stores as well as an online and catalog presence. Total revenue was $3.7 billion for the LTM period ended October 30, 2021. The company's equity owners include PIMCO, Davidson Kempner, Sixth Street and JP Morgan Asset Management. The principal methodology used in these ratings was Retail published in November 2021. NUZEE INC: Incurs $2.8 Million Net Loss in First Quarter -------------------------------------------------------- Nuzee, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $2.80 million on $1.02 million of net revenues for the three months ended Dec. 31, 2021, compared to a net loss of $5.90 million on $517,987 of net revenues for the three months ended Dec. 31, 2020. As of Dec. 31, 2021, the Company had $14.26 million in total assets, $1.97 million in total liabilities, and $12.29 million in total stockholders' equity. Nuzee stated, "Since our inception in 2011, we have incurred significant losses, and as of December 31, 2021, we had an accumulated deficit of approximately $55.6 million. We have not yet achieved profitability and anticipate that we will continue to incur significant sales and marketing expenses prior to recording sufficient revenue from our operations to offset these expenses. In the United States, we expect to incur additional losses because of the costs associated with operating as an exchange-listed public company. We are unable to predict the extent of any future losses or when we will become profitable, if at all. "To date, we have funded our operations primarily with proceeds from registered public offerings and private placements of shares of our common stock. Our principal use of cash is to fund our operations, which includes the commercialization of our single serve coffee products, the continuation of efforts to improve our products, administrative support of our operations and other working capital requirements." As of Dec. 31, 2021, the Company had a cash balance of $10,967,104. The Company believes that its cash and cash equivalents will be sufficient to fund its planned operations and capital expenditure requirements for at least 12 months from Feb. 4, 2022. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/0001527613/000149315222003869/form10-q.htm About NuZee NuZee, Inc. (d/b/a Coffee Blenders) is a specialty coffee company and a single-serve pour-over coffee pouch producer and co-packer. The Company owns packing equipment developed in Asia for single serve pour over production. It co-packs single-serve pour-over coffee and tea bag style coffees for customers in the U.S. market and also co-packs for the South Korean market. NuZee reported a net loss of $18.55 million for the year ended Sept. 30, 2021, a net loss of $9.52 million for the year ended Sept. 30, 2020, and a net loss of $12.21 million for the year ended Sept. 30, 2019. OMEROS CORP: Vanguard Group Has 5.37% Equity Stake as of Dec. 31 ---------------------------------------------------------------- The Vanguard Group disclosed in a Schedule 13G/A filed with the Securities and Exchange Commission that as of Dec. 31, 2021, it beneficially owns 3,357,828 shares of common stock of Omeros Corp., representing 5.37 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/102909/000110465922018239/tv01575-omeroscorp.htm About Omeros Corporation Seattle, Washington-based Omeros -- www.omeros.com -- is a commercial-stage biopharmaceutical company committed to discovering, developing and commercializing small-molecule and protein therapeutics for large-market and orphan indications targeting inflammation, complement-mediated diseases, disorders of the central nervous system and immune-related diseases, including cancers. Omeros reported a net loss of $138.06 million for the year ended Dec. 31, 2020, a net loss of $84.48 million for the year ended Dec. 31, 2019, and a net loss of $126.76 million for the year ended Dec. 31, 2018. As of June 30, 2021, the Company had $145.39 million in total assets, $47.70 million in total current liabilities, $31.41 million in lease liabilities (non-current), $312.59 million in unsecured convertible senior notes, and a total shareholders' deficit of $246.30 million. POINTCLICKCARE TECHNOLOGIES: Moody's Downgrades CFR to B2 --------------------------------------------------------- Moody's Investors Service has downgraded PointClickCare Technologies Inc. (PCC) corporate family rating to B2 from B1, its probability of default rating to B2-PD from B1-PD, it's first-lien debt rating to B2 from B1, and its outlook has been changed to negative from stable. At the same time, Moody's has a assigned a B2 rating to PCC's new $400 million first-lien term loan tranche. The $400 million incremental term loan debt will be used to finance the acquisition of Audacious Inquiry, LLC (Audacious), a provider of coordination care software to the healthcare industry. "The downgrade is driven by PointClickCare's material increase in leverage in order to fund the acquisition of Audacious, signaling a shift to more aggressive fiscal policies" said Moody's analyst Jonathan Reid. "The negative outlook reflects the possibility that PCC could engage in further leveraging transactions, delaying deleveraging". Downgrades: Issuer: PointClickCare Technologies Inc. Corporate Family Rating, Downgraded to B2 from B1 Probability of Default Rating, Downgraded to B2-PD from B1-PD Gtd Senior Secured 1st Lien Bank Credit Facility, Downgraded to B2 (LGD4) from B1 (LGD3) Assignments: Issuer: PointClickCare Technologies Inc. Gtd Senior Secured 1st Lien Term Loan , Assigned B2 (LGD4) Outlook Actions: Issuer: PointClickCare Technologies Inc. Outlook, Changed To Negative From Stable RATINGS RATIONALE PointClickCare's (PCC, B2 CFR) credit profile is constrained by: 1) high leverage, with debt-to-EBITDA increasing to over 7x at year end 2022 after raising $400 million in incremental debt to finance the acquisition of Audacious Inquiry, LLC (Audacious); 2) aggressive fiscal policies highlighted by PCC's willingness to engage in materially leveraging transactions; and 3) it's small size and narrow focus on the niche end market of software for skilled nursing facilities and long-term care homes. The company is supported by: 1) favorable healthcare industry trends and demographics that should support good revenue and EBITDA growth; and 2) good liquidity, with the asset light nature of the company's business model supporting its ability to consistently generate positive free cash flow. Governance risk considerations include PCC's shift to more aggressive financial policies, illustrated by recent history of large debt funded acquisitions. All of the debt in PCC's capital structure is