/raid1/www/Hosts/bankrupt/TCR_Public/221007.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Friday, October 7, 2022, Vol. 26, No. 279
Headlines
10975 SOUTH VERMONT: SARE Hits Chapter 11 Bankruptcy
A.B.C. OF NORTH PALM: Seeks to Hire Lorium Law as Special Counsel
ACADEMY SPORTS: S&P Upgrades ICR to 'BB', Outlook Stable
ACCESS METALS: Selling 40% Equity Interest to the Kadeshes for $1M
ACTIVA RESOURCES: U.S. Trustee Unable to Appoint Committee
ADVANTAGE MANAGEMENT: Wins Cash Collateral Access Thru Oct 11
AEARO TECHNOLOGIES: Tort Committee Taps KTBS as Co-Counsel
AEARO TECHNOLOGIES: Tort Committee Taps Otterbourg as Legal Counsel
AEARO TECHNOLOGIES: Tort Panel Taps Rubin & Levin as Local Counsel
AEARO: Tort Committee Taps Caplin & Drysdale as Special Counsel
ALLEVA DAIRY: Seeks Chapter 11 Bankruptcy Protection
ALTERA INFRASTRUCTURE: Committee Seeks OK to Hire Financial Advisor
ANDOVER SENIOR: Proposes Online Auction of Andover Property
ASTRA ACQUISITION: S&P Affirms 'B-' ICR, Outlook Stable
B T S INTERNATIONAL: Gets OK to Hire CBRE Inc. as Real Estate Agent
BARTECH GROUP: Wins Cash Collateral Access Thru Dec 15
BASIC WATER COMPANY: Taps Force Ten Partners as Financial Advisor
BASIC WATER: Seeks to Hire Schwartz Law as Bankruptcy Counsel
BE MORE DEVELOPERS: Kelemans Buying Baltimore Property for $129.9K
BLUE CHIP: Cameron LR Offers $4.1 Million for Birmingham Properties
BORREGO COMMUNITY: PCO Taps Dr. Tim Stacy as Consultant
BORREGO COMMUNITY: PCO Taps Levene as Bankruptcy Counsel
BRAND44: Wins Cash Collateral Access on Final Basis
BRENT JARRETT: Seeks to Hire Furr Cohen as Legal Counsel
BUMBLE INC: Fitch Affirms LongTerm IDR at 'BB-', Outlook Stable
CDP HOLDINGS: Wins Cash Collateral Access Thru Oct 14
CELSIUS NETWORK: Can't Hide Creditors Names From Filings
CELSIUS NETWORK: Court Okays Examiner Named By US Trustee
CELSIUS NETWORK: UST Takes No Position on Equity Panel Formation
CHURCH OF GOD: Case Summary & Four Unsecured Creditors
CINEWORLD GROUP: Shuts Down Arbor Cinema in Austin, TX
CLAAR CELLARS: Ampleo Proposes Auction Sale of Real Properties
CLAAR CELLARS: Ampleo Proposes Musser Auction Sale of Equipment
CLARUS THERAPEUTICS: Wins Cash Collateral Access on Final Basis
CLAYTON D. THOM: Selling Interest in Jeep to Victorville for $23K
CLEAN ENERGY: Hires Raymond P. Fitzpatrick as Special Counsel
CLEARFORD WATER: Intends to Complete Approved Restructuring
CM RESORT: Trustee Selling Gordon Land to Durkin for $3.5 Million
DOCUPLEX INC: Wins Cash Collateral Access Thru Dec 31
E-HOUSE (CHINA): Chapter 15 Case Summary
ENDO INT'L: 7 Attys. General Object to $94-Mil.Executive Bonuses
ENDO INT'L: Future Claimants' Rep Taps NERA as Consultant
ENDO INT'L: Opioid Claimants to Scrutinize $450M Proposal, Liens
ENOVATIONAL CORP: Taps Arthur Lander C.P.A. as Accountant
ERIN INDUSTRIES: Corvette Supplier Files Subchapter V Case
FIRST DEFENSE NASAL: Taps Van Horn Law Group as Bankruptcy Counsel
FIRST GUARANTY: Reaches Deal With Creditors on Chapter 11 Plan
FRASIER CONTRACTING: Taps Buddy D. Ford as Bankruptcy Counsel
FROZEN FOODS: Gets Approval to Hire Grassi & Co as Accountant
GANNETT CO: Fitch Alters Outlook on 'B' LongTerm IDR to Negative
GREAT PANTHER: Court Converts NOI Proceedings to CCAA Proceedings
GREENWAY PARK: Nautilus Claim for Fee Award Denied
HANSABEN INVESTMENTS: Wins Cash Collateral Access Thru Dec 31
HOME DEALS OF MAINE: Raychards Buying Buxton Property for $235K
HOUSE OF CHANGE: Hires Weiss Law Group, LLC as Legal Counsel
IKON WEAPONS: Gets OK to Hire Essex Richards as Legal Counsel
INN S.F. ENTERPRISE: Taps Law Offices of Stuppi & Stuppi as Counsel
INNOVASONIC INC: Seeks Chapter 7 Bankruptcy Protection
IVEDIX INC: Rajesh Kutty Buying Account Receivable for $130K
JUMBA LLC: Proposes to Sell 557 Acres of Land in Johnson County
KABBAGE INC: Files Voluntary Chapter 11 Bankruptcy Petition
KARTES LEASING: Gets OK to Hire Onyx as Accountant
KC PANORAMA: Slater Buying Weston Property for $8.8 Million Cash
LATAM AIRLINES: Banks Sweeten Bond Prices Needed for Bankruptcy Exi
MCCLAIN INVESTMENTS: Commences Subchapter V Case
MCCLELLAN TRUCKING: Taps Knox McLaughlin Gornall as Counsel
METRO SERVICE: Voluntary Chapter 11 Case Summary
MIFATE CAB: Seeks to Hire Thomas A. Farinella as Legal Counsel
MKS INSTRUMENTS: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable
MOLECULAR IMAGING: Wins Cash Collateral Access Thru Nov 1
NORTHSIDE VENTURES: Case Dismissed After One Day
NRP LEASE: 11th Circuit Reverses, Rules Against Live Oak
O'BRIEN FAMILY: Seeks to Amend Approval of $2.7-Mil. Property Sale
OMNICROBE NATURAL: Files Subchapter V Case Amid Ownership Issuee
PADAGIS HOLDING: Fitch Alters Outlook on 'BB-' IDR to Negative
PEAK PROPERTY: Selling Two Properties in Denver for $422.5K
PENNY CAMEL DUPLECHIEN: Trustee Selling Lafayette Asset for $250K
PG&E CORP: Fire Victim Trust Sells 35 Million Shares
PRICHARD WATERWORKS: S&P Places 'B' Rev. Bonds Rating on Watch Neg
PT GARUDA INDONESIA: Chapter 15 Case Summary
QHC FACILITIES: Blue Diamond Buying All Assets for $4.5 Million
QURATE RETAIL: Fitch Cuts LongTerm IDR to 'BB-', Outlook Stable
RDS CONSTRUCTION: Taps Michael Hardwick Law as Bankruptcy Counsel
RE-BUILD SEVILLE LLC: Files Bare-Bones Chapter 11 Petition
ROBERT MORRIS ENGLISH JR.: Selling Brownsville Property for $125K
ROBERT MORRIS ENGLISH JR.: Young Buying Brownsville Asset for $100K
ROCKING M MEDIA: Court Denies Bid to Disband Creditors' Committee
SANDY ROAD: Proposes Auction Sale of Assets Through United Country
SANDY ROAD: U.S. Trustee Unable to Appoint Committee
SHOPS AT BROAD: Hires Bill Roberts of CR3 Partners as CRO
SPL PARTNERS: Seeks to Hire Kirby Aisner as Substitute Attorney
STIMWAVE TECHNOLOGIES: Gets Court Okay for $124 Mil. Auction Offer
STORED SOLAR: U.S. Trustee Appoints Creditors' Committee
SUNGARD AVAILABILITY: Signs Asset Purchase Agreement With 11:11
T.J. MCDERMOTT: Voluntary Chapter 11 Case Summary
THOMAS VINCENT GIRARDI: Trustee Sells Pasadena Property for $7.5MM
TPC GROUP: Addresses $450 Million Rights Offerings Objections
TPC GROUP: Seeks to Hire Grant Thornton as Accountant
TRILOK FUSION: Taps Clover Barrett & Associates as Legal Counsel
ULTRA SEAL: Case Summary & 20 Largest Unsecured Creditors
ULTRA-TAB LABORATORIES: Case Summary & 20 Top Unsecured Creditors
USA COMPRESSION: S&P Alters Outlook to Stable, Affirms 'B+' ICR
VANGUARD ROOFING: Court OKs Cash Collateral Access
VOYAGER DIGITAL: UST Takes No Position on Equity Panel Formation
WB MAINTENANCE: Seeks to Hire Koutsoudakis & Iakovou as Counsel
WYTHE BERRY: Involuntary Chapter 11 Case Summary
[*] 73 Greenberg Traurig Attorneys Included on 2022 NY Metro List
[*] Andrew Owens Joins Stroock's FSLRE Group
[*] Four Attorneys Elected to McDonald Hopkins' Membership
[*] Hawaii Statewide Bankruptcies Rose 21.8% in August 2022
[*] Two Trial Lawyers Join Meadows Collier Law Firm
[^] BOOK REVIEW: THE ITT WARS
*********
10975 SOUTH VERMONT: SARE Hits Chapter 11 Bankruptcy
----------------------------------------------------
10975 South Vermont Ave LLC, a Single Asset Real Estate that owns
the property at 10975 S. Vermont Ave., in Los Angeles, CA, filed
for chapter 11 protection to stop foreclosure of the property.
10975 South Vermont Ave. said the property is worth $1.5 million.
The Company listed debt of $486,000 to less than 49 creditors. The
petition states that funds will be available to unsecured
creditors.
The Company is owned by construction and land developer Danny W.
Pryor.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
Oct. 28, 2022, at 10:00 AM at UST-LA3, TELEPHONIC MEETING.
CONFERENCE LINE: 1-866-811-2961, PARTICIPANT CODE:9609127.
About 10975 South Vermont Ave LLC
On September 28, 2022, 10975 South Vermont Ave LLC filed for
chapter 11 protection (Bankr. C.D. Cal. Case No. 22-15271). In the
petition filed by Danny W. Pryor, as managing member, the Debtor
reported assets between $1 million and $10 million and estimated
liabilities between $100,000 and $500,000.
A.B.C. OF NORTH PALM: Seeks to Hire Lorium Law as Special Counsel
-----------------------------------------------------------------
A.B.C. of North Palm Beach, Inc. seeks approval from the U.S.
Bankruptcy Court for the Southern District of Florida to hire
Lorium Law as its special real estate counsel.
The firm will perform legal services related to the negotiation,
auction, and other necessary functions in connection with the sale
and closing of the sale of the Debtor's real property.
Craig Pugatch, Esq., the firm's attorney who will be handling the
case, will charge an hourly fee of $425 and will seek reimbursement
for work-related costs.
In court papers, Mr. Pugatch disclosed that he is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
Mr. Pugatch can be reached at:
Craig A. Pugatch, Esq.
Lorium Law
101 NE Third Avenue, Suite 1800
Fort Lauderdale, FL 33301
Tel: (954) 462-8000
Fax: (954) 462-4300
Email: capugatch@loriumlaw.com
About A.B.C. of North Palm Beach
A.B.C. of North Palm Beach, Inc., owns the real property located at
763 and 775 Northlake Blvd., North Palm Beach, Fla.
To stop foreclosure, A.B.C. of North Palm Beach filed for Chapter
11 protection (Bankr. S.D. Fla. Case No. 22-12797) on April 10,
2022. In the petition filed by My Tran, president, A.B.C. listed up
to $10 million in assets and up to $50,000 in liabilities.
Judge Mindy A. Mora oversees the case.
Mark S. Roher, Esq., at the Law Office of Mark S. Roher, P.A. and
Lorium Law serve as the Debtor's bankruptcy counsel and special
counsel, respectively.
ACADEMY SPORTS: S&P Upgrades ICR to 'BB', Outlook Stable
--------------------------------------------------------
S&P Global Ratings raised its ratings on U.S.-based outdoor and
sports retailer Academy Sports & Outdoor Inc., including its
issuer-credit rating to 'BB' from 'BB-'.
The stable outlook reflects S&P's expectation for good performance
over the next 12 to 18 months and S&P adjusted leverage at or near
recent levels.
S&P said, "Academy's recent performance trends, including improved
EBITDA margins, indicate a better competitive position. Over the
last year, Academy's operating performance, especially margin
generation has been ahead of our forecast. Importantly, S&P Global
Ratings'-adjusted EBITDA margins remain elevated compared with
historic results and have meaningfully beat our forecast. For the
trailing months through July 2022, Academy's S&P Global
Ratings'-adjusted EBITDA margins were 18.2% compared with our prior
projection of 15%. In addition, these margins were around 19% or
more in the first half of this year. This is also better than our
expectations, a forecast that assumed margin drag due to
significant competition and promotions. While the economic
environment remains uncertain, Academy has benefited from its
market position as a value-oriented retailer, leading to elevated
customer traffic and demand for sporting goods and outdoor
equipment, along with demand from trade-down consumers. At the same
time, adjusted EBITDA margins have improved versus the year ago
period because of relatively lean inventory, cost-containment
efforts, better promotional cadences, and operating initiatives
over the last few years. While we believe economic and competitive
risks will persist, we believe Academy's S&P Global
Ratings'-adjusted EBITDA margins will remain around 18%.
"That said, company sales were generally in line to slightly ahead
of our projections, as revenue declined at a mid-single-digit rate
for the first half of the year. We think this represents a modest
normalization in the company's sales performance as it laps more
than 20% growth in the prior period. We expect revenue declines to
moderate in the second half of the year before expanding in the
fiscal year in 2023. We believe changes in consumer habits,
including more people working from home and continuing outdoor
hobbies, will provide structural tailwinds to sporting goods
demand. We also expect an acceleration in new store opening to
boost sales over the next 12 to 18 months.
"We believe management's operating initiatives will help Academy
maintain good, long-term performance. Academy's management team has
strategically employed operating initiatives that have helped the
company maintain growth and sustain S&P Global Ratings'-adjusted
EBITDA margins. This includes improved in-store customer service by
increasing customer facing hours, modifying the store layout,
enhancing the assortment, and increasing store localization
efforts. Moreover, assortment and store layout updates, along with
good vendor relations, have helped Academy maintain good inventory
levels, up just 17% as of the second quarter ending July 2022
versus the 2021 period.
"In addition, we believe implemented and planned omni-channel
initiatives will help maintain and increase customer engagement.
Technology management has increased and will likely continue to
improve check-out speeds, improve in-store and online search
capabilities, and expand payment options. This includes continual
improvements of the company's website and enhancements to the
mobile app.
"We think these initiatives and others like data-driven markdown
and merchandising optimization have allowed management to refocus
on expansion strategies. We believe Academy will prudently and
profitably expand its store base over the next few years, where we
project around 10 to 15 new stores annually. We think operating
initiatives enacted over the last few years will position Academy
for good long-term growth and have accordingly revised our business
risk assessment to fair from weak.
"Academy remains a relatively smaller, but growing, competitor in
the sporting goods retail industry. We continue to view Academy as
a regional sports and outdoor retailer with physical stores,
primarily in Texas and adjacent southern states. The company
positions itself as an everyday-low-price value player and competes
with significantly larger and better-capitalized competitors,
companies that include a focus on the mass market or provide
specialized sports products. This includes specialized retailers
likes Dick's Sporting Goods Inc., (BBB/Stable/--) and Great
Outdoors Group LLC (BB-/Positive/--), mass merchants like Walmart
Inc. (AA/Stable/A-1+), and e-commerce competitors like Amazon
(AA/Stable/A-1+). In addition, online penetration remains lower
than some peers, comprising around 10% of total sales. We think
this creates potentially long-term risks for Academy, as the
industry remains prone to product promotions and competitive
pricing along with evolving customer habits. We also believe
sporting goods and related products remain a highly fragmented
sector with increasing competition, including both physical
retailers and pure-play e-commerce competitors.
"Academy and the sports retailing industry may experience more
volatile performance over the near term because of macroeconomic
uncertainty. We project inflation will remain elevated well into
2023 and for an overall economic slowdown to persist through 2023.
We acknowledge a degree of risk related to an unforeseen decline in
Academy's performance that could arise from increased competition
and heightened promotions. Moreover, increased competitor price
promotions could also have a negative effect on near-term
projections beyond what we already consider in our base-case
forecast.
"The stable ratings outlook reflects our expectation for good
performance over the next 12 months, including low- to
mid-single-digit percent sales growth, S&P Global Ratings'-adjusted
margins around 18%, and S&P Global Ratings'-adjusted leverage at or
near recent levels."
S&P could lower its rating on Academy if it expects leverage of 3x
or more on a sustained basis. Such a scenario would likely
include:
-- A worsening macroeconomic environment or operational misstep
that causes weaker performance compared with S&P's base case; and
-- A significant decline in sales and adjusted EBITDA margins that
results in EBITDA declining more than 50% compared withour
base-case projections.
S&P could raise its ratings if:
-- The company continues to successfully execute its operational
strategies, resulting in better operating performance;
-- Academy further expands its operational scale and significantly
diversifies its operations beyond Texas and the southern U.S.; and
-- The company maintains a conservative financial policy as
indicated by adjusted leverage near recent levels and also publicly
states a financial target.
ESG credit indicators: E-2, S-3, G-2
S&P said, "Social factors are a moderately negative consideration
in our credit rating analysis of Academy. The company has
substantial exposure to firearms and ammunition sales, which add
volatility to the company's sales and profitability because of the
significant unpredictability and meaningful fluctuations in demand,
especially before national elections. In addition, regulators and
lawmakers have looked to impose increased restrictions on firearm
sales. While no new legislation has been enacted potential changes
in the regulatory climate could increase future performance
risks."
ACCESS METALS: Selling 40% Equity Interest to the Kadeshes for $1M
------------------------------------------------------------------
Access Metals Trading, Inc., asks the U.S. Bankruptcy Court for the
Northern District of California to authorize the sale of 40% equity
interest in the Debtor to Robert Kadesh and Stacy Kadesh for $1
million, free and clear of all liens, claims, interests and
encumbrances.
The Debtor is in need of cash reserves in order to continue
operations. It has been approached by an investor interested in
purchasing a 40% equity interest in the Debtor to the Buyers for $1
million, in accordance with the terms of the Stock Purchase
Agreement.
By the Motion, the Debtor seeks an order authorizing the sale of
the 40% of the shares of the Debtor; authorizing the Debtor to
execute any and all documents necessary to effectuate the sale;
authorizing the net sales proceeds to be placed into the Debtor In
Possession account, and waiving the 14 day state of Federal Rules
of Bankruptcy Procedure 6004(h).
Because the Debtor needs cash in order to continue operations, it
believes that the sale is in the best interests of creditors and
the bankruptcy estate. The Debtor does not believe there is any
other purchaser interested in a stock purchase agreement. It urges
the Court to approve the sale.
The Debtor also moves the Court for an order waiving the stay
provided in Bankruptcy Rule 6004(h).
About Access Metals Trading, Inc.
Access Metals Trading, Inc., located at 2333 San Ramon Valley
Blvd., Ste. 160, San Ramon, CA 94583, is engaged in the sales of
scrap metals.
The Debtor sought Chapter 11 protection (Bankr. N.D. Cal. Case No.
22-40887) on Sepy. 12, 2022. Judge William J. Lafferty oversees
the case.
As of July 31, 2022, the Debtor's total assets is $1,465,176 and
$2,364,759 in total debt.
The Debtor tapped Gina R. Klump, Esq., at Law Offices of Gina R.
Klump as counsel.
The petition was signed by Scott Ehrlich as president.
ACTIVA RESOURCES: U.S. Trustee Unable to Appoint Committee
----------------------------------------------------------
The U.S. Trustee for Region 6 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 cases of Activa Resources, LLC and Tiva Resources, LLC.
About Activa Resources and Tiva Resources
Activa Resources, LLC and Tiva Resources, LLC operate in the oil
and gas extraction industry. Both companies are based in San
Antonio, Texas.
On Feb. 3, 2022, Activa Resources and Tiva Resources sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D.
Texas Lead Case No. 22-50117). In the petitions signed by John
Hayes, president, Activa Resources disclosed as much as $50 million
in both assets and liabilities while Tiva Resources disclosed up to
$10 million in assets and up to $50 million in liabilities.
Judge Michael M. Parker oversees the cases.
The Debtors tapped Bernard R. Given II, Esq., at Loeb and Loeb, LLP
as legal counsel, and Haynie & Company as accountant and auditor.
Donlin, Recano & Company, Inc. is the claims, noticing and
solicitation agent.
On Aug. 19, 2022, the Debtors filed their proposed joint Chapter 11
plan of reorganization and disclosure statement.
ADVANTAGE MANAGEMENT: Wins Cash Collateral Access Thru Oct 11
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Wisconsin
authorized Advantage Management Beaver Dam, LLC and its
debtor-affiliates to continue using cash collateral on a final
basis in accordance with their agreement with KeyBank National
Association through October 11, 2022.
KeyBank asserts an interest in the Debtor's cash collateral.
The Court said the terms of the Stipulated Order are extended and
will remain in effect until October 11. Nothing in the Order
prohibits the Lender from seeking termination of the automatic stay
or any other relief to which Lender may believe it is entitled.
As previously reported by the Troubled Company Reporter, on October
1, 2016, KeyBank extended to Beaver Dam Holdings a $4,762,900 loan.
The Beaver Dam Loan is evidenced by a Healthcare Facility Note
dated as of October 1, 2016. The indebtedness evidenced by the
Beaver Dam Note is secured by the Healthcare Mortgage, Assignment
of Leases, Rents and Revenue and Security Agreement (Wisconsin)
dated as of October 1, 2016 and recorded on October 26, 2016 as
Instrument No. 1242896 in the Office of the Register of Deeds of
Dodge County, Wisconsin. The amount due under the Beaver Dam Loan,
as of April 4, 2022, was $4,367,274.
On October 1, 2016, KeyBank extended to Waupun Holdings a
$8,057,000 loan. The Waupun Loan is evidenced by a Healthcare
Facility Note (Multistate) dated as of October 1, 2016. The amount
due under the Waupun Loan, as of April 4, 2022, was $7,387,752.
As adequate protection, the Lender was granted replacement liens
pursuant to Code sections 361(2), 363(e), and 552(b) on all assets
of the Debtors now or hereafter existing. The liens have the same
seniority and priority as Lender's existing liens on the Properties
evidenced by the Loan Documents.
A copy of the order is available at https://bit.ly/3ecn3b8 from
PacerMonitor.com.
About Advantage Management Beaver Dam
Advantage Management Beaver Dam, LLC sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. E.D. Wis. Case No.
22-21438) on April 4, 2022. At the time of the filing, the Debtor
disclosed up to $100,000 in assets and up to $10 million in
liabilities.
Judge Beth E. Hanan oversees the case.
Jerome R. Kerkman, Esq., at Kerkman & Dunn serves as the Debtor's
legal counsel.
AEARO TECHNOLOGIES: Tort Committee Taps KTBS as Co-Counsel
----------------------------------------------------------
The official committee of tort claimants of Aearo Technologies, LLC
seeks approval from the U.S. Bankruptcy Court for the Southern
District of Indiana to employ KTBS Law, LLP as co-counsel with
Otterbourg P.C.
The committee represents holders of tort claims related to the use
of combat arms earplugs.
The hourly rates of KTBS professionals are as follows:
Partners $995 - $1,860
Of Counsel $995
Associate $775
Paralegal $540
Case Clerk $275
Robert Pfister, Esq., a member of KTBS, disclosed in a court filing
that his firm is a "disinterested person" as that term is defined
in section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Robert J. Pfister, Esq.
KTBS Law, LLP
1801 Century Park East, 26th Floor
Los Angeles, CA 90067-2328
Tel: 310-407-4065
Fax: 310-407-9090
Email: rpfister@ktbslaw.com
About Aearo Technologies
Aearo Technologies, LLC — https://earglobal.com/en — is a 3M
company that designs, manufactures, and sells personal protection
equipment. The Indianapolis-based company serves customers
worldwide.
To address claims related to the Combat Arms Earplugs Version 2,
Aearo Technologies and its affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ind. Lead Case
No. 22-02890) on July 26, 2022. In the petition filed by John R.
Castellano, as authorized signatory, Aearo Technologies listed $1
billion to $10 billion in both assets and liabilities.
The Debtors tapped Kirkland & Ellis and Ice Miller, LLP as
bankruptcy counsels; McDonald Hopkins, LLC as special counsel;
Bates White, LLC as claims valuation consultant; AP Services, LLC
as restructuring advisor; and Kroll, LLC as claims agent and
noticing agent. John R. Castellano, managing director at
AlixPartners LLP, an affiliate of AP Services, serves as the
Debtors’ chief restructuring officer.
The U.S. Trustee for Region 10 appointed two separate official
committees to represent tort claimants in the Debtors’ cases. The
tort claimants assert claims related to the use of faulty combat
arms earplugs and respirators manufactured by the companies.
AEARO TECHNOLOGIES: Tort Committee Taps Otterbourg as Legal Counsel
-------------------------------------------------------------------
The official committee of tort claimants of Aearo Technologies, LLC
seeks approval from the U.S. Bankruptcy Court for the Southern
District of Indiana to employ Otterbourg P.C. as its legal
counsel.
The committee, which represents holders of tort claims related to
the use of combat arms earplugs, requires legal counsel to:
a. assist, advise, and represent the committee in its
meetings, consultations and negotiations with Aearo Technologies
and its affiliates, and other parties in interest regarding the
administration of the cases;
b. assist, advise, and represent the committee in
understanding its powers and its duties under the Bankruptcy Code,
the Bankruptcy Rules and Local Rules and in performing other
services;
c. assist with administration, including the preparation of
governance documents, confidentiality agreements and the planning
of meetings;
d. assist and advise the committee in its review and analysis
of, and negotiations with the Debtors and non-debtor affiliates
related to intercompany transactions and claims;
e. review and analyze all legal papers filed with the court by
the Debtors or third parties, and advise the committee as to their
propriety and, after consultation with the committee, take any
appropriate action;
f. prepare legal papers;
g. represent the committee at hearings held before the court
and communicate with the committee regarding the issues raised, and
the decisions of the court;
h. represent the committee in connection with any litigation,
disputes or other matters that may arise;
i. assist, advise, and represent the committee in connection
with any mediation of litigation, disputes or other matters in
connection with these cases or any related proceedings;
j. assist, advise, and represent the committee in connection
with claims review and analysis and any requests to estimate claims
or implement a claims reconciliation process;
k. participate in the formulation, and drafting of a plan of
reorganization or liquidation, and review and analysis of any plan
of reorganization or liquidation proposed by the Debtors or any
other party in interest;
l. assist, advise, and represent the committee on issues
concerning the appointment of a trustee or examiner and dismissal
or conversion of the cases;
m. assist with the committee's review of the acts, conduct,
assets, liabilities and financial condition of the Debtors and
their affiliates, including certain transactions preceding the
bankruptcy filings;
n. assist, advise, and represent the committee in any manner
relevant to reviewing and determining the Debtors' rights and
obligations under any executory contracts or financial
accommodation agreements;
o. assist, advise, and represent the committee with respect to
its communications with the general creditor body regarding
significant matters in the cases, and communications with other
committees appointed in the cases;
p. respond to inquiries from individual creditors as to the
status of, and developments in, this Case; and
q. provide such other services to the committee as may be
necessary in this Case or any related proceedings.
The current hourly rates of Otterbourg professionals are as
follows:
Members $795 - $1,470
Of Counsel $695 - $1,150
Associates $295 - $860
Paralegals/Clerks $345
Melanie L. Cyganowski, Esq., a member of Otterbourg, assured the
court that the firm is a "disinterested person" as that term is
defined in section 101(14) of the Bankruptcy Code and as used in
section 328 of the Bankruptcy Code.
The firm can be reached through:
Melanie L. Cyganowski, Esq.
Otterbourg P.C.
230 Park Avenue
New York, NY 10169-0075
Tel: 212-661-9100
Fax: 212-682-6104
Email: mcyganowski@otterbourg.com
About Aearo Technologies
Aearo Technologies, LLC — https://earglobal.com/en — is a 3M
company that designs, manufactures, and sells personal protection
equipment. The Indianapolis-based company serves customers
worldwide.
To address claims related to the Combat Arms Earplugs Version 2,
Aearo Technologies and its affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ind. Lead Case
No. 22-02890) on July 26, 2022. In the petition filed by John R.
Castellano, as authorized signatory, Aearo Technologies listed $1
billion to $10 billion in both assets and liabilities.
The Debtors tapped Kirkland & Ellis and Ice Miller, LLP as
bankruptcy counsels; McDonald Hopkins, LLC as special counsel;
Bates White, LLC as claims valuation consultant; AP Services, LLC
as restructuring advisor; and Kroll, LLC as claims agent and
noticing agent. John R. Castellano, managing director at
AlixPartners LLP, an affiliate of AP Services, serves as the
Debtors’ chief restructuring officer.
The U.S. Trustee for Region 10 appointed two separate official
committees to represent tort claimants in the Debtors’ cases. The
tort claimants assert claims related to the use of faulty combat
arms earplugs and respirators manufactured by the companies.
AEARO TECHNOLOGIES: Tort Panel Taps Rubin & Levin as Local Counsel
------------------------------------------------------------------
The official committee of tort claimants of Aearo Technologies, LLC
seeks approval from the U.S. Bankruptcy Court for the Southern
District of Indiana to employ Rubin & Levin, P.C. as its Indiana
counsel.
The committee represents holders of tort claims related to the use
of combat arms earplugs.
The firm will render these services:
a. assist, advise, and represent the committee in its
meetings, consultations and negotiations with the Debtors and other
parties in interest regarding the administration of this Case;
b. assist, advise, and represent the committee in
understanding its powers and its duties under the Bankruptcy Code,
the Bankruptcy Rules and Local Rules and in performing other
services as are in the interests of those represented by the
committee;
c. assist with the administration of the committee, including
formation of governance documents, confidentiality agreements and
the planning of meetings;
d. assist and advise the committee in its review and analysis
of, and negotiations with the Debtors and non-Debtor affiliates
related to intercompany transactions and claims;
e. review and analyze all applications, motions, complaints,
orders, and other pleadings filed with the Court by the Debtors or
third parties, and advise the committee as to their propriety and,
after consultation with the committee, take any appropriate
action;
f. prepare necessary applications, motions, answers, orders,
reports, and other legal papers on behalf of the committee, and
pursue or participate in contested matters and adversary
proceedings as may be necessary or appropriate in furtherance of
the committee's duties, interest, and objectives;
g. represent the committee at hearings held before the Court
and communicate with the committee regarding the issues raised, and
the decisions of the Court;
h. represent the committee in connection with any litigation,
disputes or other matters that may arise in connection with this
Case or any related proceedings, including any appeals taken from
any orders of the Court;
i. assist, advise, and represent the committee in connection with
any mediation of litigation, disputes or other matters in
connection with this Case or any related proceedings, including the
multidistrict litigation pending in the United States District
Court for the Northern District of Florida, In re 3M Combat Arms
Earplug Products Liability Litigation, MDL No. 2885 (Master Docket
No. 3:19md2885) (MDL);
j. assist, advise, and represent the committee in connection
with claims review and analysis and any requests to estimate claims
or implement a claims reconciliation process;
k. assist, advise, and represent the committee in their
participation in the formulation, and drafting of a plan of
reorganization or liquidation, and review and analysis of any plan
of reorganization or liquidation proposed by the Debtors or any
other party in interest;
l. assist, advise, and represent the committee on issues
concerning the appointment of a trustee or examiner under section
1104 of the Bankruptcy Code and dismissal/conversion of the Case
under section 1112 of the Bankruptcy Code;
m. assist with the committee's review of the acts, conduct,
assets, liabilities and financial condition of the Debtors and
their affiliates, including certain transactions preceding the
bankruptcy filings;
n. assist, advise, and represent the committee in any manner
relevant to reviewing and determining the Debtors' rights and
obligations under any executory contracts or financial
accommodation agreements;
o. assist, advise, and represent the committee with respect to
its communications with the general creditor body regarding
significant matters in this Case and communications with other
committees appointed in this Case, any ad hoc committees and the
leadership of the MDL proceeding;
p. respond to inquiries from individual creditors as to the
status of, and developments in, this Case; and
q. provide such other services to the committee as may be
necessary in this Case or any related proceedings.
The current hourly rates of Rubin & Levin professionals are as
follows:
Partners $385 - $495
Of Counsel $385 - $440
Associates $275 - $325
Paralegals/Clerks $195
Meredith R. Theisen, Esq., a partner of Rubin & Levin, assured the
court that the firm is a "disinterested person" as that term is
defined in section 101(14) of the Bankruptcy Code and as used in
section 328 of the Bankruptcy Code.
The firm can be reached through:
Meredith R. Theisen, Esq.
Rubin & Levin P.C.
135 N. Pennsylvania Street, Suite 1400
Indianapolis, IN 46204
Phone: 317-634-0300
Fax: 317-263-9411
Email: mtheisen@rubin-levin.net
About Aearo Technologies
Aearo Technologies, LLC — https://earglobal.com/en — is a 3M
company that designs, manufactures, and sells personal protection
equipment. The Indianapolis-based company serves customers
worldwide.
To address claims related to the Combat Arms Earplugs Version 2,
Aearo Technologies and its affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ind. Lead Case
No. 22-02890) on July 26, 2022. In the petition filed by John R.
Castellano, as authorized signatory, Aearo Technologies listed $1
billion to $10 billion in both assets and liabilities.
The Debtors tapped Kirkland & Ellis and Ice Miller, LLP as
bankruptcy counsels; McDonald Hopkins, LLC as special counsel;
Bates White, LLC as claims valuation consultant; AP Services, LLC
as restructuring advisor; and Kroll, LLC as claims agent and
noticing agent. John R. Castellano, managing director at
AlixPartners LLP, an affiliate of AP Services, serves as the
Debtors’ chief restructuring officer.
The U.S. Trustee for Region 10 appointed two separate official
committees to represent tort claimants in the Debtors’ cases. The
tort claimants assert claims related to the use of faulty combat
arms earplugs and respirators manufactured by the companies.
AEARO: Tort Committee Taps Caplin & Drysdale as Special Counsel
---------------------------------------------------------------
The official committee of tort claimants of Aearo Technologies, LLC
seeks approval from the U.S. Bankruptcy Court for the Southern
District of Indiana to employ Caplin & Drysdale, Chartered as its
special mass tort and negotiation counsel.
The committee, which represents holders of tort claims related to
the use of combat arms earplugs, requires a special counsel to:
a. assist, advise, and represent the committee in its
meetings, consultations, communications, and negotiations with the
Debtors, and other parties in interest, including with respect to
any potential or actual settlements of the Debtors' tort-related
liabilities, any potential or actual post-reorganization trust
funding, and any other matters as requested by the committee in
coordination with Bankruptcy Co-Counsel;
b. assist, advise, and represent the committee in connection
with any proposed or actual claims or liability estimation or
analysis, including preparing motions, notices, briefs, responses,
answers, orders, reports and memoranda as requested by the
committee or its Bankruptcy Co-Counsel; preparing and conducting
discovery in coordination with co-counsel; and coordinating and
negotiating with other parties or
professionals;
c. assist, advise, and represent the committee in coordination
with co-counsel, in connection with estimation of tort claims or
analysis of the Debtors' or related parties' liabilities;
d. assist, advise, and represent the committee in monitoring,
analyzing, and coordinating with the multidistrict litigation
pending in the United States District Court for the Northern
District of Florida, In re 3M Combat Arms Earplug Products
Liability Litigation, MDL No. 2885 (Master Docket No. 3:19md2885)
(MDL) and related matters;
e. assist, advise, and represent the committee with respect to
mass tort bankruptcy issues in this Case; and
f. assist, advise, and represent the committee at hearings,
trials, adversary proceedings, appeal proceedings, mediations,
arbitrations, or alternative dispute resolutions.
Caplin & Drysdale's hourly rates are as follows:
Members and Senior Counsel $600 - $1,500
Of Counsel $560 - $1,235
Associates $365 - $565
Paralegals $325 - $405
As disclosed in court filings, Caplin & Drysdale is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Kevin C. Maclay, Esq.
Caplin & Drysdale, Chartered
One Thomas Circle NW, Suite 1100
Washington, DC 20005
Tel: (202) 862-5000
Fax: (202) 429-3301
Email: kmaclay@capdale.com
About Aearo Technologies
Aearo Technologies, LLC — https://earglobal.com/en — is a 3M
company that designs, manufactures, and sells personal protection
equipment. The Indianapolis-based company serves customers
worldwide.
To address claims related to the Combat Arms Earplugs Version 2,
Aearo Technologies and its affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ind. Lead Case
No. 22-02890) on July 26, 2022. In the petition filed by John R.
Castellano, as authorized signatory, Aearo Technologies listed $1
billion to $10 billion in both assets and liabilities.
The Debtors tapped Kirkland & Ellis and Ice Miller, LLP as
bankruptcy counsels; McDonald Hopkins, LLC as special counsel;
Bates White, LLC as claims valuation consultant; AP Services, LLC
as restructuring advisor; and Kroll, LLC as claims agent and
noticing agent. John R. Castellano, managing director at
AlixPartners LLP, an affiliate of AP Services, serves as the
Debtors’ chief restructuring officer.
The U.S. Trustee for Region 10 appointed two separate official
committees to represent tort claimants in the Debtors’ cases. The
tort claimants assert claims related to the use of faulty combat
arms earplugs and respirators manufactured by the companies.
ALLEVA DAIRY: Seeks Chapter 11 Bankruptcy Protection
----------------------------------------------------
Hannah Frishberg of New York Post reports that America's oldest
cheese shop, Alleva Dairy, filed for Chapter 11 bankruptcy.
Nothing gouda can stay: This nation's premiere fromage purveyor has
been rendered insolvent.
Alleva Dairy, the Little Italy deli that claims to be the country's
oldest, has filed for Chapter 11 bankruptcy.
Despite the enormous setback, the cheddar seller plans to keep on
slinging brie even as it teeters on the brink.
"After months of serious attempts to pay the landlord in full,
Alleva Dairy and the landlord at 188 Grand Street in New [York]
were unable to reach an agreement to pay off the back rent,”
reads a release sent out Thursday, September 29, 2022, by the dairy
vendor, which was first established in 1892. "In addition, the
landlord refused to honor the remainder of Alleva’s 10-year
lease. As a result, Alleva Dairy, Inc has filed for Chapter 11
Bankruptcy protection."
The back rent in question accrued during the COVID-19 pandemic,
during which time the Manhattan institution failed to pay a total
$509,106 of its $23,756 a month rent, The Post previously reported.