the result of two acquisitions; Collective Medical in 2021 and Audacious in 2022, and the company's acquisitive growth strategy is the driver of its high leverage. PCC has good liquidity, with sources of cash around $315 million over the next four quarters compared to uses of around $9 million. PCC's sources of liquidity are comprised of around $155 million of cash on balance sheet expected pro-forma for the close of the Audacious acquisition, full availability under the company's $100 million revolving credit facility (due 2025), and free cash flow in excess of $60 million over the next four quarters. Uses of cash are comprised of around $9 million of mandatory amortization payments on the company's first lien term loan debt. The company expects to amend the springing covenant on its revolving credit facility to 6.25x times net first-lien-leverage from 5.75x (which springs when the revolver is 35% drawn) under its current credit agreement. Moody's expect PCC would be in compliance with the covenant if tested. The next nearest maturities are the first-lien term loans due 2027. PointClickCare's first-lien term loans and first-lien revolver are rated B2, in line with the company's CFR, as they are the only debt instruments in the company's capital structure. The revolver and term loans are pari-pasu and secured by a first-lien pledge of substantially all the assets of PointClickCare Corp. and its domestic subsidiaries. The negative outlook reflects the potential that PCC's aggressive financial policies could lead to it undertaking additional leveraging transactions in the next 12-18 months, delaying its path toward deleveraging. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS PCC's ratings could be upgraded if it substantially increases and diversifies its revenue base, if its debt-to-EBITDA is sustained below 5x (over 7x expected in F2022), and if the free cash flow (FCF)-to-debt is sustained above 10%. PCC's ratings could be downgraded if the pace of revenue and EBITDA growth slows dramatically as a result of soft industry conditions, if its debt-to-EBITDA is sustained above 7x (over 7x expected in F2022), or if the company's liquidity profile deteriorated. Headquartered in Mississauga, Ontario, PointClickCare Technologies Inc. provides SaaS platforms that help integrate electronic health records within the critical business functions of, primarily, skilled nursing facilities in the US and Canada. The company is privately owned by a group that is majority controlled by PCC's initial founders. The principal methodology used in these ratings was Software Industry published in August 2018. POINTCLICKCARE TECHNOLOGIES: S&P Lowers ICR to 'B' on Acquisition ----------------------------------------------------------------- S&P Global Ratings lowered its ratings on PointClickCare Technologies Inc. (PCC), including its long-term issuer credit rating to 'B' from 'B+'. S&P is also assigning a 'B' issue-level rating to the new first-lien term loan and a '3' recovery rating. S&P removed the ratings from CreditWatch, where it placed them Feb. 2, 2022, with negative implications. S&P said, "The outlook is stable, reflecting our belief that PCC's adjusted debt to EBITDA will generally remain in the 5x-7x range from healthy organic growth and additional debt-funded acquisitions. Ontario, Canada-based health care technology company PCC plans to acquire Audacious Inquiry for $400 million to expand its customer network, funded with an incremental $400 million first-lien term loan. "The downgrade reflects PCC's acquisition of Audacious, which we expect to increase adjusted debt to EBITDA higher than our prior expectations with little near-term contribution to profit. In 2022, we now expect adjusted debt to EBITDA of about 6.2x, above our prior expectations for the 4x-5x range. Although we expected PCC to make acquisitions, Audacious is larger than we expected, and the company is funding the transaction entirely with debt despite its negative effect on EBITDA in 2022. We assume PCC will retain its balance sheet cash, likely to fund additional acquisitions. Additionally, the company is loosening financial covenants in its credit agreement, including a more liberal definition of EBITDA. The combination of the above constitutes a material divergence from our prior opinion of the company's financial policy. "At the same time, PCC's founders continue to hold voting control despite majority ownership by financial sponsors. We believe they will enact a slightly more conservative financial policy than a typical financial sponsor-owned company, keeping leverage in the 5x-7x range." The acquisition provides PCC a foothold with managed care organizations, expanding PCC's customer base and reach. Audacious provides real-time alerts to managed care organizations when covered patients enter health care facilities, so that managed care is more connected to the treatment of patients, potentially improving care and lowering costs. That said, S&P does not think Audacious meaningfully changes PCC's competitive position in the next three years, with upside in the next 5-7 years. This acquisition follows PCC's acquisition in late 2020 of Collective Medical, which has increased revenue but not yet contributed meaningfully to EBITDA. While PCC has a steady and expanding core business, the company operates in a saturated market and is investing in adjacencies to add new customers, keeping debt to EBITDA high. The company's primary product is software to manage enterprise health records (EHR) for skilled nursing (SNF) and senior care facilities. PCC is the market leader in EHR for SNF clients, but high switching costs limit its ability to attract new customers. Instead, PCC increases revenue by onboarding more facilities of current clients and selling new add-on services. To expand its customer base and position for long-term growth, PCC is acquiring businesses to add customers outside of SNF and senior care facilities. This includes hospitals with the Collective Medical acquisition and managed care organizations with Audacious. PCC has longer-term aspirations to better connect payers, acute care providers, and post-acute providers, but it will be years before this strategy contributes meaningfully to EBITDA. S&P expects PCC to continue to acquire companies at very high valuation multiples to advance this strategy, which S&P thinks will keep adjusted to EBITDA to debt in the 5x-7x range. Partly offsetting the above risks, PCC's leading position with SNF customers provides a reliable source of organic growth and average profitability to help fund its longer-term aspirations. PCC delivers strong recurring revenue with its software-as-a-service EHR products, 97% gross revenue retention rates, and the ability to increase prices annually. The revenue growth potential with SNF customers is still high because of a compelling value proposition, but the pace of growth is a function of customers' willingness and ability to implement new features. PCC also has good customer diversification and steady end markets. The risk from losing a single large customer (e.g., the customer is acquired by a provider with a different EHR) is low, with the top five accounting for about 7% of fiscal 2020 revenue and an average client tenure of more than 25 years. The SNF and senior living industries will likely expand with the aging population and are unlikely to be replaced by other care settings, providing a reliable source of revenue. In addition, the expansion strategy in home health and acute care is pursuing lightly penetrated niches with relatively large potential customers. PCC benefits from many relatively large customers, which on average will consolidate the industry, in our view. PCC will expand its installed facilities as its customers increase. The stable outlook reflects that PCC can continue to expand its clients' relationship and find success in newer markets, resulting in double-digit percent revenue growth and pro forma EBITDA margin expansion in the next 12 months. S&P expects cash flow and EBITDA expansion to support its growth strategy and leverage to remain 5x-7x. S&P could consider a lower rating in the next 12 months if it expects a more aggressive pace of acquisitions or operating weakness to result in: -- Adjusted debt to EBITDA rises above 9x; and -- Free cash flow to debt decreases below 3%. -- S&P would view this as a deviation from the company's stated financial policy. S&P does not expect to raise the rating over the next 12 months. S&P could consider it if: -- S&P expects adjusted debt to EBITDA to remain below 5x; and -- The company demonstrates a commitment and track record of operating at this lower leverage. ESG credit indicators: E-2, S-2, G-3 S&P said, "Governance factors are a moderately negative consideration in our credit rating analysis. Our assessment of the company's financial risk profile as highly leveraged reflects corporate decision-making that prioritizes the interests of controlling owners, in line with our view of most rated entities owned by private equity sponsors. Our assessment also reflects the generally finite holding periods and a focus on maximizing shareholder returns." PULMATRIX INC: Renaissance Entities Report 4.36% Equity Stake ------------------------------------------------------------- Renaissance Technologies LLC and Renaissance Technologies Holdings Corporation disclosed in a Schedule 13G/A filed with the Securities and Exchange Commission that as of Dec. 31, 2021, they beneficially own 2,450,601 shares of common stock of Pulmatrix, Inc., representing 4.36 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/1574235/000103738922000080/pulm-13g_20211231.txt About Pulmatrix Pulmatrix, Inc. -- http://www.pulmatrix.com-- is a clinical stage biopharmaceutical company developing innovative inhaled therapies to address serious pulmonary and non-pulmonary disease using its patented iSPERSE technology. The Company's proprietary product pipeline includes treatments for serious lung diseases such as allergic ronchopulmonary aspergillosis and lung cancer, as well as neurologic disorders such as acute migraine. Pulmatrix's product candidates are based on iSPERSE, its proprietary engineered dry powder delivery platform, which seeks to improve therapeutic delivery to the lungs by maximizing local concentrations and reducing systemic side effects to improve patient outcomes. Pulmatrix reported a net loss of $19.31 million for the year ended Dec. 31, 2020, a net loss of $20.59 million for the year ended Dec. 31, 2019, and a net loss of $20.56 million for the year ended Dec. 31, 2018. As of Sept. 30, 2021, the Company had $55.75 million in total assets, $10.56 million in total liabilities, and $45.19 million in total stockholders' equity. PYXUS INTERNATIONAL: Has Plans of Exiting Hemp, Cannabis Business ----------------------------------------------------------------- Zac Exxone of Triangle Business Journal reports that a Morrisville tobacco company has exited the cannabis and hemp industries about four years after entering the sectors and less than two years since declaring bankruptcy. Pyxus International (OTCMKTS: PYYX) announced Wednesday, Feb. 9, 2022, that it no longer has subsidiaries that produce or sell cannabis after completing the sale of its assets of FIGR Norfolk. The company is also no longer involved in industrial hemp or Cannabidiol (CBD). The completion of this sale comes about a year after the company, formerly known as Alliance One International, announced its decision to divest its cannabis business to focus on tobacco and e-liquid. "Since announcing our intention to focus on tobacco and e-liquids last year, we have made tremendous strides in streamlining our operations and reducing our [selling, general and administrative] costs," said Pyxus President and CEO Pieter Sikkel. "Moving forward, we will continue to focus on our tobacco-related business while leveraging the company's strengths in agronomy, traceability and sustainability in order to deliver value to our stakeholders." The company entered the cannabis space in 2018. At the time, the company said "[t]he extension into growth segments, namely e-liquids, industrial hemp and cannabis, expands Alliance One's presence in higher margin, fast-growing categories." But, about two years later, amid the Covid-19 pandemic, the company filed for Chapter 11 bankruptcy protection. The company completed this restructuring in August 2020 and reported it was able to reduce its debt by more than $400 million. Shortly after, the company in January 2021 announced its plans to exit the cannabis and hemp businesses to focus on its more profitable tobacco and e-liquid businesses. The company's decision was made in light of its "limited capital resources and the continuing capital requirements to develop and expand these early-stage businesses," states its financial report for the quarter ending Dec. 31. The company reported its selling, general and administrative expenses decreased by $11.7 million, or 25.5 percent, during the quarter. And that its sales and operating revenues increased $49.3 million, or 13 percent increase. A day after the company announced its exit from the cannabis industry, Pyxus reported it has entered into a $100 million credit facility with PNC