Additionally difficult for the mozzarella merchant during the
coronavirus was the fact that many of the neighborhood eateries,
which spent lots of cheddar on its cheeses, were closed for much of
the pandemic — a huge financial loss for the store.
Alleva's landlord, Jerome G. Stabile III Realty, filed a suit
against the ricotta dealer in Manhattan Supreme Court this April
2022, asking for "permission to evict you from the subject premise
if you do not pay the money judgment."
At a subsequent court hearing, owner Karen King and her lawyer
offered not only to immediately put up $250,000 but to also pay off
the lease's duration. But the proposal was rejected — the
landlord's lawyer refused, according to King's attorney.
"September 27, 22022 is one of the saddest days in the 130-year
history of this illustrious Little Italy landmark," King mourned in
a press release announcing both the bankruptcy and the shop's
decision to remain open. "We will continue to strive to keep Alleva
Dairy alive."
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
Oct. 27, 2022, at 2:00 PM at Office of UST (TELECONFERENCE ONLY) -
CHAPTER 11s.
About Alleva Dairy Inc.
Established in 1892, Alleva Dairy Inc. is the oldest cheese store
in America and continues to serve its community by making the
finest quality ricotta and mozzarella. Alleva's origins are
Benevento, Italy from where the original owner immigrated.
The Debtor operates its business form the leased premises located
at 188 Grand Street, New York, New York. Alleva's difficulties
arose during the COVID-19 National Emergency where many of New
York's businesses suffered. The Little Italy neighborhood was not
immune to the financial hardships foist upon the food industry.
Alleva Dairy Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 22-11284) on Sept. 27,
2022. In the petition filed by Karen Fouquet, as president, the
Debtor reported assets up to $50,000 and estimaed liabilities
between $1 million and $10 million.
The Debtor is represented by Fred Steven Kantrow of The Kantrow Law
Group, PLLC.
ALTERA INFRASTRUCTURE: Committee Seeks OK to Hire Financial Advisor
-------------------------------------------------------------------
The official committee of unsecured creditors of Altera
Infrastructure L.P. and affiliates seeks approval from the U.S.
Bankruptcy Court for the Southern District of Texas to employ
AlixPartners, LLP as its financial advisor.
The firm's services include:
a. reviewing and evaluating the Debtors' current financial
condition, business plans and cash and financial forecasts, and
periodically report to the committee regarding the same;
b. reviewing the Debtors' cash management, tax sharing and
intercompany accounting systems, practices and procedures;
c. reviewing and investigating (i) related party transactions,
including those between the Altera and non-debtor subsidiaries and
affiliates (including, but not limited to, shared services expenses
and tax allocations) and (ii) selected other pre-bankruptcy
transactions;
d. identifying and reviewing potential preference payments,
fraudulent conveyances and other causes of action that the various
Debtors' estates may hold against third parties;
e. analyzing the Debtors' assets and claims, and assessing
potential recoveries to the various creditor constituencies under
different scenarios, in coordination with the committee's
investment banker;
f. assisting in the development and review of the Debtors' plan
of reorganization and disclosure statement;
g. reviewing and evaluating court motions filed or to be filed
by the Debtors or any other parties-in-interest, as appropriate;
h. rendering expert testimony and litigation support services,
including e-discovery services, as requested from time to time by
the committee and its counsel, regarding any of the matters to
which the firm is providing services;
i. attending committee meetings and court hearings; and
j. assisting with such other matters as may be requested that
fall within the firm's expertise and that are mutually agreeable.
AlixPartners will be paid at these rates:
Managing Director $1,060 to $1,335 per hour
Director $840 to $990 per hour
Senior Vice President $700 to $795 per hour
Vice President $510 to $685 per hour
Consultant $190 to $505 per hour
Paraprofessional $320 to $340 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Kathryn B. McGlynn, a managing director at AlixPartners, LLP,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Kathryn McGlynn
AlixPartners, LLP
909 Third Avenue, Floor 30
New York, NY 10022
Tel: (212) 490-2500
Email: dmacgreevey@alixpartners.com
About Altera Infrastructure L.P.
Westhill, United Kingdom-based Altera Infrastructure L.P. (NYSE:
ALIN-A) is a global energy infrastructure services partnership
primarily focused on the ownership and operation of critical
infrastructure assets in the offshore oil regions of the North Sea,
Brazil and the East Coast of Canada. Altera has consolidated assets
of approximately $3.8 billion comprised of 44 vessels, including
floating production, storage and offloading (FPSO) units, shuttle
tankers, floating storage and offtake (FSO) units, long-distance
towing and offshore installation vessels and a unit for maintenance
and safety (UMS). The majority of Altera's fleet is employed on
medium-term, stable contracts.
After agreeing to a debt-for-equity plan with bank lenders and
owner Brookfield, Altera Infrastructure LP and 37 affiliate sought
Chapter 11 protection (Bankr. S.D. Texas Lead Case No. 22-90130) on
Aug. 12, 2022. Judge Marvin Isgur oversees the cases.
As of the petition date, the Debtors were liable for approximately
$1.6 billion in aggregate principal amount of funded debt.
Kirkland & Ellis LLP, Jackson Walker LLP, and Quinn Emanuel
Urquhart & Sullivan LLP serve as the Debtors' lead counsel, local
counsel, and special counsel, respectively. The Debtors also tapped
Evercore Group LLC as investment banker and PricewaterhouseCoopers
LLP as tax compliance, tax consulting, and accounting advisory
services provider. Stretto is the claims agent. David Rush, senior
managing director at FTI Consulting, Inc., serves as restructuring
advisor to the Debtors.
The DIP Lenders are represented by Paul, Weiss, Rifkind, Wharton &
Garrison LLP, as counsel to the DIP Lenders, Ducera Partners LLC,
as financial advisor, and Porter & Hedges LLP, as their Texas
counsel.
The U.S. Trustee for Region 7 appointed an official committee of
unsecured creditors on Aug. 22, 2022. The unsecured creditors
committee tapped Friedman Kaplan Seiler & Adelman, LLP and
Pachulski Stang Ziehl & Jones, LLP as legal counsels; and
AlixPartners, LLP as financial advisor.
A committee of coordinators was appointed under and as defined in
the appointment letter originally dated May 6, 2022, among Altera
Infrastructure LP and each member of the CoCom. The CoCom is
represented by Norton Rose Fulbright US, LLP and Norton Rose
Fulbright, LLP as legal counsel and PJT Partners (UK) Ltd. as
financial advisor.
ANDOVER SENIOR: Proposes Online Auction of Andover Property
-----------------------------------------------------------
Andover Senior Care, LLC, seeks approval from the U.S. Bankruptcy
Court for the District of Kansas of intended auction and sale of
the following described real estate:
Beginning at the Southeast Corner of Lot 3, The Meadows
Second Addition, an Addition to Andover, Butler County, Kansas;
thence N 0°00'00" E 550.00 feet to the Northwest Corner of Lot 1,
Block 1, The Meadows Third Addition to Andover, Butler County,
Kansas; thence N 89°56'48" W for 80.10 feet to a point; thence S
14°32'43" E for 157.56 feet to a point; thence S 0°01'31" W for
397.52 feet to a point on the South line of Lot 3, The Meadows
Second Addition; thence S 89°56'48" E for 40.70 feet to the point
of beginning, and having a street address of 224 E. Central,
Andover, Kansas 67020.
The Real Estate will be auctioned by McCurdy Real Estate & Auction,
LLC via online auction through McCurdy's online bidding platform.
The auction will begin Oct. 18, 2022, and end on Nov. 2, 2022.
The terms of the auction are set forth in the Listing Agreement
attached as Exhibit 1 to the Debtor's Renewed Application to Employ
McCurdy Real Estate & Auction, LLC, which Application was filed
Aug. 17, 2022, and approved on Sept. 9, 2022.
The Debtor has not claimed the Real Estate as exempt.
The Real Estate will be sold (i) in its present, "as is" condition,
with no express or implied warranties; (ii) subject to rights of
way and easements of record; and (iii) free and clear of all liens
and encumbrances of record.
From the proceeds of the sale, the Debtor intends to pay, in
descending order, the following:
a. All unpaid real estate taxes and assessments attributable
to the Real Estate for calendar years 2021 and prior and for
calendar year 2022 prorated to the date of closing;
b. Sale expenses of McCurdy;
c. The Debtor's one-half share of the closing expenses for
title insurance, recording fees and other related fees;
d. The remaining balance to the United States Department of
Housing and Urban Development ("HUD"). The Debtor does not
anticipate any funds will remain after payment to HUD.
The Debtor also hereby moves pursuant to Fed. R. Bankr. P. 6004(c)
for authority to sell the Real Estate free and clear of all liens
and encumbrances. If its Motion is granted, the sales will be free
and clear of all liens and encumbrances. Any liens and
encumbrances will attach to the proceeds of the corresponding sale.
The Debtor further moves the Court to cancel the 14-day stay set
forth at Fed. R. Bankr. P. 6004(h).
A hearing on the Motion is set for Nov. 10, 2022, at 10:30 a.m.
Objections to the intended auction and sale of the Real Estate,
allowance and payment of the expenses of sale and/or distribution
of the sale proceeds must be filed with the Court by Oct. 10, 2022.
If no objections are filed, the Court may enter an Order allowing
the sale, authorizing disbursement of the sale proceeds as set
forth and cancelling the 14-day stay set forth at Fed. R. Bankr. P.
6004(h) without further notice.
About Andover Senior Care
Andover Senior Care, LLC, owns and operates an assisted living
facility in Andover, Kansas.
Andover Senior Care filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Kansas Case No.
22-10139) on March 11, 2022, listing $5,351,220 in assets and
$16,334,476 in liabilities. Dennis L. Bush, managing member,
signed
the petition.
Judge Mitchell L. Herren oversees the case.
Mark Lazzo, Esq., at Mark J. Lazzo, P.A. and Colangelo & Taber,
P.A. serve as the Debtor's legal counsel and accountant,
respectively.
ASTRA ACQUISITION: S&P Affirms 'B-' ICR, Outlook Stable
-------------------------------------------------------
Astra Acquisition Corp. (Anthology) paid down about $525 million of
its existing $1.3 billion first-lien term loan, resulting in
improved financial metrics and its first-lien term loan becoming a
smaller portion of its total outstanding debt.
S&P Global Ratings raised its issue-level rating on Astra
Acquisition Corp.'s (Anthology) senior secured first-lien to 'B'
from 'B-'.
S&P affirmed its 'B-' issuer credit rating on Anthology. S&P also
affirmed our stable outlook.
S&P said, "The stable outlook reflects our expectation that
Anthology will generate low- to mid-single-digit percent revenue
growth and improve EBITDA margins through cost management. We
expect Anthology to have S&P Global Ratings-adjusted leverage of
under 10x in fiscal 2023, but still have adequate liquidity,
allowing it to manage the integration of Blackboard's assets."
Anthology repaid $525 million of its first-lien debt within two
quarters of issuing debt. It also follows two divestments of
non-core assets. On June 29, 2022, Anthology closed the divestiture
of Blackboard Collaborate for $210 million ($185 million cash). On
Sept. 15, 2022, it closed the divestiture of Blackboard Community
Engagement (BBCE) for $500 million in cash. The two divestments
contributed $118 million in revenues and about $50 million of
EBITDA in fiscal 2022, based on Anthology's reports. S&P views the
divestments to be credit positive as they improve liquidity,
modestly improve S&P Global Ratings-adjusted leverage, and simplify
the integration of Blackboard.
S&P said, "The stable outlook reflects our expectation that
Anthology will generate low- to mid-single-digit revenue growth and
improve EBITDA margins through cost management. We expect Anthology
to have S&P Global Ratings-adjusted leverage below 10x during
fiscal 2023, but have adequate liquidity, allowing it to manage the
integration of Blackboard's assets."
S&P could lower its rating if Anthology sustains negative free cash
flow, causing us to view its capital structure as unsustainable.
This could occur if the company experiences:
-- Material integration issues with Blackboard;
-- Revenue declines; or
-- Deterioration in profitability.
While an upgrade is unlikely over the next 12 months, given
expected S&P Global Ratings-adjusted leverage of about 10x, in the
long term, S&P's could raise the rating if Anthology generates
consistent organic revenue growth following the integration of
Blackboard's assets. This could happen with:
-- Reported free cash flow to debt of at least 4%;
-- S&P Global Ratings-adjusted leverage of about 7x; and
-- EBITDA interest coverage greater than 1.5x.
ESG credit indicators: E-2, S-2, G-3
S&P said, "Governance factors are a moderately negative
consideration in our credit rating analysis of Anthology, as is the
case for most rated entities owned by private-equity sponsors. We
believe its highly leveraged financial risk profile points to
corporate decision-making that prioritizes the interests of the
controlling owners. This also reflects the generally finite holding
periods and a focus on maximizing shareholder returns."
B T S INTERNATIONAL: Gets OK to Hire CBRE Inc. as Real Estate Agent
-------------------------------------------------------------------
B T S International, LLC received approval from the U.S. Bankruptcy
Court for the Western District of Washington to employ CBRE, Inc.
to market for sale its undeveloped real property located at 505
Harrison St., Seattle.
The firm will be paid a commission of $250,000.
Matthew Behrens, CBRE manager, 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 Behrens
CBRE, Inc.
1420 5th Avenue Suite 1700
Seattle, WA 98101
Tel: (206) 292-1600
Fax: (206) 292-6033
Email: Andrew.Behrens@cbre.com
About B T S International
B T S International, LLC owns two parcels of real property located
at (i) 505 Harrison St., Seattle, Wash., which is currently bare
ground; and (ii) 15601 Larch Way, Lynwood, Wash., which is a
residential real property occupied by Stephanie A. Wang, the
managing member of B T S, and other family members.
B T S International filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. W.D. Wash. Case No. 22-10867) on May
26, 2022, listing between $1 million and $10 million in both assets
and liabilities. Michael DeLeo serves as Subchapter V trustee.
Judge Marc Barreca oversees the case.
Alan J. Wenokur, Esq., at Wenokur Riordan, PLLC, is the Debtor's
legal counsel.
BARTECH GROUP: Wins Cash Collateral Access Thru Dec 15
------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division, authorized the BarTech Group of Illinois, Inc. to
use cash collateral on an interim basis in accordance with the
budget through December 15, 2022.
Specifically, the Debtor is authorized to use its cash on hand,
funds in its deposit accounts, revenue from the business, and any
further proceeds of its assets, including inventory and accounts
receivable, which may constitute "cash collateral" of certain
lienholders.
BarTech is authorized to use cash collateral to pay all expenses
incurred by BarTech in the operation of their ongoing business
post-petition (or if incurred pre-petition, those expenditures
authorized by a specific Order of the Court) pending the final
hearing on the Motion.
Creditors holding a security interest in BarTech's cash collateral
are granted post-petition replacement liens and security interests
in property of BarTech's estate in an amount equivalent to the
amount of cash collateral expended by BarTech to the extent the
Secured Creditors held validly perfected liens and security
interests as of the September 23, 2022 petition date.
The final hearing on the matter is set for December 7 at 10 a.m.
A copy of the order and the Debtor's budget is available at
https://bit.ly/3CCRnoD from PacerMonitor.com.
The budget provides for total cash out, on a weekly basis, as
follows:
$134,439 for the week ending October 7, 2022;
$536,793 for the week ending October 14, 2022;
$176,443 for the week ending October 21, 2022;
$194,443 for the week ending October 28, 2022; and
$457,493 for the week ending November 4, 2022.
About The BarTech Group of Illinois Inc.
The BarTech Group of Illinois Inc. -- https://www.bartechgroup.biz
-- is an MBE and DBE certified electrical construction contractor.
The BarTech Group of Illinois Inc. filed a petition for relief
under Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr.
N.D. Ill. Case No. 22-10945) on Sept. 23, 2022. In the petition
filed by Dwayne Barlow, as president, the Debtor reported assets
between $500,000 and $1 million and estimated liabilities between
$1 million and $10 million.
William B Avellone has been appointed as Subchapter V trustee.
Alan L Braunstein of Riemer Braunstein LLP is the Debtor's counsel.
Ringold Financial Management Services, Inc., is the financial
advisor.
BASIC WATER COMPANY: Taps Force Ten Partners as Financial Advisor
-----------------------------------------------------------------
Basic Water Company, a Nevada corporation, and Basic Water Company
SPE 1, LLC, a Nevada limited liability company, seek approval from
the U.S. Bankruptcy Court for the District of Nevada to hire Force
Ten Partners, LLC as their financial advisor.
The firm will render these services:
a. assist the officers and duly appointed representatives of
the Debtors in fulfilling the Debtors' duties in preparing to
become debtors-in-possession and then fulfilling their duties as
debtors-in-possession;
b. assist legal counsel and the Debtors in executing the
Debtors' restructuring efforts, including chapter 11 cases;
c. seek to maximize the value of the Debtors' assets and
operations through one or more of the following: seeking
pre-petition financing, seeking debtor-in-possession financing,
negotiating consent to the use of cash collateral, seeking exit
financing, seeking the sale of one or more of the Debtors or their
assets, seeking the refinance of existing debt, seeking a
recapitalization, seeking a restructuring or reorganizing of the
Debtors' businesses, in whole or in part;
d. assist in connection with motions, responses, or other
court activity as directed by legal counsel;
e. prepare periodic reporting to stakeholders, the Board, the
bankruptcy court and the Office of the United States Trustee;
f. evaluate and develop restructuring plans and other
strategic alternatives for maximizing the value of the Debtors and
their assets;
g. assist in the formulation and preparation of the Debtors'
disclosure statement and plan of reorganization;
h. assist in negotiations with the Debtors' creditors and
other stakeholders, and in developing the response to any
objections from parties in interest to the bankruptcy plan or other
courses of action undertaken by the Debtors; and
i. assist in preparing representatives of the Debtors with
respect to declarations, reports, depositions and testimony.
The firm will be paid at these hourly rates:
Partners $695 - $950
Managing Directors $495 - $650
Directors $425 - $500
Analysts $255 - $400
Force Ten Partners is a "disinterested" person within the meaning
of Sections 101(14) and 327 of the Bankruptcy Code, according to
court filings.
The firm can be reached through:
Nicholas Rubin
Force 10 Partners, LLC
5271 California Ave., Suite 270
Irvine, CA 92617
Phone: (949) 357-2360
Email: nrubin@force10partners.com
About Basic Water Company
Basic Water Company, a water utility company in Nevada, and
affiliate Basic Water Company SPE 1, LLC sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Nev. Lead Case
No. 22-13252) on Sept. 10, 2022. In their petitions, Basic Water
Company listed $10 million to $50 million in assets and $1 million
to $10 million in liabilities while SPE 1 listed as much as $50
million in both assets and liabilities. Stephanne A. Zimmerman,
president, signed the petitions.
Judge Mike K. Nakagawa oversees the cases.
The Debtors tapped Samuel A. Schwartz, Esq. at Schwartz Law, PLLC
as legal counsel, and Force 10 Partners, LLC as financial advisor.
BASIC WATER: Seeks to Hire Schwartz Law as Bankruptcy Counsel
-------------------------------------------------------------
Basic Water Company, a Nevada corporation, and Basic Water Company
SPE 1, LLC, a Nevada limited liability company, seek approval from
the U.S. Bankruptcy Court for the District of Nevada to hire
Schwartz Law, PLLC as their Chapter 11 counsel.
The firm's services include:
(a) advising the Debtors with respect to their powers and
duties in the continued management and operation of their business
and property;
(b) attending meetings and negotiating with representatives of
creditors and other parties in interest, and advising on the
conduct of the bankruptcy cases, including all of the legal and
administrative requirements of operating in Chapter 11;
(c) taking all necessary actions to protect and preserve the
Debtors' bankruptcy estate, including the prosecution of actions on
the Debtors' behalf, the defense of any actions commenced against
the estate, negotiations concerning all litigation in which the
Debtors may be involved, and objections to claims filed against the
estate;
(d) preparing reports and legal papers;
(e) negotiating and preparing a plan of reorganization,
disclosure statement and all related documents, and taking
necessary actions to obtain confirmation of such plan;
(f) advising the Debtors in connection with any sale of their
assets;
(g) appearing before the bankruptcy court, appellate courts
and the Office of the U.S. Trustee; and
(h) performing all other necessary legal services for the
Debtors.
The firm's hourly rates are as follows:
Attorneys $345 - $845
Paraprofessionals $195 - $235
Samuel Schwartz, Esq., the firm's attorney who will be providing
the services, disclosed in a court filing that he is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Samuel A. Schwartz, Esq.
Schwartz Law, PLLC
601 East Bridger Avenue
Las Vegas, NV 89101
Tel: 702-385-5544
Fax: 702-201-1330
Email: saschwartz@nvfirm.com
About Basic Water Company
Basic Water Company, a water utility company in Nevada, and
affiliate Basic Water Company SPE 1, LLC sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Nev. Lead Case
No. 22-13252) on Sept. 10, 2022. In their petitions, Basic Water
Company listed $10 million to $50 million in assets and $1 million
to $10 million in liabilities while SPE 1 listed as much as $50
million in both assets and liabilities. Stephanne A. Zimmerman,
president, signed the petitions.
Judge Mike K. Nakagawa oversees the cases.
The Debtors tapped Samuel A. Schwartz, Esq. at Schwartz Law, PLLC
as legal counsel, and Force 10 Partners, LLC as financial advisor.
BE MORE DEVELOPERS: Kelemans Buying Baltimore Property for $129.9K
------------------------------------------------------------------
Be More Developers LLC seeks approval from the U.S. Bankruptcy
Court for the District of Maryland to sell the real property
located at 1501-1503 North Broadway Street, in Baltimore, Maryland
21213, to Daniel Keleman and Maureen Keleman for $129,900.
On Sept. 1, 2022, the Debtor received a Residential Contract of
Sale relating to the Real Property. Pursuant to the Contract, the
Buyers has agreed to purchase the Debtor's right, title and
interest in and to the Real Property for the purchase price of
$129,900. The Buyers are not related to the Debtor and are
disinterested third parties.
The Debtor believes that the proposed purchase price is reasonable,
and that a sale of the Real Property to the Buyer is in the best
interests of the estate and its creditors.
The Real Property is encumbered a deed of trust held by 814 Glen
Allen, LLC. The current balance owed to Glen Allen on account of
its deed of trust is in excess of $360,000. Glen Allen has agreed
to accept $120,000 in full satisfaction of its Claim.
The Debtor respectfully submits that the Contract was negotiated in
good faith, represents an arms'-length transaction, the purchase
price is reasonable, and approval of the Contract and the proposed
sale is in the best interests of the estate and its creditors.
Accordingly, it asks that the Court enters an Order approving the
Contract.
The Debtor seeks a waiver of the 14-day stay of an order
authorizing the sale of the Real Property imposed by Rule 6004(h)
of the Federal Rule of Bankruptcy Procedure, unless modified by an
Order of the Court.
A copy of the Contract is available for free at
https://tinyurl.com/4vx244ak from PacerMonitor.com free of charge.
About Be More Developers
Be More Developers LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Md. Case No. 22-10786) on Feb. 16,
2022,
listing as much as $1 million in both assets and liabilities.
Michael Coleman, member, signed the petition.
Aryeh E. Stein, Esq., at Meridian Law, LLC serves as the Debtor's
legal counsel.
BLUE CHIP: Cameron LR Offers $4.1 Million for Birmingham Properties
-------------------------------------------------------------------
Blue Chip Hotels Assets Group Birmingham East, LLC, asks the U.S.
Bankruptcy Court for the Northern District of Alabama, Southern
Division, to authorize the private sale of its interest in USA
Economy Lodge located at 7941 & 7931 Crestwood Blvd., in
Birmingham, Alabama 35210, 207 units, to Cameron LR Development,
LLC, for $4.1 million.
The Debtor proposes to sell all of the estate's right, title and
interest in the real property, free and clear of any and all
mortgages, liens, interests and/or other encumbrances, but to the
extent any lien exists, it would attach to sale proceeds.
All liens, mortgages, or other interests will attach to the
proceeds of the sale to the extent properly allowed. The Debtor
reserves the right to contest the validity, priority, extent of any
such claim, lien or other interest.
The sale is an arm's-length transaction and is not to an insider.
It is in accordance with the terms of the Contract. The proposed
sale will be by private sale and the total purchase price of the
property is $4.1 million.
The Debtor had determined that completion of this sale of the
property, would be in the best interest of its estate and
creditors. It sets forth that the total sales price represents the
fair market value of the realty.
The real property is subject to the following liens, mortgages or
other interest and are listed in the order of recording priority:
Pacific Premier Bank holds a mortgage and note with an approximate
balance of $2,174,264.00. Lien date: 3/6/2017.
The proposed sale qualifies under Bankruptcy Code Section
363(f)(l), (2), and (3). Accordingly, the Debtor moves the Court
as follows:
A. To order the date, time, and place of hearing on this
Motion and the time within which objections may be filed and served
on the Debtor;
B. On such hearing, to approve the proposed sale and grant
the Debtor the authority to sell and convey the real property
identified; and to execute any instrument necessary by order of the
Court, or otherwise, to effect the transfer to a purchaser;
C. To approve the sale free and clear of all liens and
interests and provide that any liens will attach to the proceeds of
the sale and if, on such hearing, it should appear that there are
other parties claiming an interest in the property to be sold, to
approve and confirm the sale nevertheless, and to order the Debtor
to hold the consideration paid on the date of the sale until the
dispute can be resolved; and
D. To grant such other, further and different relief as may
be proper in the premises to effect the sale of the said property.
A copy of the Purchase and Sale Agreement is available for free at
https://tinyurl.com/yc4rcy32 from PacerMonitor.com free of charge.
About Blue Chip Hotels Assets Group
Birmingham East LLC
Blue Chip Hotels Assets Group Birmingham East, LLC is part of the
hotel and motel industry. The company is headquartered in
Irondale, Ala.
Blue Chip Hotels filed its voluntary petition for Chapter 11
protection (Bankr. N.D. Ala. Case No. 21-02685) on Nov. 6, 2021,
listing as much as $10 million in both assets and liabilities.
Nilesh Mehta, managing member of Blue Chip Hotels, signed the
petition.
Judge Tamara O. Mitchell presides over the case.
C. Taylor Crockett, Esq., at C. Taylor Crockett, P.C. represents
the Debtor as legal counsel.
BORREGO COMMUNITY: PCO Taps Dr. Tim Stacy as Consultant
-------------------------------------------------------
Jacob Nathan Rubin, the patient care ombudsman appointed in Borrego
Community Health Foundation's Chapter 11 case, seeks approval from
the U.S. Bankruptcy Court for the Southern District of California
to employ Dr. Tim Stacy DNP, ACNP-BC as his consultant.
Dr. Stacy will assist the PCO in reviewing a variety of hospital
and patient records, reports and related information.
The Debtor will pay the PCO consultant an hourly fee of $325.
As disclosed in court filings, Dr. Stacy is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
Dr. Stacy can be reached at:
Tim Stacy
5268 Huckleberry Oak Street
Simi Valley, CA. 93063
Tel: (805) 578-4569
Cell: (805) 208-0434
Email: tstacy@g.ucla.edu
About Borrego Community Health Foundation
Borrego Community Health Foundation offers, among other services,
comprehensive primary care, pediatric care, urgent care, behavioral
health services, dental services, specialty care, transgender
health, women's health, prenatal care, veteran's health, and
chiropractic services. Borrego Community is a non-profit public
charity, tax-exempt under section 501(c)(3) of the Internal Revenue
Code. The Foundation, as of Sept. 12, 2022, had 24 brick-and-mortar
sites including administrative sites, two pharmacies and six mobile
units covering a service area consisting of a 250-mile corridor on
the eastern side of San Diego and Riverside Counties, Calif.
Borrego Community Health Foundation sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. S.D. Calif. Case No.
22-02384) on Sept. 12, 2022, with between $50 million and $100
million in assets and liabilities. Isaac Lee, chief restructuring
officer, signed the petition.
Tania M. Moyron, Esq., at Dentons US, LLP is the Debtor's legal
counsel. Kurtzman Carson Consultants, LLC is the Debtor's claims
and noticing agent.
Jacob Nathan Rubin, the patient care ombudsman appointed in the
Debtor's case, tapped Levene Neale Bender Yoo & Golubchik, LLP as
bankruptcy counsel and Dr. Tim Stacy DNP, ACNP-BC as consultant.
BORREGO COMMUNITY: PCO Taps Levene as Bankruptcy Counsel
--------------------------------------------------------
Jacob Nathan Rubin, the patient care ombudsman appointed in Borrego
Community Health Foundation's Chapter 11 case, seeks approval from
the U.S. Bankruptcy Court for the Southern District of California
to employ Levene Neale Bender Yoo & Golubchik, LLP as bankruptcy
counsel.
The firm will provide legal assistance to efficiently discharge the
PCO's duties, which include analyzing, drafting and filing his
reports and other documents in the Debtor's Chapter 11 case.
Levene will be paid at these rates:
Attorneys $350 to $650 per hour
Paraprofessionals $250 per hour
The firm will also be reimbursed for out-of-pocket expenses
incurred.
David Golubchik, Esq., a partner at Levene, 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:
David B. Golubchik, Esq.
Levene Neale Bender Yoo & Golubchik, LLP
2818 La Cienega Avenue
Los Angeles, CA 90034
Tel: (310) 229-1234
Fax: (310) 229-1244
Email: DBG@LNBYG.com
About Borrego Community Health Foundation
Borrego Community Health Foundation offers, among other services,
comprehensive primary care, pediatric care, urgent care, behavioral
health services, dental services, specialty care, transgender
health, women's health, prenatal care, veteran's health, and
chiropractic services. Borrego Community is a non-profit public
charity, tax-exempt under section 501(c)(3) of the Internal Revenue
Code. The Foundation, as of Sept. 12, 2022, had 24 brick-and-mortar
sites including administrative sites, two pharmacies and six mobile
units covering a service area consisting of a 250-mile corridor on
the eastern side of San Diego and Riverside Counties, Calif.
Borrego Community Health Foundation sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. S.D. Calif. Case No.
22-02384) on Sept. 12, 2022, with between $50 million and $100
million in assets and liabilities. Isaac Lee, chief restructuring
officer, signed the petition.
Tania M. Moyron, Esq., at Dentons US, LLP is the Debtor's legal
counsel. Kurtzman Carson Consultants, LLC is the Debtor's claims
and noticing agent.
Jacob Nathan Rubin, the patient care ombudsman appointed in the
Debtor's case, tapped Levene Neale Bender Yoo & Golubchik, LLP as
bankruptcy counsel and Dr. Tim Stacy DNP, ACNP-BC as consultant.
BRAND44: Wins Cash Collateral Access on Final Basis
---------------------------------------------------
The U.S. Bankruptcy Court for the District of Colorado authorized
Brand 44, LLC to use cash collateral on a final basis in accordance
with the budget, with a 15% variance.
The Debtor has an immediate need to use cash collateral to avoid
irreparable harm to its business and the estate.
Pursuant to the Promissory Note dated April 30, 2019, between the
Debtor, as borrower, and Alpine Bank, a Colorado banking
corporation, as lender, the Bank agreed to extend a loan to the
Debtor pursuant to the Prepetition Loan Documents. The Debtor
represents that as of the Petition Date, the Prepetition
Obligations were in an amount not less than $3,381,988 and the
Prepetition Obligations are binding obligations of the Debtor which
as of the Petition Date are immediately payable without any setoff,
recoupment, offset, defenses or counterclaims. The Bank perfected
its Prepetition Liens when it filed its UCC-1 with the Colorado
Secretary of State at Filing No. 20192038628.
In addition to the Bank, these parties may assert a security
interest in the Debtor's assets including cash collateral: (i)
Amazon Capital Services by virtue of a UCC-1 filed with the
Colorado Secretary of State on March 12, 2020, at Filing No.
20202025344; (ii) Financial Agent Services by virtue of a UCC-1
filed with the Colorado Secretary of State on March 10, 2021, at
Filing No. 20212022885; (iii) The United States Small Business
Administration by virtue of a UCC-1 filed with the Colorado
Secretary of State on February 22, 2022, at Filing No. 20222018118;
and (iv) FAS by virtue of a UCC-1 filed with the Colorado Secretary
of State on May 23, 2022, at Filing No. 20222053153.
To the extent of any diminution in value of its interests in the
Debtor's assets including its cash collateral, each of Alpine Bank,
Amazon, FAS and the SBA will receive as adequate protection,
pursuant to sections 361 and 363(e) of the Bankruptcy Code, a
replacement lien against all post-petition property of the Debtor
solely to the same extent as provided in that creditor's
prepetition agreements and in the same priority as existed prior to
the Petition Date.
To the extent of Diminution in Prepetition Collateral Value, the
Bank is further granted an allowed superpriority administrative
claim, pursuant to section 507(b) of the Bankruptcy Code with
priority over all administrative expense claims against the Debtor
or its estate, now existing or hereafter arising, of any kind or
nature whatsoever.
As additional adequate protection, pursuant to section 361(1) of
the Bankruptcy Code, the Debtor will make monthly payments to the
Bank in the amount of $75,000 from cash collateral. All Adequate
Protection Payments will be made no later than the 15th day of the
month whether or not budgeted in the Approved Budgets and will be
applied by the Bank to the Prepetition Obligations. Upon entry of
the Final Order, the Debtor will pay to Bank the Adequate
Protection Payment it is currently holding that is budgeted for the
month of September 2022.
To the extent of a diminution in value of its interests the
Debtor's assets including its cash collateral, Amazon, FAS and the
SBA will receive as adequate protection, pursuant to sections 361
and 363(e) of the Bankruptcy Code, a replacement lien against all
post-petition property of the Debtor solely to the same extent as
provided in such creditor's prepetition agreements and in the same
priority as existed prior to the Petition Date.
The Debtor is directed to comply with these milestones:
(a) The Court will have entered orders which: (i) approves the
Debtor's retention of its bankruptcy counsel, Onsager Fletcher
Johnson, no later than October 5, 2022, and (ii) approves the
Debtor's retention of IJW & Co. Ltd., no later than October 5,
2022.
(b) Bidding Procedures Motion. On the Petition Date, the
Debtor filed its Motion for Order Authorizing and Approving: (A)
Bidding Procedures for the Sale of Debtor's Property by Auction;
(B) Notice of Sale by Auction; (C) the Auction; and (D) Setting
Deadline to Object to the Sale of the Property and on September 10,
2022, the Debtor filed its Notice of Modified Dates Regarding
Bidding Procedures For The Sale Of Debtor's Property By Auction.
The Court will have entered its order granting Bidding Procedures
Motion no later than October 5, 2022, and all dates, deadlines and
obligations set forth in the order granting the Bidding Procedures
Motion will be considered an additional Milestone.
These events constitute a "Termination Event:"
(a) The failure to achieve any of the Milestones by the dates
provided for in the Final Order.
(b) Any other material breach, default or other violation by
the Debtor of the terms and provisions of the Final Order.
(c) Entry of an order by the Bankruptcy Court that grants any
creditor or party in interest a claim under section 506(b) of the
Bankruptcy Code.
(d) Entry of an order by the Bankruptcy Court that, in the
Bank's discretion, affects, impairs, alters or otherwise prejudices
the Bank's rights, priorities and protections granted under the
Prepetition Loan Documents or the Final Order.
(e) December 1, 2022.
A copy of the order is available at https://bit.ly/3rBbQUs from
PacerMonitor.com.
About Brand 44, LLC
Brand 44, LLC designs, manufactures and sells outdoor activities
products through a variety of distribution channels, including
through online sales, sporting good retailers, specialty catalogs
and large retail stores. Brand 44 produces and sells its products
through five product brand names: Slackers, Playzone Fit, 4Fun,
American Ninja Warrior, and Plum Play. Brand 44 sells its products
in the United States and internationally on all five continents.
Brand 44 sells to its customers online through a number of avenues,
including Amazon.com, Wayfair.com, Dicks.com and directly through
the website: www.b4adventures.com. Its customers also include large
retail stores, including Target.
Brand 44 sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Colo. Case No. 22-13369) on September 1, 2022. In
the petition signed by Edward T. O'Brien III, the Debtor disclosed
up to $10 million in both assets and liabilities.
Judge Elizabeth E. Brown oversees the case.
J. Brian Fletcher, Esq., at Onsager Fletcher Johnson LLC is the
Debtor's counsel.
BRENT JARRETT: Seeks to Hire Furr Cohen as Legal Counsel
--------------------------------------------------------
Brent Jarrett, D.D.S., P.A. seeks approval from the U.S. Bankruptcy
Court for the Southern District of Florida to employ Furr Cohen,
P.A. as its legal counsel.
The firm's services will include:
(a) advising the Debtor with respect to its powers and duties
and the continued management of its business operations;
(b) advising the Debtor with respect to its responsibilities in
complying with the U.S. trustee's operating guidelines and
reporting requirements and with the rules of the court;
(c) preparing legal documents;
(d) protecting the interest of the Debtor in all matters pending
before the court; and
(e) representing the Debtor in negotiation with its creditors in
the preparation of a Chapter 11 plan.
Furr Cohen will be paid at these rates:
Robert C. Furr $675 per hour
Charles I. Cohen $575 per hour
Alvin S. Goldstein $575 per hour
Alan R. Crane $525 per hour
Marc P. Barmat $525 per hour
Jason S. Rigoli $425 per hour
Paralegals $175 per hour
The firm will also be reimbursed for out-of-pocket expenses
incurred.
The retainer is $14,000.
Alan Crane, Esq., a partner at Furr Cohen, 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.
Furr Cohen can be reached at:
Alan R. Crane, Esq.
Furr Cohen, P.A.
2255 Glades Road, Suite 301E
Boca Raton, FL 33431
Tel: (561) 395-0500
Fax: (561) 338-7532
Email: acrane@furrcohen.com
About Brent Jarrett, D.D.S.
Brent Jarrett, D.D.S., P.A. filed a Chapter 11 bankruptcy petition
(Bankr. S.D. Fla. Case No. 22-17329) on Sept. 20, 2022, with up to
$1 million in both assets and liabilities. Judge Scott M. Grossman
oversees the case.
The Debtor is represented by Alan R. Crane, Esq., at Furr Cohen,
P.A.
BUMBLE INC: Fitch Affirms LongTerm IDR at 'BB-', Outlook Stable
---------------------------------------------------------------
Fitch has affirmed the Long-Term Issuer Default Rating (IDR) of
Bumble Inc. and Buzz Finco L.L.C. at 'BB-' and the senior secured
revolver and term loans at 'BB+'/'RR1'. Fitch believes the senior
secured revolver and term loans satisfy the conditions of category
1 first lien debt and accordingly receive an 'RR1' recovery rating
and two-notch uplift from the IDR. The Rating Outlook is Stable.
KEY RATING DRIVERS
Bumble Brand Momentum: Total revenue for second-quarter 2022 (2Q22;
including Badoo) grew by 18% yoy driven by strong growth in the
Bumble App. Revenues for the app grew 33% yoy to $170 million
driven by an increase in paying users (149,000 net new Bumble App
paying users in 2Q22). Bumble gained download share in major
markets including U.S., Canada and UK.
Consumer Discretionary Spending Exposure: Bumble's revenue and
profitability are almost entirely exposed to consumer discretionary
spending. While Fitch believes that recessionary periods may affect
growth as consumers limit discretionary spending, there is little
precedence to draw on as dating apps (in the current form) did not
exist during the last recession.
Fitch believes online connections could be less susceptible to
recessionary pressures. The company reported little to no impact to
Bumble App's trends for first-half 2022. Fitch notes that Bumble
App has an affluent customer base that may be more price inelastic.
Badoo's base pulled back spending during the pandemic, and may be
more affected by current macro headwinds.
Ukraine Conflict and FX Headwinds: Bumble exited Russia and
Belarus, and discontinued monetization in Ukraine in the first half
of the year resulting in a net loss of 128,000 paying users on the
Badoo App (total Badoo net loss of 136,000). As of 2Q22, Bumble
estimated an approximately $20 million impact to FY2022 revenue due
to the conflict in Ukraine. As of 2Q22, Bumble estimated
approximately $36 million of FX impacts in FY2022 due to the
strengthening of the U.S. dollar.
Healthy Product Pipeline: Fitch notes that Bumble has a healthy
product pipeline (with monetization features), which will be pushed
out steadily over the course of the year and in the long term. The
Company delayed the launch of its College Bundles based on feedback
from its college ambassadors it would be better received after
students have settled in after the school year starts. The
Compliments Feature was tested to positive results in Germany and
Australia and is being rolled out to select markets in North
America. Fitch views these cautious launches positively as it
indicates that Management is methodical about optimizing reception
from users.
Industry Growth Supported by Secular Tailwinds: Fitch expects the
online dating industry, and freemium dating applications in
particular, to experience strong user and revenue growth over the
rating horizon. This growth will be supported by increasing
international smartphone penetration, declining marriage rates,
lessening stigmas around online dating, and an increasing
proportion of Generation Z being eligible to use web-based dating
services. Fitch believes Bumble is well positioned to benefit from
this secular trend.
Limited Product Diversification: Bumble's portfolio consists of two
main platforms, Bumble and Badoo & Other, which represented 74% and
26% of revenue, respectively, in the LTM period ended Jun-22. Fitch
believes limited product diversification increases credit risk as
any significant operational or reputational issues at either
platform may have a significant impact on Bumble's consolidated
financial profile.
Significant Level of Competition: Bumble competes in the crowded
and competitive online dating industry. Bumble's main competitor is
Match Group, Inc. which owns the largest and highest grossing
dating app in the world, Tinder, as well as a number of other
competitive platforms such as Hinge, PlentyofFish, Match.com,
eHarmony, etc. Fitch believes that multiple large competitors can
exist in the dating app space, as users will frequently use and pay
for multiple dating applications at once.
Fitch believes Bumble's focus on female empowerment and safety
provides important competitive differentiation, though Fitch
questions the long-term sustainability of this advantage against
competitors with significant financial resources and only modest
barriers to entry for new dating applications.
Robust Cash Flow Generation: Fitch expects Bumble to generate
strong FCF margins over the rating horizon. Cash flow generation
will be supported by a strong EBITDA margin profile, limited
working capital requirements, and low levels of capital intensity.
Fitch believes strong FCF generation provides management with
significant financial flexibility to pursue strategic investments
with internally generated resources.
Owner Concentration: As of September 2022, Blackstone owns 33% of
Bumble's common equity. Fitch views the ownership neutrally;
although not a controlling interest, control can still be exerted
and increases the likelihood of large debt-funded shareholder
distributions.
DERIVATION SUMMARY
Bumble's 'BB-' IDR is supported by Bumble's competitive positioning
as a safe and female-friendly dating application, relatively
conservative leverage profile, strong FCF generation and Fitch's
expectation for the company to achieve sustained strong revenue
growth supported by a number of secular tailwinds. The credit
profile's strengths are offset by material discretionary consumer
spending exposure, limited product diversification and significant
sector competition. The 'RR1' Recovery Rating on the senior secured
debt reflects Fitch's expectation for a superior recovery based on
the company's strong underlying cash flow generation, profitability
and brand value.
Bumble builds and operates dating and social networking mobile
applications, which most notably include Bumble and Badoo. Fitch
believes Bumble's operational, financial and credit protection
metrics position it well in the 'BB-' rating category compared with
Fitch's rated TMT universe.
KEY ASSUMPTIONS
- Revenue forecasted to grow at a double-digit CAGR over the
rating horizon, driven by both paying user growth and ARPPU growth,
reflecting the strong secular tailwinds in the online dating
industry and the company's new user monetization initiatives;
- Badoo is expected to see revenue declines in FY2022 and FY2023
with slow low single digit recovery over the rating horizon. This
reflects Fitch's assumption of pull back by paying customers
reacting to high inflation environment, particularly in Europe;
- Acquisition revenue is modest, estimated at a 5.5x multiple of
acquisition amount;
- Fitch assumes a majority of revenue growth will be derived from
Bumble subscription and transaction growth, as a majority of
marketing spend is allocated toward Bumble user acquisition;
- $375 million in acquisitions over the forecast period. $75
million reflects the Fruitz acquisition that occurred in January
2022. Acquisitions are cash funded;
- EBITDA margins range between 24%-26%. Margin expansion occurs in
2024, reflecting lower spend in non-acquisitive years;
- Stable capital intensity over the rating horizon;
- Bumble repurchases shares worth $400 million, funded primarily
with FCF.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Bumble's consolidated revenue growth materially exceeding
industry growth;
- Total debt with equity credit/operating EBITDA sustained below
3.0x;
- Sustained double-digit FCF margins.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Debt funded acquisitions or shareholder returns causing total
debt with equity credit/operating EBITDA to exceed 4.0x without a
credible plan for deleveraging;
- Match Group, Facebook or other competitors taking material
market share from Bumble, resulting in poor operating performance
and depressed profitability. Fitch believes indicators would show
flat to negative revenue growth and EBITDA margins sustained near
or below 20%;
- Sustained low single-digit FCF margins.
LIQUIDITY AND DEBT STRUCTURE
Strong Liquidity Position: As of June 2022, Bumble's liquidity is
supported by $335 million of readily available cash and an undrawn
$50 million revolver. Fitch expects liquidity will be further
supported by consistent FCF generation, due to strong profitability
and limited capital requirements.
Bumble's debt structure is comprised of a $50 million senior
secured revolver and $636 million of outstanding senior secured
term loans. The revolver matures in January 2025, and the term loan
matures January 2027. Bumble has no significant debt maturities
over the rating horizon, and will only be required to make $1.4
million quarterly amortization payments over the life of the term
loan. Fitch believes Bumble's liquidity is sufficient to support
its debt service over the ratings horizon.
ISSUER PROFILE
Bumble Inc. builds and operates dating and social networking mobile
applications, most notably include Bumble and Badoo, which are two
of the top five dating apps globally. Bumble has more than 40
million monthly active users across more than 150 countries.
ESG CONSIDERATIONS
Bumble Inc. has an ESG Relevance Score of '4' for Exposure to
Social Impacts due to social impacts due to Bumble's position as a
female-friendly dating application seeking to mitigate harassment
or abusive language frequently experienced by women on dating
applications, which has a positive impact on the credit profile,
and is relevant to the ratings in conjunction with other factors.
Fitch believes that Bumble's female friendly policies give Bumble a
competitive advantage in the online dating industry, which bolsters
the company's strong market position and supports user retention
rates, having a positive impact on the credit profile. This is
relevant to the ratings in conjunction with other factors.
Bumble Inc. has an ESG Relevance Score of '4' for Governance
Structure due to Blackstone's singular control of all operational
and financing decisions , which has a negative impact on the credit
profile, and is relevant to the ratings 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.
Debt Rating Recovery Prior
---- ------ -------- -----
Bumble Inc. LT IDR BB- Affirmed BB-
Buzz Finco L.L.C. LT IDR BB- Affirmed BB-
senior secured LT BB+ Affirmed RR1 BB+
CDP HOLDINGS: Wins Cash Collateral Access Thru Oct 14
-----------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of New York
authorized CDP Holdings Group, LLC and its debtor-affiliates to use
cash collateral on an interim basis in accordance with the budget,
with a 10% variance and provide adequate protection.
Between 2016 and 2019, the Debtors entered into a number of loan
transactions with Northpoint Commercial Credit, LLC and Northpoint
Capital Partners LLC pursuant to which Northpoint advanced funds
for acquisition of assets and for working capital to be utilized at
various radiology facilities that the Debtors operated in Nassau
and Queens counties, New York.
Northpoint was granted a security interest in certain of the
Debtors' assets, which may have included the Debtors' cash and cash
equivalents. In connection therewith, Northpoint filed UCC-1
financing statements that indicated that it held those liens on the
Debtors' assets.
Northpoint asserts that it is owed approximately $3 million.
On December 6, 2020, the debtor Neighborhood Radiology Services,
P.C. entered into a loan transaction with American Equity Bank
n/k/a Luminate Bank, pursuant to which AEB tendered $6.75 million
to NRS and was granted a "blanket lien" on all of NRS' assets. On
December 14, 2020, AEB filed a UCC-1 financing statement which
indicated that it held those liens on NRS' assets.
AEB also asserts a lien on the NRMS assets by virtue of the filing
of a UCC-1 financing statement on December 17, 2019. However, the
Debtors have been unable to ascertain to what obligation this
asserted lien relates. As of the Filing Date, AEB was owed
approximately $7 million from NRS.
The U.S. Small Business Administration holds a duly perfected
subordinate security interest in all of the Debtors' respective
personal property, including the proceeds thereof, by virtue of a
note and security agreement, entered into in by the Debtor on or
about June 2020 and the filing of UCC-1 Financing Statements
evidencing such interest. As of the Filing Date, the Debtors were
each indebted to the SBA in the approximate amount of $150,000.
As adequate protection, the Secured Creditors are granted
replacement liens in the cash collateral, to the extent the said
liens were valid, perfected and enforceable as of the Filing Date
and in the continuing order of priority of the liens and security
interests held by the Secured Creditors without determination
herein as to the nature, extent and validity of said pre-petition
liens and claims, and solely to the extent Collateral Diminution
occurs during the Chapter 11 case, subject to: (i) up to S100,000
for the claims of Chapter 11 professionals duly retained and to the
extent awarded pursuant to sections 330 or 331 of the Bankruptcy
Code or pursuant to any monthly fee order entered in the Chapter 11
case; (ii) United States Trustee fees pursuant to 28 U.S.C. Section
1930 and interest pursuant to 31 U.S.C. Section 3717; and (iii) the
payment of any claim of any subsequently appointed Chapter 7
Trustee to the extent of $10,000; and (iv) estate causes of action
and the proceeds of any recoveries of estate causes of action under
Chapter 5 of the Bankruptcy Code.
As additional adequate protection for the Debtors' use of cash
collateral, the Debtors will pay to AEB monthly interest only debt
service payments, at the contract (non-default) rate of interest,
as set forth in the underlying loan agreement.
The Replacement Liens and security interests granted are
automatically deemed perfected upon entry of the Order without the
necessity of the Secured Creditors having to take possession, file
financing statements, mortgages or other typical security
documents.
The security interests and liens granted: (i) are and will be in
addition to all security interests, liens and rights of set-off
existing in favor of the Secured Creditors on the Filing Date; (ii)
will secure the payment of indebtedness to the Secured Creditors in
an amount equal to the aggregate Collateral Diminution resulting
from the Cash Collateral used or consumed by the Debtors; and (iii)
will be deemed to be perfected without the necessity of any further
action by the Secured Creditors or the Debtors.
The Debtors acknowledge that they have failed to make the adequate
protection payments due under the prior Orders of the Court and are
committed to using their best efforts to cure these prior defaults
while remaining current on their adequate protection payment
obligations on a going forward basis. Specifically, the Debtors
have failed to remit: (i) $13,421 for June; and (ii) $27,737 for
July. In an effort to cure its deficiencies, the Debtor will remit
its first payment in the amount $19,000 on or before September 9,
2022 and a second payment in the amount of $19,000 on or before
September 30, 2022, in accordance with the payment directives.
These payments will be applied first to the interest only debt
service payment due and owing for the month of August, with any and
all excess amounts applied to the Outstanding Adequate Protection
Payments. The Debtors will pay in full the Outstanding Adequate
Protection Payments on a going forward basis with cumulative
monthly Catch-up Payments.
The Debtors' authorization to use cash collateral and the Secured
Creditors' consent thereto, will immediately terminate without
further Order on the earlier of: (a) October 14, 2022, at 5 p.m.
EST; (b) the entry of and order granting any party relief from the
automatic stay with respect to any property of the Debtors in which
the Secured Creditors claim a lien or security interest, whether
pursuant to the Order or otherwise; (c) the entry of an order
dismissing the Chapter 11 proceedings or converting these
proceedings to a case under Chapter 7 of the Bankruptcy Code; (d)
the entry of an order confirming a plan of reorganization; or (e)
the entry of an order by which the Order is reversed, revoked,
stayed, rescinded, modified or amended without the consent of the
Secured Creditors thereto.
The final hearing on the matter is scheduled for October 14 at 2:30
p.m.
A copy of the order is available at https://bit.ly/3CBQs7N from
PacerMonitor.com.
About CDP Holdings Group
CDP Holdings Group, LLC, and affiliate Neighborhood Radiology
Management Services, LLC are management service organizations or
"MSOs" that provide administrative and operational non-medical
services at various diagnostic imaging locations.
CDP Holdings Group and its affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Lead Case
No. 22-41392) on June 16, 2022. In the petition filed by Daniel
DiPeitro, as sole member, CP Holdings estimated assets between $1
million and $10 million. The petition states funds will be
available to Unsecured Creditors.
Judge Elizabeth D. Stong oversees the case.
Dawn Kirby, Esq., at Kirby Aisner & Curley LLP, is the Debtors'
counsel.
CELSIUS NETWORK: Can't Hide Creditors Names From Filings
--------------------------------------------------------
Cryptocurrency platform Celsius Network LLC can't hide the names of
its customers-creditors during its bankruptcy proceedings, a
bankruptcy judge said Wednesday, Sept. 28, 2022, unpersuaded by the
company's argument that its customers' names were critical business
asset that should not fall into competitors' hands.
Celsius Network filed an ex parte motion for entry of an order
authorizing the Debtors to redact the following personally
identifiable information from the Debtors' Creditor Matrix,
Schedules and Statements, petitions, affidavits of service, and any
other documents publicly filed on the
docket:
(i) the home addresses and email addresses of any citizens of
the United States located in the United States, including the
Debtors' employees, individual shareholders, and individual
customers, and
(ii) the names, home addresses, and email addresses of any
citizens of the United Kingdom or European Economic Area member
countries and any individual whose citizenship is unknown.
The Official Committee of Unsecured Creditors filed a joinder to
the Sealing Motion. There were also joinders filed by the Ad Hoc
Group of Withhold Account Holders and the Ad Hoc Group of Custodial
Account Holders.
In connection with the Sealing Motion, the Debtors are also seeking
to redact the names of certain creditors listed on the schedules of
the Debtors' professional retention applications (collectively, the
"Retention Applications.").
The U.S. Trustee filed timely objections to the Sealing Motion and
to the Retention Applications.
On August 24, 2022, the Committee filed a motion ("White and Case
Sealing Motion") seeking to redact and seal the names and
identifying information of (i) those named in a parties in interest
list provided by the Debtors for the purposes of running conflicts;
and (ii) potential lenders. On August 30, 2022, the Debtors filed
a motion ("Anonymization Motion") authorizing the Debtors to (i)
redact individual names; and (ii) implement an anonymized
identification process. While the Debtors' initial Sealing Motion
only sought to seal the home addresses and email addresses (but not
names) of U.S. citizens, the Anonymization Motion expanded the
sealing request to include all individual names, as well as
physical addresses and email addresses.
The Court:
* GRANTS the Sealing Motion, in part, to authorize the Debtors to
redact home addresses and email addresses of any individual
creditors.
* DENIES the Sealing Motion in part, to the extent it seeks to
redact (i) names of individual creditors, and (ii) names, email
addresses, and physical addresses of business entities that are
creditors.
* GRANTS the Sealing Motion, in part, to the extent it seeks to
redact individual creditors' home addresses and email addresses in
the Debtors’ Creditor Matrix and to authorize the Debtors to file
a redacted Creditor Matrix without creditors' home addresses and
email addresses.
* DENIES the Sealing Motion to the extent it seeks to impound the
names of
individual creditors in the Creditor Matrix Motion.
As a result of the Memorandum Opinion, the Court also:
* SUSTAINS the Retention Objection and requires the Debtors to
file unredacted Retention Applications.
* GRANTS the White and Case Sealing Motion, in part, only to the
extent that the redactions comply with the redactions permitted by
this Memorandum Opinion's decision regarding the Sealing Motion and
the redaction of the home and email addresses of individual
creditors.
* DENIES the White and Case Sealing Motion, in part, to the
extent it seeks to redact the names of individuals or any
information surrounding business entities.
* DENIES the Debtors' Anonymization Motion.
The Court believes that Debtors should redact home addresses,
telephone numbers and email addresses, but not the creditors names,
from any Court filings, to protect the individuals from harassment
and identity theft.
"Names alone are simply not enough to facilitate a competitor's
theft. Celsius has stated that it has over 1.7 million registered
users and approximately 300,000 active users with account balances
of more than $100, with account holders in more than 100 countries.
(Mashinsky Declaration ¶¶ 1, 9.) Identifying the individual
account holders by name, without physical and email addresses, is
insufficient information to expose customers to risks of identity
theft or personal danger. Sealing information such as that sought
by the Debtors from public disclosure risks transforming the open
and transparent bankruptcy process into something very different,
which the Court is loath to do without a strong showing of real and
not speculative risks," Judge Martin Glenn said in his ruling.
"Ultimately, this Court is unconvinced that the names alone without
any of the other identifying information constitutes commercial
information. In this case, the customer names alone, without their
addresses and emails, would not unequivocally identify people. See
Motors Liquidation, 561 B.R. at 44 (holding that the identities of
the owners of 10% or more of the equity interests of a party in an
adversary proceeding are not confidential commercial information
and denying motion to seal)."
In the Anonymization Motion, the Debtors submit that filing any
document on the public docket linking names and account balances
poses "an undue risk of identity theft or unlawful injury" given
the unique nature of cryptocurrency and the heightened risk of
cyberattacks due to the difficulties associated with tracking,
tracing, and recovering stolen cryptocurrency.
"The Court is not persuaded by this proposed solution, in part,
because the public schedules do not merely serve the interests of
individual creditors, but, rather, also serve the interests of
creditors and the public in general -- all parties and the public
share an interest in complete transparency, with only the rarest of
exceptions. The claims-allowance process, with broad access of
information for all creditors, helps provide confidence in the
fairness and transparency of the bankruptcy process," Judge Glenn
said.
About Celsius Network
Celsius Network LLC -- http://www.celsius.network/-- is a
financial services company that generates revenue through
cryptocurrency trading, lending, and borrowing, as well as by
engaging in proprietary trading.
Celsius helps over a million customers worldwide to find the path
towards financial independence through a compounding yield service
and instant low-cost loans accessible via a web and mobile app.
Celsius has a blockchain-based fee-free platform where membership
provides access to curated financial services that are not
available through traditional financial institutions.
The Celsius Wallet claims to be one of the only online crypto
wallets designed to allow members to use coins as collateral to get
a loan in dollars, and in the future, to lend their crypto to earn
interest on deposited coins (when they're lent out).
Crypto lenders such as Celsius boomed during the COVID-19 pandemic,
drawing depositors with high interest rates and easy access to
loans rarely offered by traditional banks. But the lenders'
business model came under scrutiny after a sharp sell-off in the
crypto market spurred by the collapse of major tokens terraUSD and
luna in May 2022.
New Jersey-based Celsius froze withdrawals in June 2022, citing
"extreme" market conditions, cutting off access to savings for
individual investors and sending tremors through the crypto
market.
The list of major crypto firms that have filed for bankruptcy
protection in 2022 now includes Celsius Network, Three Arrows
Capital and Voyager Digital.
Celsius Network LLC and its subsidiaries sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No.
22-10964) on July 14, 2022. In the petition filed by CEO Alex
Mashinsky, the Debtor estimated assets and liabilities between $1
billion and $10 billion.
Kirkland & Ellis LLP is serving as legal counsel, Centerview
Partners is serving as financial advisor, and Alvarez & Marsal is
serving as restructuring advisor to Celsius.
Stretto, the claims agent, maintain the page
https://cases.stretto.com/celsius
CELSIUS NETWORK: Court Okays Examiner Named By US Trustee
---------------------------------------------------------
Steven Church of Bloomberg News reports that the US Trustee asked a
federal judge to approve the appointment of a former federal
prosecutor to investigate the digital assets of Celsius Network LLC
as part of the crypto lender's bankruptcy.
Shoba Pillay is the co-chair of the data privacy and cybersecurity
section of the law firm of Jenner & Block.
Pillay, who is based in Chicago, was an assistant US Attorney for
the Department of Justice for more than 11 years before joining the
law firm in 2021, according to her biography.
About Celsius Network
Celsius Network LLC -- http://www.celsius.network/-- is a
financial services company that generates revenue through
cryptocurrency trading, lending, and borrowing, as well as by
engaging in proprietary trading.
Celsius helps over a million customers worldwide to find the path
towards financial independence through a compounding yield service
and instant low-cost loans accessible via a web and mobile app.
Celsius has a blockchain-based fee-free platform where membership
provides access to curated financial services that are not
available through traditional financial institutions.
The Celsius Wallet claims to be one of the only online crypto
wallets designed to allow members to use coins as collateral to get
a loan in dollars, and in the future, to lend their crypto to earn
interest on deposited coins (when they're lent out).
Crypto lenders such as Celsius boomed during the COVID-19 pandemic,
drawing depositors with high interest rates and easy access to
loans rarely offered by traditional banks. But the lenders'
business model came under scrutiny after a sharp sell-off in the
crypto market spurred by the collapse of major tokens terraUSD and
luna in May 2022.
New Jersey-based Celsius froze withdrawals in June 2022, citing
"extreme" market conditions, cutting off access to savings for
individual investors and sending tremors through the crypto
market.
The list of major crypto firms that have filed for bankruptcy
protection in 2022 now includes Celsius Network, Three Arrows
Capital and Voyager Digital.
Celsius Network LLC and its subsidiaries sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case
No.22-10964) on July 14, 2022. In the petition filed by CEO Alex
Mashinsky, the Debtor estimated assets and liabilities between $1
billion and $10 billion.
Kirkland & Ellis LLP is serving as legal counsel, Centerview
Partners is serving as financial advisor, and Alvarez & Marsal is
serving as restructuring advisor to Celsius. Stretto, the claims
agent, maintains the page https://cases.stretto.com/celsius
On July 27, 2022, the U.S. Trustee appointed an official committee
of unsecured creditors. On July 29, 2022, the committee voted to
retain White & Case as its counsel. The committee tapped Elementus
as blockchain forensics advisor, M3 as its financial advisor, and
Perella Weinberg Partners LP as its investment banker.
CELSIUS NETWORK: UST Takes No Position on Equity Panel Formation
----------------------------------------------------------------
The U.S. Trustee for Region 2 filed a statement with the U.S.
Bankruptcy Court for the Southern District of New York, saying he
does not take a position with respect to the request for the
appointment of an official committee that will represent holders of
Celsius Network Limited's preferred equity securities.
On Sept. 23, Community First Partners, LLC and three other equity
holders asked the court to direct the U.S. trustee to appoint an
equity committee. The equity holders argued they deserve an equal
seat at the table while key negotiations are happening given that
the official committee of unsecured creditors in Celsius Network's
Chapter 11 case are already representing retail customers and given
that equity holders have a substantial likelihood of meaningful
recovery in the case.
About Celsius Network
Celsius Network LLC -- http://www.celsius.network/-- is a
financial services company that generates revenue through
cryptocurrency trading, lending, and borrowing, as well as by
engaging in proprietary trading.
Celsius helps over a million customers worldwide to find the path
towards financial independence through a compounding yield service
and instant low-cost loans accessible via a web and mobile app.
Celsius has a blockchain-based fee-free platform where membership
provides access to curated financial services that are not
available through traditional financial institutions.
The Celsius Wallet claims to be one of the only online crypto
wallets designed to allow members to use coins as collateral to get
a loan in dollars, and in the future, to lend their crypto to earn
interest on deposited coins (when they're lent out).
Crypto lenders such as Celsius boomed during the COVID-19 pandemic,
drawing depositors with high interest rates and easy access to
loans rarely offered by traditional banks. But the lenders'
business model came under scrutiny after a sharp sell-off in the
crypto market spurred by the collapse of major tokens terraUSD and
luna in May 2022.
New Jersey-based Celsius froze withdrawals in June 2022, citing
"extreme" market conditions, cutting off access to savings for
individual investors and sending tremors through the crypto
market.
The list of major crypto firms that have filed for bankruptcy
protection in 2022 now includes Celsius Network, Three Arrows
Capital and Voyager Digital.
Celsius Network LLC and its subsidiaries sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No.
22-10964) on July 14, 2022. In the petition filed by CEO Alex
Mashinsky, the Debtor estimated assets and liabilities between $1
billion and $10 billion.
Kirkland & Ellis LLP is serving as legal counsel, Centerview
Partners is serving as financial advisor, and Alvarez & Marsal is
serving as restructuring advisor to Celsius.
Stretto, the claims agent, maintain the page
https://cases.stretto.com/celsius
CHURCH OF GOD: Case Summary & Four Unsecured Creditors
------------------------------------------------------
Debtor: Church of God of Corona Inc.
3317 102nd St
Corona, NY 11368-1130
Business Description: The Debtor, a tax-exempt religious
organization, owns in fee simple title
a property located at 3317 102nd St,
Corona, NY valued at $1.3 million.
Chapter 11 Petition Date: October 6, 2022
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 22-42488
Judge: Hon. Nancy Hershey Lord
Debtor's Counsel: H. Bruce Bronson, Esq.
BRONSON LAW OFFICE, P.C.
480 Mamaroneck Ave
Harrison, NY 10528-1621
Tel: (877) 385-7793
Email: hbbronson@bronsonlaw.net
Total Assets: $1,300,000
Total Liabilities: $753,122
The petition was signed by Blanca Giron as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's four unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/CBWRY6A/Church_of_God_of_Corona_Inc__nyebke-22-42488__0001.0.pdf?mcid=tGE4TAMA
CINEWORLD GROUP: Shuts Down Arbor Cinema in Austin, TX
------------------------------------------------------
Bob Garcia-Buckalew of KVUE reports that Austin's Arbor Cinema at
Great Hills shuts down.
The owners of the 33-year-old multi-screen movie theater in
northwest Austin, Cineworld, filed for bankruptcy protection
earlier this September 2022.
A blank marquee and a dark movie house greeted movie-goers as the
Regal Arbor Cinema at Great Hills, popular for showing
lower-budget, independent films, was closed.
While there were no details specific to the Austin theater shutdown
from its owner, Cineworld, which operates the Arbor under the Regal
name in the U.S., the closing appears to be related to a bankruptcy
filing on Sept. 7, 2022.
On Monday, Sept. 26, 2022, employees at the cinema, located between
Jollyville Road and the Highway 183 North access road near Great
Hills Trail, were seen carting-out items from the shuttered
theater.
When the big drive-in movie theaters kept Austinites entertained
Alamo Drafthouse founder auctioning off personal collection of
movie posters to pay staff, debt.
According to the Associated Press, Cineworld is nearly $5 billion
in debt and filed for Chapter 11 protection in the U.S. Bankruptcy
Court for the Southern District of Texas. The company said it hopes
to emerge from bankruptcy by early next 2023.
Movie exhibitioners have suffered massive losses during the
COVID-19 pandemic as theater-goers avoided group settings, a
setback from which many movie houses haven’t fully recovered.
According to the movie theater fan site cinematreasures.org, the
Austin theater was opened on July 14, 1989, as the Great Hills 8
Cinema and was operated by General Cinema Theatres. It was closed
in 2000, but reopened Oct. 9, 2003, as Arbor Cinema at Great
Hills.
About Cineworld Group PLC
London-based Cineworld Group PLC was founded in 1995 and is the
world's second-largest cinema chain. Cineworld operates 751 sites
with 9,000 screens in 10 countries, including the Cineworld and
Picturehouse screens in the UK and Ireland, Yes Planet in Israel,
and Regal Cinemas in the US.
According to The Guardian, the Griedinger family, including Mooky's
brother and deputy chief executive, Israel, have struggled to
maintain control of the ailing business but have been forced to
reduce their stake from 28% in recent years. Cineworld's top five
investors include the Chinese Jangho Group at 13.8%, Polaris
Capital Management (7.82%), Aberdeen Standard Investments (4.98%)
and Aviva Investors (4.88%).
The London-listed Cineworld, which has run up debt of more than
$4.8 billion after losses soared during the pandemic, is pinning
its hopes on a meatier slate of movies in 2022 to bounce back from
a two-year lull.
Cineworld Group plc and 104 affiliates sought Chapter 11 protection
(Bankr. S.D. Tex. Lead Case No. 22-90168) on Sept. 7, 2022,
estimating more than $1 billion in assets and debt.
PJT Partners LP is providing financial advice, Kirkland & Ellis LLP
and Slaughter and May are acting as legal counsel and AlixPartners
LLP is serving as restructuring advisor to Cineworld. Jackson
Walker LLP is the co-bankruptcy counsel. Kroll is the claims
agent.
CLAAR CELLARS: Ampleo Proposes Auction Sale of Real Properties
--------------------------------------------------------------
CFO Solutions, LLC, doing business as Ampleo, the Plan
Agent/Trustee of Claar Cellars, LLC, and RC Farms, LLC, asks the
U.S. Bankruptcy Court for the Eastern District of Washington to
authorize the sale of Debtors' real property consisting of the
following:
a. Claar Cellars White Bluffs Vineyard
122.53-Acre Vineyard, Shop Building and Single Family
Residence
1340 Glenwood Road, Pasco, Washington, 99301
Franklin Co. Assessor Parcel Nos. 126390140 & 126390110
b. Claar Cellars Taylor Flats Vineyard and Irrigated Farmland
85.64-Acre Vineyard, Shop Building and Single Family
Residence
11201 Taylor Flats Road, Pasco, Washington 99301
Franklin Co. Assessor Parcel No. 123080013
c. 1081 Glenwood Road, Pasco, Washington 99301
Franklin County Parcel No. 126-390-171
On May 31, 2022, the Court entered an order appointing Ampleo as
successor Plan Agent/Trustee under the Liquidating Plan effective
June 1, 2022 with all of the rights, duties, and obligations of the
Plan Agent under the Liquidating Plan and the trustee for the
Grantor Trust created by the Liquidating Plan. On July 8, 2022,
the Court entered the Order Approving Settlement Agreement Between
Homestreet Bank and the Debtor Parties which further defined
Ampleo's role as Plan Agent/Trustee under the Liquidating Plan
pursuant to a settlement agreement executed between HomeStreet Bank
and the Debtor Parties.
Among other things, the Liquidating Plan and the Grantor Trust
authorize and direct Ampleo to liquidate and sell estate
assets including the Debtor Parties' Real Property, fixtures and
improvements.
Ampleo intends to retain AgriBusiness Trading Group, Inc. for the
purpose of selling the Real Property at an auction to be held on or
about December 15, 2022 or such other date as may be mutually
agreed or ordered by the Court. The Real Property will be sold
either by parcel, collectively or by a combination thereof, however
bids are received.
As part of the sale, the Auctioneer will be paid a buyer's
commission of 6% of the gross auction proceeds at closing. No
funds will be advanced to the Auctioneer for marketing costs. he
Auctioneer will deduct its marketing costs associated with the
auction from the auction proceeds to be disbursed to Ampleo.
Ampleo proposes that the Auction and Sale of the Real Property be
conducted pursuant to the Auctioneers' usual and custom auction
procedures including those included in the Auction Agreements. The
Auctioneer will provide procedures that will establish rules by
which prospective bidders can participate at the auction for the
Real Property. The auction will be a live auction held both in
person and by video conference wherein prospective bidders will be
required to submit bids at the auction.
The important dates and deadlines will include the following:
a. Objection Deadline: Oct. 5, 2022, at 4:00 p.m. prevailing
(PT) as the deadline to object to the Motion.
b. Auction: Dec. 15, 2022, or such other date as may be
agreed to, but not less than 60 days after the Court's entry of
Sale Order, to be held at 1081 Glenwood Road, Pasco, WA 99301, and
online.
c. Sale Closing Deadline: Within 10 business days after the
close of the auction.
Pursuant to the terms of the Liquidating Plan and the Grantor
Trust, the Debtor Parties irrevocably transferred to Ampleo the
"Trust Assets" free and clear of all liens and encumbrances except
as otherwise provided for. See Liquidating Plan and Grantor Trust.
Therefore, Ampleo is authorized and directed to sell the Real
Property subject to notice and the Court's approval to the highest
bidder(s) on an as-is, where-is, basis free and clear of all liens,
claims, and interests.
Ampleo requests that the sale order provides that any and all liens
against the Real Property attach to the proceeds of the sale in the
same order and with the same priority as such liens had with
respect to the Real Property to be sold immediately before the
sale, with net proceeds to be paid to secured creditors holding
valid and perfected liens against the assets to be sold as provided
by the Liquidating Plan and the Grantor Trust.
Ampleo also requests that the White Bluffs and Taylor Flats
Vineyards be sold pursuant to an "absolute" auction whereby the
auction does not include a reserve price setting a minimum required
bid for the vineyards. It further requests that HomeStreet be
allowed to submit “credit bids” for the purchase of the
vineyards up to the amount of its Allowed Secured Claim of
$2,443,711.62 through Sept. 20, 2022, plus interest, attorney fees
and costs incurred after that date.
Ampleo also requests that the Glenwood Property includes a reserve
price setting the minimum amount required to bid on the property at
$942,752.50, which is the amount set forth in the amended proof of
claim filed by Baker Boyer Bank on Aug. 31, 2022. The Debtor
Parties contend that the sale of Parcel No. 126390110 should be
subject to a life estate to be granted in favor of Robert and
Crista Whitelatch. Ampleo has been advised that HomeStreet does
not consent to the granting of a life estate to the Whitelatches.
Ampleo has only limited and historical information as to the
estimated value of the Real Property. According to the Debtor
Parties' schedules, the Real Property has an aggregate estimated
value of $6.34 million.
HomeStreet is the holder of valid and perfected liens against
certain assets of the estate, including the White Bluffs Vineyard
and the Taylor Flats Vineyard. The liens in favor of HomeStreet
secure its Allowed Secured Claim in the amount of $2,443,711.62 as
of the September 20, 2022, plus accruing interest, costs, and
attorneys' fees.
Baker Boyer is the holder of valid and perfected liens against
certain assets of the estate, including the Glenwood Property. The
liens in favor of Baker Boyer secure its Allowed Secured Claim in
the claimed amount of $942,752.50, as set forth in the Baker Boyer
Amended Claim.
In Ampleo's business judgment, the sale of the Real Property at
auction at this time is in the best interest of this estate and
creditors. It believes that any further delay in selling the Real
Property will have a detrimental effect upon the estate and will
further delay the administration of this estate. It further
believes that a sale of the Real Property at an auction pursuant to
the Auction Agreements will maximize the value to the Debtor
Parties' creditors by obtaining the highest and best offer for the
sale of the Real Property.
The Liquidating Plan and the Grantor Trust authorize and direct
Ampleo to liquidate and sell the bankruptcy estate's assets,
including the Real Property. Pursuant to the Liquidating Plan and
Grantor Trust, Ampleo need only provide notice of the sale to
interested parties and allow fourteen days for any interested party
to object. If no party objects, then Ampleo may proceed with the
sale. However, if a party does object, then Ampleo must obtain an
order from the court approving the sale.
The net sale proceeds from the Vineyards will first be paid to
HomeStreet in satisfaction of its liens on the Vineyards with any
remaining proceeds to be distributed to the Debtor Parties'
creditors in accordance with the priorities set forth in the
Bankruptcy Code, and in accordance with the Liquidating Plan. The
net sale proceeds from the Glenwood Property will first be paid to
Baker Boyer in satisfaction of its liens on the Glenwood Property
with any remaining proceeds to be distributed to the Debtor
Parties' creditors in accordance with the priorities set forth in
the Bankruptcy Code.
A telephone hearing on the Motion was set for Oct. 6, 2022, at
10:00 a.m. (PST). The Objection Deadline was Oct. 5, 2022, at 4:00
p.m. (PST).
A copy of the Auction Agreement is available at
https://tinyurl.com/bdefu5kh from PacerMonitor.com free of charge.
About Claar Cellars LLC and
RC Farms LLC
Claar Cellars LLC -- https://www.claarcellars.com/ -- is a
family-owned estate winery. It offers a selection of wines,
including Riesling, Cabernet Sauvignon, Merlot, Chardonnay,
Sauvignon Blanc, Syrah, Sangiovese, and newly planted Pinot Gris,
Viognier, Malbec and Petite Sirah.
Claar Cellars and its affiliate, RC Farms LLC, sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Wash. Lead
Case No. 20-00044) on Jan. 9, 2020. At the time of the filing,
the Debtors each had estimated assets of between $10 million and
$50 million and liabilities of between $1 million and $10 million.
Judge Whitman L. Holt oversees the cases.
The Debtors are represented by Steven H. Sackmann, Esq., at
Sackmann Law, PLLC; Toni Meacham, Esq., Attorney at Law; and Roger
W. Bailey, Esq., at Bailey & Busey, PLLC.
A committee of unsecured creditors has been appointed in Claar
Cellars' bankruptcy case. The committee is represented by
Southwell & O'Rourke, P.S.
CLAAR CELLARS: Ampleo Proposes Musser Auction Sale of Equipment
---------------------------------------------------------------
CFO Solutions, LLC, doing business as Ampleo, the Plan
Agent/Trustee of Claar Cellars, LLC, and RC Farms, LLC, asks the
U.S. Bankruptcy Court for the Eastern District of Washington to
authorize the auction sale of the Debtors' personal property,
equipment, and titled vehicles, used in connection with their
farming operations.
On May 31, 2022, the Court entered an order appointing Ampleo as
successor Plan Agent/Trustee under the Liquidating Plan effective
June 1, 2022 with all of the rights, duties, and obligations of the
Plan Agent under the Liquidating Plan and the trustee for the
Grantor Trust created by the Liquidating Plan. On July 8, 2022,
the Court entered the Order Approving Settlement Agreement Between
Homestreet Bank and the Debtor Parties which further defined
Ampleo's role as Plan Agent/Trustee under the Liquidating Plan
pursuant to a settlement agreement executed between HomeStreet Bank
and the Debtor Parties.
Among other things, the Liquidating Plan authorizes and directs
Ampleo to liquidate and sell certain estate assets including
certain personal property, equipment, and titled vehicles, which
assets have been used in connection with the farming operations of
the Debtor Parties. Exhibit B is a detailed listing of the
Equipment to be sold at auction.