Bank (NYSE: PNC). This agreement replaces a preexisting credit facility that was due to mature in February 2023. "This agreement is the result of strategic measures taken by our company to address liquidity," said Flavia Landsberg, the company's executive vice president and chief financial officer. "It supports the execution of our future growth and strengthens our business' financial partnerships and relationships." The company's stock price closed Feb. 10 at $1.65 a share. Its 52-week high was $7.28. About Pyxus International Pyxus International Inc. -- http://www.pyxus.com/-- is a global agricultural company with 145 years of experience delivering value-added products and services to businesses, customers and consumers. Pyxus reported a net loss of $71.17 million for the year ended March 31, 2019, compared to net income of $51.91 million for the year ended March 31, 2018. As of March 31, 2019, Pyxus had $1.86 billion in total assets, $1.67 billion in total liabilities, and $192.02 million in total stockholders' equity. On June 15, 2020, Pyxus and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 20-11570). Judge Laurie Selber Silverstein oversees the cases. The Debtors tapped Simpson Thacher & Bartlett, LLP as general bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP as Delaware bankruptcy counsel; and Lazard Freres & Co. LLC and RPA Advisors, LLC as restructuring advisors. Prime Clerk, LLC is the claims and noticing agent and administrative advisor. QUALITY MACHINE: Seeks Cash Collateral Access Thru March 31 ----------------------------------------------------------- Quality Machine of Iowa, Inc. asks the U.S. Bankruptcy Court for the District of Minnesota for authority to continue using cash collateral and provide adequate protection through March 31, 2022, on the same terms as provided in the Final Cash Collateral Order. The Debtor requires the use of cash collateral to, among other things, pay its employees, purchase inventory, and fulfill outstanding production obligations. Since January 6, 2022, the Debtor has operated with the use of cash collateral subject to the terms and restrictions imposed by the Final Cash Collateral Order. The Final Cash Collateral Order authorized among other things, the use cash collateral in accordance with the terms of a budget through February 25, 2022. During the period between the Petition Date and February 4, 2022, the Debtor has operated below forecasted projections. Supply chain issues have hampered the Debtor' ability to procure inventory and supplies needed to fulfill customer orders and many customers will not accept partial shipments on orders. As a result, actual sales were below projections by approx. $300,000. As a result, the Debtor is actively seeking the investment of new capital and anticipates conducting a sales process of all or substantially all of its assets pursuant to 11 U.S.C. section 363. As adequate protection for the Junior Liens, the Debtor proposes to (i) grant replacement liens in the same collateral for the Junior Liens subject only to the interests of the Lender; and (ii) report and account for the use of any cash proceeds by the Debtor. The Debtor projects it can operate profitably in the ordinary course with use of cash collateral as set forth in the budget. The Court will hold a hearing on the matter on February 28, 2022 at 11:30 a.m. A copy of the motion is available at https://bit.ly/3Lzxbqc from PacerMonitor.com. About Quality Machine of Iowa Quality Machine of Iowa, Inc. is engaged in precision production machining of metal parts. The company has two locations: Minneapolis, Minn., and Audubon, Iowa. Quality Machine of Iowa sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Minn. Case No. 21-42169) on Dec. 3, 2021. In the petition signed by Timothy Greene, owner and chief executive officer, the Debtor disclosed $8,368,270 in assets and $10,343,162 in liabilities. Judge William J. Fisher oversees the case. Cameron A. Lallier, Esq., at Foley and Mansfield, PLLP serves as the Debtor's legal counsel. The Debtor also tapped Platinum Management, LLC as its financial consultant and restructuring advisor and John A. Knutson & Co., PLLP as its accountant. The U.S. Trustee for Region 12 appointed an official committee of unsecured creditors in the Debtor's case on Dec. 21, 2021. SALAD & CO: Files Emergency Bid to Use Cash Collateral ------------------------------------------------------ Salad & Co, LLC asks the U.S. Bankruptcy Court for the Southern District of Florida, Miami Division, for authority to use cash collateral. As of petition date, there is no cash collateral. The January 15th payment on the lease from Cake Lounge Miami, LLC was paid in the amount of $1,502, and the balance of the $3,450 was supposed to be sent to Ms. Denise Pichardo's trust account, to be held pursuant to the hearings held on January 23. Ms. Pichardo has ignored all emails and requests to acknowledge that the other monies have been placed in her trust account, as ordered by the Court. The cash collateral, which the Debtor believes will be available, will be based upon the new lease between the Debtor and Cake Lounge Miami. The proposed payments are $5,000 per month, plus all applicable State and Local sales tax. The Debtor intends to deposit these funds into the Debtor's DIP account and immediately send to the lenders the amount of $5,000 of rents as partial adequate protection. The purpose of depositing it into the Debtor's DIP account is that the Debtor is responsible for paying the applicable State and Local state taxes and filing the required reporting requirements. Upon information and belief, the rents that have been received by Ms. Pichardo's clients have not accounted for any State sales taxes and no reports have been filed. In addition, the Debtor will place into its counsel's trust account the amount of $150,000, which will be used in the amount of $5,000 per month, as further adequate protection to the lenders. The Debtor is attempting, or will attempt to, refinance the property and payoff the value of the property with 5% interest. In the event a refinance is unavailable, then the Debtor will proceed with the filing of the Chapter 11 Plan of Reorganization and Disclosure Statement. Further, the Debtor will immediately pay into the DIP account the amount of $37,834 in past due real estate taxes and immediately bring all past due real estate taxes current. The Debtor also requests that the hearing be set on February 23, 2022, which is the same day and time other requests are being heard. A copy of the motion is available at https://bit.ly/34zCFkd from PacerMonitor.com. About Salad & Co. Inc. Salad & Co. Inc. is a single asset real estate debtor (as defined in 11 U.S.C. Section 101(51B)). It owns an investment property located at 1245 SW 22 St Miami, Fla., valued at $630,000. Salad & Co. filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 21-21629) on Oct. 13, 2021, listing $630,000 in assets and $1,262,353 in liabilities. Judge Laurel M. Isicoff oversees the case. Michael A. Frank, Esq., at the Law Offices of Frank & De La Guardia serves as the Debtor's legal counsel. SEAGATE TECHNOLOGY: Egan-Jones Keeps BB+ Senior Unsecured Ratings ----------------------------------------------------------------- Egan-Jones Ratings Company, on January 31, 2022, maintained its 'BB+' foreign currency and local currency senior unsecured ratings on debt issued by Seagate Technology, LLC. Headquartered in Cupertino, California, Seagate Technology, LLC manufactures and distributes hard drives and storage solutions. SECONDWAVE CORP: To Pay Creditors From Future Income ---------------------------------------------------- SecondWave Corporation submitted an Amended Small Business Plan of Reorganization. The Debtor's value for all assets on the date of filing the bankruptcy case, according to the filed schedules, is $5,454. Secondwave's financial projections, shows that the Debtor will have projected disposable income for the proposed 60 months of plan payments of $2,725 a month. This Plan of Reorganization under Chapter 11 of the Bankruptcy Code proposes to pay creditors of Secondwave from future income from the sales of refurbished phones on the wholesale market. The Debtor believes that, in the beginning it will be able to pay about $2,725 per month into the Plan. The income and expenses of the business will need to be reviewed yearly to determine if additional income has been generated which may require payment modification as each year ends. If the Plan is a consensual plan, then the debtor may modify until substantial consummation of the plan (the commencement of payments). If the Plan is non-consensual, modification of the Plan will need to be obtained by motion and notice to creditors with Court approval, and the right to modify will continue during the plan term. US Bank will receive an amount up to the value of the assets scheduled on the date of filing. Once US Bank is paid in full for its secured debt, US Bank will be an unsecured creditor and will be paid according to the plan provisions allowing for payment to unsecured creditors pro-rata through the unsecured pool of the plan filed to reflect greater amounts. The SBA will be paid through the unsecured pool pro-rata. Under the Plan, holder of Class 2 Unsecured Claim of Small Business Administration will be paid pro rata. Class 2 is impaired. Class 3 Unsecured Claim of US Bank. The Debtor's valued assets are $5,454. Therefore, the balance of the claim of $36,546 will be treated as an unsecured claim. The claim will be paid pro rata. Class 3 is impaired. Class 4 Unsecured Claim of Wesley Poritz, Claim No.4 totaling $28,560 will be paid pro rata. Class 4 is impaired. Class 5 Unsecured Claim of Wesly Poritz Claim No.5 totaling $45,499 will be paid pro rata. Class 5 is impaired. Class 6 Unsecured Claim of Zachary Bethke Claim No.6 totaling $23,329 will be paid pro rata. Class 6 is impaired. Class 7 Creditors with, unsecured, non-priority claims of more than $2,000 will be paid pro rata. Class 7 is impaired. Class 8 Creditors with, unsecured, non-priority claims of $2,000 or less will be paid pro rata. Class 8 is impaired. Attorney for the Debtor: David C. Smith, Esq. LAW OFFICES OF DAVID SMITH, PLLC 201 Saint Helens Street Tacoma, WA 98402 Tel: (253) 272-4777 Fax: (253) 461-8888 A copy of the Plan dated Feb. 9, 2022, is available at https://bit.ly/3sC5SD7 from PacerMonitor.com. About Secondwave Corporation Secondwave Corporation is a Washington family-owned and operated for-profit corporation. Founded in 2011 serving over 100 charities, its primary business is recycling old cell phones through an online recycling program. To date, Secondwave has recycled over 150,000 devices. The old, damaged phones are recycled in the USA and newer phones are refurbished and resold; then Secondwave sells the phones on the wholesale market with prices ranging from $0.25 for scrap phones to over $150.00 for new phones. A portion of the proceeds is then given to a charity of the customer's choice. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wash. Case No. 21-41320) on Aug. 9, 2021. In the petition signed by Ryan Rubel, president, the Debtor disclosed up to $500,000 in assets and up to $1 million in liabilities. David C. Smith at Law Offices of David Smith, PLLC is the Debtor's counsel. SEMILEDS CORP: Renaissance Entities Own Less Than 1% Equity Stake ----------------------------------------------------------------- Renaissance Technologies LLC and Renaissance Technologies Holdings Corporation disclosed in a Schedule 13G/A filed with the Securities and Exchange Commission that as of Dec. 31, 2021, they beneficially own 34,800 shares of common stock of SemiLEDs Corporation, representing 0.78 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/1333822/000103738922000057/leds-13g_20211231.txt About SemiLEDs Headquartered in Miao-Li County, Taiwan, R.O.C., SemiLEDs -- http://www.semileds.com-- develops and manufactures LED chips and LED components for general lighting applications, including street lights and commercial, industrial, system and residential lighting, along with specialty industrial applications such as ultraviolet (UV) curing, medical/cosmetic, counterfeit detection, horticulture, architectural lighting and entertainment lighting. SemiLEDs reported a net loss of $2.86 million for the year ended Aug. 31, 2021, compared to a net loss of $547,000 for the year ended Aug. 31, 2020. As of Nov. 30, 2021, the Company had $17.47 million in total assets, $13.32 million in total liabilities, and $4.15 million in total equity. Diamond Bar, California-based KCCW Accountancy Corp., the Company's auditor since 2019, issued a "going concern" qualification in its report dated Dec. 29, 2021, citing that the Company incurred recurring losses from operations and has an accumulated deficit, which raises substantial doubt about its ability to continue as a going concern. SOUTHERN ROCK: March 31 Hearing on Amended Disclosures ------------------------------------------------------ Judge Karen K. Specie will convene a hearing to consider the approval of the Amended Disclosure Statement of Southern Rock & Lime, Inc., on March 31, 2022, at 2:00 p.m. Eastern Time. March 24, 2022, is fixed as the last day for filing and serving