Ampleo intends to retain Musser Bros Inc. for the purpose of
selling the Equipment and Titled Vehicles at an auction to be held
on or about 60 days after entry of the order authorizing the sale
by the Court, or such other date as may be agreed to between Plan
Agent/Trustee and Auctioneer. Exhibit C to the Trustee's Motion is
the agreement memorializing the Auctioneer's retention for this
purpose.
As set forth more fully in the Auctioneer Contract, the Auctioneer
will be paid pursuant to the following terms:
(a) With respect to the farm equipment, implements and
vehicles, the Auctioneer will be paid 10% of the gross auction
proceeds at closing and a 2.5% buyer's premium on the gross auction
proceeds; and
(b) With respect to the winery equipment, the Auctioneer will
be paid 15% of the gross auction proceeds on items that are sold
for up to and including $2,500, 10% of the gross auction proceeds
on items that are sold for $2,501 or more, and a 10% buyer's
premium on the gross auction proceeds on all items sold, regardless
of their purchase price.
(c) The Auctioneer is responsible for any and all marketing
expenses it incurs in its performance of its marketing obligations
under the Auctioneer Contract.
Pursuant to the terms of the Liquidating Plan, Ampleo is authorized
to sell the Equipment at auction subject to notice and the Court's
approval to the highest bidder(s) on an as-is, where-is, basis free
and clear of all liens, claims, and interests. Ampleo requests
that the sale order provides that any and all liens against the
Equipment attach to the proceeds of the sale, with net proceeds to
be paid to secured creditors holding valid and perfected liens
against the assets to be sold in satisfaction of those claims as
provided by the Plan.
The Plan Administrator has only limited and historical information
as to the estimated value of the Equipment. The Plan Agent
expresses no opinion as to the value of the assets to be sold at
auction. According to the Debtors' schedules, the Equipment has an
estimated aggregate value of $750,000.
HomeStreet is the holder of valid and perfected liens against
certain real and personal property assets of the estate, including
the Equipment. The liens in favor of HomeStreet secure its Allowed
Secured Claim in the amount of $2,443,711.62 as of Sept. 20, 2022,
plus accruing interest, costs, and attorneys' fees ("HSB Claim").
Ampleo requests that HomeStreet be allowed to credit bid its HSB
Claim at the auction.
The Allowed Equipment Secured Claims against Claar Cellars include
the following Allowed Secured Claims as described in Class 3 of the
Liquidating Plan: Farm Credit Leasing Services Corp. (Stage
Chiller) - $7,217.49; H&A Financing Services Corp. (Approximately
1,000 Wooden Wine Barrels) - $37,514; and Hammi Bank (10,0000
Gallon Stainless Tank) - $8,946.
Allowed Equipment Secured Claims against RC Farms consist of the
following claims as described in Class 4 of the Liquidating Plan:
Farm Credit Leasing Services Corp. (2007 New Holland Tractor ) -
$10,346.83; Farm Credit Services of America, PCA / Ag Direct
(Vineyard Leaf Stripper/Puller Vineyard Desucker) - $7,087.37; and
Financial Pacific Leasing (Berm Stripper and 4175) - $27,420.30.
Ampleo proposes to sell the described items of equipment at auction
and pay the allowed secured claims of Class 3 and Class 4 creditors
from the proceeds of such sale. In the event any of the items
subject to the liens of Class 3 and Class 4 creditors are not sold
at auction, Ampleo will surrender any unsold items to the creditor
holding the first perfected lien against such items of equipment.
The Liquidating Plan and the Grantor Trust authorize and direct
Ampleo to liquidate and sell the bankruptcy estate's assets,
including the Equipment. Pursuant to the Plan Ampleo need only
provide notice of the sale to interested parties and allow 14 days
for any interested party to object. If no party objects, then
Ampleo may proceed with the sale. However, if a party does object,
then Ampleo must obtain an order from the Court approving the
sale.
Ampleo has been advised that Robert Whitelatch has acquired or
purchased certain claims from holders of Class 3 and Class 4
claims, including the following claimants noted; Farm Credit
Leasing Corp; Farm Credit Services of America, PCA/Ag Direct;
Financial Pacific Leasing; H&A Financing Services Corp. and Hammi
Bank. Ampleo has requested that Mr. Whitelatch provide
verification of any acquisition or purchase of the foregoing
secured claims but has not yet received any documentation
evidencing or verifying such payments or transfers as of the date
of the Motion and no transfers of claims have been filed with the
court with respect to these claims.
Ampleo intends to pay net proceeds received from the sale of
personal property assets first to those creditors identified
holding valid and perfected first security interest in such assets.
It proposes to distribute the remaining net proceeds received from
the sale of Equipment to HomeStreet which holds a perfected
security interest in the Equipment.
A telephone hearing on the Motion was set for Oct. 6, 2022, at
10:00 a.m. (PST). The Objection Deadline was Oct. 5, 2022, at 4:00
p.m. (PST).
A copy of the Exhibit B is available at
https://tinyurl.com/2p8wepcd from PacerMonitor.com free of charge.
About Claar Cellars LLC and
RC Farms LLC
Claar Cellars LLC -- https://www.claarcellars.com/ -- is a
family-owned estate winery. It offers a selection of wines,
including Riesling, Cabernet Sauvignon, Merlot, Chardonnay,
Sauvignon Blanc, Syrah, Sangiovese, and newly planted Pinot Gris,
Viognier, Malbec and Petite Sirah.
Claar Cellars and its affiliate, RC Farms LLC, sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Wash. Lead
Case No. 20-00044) on Jan. 9, 2020. At the time of the filing,
the Debtors each had estimated assets of between $10 million and
$50 million and liabilities of between $1 million and $10 million.
Judge Whitman L. Holt oversees the cases.
The Debtors are represented by Steven H. Sackmann, Esq., at
Sackmann Law, PLLC; Toni Meacham, Esq., Attorney at Law; and Roger
W. Bailey, Esq., at Bailey & Busey, PLLC.
A committee of unsecured creditors has been appointed in Claar
Cellars' bankruptcy case. The committee is represented by
Southwell & O'Rourke, P.S.
CLARUS THERAPEUTICS: Wins Cash Collateral Access on Final Basis
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware authorized
Claurus Therapeutics Holdings et al. to use cash collateral on a
final basis in accordance with the budget.
The Debtor requires the use of cash collateral to continue
operations and administer and preserve the value of their estates.
Clarus is a party to the Indenture, dated as of March 12, 2020 ((i)
as amended and supplemented by the (a) Supplemental Indenture No.
1, dated as of May 27, 2021, (b) Supplemental Indenture No. 2,
dated as of September 9, 2021, and (c) Supplemental Indenture No.
3, dated as of September 28, 2021, and (ii) as further amended,
restated, supplemented, and/or otherwise modified from time to
time, including pursuant to the Interim Order, the "Indenture," and
together with all other related documents, guarantees and
agreements, including without limitation, the Collateral Agreement
dated as of March 12, 2020, the related Security Documents, by and
among Debtor Clarus, as issuer, any Guarantor that becomes party
thereto pursuant to the terms thereof, and U.S. Bank National
Association, as trustee and as collateral agent, pursuant to which
Clarus issued 12.5% Senior Secured Notes due 2025 to the current
holders thereof. Each of the Indenture Documents is valid,
binding, and enforceable in accordance with its terms.
As of the Petition Date and as of the date of the Final Order, (a)
the aggregate outstanding principal amount, plus accrued interest,
owed by Debtor Clarus under the Indenture Documents is not less
than $43,125,000.
As a condition to the Secured Parties consenting to the use of cash
collateral, and subject in all respects to the Carve-Out and the
Wind-Down Budget, the Secured Parties are granted adequate
protection in the form of, among other things, periodic cash
payments, adequate protection liens and superpriority claims, to
the extent of the decline in the (x) aggregate value of the
Collateral subject to the Secured Parties' respective Prepetition
Liens as of the Petition Date as compared to (y) the applicable
determination date of the aggregate value of: (i) the Secured
Parties' respective Prepetition Liens on and interests in the
Collateral, and (ii) the Secured Party Adequate Protection
Payments, resulting from the (a) use of the Collateral, (b) use,
sale, depreciation, or other diminution in value of the Collateral,
or (c) imposition of the automatic stay under section 362(a) of the
Bankruptcy Code.
As of the entry of the Interim Order, payment of all accrued and
unpaid postpetition interest (1) in the aggregate amount of
$2,695,312.50 for the period from March 1, 2022 through and
including August 31, 2022, at the non-default rate borne by the
Notes pursuant to the Indenture.
During the week ending October 28, payment of all accrued and
unpaid postpetition interest (1) in the aggregate amount of
$521,094 for the period from September 1, 2022, through and
including September 30, 2022, at the rate borne by the Notes plus
2% pursuant to the Indenture; and (2) in the aggregate amount of
$486,354 for the period from October 1, 2022, through and including
October 28, 2022, at the rate borne by the Notes plus 2% pursuant
to the Indenture.
A copy of the order is available at https://bit.ly/3Mj5P8v from
PacerMonitor.com.
About Clarus Therapeutics Holdings, Inc.
Clarus Therapeutics Holdings, Inc. sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 22-10845)
on September 5, 2022. In the petition signed by Lawrence R.
Perkins, chief restructuring officer, the Debtor disclosed up to
$100,000 in both assets and liabilities.
Judge Mary F. Walrath oversees the case.
L. Katherine Good, Esq., at Potter Anderson & Corroon LLP is the
Debtor's counsel.
CLAYTON D. THOM: Selling Interest in Jeep to Victorville for $23K
-----------------------------------------------------------------
Clayton D. Thom asks the U.S. Bankruptcy Court for the Central
District of California to authorize the sale nunc pro tunc of the
estate's interest in a 2015 Jeep Wrangler Sport, VIN
1C4AJWAG5FL507127, to Victorville Motors for a one-time payment of
$23,000.
A hearing on the Motion is set for Oct. 13, 2022, at 1:30 p.m.
Objections, if any, must be filed not later than 14 days before the
date set for hearing.
Neither the Debtor nor his wife had ownership or possession of the
Vehicle on the Petition Date. The Debtor received the Vehicle in
lieu of commission from Silver Arrow Cars in July 2022. On Aug.
10, 2022, the Vehicle was transferred into the name of Amy Thom,
the Debtor's wife, and became estate property. On Aug. 24, 2022,
the Debtor sold the Vehicle to Victorville Motors for $23,000 and
used the funds to pay living expenses for himself and his family.
On Aug. 25, 2022, the sale proceeds were immediately deposited into
the Debtor's DIP account.
Title was conveyed without representation or warranty. The sale
was on an "as-is, where-is" basis without representation of
warranty. The Vehicle was free of any liens at the time of sale.
The sale price is above the Kelley Blue Book value of the Vehicle
of $20,433 to $22,824 and represents a fair price. The Debtor has
no affiliation with the Buyer, and the sale was an arms'-length
transaction.
It is appropriate to approve the sale nunc pro tunc because the
Debtor inadvertently sold the vehicle without court approval but
promptly sought approval upon learning of the error. Because he
received the Vehicle post-petition and in lieu of commission, the
Debtor believed in mistaken but good faith that he could liquidate
the vehicle to pay his living expenses. The Debtor disclosed the
transaction in his monthly operating report and promptly sought
Court approval once he conferred with counsel. Accordingly, the
Debtor respectfully submits that nunc pro tunc approval is
appropriate.
The Debtor asks the Court to waive the 14-day stay under FRBP
6004(h).
Counsel for Debtor:
Leslie A. Cohen, Esq.
J'aime Williams Kerper, Esq.
LESLIE COHEN LAW, PC
1615-A Montana Avenue
Santa Monica, CA 90403
Telephone: (310) 394-5900
Facsimile: (310) 394-9280
E-mail: leslie@lesliecohenlaw.com
jaime@lesliecohenlaw.com
The bankruptcy case is In re: Clayton D. Thom, Case No.
6:22-bk-10390-SY (Bankr. C.D. Cal.).
CLEAN ENERGY: Hires Raymond P. Fitzpatrick as Special Counsel
-------------------------------------------------------------
Clean Energy Renewables, LLC filed an amended application seeking
approval from the U.S. Bankruptcy Court for the Central District of
Illinois to employ Raymond P. Fitzpatrick, Jr., an attorney serving
Birmingham, Alabama, as its counsel.
The counsel will render these services:
(a) comply with corporate/limited liability company
governance;
(b) review of advice on master service agreements and other
contracts with wind and solar developers;
(c) review and advise on agreements with vendors;
(d) consult and advice on human resource/employment matters;
(e) review of insurance coverages and claims;
(f) review and advise on confidentiality agreements;
(g) review and advise on regulatory compliance matters; and
(h) review and advise on real estate matters and leases.
Mr. Fitzpatrick agrees to render these services for a flat fee of
$3,000 per month.
Mr. Fitzpatrick assured the court that the firm is a "disinterested
person" within the scope of 11 U.S.C. Sec. 101(14) as required by
11 U.S.C. Sec. 327(a).
Mr. Fitzpatrick can be reached at:
Raymond P. Fitzpatrick, Jr.
1200 Corporate Drive, Suite 105
Birmingham, AL 35242
Phone: +1 205-437-8846
About Clean Energy Renewables
Clean Energy Renewables, LLC -- https://clean-energy-renewables.com
-- provides instrument tower installation and maintenance services
on a nationwide basis, with 26 employees that travel to customer
locations, from its headquarters location in Moline, Illinois.
Clean Energy Renewables filed a petition for relief under
Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D.
Ill. Case No. 22-80432) on July 18, 2022, disclosing between $1
million and $10 million in both assets and liabilities. Robert E.
Eggmann serves as Subchapter V trustee.
Judge Thomas L. Perkins oversees the case.
Sumner A. Bourne, Esq., at Rafool & Bourne PC, is the Debtor's
counsel.
CLEARFORD WATER: Intends to Complete Approved Restructuring
-----------------------------------------------------------
Clearford Water Systems Inc. disclosed that on October 7, 2022 (the
"Proposed Effective Date") it intends to complete certain
transactions contemplated by a Bankruptcy and Insolvency Act
(Canada) (the "BIA") proposal (the "Proposal") filed by the
Corporation, through its proposal trustee KSV Restructuring Inc.
(the "Proposal Trustee"), on
May 12, 2022. The Proposal provides for, among other things,
the compromise and settlement of claims of secured creditors (the
"Sponsors") and unsecured creditors of the Corporation
(collectively, the "Creditors"). The Proposal further contemplates
a reorganization (the "Reorganization") of the Corporation's
outstanding share capital under the Canada Business Corporations
Act (the "CBCA"), as further described below. The Proposal was
approved by the Creditors at a meeting held on June 2, 2022 and on
July 13, 2022, the Ontario Superior Court of Justice in Bankruptcy
and Insolvency granted an order (Estate/Court File no.
33-2825753) approving: (i) the Proposal; (ii) the
Reorganization; and (iii) the First Report of the Proposal
Trustee dated June 29, 2022 and the actions of the
Proposal Trustee described therein.
In accordance with the Reorganization, the Corporation intends
file articles of reorganization under the CBCA on the Proposed
Effective Date, pursuant to which the Corporation's authorized
capital will be amended to create an unlimited number of shares
of a class designated as "New Common Shares" (the "New Common
Shares"), an unlimited number of shares of a class
designated as "Non-Voting Common Shares" (the "Non-Voting
Common Shares", and together with the New Common Shares, the
"New Shares") and an unlimited number of shares of a class
designated as "Redeemable Shares" (the "Redeemable Shares"),
and all common shares outstanding immediately prior to the
implementation of the Reorganization (the "Old Common Shares")
will be re-designated as Redeemable Shares on the basis of
0.000001 (one-millionth) of a Redeemable Share for each Old
Common Share. All Redeemable Shares, into which the Old Common
Shares and fractional interests therein outstanding will
be changed pursuant to the Proposal and the Articles of
Reorganization, will be automatically redeemed by the
Corporation on payment of $0.01 for each whole Redeemable
Share (the "Redemption Price"), provided that if the aggregate
Redemption Price payable to any particular holder is less than
$10.00, the actual Redemption Price payable to each such holder
of Redeemable Shares will be deemed to be $0.00 and the Redeemable
Shares or fractional interests therein will be redeemed without
any payment or further act or formality by the Corporation or
otherwise. It is anticipated that no holders will be entitled to
the payment of any Redemption Price.
Pursuant to the Proposal and the Reorganization, the Corporation
intends to issue New Shares to the Sponsors, or their designated
assignees, in consideration of the compromise of certain
obligations owing by the Corporation to the Sponsors. As a
result of the Reorganization, the Corporation will only have
three registered and beneficial securityholders, namely the
Sponsors or their designated assignees.
Effective at the open of markets on May 3, 2022, the Corporation's
listing transferred from the TSX Venture Exchange to NEX. Upon
implementation of the Reorganization, the Old Common Shares are
expected to be delisted from the NEX on the Proposed Effective
Date. The Corporation has made an application to the Ontario
Securities Commission (the "OSC") seeking orders (collectively, the
"Orders") for the revocation of the failure-to-file cease trade
order issued by the OSC on May 6, 2022, as a result of
the Corporation's failure to file certain continuous disclosure
documents, and to cease to be a reporting issuer in the
provinces of British Columbia, Alberta and Ontario. It is
anticipated that the Orders will be issued on the Proposed
Effective Date, following the implementation of the Reorganization
and the delisting of the Old Common Shares from the NEX.
About Clearford Water Systems
Clearford (NEX:CLI.H) -- http://www.clearford.com-- a provider of
unified water management solutions for the design, deployment,
finance and operation of water infrastructure systems. Clearford is
one of the largest operators of private water and wastewater
systems in Ontario with over 260 sites across the province. Our
diverse team of licensed engineers, certified operators and
technical staff provide total solutions that meet the water
management needs of owners, property managers, and communities.
In-house personnel include designers and technical specialists in,
water and wastewater, engineering, compliance & regulations,
construction services, and health & safety.
The Corporation's technology-based water solutions include
Clearford One(R) wastewater infrastructure systems, and a full
range of UV Pure(R) water disinfection products. Clearford is the
winner of the Frost & Sullivan 2017 Enabling Technology Leadership
Award for Global Decentralized Water & Wastewater Treatment.
CM RESORT: Trustee Selling Gordon Land to Durkin for $3.5 Million
-----------------------------------------------------------------
John Dee Spicer, the trustee appointed in the Chapter 11 cases of
CM Resort LLC and its affiliates, seeks approval from the U.S.
Bankruptcy Court for the Northern District of Texas to sell to
Durkin Properties, LLC, for $3,515,000 cash, subject to overbid, of
the estate's interests in approximately 1,854.349 acres of
undeveloped land in Gordon, Palo Pinto County, Texas, more
particularly described as follows:
(a) the tracts of land consisting of approximately 1,854.349
acres located off of Farm to Market Road 2692, Gordon, Palo Pinto
County, Texas, together with all interest, if any, of Seller in (i)
strips or gores, if any, between the Land and abutting properties
and (ii) any land lying, in or under the bed of any street, alley,
road or right-of-way, opened or proposed, abutting or adjacent to
the Land;
(b) all buildings, structures and improvements on the Land,
including, but not limited to, three vacant residential structures,
various barns and outbuildings;
(c) all rights, titles and interests of Seller, if any, in and
to any oil, gas, hydrocarbons and all other minerals in, on, or
under, or that may be produced from the Land;
(d) all of the Seller's interest in leases, subleases and
rental agreements (written or verbal, now or hereafter in effect,
if any) that grant a possessory interest in or that otherwise grant
rights with regard to use of all or any portion of the Land or the
minerals beneath it;
(e) all rights, titles and interests of Seller in and to any
easements, rights-of-way, rights of ingress or egress or other
interests in, on, or to, any land, highway, street, road or avenue,
open or proposed, in, on, across, in front of, abutting, or
adjoining the Land; and
(f) all other rights, privileges and appurtenances owned by
the Seller and in any way related to the property interests
described.
A hearing on the Motion is set for Nov. 15, 2022, at 1:00 p.m.
Objections, if any, must filed at least 48 hours in advance of such
hearing date.
The Buyer has offered to purchase the Property for $3,515,000 cash,
in accordance with the terms of their Contract of Sale, with
an effective date of Sept. 12, 2022. The terms and conditions set
forth in the Buyer's Contract are subject to higher and better bids
via the bidding process.
The Property is subject to standby fees, taxes, and assessments by
ad valorem taxing authorities for the calendar years 2018, 2019,
2021, and 2022.
It Property is also allegedly subject to the liens described in the
following instruments:
a) Phelan Deed of Trust: Deed of Trust dated Oct. 28, 2020,
executed by Sundance Lodge, LLC, Specfac Group, LLC, and CM Resort,
LLC, acting by and through John Dee Spicer, Chapter 11 Trustee in
Bankruptcy Case No. 18-43168-elmll, pending in the United States
Bankruptcy Court of Northern District of Texas, Fort Worth
Division, to Robert A. McCulloch, Trustee in the amount of
$350,000, payable to Robin Phelan, recorded in Volume 2342, Page
750, Official Public Records of Palo Pinto County, Texas.
Subordination Agreement dated Oct. 28, 2020, from Suzann Ruff,
Matthew Ruff and Suzann Ruff as Trustee of the Ruff Management
Trust, being the Subordinated Creditors, and Robin Phelan, being
the Superior Creditor, recorded in Volume 2342, Page 789, Official
Public Records of Palo Pinto County, Texas. Subordination
Agreement filed October 30, 2020, recorded in Volume 2342, Page
789, Official Public Records of Palo Pinto County, Texas.
b) State Tax Lien: State Tax Lien dated April 3, 2020,
against Michael Ruff, in the amount of $11,312.10, plus interest
and costs, recorded in Volume 2311, Page 636, Official Public
Records of Palo Pinto County, Texas.
c) Owner's Association Lien: Notice of Lien dated May 5,
2020, against Clayton Mountain Development, LLC and Clayton
Mountain Partners, LLC, in the amount of $236,677.50, plus interest
and costs, recorded in Volume 2337, Page 36, Official Public
Records of Palo Pinto County, Texas.
The Property is also allegedly subject to the litigation,
judgments, notices of lis pendens, and affidavits described in the
following instruments:
a) Cause No. C-46164, 29th Judicial District Court of Palo
Pinto County, Texas;
b) Notice of Lis Pendens recorded in Volume 2198, Page 37,
and 2289, Page 236, Official Public Records of Palo Pinto County,
Texas;
c) Cause No. PR-11-02825-1, Probate Court No. 1 of Dallas
County, Texas;
d) Notice of Lis Pendens recorded in Volume 2210, Page 782,
and Volume 2304, Page 746, Official Public Records of Palo Pinto
County, Texas;
e) Cause No. C-49372, 29th Judicial District Court of Palo
Pinto County, Texas;
f) Adversary Proceeding No. 18-04147-ELM, United States
Bankruptcy Court for the Northern District of Texas, Fort Worth
Division;
g) Affidavits Regarding Bankruptcy Case recorded in Volume
2267, Page 596, Volume 2267, page 591, and Volume 2267601, Official
Public Records of Palo Pinto County, Texas;
h) Judgment against Clayton Mountain Development, LLC, dated
Sept. 29, 2019, out of the District Court Cause No. C46164, in the
29th Judicial District Court of Palo Pinto County, Texas, styled
Suzann Ruff, Plaintiff, v. Clayton Mountain Development LLC and the
MAR Living Trust, recorded in Volume 2289, Page 236, Official
Public Records of Palo Pinto County, Texas; and
i) Judgment dated Feb. 12, 2018, styled Suzann Ruff, Matthew
Ruff and Frost Bank as Trustee of The Ruff Management Trust vs.
Michael A. Ruff and John Doe 1-20, recorded in Volume 2217, Page
672, Official Public Records of Palo Pinto County, Texas. Said
judgment being amended by certified copy of First Amended Final
Judgment in Probate Court No. PR-11-02825-1 of the Probate Court of
Dallas County, Texas, Texas Probate Court No. 1, recorded in Volume
2219, Page 557, Official Public Records of Palo Pinto County,
Texas. Said judgment being amended by certified copy of Modified
and Corrected Final Judgment recorded in Volume 2225, Page 122,
Official Public Records of Palo Pinto County, Texas.
The property will be sold free and clear of any unrecorded leases
or rental agreements. It will be sold free and clear of all liens,
claims, and encumbrances including, but not limited to, the
Property Tax Liens, the Phelan Deed of Trust, the State Tax Lien,
the Owner's Association Lien, and the Litigation. Said liens,
claims, and encumbrances will attach to the proceeds of the sale of
the Property. To the best of the Trustee's knowledge, the amounts
necessary to satisfy the Property Tax Liens and the Phelan Deed of
Trust are in the aggregate less than the Purchase Price.
The Trustee proposes to sell the Property to the Buyer for the
Purchase Price described above and upon the terms in the Contract,
or to the highest cash bidder, free and clear of all liens, claims,
and encumbrances, and from the proceeds of such sale:
a) pay usual and customary closing costs, including, but not
limited to, the premium for the owner policy of title insurance for
the insured amount equal to the Purchase Price, the Trustee’s
half of the escrow fee, etc.;
b) pay the holders(s) thereof, as the case maybe, any amount
necessary to satisfy the holders(s) thereof, as the case maybe, any
amount necessary to satisfy the Property Tax Liens then due against
the Property along with a pro rata share of the then current
year’s property taxes;
c) pay a real estate commission of 3% of the gross purchase
price paid for the Property to Kyle Graham with Ruple Properties;
and
d) to the extent the same is valid and subsisting and
encumbers all or a portion of the Property, pay to the holder
thereof any amount necessary to satisfy the Phelan Deed of Trust,
in exchange for a recordable Release(s) of said lien(s).
The disbursements made from the funds constituting the Purchase
Price will be deemed the disbursement of money or turnover of
money, whether paid by the escrow officer closing the sale on
behalf of the Trustee or by the Trustee directly, to parties in
interest for the purposes of 11 U.S.C. Section 326(a) of the
Bankruptcy Code.
The Trustee may sell the Property free and clear of any liens,
claims, or encumbrances with the validity, amount and priority of
such lien, claim, or encumbrance against the proceeds of the sale
to be determined by the Court at a later date. Given the pending
litigation among the Ruff family and related entities and the need
to sell the Property free and clear of liens in an expeditious
manner in order to wind up these bankruptcy estates, the Trustee
has determined in the exercise of his reasonable business judgment,
that a sale under the supervision of the Bankruptcy Court would
provide the most expeditious forum and achieve the highest and best
price for all concerned.
The year of closing ad valorem tax lien will be expressly retained
on the Property until the payment by the purchaser of the year of
closing taxes, plus any penalties or interest which may ultimately
accrue thereon, in the ordinary course of business.
As part of the Contract, the Buyer has deposited a refundable
$75,000 good-faith deposit and agreed to act as the stalking horse
bidder and incur the expenses associated with such a role, subject
to the inclusion of the overbid protections in the bid procedures.
At auction, the Trustee will accept higher bids only in increments
of at least $100,000; provided, however, the first overbid must be
at least $250,000. As further consideration for the Buyer's
agreement to act as the stalking horse bidder, the Contract
provides that if a third party other than the Buyer closes a sale
of the Property with approval of the Bankruptcy Court, the Buyer
will be entitled to receive and will be paid at closing a fee of
$45,000 plus reasonable and necessary fees and expenses of up to an
additional $45,000.
The salient terms of the Bidding Procedures are:
a. Bid Deadline: Nov. 9, 2022, at 5:00 p.m.
b. Initial Bid: At least $250,000 more than the $3,515,000
initial bid
c. Deposit: $75,000 made payable to Republic Title Escrow
Account
d. Auction: A live auction will be held on Nov. 15, 2022 at
11:00 a.m.
e. Bid Increments: $100,000
f. Sale Hearing: Nov. 15, 2022, at 1:30 p.m.
The Trustee requests that any Order on the Motion requires that CM
Resort LLC, et. al., together with all parties acting on its behalf
in connection with the Property, will immediately provide the
Trustee and his broker with all keys, codes, gate openers,
directions, and any other instructions or access items necessary
for unobstructed access to the Property. Alternatively, he
requests that he be permitted to install new locks just on the
gates restricting access to the Property, with codes or copies of
keys to those locks to be provided to the owner(s) of CM Resort
LLC.
In the event that, in the Trustee's sole opinion, any limitation on
access to the Property has a chilling effect on prospective
buyer(s), or otherwise interferes with efficient administration of
these estates, the Trustee reserves the right to request an
emergency interim hearing seeking an order compelling full and
unfettered access to the Property.
A copy of the Contract is available for free at
https://tinyurl.com/2bfz57cc from PacerMonitor.com free of charge.
About CM Resort
Based in Gordon, Texas, CM Resort LLC, a single asset real estate,
filed a voluntary petition for bankruptcy under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Tex. Case No. 18-43168) on Aug. 15,
2018. The case is jointly administered with the Chapter 11 cases
filed by CM Resort Management LLC and nine other companies. Case
No. 18-43168 is the lead case.
In the petition signed by Mark Ruff, member and authorized agent,
CM Resort estimated $1 million to $10 million in assets and $10
million to $50 million in liabilities. Judge Russell F. Nelms
presides over the case.
Gerrit M. Pronske, Esq., at Pronske Goolsby & Kathman, P.C., is CM
Resort's legal counsel.
John Dee Spicer was appointed as Chapter 11 trustee. The trustee
is represented by Cavazos Hendricks Poirot, P.C.
DOCUPLEX INC: Wins Cash Collateral Access Thru Dec 31
-----------------------------------------------------
The U.S. Bankruptcy Court for the District of Kansas authorized
Docuplex, Inc. to use cash collateral, which has been pledged to
Equity Bank, on a final basis through December 31, 2022.
Specifically, the Debtor is granted authority to use income
generated by the Debtor from the collection of accounts receivables
and the sales of inventory, all of which has been pledged to Equity
Bank, among others, until December 31, 2022, in a manner consistent
with the Debtor's budget. The Budget does not reflect postage
expenses, which the Debtor incurs for customers on a pass-through
basis. The Debtor is granted authority to continue its postage
practice as part of the Motion, separate and apart from the
Budget.
The Debtor will deposit the cash collateral into the Debtor's
existing bank accounts consistent with its pre-petition practices.
All creditors will deliver any proceeds from Debtor's ordinary
operations and or sales to the Debtor, and endorse any cash
collateral checks on which any of them are jointly listed as a
payee so that such payments and proceeds may be deposited into the
Debtor's bank accounts.
Equity Bank holds an alleged properly perfected first-priority
security interest in the cash collateral, as well as all other
equipment, furniture, and personal property of the Debtor. The U.S.
Small Business Administration holds an alleged properly perfected
second priority security interest in the Debtor's accounts
receivables, non-titled machinery and equipment, general
intangibles, goods, and other forms of personal property.
Other creditors may assert first priority purchase money security
interests in specific items of equipment, as follows:
1) Heidelberg USA, Inc. (S_Coating GTT C CD102B Large Bail --
claim totals $8,848.73);
2) Canon Financial Services, Inc. (certain leased printers --
assets not owned by Debtor);
3) Fujifilm North America Corporation (FLH85Z Plate Processor
S/N 94199-0158 and Chiller S/N 109079002 -- claim totals
$17,099.96);
4) TCF Equipment Finance (ST100 6 Pocket Stitcher and
Fennimore Punch System -- claim totals $807.21); and
5) Key Equipment Finance (2009 Screen PTR8600S Thermal
Platesetter -- claim amount is unknown).
These events constitute an "Event of Default:"
1) The entry of an order by the Court granting relief from or
modifying the automatic stay of Section 362 of the Bankruptcy Code
(i) to allow any creditor to execute upon or enforce a lien on or
security interest in any of the Collateral;
2) Dismissal of the case or conversion of the case to Chapter
7 case;
3) The sale after the Petition Date of any portion of any of
the Debtor's assets outside the ordinary course of dealing and
without approval by the Court under 11 U.S.C. section 363;
4) The failure by the Debtor to perform, after notice from
Equity, in any respect, any of the material terms, provisions,
conditions, covenants, or obligations under the Order granting the
Motion or under the requirements of the underlying loan documents
between the Debtor and Equity, to the extent such requirements
materially affect the Collateral and are not otherwise inconsistent
with the terms of the Order or bankruptcy law.
As partial adequate protection, Equity is granted a valid,
automatically perfected replacement lien against the Debtor's
assets for the full amount of the cash collateral that is utilized
pursuant to the Order. The replacement liens will have the same
validity, avoidability and priority as the security interests and
liens existing against the cash collateral as of the date of the
Order on the Motion. The replacement liens will be valid and
perfected without the need for the execution, recording or filing
of any further document or instrument or the taking of any further
act otherwise required under nonbankruptcy law.
Equity, for its benefit, is granted, an additional and replacement
continuing valid, binding, enforceable, non-avoidable, and
automatically perfected post-petition security interest in and lien
on any and all presently owned and hereafter acquired personal
property and all other assets of the Debtors and the estate,
together with any proceeds thereof.
Equity will also receive from the Debtor, commencing not later than
September 30, 2022, and continuing monthly thereafter until a)
confirmation of a chapter 11 plan, b) dismissal of the case, c)
conversion of the case to another chapter, or d) subsequent order
of the Court, payments in the amount of $10,000 as adequate
protection.
The Post-Petition Replacement Adequate Protection Lien granted to
Equity will have the same priority as the priority Equity enjoyed
in the Debtor's assets as of the Petition Date, and nothing set
forth wherein is intended to grant Equity or any other creditor a
priming lien on or security interest in the Debtor's assets and
property. Further, except for the Carve Out, the Adequate
Protection Superpriority Claims of Equity will have priority over
all administrative expenses and unsecured claims against the Debtor
and its estate.
The Carve-Out means:
1) Fees payable to the Subchapter V trustee, in an amount not
to exceed $5,000;
2) The allowed professional fees and disbursements for the
Debtor's accountant in this case, in an amount not to exceed
$5,000; and
3) The allowed professional fees and disbursements for the
Debtor's counsel in this case, in an amount not to exceed $40,000;
and
4) Any costs of sale associated with the sale of the
Collateral, including broker commissions, marketing fees, property
taxes, escrow fees, recording costs, and similar expenses, to the
extent authorized by any section 363 order approving of such
sales.
A copy of the order and the Debtor's budget is available at
https://bit.ly/3MaPDpE from PacerMonitor.com.
The budget provides for total expenses, on a monthly basis, as
follows:
$280,179 for October 2022;
$335,179 for November 2022;
$284,829 for December 2022;
$258,635 for January 2023; and
$259,785 for February 2023.
About Docuplex, Inc.
Docuplex, Inc. owns and operates a print and mailing company,
providing all varieties of commercial printing, finishing, and
direct mailing services. It is one of the largest providers of
these services in Wichita, Kansas. Docuplex does not own any real
property, but owns a significant amount of furniture, fixtures,
machinery, equipment, rolling stock, and inventory used in the
operation.
Docuplex sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Kan. Case No. 22-10734) on September 2, 2022. In
the petition signed by Gina Cherry, controller, the Debtor
disclosed up to $10 million in both assets and liabilities.
Judge Mitchell L. Herren oversees the case.
David Prelle Eron, Esq., at Prelle Eron & Bailey, P.A. is the
Debtor's counsel.
E-HOUSE (CHINA): Chapter 15 Case Summary
----------------------------------------
Chapter 15 Debtor: E-House (China) Enterprise Holdings
Limited
Ugland House
PO Box 309
Grand Cayman KY1-1104
Cayman Islands
Business Description: E-House is a comprehensive service
platform for aircraft carrier-level
transactions in China's real estate
industry, serving developers,
intermediaries, asset owners and
C-end users.
Foreign Proceeding: Scheme of Arrangement under section 86 of
the Cayman Islands Companies Act
Chapter 15 Petition Date: October 3, 2022
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 22-11326
Judge: Hon. John P. Mastando III
Foreign Representative: Alexander Lawson
142 Seafarers Way
PO Box 2507
George Town, Grand Cayman KY1-1105
Cayman Islands
Foreign
Representative's
Counsel: Lisa Laukitis, Esq.
SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP
One Manhatan West
New York, NY 10001
Tel: (212) 735-3000
Email: Lisa.Laukitis@skadden.com
- and -
Justin M. Winerman, Esq.
Anthony R. Joseph, Esq.
155 North Wacker Drive
Chicago, Illinois 60606-1720
Tel: (312) 407-0700
Fax: (312) 407-0411
Peter Newman, Esq.
SKADDEN, ARPS, SLATE, MEAGHER
& FLOM (UK) LLP
40 Bank Street
Canary Wharf
London E14 5DS
Tel: +44 20 7519 7000
Fax: +44 20 7519 7070
Estimated Assets: Unknown
Estimated Debt: Unknown
A full-text copy of the Chapter 15 petition is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/ABSVAPI/E-House_China_Enterprise_Holdings__nysbke-22-11326__0001.0.pdf?mcid=tGE4TAMA
ENDO INT'L: 7 Attys. General Object to $94-Mil.Executive Bonuses
----------------------------------------------------------------
Leah Mikulich of Vista Today reports that seven state attorneys
general, including Pennsylvania AG Josh Shapiro, and a federal
bankruptcy overseer appointed by the court, are objecting to the
$94 million paid in pre-bankruptcy bonuses to top executives and
other insiders at Endo International, the Ireland-based
pharmaceutical company with its U.S. headquarters in Malvern,
writes Bob Fernandez for the Philadelphia Inquirer.
According to state attorneys general who filed their objections in
New York, the "excessive" bonuses were doled out in "secret" and
drained the resources of the opioid drug firm for victims of their
addictive pills.
A separate court filing submitted earlier this month by U.S.
Trustee William Harrington noted that with the $94 million paid in
bonuses in the months before the bankruptcy filing, Endo's
restructuring plan only leaves an initial $27.4 million for
individual opioid victims who are not state entities.
Harrington told the court that Endo had "provided virtually no
information, much less sufficient information" that is required to
evaluate these bonus payments.
Bonus recipients include chief executive Blaise Coleman with $11.85
million, chief legal officer Matthew J. Maletta who was paid $3.5
million, and Mark Bradley, chief financial officer, who received
$3.5 million.
About Endo International
Endo International plc (NASDAQ: ENDP) is a specialty harmaceutical
company committed to helping everyone we serve live their best life
through the delivery of quality, life-enhancing therapies. Its
decades of proven success come from passionate team members around
the globe collaborating to bring the best treatments forward.
Together, we boldly transform insights into treatments benefiting
those who need them, when they need them. On the Web:
http://www.endo.com/
On August 16, 2022, Endo International plc and certain of its
subsidiaries initiated voluntary prearranged Chapter 11 proceedings
(Bankr. S.D.N.Y. Lead Case No. 22-22549). The Company's cases are
pending before the Honorable James L. Garrity, Jr. The Company has
put up a Web site dedicated to its restructuring:
http://www.endotomorrow.com/
The Debtors tapped Skadden, Arps, Slate, Meagher & Flom LLP as
legal counsel; PJT Partners LP as investment banker; and Alvarez &
Marsal as financial advisor. Kroll is the claims agent.
Roger Frankel, the legal representative for future claimants in
these Chapter 11 cases, tapped Frankel Wyron LLP and Young Conaway
Stargatt & Taylor, LLP as counsel and Ducera Partners LLC as
investment banker.
ENDO INT'L: Future Claimants' Rep Taps NERA as Consultant
---------------------------------------------------------
Roger Frankel, the legal representative for future claimants in the
Chapter 11 cases of Endo International plc and its affiliates,
seeks approval from the U.S. Bankruptcy Court for the Southern
District of New York to employ NERA Economic Consulting as his
consultant.
The firm's services include:
(a) advising the future claimants' representative with respect
to matters involving present and future personal injury claims
related to opioid, transvaginal mesh, and ranitidine products
against the Debtors;
(b) estimating the number and value of, and providing any
analysis with respect to, present and future personal injury claims
related to opioid, transvaginal mesh, and ranitidine products
against the Debtors;
(c) assisting the future claimants' representative in
negotiations with various parties regarding the Debtors' liability
related to opioid, transvaginal mesh, and ranitidine products;
(d) performing due diligence regarding the Debtors' current,
potential and overall liability related to opioid, transvaginal
mesh, and ranitidine products;
(e) assisting in the prosecution of future claimants'
representative positions, including providing expert reports and
testimony; and
(f) rendering other necessary advisory services.
NERA will be paid at these rates:
Directors $1,500 per hour
Analysts $250 per hour
The firm will also be reimbursed for out-of-pocket expenses
incurred.
Prior to the petition date, the Debtors paid the firm with an
advance retainer of $175,000.
Stephanie Plancich, director at NERA, disclosed in a court filing
that the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Stephanie Plancich
NERA Economic Consulting
1166 Avenue of the Americas
New York, NY 10036
Tel: (212) 345-3000
Fax: (212) 345 4650
Email: stephanie.plancich.com
About Endo International
Endo International plc (NASDAQ: ENDP) is a specialty pharmaceutical
company committed to helping everyone we serve live their best life
through the delivery of quality, life-enhancing therapies. Its
decades of proven success come from passionate team members around
the globe collaborating to bring the best treatments forward.
Together, we boldly transform insights into treatments benefiting
those who need them, when they need them. On the Web:
http://www.endo.com/
On Aug. 16, 2022, Endo International plc and certain of its
subsidiaries initiated voluntary prearranged Chapter 11 proceedings
(Bankr. S.D.N.Y. Lead Case No. 22-22549). The Debtors' cases are
pending before the Honorable James L. Garrity, Jr. The Debtors have
put up a Web site dedicated to its restructuring:
http://www.endotomorrow.com/
The Debtors tapped Skadden, Arps, Slate, Meagher & Flom, LLP and
Togut, Segal & Segal, LLP as legal counsels; PJT Partners, LP as
investment banker; Alvarez & Marsal North America, LLC as financial
advisor; and PricewaterhouseCoopers, LLP as audit and tax services
provider. Kroll Restructuring Administration, LLC is the claims
agent and administrative advisor.
Roger Frankel, the legal representative for future claimants in
these Chapter 11 cases, tapped Frankel Wyron, LLP and Young Conaway
Stargatt & Taylor, LLP as legal counsels; Ducera Partners, LLC as
investment banker; and NERA Economic Consulting as consultant.
ENDO INT'L: Opioid Claimants to Scrutinize $450M Proposal, Liens
----------------------------------------------------------------
The Official Committee of Opioid Claimants appointed in the chapter
11 cases of Endo International, et al., said in court filings they
will be pushing for a larger share of the $450 million opioid
settlement proposed for pharmaceutical maker Endo's Chapter 11
plan.
The Opioid Claimants said in court filings that notwithstanding the
alleged harm that the Debtors have caused to the American
population for much of the last two decades, the Debtors filed the
Chapter 11 cases with an RSA that proposes to sell substantially
all of their assets to their first lien lenders in exchange for a
credit bid -- a chilling outcome ensuring that the Debtors will be
distributing no value to their Opioid Claimants. That being said,
the Stalking Horse Bid -- i.e., the offer from the Debtors'
Consenting
First Lien Creditors -- includes a proposal (the "Opioid Term
Sheet") that would establish three separate opioid claimants'
trusts outside of a chapter 11 plan: one for Public Opioid
Claimants, one for Native American Opioid Claimants, and one for
Private Opioid Claimants. The Public Opioid Trust is to be funded
with $450 million and the Tribal Opioid Trust is to be funded with
$15 million, with each trust (a) to be funded over the next ten 10
years, and (b) to include certain non-monetary provisions that
provide protection for their claimants. Separately, and in
contrast, the Private Opioid Trust would be funded with up to $85
million, no earlier than sometime in 2033, and would not enjoy any
of the non-monetary protections.
The OCC intends to utilize all of the tools at its disposal to
conduct diligence regarding the Opioid Term Sheet to determine (a)
whether it is in the best interests of all Opioid Claimants, and
(b) whether there is a basis to challenge the proposed credit bid.
This includes studying not only everything that would be received
by various parties under the proposal, but also investigating in
detail the value of what would be surrendered.
The Debtors and their lenders, for their part, have already decided
that the only path forward in the Chapter 11 cases is to cram down
the terms of the Stalking Horse Bid and Opioid Term Sheet on all
Opioid Claimants. In furtherance of that objective, the Cash
Collateral Motion seeks to effectively preordain the outcome of
these cases by severely curtailing the OCC's ability to investigate
the validity of the liens that support the credit bid, and grants
the Prepetition Secured Parties other unwarranted protections.
The OCC therefore objects to the Cash Collateral Motion for several
reasons, including the Debtors' proposal to limit the OCC's
challenge period to just 60 days and a $25,000 budget. This is a
plainly insufficient amount of time and resources to investigate
not only the validity, extent, and priority of over $6 billion of
complex, funded debt facilities in a multi-national enterprise, but
also whether any claims exist against the Prepetition Secured
Parties. That investigation is of paramount importance in these
cases given that the alleged validity of the Prepetition Secured
Parties’ liens forms the basis for the credit bid component of
the Stalking
Horse Bid. Curtailing the OCC's investigative rights, months prior
to the April 18, 2023 RSA milestone for entry of a sale order,
would be tantamount to pre-approving the validity of the Stalking
Horse Bid without any opportunity for the OCC to investigate and,
if necessary, bring a challenge, the OCC tells the Court.
About Endo International
Endo International plc (NASDAQ: ENDP) is a specialty
pharmaceutical
company committed to helping everyone we serve live their best life
through the delivery of quality, life-enhancing therapies. Its
decades of proven success come from passionate team members around
the globe collaborating to bring the best treatments forward.
Together, we boldly transform insights into treatments benefiting
those who need them, when they need them. On the Web:
http://www.endo.com/
On August 16, 2022, Endo International plc and certain of its
subsidiaries initiated voluntary prearranged Chapter 11 proceedings
(Bankr. S.D.N.Y. Lead Case No. 22-22549). The Company's cases are
pending before the Honorable James L. Garrity, Jr. The Company has
put up a Web site dedicated to its restructuring:
http://www.endotomorrow.com/
The Debtors tapped Skadden, Arps, Slate, Meagher & Flom LLP as
legal counsel; PJT Partners LP as investment banker; and Alvarez &
Marsal as financial advisor. Kroll is the claims agent.
Roger Frankel, the legal representative for future claimants in
these Chapter 11 cases, tapped Frankel Wyron LLP and Young Conaway
Stargatt & Taylor, LLP as counsel and Ducera Partners LLC as
investment banker.
ENOVATIONAL CORP: Taps Arthur Lander C.P.A. as Accountant
---------------------------------------------------------
Enovational Corp. seeks approval from the U.S. Bankruptcy Court for
the District of Columbia to employ Arthur Lander, C.P.A., P.C. as
its accountant.
The firm's services include:
a. compiling books and records, and preparing and filing all
necessary tax returns on behalf of the estate;
b. advising the trustee of his duties and responsibilities under
the Internal Revenue Code;
c. assessing the estate's financial condition; and
d. other matters that arise in the administration of this estate
in bankruptcy relating to accounting matters.
The hourly rates charged by the firm for its services are as
follows:
Arthur Lander, CPA $510 per hour
Thai Ton $200 per hour
Chris Mueller $200 per hour
Bookkeeping $85 per hour
Arthur Lander, president of Arthur Lander CPA, disclosed in a court
filing that his firm is a "disinterested person" within the meaning
of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Arthur Lander, Esq.
Arthur Lander, C.P.A., P.C.
300 N. Washington St. #104
Alexandria, VA 22314
Phone: (703) 486-0700
Email: law@businesslegalservicesinc.com
About Enovational Corp.
Enovational Corp. is a data-driven web and app development company
based in Washington, D.C.
Enovational sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.D.C. Case No. 22-00055) on March 26,
2022, with $15,169,413 in assets and $6,191,395 in liabilities.
Vlad Enache, chief executive officer, signed the petition.
Judge Elizabeth L. Gunn oversees the case.
Maurice VerStandig, Esq., at the Belmont Firm and Arthur Lander,
C.P.A., P.C. serve as the Debtor's legal counsel and accountant,
respectively.
ERIN INDUSTRIES: Corvette Supplier Files Subchapter V Case
----------------------------------------------------------
Jonathan Lopez of GM Authority reports that a Michigan-based
supplier that produces tube assemblies and transmission components
for the Chevy Corvette has filed for Chapter 11 bankruptcy on
September 20, 2022.
According to a recent report from Crain's Detroit Business, Erin
Industries Inc. recently filed for Subchapter V of Chapter 11
bankruptcy protection. The company experienced a downturn over the
course of the last two years as a result of rising material costs
and supply chain disruptions.
The family-owned company was founded in 1975, and serves as a
supplier for the automotive and aerospace industries, including
components for the Chevy Corvette. According to Erin Industries
owner and President, Steven Atwell, most of the company's customers
offered price increases for steel, but not other inputs like labor
or fuel.
However, the company's profitability reversed most dramatically
following a deal with steel maker Nova Steel USA Inc. The deal was
entered shortly before the pandemic, after which it became
difficult for Erin Industries to procure the parts needed to
fulfill the contract. According to court documents, Nova is the
largest creditor in the case, with $869,865 owed by Erin
Industries.
Erin Industries is primarily a tier-two supplier, with 41 workers
onboard. In addition to supplying parts for the Chevy Corvette and
GM, the company also serves as a supplier for Ford and Stellantis.
According to Atwell, the company will likely survive bankruptcy
reorganization. However, assuming the company does survive, it
will then be forced to contend with the looming rise of electric
vehicles as internal-combustion-powered passenger vehicles are
eventually eliminated.
"We're trying to get into that market like everybody else is, too,"
Atwell told Crain's.
"It means a lot to me that I have people working for me for over 25
years, so we're a family business all the way down," Atwell added.
"I will keep them a place to work. I owe them that."
About Erin Industries
Erin Industries, Inc., is a family-owned business engaged in the
prototyping, production and assembly of tube bending, bracket
fabrication and tube assemblies. Erin serves customers in the
automotive industry, aerospace, defense, amusement industry and
building trades. In the automotive industry, while the Debtor has,
at times, supplied directly to original equipment manufacturers, it
has more commonly acted as a Tier 2 supplier.
Erin Industries filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. E.D. Mich. Case No.
22-47354-tjt) on Sept. 20, 2022. In the petition signed by Steven
Atwell, president, the Debtor disclosed up to $50,000 in assets and
up to $10 million in liabilities.
Mark H. Shapiro has been appointed as Subchapter V trustee.
Max J. Newman, Esq., at Butzel Long, a professional corporation, is
the Debtor's counsel.
FIRST DEFENSE NASAL: Taps Van Horn Law Group as Bankruptcy Counsel
------------------------------------------------------------------
First Defense Nasal Screen Corp. seeks approval from the U.S.
Bankruptcy Court for the Middle District of Florida to employ Van
Horn Law Group, PA as its counsel.
The firm will render these legal services:
(a) advise the Debtor regarding its powers and duties in the
continued management of its business operations;
(b) advise the Debtor regarding its responsibilities in
complying with the U.S. Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the court;
(c) prepare legal papers;
(d) protect the interest of the Debtor in all matters pending
before the court;
(e) represent the Debtor in negotiation with its creditors in
the preparation of a Chapter 11 plan.
The Debtor paid the firm a total retainer of $10,000.
The firm's hourly rates range from $150 to $450 for law clerks,
paralegals and attorneys.
In addition, the firm will seek reimbursement for expenses
incurred.
Chad Van Horn, Esq., an attorney at Van Horn Law Group, disclosed
in a court filing that his firm is a "disinterested person" as that
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Chad Van Horn, Esq.
Van Horn Law Group, PA
330 North Andrews Avenue, Suite 450
Fort Lauderdale, FL 33301-1012
Telephone: (954) 637-0000
Email: chad@cvhlawgroup.com
About First Defense Nasal Screen Corp.
First Defense Nasal Screen Corp. is the developer of the first ever
non-inserted, hypo-allergenic, self-adhering nasal filter. The
company is based in New Port Richey, Fla.
First Defense Nasal Screen Corp filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
22-01196) on March 25, 2022, disclosing $6,905,214 in total assets
and $6,449,937 in total liabilities. Amy Denton Harris serves as
Subchapter V trustee.
Buddy D. Ford, Esq., at Buddy D. Ford, PA is the Debtor's legal
counsel.
Chad Van Horn, Esq., at Van Horn Law Group, PA serves as the
Debtor's counsel.
FIRST GUARANTY: Reaches Deal With Creditors on Chapter 11 Plan
--------------------------------------------------------------
Alex Wolf of Bloomberg Law reports that First Guaranty Mortgage
Corp. reached a deal with an unsecured creditors' committee that
removes the group's opposition to the mortgage lender's Chapter 11
plan and litigation releases for owner Pacific Investment
Management Co.
The deal, which is not yet documented, allows First Guaranty to
inch closer toward successfully liquidating under its own terms.,
The proposal was described in brief detail during a hearing
Thursday in the US Bankruptcy Court for the District of Delaware.
Under the proposed agreement, general unsecured creditors would
share in a split of proceeds from the liquidation of First Guaranty
with an indirect subsidiary of Pimco.
About First Guaranty Mortgage
First Guaranty Mortgage Corporation -- https://www.fgmc.com/ -- was
a full service, non-bank mortgage lender, offering a full suite of
residential mortgage options tailored to borrowers' different
financial situations. It was one of the leading independent
mortgage companies in the United States that originated residential
mortgages through a national platform.
Just before the bankruptcy filing, as a result of an extreme and
unanticipated liquidity crisis and resultant inability to obtain
additional capital, FGMC ceased all of its mortgage loan
origination activity and separated nearly 80% of its workforce.
FGMC and an affiliate commenced Chapter 11 Cases to evaluate their
options, accommodate their customers, and maximize and preserve
value for all stakeholders.
First Guaranty Mortgage Corporation sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 22-10584)
on June 30, 2022. Affiliate Maverick II Holdings, LLC also sought
bankruptcy protection (Bankr. D. Del. Case No. 22-10583). In the
petition signed by Aaron Samples, chief executive officer, FGMC
disclosed up to $1 billion in both assets and liabilities.
Judge Craig T. Goldblatt oversees the cases.
Dentons US LLP and Pachulski Stang Ziehl, and Jones LLP represent
the Debtors as counsel. FTI Consulting, Inc. and Strategic
Mortgage Finance Group, LLC, serve as chief restructuring officer
(CRO) provider and investment banker, respectively. Kurtzman
Carson Consultants, LLC, is the claims and notice agent.
LVS II SPE XXXIV LLC, as Cash Flow DIP Lender, is represented by
lawyers at Greenberg Traurig, LLP. The Cash Flow DIP Lender is an
indirect subsidiary of a private investment managed by Pacific
Investment Management Company LLC. B2 FIE IV LLC, an affiliate of
the DIP Lender, owns 100% of the equity interests of FGMC.
Barclays Bank PLC serves as DIP Repo Agent and DIP Repo Purchaser
while Barclays Capital Inc. serves as DIP MSFTA Counterparty. They
are represented by Hunton Andrews Kurth LLP and Potter Anderson &
Corroon LLP.
FRASIER CONTRACTING: Taps Buddy D. Ford as Bankruptcy Counsel
-------------------------------------------------------------
Frasier Contracting Inc. seeks approval from the U.S. Bankruptcy
Court for the Middle District of Florida to hire Buddy D. Ford,
P.A. as its legal counsel.
The firm will render these legal services:
(a) analyze the financial situation of the Debtor;
(b) advise the Debtor regarding its powers and duties in the
continued operation of its business and management of its
property;
(c) prepare and file the Debtor's schedules of assets and
liabilities, statement of affairs, and other documents required by
the court;
(d) represent the Debtor at the Section 341 creditors'
meeting;
(e) advise the Debtor with respect to its responsibilities in
complying with the United States Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the court;
(f) prepare legal papers;
(g) protect the interest of the Debtor in all matters pending
before the court;
(h) represent the Debtor in negotiation with its creditors in
the preparation of a Chapter 11 plan; and
(i) perform all other necessary legal services for the
Debtor.
The hourly rates of the firm's counsel and staff are as follows:
Buddy D. Ford, Esq. $450
Senior Associate Attorneys $400
Junior Associate Attorneys $350
Senior Paralegal Services $150
Junior Paralegal Services $100
In addition, the firm will seek reimbursement for expenses
incurred.
The Debtor paid the firm an advance fee of $15,000.
Buddy Ford, Esq., disclosed in a court filing that his firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Buddy D. Ford, Esq.
Jonathan A. Semach, Esq.
Heather M. Reel, Esq.
Buddy D. Ford, P.A.
9301 West Hillsborough Avenue
Tampa, FL 33615-3008
Telephone: (813) 877-4669
Email: Buddy@tampaesq.com
Jonathan@tampaesq.com
Heather@tampaesq.com
About Frasier Contracting Inc.
Frasier Contracting Inc. -- https://www.frasiercontracting.com --
is a Florida State Certified Class A General Contracting company.
Frasier Contracting filed a petition for relief under Subchapter V
of Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
22-03776) on Sept. 15, 2022, with between $1 million and $10
million in both assets and liabilities. Amy Denton Mayer has been
appointed as Subchapter V trustee.
Judge Catherine Peek Mcewen oversees the case.
Buddy D. Ford, P.A. serves as the Debtor's legal counsel.
FROZEN FOODS: Gets Approval to Hire Grassi & Co as Accountant
-------------------------------------------------------------
Frozen Foods Partners, LLC received approval from the U.S.
Bankruptcy Court for the Southern District of New York to hire
Grassi & Co. Certified Public Accountants P.C. as its accountants.
The Debtor seeks Grassi's assistance in preparing tax returns,
consulting with the Debtor regarding tax issues, as needed and
other accounting advice and services as needed related to the
bankruptcy case.
Grassi's usual hourly rates are:
Partners, Managers/Supervisors $350
Staff Accountants/ Bookkeepers $210
Support Staff $120
Gergory Zoraian, CPA, a partner at Grassi & Co., attests that his
firm is a "disinterested person" within the meaning of sections
101(14) and 327(a) of the Bankruptcy Code as such term is
understood by the Debtor.
The advisor can be reached through:
Gergory Zoraian, CPA
Grassi & Co.
50 Jericho Quadrangle, Ste. 200
Jericho, NY 11753, U.S.
Phone: 516-256-3500
Fax: 516-256-3510
Email: gzoraian@grassicpas.com
About Frozen Foods Partners
Frozen Foods Partners, LLC, a New York-based wholesaler of grocery
and related products, filed a petition for Chapter 11 protection
(Bankr. S.D.N.Y. Case No. 21-11897) on Nov. 1, 2021, listing as
much as $10 million in both assets and liabilities. Jeffrey
Lichtenstein, chief executive officer, signed the petition.
Judge Martin Glenn oversees the case.
Adam P. Wofse, Esq., at LaMonica Herbst and Maniscalco, LLP, is the
Debtor's legal counsel.
GANNETT CO: Fitch Alters Outlook on 'B' LongTerm IDR to Negative
----------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Ratings
(IDRs) of Gannett Co., Inc. and Gannett Holdings LLC at 'B'. It has
also revised the Rating Outlook to Negative from Stable.
The change in the Outlook to Negative is due to lower than expected
FY21 and 1H2022 operating performance, driven by macroeconomic
headwinds and related operational challenges, which drove
Fitch-calculated leverage just outside its negative sensitivities.
Fitch expects leverage to increase slightly then reverse over the
next 18 to 24 months due to operating improvements and debt
repayment.
KEY RATING DRIVERS
Leverage Trend: Gannett's Fitch calculated leverage was 3.9x as of
June 30, 2022. Although Fitch expects it to peak in the low 4.0x,
it is expected to return within sensitivities within 18 to 24
months. The leverage increase was driven by print advertising and
circulation declines and cost inflation in FY2021 and into 1H2022
that exceeded Fitch's expectations. Fitch expects the declines will
continue at roughly their current level and that inflation will
moderate into 2023.
Fitch takes significant comfort from Gannett's ongoing debt
repayment, recognizing the company has repaid more than $525
million of debt since peaking at $1.8 billion peak when it was
acquired by New Media Investment Group, Inc. (NMIG) in 2019. The
company is expected to continue repaying debt given significant
required amortization and required excess cash and asset sale
proceeds repayments.
EBITDA Margins to Improve: Fitch expects Gannett's EBITDA margins
to improve by approximately 150bps through 2024 due to improved
operating leverage from digital marketing solutions growth and
targeted cost savings of between $200 million to $240 million
recently disclosed by the company. Fitch believes the cost
synergies are largely attainable as the company continues to focus
on rightsizing its legacy print business, and its rating case
assumes more than 90% expense realization success. Neither Fitch
nor the company included any revenue synergies in their
calculations.
Secular Headwinds: Gannett will continue facing negative secular
headwinds in print circulation and readership driven by increasing
digital news consumption and audience fragmentation, which will be
a drag on total advertising revenues. While these headwinds are
pandemic-related, it remains too early to determine if the
accelerated declines will continue, which could preclude Gannett
from returning to the pre-pandemic decline trajectory of
high-single digit to low-teens.
Advertising Environment: Fitch is modeling a U.S. advertising
recession starting in late 2022 and continuing into 2023, leading
to low to midsingle-digit revenue declines, followed by a recovery
into 2024 in line with historical trends. While Fitch expects
Gannett to see continued positive momentum across its digital
platforms, it does remain concerned about legacy media's long-term
growth prospects and expect print to continue to decline.
Digital Expected to Drive Growth: Gannett's steady transition into
the digital sphere via its digital marketing solutions and
advertising segments are viewed as a credit positive as it counters
the structural decline of its traditional print business. Fitch
expects Gannett's digital revenue contribution to rise above 40%
over the rating horizon, from 35% for LTM ended June 30, 2022 and
10% in FY2017. Gannett's conversion of several local papers to
digital subscriptions have been promising and the company has
experienced strong digital subscriber growth of 35% during 1H22.
Gannett's digital marketing services (DMS) offers the best growth
potential given the large base of untapped SMBs despite an
industry-wide elimination of digital marketing incentives. Prior to
the pandemic, Gannett saw a significant increase in the number of
annual events held and saw events return to prior growth trajectory
in 2022.
Gannett Media Revenue to Decline: Fitch expects Gannett's Media
segment to experience revenue declines of around 10% by financial
year end (Dec. 31 2022; down 6% yoy during 1H22). This is primarily
due to softer advertising market conditions, which have exacerbated
some of the structural challenges in its traditional print
business. Fitch does not expect the prevailing market conditions to
continue, therefore the agency projects an eventual recovery in
2023, as businesses will look to increase marketing expenditures as
a means to capture economic recovery.
Diverse Portfolio: As of Dec. 31, 2021, Gannett is the largest U.S.
newspaper publisher, serving more than 600 communities with more
than 260 local and national daily newspapers, including USA Today,
302 weekly newspapers, 383 locally-focused websites, and 74
business publications and also publishes 143 daily and weekly
newspapers and 32 magazines in the U.K. and related platforms. As
of June 30, 2022, it had approximately 3.5 million total paid
subscribers, including 1.4 million digital only subscribers and had
approximately 165 million unique monthly visitors.
Parent Subsidiary Linkage: Fitch links and synchronizes the IDRs of
Gannett and Gannett Holdings as they operate as a single enterprise
with strong legal and operational ties. Fitch believes the
cross-guarantees provided by Gannett and Gannett Holdings solidify
the strong linkage between the entities.
DERIVATION SUMMARY
Gannett is a multi-media company consisting of publishing and
digital media solutions segments in the U.S. and U.K. and Fitch
does not rate any direct comps. Two indirect comps with similar
revenue growth trajectories are Verizon Media Group (BB-/Stable)
and Frontier Communications Parent, Inc. (BB-/Stable), both of
which are rated higher due to lower leverage. While a third
indirect comp, Windstream Services LLC (B/Stable), also has a
similar revenue growth trajectory, its lower leverage is offset by
a limited capacity to mitigate execution risks.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within the Rating Case for the Issuer
- Revenue decline of approximately 7% in 2022 driven by
macroeconomic weakness leading to lower advertising spend and 2% in
2023 due to continuing macroeconomic overhang. Thereafter, revenue
grows by low single digits as DMS growth more than offsets
continued print declines;
- EBITDA margins to contract to 10.7% in 2022 due to a lower top
line and then recover due to increasing operating leverage at DMS
and renewed cost cutting efforts, reaching 12.7% by 2025;
- Capex intensity at 1.3% of revenue;
- Positive FCF generation over the rating horizon;
- Asset sales totaling $60 million in 2022, with proceeds used to
pay down debt;
- No share repurchases or dividend payments over 2022 and 2023.
KEY RECOVERY RATING ASSUMPTIONS
The recovery analysis assumes Gannett would be considered a going
concern in bankruptcy and would be reorganized rather than
liquidated and assumes a 10% administrative claim.
Going-Concern (GC) Approach
Gannett's recovery analysis assumes the company is unable to grow
its digital subscriptions, advertising, or media solutions business
segments sufficiently enough to offset accelerated print subscriber
and advertising declines. As such, the post-reorganization going
concern EBITDA is $338 million, which represents an approximate 20%
decline from financial year ended Dec. 31, 2021, Fitch-calculated
EBITDA of $423 million.
Fitch assumes Gannett will receive a going-concern recovery EV
multiple of 4.5x EBITDA based on the following factors. In
September 2020, The McClatchy Company was acquired out of
bankruptcy for $312 million, or an estimated 4.2x 2021 adjusted
EBITDA (based on McClatchy's financial projections provided in
their February 2020 disclosure statement as part of their initial
proposed equitization reorganization). Fitch's July 2021 TMT
bankruptcy case study exit multiples for peer companies ranged from
4.2x-7.8x, with an average of 6.3x. While the 4.5x multiple is
below the case study average exit multiple, the bankruptcies
occurred between 2009 and 2011 and the newspaper industry has only
seen continued erosion in print circulation and advertising that
digital subscription is not yet fully replacing.
Additional factors include NMIG acquisitions of several news, media
and digital marketing providers for an average 4.1x multiple and
Gannett in November 2019 for $1.34 billion, or 4.2x LTM ended June
30, 2019 EBITDA. Similar public companies trade at EBITDA multiples
ranging from the mid-single digits to low teens, with the higher
end multiple driven by a large newspaper with national distribution
and significant industry-leading digital subscriber success.
Fitch estimates full recovery prospects for the first lien senior
secured term loan and rates it 'BB'/'RR1', or three notches above
Gannett's 'B' IDR.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- The Outlook will be resolved once Fitch-calculated leverage
declines below 3.5x;
- Successful execution of strategic operating transformation
leading to sustainable total digital revenue growth that
meaningfully offsets the decline in legacy revenues;
- Consistent EBITDA and FCF margin improvement;
- Fitch-calculated leverage (total debt with equity
credit/operating EBITDA) declines below 2.0x on a sustainable
basis.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Digital revenue growth slows or declines and is insufficient to
meaningfully offset print subscriber declines;
- Fitch-calculated leverage exceeds 3.5x without a creditable plan
to return leverage within sensitivities.
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: As of June 30, 2022, the company had $87
million in cash and cash equivalents. Because the company has
consistently generated FCF, and is expected to grow annual FCF over
the rating horizon due to the consistent reduction in annual cash
interest expense, it does not have a revolving credit.
Maturities are manageable as the current first lien term loan
matures in October 2026 ($485 million outstanding at June 30,
2022), the secured bonds mature in November 2026 ($400 million) and
the second lien convertible notes mature in December 2027 ($85
million). The term loan also amortizes at 10% annually, stepping
down to 5% when first lien net leverage is 1.0x below closing
leverage and includes mandatory prepayments from excess cash over
$100 million as of each Dec. 31 and asset sale proceeds.
ISSUER PROFILE
Gannett is the largest U.S. newspaper publisher, serving over 600
communities with more than 260 daily newspapers, including USA
Today, 302 weekly newspapers, 383 websites, 74 business
publications and 143 daily and weekly newspapers and 32 magazines
in the U.K.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
Entity Rating Recovery Prior
------ ------ -------- -----
Gannett Co., Inc. LT IDR B Affirmed B
Gannett Holdings LLC LT IDR B Affirmed B
senior secured LT BB Affirmed RR1 BB
GREAT PANTHER: Court Converts NOI Proceedings to CCAA Proceedings
-----------------------------------------------------------------
Great Panther Mining Limited disclosed that on October 4, 2022, the
Supreme Court of British Columbia pronounced an initial order (the
"Initial Order") converting the Company's restructuring proceedings
under the Bankruptcy and Insolvency Act (Canada) (the "NOI
Proceedings") to the more flexible restructuring proceedings under
the Companies' Creditors Arrangement Act (Canada) ("CCAA"). Similar
to the stay of proceedings granted in the NOI Proceedings, the
Initial Order prevents creditors from enforcing against the Company
up to and including October 14, 2022 (the "Stay"), on which date
the Company will return before the Court to seek, among other
things, an extension to the Stay. The Initial Order also approved
an agreement between the Company and Asahi Refining Canada Ltd.
("Asahi") pursuant to which Asahi will continue to provide refining
services to the Company (the "Asahi Agreement"). The Company's
management is of the view that the Asahi Agreement will avoid the
potential disruption of seeking a new refiner and will assist in
maintaining the timely sale of gold from its indirectly owned mine,
increasing the funds available to support the Company and its
operations during these proceedings.
About Great Panther
Great Panther Mining (TSX: GPR) (OTCPK: GPLDK) is a precious metals
producer focused on the operation of the Tucano Gold Mine in Brazil
where the Company controls a land package covering nearly 200,000
hectares in the prospective Vila Nova Greenstone belt.
GREENWAY PARK: Nautilus Claim for Fee Award Denied
--------------------------------------------------
Bankruptcy Judge Sarah A. Hall entered an order disallowing Claim
No. 9-1 filed by Nautilus Insurance Co.'s claim for the Fee Award
as a postpetition claim, as well as denying Nautilus' request for
administrative expenses.
Prior to filing its bankruptcy case, Greenway Park, LLC, made a
claim on its insurance carrier, Nautilus, seeking insurance
coverage for defense of a lawsuit with certain property developers.
However, Nautilus denied the insurance claim.
Postpetition, the Trustee filed a lawsuit against Nautilus in the
District Court of Cleveland County, Oklahoma, Case No. CJ-16-754,
for breach of contract and bad faith based on its denial of the
Debtor's claim. Nautilus prevailed and was awarded attorney fees
and costs in the amount of $369,745 based on Oklahoma fee-shifting
statutes. In its Proof of Claim No. 9-1, Nautilus is seeking
payment of its Fee Award as either an allowable post-petition claim
or an administrative expense.
According to Judge Hall, though Nautilus is correct in asserting
that the Fee Award is a postpetition claim, however, it is not
entitled to an administrative priority as the defense of the State
Court Action provided no benefit to the estate, and no exception to
the benefit requirement applies which would allow payment of the
Fee Award as an administrative expense.
Judge Hall explained that an entity holding only a postpetition
claim (even an administrative one) does not fall within the
Bankruptcy Code's definition of a creditor. Generally, only
creditors are entitled to file proofs of claims. Since Nautilus
holds only a postpetition claim, it cannot be a creditor, it cannot
file a proof of claim, and, even if it could file one, it cannot
have an 'allowed' claim as of the Petition Date.
Thus, Nautilus may receive payment on its Fee Award only if it is
entitled to an administrative expense. To be deemed an
administrative expense, the expense must: "(1) arise from a
transaction with the estate; and (2) directly and substantially
benefit the estate." Though the Fee Award arises from Nautilus'
transaction with the estate, however, it represents Nautilus'
defensive efforts against the bankruptcy estate. Hence, Nautilus
provided no benefit to the estate, much less a direct and
substantial benefit. Accordingly, Nautilus' fee award was not
allowed as an administrative expense.
A full-text copy of the Order dated Sept. 29, 2022, is available at
https://tinyurl.com/mue24tks from Leagle.com.
About Greenway Park LLC
Greenway Park LLC has filed voluntary petition seeking relief under
Chapter 11 of the Bankruptcy Code (Bankr. W.D. Okla. Case No.
15-13067) on Aug. 12, 2015. The petition was signed by Phillip R
Parker, managing member. At the time of filing, Greenway Park has
estimated up to $10,000 in assets and $1 million to $10 million in
liabilities. Timothy Kline, Esq. at PHILLIPS MURRAH PC, served as
counsel to the Debtor.
On Jan. 20, 2016, the Court entered its Order Granting Motion to
Convert Case to Chapter 7, converting the case to a chapter 7
liquidation.
The chapter 7 trustee:
Kevin M. Coffey
405-235-1497
kevin@harrisandcoffey.com
HANSABEN INVESTMENTS: Wins Cash Collateral Access Thru Dec 31
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of California
authorized Hansaben Investments, LLC to use cash collateral on an
interim basis in accordance with the budget, with a 10% variance,
and provide adequate protection to secured creditor Poppy Bank and
the United States Small Business Administration through December
31, 2022.
As adequate protection, the Secured Creditors will receive a lien
and security interest consistent with the terms of their respective
loan documents and security agreements in all of the
Debtor-in-Possession's assets acquired on or after the Petition
Date.
As further adequate protection, the Debtor is authorized to make
payments to Poppy Bank in the amount of $36,000 per month through
December 31, with payments commencing October 29, and all
subsequent payments due on or before the 29th day of the month
thereafter until December 29.
Poppy Bank expressly reserves all rights on future adequate
protection from January 1, 2023 on.
All post-petition fees owed by the Debtor to its franchisor La
Quinta Franchising LLC, a Nevada limited liability company,
pursuant to a franchise agreement between La Quinta Franchising
LLC, as licensor, and Debtor, as licensee, will be paid in full on
a monthly basis and in the ordinary course, and will not be limited
by the Budget.
A further hearing on the matter is scheduled for December 1 at
10:30 a via Zoom.
A copy of the order and the Debtor's budget is available at
https://bit.ly/3C5EEJG from PacerMonitor.com.
The budget provides for total cash disbursements, on a monthly
basis, as follows:
$136,310 for October 2022;
$146,397 for November 2022; and
$124,558 for December 2022.
About Hansaben Investments, LLC
Hansaben Investments, LLC owns a land and building located at 316
Pittman Road, Fairfield, CA having a fair market value of $9.85
million.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Cal. Case No. 22-30258) on May 25,
2022. In the petition filed by Hitesh Patel, manager, the Debtor
disclosed $10,030,061 in assets and $8,330,389 in liabilities.
Judge Dennis Montali oversees the case.
Thomas Willoughby, Esq., at Felderstein Fitzgerald Willoughby
Pascuzzi Rios LLP, is the Debtor's counsel.
HOME DEALS OF MAINE: Raychards Buying Buxton Property for $235K
---------------------------------------------------------------
Home Deals of Maine, LLC, asks the U.S. Bankruptcy Court for the
District of Maine to approve the sale of the real property located
at 8 Church Hill Road, in Buxton, County of York, Maine, described
in a deed recorded in York County Registry of Deeds Book 17456,
Page 756, to Torry and Marc Raychard for $235,000.
The Debtor has filed concurrently with the Motion a notice of
intended sale with reference to said real property to be sold.
The Buyers entered into a pre-petition Contract for a Deed with the
Debtor (Exhibit A).
The plan file with the Court on Jan. 4, 2022 indicates the Debtor's
rejection of the pre-petition Contract for a Deed with the Buyers.
On June 9, 2022, the Buyers initiated an adversary proceeding
laying out their legal theories as to why the debtor could not
reject the contract but must instead abide by the terms of the
Contract for a Deed.
After accounting for the pre-petition payments made and
post-petition payments due, the terms of the Contract for a Deed
would require the Buyers pay approximately $223,000 if the sale
were to be completed by the end of September 2022.
The Buyers contend that they proffered full payment of the balance
of the purchase price and that the Debtor wrongfully rejected that
proffer no later than May 20, 2022, at which time the payoff was
$216,232.22 and that they should not have to pay more than
that amount.
The Buyers and the Debtor wish to resolve the pending adversary
proceeding and allow the Buyers to purchase the property that has
been their home. To that end, the parties have agreed to a
purchase price of $235,000.
The Debtor believes this sale price is beneficial to the estate as
it is for more than the terms of the original Contract for a Deed
and will eliminate additional cost, time and risk related to the
pending adversary proceeding.
The Property is subject to a first priority mortgage held by U.S
Bank, which secures a claim under a promissory note as evidenced by
claim 5 filed in the matter. It is subject to a second priority
mortgage held by Kenobi, LLC, which secures a claim under a
promissory note that the debtor and Kenobi, LLC have negotiated an
agreed to treatment of the claim that will be reflected in a
modified plan.
The sale proceeds, after payment of ordinary and customary closing
expenses and costs, will be held in escrow by the Debtor's counsel
pending further Order of the Court. To the extent that any party
has a validly perfected lien in the property that is to be sold,
such liens will attach to the remaining proceeds.
The Debtor believes that the proposed sale is beneficial to the
estate as it will resolve the pending Adversary Proceeding No.
22-1003.
Pursuant to Local Rule of Bankruptcy Procedure for the District of
Maine 9013-1(b), the Debtor, through counsel provided the United
States Trustee, Subchapter V Trustee, the counsel for buyer and
counsel for US Bank with an electronic copy of the Motion, proposed
order and Notice of Intent to Sell. As of the filing of the
Motion, the counsel for Buyers expressed his consent, however, the
remaining parties' position regarding the relief requested is
unknown.
The Purchasers:
Torry and Marc Raychard
40 Hanscomb School Road
Limington, ME 04049
A copy of the Exhibit A is available for free at
https://tinyurl.com/mvwf4yht from PacerMonitor.com free of charge.
About Home Deals of Maine
Home Deals of Maine, LLC owns 14 rental properties in Maine, with
a
total current value of $2.7 million. The company is based in
Waterville, Maine.