written objections to the Amended Disclosure Statement. On or before March 1, 2022, the debtor−in−possession or proponent of the Plan must transmit the Amended Disclosure Statement and Plan to any trustee, each committee appointed pursuant to 11 U.S.C. Section 1102, the Securities and Exchange Commission and any party in interest who has requested or requests in writing a copy of the amended disclosure statement and plan. About Southern Rock & Lime Southern Rock & Lime, Inc., filed for Chapter 11 protection (Bankr. N.D. Fla. Case No. 21-50021) on Feb. 24, 2021. James E. Clemons, Jr., president, signed the petition. At the time of the filing, the Debtor disclosed $1 million to $10 million in both assets and liabilities. Judge Karen K. Specie oversees the case. Bruner Wright, PA, and Professional Management Systems, Inc., serve as the Debtor's legal counsel and accountant, respectively. STRADTMAN PARK: Seeks Cash Collateral Access -------------------------------------------- Stradtman Park, LLC asks the U.S. Bankruptcy Court for the Western District of New York, Buffalo Division, for, among other things, authority to use cash collateral and provide adequate protection. The Debtor require the use of cash collateral to pay post-petition operating expenses, certain tax obligations, and reorganization expenses. The Debtor owns and operates the real estate park at 100 Stradtman Street located in Buffalo, New York, which is its principal asset. Prior to the filing of the Chapter 11 voluntary petition, Wilmington Trust, National Association -- as trustee for the benefit of the registered holders of JPMBB Commercial Mortgage Securities Trust 2014-C24, Commercial Mortgage Pass-Through Certificates, Series 2014-C24, by and through its Special Servicer, LNR Partners LLC -- accelerated the debt on the underlying mortgage, commenced a foreclosure action against the 100 Stradtman Street property and obtained an ex parte appointment of a rent receiver. The Leader also claims that under the mortgage documents, it holds a security interest in all rents from the operation of the Debtor s property and business. The cash proceeds of any rents may constitute cash collateral securing the Bank's claim within the meaning of 11 U.S.C. A section 363(a). As of the date of filing the Cash Collateral Motion, the Debtor's cash balance was approximately $111,072. As adequate protection, the Debtor proposes to provide the lender a post-petition lien on post-petition cash and accounts receivable, and the proceeds thereof to replace any cash collateral used by the Debtor. This post-petition lien will have the same validity, perfection, and priority of, and will be subject to the same objections and avoidance and other claims that may exist with respect to. A copy of the motion and the Debtor's budget for February and March 2022 is available at https://bit.ly/3LxK6Ja from PacerMonitor.com. The Debtor projects $73,905 in monthly rent revenue and $118,625 in total disbursements for the month. About Stradtman Park LLC Stradtman Park LLC owns and operates a real estate park known as 100 Stradtman Street Buffalo (Town of Cbeektowaga), New York 14206, which is its principal asset. The spaces are rented to various businesses. Stradtman Park sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D.N.Y. Case No. 22-10064) on January 27, 2022. In the petition signed by Rosanne DiPizio, manager, the Debtor disclosed up to $10 million in both assets and liabilities. James D. Tresmond, Esq., at Tresmond & Tresmond LLP is the Debtor's counsel. TAB RESTAURANT: Case Summary & Six Unsecured Creditors ------------------------------------------------------ Debtor: Tab Restaurant Group, LLC d/b/a Twisted Root Burger Co 4270 Aloma Avenue Winter Park, FL 32792 Business Description: Tab Restaurant Group, LLC is a burger restaurant operator in Florida. Chapter 11 Petition Date: February 15, 2022 Court: United States Bankruptcy Court Middle District of Florida Case No.: 22-00529 Debtor's Counsel: Jeffrey S. Ainsworth, Esq. BRANSONLAW, PLLC 1501 E. Concord Street Orlando, FL 32803 Tel: 407-894-6834 Fax: 407 894 8559 Email: jeff@bransonlaw.com Total Assets: $32,547 Total Liabilities: $1,145,425 The petition was signed by Glenn O. Pilson as managing member. A full-text copy of the petition containing, among other items, a list of the Debtor's six unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/WG2TA4A/Tab_Restaurant_Group_LLC__flmbke-22-00529__0001.0.pdf?mcid=tGE4TAMA TENEO HOLDINGS: $80MM Incremental Loan No Impact on Moody's B2 CFR ------------------------------------------------------------------ Moody's Investors Service said that Teneo Holdings LLC's plan to raise $80 million of incremental senior secured first lien term loan debt due 2025 increases Debt-to-EBITDA leverage. However, the financing has no immediate impact on Teneo's ratings, including the B2 Corporate Family Rating, B2-PD probability of default rating and B2 senior secured ratings, or the stable outlook. Net proceeds from the proposed add-on term loan will be used to repay revolver borrowings, fund the bolt-on acquisition of an identified business, and add cash to the balance sheet for future acquisitions. During January 2022, Teneo acquired KPMG's Cayman and British Virgin Islands restructuring business, which was funded with cash on hand and revolver borrowings. The acquisitions pose limited execution risk related to the carve out transitions. However, Teneo successfully integrated Deloitte's UK restructuring services business that was acquired in 2020, which was much larger in scale. The transaction increases pro-forma leverage (Moody's adjusted) to approximately 5.5x from an estimated 5.1x as of December 31, 2021. Nevertheless, Moody's expects leverage will remain below 6x and free cash flow as a percentage of debt to be in the mid-to-high single digit range through 2022. Despite the increase in leverage, the acquisitions strengthen Teneo's global financial advisory business, expand the company's footprint into additional financial markets, and diversify revenues across business units. Teneo's increased scale and diversification also reduces the key person risk profile previously inherent in the earlier years of the business. Teneo, headquartered in New York, NY, is a provider of strategic advisory services to CEOs and senior executives of companies across the globe. The company has been majority owned by the private equity firm CVC Capital Partners since 2019. TENRGYS LLC: Unsecureds to Recover 100% Under Plan -------------------------------------------------- Tenrgys, LLC, et al., submitted a Fifth Amended Disclosure Statement. The