Home Deals of Maine filed a petition for Chapter 11 protection
(Bankr. D. Maine Case No. 21-10267) on Oct. 6, 2021, listing
$3,147,975 in assets and $1,650,258 in liabilities. Jo A.
Roderick,
sole member, signed the petition.
Judge Peter G. Cary oversees the case.
The Debtor tapped James F. Molleur, Esq., at Molleur Law Office as
bankruptcy counsel, and Thomas Cox, Esq., a practicing attorney in
Portland, Maine, as special counsel.
HOUSE OF CHANGE: Hires Weiss Law Group, LLC as Legal Counsel
------------------------------------------------------------
House of Change, Inc. seeks approval from the U.S. Bankruptcy Court
for the District of Maryland to employ The Weiss Law Group, LLC as
its legal counsel.
The Debtor needs the firm's legal assistance to:
(a) file the required schedules, statements and reports;
(b) settle negotiations;
(c) administer the bankruptcy estate;
(d) file necessary motions;
(e) defend the Debtor in any contested matters or adversary
proceedings in this court; and
(f) seek approval of the disclosure statement and reorganization
plan.
The firm will be paid an hourly fee of $595 and will be reimbursed
for out-of-pocket expenses incurred.
Brett Weiss, Esq., a partner at The Weiss Law Group, disclosed in a
court filing that his firm is a "disinterested person" as that term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Brett Weiss, Esq.
The Weiss Law Group, LLC
8843 Greenbelt Road, Suite 299
Greenbelt, MD 20770
Telephone: (301) 924-4400
Facsimile: (240) 627-4186
Email: brett@BankruptcyLawMaryland.com
About House of Change Inc.
House of Change, Inc. filed a Chapter 11 bankruptcy petition
(Bankr. D. Md. Case No. 22-15339) on Sept. 28, 2022, with up to $1
million in both assets and liabilities. Judge Nancy V. Alquist
oversees the case.
Brett Weiss, Esq., at The Weiss Law Group, LLC is the Debtor's
bankruptcy counsel.
IKON WEAPONS: Gets OK to Hire Essex Richards as Legal Counsel
-------------------------------------------------------------
Ikon Weapons, LLC received court approval to employ Essex Richards,
P.A. to serve as legal counsel in its Chapter 11 case.
The firm's services include:
(a) providing legal advice concerning the Debtor's
responsibilities and the continued management of its business;
(b) negotiating, preparing, and pursuing confirmation of a
Chapter 11 plan and approval of disclosure statement, and all
related reorganization agreements or documents;
(c) preparing legal papers;
(d) appearing before the bankruptcy court;
(e) prosecuting and defending the Debtor in all adversary
proceedings related to its bankruptcy case; and
(f) performing all other necessary legal services.
The firm will be paid at these rates:
John C. Woodman, Esq. $350 per hour
David R. DiMatteo, Esq. $275 per hour
Paralegal $135 per hour
Staff $65 per hour
The retainer is $15,000.
John Woodman, Esq., a member of Essex Richards, 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:
John C. Woodman, Esq.
Essex Richards, P.A.
1701 South Boulevard
Charlotte, NC 28203
Tel.: (704) 337-4300
Email: jwoodman@essexrichards.com
About Ikon Weapons
Ikon Weapons, LLC -- https://www.ikonweapons.com/ -- is a small
business speicalizing in the repair and customization of modern
firearms.
Ikon Weapons sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D.N.C. Case No. 22-30424) on Sept. 2,
2022, with between $1 million and $10 million in both assets and
liabilities. On Oct. 3, 2022, the case was transferred to the U.S.
Bankruptcy Court for the Middle District of North Carolina (Bankr.
M.D.N.C. Case No. 22-10507).
Judge Benjamin A. Kahn oversees the case.
The Debtor is represented by John C. Woodman, Esq., at Essex
Richards, P.A.
INN S.F. ENTERPRISE: Taps Law Offices of Stuppi & Stuppi as Counsel
-------------------------------------------------------------------
Inn S.F. Enterprise, Inc. received approval from the U.S.
Bankruptcy Court for the Northern District of California to employ
the Law Offices of Stuppi & Stuppi as counsel.
The firm's services include:
(a) preparing the Debtor's statement of financial affairs and
schedule of assets and liabilities;
(b) assisting the Debtor with respect to compliance with the
requirements of the Office of the United States Trustee;
(c) advising the Debtor regarding matters of bankruptcy law;
(d) representing the Debtor in any proceedings or hearings in
the bankruptcy court or any other courts;
(e) conducting examinations of witnesses, claimants or adverse
parties and preparing reports, accounts, and pleadings;
(f) advising the Debtor concerning the requirements of the
Bankruptcy Code and applicable rules;
(g) assisting the Debtor in the formulation, negotiation,
confirmation and implementation of a Chapter 11 plan of
reorganization and any sale or auction of its assets; and
(h) performing such other services as the Debtor may require in
connection with its Chapter 11 case.
Sarah Stuppi, Esq., the firm's attorney responsible for this case,
will be billed at her hourly rate of $425.
The Law Offices of Stuppi & Stuppi received a retainer of $31,738
prior to the petition date and will receive reimbursement for
out-of-pocket expenses incurred.
Sarah Stuppl, Esq., a partner at the Law Offices of Stuppi &
Stuppi, disclosed in a court filing that her firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Sarah M. Stuppi, Esq.
Law Offices of Stuppi & Stuppi
1630 North Main Street, Suite 332
Walnut Creek, CA 94596
Tel: (415) 786-4365
Fax: (925) 287-8113
Email: Sarah@stuppilaw.com
About Inn S.F. Enterprise
Inn S.F. Enterprise, Inc., a company in San Francisco, Calif, filed
its voluntary petition for Chapter 11 protection (Bankr. N.D.
Calif. Case No. 22-30477) on Sept. 14, 2022, with up to $500,000 in
assets and up to $10 million in liabilities. Martin A. Neely,
president of Inn S.F. Enterprise, signed the petition.
Judge Dennis Montali oversees the case.
Sarah M. Stuppi, Esq., at the Law Offices of Stuppi & Stuppi serves
as the Debtor's legal counsel.
INNOVASONIC INC: Seeks Chapter 7 Bankruptcy Protection
------------------------------------------------------
BayAreaInno reports that a 6-year-old Bay Area startup developing
self-cleaning glass technology, InnovaSonic, has filed for
liquidation.
Based in Dublin, InnovaSonic voluntarily filed for Chapter 7
bankruptcy protections on Tuesday, September 27, 2022, court
documents show.
The company — founded in 2016 by CEO Boris Kobrin, Joseph Geddes
and Julian Zegelman, according to PitchBook — listed its total
liabilities at $833,750 spread across 26 creditors and its total
assets at less than $50,000.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
November 4, 2022 at 9:00 a.m. via Tele/Videoconference.
About InnovaSonic Inc.
InnovaSonic Inc. is a self-cleaning glass startup in Dublin,
California.
InnovaSonic Inc. sought protection under Chapter 7 of the U.S.
Bankruptcy Code (Bankr. N.D. Cal. Case No. 22-40936) on Sept. 27,
2022. In its petition, the Debtor reported total liabilities at
$833,750 spread across 26 creditors and its total assets at less
than $50,000.
The case is overseen by Honorable Bankruptcy Judge William J
Lafferty.
The Debtor is represented by Gregory A. Rougeau of Brunetti Rougeau
LLP.
Sarah L. Little is the appointed Trustee.
IVEDIX INC: Rajesh Kutty Buying Account Receivable for $130K
------------------------------------------------------------
IVEDiX, Inc., asks the U.S. Bankruptcy Court for the Western
District of New York to authorize the sale of a certain account
receivable to Rajesh Kutty for $130,000.
On Feb. 8, 2022, iVEDiX filed its Second Amended Plan of
Reorganization for Small Business Debtor Under Chapter 11. On March
29, 2022, Martin Glavin, a creditor in this Chapter 11 Case, filed
an Objection to the Debtor's Plan.
After extensive settlement discussions and a mediation session
mediated by the Subchapter V Trustee, the Debtor and Glavin entered
into the Stipulated Order Settling Chapter 11 Plan Objection, which
was so ordered by the Court on Aug. 2, 2022.
The Stipulation requires, among other things, that the Debtor pay
Glavin $175,000, paid as follows: (i) $50,000 on or before the
effective date of the Plan; (ii) $50,000 on or before Dec. 31,
2022; (iii)$50,000 on or before the first anniversary of the
effective date of the Plan; and (iv) $25,000 on or before Dec. 31,
2023. In exchange, Glavin agreed, among other things, to withdraw
the Objection and support the Plan.
As the Debtor informed the Court in its response to the Objection,
one of its liquidity challenges is the unpredictability of the
timing of payment of significant accounts receivable. To
facilitate payment of the initial Settlement Sum, and to provide
additional liquidity to carry out the Plan provisions, the Debtor
respectfully requests that the Court authorizes it to sell its
right to payment due under the invoice ("Account Receivable")
described in Exhibit A.
The amount due to the Debtor under the Account Receivable is
$130,000, but that amount does not become due until Oct. 1, 2022
and it is customary in the Debtor's ordinary course of business to
not receive payment on invoices similar to the Account Receivable
until 60 to 90 days after the due date.
Subject to the Court's approval, the Debtor has agreed to sell, and
Mr. Kutty has agreed to buy, including assuming all risk of
non-payment, the Account Receivable for its full value of $130,000.
Based on the foregoing, the sale of the Account Receivable is
justified by sound business reasons and in the best interests of
the Debtor and its estate. Accordingly, pursuant to section 363(b)
of the Bankruptcy Code, the Debtor requests approval of the sale of
the Account Receivable as set forth.
A copy of the Exhibit A is available for free at
https://tinyurl.com/2h8y8jfe from PacerMonitor.com free of charge.
About IVEDiX, Inc.
IVEDiX, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D.N.Y. Case No. 21-20453) on July 23,
2021. In the petition signed by Rajesh Kutty, chief executive
officer, the Debtor disclosed up to $1 million in assets and up to
$10 million in liabilities.
Judge Paul R. Warren oversees the case.
Curtis A. Johnson, Esq., at Bond, Schoeneck & King, PLLC is the
Debtor's counsel.
The U.S. Small Business Administration, as prepetition secured
lender, is represented by Kevin D. Robinson, Esq., of the United
States Attorney's Office.
JUMBA LLC: Proposes to Sell 557 Acres of Land in Johnson County
---------------------------------------------------------------
The Jumba LLC asks the U.S. Bankruptcy Court for the Northern
District of Texas to authorize the sale of approximately 556.81
acres in Johnson County, Texas.
The Debtor owns raw land in Parker, Jack and Johnson Counties. As
the Debtor has been engaged in the sale of its land, in connection
the builder of homes on each track, the consummation of land and
home sales is in the ordinary course of its business, which would
not customarily require Court approval.
The circumstance that brings the Debtor before the Court for
approval of its Motion is due to its lienholder on the Johnson
County Property refusing to provide partial lien releases to close
on six homes under contract at this time. As good cause exists to
complete these real estate sales, and lienholder, C&G Realty E,
LLC, is fully protected and over-secured, the relief sought is
appropriate at this time.
On Oct. 7, 2021, and Humpheries, through their company, C&G, sold
approximately 556.81 acres ("Johnson Property") to the Debtor for
the purchase price of $4,538,001.50. The same was to be paid for
by a $20,000 deposit and $1,010,822.21 down-payment followed by 10
monthly interest payments, with the balance due on Aug. 8, 2022.
The purchase was documented by a Real Estate Lien Note, Security
Agreement, Deed of Trust, Financing Statement and Absolute
Assignment of Rents ("Purchase Agreement") of the same date. Mr.
Brian Frazier, a homebuilder, a representative for the Debtor, also
personally guaranteed purchase obligations of the Debtor.
The Purchase Agreement expressly contemplated the development of
the land, the construction of homes on the Johnson County Property,
with the sales of each home. C&G agreed to executing partial
releases on each home sale in exchange for a lump sum payment of
$500,000 to be applied to reduce the principal balance.
Pursuant to a joint venture with Mr. Frazier's homebuilding
business, the Debtor had all six homes substantially completed and
had them scheduled for closings in early August. The maturity date
on the Note obligation to C&G was Aug. 8, 2022 and the Debtor was
unable to obtain commitments from the various homebuyers and their
lenders that all would be ready to close by that date. So, the
Debtor sought a short extension.
The material terms of all home sales were shared with C&G prior to
the maturity date and an extension of the maturity date was sought
to enable the Debtor to complete the sales. Due to the passage of
the maturity deadline, C&G sent a 5-day Notice to Cure, rejecting
the terms of proposed forbearance and partial releases.
Although an even more generous offer for a short forbearance was
submitted by the Debtor's counsel in September, C&G rejected it and
posted the Johnson County Property for Foreclosure. This posting
further jeopardizes the existing home contracts.
As each day passes, the increase in inventory on the market, and
changing interest rates, also jeopardize the Debtor's ability to
close on all six homes with the original buyers. C&G has also now
posted the Johnson County Property for foreclosure sale on Oct. 4,
2022, concerning lenders who have committed to homeowners' loans
for these purchases.
The Debtor filed its voluntary chapter 11 petition because the
value of the Johnson County Property far exceeds the debt due to
C&G. Similar raw land in the same area as the Johnson County
Property is presently listed for between $28,045 per acre up to
$50,586.80 per acre in September of 2022. Thus, the land itself is
worth in excess of $15 million at this time.
The fact that approximately 60 acres have been improved with luxury
homes, has increased the value by more than $3 million.
Additionally, there is a small rental house on the property valued
at approximately $300,000.
Lenders on other land of the Debtor have accepted the difficulties
in the homebuilding and real estate markets since March of 2020 and
worked with the Debtor. Unfortunately, C&G has not been willing to
provide an extension on the maturity date, nor partial releases to
facilitate closings on the homes and partial payments on the
principal debt. Bankruptcy was filed to save the Debtor's
substantial equity in the Johnson County Property.
The the Debtor seeks to proceed with sales of the homes on its
Johnson County Property, free and clear of liens, with the C&G lien
attaching to the net proceeds followed by full payment on C&G's
secured claim after the sale of these homes. The sales prices of
the homes are between $459,000 and $579,000. The sales should
yield approximately $3 million with the agreement by the builder to
take nothing on its constitutional liens out of these sales.
According to C&G's written demand, the principal balance as of Aug.
9, 2022 was $3,488,001.56, with additional default interest of
$17,814.47 and interest accruing at the rate of $573.37 per day.
The additional funds to pay C&G in full, including its legal fees
for posting the foreclosure, will then come from non-debtor, Brian
Frazier, pursuant to his guarantor obligations.
As each sale closes, the net proceeds (after taxes, title
insurance, realtor commissions and escrow agent fees) will go into
an escrow account with Priority Settlement Services and C&G’s
lien will transfer from the homes and lots to the cash. After all
six homes have closed, the Escrow Officer will advise C&G, in
writing, and request an updated payoff.
If necessary, the Debtor also seeks authority to sell the small
rental house on the property to add to the payoff funds. This house
on two acres has an approximate value of $300,000. Brian Frazier
will then deposit the additional needed funds into the escrow
account. The Debtor will then seek authority to pay the lump sum
to C&G in exchange for an executed release of its lien on all of
the Johnson County Property and a Cancellation of the Note and
Security Agreement and Release of the Deed of Trust in recordable
form. If the updated payoff is disputed, this Court will determine
the lien amount to be paid. However, if undisputed, payment and
releases can be accomplished as in the ordinary course of the
Debtor's business.
The Debtor filed its voluntary chapter 11 petition to enable it to
complete the home sales and pay C&G in full. As the homes and raw
land far exceed the amount of the lien of C&G, it is adequately
protected by this sales process.
About Jumba LLC
The Jumba LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tex. Case No. 22-31740) on September
23, 2022. In the petition filed by Andrea Vernon, as manager, the
Debtor reported assets between $10 million and $50 million and
liabilities between $1 million and $10 million.
The Debtor is represented by Lyndel Anne Vargas of Cavazos
Hendricks Poirot, P.C.
KABBAGE INC: Files Voluntary Chapter 11 Bankruptcy Petition
-----------------------------------------------------------
Kabbage, Inc. d/b/a KServicing, a prominent servicer and
subservicer of small business Paycheck Protection Program loans
("PPP Loans"), on Oct. 3 disclosed that the Company has voluntarily
filed for relief and protections under Chapter 11 of the U.S.
Bankruptcy Code in the U.S. Bankruptcy Court for the District of
Delaware. KServicing has determined that a Chapter 11 restructuring
proceeding provides the Company with beneficial flexibility and
protections to consummate the winding down of its operations in an
efficient and effective manner and will also provide a framework
for resolution with key stakeholders and a possible global
settlement of outstanding disputes.
The Company is focused on minimizing any disruption to its loan
servicing obligations to ensure a seamless experience for all
borrowers.
"The actions are in line with KServicing's mission to support PPP
borrowers through their loan forgiveness process, provide loan
processing services to partner banks, and wind down the Company's
existing loan portfolio," Laquisha Milner, Chief Executive Officer,
stated. "During the COVID-19 pandemic, the Company was instrumental
in originating and servicing PPP loans in partnership with the
federal government and bringing the benefits of the PPP to small
businesses in underserved communities. We remain committed to
providing high-quality service to borrowers and continuing to
service PPP loans without interruption to the best of our abilities
during this process."
KServicing has filed a number of customary first day motions with
the Bankruptcy Court that, among other things, seek authorization
to continue the operations of the Company in the ordinary course of
business. Further, as a routine matter, the Company has sought
relief in the Chapter 11 Cases to continue paying all active
employees in the ordinary course. This relief includes all wages,
compensation, and other benefits, including healthcare. The Company
expects to receive court approval for these requests.
The Company remains committed to maximizing the value of its
business and strongly believes in its ability to effectively and
efficiently wind down its operations through Chapter 11, a benefit
that will inure to all stakeholders and other parties in interest.
KServicing's Chapter 11 Cases are administered under case numbers
22-10951, 22-10952, 22-10953, 22-10954, 22-10955 and 22-10956, with
a request for joint administration pending.
Weil, Gotshal & Manges LLP is acting as the Company's restructuring
counsel, Richards Layton & Finger P.A. is acting as the Company's
co-counsel and AlixPartners LLP is acting as financial advisor, in
connection with the Chapter 11 Cases. For more information about
the Chapter 11 Cases, including access to Court documents, please
visit: https://omniagentsolutions.com/KServicing. KServicing also
has established a restructuring information line that can be
reached at the following number: (866) 956-2138 (toll free in
U.S./Canada) or (747) 226-5953 (International).
About KServicing
Founded in 2010 and headquartered in Atlanta, Georgia, Legacy
Kabbage (a predecessor of KServicing) -- http://www.kservicing.com
-- was one of the leading fintech providers of working capital to
small businesses for over a decade. Legacy Kabbage began as a
proprietary online lending platform for small businesses, providing
loan services to over 250,000 American small businesses, many of
which were businesses that struggled to receive adequate funding
through traditional banking institutions. Legacy Kabbage offered a
variety of services to small business owners, including providing
small business loans, access to flexible lines of credit, business
checking accounts, online bill payment methods, cash flow
visualization tools, and e-gift certificates through its website
and software application. From 2020-2021, the Company provided and
facilitated necessary funding to small business owners through PPP
loans during the COVID-19 pandemic. The Company's existing
technology infrastructure spearheaded its PPP work, which led to a
total of $7 billion in loans being originated by the Company.
The origination and servicing of PPP Loans and small business loans
to eligible borrowers was critical during a time of unprecedented
health and economic uncertainty brought about by the COVID-19
pandemic. On August 16, 2020, much of the Company's business was
sold to American Express Travel Related Services Company, Inc.
pursuant to an executed Agreement and Plan of Merger. As a result
of the merger, KServicing now operates in a limited capacity as (i)
a servicer and subservicer of PPP Loans, (ii) a software services
provider for lenders of PPP Loans, and (iii) a servicer of a minor
portfolio of non-PPP small business loans.
Kabbage is a trademark of American Express used under license;
Kabbage, Inc. d/b/a KServicing is not affiliated with American
Express.
KARTES LEASING: Gets OK to Hire Onyx as Accountant
--------------------------------------------------
Kartes Leasing, LLC received approval from the U.S. Bankruptcy
Court for the District of Arizona to employ Onyx Accounting Group,
LLC as its accountant.
The Debtor requires an accountant to:
a. process accounts payable including the preparation and
issuance of checks;
b. prepare billings, record billings, enter cash receipts and
track sales tax;
c. reconcile certain accounts monthly and prepare journal
entries;
d. prepare depreciation schedules;
e. assist in the preparation of the books from March 2020 to
current;
f. review and approve monthly reconciliations and journal
entries prepared by staff;
g. reconcile complex accounts monthly and prepare journal
entries;
h. analyze financial statement and present to management;
i. develop and track key business metrics as requested and
review periodically with management;
j. develop and track key business metrics as requested and
review periodically with management;
k. assist with bank communications and negotiations; and
l. gather information necessary to prepare the entity’s annual
tax return.
The firm will be paid at hourly rates ranging from $50 to $165 and
will be reimbursed for out-of-pocket expenses incurred. The
retainer is $1,000.
As disclosed in court filings, Onyx is a "disinterested person"
within the meaning of Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Onyx Accounting Group, LLC
8990 E Raintree Dr #100
Scottsdale, AZ 85260
Tel: (480) 442-3119
Email: info@onyxcfo.com
About Kartes Leasing
Kartes Leasing, LLC filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. D. Ariz. Case No. 22-00997) on Feb.
18, 2022, listing up to $1 million in assets and up to $500,000 in
liabilities. Joseph E. Cotterman serves as Subchapter V trustee.
Judge Brenda Moody Whinery oversees the case.
D. Lamar Hawkins, Esq., at Guidant Law, PLC, the Law Offices of
Peter N. Greenfeld, P.C. and Onyx Accounting Group, LLC serve as
the Debtor's bankruptcy counsel, special counsel and accountant,
respectively.
KC PANORAMA: Slater Buying Weston Property for $8.8 Million Cash
----------------------------------------------------------------
KC Panorama, LLC, and its affiliates ask the U.S. Bankruptcy Court
for the District od Massachusetts to authorize them to sell the
real estate located at and known as 5 Concord Road, in Weston,
Massachusetts, to Samuel Slater for $8.8 million cash, in
accordance with terms of the Purchase and Sale Agreement, executed
on Sept. 20, 2022, subject to overbid.
On July 1, 2021, the US Trustee filed a Motion to Convert these
cases to Chapter 7. The Conversion Motion was subsequently joined
by Secured Creditor KHRE SMA Funding, LLC. Among the UST's
enumerated examples of "cause to convert" was the alleged accrual
of interest on KHRE's loan. This interest, and the rate thereof,
was contested by the Debtors. On Sept. 20, 2021, the Court denied
the Conversion Motion.
On Oct. 24, 2021, the Debtors moved for Court authority to sell the
real property located at 27-29 Stuart Street, Boston,
Massachusetts. At a hearing on the Motion to Sell the Stuart
Street Property, the Court approved a sale in the amount of $5.15
million, with the net proceeds of the sale paid over to KHRE.
On Feb. 11, 2022, the Debtors moved for Court authority to sell the
real property located at 13-15 and 19-21 Congress Street, Boston,
Massachusetts. At a hearing on the Motion to Sell the Congress
Street Property, the Court approved a sale in the amount of $14
million, with the net proceeds of the sale paid over to KHRE.
On Feb. 4, 2022, the Debtors moved to employ Gibson Sotheby's
International Realty to market the Concord Road Property for sale.
This employment was approved by the Court on Feb. 23, 2022. From
Feb. 23, 2022 through the date of this Motion, the Concord Road
Property has been aggressively marketed for sale by the Debtors'
employed broker.
According to the Debtor's schedules, the Property had a value of
$11,702,706 at the time of filing the bankruptcy petition.
The Property is subject to the valid and perfected mortgage lien,
held by KHRE ecuring the approximate amount of $11.5 million (after
accounting for amounts paid to KHRE through the two prior sales of
real estate in these cases). Said Mortgage is recorded with the
Middlesex County (Southern District) Registry of Deeds at Book
70775, Page 103. The Mortgage is secured by the Property, and was
formerly secured by the Congress Street and Stuart Street
Properties as well.
The Debtor received multiple offers to purchase the Property, and
ultimately chose Slater's offer, as Slater's offer was the highest
offered purchase price and presented the most favorable terms to
the Debtor.
Following negotiations between the parties, the Debtors have
received and, subject to Court approval, accepted an offer from
Slater, together with any nominee to purchase the Property for a
payment of $8.8 million. The terms of the sale are set forth in
the Commercial Purchase and Sale Agreement.
By this Motion, the Debtors request an interim order, (i)
scheduling a hearing to approve the Sale; (ii) approving the form
and manner of notice of the Motion and the Sale Hearing; and (iii)
approving the proposed overbid threshold of 5% of the accepted
offer.
The Debtors further request that, at the Sale Hearing, the Court
enters an order (i) approving the sale to Slater pursuant to the
Purchase Agreement, (ii) approving the Purchase Agreement or a
similar asset purchase agreement applicable to the Purchaser, and
(iii) authorizing the Debtor to sell the Property free and clear of
all liens, claims, encumbrances, and interests as more fully set
forth in the proposed form of Sale Order.
The Debtors propose to consider counteroffers/bids to purchase the
Property, and to accept the highest and best offer, as determined
at that time in light of all the facts. The purchase would be
accomplished under section 363, in furtherance of their
liquidation.
The Debtors retained the services of Gibson Sotheby's as the real
estate brokerage firm to market the Property. They have agreed to
pay a total broker commission equal to 3% of the sale price of the
Property on completion of a sale of the Property, to be split
equally with the successful bidder's broker, with fees subject to
further Court review.
On Sept. 20, 2022, the Debtors and Slater entered into the Purchase
Agreement, subject to higher and better offers and the approval of
the Court.
The salient terms of the Agreement are:
a. Purchase Price: $8.8 million
b. Deposit: $400,000 in cash deposit (currently held in
escrow by Gibson Sotheby's)
c. Assets: 5 Concord Road, Weston, MA including all land and
improvements thereon
d. The sale is conditioned upon entry of an order by the
Bankruptcy Court authorizing the sale free and clear of liens,
claims, encumbrances, and interests in the form and substance
reasonably satisfactory to the Debtor and Slater, including a
determination that Slater is a good faith purchaser pursuant to
section 363(m).
e. The purchase is to close on or before the expiration of 30
days after such purchase is approved by the Court.
The Debtors intend to sell the Property free and clear of all
Claims. Such Claims, if any, will, to the extent valid and
perfected, attach to the proceeds of the sale.
The Debtors seek authority to pay the brokers' fee in the amount of
3% of the Purchase Price. The fee will be divided between the
buyer and seller's brokers, with 1.5% going to Gibson Sotheby's
International Realty and with 1.5% going to the Successful Bidder's
Broker, if any.
The Debtors further seek authority to pay any ordinary and
necessary closing expenses (including applicable transfer taxes,
recording costs, and legal fees associated with the closing, and
any other incidental closing costs and expenses typically paid by
sellers of real estate in Massachusetts).
The remaining funds will be applied towards the mortgage held by
KHRE. In exchange the lien held against the Property of 5 Concord
Road, Weston, MA will be discharged, with the remainder of the debt
subject to ongoing negotiations between the parties.
In the interest of attracting as many bidders as possible, while
providing value to the estate through the bidding process, the
Debtors propose an initial overbid threshold of 5%) of the initial
accepted offer of $8.8 million.
Any counteroffer to purchase the Property will: provide for a cash
purchase price of at least $9.24 million; include a cash deposit of
at least $400,000; provide for such bid to be irrevocable until the
closing of the Sale; be accompanied by a signed purchase and sale
agreement based on Purchase Agreement and a marked version showing
any changes thereto, which changes will not be any less favorable
to the Debtor than the terms of the Purchase Agreement; not be
subject to, or conditioned on, the outcome of unperformed due
diligence by the bidder or upon any financing contingency; and
include a statement as to the contemplated use of the Property.
Any bidder will agree to serve as a back-up bidder through the date
of Closing, if such bidder's counteroffer is determined by the
Debtor, in its sole discretion, to be the second highest and best
offer. The Bidding Deadline is 12:00 p.m. (Noon) on the
non-holiday business day immediately prior to the scheduled date of
the hearing to approve the sale. For cash deposit delivered in
conjunction with a counteroffer, the entity submitting a
counteroffer will enter into joint escrow instructions with the
Debtor and Gibson Sotheby's. Any deposits submitted by
unsuccessful bidders will be returned to said bidders upon Closing
of the Property.
To ensure adequate notice of the Sale, the Debtors seek approval of
a form of Notice of Sale. They will serve the Notice of Sale upon
the Sale Notice Parties.
The Sale of the Property constitutes a sale of substantially all of
the Debtors' assets. They seek a sale through Section 363, rather
than through the Chapter 11 Plan is to facilitate the Sale of the
Property in an expedited fashion. They have, and have never had,
any income. Their expenses have been paid by its owner, Kai Zhao,
and Hemisphere Development Group, LLC, also owned by Mr. Zhao.
They have and never had any employees. The Property is their
principal asset, and its liquidation is the only way that the
Debtors can propose to pay their debts.
As the Debtors have no business operations beyond the holding of
the Property, they submit that this liquidation of the property
provides the maximum possible value to the estate and, therefore,
to creditors.
Finally, the Debtors ask the Court to enter an order authorizing
the sale will be effective upon entry, notwithstanding Fed. R.
Bankr. P. 6004(g).
A copy of the Agreement is available for free at
https://tinyurl.com/565nfn6v from PacerMonitor.com free of charge.
The Purchaser:
Sammuel Slater
16 Marlborough Street,
Boston, MA 02116
About KC Panorama
KC Panorama LLC, a Waltham, Mass.-based company engaged in renting
and leasing real estate properties, sought protection under
Chapter
11 of the Bankruptcy Code (Bankr. D. Mass Case No. 21-10827) on
June 4, 2021, listing total assets of $11,703,396 and total
liabilities of $23,507,162. KC Panorama President Kai Zhao signed
the petition. Judge Frank J. Bailey oversees the case. Ravosa
Law
Offices, P.C. is the Debtor's legal counsel.
LATAM AIRLINES: Banks Sweeten Bond Prices Needed for Bankruptcy Exi
-------------------------------------------------------------------
Lisa Lee and Paula Seligson of Bloomberg News report that banks
leading the bankruptcy exit financing for Latam Airlines Group SA
are sweetening the price on $1.5 billion of high-yield bonds amid
tepid investor demand.
JPMorgan Chase & Co. is proposing an all-in yield in the range of
14% to 15% on the debt from an initial price talk of around 13%,
according to people familiar with the matter. The original issue
discount has been lowered to 93 cents on the dollar, according to
the people, who asked not to be named discussing private
information.
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.
MCCLAIN INVESTMENTS: Commences Subchapter V Case
------------------------------------------------
McClain Investments TN LLC filed for chapter 11 protection in the
Middle District of Tennessee. The Debtor elected on its voluntary
petition to proceed under Subchapter V of chapter 11 of the
Bankruptcy Code.
The Debtor is in the business of owning and contracting for the
development of residential real estate in Nashville and the
immediate surrounding area.
As of the Petition Date, the Debtor owned four properties, each of
which was subject to secured indebtedness in favor of Bell Rock
Income Fund 1, LLC.
Prior to the Petition Date, the Debtor agreed to sell its
properties for an amount that would satisfy Bell Rock's claims in
full.
The Debtor quickly filed with the Court a motion to complete the
sale of real property located at 1515 Ashwood Avenue, Nashville,
Tennessee 37212 to 1513 Ashwood Ave, LLC (the "Buyer"). The
Debtor has agreed with the Buyer to a purchase price of $1,215,000
for the Property, memorialized in the executed contract. The
Debtor desires to assume the Purchase and Sale Agreement pursuant
to 11 U.S.C. Sec. 365. Pursuant to the terms of the Purchase
Agreement, the sale proceeds from Property would be sufficient to
satisfy the Bell Rock claim against the Property.67
According to court filings, McClain Investments TN estimates $1
million to $10 million in total debt to 1 to 49 creditors. The
petition states that funds will be available to unsecured
creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
Oct. 28, 2022, at 10:00 AM. Meeting held telephonically. Please
call 877-934-2472 and enter code 8613356# to attend. The deadline
to file Proof of Claim is Nov. 28, 2022.
About McClain Investments TN LLC
McClain Investments TN LLC is in the business of owning and
contracting for the development of residential real estate in
Nashville and the immediate surrounding area.
McClain Investments TN filed a petition for relief under Subchapter
V of Chapter 11 of the Bankruptcy Code (Bankr. M.D. Tenn. Case No.
3:22-bk-03142) on Sept. 29, 2022. In the petition filed by Brian
Layton, as owner, the Debtor reported assets and liabilities
between $1 million and $10 million each.
Courtney Hunter Gilmer has been appointed as Subchapter V trustee.
The Debtor is represented by R. Alex Payne of Dunham Hildebrand,
PLLC.
MCCLELLAN TRUCKING: Taps Knox McLaughlin Gornall as Counsel
-----------------------------------------------------------
McClellan Trucking, Inc. seeks approval from the U.S. Bankruptcy
Court for the Western District of Pennsylvania to employ Knox
McLaughlin Gornall & Sennett, P.C. as its legal counsel.
The firm's services include:
(a) legal advice regarding the Debtor's powers and duties under
Chapter 11, Subchapter V, including legal matters related to the
operation of the Debtor's business;
(b) preparation of the Debtor's schedule of assets, schedule of
liabilities and statement of financial affairs;
(c) preparation and confirmation of a Chapter 11, Subchapter V
plan of reorganization and disclosure statement;
(d) other legal actions, as necessary, to avoid liens, object to
claims, enforce the automatic stay, recover preferences and defend
motions and complaints against the Debtor;
(e) preparation of legal papers; and
(f) other necessary legal services related to the case.
The firm received pre-bankruptcy fees in the total amount of
$23,000 for services rendered in preparing the cases.
Guy Fustine, Esq., a partner at Knox McLaughlin Gornall & Sennett,
disclosed in a court filing that the firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Guy C. Fustine, Esq.
Knox McLaughlin Gornall & Sennett, PC
120 West Tenth Street
Erie, PA 16501-1461
Tel: (814) 459-2800
Email: gfustine@kmgslaw.com
About McClellan Trucking
McClellan Trucking, Inc. filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. W.D. Pa. Case No.
22-10437-GLT) on Sept. 28, 2022, with up to $500,000 in both assets
and liabilities. William G. Krieger has been appointed as
Subchapter V trustee.
Guy C. Fustine, Esq., at Knox McLaughlin Gornall & Sennett, P.C. is
the Debtor's legal counsel.
METRO SERVICE: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Metro Service Group, Inc.
9641 Old Gentilly Road
New Orleans, LA 70115
Business Description: Metro Service is a multi-faceted corporation
with specific expertise and certifications
in the areas of Environmental Services,
Construction/Demolition, and Disaster
Response and Recovery. Metro Service is a
licensed contractor, certified in building
construction; heavy construction; highway,
street and bridge construction; municipal
and public works construction, and solid
waste management.
Chapter 11 Petition Date: October 6, 2022
Court: United States Bankruptcy Court
Eastern District of Louisiana
Case No.: 22-11197
Judge: Hon. Meredith S. Grabill
Debtor's Counsel: Douglas S. Draper, Esq.
HELLER DRAPER & HORN, LLC
650 Poydrass St. Ste. 2500
New Orleans, LA 70130
Tel: 504-299-3300
Email: ddraper@helledraper.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Jimmie Woods as president.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/5TYP7TY/Metro_Service_Group_Inc__laebke-22-11197__0001.0.pdf?mcid=tGE4TAMA
MIFATE CAB: Seeks to Hire Thomas A. Farinella as Legal Counsel
--------------------------------------------------------------
Mifate Cab Corp. seeks approval from the U.S. Bankruptcy Court for
the Southern District of New York to hire the Law Office of Thomas
A. Farinella, P.C to serve as legal counsel in its Chapter 11
case.
The firm's services include:
(a) assisting the Debtor in administering its bankruptcy
case;
(b) preparing motions or taking actions appropriate or
necessary under the Bankruptcy Code;
(c) representing the Debtor in prosecuting adversary
proceedings to collect assets of the estate and such other actions
as the Debtor deems appropriate;
(d) taking necessary steps to marshal and protect the estate's
assets;
(e) negotiating with creditors in formulating a plan of
reorganization;
(f) drafting and prosecuting the confirmation of the Debtor's
plan of reorganization; and
(g) rendering such additional services as the Debtor may
require in the case.
The firm's hourly rates are as follows:
Attorney $400 per hour
Clerks and paraprofessionals $200 per hour
The Debtor paid the firm a retainer fee in the amount of $2,000.
Thomas Farinella, Esq., the firm's attorney who will be providing
the services, disclosed in a court filing that he is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Thomas A. Farinella, Esq.,
Law Office of Thomas A. Farinella, PC
260 Madison Avenue, 8th Floor
New York, NY 10016
Tel: (917) 319-8579
Email: tf@lawtaf.com
About Mifate Cab Corp.
Mifate Cab Corp. previously sought bankruptcy protection under
Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y.
Case No. 21-10018) 0on Jan. 6, 2021. On Oct. 4, 2021, the Court
entered an order dismissing the case due to the Debtor's failure to
comply with the Court's prior orders to file certain motions. The
case was officially closed on June 5, 2022.
Mifate Cab Corp. again commenced a Chapter 11 Subchapter V case
(Bankr. S.D.N.Y. Case No. 22-10665) on May 26, 2022. In the
petition filed by Obaidul Islam Mithu, as president, Mifate Cab
Corp. listed estimated assets between $50,000 and $100,000 and
estimated liabilities between $500,000 and $ 1 million.
The case is overseen by Honorable Bankruptcy Judge James L Garrity
Jr.
Thomas A. Farinella, of Law Offices of Thomas A. Farinella, PC, has
been serving as counsel to the Debtor since the previous case.
Charles Persing has been appointed as Subchapter V trustee in the
recent case.
MKS INSTRUMENTS: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Rating
(IDR) for MKS Instruments, Inc. (MKSI or MKS) at 'BB+'. The Rating
Outlook is Stable. Fitch has also affirmed the senior secured term
loan issue rating at 'BBB-'/'RR1'.
In August, MKS closed on the acquisition of Atotech and its related
issuance including a $500 million senior secured undrawn revolving
credit facility (RCF), a $1 billion senior secured term loan A, a
$3.6 billion senior secured term loan B, and a $600 million Euro
senior secured term loan B. Fitch previously provided ratings for
the transaction one year prior, but closing was delayed as the
company awaited final clearance from Chinese regulatory
authorities. Fitch's actions affect approximately $4.2 billion of
debt.
KEY RATING DRIVERS
Cyclicality: The Atotech acquisition accelerates efforts to reduce
the cyclicality experienced historically, as exposure to
semiconductor capital equipment demand will decline to 39% of pro
forma revenue from 62%. Semicap equipment demand has experienced
periods of excessive volatility with two-year declines of
approximately 50% in both 2001-2002 and 2008-2009, while more
moderate cycles have witnessed mid-teens rates of decline.
Atotech introduces direct exposure to semiconductor manufacturing
volumes, in contrast to capital equipment spending, in addition to
markets outside of semiconductors. Semiconductor manufacturing
volumes are less volatile with a median volume decline of 6.6% in
contracting years and the deepest trough producing a decline of 22%
during the financial crisis. Fitch estimates the combined company
will now derive 10%-15% of revenue from markets directly correlated
with or downstream from semiconductor manufacturing volumes,
reducing cyclicality.
As risks to demand throughout the semiconductor supply chain grow,
Fitch has stress tested its forecasts for a revenue decline of 9.5%
in 2023, in line with previous moderate contractions such as the
2019 cycle. Under the scenario, Fitch expects leverage to peak at
4.5x as expected debt prepayments are offset by revenue decline and
EBITDA margin compression, while FCF margins would likely trough
near 12%, sustaining FCF above $500 million. A recovery similar to
historical cycles would also see the company quickly return to
growth, which along with anticipated debt prepayments, would lead
to a decline in leverage to 2.7x by FY24. Fitch believes the
scenario forecast demonstrates increased diversification and scale
will reduce cyclicality, which is a central aspect of the rating.
Diversification: The acquisition reduces customer concentration and
continues management's strategy to expand into markets uncorrelated
with the semiconductor industry with previous acquisitions
introducing exposure to life sciences, advanced electronics
manufacturing, industrial technology, advanced research, quantum
computing and defense. Atotech also contributes exposure to
automotive production with its leadership position in general metal
finishing. Finally, the combination reduces customer concentration
with the two largest customers representing 16% of pro forma
revenue, down from 27% previously.
Financial Policies: The company may utilize elevated financial
leverage in pursuit of strategic M&A, but has historically
prioritized debt repayment to quickly reduce leverage thereafter.
The delayed closing of the Atotech acquisition as the company
awaited regulatory approval from Chinese authorities, positions MKS
with substantially more debt, with Fitch forecasting pro forma FY22
leverage of 3.8x, at a time when risks of demand deterioration are
growing, leading to potential near-term increases in leverage.
Fitch expects that management will maintain their discipline and
forecasts voluntary debt prepayments of $520 million-$600 million
per annum, quickly returning leverage to within our sensitivities.
While the approach to debt reduction appears conservative for the
rating, Fitch believes the 'BB' rating category is indicative of
the flexibility needed to fulfill the company's acquisitive
strategy within the context of cyclicality.
FCF: MKS generated FCF margins averaging 14% and has demonstrated
cash flow resiliency during adverse environments. During 2019, when
semiconductor production volumes and industry capex declined 3% and
8.5%, respectively, MKS sustained FCF margins of 7%. Fitch believes
MKS will average mid-cycle FCF margins in the mid-teens as the
additional scale from Atotech hastens the path towards $1 billion
in annual FCF over the longer term. As noted above, Fitch's stress
tests demonstrate that the moderating impact from diversification
on future down cycles will likely limit FCF margin compression to
12% in a hypothetical scenario similar to 2019. FCF resiliency is a
central aspect of the rating.
Secular Tailwinds: MKSI benefits from secular tailwinds as
increasing technological intensity and complexity across sectors
generates demand for precision manufacturing and process control.
The heritage in semiconductor capital equipment subsystems
positions MKS to benefit from the increasing cost of sustaining
Moore's law that is expected to drive a 45% increase in capital
equipment spending by 2025.
In addition, demand growth for the company's Advanced Markets
segment is supported by trends towards miniaturization, higher
densities, expanded use cases and new materials across a variety of
applications including printed circuit boards, digital displays,
electronics packaging, solar panels, fiber optics, materials
processing, quantum computing and medical technologies.
Fitch expects the secular dynamics to lead to mid-cycle organic
growth of 4%-6% per annum and to extend MKSI's competitive
advantages as technological capability, breadth of product
portfolio, and deep partnerships with customers serve as increasing
points of advantage.
Strategic Fit: Fitch believes the industrial logic for the Atotech
acquisition is sound as increasing miniaturization and complexity
of electronics generates needs for optimization at the interconnect
between chips and devices. Atotech's capabilities in electronics
chemicals is synergistic with MKSI's heritage in laser drilling as
it simplifies customers' design process and accelerates their
product roadmaps and time to market. Fitch believes the combination
improves the credit profile through deeper collaboration with
customers, cross selling opportunities and increased product
differentiation.
DERIVATION SUMMARY
Fitch evaluates MKSI pending its acquisition of Atotech and
compares the combined company against Amkor Technology, Inc.
(BB/Stable), TTM Technologies, Inc. (BB/Stable), Coherent Corp.
(fka II-VI Incorporated; BB/Stable), Entegris (BB/Stable) and KLA
Corporation (A-/Stable) given similar product segments, operating
profile characteristics or underlying secular trends.
Fitch believes MKSI's technological leadership in process control
and precision manufacturing has led to strong market shares with
the company achieving leadership positions across 15 product
categories. Despite leading share and technological capability, the
company has historically been challenged by elevated cyclicality
and constrained profitability, similar to TTM, Coherent and
Entegris, which endure highly volatile end-market demand and weaker
bargaining positions relative to customers.
However, similar to the noted peers, Fitch believes MKSI benefits
from secular trends including, expanding use cases into new
end-markets as well as growing technological complexity, which
positions scaled companies to extend technology leadership,
increase product differentiation and deepen partnerships with
customers, benefiting the credit profiles over time.
MKS scores well across operating metrics as Fitch expects continued
mid-cycle EBITDA margins of 29%-30% over the rating horizon,
modestly above the 28% peer median. In addition, low capital
intensity and a small dividend contribute to a favorable FCF
profile with Fitch forecasting mid-cycle FCF margins of 16%-17%,
well above the 9% peer median.
While recent and forecast EBITDA and FCF margins are consistent
with the 'A' rating category, Fitch believes that the overall
credit profile is weighed down by volatility of profitability, as
seen recently in 2019 where an 8% decline in revenue contributed to
700 bps of EBITDA margin compression while FCF margins were reduced
by roughly half to 7%. Relative to peers, Fitch believes the
company's strategy to increase diversification and scale will
moderate impacts from future down cycles as our stress case models
demonstrate FCF margin compression to 12% in a hypothetical
scenario similar to 2019, suggestive of a strengthened credit
profile than the similarly rated peers.
MKSI has demonstrated a willingness to utilize elevated financial
leverage in pursuit of strategic M&A opportunities, but management
has historically prioritized debt repayment to quickly reduce
leverage thereafter. Fitch expects that management will maintain
the policy post the Atotech acquisition and forecasts voluntary
debt prepayments of $520 million-$600 million per annum, resulting
in a decline leverage to 2.7x over the rating horizon, in line with
the 2.7x median for peers in the 'BB' category.
While the approach to managing the balance sheet over the long term
is consistent with the 'BBB' rating category and the operating
profile has clearly improved, Fitch believes the further rating
upside is currently limited due to the company's positioning
relative to customers and within the value chain that remains
susceptible, high customer concentration, lack of explicit
financial policies, and cyclicality within the context of the
desire to pursue leveraging acquisitions. Fitch believes a rating
in the upper 'BB' category is supported by the leverage profile in
line with similarly rated peers, declining cyclicality, strong FCF
and growing competitive advantages. No country-ceiling,
parent/subsidiary or operating environment aspects impacted the
rating.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer:
- MKS standalone growth of 5.3% in fiscal 2022 due to strong
spending from semiconductor capital equipment manufacturers,
partially offset by reduced capex from flex PCB manufacturers, plus
contribution from Atotech; mid-cycle organic growth of 4%-6% per
annum and decline of 9.5% in an adverse macroeconomic environment;
- EBITDA margin of 29% in fiscal 2022 with expansion of 50 bps per
annum in a steady-state environment due to gradual realization of
$50 million cost synergies and improving bargaining position
relative to customers, and margin compression of 500 bps in an
adverse macroeconomic environment;
- Capital intensity of 4% in FY22 due to purchase of new corporate
facility in Korea, returning to 3% per annum thereafter, consistent
with historical average;
- Dividends stepping up to $58 million in fiscal 2022 due to
equity issuance in connection with Atotech acquisition, growing 3%
per annum thereafter;
- Voluntary debt prepayments of $520 million-$600 million in per
annum.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Reduced volatility of profitability;
- Increased customer and end-market diversification;
- Mid-cycle leverage or a publicly announced explicit leverage
defined as total debt with equity credit/operating EBITDA at or
below 2.75x.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Mid-cycle leverage defined as total debt with equity
credit/operating EBITDA at or above 3.5x;
- Cash flow from operations - Capex/total debt with equity credit
sustained below 15%;
- Sustained revenue declines or margin compression due to
decreased bargaining power relative to customers or decreased
competitive advantage.
LIQUIDITY AND DEBT STRUCTURE
Ample Liquidity: Fitch views MKSI's liquidity position as strong
for the rating category, expected to be comprised of over $500
million of readily available cash with the $500 million senior
secured RCF remaining undrawn by YE 2022 following the recent
closing of the acquisition and related financing. Liquidity is
further supported by the company's cash generation with Fitch
forecasting mid-cycle FCF margins slightly exceeding 15%.
ISSUER PROFILE
MKS provides process control and precision manufacturing solutions.
Primary served markets include semiconductor, industrial
technologies, life and health sciences, research and defense.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
Debt Rating Recovery Prior
---- ------ -------- -----
MKS Instruments, Inc. LT IDR BB+ Affirmed BB+
senior secured LT BBB- Affirmed RR1 BBB-
MOLECULAR IMAGING: Wins Cash Collateral Access Thru Nov 1
---------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division, authorized Molecular Imaging Chicago LLC to use
cash collateral on an interim basis in accordance with the budget,
with a 10% variance, through November 1, 2022.
As adequate protection for the Debtor's use of cash collateral,
Byline Bank and any other lien claimants are granted post-petition
replacement liens, to the extent and with the same priority as held
pre-petition, in and to the cash collateral and all post-petition
property of the Debtor of the same type or kind substantially
equivalent to the pre-petition Collateral.
A further hearing on the matter is set for November 1 at 1:30 p.m.
A copy of the order is available at https://bit.ly/3V9H9mQ from
PacerMonitor.com.
About Molecular Imaging Chicago LLC
Molecular Imaging Chicago LLC is dedicated to providing diagnostic
testing services, including PET/CT, MRI (Open and High Field),
Diagnostic CT, EMG/NCV, Ultrasound, Arthrogram, and Digital X-Ray
services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Court (Bankr. N.D. Ill. Case No. 22-10864) on September
22, 2022. In the petition signed by Rajeev Batra, managing member,
the Debtor disclosed up to $500,000 in assets and up to $10 million
in liabilities.
Judge Jacqueline P. Cox oversees the case.
Gregory K. Stern, Esq., at Gregory K. Stern, P.C., is the Debtor's
counsel.
NORTHSIDE VENTURES: Case Dismissed After One Day
------------------------------------------------
Northside Ventures LLC filed for chapter 11 protection in the
Northern District of Indiana. According to court filings,
Northside Ventures LLC estimated $1 million to $10 million in debt
to 1 to 49 creditors.
"This case was electronically filed on September 29, 2022, but the
documents submitted did not include a scanned copy of the
originally signed bankruptcy petition as required by paragraph 9(c)
of the court's order authorizing electronic case filing. It is
hereby ORDERED that the voluntary petition is stricken and this
case is dismissed without prejudice. The automatic stay on creditor
actions against the debtor and the debtor's property is removed
pursuant to 11 U.S.C. Sec. 362(c)(2)(B)," Judge Paul Singleton
said.
About Northside Ventures LLC
Northside Ventures LLC is a Single Asset Real Estate (as defined in
11 U.S.C. Sec. 101(51B)).
Northside Ventures LLC filed a petition for relief under Chapter 11
of the Bankruptcy Code on Sept. 29, 2022. In the petition filed by
Jason Gatzka, as manager, the Debtor reported assets and
liabilities between $1 million and $10 million each.
The Debtor is represented by Bruce de'Medici of SmithAmundsen LLC.
NRP LEASE: 11th Circuit Reverses, Rules Against Live Oak
--------------------------------------------------------
In the case styled In Re: NRP LEASE HOLDINGS, LLC, et al., Debtors.
1944 BEACH BOULEVARD, LLC, Plaintiff-Appellant, v. LIVE OAK BANKING
COMPANY, Defendant-Appellee, Case No. 21-11742 (11th Cir.), the
United States Court of Appeals for the Eleventh Circuit has entered
a decision concluding that Live Oak Banking Co.'s financing
statements are "seriously misleading" because they fail
sufficiently to provide the name of the debtor, and therefore
ineffective to perfect a security interest in 1944 Beach Boulevard,
LLC's assets.
Under Florida Statute, in order to perfect a security interest, "a
creditor must file a 'financing statement' with the Florida Secured
Transaction Registry," and "a financing statement must provide
three pieces of information to be considered sufficient for
perfection: (1) the name of the debtor; (2) the name of the secured
party; and (3) a description of the collateral covered by the
financing statement."
At the outset, Beach Boulevard and its affiliated businesses were
jointly and severally liable to Live Oak on two loans which
purported to be secured by a blanket lien on all of Beach
Boulevard's assets. In an attempt to perfect its security interest
in these assets, Live Oak filed two financing statements with the
Registry identifying the debtor as '1944 Beach Blvd., LLC' instead
of its legal name, '1944 Beach Boulevard, LLC', as listed in the
articles of organization filed with the Florida Secretary of
State.
The Appellate Court notes that under the Florida Statute, the
"first subsection states that a financing statement may contain
minor errors or omissions and remain effective to perfect a
security interest, unless the error or omission renders the
financing statement 'seriously misleading.' While the second and
third subsections of the statute define "seriously misleading" as
it relates to errors or admissions in naming the debtor. In
addition, the Florida Statute "creates a zero-tolerance rule, under
which a financing statement that fails to name the debtor is
"seriously misleading". The statute also creates a "safe harbor
exception" to the zero-tolerance rule providing that a financing
statement with errors or omissions in naming a debtor "will still
be effective to perfect a security interest so long as 'a search of
the records of the filing office under the debtor's correct name,
using the filing office's standard search logic, if any, would
disclose' the financing statement."
In a decision penned by Circuit Judge Lagoa, the Appellate Court
concludes concluded that Live Oak did not perfect its security
interest in 1944 Beach Boulevard, LLC's assets because the two
financing statements filed with the Registry were "seriously
misleading", as the Registry does not implement a "standard search
logic" necessary to trigger the safe harbor exception set forth in
the Florida Statute.
The Appellate Court reverses the district court's order affirming
the bankruptcy court's grant of summary judgment for Live Oak, and
remands for further proceedings consistent with the opinion.
About NRP Lease Holdings
NRP Holdings, LLC, is a leader in the regional family entertainment
center business. Through its operating subsidiaries, NRP Holdings
manages eleven parks in Florida, North Carolina, New York, Kansas,
Ohio, Texas and Missouri. While the attractions vary by park
venue, they typically include miniature golf, laser tag, arcade
games, batting cages, go-carts, bumper boats, roller coasters,
snack bars and waterslides.
NRP Lease Holdings and its affiliates that have filed voluntary
petitions seeking relief under Chapter 11 of the Bankruptcy Code
(Bankr. M.D. Fla. Lead Case No. 19-04607) on Dec. 5, 2019. The
petition was signed by Henry P. Woodburn III, manager. At the time
of filing, NRP Lease and Adventure Holdings each estimated up to
$50,000 in assets and $1 million to $10 million in liabilities.
Richard R. Thames, Esq. at THAMES MARKEY & HEEKIN, P.A., is serving
as counsel to the Debtors.
O'BRIEN FAMILY: Seeks to Amend Approval of $2.7-Mil. Property Sale
------------------------------------------------------------------
The O'Brien Family Land Trust asks the U.S. Bankruptcy Court for
the Southern District of Florida to amend the order authorizing its
sale of its residential real property located at 2817 N. Atlantic
Blvd., in Fort Lauderdale, Florida 33308, and which is legally
described as LAUDERDALE BEACH 4-2 B LOT 9 E 20.8 LESS S 25 LOT 10
LESS S 25 BLK 7, to Carlo Hermo and Claudia Marcela Hermo (or
related entity) for $2.71 million.
The Debtor filed a Motion to Sell Free And Clear Of Liens on Aug.
8, 2022 and First Mortgagee filed its Response on Aug. 16, 2022
which was a "full payment" based objection with conditions to allow
the sale noted therein, including a provision that payoff would be
based on a current and unexpired written payoff statement from
First Mortgagee.
On Sept. 7, 2022, a payoff letter was sent via email to counsel for
the Debtor indicating the payoff of the first mortgage to be
$2,431,459.79 and subject to final reviewbySelect Portfolio
Servicing, Inc., and the Noteholder (First Mortgagee) with such
payoff noted to be good through Sept. 30, 2022.
At hearing to consider the Sale Motion on Sept. 8, 2022, the
counsel for First Mortgagee's voiced conditions to allow First
Mortgagee’s consent to the sale and madereference on the record
to the Sept. 27, 2022 payoff letter and the required amount to
payoff the obligation to the First Mortgagee to be $2,431,459.79.
The Court ruled to allow the sale subject to full payment to First
Mortgagee, at closing, based on the current payoff letter from
First Mortgagee.
On Sept. 11, 2022, the Debtor's counsel sent the proposed Sale
Order to First Mortgagee's counsel and the U.S. Trustee. On Sept.
12, 2022, the counsel for First Mortgagee indicating the Sale Order
needed to be revised. However, undersigned counsel inadvertently
had forwarded the Order to staff for upload.
The Debtor's counsel was suffering from COVID during the hearing on
Sept. 8, 2022 and the counsel for First Mortgagee was undergoing
surgery on Sept. 15, 2022. The Debtor's counsel's staff came down
with COVID during the week of Sept. 12 to 16, 2022 after uploading
the Sale Order and didn't see the counsel's emails stating there
were changes that needed to be made.
The Sale Order is incorrect/objectionable for the following
reasons:
a) It incorrectly states/implies that First Mortgagee did not
Object/Respond to the relief sought.
b) It includes findings which were not the subject of
judicial determination.
c) Reference is made to an expired payoff statement from
First Mortgagee.
d) The Order, at paragraph 1, inadvertently makes reference
to terms of the Debtor's Plan of Reorganization.
e) The Order does not contain certain aspects of the Court's
Ruling that the counsel for First Mortgagee requested.
The Debtor's counsel communicated with the counsel for First
Mortgagee immediately upon receiving the signed order that she
would amend the Sale Order and include their agreed language.
About The O'Brien Family Land Trust
The O'Brien Family Land Trust is a Single Asset Real Estate (as
defined in 11 U.S.C. Sec. 101(51B)).
The O'Brien Family Land Trust sought protection under Chapter 11
of
the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 22-14760) on
June 20, 2022, listing up to $10 million in both assets and
liabilities. Judge Peter D. Russin oversees the case.
Susan D. Lasky, Esq., at Sue Lasky, PA is the Debtor's counsel.
OMNICROBE NATURAL: Files Subchapter V Case Amid Ownership Issuee
----------------------------------------------------------------
Omnicrobe Natural Solutions Inc. filed for chapter 11 protection in
the Northern District of Texas. The Debtor elected on its
voluntary petition to proceed under Subchapter V of chapter 11 of
the Bankruptcy Code.
The Company is a technology marketing, manufacturing, and
distribution company focused on commercialization of a specific
organic microbe consortium.
The Company was formed by Lanier M. Davenport on May 7, 2021, and
at that time Mr. Davenport caused the Company to issue him
15,800,000 shares of Common Stock, no par value. In addition, in
August 2021, Mr. Davenport caused the Company to issue an
additional 24,000,000 shares of Common Stock to him and his
affiliates, for a total of 39,800,000 subscribed shares
(collectively with the original 15,800,000 shares, the "Davenport
Shares").
From May 7, 2021, through April 27, 2022, Mr. Davenport and others
traveled throughout the country soliciting investments from Mr.
Davenport's contacts. Among those solicited were investors in
other businesses formed by Mr. Davenport that were failed or
failing. From May 7, 2021, through September 30, 2021, Mr.
Davenport solicited and received common share subscriptions for
$0.00001 per common share from certain investors in prior failed
Davenport businesses, raising only $877 in capital for 87,700,000
common shares being subscribed.
On April 27, 2022, Mr. Davenport and the Company entered into an
agreement pursuant to which Mr. Davenport's employment with the
Company was terminated, he resigned as Chairman of the Board,
President and in all other corporate capacities, and he and his
affiliates transferred all the issued Davenport Shares to a group
of preferred stockholders of the Company (the "Ownership Change").
Following the Ownership Change, pursuant to Actions Taken by
Written Consent of the Voting Shareholders of the Company effective
May 3, 2022, the shareholders elected the following Directors to
serve until the next annual meeting of shareholders of the Company:
Earl Bradley, III, Robert Polley, William Ashley Pace, Jerry
Cooksey and Matt Truelove. Following the Director election, the new
Directors appointed the following officers to serve until the next
annual Board meeting: Earl Bradley, III, Chairman of the Board;
Robert Polley, Chief Executive Officer; and Tom Freeman, Chief
Marketing Officer, Treasurer and Secretary. In addition, the Board
moved to eliminate the position of Chief Technology Officer
previously held by Karen Styes and the position of Global Sales
Director held by John Blalock.
The Company continued its efforts to build a facility in Colorado
City, Texas and to produce its initial batches of microbes during
the spring and summer of 2022, exhausting its operating cash in the
process.
Beginning in May 2022, Earl Bradley, Chairman, assisted Robert
Polley, CEO, in determining methods to raise the additional capital
that the Company would need to continue operations. During that
investigation, Mr. Bradley noted numerous inaccurate and incomplete
disclosures were provided in private placement memoranda ("PPMs")
issued by the Company under the prior management. Counsel was
engaged to determine a course of action to correct the inaccurate
and incomplete disclosures, and it was determined that a corrected
PPM would be required to allow prior preferred share subscribers to
make an informed decision to affirm or revoke their prior
subscription election. The revised PPM would also importantly allow
additional investments to be solicited, from existing or new
investors.
Counsel also advised interim financing should only be obtained from
insiders with adequate knowledge of the various issues, as adequate
disclosure to non-insiders was determined to be excessively
difficult to prepare and could make the Company liable for wrongful
disclosure.
On May 24, 2022, Mr. Bradley advised the Board that additional
funding was required to continue operations, and reported the
issues noted in the prior PPMs would require significant time and
resources to address. Further funding was pledged by another
director that was personally unable to raise funds, which put Mr.
Bradley as the largest shareholder in the position of having to
inject additional funds until the new PPM was completed. The Board
approved up to $5,000,000 in convertible debt be issued to insiders
at a rate of 7.5%. Mr. Bradley provided $500,000 in funding on
June 13, 2022, through the convertible debt offering, an additional
$250,000 on July 25, 2022, and another $200,000 on September 13,
2022, for a total $950,000. The revised PPM was presented to the
Board of Directors on August 19, 2022 and approved for
distribution.
On Aug. 20, 2022, counsel representing Karen Styes and John Blalock
forwarded a letter to the Company asserting her clients' rights to
the common shares represented by their respective rejected common
share subscriptions, as well as demanding their employment be
reinstated for wrongful termination. Upon receipt of the letter,
the Board suspended delivery of the PPM while the Company
investigated these claims.
The Company's common stock ownership remains in question, and, as a
result the Company has been unable to prepare adequate disclosures
to solicit additional investments. Furthermore, for the same
reasons, the Company has been unable to issue corrected disclosures
to prior preferred share subscribers, exposing the Company to
significant additional risks of litigation.
Unable to raise capital through the sale of its stock, and not
having sufficient funds to continue operations without an infusion
of funds, the Debtor has been forced to seek bankruptcy relief.
Omnicrobe listed debt of less than $10 million and between 1 and 49
creditors. The petition states funds will be available to
unsecured creditors.
About Omnicrobe Natural Solutions
Omnicrobe Natural Solutions Inc. provides cultures of
microorganisms for agriculture and bioremediation applications.
Omnicrobe Natural Solutions filed a petition for relief under
Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex.
Case No. 22-50147) on Sept. 28, 2022. In the petition filed by
Robert Polley, as CEO, the Debtor reported assets and liabilities
between $1 million and $10 million each.
Behrooz P. Vida has been appointed as Subchapter V trustee.
The Debtor is represented by David R. Langston of Mullin, Hoard &
Brown.
PADAGIS HOLDING: Fitch Alters Outlook on 'BB-' IDR to Negative
--------------------------------------------------------------
Fitch Ratings has affirmed at 'BB-' Padagis Holding Company LLC
(Padagis) and Padagis LLC's Issuer Default Ratings (IDRs) and
revised the Rating Outlooks to Negative from Stable. Fitch has also
affirmed the 'BB+'/'RR1' ratings of Padagis LLC's senior secured
revolving credit facility and senior secured term loan.
The ratings reflect Padagis' solid position in the extended
topicals generic prescription drug market and historical ability to
generate meaningful FCF.
The Negative Outlooks (RONs) reflect the current operating
headwinds, notably supply chain issues, pricing and COVID-19
impacts, which are having a material impact on both revenues and
margins and are expected to stress leverage (total debt/EBITDA)
above 4.5x.
KEY RATING DRIVERS
Continued Pricing Pressure: Fitch expects price erosion will
persist at 4%-5% annually as the company continues to experience
pressures despite having moderated relative to 2018-2019. The key
drivers behind the pricing reductions were competitive regulatory
approvals for products in its portfolio resulting in increased
competition. However, the company focuses on more complex,
higher-margin pharmaceutical formulations. Continued increases in
manufacturing efficiencies and new product launches should help to
mitigate this pressure.
R&D/New Products Important to Growth: Fitch expects the company
will focus on complex formulations, first-to-file opportunities,
generic drugs that require clinical studies or have other active
pharmaceutical ingredients and/or regulatory hurdles. In the
continuum of generic prescription drugs, there are varying degrees
of complexity and difficulties in manufacturing processes offer
barriers to entry and competitive advantages. Padagis currently has
more than 65 abbreviated new drug applications and three new drug
applications.
Coronavirus Impact Moderating: The negative impact from COVID-19
has softened since the second quarter of 2020. However, it has
caused some selective supply and manufacturing disruptions given
temporary labor shortages due to COVID-19 infections. Given the
current vaccines and therapeutics now on the market, Fitch believes
the threat of more COVID-19 related labor shortages will lessen
going forward.
Elevated Leverage: Fitch assumes leverage will peak in 2022 and
will improve back to the 3.5x-4.5x range in 2024 as operating
EBITDA improves assuming the aforementioned headwinds soften.
Leverage is notably higher than Fitch's prior expectations and
would've been higher but not for the $50 million voluntary term
loan repayment in 2021. The RONs consider the potential for the
revenue and margin headwinds to persist longer and more
meaningfully than assumed.
Fitch expects Padagis will consistently generate positive FCF in
2023 and beyond, while prioritizing a significant portion of that
for selective M&A and modest debt reduction. In addition, the
company will invest in organic growth opportunities through ongoing
research and development efforts, investing in new manufacturing
capabilities that complement its extended topical focus, and
expanding into new geographies. Capital expenditure requirements
should remain manageable for the firm.
Favorable Demographics: Fitch expects aging populations in
developed markets and increasing access to healthcare in emerging
markets will support volume growth for Padagis and its generic
pharmaceutical peers. In addition, continued patent expires on
branded drugs will provide greenfield opportunities for the
industry. However, price erosion is expected to meaningfully offset
such growth over the near term.
Albuterol Relaunch: Fitch does not expect the company to
reintroduce its Albuterol product until the latter half of 2024
after initiating a voluntary nationwide recall of its albuterol
sulfate inhalation aerosol in September 2020. The recall was driven
by complaints from patients that some units may not dispense due to
clogging. The company is working on corrective action plans but
contributions are not assumed in Fitch's forecasts for 2022 and
2023.
DERIVATION SUMMARY
Padagis' (BB-/RONs) closest key peers are Teva (BB-/Stable) and
Viatris (BBB/Stable) in terms of manufacturing generic prescription
pharmaceuticals and similar U.S. customers. However, Teva and
Viatris are significantly larger in scale, breadth and depth of
products and Teva is pursuing biosimilar drugs, differentiating it
from Padagis.
Padagis primarily manufactures generic prescription drugs, while
Viatris markets branded generic prescription drugs in emerging
markets and Teva markets a few branded drugs that have market
exclusivity Both also have greater geographic reach, given than
Padagis primarily generates approximately 89% of its revenue in the
U.S. Padagis' contingent liability risk is more benign than Teva's
and generally similar to Viatris'.
Fitch expects Padagis to operate with leverage (total debt/EBITDA)
at or below 4.5x. Teva is more highly leveraged most other 'BB'
category health care companies that typically have leverage
sensitivities in the 3.0x-4.5x range.
Parent-Subsidiary Linkage
The approach taken is a weak parent (Padagis Holding Company
LLC)/strong subsidiary (Padagis LLC). Using its Parent and
Subsidiary Linkage Rating Criteria, Fitch concludes there is open
ring fencing and access & control. As such, Fitch rates the parent
and subsidiary at the consolidated level with no notching between
the two.
KEY ASSUMPTIONS
- Low- to mid-single-digit organic revenue growth beginning in
2023, driven primarily by new products, partly offset by low- to
mid-single-digit price declines;
- Incremental margin improvement driven by a focus on costs and an
improving sales mix;
- Manageable annual capital expenditures of $45 million-$50 million
in 2023, stabilizing to $20 million-$25 million after 2023;
- Annual FCF (cash flow from operations minus capital expenditures
minus dividends) $50 million-$70 million during 2023-2025;
- Significant portion of FCF prioritized for debt repayment;
- Targeted acquisitions of products within or adjacent to its core
competencies;
- No cash dividends during the forecast period;
- Total Debt with equity credit/EBITDA generally to or below 4.5x
during by the end of 2023.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Improving operations including new product development that
support long-term positive revenue growth and stable operating
margins;
- Continued progress on expanding its product portfolio and
geographic reach;
- A commitment and ability to a cash deployment strategy that
maintains total debt/EBITDA durably below 3.5x.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Material and lasting deterioration in operations and FCF,
possibly driven by lack of new product launches and increased
pricing pressure;
- Leveraging acquisitions without the prospect of timely
debt/leverage reduction;
- Total debt/EBITDA persistently above 4.5x.
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity/Manageable Maturities: At July 2, 2022, Padagis
had adequate liquidity, including $90 million availability on a
$100 million revolving credit facility that matures in 2026 when
factoring in $10 million of letters of credit. Liquidity should be
bolstered by consistent cash generation beginning in 2023 and
beyond. At July 2, 2022, Padagis had $17.1 million in cash and cash
equivalents. Fitch expects liquidity to remain strong throughout
the ratings horizon. Debt maturities are manageable as the only
maturity post-RCF is $800 million of term loans due 2028.
Recovery Analysis
The senior secured revolver and term loan are considered Category 1
liens expected to have outstanding recoveries in line with an 'RR1'
and are notched two levels above the IDR to 'BB+'.
ISSUER PROFILE
Padagis develops, manufactures, and markets a portfolio of generic
prescription drugs primarily for sale in the U.S. and roughly 11%
of its revenue is generated in Israel. Fitch expects the company to
expand into new geographies. The company's product portfolio
includes an array of dosage forms such as creams, ointments,
lotions, gels, shampoos, foams, suppositories, sprays, liquids,
suspensions and solutions. The portfolio also includes select
injectables, hormones, oral solid dosage forms, oral liquid
formulations and controlled substances.
ESG CONSIDERATIONS
Padagis Holding Company LLC has an ESG Relevance Score of '4' for
Governance Structure due to due to pressure to contain health care
spending growth, a highly sensitive political environment, exposure
to price-fixing and opioid litigation, and social pressure to
contain costs or restrict pricing, which has a negative impact on
the credit profile, and is relevant to the rating[s] in conjunction
with other factors.
Padagis LLC has an ESG Relevance Score of '4' for Exposure to
Social Impacts due to due to pressure to contain health care
spending growth, a highly sensitive political environment, exposure
to price-fixing and opioid litigation, and social pressure to
contain costs or restrict pricing, which has a negative impact on
the credit profile, and is relevant to the rating[s] 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.
Debt Rating Recovery Prior
---- ------ -------- -----
Padagis LLC LT IDR BB- Affirmed BB-
senior secured LT BB+ Affirmed RR1 BB+
Padagis Holding
Company LLC LT IDR BB- Affirmed BB-
PEAK PROPERTY: Selling Two Properties in Denver for $422.5K
-----------------------------------------------------------
Peak Property Group, LLC, asks the U.S. Bankruptcy Court for the
District of Colorado to authorize the sale of the following:
a. 2700 S. Holly Street #112, Denver, Colorado 80222, to 2000
Residential Trust for $190,000; and
b. 2700 S. Holly Street #221, Denver, Colorado 80222, to
Alprintis Bohannan and Levi Obviate for $232,500.
The Debtor owns, manages, and leases four single-family residential
properties in Colorado and California. USA Loans LLC holds a first
lien against the Properties. The Debtor stipulated in Adversary
Proceeding No.20-1309-KHT that pre-petition principal, interest,
fees, and costs owed to USA Loans total $600,000. Post-petition
interest, fees, and costs will be determined at an evidentiary
hearing scheduled for Nov. 15, 2022. The Court avoided junior
liens against the Properties in favor of Irma Martinez pursuant to
a judgment entered in Adversary Proceeding No. 20-1290-KHT on May
6, 2022. No other liens encumber the Properties.
The Debtor's retained real estate broker listed the Properties for
sale in mid-August and conducted over 30 showings for prospective
buyers. The Debtor listed the Properties at appraised values
recently it obtained ($236,000 for the Holly #112 Property and
$245,000 for the USA Loans LLC). However, the Denver residential
real estate market has softened considerably in recent weeks and
all offers received were below appraised values.
The Debtor agreed to sell the Holly #1 12 Property to the Holly
#112 Buyer for $190,000. The Buyer paid into escrow an earnest
money deposit of $3,500. Closing is expected to occur in
mid-November 2022. The Debtor has no prior relationship to or
connection with the Holly #112 Buyer.
The Debtor agreed to sell the Holly #221 Property to the Holly #221
Buyers for $232,500. The Buyers paid into escrow an earnest money
deposit of $3,500. Closing is expected to take place on Nov. 23,
2022. The Debtor has no prior relationship to or connection with
the Holly #221 Buyer.
The Debtor's Broker previously approved by the court will share
with the Buyers' agents a 6% commission from gross sale proceeds.
No tenants currently occupy the Properties.
The Debtor seeks authority to sell the Properties to the Buyers
pursuant to 11 U.S.C. Section 363(b). Sound busines reasons exist
to sell the Properties to the Buyers. There is no relationship or
affiliation between the Debtor and the Buyers. The Debtor accepted
the Buyers' offers and entered into the Agreements after the
Properties had been marketed to the public through the Multiple
Listing System. It believes the contract prices accepted will
generate the greatest proceeds for the Properties under existing
market conditions.
The Debtor further seeks authority to sell the Properties to the
Buyers free and clear of existing liens. Payment of net proceeds
to USA Loans will reduce post-petition interest and streamline the
Debtor's operations. Sale of the Properties also will further
reduce tax and maintenance expenses and promote the Debtor's
efforts to confirm a Chapter 11 Plan. The Properties are not
generating income, as the tenants moved out the last time the
Debtors attempted to sell the Properties in these Chapter 11
proceedings.
The Debtor further requests waiver of the 14-day stay of any order
granting the relief requested imposed under Fed. R. Bankr. P.
6004(h). Waiver of the stay will ensure closure of these sale
transactions and hasten payment of net proceeds to USA Loans on its
Allowed Secured Claim.
About Peak Property Group
Peak Property Group LLC owns four properties in Denver, Colo., and
La Quinta, Calif., having an aggregate comparable sale value of
$1.09 million.
Peak Property Group sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Colo. Case No. 20-16088) on Sept. 12,
2020. Kip Korthuis, sole member, signed the petition. At the time
of the filing, the Debtor disclosed $1,102,686 in assets and
$1,685,781 in liabilities. Judge Kimberley H. Tyson oversees the
case. Shilliday Law, PC is the Debtor's legal counsel.
PENNY CAMEL DUPLECHIEN: Trustee Selling Lafayette Asset for $250K
-----------------------------------------------------------------
Dwayne M. Murray, the chapter 11 trustee for the estate of Penny
Camel Duplechien, asks the U.S. Bankruptcy Court for the Western
District of Louisiana to authorize the sale of the Debtor's
townhome located at 201 Settlers Trace #3411 in Lafayette,
Louisiana, to Michael Maraist for $250,000.
As the Court is aware, the Trustee's Plan was confirmed by Order
dated Sept. 1, 2022. That Order is now final and non-appealable.
Among other things, the Trustee's Plan calls for the sale of the
Subject Property.
The Trustee previously obtained Court approval to hire a real
estate broker, Beau Bourque and Beacon Realty, LLC, to sell the
Subject Property at a discounted commission of 5%. The Subject
Property was listed on the MLS on Sept. 3, 2022 for a list price of
$260,000. The Trustee's Plan binds Gulf Coast Bank to release its
mortgage for a price sufficient for it to receive $235,000.
Shortly thereafter, Beacon began showing the Subject Property and
has now received two offers, one for $245,000 and the other for
$250,000, with both subject to bankruptcy court approval. The
lower offer has since been withdrawn. The highest offer received
by Beacon was made by the Buyer for $250,000, in accordance with
the terms of the proposed Louisiana Residential Agreement to Buy or
Sell, along with an Addendum thereto.
The Offer is not subject to financing (cash at closing), appraisal
or inspection. No property has to be sold first by the Buyer and
the sale is "as is, where is" with an anticipated closing date of
Oct. 28, 2022. Certainly given the fact that multiple offers were
received and this Offer is very close to the list price, the
Trustee, in his business judgment, believes it makes little
economic sense to attempt to obtain more with an auction process.
That reality is made all the more compelling by the risk of losing
the very attractive "bird in hand." Indeed, the Broker has already
conducted something akin to an auction to arrive at the Offer.
Upon belief, the only material encumbrance1 against the Subject
Property is the mortgage held by Gulf Coast Bank for $235,000 as
set forth in the Trustee's Plan. That balance will either be
satisfied in full at closing or Gulf Coast Bank with consent to the
sale and release.
Considering the favorable result and the fact that this sale's
closing will result in the occurrence of the effective date of the
Trustee's Plan, there is simply no good business justification for
additional marketing delay or a costly court-supervised auction.
The Trustee thus strongly believes the proposed sale should
proceed.