Plan provides for the reorganization of the Debtors as a going concern and will significantly reduce the Reorganized Debtors' long-term debt and annual interest payments, resulting in a stronger, de-levered balance sheet for the Reorganized Debtors, while providing the Debtors and Telpico with additional operational and investment capital. The Plan provides for: (a) the equitization of the Allowed 2012 RBL Facility debt through a combination of a new class of membership interest (Class C), which will provide certain financial rights in accordance with the Waterfall and 51% of the voting rights in Reorganized Tenrgys, and an assignment to PanAm of a 70% membership interest in Telpico; (b) the partial equitization and restructuring of the 2013 Loan Claim through a combination of a new class of membership interests (Class B), which will provide for 5% of the financial rights in Reorganized Tenrgys and have certain minority protections as described in the RSA, a 5% equity interest in Telpico through a 16⅔% membership interest in Newco, with minority protections in Newco to be agreed, a $20 million cash payment, and a $20 million second-lien secured takeback term loan; (c) payment in full of Allowed General Unsecured Claims on the Effective Date or otherwise in the ordinary course of the Debtors' business; (d) funding for the development of the Colombian Assets; (e) two exit facilities providing up to $30 million in new money investments to be funded on the Effective Date; and (f) the ability of the Holders of Existing Tenrgys Equity Interests to retain their membership interests (Class A) in Tenrgys through the financial rights in accordance with the Waterfall and 49% of the voting rights in Reorganized Tenrgys, as well as the receipt of a 25% equity interest in Telpico through an 83.33% membership interest in Newco. Under the Plan, holders of Class 4 Unsecured 2013 Loan Claims totaling $122,327,458 will receive: (i) payment of $20,000,000 in Cash; (ii) the Class B Reorganized Tenrgys Interests; (iii) the Class B Newco Interests; (iv) payment in Cash of the Consenting 2013 Loan Lender Restructuring Expenses as set forth in the RSA; and (v) a new $20 million floating rate second-lien term loan with the terms and other conditions described in the RSA. Creditors will recover 41.5% of their claims. Class 4 is impaired. Class 5 General Unsecured Claims totaling $0 to $54,000 will receive, at the Debtors' option (with the consent of the Consenting 2013 Loan Lender and PanAm), either: (i) payment in full in Cash, payable on the later of the Effective Date and the date that is 10 Business Days after the date on which such General Unsecured Claim becomes an Allowed General Unsecured Claim, in each case, or as soon as reasonably practicable thereafter, (ii) such Holder's Allowed General Unsecured Claim will be Reinstated, or (iii) such Holder will receive such other treatment so as to render such Holder's Allowed General Unsecured Claim Unimpaired under section 1124 of the Bankruptcy Code. Creditors will recover 100% of their claims. Class 5 is unimpaired. The Debtors shall fund distributions under the Plan with one or more of the following, subject to appropriate definitive agreements and documentation: (1) the New Working Facility; (2) the New Second Lien Term Loan; (3) the New Subordinated Term Loan; (4) the New Reorganized Tenrgys Membership Interests; (5) the Telpico Membership Interests; and (6) encumbered and unencumbered Cash on hand, including cash from operations of the Debtors. The Court has scheduled the Plan confirmation hearing for March 2, 2022, at 9:00 a.m. (prevailing Central Time). Objections to confirmation of the Plan must be filed and served no later than Feb. 28, 2022, at 5:00 p.m. (prevailing Central Time). The voting deadline is Feb. 28, 2022, at 5:00 p.m. (prevailing Central Time). Counsel for the Debtors: Glenn Gates Taylor, Esq. John H. Geary, Jr., Esq. Christopher H. Meredith, Esq. COPELAND, COOK, TAYLOR & BUSH, P.A. P.O. Box 6020 Ridgeland, MS 39158 Telephone: (601) 856-7200 Facsimile: (601) 856-7626 E-mail: gtaylor@cctb.com jgeary@cctb.com cmeredith@cctb.com A copy of the Disclosure Statement dated Feb. 9, 2022, is available at https://bit.ly/3p2rasD from PacerMonitor.com. About Tenrgys LLC Tenrgys, LLC operates as an oil and gas exploration and production company. It is headquartered in Ridgeland, Miss. Tenrgys and its affiliates filed their voluntary petitions for Chapter 11 protection (Bankr. S.D. Miss. Lead Case No. 21-01515) on Sept. 17, 2021, listing as much as $500 million in both assets and liabilities. Richard H. Mills, Jr., manager, signed the petitions. Judge Jamie A. Wilson oversees the cases. Copeland, Cook, Taylor & Bush, P.A. and FTI Consulting, Inc. serve as the Debtors' legal counsel and financial advisor, respectively. TRIUMPH GROUP: Posts $7.2 Million Net Income in Third Quarter ------------------------------------------------------------- Triumph Group, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing net income of $7.24 million on $319.25 million of net sales for the three months ended Dec. 31, 2021, compared to a net loss of $68.12 million on $425.99 million of net sales for the three months ended Dec. 31, 2020. For the nine months ended Dec. 31, 2021, the Company reported a net loss of $32.18 million on $1.07 billion of net sales compared to a net loss of $377.39 million on $1.40 billion of net sales for the nine months ended Dec. 31, 2020. As of Dec. 31, 2021, the Company had $1.75 billion in total assets, $563.16 million in total current liabilities, $1.58 billion in long-tem debt, $322.87 million in accrued pension and other postretirement benefits, $7.43 million in deferred income taxes, $86.13 million in other noncurrent liabilities, and a total stockholders' deficit of $812.04 million. "Triumph's third quarter results are in line with our expectations and reflect year over year improvement," stated Daniel J. Crowley, Triumph's chairman, president and chief executive officer. "Our increased margins and cash flow were enabled by strengthening operational performance which helped to offset the short-term deferral of 787 sales. Triumph's broad portfolio gives us a competitive advantage, and the expected recovery in commercial narrow body production rates will drive top line growth." Mr. Crowley continued, "We secured over $2.0 billion in new contracts this fiscal year and completed two important portfolio milestones: the exit of our last 747-8 production facility and the announced sale of our Stuart, Florida operation. Winning new IP-based business and exiting build-to-print structures are at the core of our path to value and set the stage for enhanced value creation." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1021162/000095017022000923/tgi-20211231.htm About Triumph Headquartered in Berwyn, Pennsylvania, Triumph Group, Inc. -- http://www.triumphgroup.com-- designs, engineers, manufactures, repairs and overhauls a broad portfolio of aerospace and defense systems, components and structures. The company serves the global aviation industry, including original equipment manufacturers and the full spectrum of military and commercial aircraft operators. Triumph Group reported a net loss of $450.91 million for the year ended March 31, 2021, a net loss of $29.43 million for the year ended March 31, 2020, and a net loss of $327.14 million for the year ended March 31, 2019. * * * As reported by the TCR on Aug. 18, 2021, Moody's Investors Service upgraded its ratings for Triumph Group, Inc., including the company's corporate family rating to Caa2 from Caa3 and Probability of Default Rating to Caa2-PD from Caa3-PD. The upgrades reflect Moody's expectations for stronger operating performance that will result in a gradual improvement in credit metrics through 2023. In June 2020, S&P Global Ratings lowered its issuer credit rating on Triumph Group Inc. to 'CCC+' from 'B-'. TWITTER INC: Share Repurchase Program No Impact on Moody's Ba2 CFR ------------------------------------------------------------------ Moody's Investors Service said that Twitter, Inc.'s (Twitter, Ba2 stable) $4 billion share repurchase program and $2 billion accelerated share repurchase agreement (ASR) are credit negative because the repurchases will reduce the company's financial capacity and available cash in the short term during a period of continued highly elevated investment in the business. As part of the $4 billion share repurchase program, $2 billion will be completed with an ASR which Moody's believes will be concluded over the next few fiscal quarters, and Moody's expects the remaining $2 billion to be repurchased over time. The program replaces Twitter's existing repurchase agreement, which had about $819 million remaining. The program has no immediate effect on Twitter's Ba2 corporate family rating, Ba2 senior unsecured rating or the stable outlook as Moody's expects that Twitter will sustain a net cash liquidity position (cash and marketable securities will exceed reported debt), and leverage will decline to under 3.5x over the next few years as the investment cycle eases and revenue and profit growth successfully provide returns on the company's significant investment. Twitter, Inc., with its headquarters in San Francisco, California, is a social networking internet based mobile and desktop platform that helps users discover and converse about what's happening in the world right now. As of December 31, 2021, Twitter had 217 million monetizable daily active users and is available in more than 40 languages around the world. The company generated approximately $5.1 billion of revenue in 2021, roughly 89% of which was generated through the company's Advertising Services segment. XEROX CORP: Egan-Jones Keeps BB Senior Unsecured Ratings -------------------------------------------------------- Egan-Jones Ratings Company, on January 27, 2022, maintained its 'BB' foreign currency and local currency senior unsecured ratings on debt issued by Xerox Corporation. Headquartered in Norwalk, Connecticut, Xerox Corporation develops document management technology solutions. [*] Claims Trading Report -- January 2022 ----------------------------------------- There were at least 190 claims that changed hands in Chapter 11 corporate cases in January 2022: No. of Claims Debtor Transferred ------ ----------- LATAM Airlines Group S.A. 40 Grupo Aeromexico, S.A.B. de C.V. 30 Brown Industries, Inc. 23 Lehman Brothers Holdings Inc. 15 Mallinckrodt plc 8 Philippine Airlines, Inc. 8 Destination Maternity Corporation 6 COPsync, Inc. 5 Dupont Street Developers LLC 5 Cortlandt Liquidating LLC, et al. 4 China Fishery Group Limited (Cayman) 3 Citco Enterprises, Inc. 3 Clay Riverview LLC 3 Forever 21, Inc. 3 96 Wythe Acquisition LLC 2 Boy Scouts of America 2 J.S. Cates Construction, Inc. 2 Abengoa Bioenergy of Illinois LLC 1 Avianca Holdings S.A. 1 Boneyard Archery, Inc 1 Cyber Litigation Inc. 1 EHT US1, Inc. 1 Henry Ford Village, Inc 1 Hilltop at DIA, LLC 1 HMOB of Carlstadt Owner, LLC 1 HMOB of Fair Lawn 15-01 Broadway Owner, LLC 1 HMOB of Fair Lawn Owner, LLC 1 HMOB of Glen Rock Owner, LLC 1 HMOB of Hackensack Office Owner, LL 1 HMOB of Hackensack Warehouse Owner, LLC 1 HMOB of Jersey City Owner, LLC 1 HMOB of Miramar Owner, LLC 1 HMOB of Mt. Kisco Owner, LLC 1 HMOB of New Brunswick Owner, LLC 1 HMOB of Oradell Owner, LLC 1 HMOB of Roseland Owner, LLC 1 HMOB of Wayne Owner, LLC 1 JM Brown Properties, LLC 1 Lev Investments, LLC 1 L'Occitane, Inc. 1 People Speak, LLC 1 RTW Retailwinds, Inc. 1 SCHULTE PROPERTIES LLC 1 Seaside Investment Inc. 1 Specialty Retail Shops Holding Corp. 1 True Enterprise, LLC 1 Youngblood Skin Care Products, LLC 1 Notable claim purchasers for the month of January are: A. In LatAm Airlines' case: THRACIA, LLC Phone: 212-649-9553 Emily Harrington 1350 Avenue of the Americas 21st floor New York, NY 1001 TR Capital Management LLC TRC MASTER FUND LLC Attn: Terrel Ross PO Box 633 Woodmere, NY 11598 Tel: (516) 255-1801 B. Grupo Aeromexico's case: CITIGROUP FINANCIAL PRODUCTS INC. Phone: (212) 723-6064 (302) 323-5957 Kenneth Keeley Citigroup Global Markets 388 Greenwich Street, Trading Tower 6th Floor New York, NY 10013 - and - Joelle Gavlick Distressed Closing/Private Equity/Corporate Actions One Penns Way OPS 2/2nd FL – Global Loans New Castle, DE 19720 CORVID PEAK RESTRUCTURING PARTNERS MASTER FUND LP Corvid Peak Capital Management lLC 299 Park Avenue, 13th Floor New York, NY 10171 Attn: Greg Fabiano Tel: 212-887-4402 E-mail: gfabiano@corvidpeak.com JPMORGAN CHASE BANK, N.A. 500 Stanton Christian Road, Floor 1 Newark, DE 19713 Telephone: 302-634-1486 Email: CLS_Notices@jpmchase.com C. In Brown Industries' case: FAIR HARBOR CAPITAL, LLC Ansonia Finance Station PO Box 237037 New York, NY 10023 Tel: (212) 967-4035 D. In Philippine Airlines' case: CRG Financial LLC 100 Union Ave Cresskill, NJ 07626 Phone: (201) 266698 ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. 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 the e-mail address to which your TCR is delivered to login. ********* 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. Copyright 2022. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $975 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. *** End of Transmission ***