After notice and a hearing, the Trustee prays for an order (a)
approving the sale of the Subject Property to the Buyer for
$250,000, free and clear of liens, claims and encumbrances, with
all such liens, claims and encumbrances, including the $235,000
mortgage in favor of Gulf Coast Bank, attaching to the proceeds and
(b) authorizing/ratifying the Trustee, on behalf of the estate, to
sign the attached buy or sell agreement and addenda plus any other
documentation necessary to consummate the sale on behalf of the
estate.
A copy of Agreement is available for free at
https://tinyurl.com/5avtue4t from PacerMonitor.com free of charge.
Counsel for Trustee:
Brett P. Furr, Esq.
William H. Patrick, IV, Esq.
TAYLOR, PORTER, BROOKS & PHILLIPS, L.L.P
P. O. Box 2471
Baton Rouge, LA 70821-2471
Telephone: (225) 387-3221
Facsimile: (225) 346-8049
The bankruptcy case is In re: Penny Camel Duplechien, Case No.
21-50689 (Bankr. W.D. La.).
PG&E CORP: Fire Victim Trust Sells 35 Million Shares
----------------------------------------------------
The PG&E Fire Victim Trust (FVT) on Oct. 5 sold 35 million shares
of PG&E stock as part of its work to compensate the victims of
fires in California from 2015 to 2018. The Trust is unique in its
creation as it was funded with both cash and shares of stock when
it was formally created in 2020 pursuant to PG&E's Chapter 11 Plan
of Reorganization.
"While the stock price has always been unpredictable, our work at
the Trust has remained the same: to help fire victims recover from
the devastation of the fires in California and move on with their
lives," said Trustee Cathy Yanni. "Every decision our team makes --
including the sale of stock -- is driven by this mission. The sale
will help us continue resolving claims and getting money to fire
victims equitably and efficiently."
On July 1, 2020, 476,995,175 shares of common stock were
transferred to the Trust followed on August 3, 2020, with an
additional 748,415 shares transferred. Any sale, disposition or
other transaction involving the Trust's shares follow strict
guidelines as outlined in filings with the U.S. Bankruptcy Court
and the U.S. Securities and Exchange Commission.
As of September 30, the Trust had issued determination notices to
82% of all claimants and paid claimants $5 billion. Less than 1% of
all claims have been appealed. When the Trust was created, it was
funded half in cash, and half in PG&E stock.
"The Trust is a limited fund, meaning it has finite money," said
Tim Jorstad, Trust CFO. "We are required to administer claims and
pay eligible fire victims each an equal proportion of awards. The
sale of stock ensures every victim will receive the same pro rata
percentage as everyone else."
The Fire Victim Trust:
The Fire Victim Trust evaluates, administers, processes and
resolves eligible claims arising from the 2015 Butte Fire, 2017
North Bay Fires, and 2018 Camp Fire. Under the direction of the
Trustee and Claims Administrator, the Fire Victim Trust provides an
efficient and equitable process to review claims and compensate
fire victims for both economic and noneconomic damages caused by
these fires, including destruction or damage to real estate and
personal property, additional living expenses, lost wages, business
losses, personal injury or death and related medical expenses, and
emotional distress. To date, the Fire Victim Trust has disbursed $5
billion to fire victims. For more information about the Fire Victim
Trust, please visit www.firevictimtrust.com.
About PG&E Corporation
PG&E Corporation (NYSE: PCG) -- http://www.pgecorp.com/-- is a
Fortune 200 energy-based holding company, headquartered in San
Francisco. It is the parent company of Pacific Gas and Electric
Company, an energy company that serves 16 million Californians
across a 70,000-square-mile service area in Northern and Central
California.
PG&E Corporation and its regulated utility subsidiary, Pacific Gas
and Electric Company, faced extraordinary challenges relating to a
series of catastrophic wildfires that occurred in Northern
California in 2017 and 2018. The utility faced an estimated $30
billion in potential liability damages from California's deadliest
wildfires of 2017 and 2018.
On Jan. 29, 2019, PG&E Corp. and its primary operating subsidiary,
Pacific Gas and Electric Company, filed voluntary Chapter 11
petitions (Bankr. N.D. Cal. Lead Case No. 19-30088). As of Sept.
30, 2018, the Debtors, on a consolidated basis, had reported $71.4
billion in assets on a book value basis and $51.7 billion in
liabilities on a book value basis.
Weil, Gotshal & Manges LLP and Cravath, Swaine & Moore LLP served
as PG&E's legal counsel, Lazard as its investment banker and
AlixPartners, LLP as the restructuring advisor to PG&E. Prime Clerk
LLC is the claims and noticing agent.
PG&E has appointed James A. Mesterharm, a managing director at
AlixPartners, LLP, and an authorized representative of AP Services,
LLC, to serve as Chief Restructuring Officer. In addition, PG&E
appointed John Boken also a Managing Director at AlixPartners and
an authorized representative of APS, to serve as Deputy Chief
Restructuring Officer.
Morrison & Foerster LLP served as the Debtors' special regulatory
counsel. Munger Tolles & Olson LLP also served as special counsel.
The Office of the U.S. Trustee appointed an official committee of
creditors on Feb. 12, 2019. The Committee retained Milbank LLP as
counsel; FTI Consulting, Inc., as financial advisor; Centerview
Partners LLC as investment banker; and Epiq Corporate
Restructuring, LLC as claims and noticing agent.
On Feb. 15, 2019, the U.S. trustee appointed an official committee
of tort claimants. The tort claimants' committee is represented by
Baker & Hostetler LLP.
* * *
PG&E Corporation and Pacific Gas and Electric Company announced
July 1, 2020, that PG&E has emerged from Chapter 11, successfully
completing its restructuring process and implementing PG&E's Plan
of Reorganization ("Plan") that was confirmed by the United States
Bankruptcy Court on June 20, 2020.
For the benefit of fire victims, the Plan provided for a Fire
Victim Trust, which was funded with an oft-stated value of $13.5
billion, to be half in cash and half in new company PG&E common
stock. The $6.75 billion in cash was paid. With respect to the
stock consideration, 478 million shares of PG&E stock were
delivered to the Fire Victim Trust in accordance with an agreed-to
formula under the Plan.
PRICHARD WATERWORKS: S&P Places 'B' Rev. Bonds Rating on Watch Neg
------------------------------------------------------------------
S&P Global Ratings has placed its 'B' rating on Prichard Waterworks
and Sewer Board, Ala.'s series 2019 water and sewer revenue bonds
on CreditWatch with negative implications.
"The CreditWatch placement reflects the lack of audited financial
statements for nearly two years since the last audited fiscal year
Sept. 30, 2020," said S&P Global Ratings credit analyst Chelsy
Shipman.
In conjunction with receipt of audited financial statements, S&P
would likely seek additional information related to improvements or
developments in the following:
-- Risk management, oversight, and internal controls;
-- The board's future financial position;
-- The ongoing federal criminal investigation into the alleged
mismanagement of funds by board employees;
-- Uncertainty related to the board's ongoing hydrant fee
litigation with the City of Prichard; and
-- Additional civil litigation filed against the board by its
customers related to billing.
S&P said, "If the board's audited financial statements ended Sept.
30, 2021, are not available within 90 days, then we will likely
withdraw the affected rating, preceded, in accordance with our
policies, by any change to the rating that we consider appropriate,
based on available information.
"However, if we receive information that we consider sufficient and
of satisfactory quality, we will conduct a review and take a rating
action within 90 days of this CreditWatch placement."
PT GARUDA INDONESIA: Chapter 15 Case Summary
--------------------------------------------
Chapter 15 Debtor: PT Garuda Indonesia (Persero) Tbk
Jalan Kebon Sirih No. 46A
Jakarta, Indonesia
Business Description: Founded in 1950, Garuda is the national
airline of Indonesia, which as of July
2022, flying to 44 cities in Indonesia
and 14 international destinations.
Foreign Proceeding: Indonesian PKPU proceeding
Chapter 15 Petition Date: September 23, 2022
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 22-11274
Judge: Hon. Lisa G. Beckerman
Foreign Representative: Irfan Setiaputra
Jalan Kebon Sirih No. 46A
Jakarta, Indonesia
Foreign
Representative's
Counsel: Thomas S. Kessler, Esq.
Richard J. Cooper, Esq.
CLEARY GOTTLIEB STEEN & HAMILTON LLP
One Liberty Plaza
New York, New York 10006
Tel: 212-225-2000
Fax: 212-225-3999
Email: tkessler@cgsh.com
Estimated Assets: Unknown
Estimated Liabiliities: Unknown
A full-text copy of the Chapter 15 is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/3QAR4UA/PT_Garuda_Indonesia_Persero_Tbk__nysbke-22-11274__0001.0.pdf?mcid=tGE4TAMA
QHC FACILITIES: Blue Diamond Buying All Assets for $4.5 Million
---------------------------------------------------------------
QHC Facilities, LLC, and its affiliates ask the U.S. Bankruptcy
Court for the Southern District of Iowa to authorize the bidding
procedures in connection with the sale of substantially all of
their assets to Blue Diamond Equities, LLC, for $4.5 million.
A hearing on the Motion is set for Oct. 13, 2022.
The Debtors made the business decision to pursue an orderly sale of
the Assets as a going concern to maximize value for the estates and
their creditors. On Jan. 24, 2022, they filed an application to
employ Newmark Real Estate of Dallas, LLC as their investment
banker to market the Assets and run an auction process to determine
the highest and best bid for the Assets.
On Jan. 28, 2022, the Debtors filed their First Sale Motion. On
Feb. 11, 2022, the Court entered a Bidding Procedures Order. On
March 4, 2022, pursuant to the Bidding Procedures Order, the
Debtors conducted an auction with respect to the Assets. They
determined the highest and best Qualified Bid for the Assets at the
Auction was made by Cedar Healthgroup, LLC and the second highest
and best Qualified Bid was made by Blue Diamond Equities, LLC.
On March 7, 2022, the Debtors filed the Notice of Successful
Bidder, and on March 8, 2022, the Notice of Successful Bidder was
served as set forth in the filed certificate of service's mailing
matrix. Attached as Exhibit A to the Notice of Successful Bidder
was the executed Asset Purchase Agreement between the Debtors and
Cedar. Also attached as Exhibit B to the Notice of Successful
Bidder was the Backup Bid APA between the Debtors and Blue Diamond,
dated Feb. 29, 2022.
On March 11, 2022, the Court held a Sale Hearing to consider
approval of the sale of the Assets to Cedar, free and clear of
liens, claims, interests, and encumbrances, and on March 17, 2022,
it entered the Sale Order authorizing the sale.
On March 24, 2022, the Court held a telephonic hearing and entered
an order stating that there was a breach by Cedar. The March 24
Order further approved the Backup Bidder, Blue Diamond (now
referenced as Blue Care Homes, LLC) as the designated purchaser of
the Facilities. Blue Care then entered into the Asset Purchase
Agreement with the Debtors dated March 25, 2022.
The Blue Care APA is substantially similar to the Blue Diamond
Backup Bid APA that was attached as Exhibit B to the Notice of
Successful Bidder. The only considerable differences between the
two include: purchase price, deposit amount, assumption of paid
time off obligations, and management agreement language versus
operation transfer agreement language.
The Blue Care APA is also substantially similar to the Cedar APA
that was attached as Exhibit A to the Notice of Successful Bidder
and the Sale Order. The only substantial differences between the
Cedar APA and the Blue Care APA are the following:
(a) The Cedar APA purchase price was $12.1 million, whereas
the Blue Care APA purchase price is $12 million.
(b) Due to the purchase price difference, the Cedar deposit
was $605,000, whereas the Blue Care deposit is $600,000 (the
Debtors note Blue Care only provided a $580,000 deposit).
(c) The Blue Care APA also includes language regarding the
Break-Up Fee which can be found in section 7.03 of the Blue Care
APA. The Cedar APA did not include any language discussing the
Break-Up Fee.
Therefore, the Debtors, the creditors, the residents, the executory
contract counterparties, and other interested parties were in all
material respects properly noticed of the Blue Care APA. Blue Care
has been managing the Facilities since March 28, 2022, pursuant to
executed Management Agreements between Blue Care and each of the
Debtor.
Blue Care is unwilling to close at its Backup Bid purchase price of
$12 million pursuant to the Blue Care APA. Blue Care and the
Debtors have engaged in good faith and arms' length negotiations
and have agreed to amend the Blue Care APA and Management
Agreements through a First Amendment to the Asset Purchase
Agreement and Management Agreements.
The material terms of such First Amendment are summarized as
follows:
(a) Purchase Price reduced from $12 million to $4.5 million.
(b) The following Facilities are being closed and are
Excluded Assets: QHC Humboldt South, LLC dba Humboldt Care Center
South, Crestview Acres, Inc. (Marion), Crestview Acres, Inc. dba
Sunnycrest Nursing Center, and QHC Mitchellville, LLC dba Mitchell
Village Care Center (collectively, "Discontinued QHC properties").
The costs of closure of these Discontinued QHC Properties is solely
borne by the Manager.
(c) Closing Date is Oct. 14, 2022, and the Outside Date is
Oct. 31, 2022.
(d) The Buyer and the Seller may engage Jeff Steggerda
and/or Brighton Consulting Group to bill and collect any
uncollected Pre-Term accounts receivable, and the cost of such
collection will be deducted from the collected Pre-Term accounts
receivable according to the 80/20 split.
(e) All causes of action against Cedar arising prior to
Closing and proceeds thereof are Excluded Assets.
(f) The Buyer will be obligated and solely responsible to
pay and satisfy the following Assumed Liabilities
(g) The Buyer is retaining and maintaining the Discontinued
QHC Properties' books and records, including any resident and
patient medical records as required by any and all applicable Laws
and other requirements of any Governmental Authority.
(h) The Buyer will assume the Medicare provider agreements
for QHC Humboldt North, LLC dba Humboldt Care Center North,
Crestridge, Inc. (Maquoketa) and QHC Fort Dodge Villa, LLC dba Fort
Dodge Villa Care Center.
(i) The Buyer will use the Seller’s current trade vendors
post-Closing to the extent such goods and/or services are necessary
for the operation of the Facilities and provided such goods and
services are offered to be provided in a commercially reasonable
manner and at a cost competitive with the current market.
(j) The Manager and the Buyer will pay Sellers a Services
Fee for assistance the Sellers provide related to vendor
disbursement and treasury activities performed from September 12,
2022 through the Closing. The Services Fee will be $45,000
(payable on Oct. 14, 2022 or the Closing, whichever is earliest)
plus $2,250 per Business Day after October 14, 2022 (payable on
Closing).
The sale provides for a sale of the Acquired Assets free and clear
of all interests, liens, claims and encumbrances. Any such
interests, liens, claims and encumbrance would attach to the
proceeds of the sale of the Acquired Assets.
Time is of the essence in approving and closing the sale, and any
unnecessary delay in closing the sale could result in the collapse
of the sale. Accordingly, the Debtors request the Court to reduce
the notice period from 21 to 14 days.
A copy of the Agreement is available for free at
https://tinyurl.com/bdcnf5xa from PacerMonitor.com free of charge.
About QHC Facilities
Clive, Iowa-based QHC Facilities, LLC, operates eight skilled
nursing facilities. The facilities include Crestview Acres in
Marion as well as in Tama, Madison, Humboldt, Jackson, Webster and
Polk counties and two assisted living centers. Collectively, the
facilities have a maximum capacity of more than 700 residents. The
company employs roughly 300 full-time and part-time workers.
QHC Facilities and its affiliates filed petitions for Chapter 11
protection (Bankr. S.D. Iowa Lead Case No. 21-01643) on Dec. 29,
2021. The affiliates are QHC Management LLC, QHC Mitchellville
LLC,
QHC Crestridge LLC, QHC Humboldt North LLC, QHC Winterset North
LLC, QHC Madison Square LLC, QHC Humboldt South LLC, QHC Villa
Cottages LLC, QHC Fort Dodge Villa LLC, and QHC Crestview Acres
Inc.
QHC Facilities reported $1 million in assets and $26.3 million in
liabilities as of the bankruptcy filing.
Judge Anita L. Shodeen oversees the cases.
Bradshaw Fowler Proctor & Fairgrave, PC and Dentons Davis Brown,
P.C. are the Debtors' bankruptcy counsels. Newmark Real Estate of
Dallas, LLC, and Gibbins Advisors, LLC, serve as the Debtors'
investment banker and restructuring advisor, respectively.
The U.S. Trustee for Region 12 appointed an official committee of
unsecured creditors in the Debtors' Chapter 11 cases. Troutman
Pepper Hamilton Sanders, LLP and Cutler Law Firm, P.C. serve as
the
committee's lead bankruptcy counsel and local counsel,
respectively.
QURATE RETAIL: Fitch Cuts LongTerm IDR to 'BB-', Outlook Stable
---------------------------------------------------------------
Fitch Ratings has downgraded Qurate Retail, Inc.'s (Qurate),
Liberty Interactive LLC's (Liberty) and QVC Inc.'s (QVC or QxH)
Long-Term Issuer Default Ratings (IDRs) to 'BB-' from 'BB'. Fitch
has also downgraded QVC's senior secured debt to 'BB+'/'RR1' from
'BBB-'/'RR1', Liberty's senior unsecured debt to 'BB-'/'RR4' from
'BB'/'RR4' and Qurate's cumulative redeemable preferred shares to
'B+'/'RR5' from 'BB-''RR5'. The Rating Outlook is Stable.
The downgrades are driven by significant weakness in Qurate's
operating performance due to supply chain and macroeconomic issues,
exacerbated by the loss of its Rocky Mount fulfilment center.
Although Fitch views Qurate's recent capital structure changes
positively, execution and expense management challenges are
expected to continue to be a near-term drag.
KEY RATING DRIVERS
Operating Performance Weakness: Qurate's sequential operating
performance has worsened over the past four quarters due primarily
to supply chain dislocation and macroeconomic concerns. Beginning
in 2Q21, global supply chain issues, driven by shipping delays and
labor shortages, created inventory delays and shortages that
stressed Qurate's ability to source, promote and distribute
products. The resultant product scarcity led the company to have to
quickly redirect a meaningful portion of its daily programming
calendar, creating an outsized impact on QxH as a single product
merchant.
The supply chain issues were exacerbated by the closing of QVC's
Rocky Mount fulfilment center, its second largest and most
efficient center, following a fire on Dec. 18, 2021. While QVC
reallocated inventory to its remaining facilities, costs remain
higher as those facilities were not only less efficient but the
resultant overcapacity led to higher demurrage fees. These issues
have further delayed system inventory flow, product promotion
schedules and customer delivery times, which continue to negatively
affect sales.
The company is reinvesting a significant portion of the insurance
proceeds to improve the efficiency of its remaining network (QVC
has received approximately $250 million through Aug. 5, 2022 ). As
a result, they expect costs to decline over the next 24 to 36
months.
Macroeconomic factors included inflation, leading to tightening
monetary policy, the war in Ukraine, continued uncertainty
regarding the Omicron variant, an earlier Christmas season and
growing economic weakness. Fitch expects the U.K. and eurozone to
fall into a recession later this year, the U.S. to experience a
mild recession in 2023, and a reduction in consumer spending into
2023, which could continue to drag on Qurate's operating
performance.
In response to these issues, Qurate announced several operating
turnaround initiatives. First, in June 2022 they announced Project
Athens, a three-year plan designed to reinvigorate sales, expand
margins and generate incremental FCF, although they did not
disclose revenue or cost synergy expectations. Second, they made
several management changes and bolstered streaming and marketing
operations. And third, they completed several sale lease backs,
generating after-tax proceeds of $685 million used to repay debt.
Customer Count Declines: QxH's LTM customer counts declined as the
company was unable to overcome the aforementioned operational
issues. As of June 30, 2022, existing customers declined by 8% from
its June 30, 2021 peak while total customers declined 17%. Although
the company is focused on growing reactivated and new customers, as
they represent opportunities to convert to repeat customers, over
the same period they declined by 15% and 34%, respectively. Fitch
notes reactivated and new customer declines were driven primarily
by scarcity in products highly correlated with conversion to repeat
customers, especially consumer electronics and home, and conversion
potential could benefit as those products become more available. In
addition, QxH's existing customers maintained historical purchase
patterns.
Secular Evolution and Challenges: U.S. retailers remain pressured
by growing ecommerce competition and the shift to lower priced
alternatives. Although Qurate is one of North America's Top 10
ecommerce retailers, its ecommerce business performed slightly
worse than Qurate overall in 1H2022. While ecommerce represented
approximately 61% of total LTM ended June 30, 2022 revenues, up
from 59% in FY2019, it is down from its mid-60% peak due primarily
to Zulily's weak performance. To combat ongoing price competition,
the company instituted price matching on some of its platforms in
2020.
Linear Subscriber Declines: Fitch expects continued industrywide
decline in basic video subscribers and, as a result, linear TV
viewing. While linear programming distribution generates a
significant portion of QxH's revenues, QxH is also carried on a
growing number of streaming services and has a strong web presence.
In addition, Cornerstone, which is not subject to linear viewing
concerns, has seen record growth in each of its brands including
positive ecommerce growth.
Increasing Leverage Metrics: In FY2020, Qurate distributed a $1.3
billion special dividend funded with a mix of cash on hand and the
issuance of cumulative redeemable preferred shares, to which Fitch
assigned 0% equity credit. Qurate's operating issues drove its
Fitch-calculated pro forma leverage well over its prior 3.5x
negative rating sensitivity (5.0x at June 30, 2022) and QVC's
Fitch-calculated leverage over its prior 2.5x sensitivity (2.7x at
June 30, 2022). Despite including the pro forma capital structure
changes discussed above, Fitch expects leverage at both entities to
remain elevated into at least 2024 given Qurate's expected
near-term operating trajectory.
Rating Linkage: Fitch links Qurate, Liberty and QVC's Long-Term
IDRs in accordance with its criteria. Qurate's IDR, its wholly
owned subsidiary Liberty, and its indirect, wholly owned subsidiary
QVC, reflect the consolidated legal entity/obligor credit profile
and parent subsidiary relationships. Although Fitch does not
believe Qurate would spin out QVC, Fitch would review the rating in
that event.
DERIVATION SUMMARY
Qurate, the largest global provider of television retailing and a
leading multimedia retailer, is well positioned within the retail
sector given its loyal customer base, with nearly 95% of sales
generated by repeat and reactivated customers and a strong global
ecommerce presence. It offers a wide variety of consumer products,
marketed and sold primarily by merchandise-focused televised
shopping programs distributed to approximately 216 million
households daily, and internet and mobile applications. It's IDR is
lower than its rated peers due primarily to elevated leverage.
Kohl's Corporation's ratings (BBB-/Stable) reflect its position as
the second largest department store in the U.S. and its
well-developed omnichannel strategies, with digital sales expected
to contribute to approximately 35% of revenues going forward.
Dillard's ratings (BBB-/Stable) reflects improving topline
trajectory, reduced promotional pricing and strong cost reduction
resulting in EBITDA and balance Dillard's regional footprint
relative to nationally-positioned department stores and somewhat
volatile earnings history against strong balance sheet management,
resulting in good financial flexibility and modest debt position.
Macy's ratings (BBB-/Stable) reflect its recently strong operating
trajectory, which demonstrates some success in implementation of
its topline and other initiatives.
Nordstrom's ratings (BBB-/Negative) reflect its historically good
market position in the apparel, footwear, and accessories space,
with its differentiated merchandise and high level of customer
service, including omnichannel offering, enabling the company to
enjoy strong customer loyalty. The rating also recognizes the
company's exposure to stronger shopping centers and good mix of
digital and off-price sales alongside its full-price department
store presence. The Negative Outlook reflects Nordstrom's
protracted operating recovery from the coronavirus pandemic and
some ongoing execution challenges, particularly at its Rack
division.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within the Rating Case for the Issuer
- Low-teens revenue declines in 2022. Although supply chain
dislocations are slowly beginning to clear up and the resultant
inventory management issues see some improvements, the loss of the
Rocky Mount facility continues to reverberate through the company.
In addition, negative macroeconomic factors gain strength;
- Flat revenue growth for 2023. Although supply chains continue
to strengthen, continuing negative macroeconomic factors more than
offset inventory management improvements;
- Low single digit revenue growth in 2024 and 2025 as supply
chain issues and macroeconomic factors improve;
- Margin compression in 2022 followed by more than 300 b.p.
improvement through 2025 due to top-line growth coupled with strong
expense management and inventory improvements;
- Capital intensity returns to 2.3% over the rating horizon;
- Fitch-calculated FCF generation grows from $212 million in 2021
to $952 million in 2025;
- No shareholder returns over the rating horizon;
- Qurate's lease adjusted debt to operating EBITDAR returns below
3.75x during 2025.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Qurate sustaining operating improvement, including positive
revenue and EBITDA margin improvement;
- Liberty's total adjusted debt to EBITDAR remains below 3.75x
and/or QVC's total debt with equity credit to EBITDA remains below
2.5x;
- If Liberty were to manage to more conservative leverage
targets.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- If financial policy changes, including more aggressive leverage
targets or weakened bondholder protection;
- If there are continued revenue declines in excess of 10% that
materially drive declines in EBITDA and FCF;
- Liberty's total adjusted debt to EBITDAR exceeds 4.5x and/or
QVC's leverage exceeding 3.25x in the absence of a credible plan to
reduce leverage.
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: Fitch believes Qurate's liquidity should be
sufficient to support operations. Fitch expects Qurate's near-term
FCF will be used primarily for internal investment and debt
repayment and that shareholder returns won't resume until QVC's net
leverage is below its 2.5x target. Fitch expects Qurate to generate
more than $600 million of FCF annually over the rating horizon.
Fitch recognizes that in the event of a liquidity strain at
Liberty, QVC could provide funding to support debt service via
intercompany loans. As of June 30, 2022, Qurate had $561 million of
consolidated cash.
QVC had approximately $2.8 billion available under its $3.25
billion revolving credit facility due in October 2026, pro forma
for debt repayments using the proceeds from the July 2022 U.S.
properties sale and leaseback. Fitch notes QVC amended its revolver
in October 2021, increasing the facility from $2.95 billion and
extending the maturity from December 2023. It also added
Cornerstone and QVC Global Corporate Holdings, LLC as co-borrowers,
with each borrower jointly and severally liable for the outstanding
borrowings. Borrowings are pari passu with QVC's existing secured
notes.
QVC's maturities are manageable, with $214 million due in 2023,
$600 million in 2024 and $600 million in 2025. Qurate also lists
near-term maturities that are only classified as near-term because
Liberty does not own the underlying shares needed to redeem the
debentures. However, Liberty has no intention or requirement to
redeem them in the near term, and maturities range from 2029 to
2046.
Fitch rates QVC's senior secured credit facility and senior secured
notes 'BB+', two notches higher than the IDR. QVC's revolving
credit facility is secured by a pledge of all of QVC's, Zulily's
and Cornerstone's stock and are cross-guaranteed by each
co-borrower's material domestic subsidiaries, none of which have
any material debt. All of QVC's secured notes are secured by QVC's
stock and guaranteed by QVC's material domestic subsidiaries, none
of which have any material debt. Finally, all of QVC's secured debt
is structurally senior to Liberty's unsecured debt.
ISSUER PROFILE
Qurate Retail, Inc. is a global leader in video and e-commerce
across multiple linear, streaming and online platforms including
QVC, HSN, Zulily, Ballard Design, Frontgate, Garnet Hill and
Grandin Road.
ESG CONSIDERATIONS
Qurate Retail, Inc. has an ESG Relevance Score of '4' for Group
Structure due to complexity and related-party transactions, which
has a negative impact on the credit profile, and is relevant to the
ratings 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.
Debt Rating Recovery Prior
---- ------ -------- -----
QVC, Inc. LT IDR BB- Downgrade BB
senior secured LT BB+ Downgrade RR1 BBB-
Liberty Interactive
LLC LT IDR BB- Downgrade BB
senior unsecured LT BB- Downgrade RR4 BB
Qurate Retail, Inc. LT IDR BB- Downgrade BB
preferred LT B+ Downgrade RR5 BB-
RDS CONSTRUCTION: Taps Michael Hardwick Law as Bankruptcy Counsel
-----------------------------------------------------------------
RDS Construction, LLC received approval from the U.S. Bankruptcy
Court for the Southern District of Texas to employ Michael Hardwick
Law, PLLC as its legal counsel.
The firm's services include:
a. advising the Debtor regarding its rights, duties and powers
in its Chapter 11 proceedings;
b. appearing before the bankruptcy court or any other court to
represent the interests of the Debtor;
c. attending the initial debtor interview;
d. attending the meeting of creditors;
e. assisting the Debtor with proposing, prosecuting, and
consummating a Chapter 11 disclosure statement and plan of
reorganization;
f. preparing pleadings;
g. assisting the Debtor with the resolution of claims filed
against the estate, preservation and disposition of assets of the
estate, the prosecution of actions taken on behalf of the estate,
and resolution of other disputes that may arise during the pendency
of the case;
h. advising the Debtor regarding business finances,
transactions, and the daily operations of its businesses; and
i. performing any other necessary legal services.
Michael Hardwick Law will be paid at these rates:
Attorneys $350 per hour
Paralegals $150 per hour
The firm will also be reimbursed for out-of-pocket expenses
incurred.
Prior to the petition date, the firm received from the Debtor a
retainer of $16,738.
Michael Hardwick, Esq., a partner at Michael Hardwick 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 through:
Michael L. Hardwick, Esq.
Michael Hardwick Law, PLLC
2200 North Loop West, Suite 116
Houston, TX 77018
Tel: (713) 832-930-9090
Fax: (713) 832-930-9091
Email: michael@michaelhardwicklaw.com
About RDS Construction
RDS Construction, LLC was formed as a limited liability corporation
in the State of Texas on Sept. 6, 2017, and operates as a retail
service company. Its primary income is derived from construction
services for individual consumers looking to remodel their homes or
businesses. It serves a local market in the Humble and Atascocita
areas of Houston and works generally throughout Harris and the
surrounding counties.
RDS Construction sought Chapter 11 bankruptcy protection (Bankr.
S.D. Texas Case No. 22-31179) on May 2, 2022, with between $100,000
and $500,000 in assets and between $500,000 and $1 million in
liabilities. Louis J. Santoro, secretary and treasurer, signed the
petition.
Judge Christopher M. Lopez oversees the case.
Michael L. Hardwick, Esq., at Michael Hardwick Law, PLLC is the
Debtor's counsel.
RE-BUILD SEVILLE LLC: Files Bare-Bones Chapter 11 Petition
----------------------------------------------------------
Re-Build Seville LLC filed for chapter 11 protection in the
Southern District of Mississippi without stating a reason.
The Debtor, a Single Asset Real Estate, said it had total debt of
at least $1 million and between 1 and 49 creditors. The petition
states that funds will not be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
Nov. 2, 2022, at 10:00 AM - - Telephonic 341 Meeting Ch 11. Proofs
of claim are due by Jan. 26, 2023.
About Re-Build Seville LLC
Re-Build Seville LLC is a Single Asset Real Estate (as defined in
11 U.S.C. Sec/ 101(51B)).
Re-Build Seville LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Miss. Case No. 22-01976) on Sept. 28,
2022. In the petition filed by J. Stephen Tracy as manager, the
Debtor reported assets and liabilities between $1 million and $10
million.
The Debtor is represented by George Adam Sanford of McRaney &
McRaney.
ROBERT MORRIS ENGLISH JR.: Selling Brownsville Property for $125K
-----------------------------------------------------------------
Robert Morris English, Jr., asks the U.S. Bankruptcy Court for the
Western District of Tennessee to authorize the sale of the real
property located at 9767 Highway 19, in Brownsville, Haywood
County, Tennessee 38012, for $125,000, free and clear of liens,
claims, interests and encumbrances.
The Debtor is an individual who resides in Brownsville, Haywood
County, Tennessee. He is engaged in row crop farming operations in
Haywood County, Tennessee. He conducts his business individually
and as English Farms, a sole proprietorship. The Debtor owns
approximately 450 acres, and leases approximately 800 acres from
various owners. Soybeans are the primary crop raised by the
Debtor's operation, although a current winter wheat crop is in the
ground.
The Debtor owns the Property. It is a single-family home, plus one
acre to be carved out, that Debtor used as rental property.
The Property is subject to a first-priority lien held by Bank
Tennessee. It is part of a tract that requires it to be surveyed
for this sale. A small portion of the revocered Property is
subject to the lien of InSouth Bank. Upon information and belief,
there are taxes owed InSouth Bank has agreed to receive $5,000 from
the sale proceeds to release its lien and a judgment lien may be in
an inferior position.
The Debtor has agreed to sell the Property pursuant to the Contact.
He believes that the consummation of the transaction is in the
best interest of this estate, and creditors insofar as the offer
will reduce debt and possibly produce immediate cash to the estate.
There will be proceeds to satisfy the taxes and BankTennessee and
InSouthBank. The Debtor requests that the remaining proceeds after
payment of taxes, BankTennessee and costs of closing be escrowed
pending further order of the Court.
The Debtor has obtained the offer in an attempt to reduce his debt
and aid in reorganization. He believes the Contract submitted by
the Purchaser will result in fair and adequate value to the estate.
A copy of the Contract is available for free at
https://tinyurl.com/bdzy9pcd from PacerMonitor.com free of charge.
Robert Morris English, Jr., filed a Chapter 11 petition (Bankr.
W.D. Tenn. Case No. 21-10863) on Sept. 29, 2021.
ROBERT MORRIS ENGLISH JR.: Young Buying Brownsville Asset for $100K
-------------------------------------------------------------------
Robert Morris English, Jr., asks the U.S. Bankruptcy Court for the
Western District of Tennessee to authorize the sale of the real
property located at 9767 Highway 19, in Brownsville, Haywood
County, Tennessee 38012, to Mike Young for $100,000, free and clear
of liens, claims, interests and encumbrances.
The Debtor is an individual who resides in Brownsville, Haywood
County, Tennessee. He is engaged in row crop farming operations in
Haywood County, Tennessee. He conducts his business individually
and as English Farms, a sole proprietorship. The Debtor owns
approximately 450 acres, and leases approximately 800 acres from
various owners. Soybeans are the primary crop raised by the
Debtor's operation, although a current winter wheat crop is in the
ground.
The Debtor owns the Property. It is a single-family home, plus one
acre to be carved out, that Debtor used as rental property.
The Property is subject to a first-priority lien held by Bank
Tennessee. It is part of a tract that requires it to be surveyed
for this sale. A small portion of the Property is subject to the
lien of InSouth Bank. Upon information and belief, there are taxes
owed InSouth Bank has agreed to receive $5,000 from the sale
proceeds to release its lien and a judgment lien may be in an
inferior position.
The Debtor has agreed to sell the Property pursuant to the
Contract. By the Motion, he seeks the Court's approval of the sale
of the Property free and clear of liens, claims, interests and
encumbrances in consideration of the $100,000. He believes that
the consummation of the transaction is in the best interest of this
estate, and creditors insofar as the offer will reduce debt and
possibly produce immediate cash to the estate. There will be
proceeds to satisfy the taxes and BankTennessee and InSouthBank.
Debtor requests that the remaining proceeds after payment of taxes,
BankTennessee and costs of closing be escrowed pending further
order of the Court.
The Debtor requests that the Court authorizes the sale of the
Property, free and clear of all liens, claims, interests and
encumbrances which may be asserted against the Property with all
liens, claims, interests and encumbrances attaching to the proceeds
in the same order.
A copy of the Contract is available for free at
https://tinyurl.com/bdhked4x from PacerMonitor.com free of charge.
Robert Morris English, Jr., filed a Chapter 11 petition (Bankr.
W.D. Tenn. Case No. 21-10863) on Sept. 29, 2021.
ROCKING M MEDIA: Court Denies Bid to Disband Creditors' Committee
-----------------------------------------------------------------
Rocking M Media, LLC failed to convince a bankruptcy judge to
disband the official committee of unsecured creditors appointed in
its Chapter 11 case.
In his order issued on Oct. 3, Judge Dale Somers of the U.S.
Bankruptcy Court for the District of Kansas denied Rocking M
Media's motion to disband the committee, saying the company failed
to establish that the U.S. Trustee for Region 20 acted "arbitrarily
and capriciously" when appointing the committee.
In its motion, Rocking M Media argued the bankruptcy watchdog
appointed a committee whose members, Johnson Family Enterprises,
Inc. and American Society of Composers, Authors and Publishers
(ASCAP), do not represent the general unsecured creditors. Johnson
is a fully secured creditor while ASCAP is a key vendor whose claim
must be satisfied as a prerequisite to a confirmed plan, the
company said.
"These arguments fail to show the U.S. trustee acted arbitrarily
and capriciously when appointing the committee," Judge Somers said,
pointing out that both committee members are included in Rocking M
Media's own schedule of the 20 largest unsecured creditors.
"The U.S. trustee, who is required to appoint a committee early in
the case, necessarily relied on the schedules. The proofs of claims
filed by ASCAP and Johnson assert unsecured claims," Judge Somers
said.
"Further, as to both members, [Rocking M Media's] contention that
they may cease to be unsecured creditors in the future is not a
cause to exclude them from initial membership, rather it could be
the basis for a later change in membership," the bankruptcy judge
further said.
About Rocking M Media
Rocking M Media, LLC and its affiliates own and operate radio
stations, radio networks, and digital media platforms that provide
music, news, sports, and weather to its listeners and viewers.
Rocking M Media supports local, regional, and national businesses
and organizations across the State of Kansas as well as Nebraska,
Colorado, Oklahoma, and Texas.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Kan. Case No. 22-20242) on March 26,
2022. In the petition signed by Monte M. Miller, chief executive
officer, the Debtors disclosed up to $1 million in assets and up to
$10 million in liabilities.
Judge Dale L. Somers oversees the cases.
The Debtors tapped Sharon L. Stolte, Esq., at Sandberg Phoenix &
von Gontard PC as legal counsel and AdamsBrown, LLC as accountant.
Creditors Kansas State Bank of Manhattan, Belate LLC, and Farmers
and Merchants Bank of Colby are represented by Stinson LLP, Spencer
Fane LLP, and Hite, Fanning & Honeyman LLP, respectively.
The U.S. Trustee for Region 20 appointed an official committee of
unsecured creditors in the Debtors' Chapter 11 cases on July 7,
2022. Loeb & Loeb, LLP and Dundon Advisers, LLC serve as the
committee's legal counsel and financial advisor, respectively.
SANDY ROAD: Proposes Auction Sale of Assets Through United Country
------------------------------------------------------------------
Sandy Road Farms, LLC, asks the U.S. Bankruptcy Court for the
District of Kansas to authorize the auction sale of real property,
equipment, and personal property through United Country Commercial
Auction Services.
The Debtor owns, and has operated, a 200,000+ head hog farm based
in Plains, Kansas. Situated in Seward and Meade Counties, the
production facilities consist of numerous buildings and barns for
the purposes of commercial breeding, farrowing, nursery, feeding,
and preparation for market. The facilities are spread out over 15
farm locations.
Prior to the Petition Date, in January 2022, the Debtor engaged the
services of CFO Solutions, LLC d/b/a Ampléo, as its Chief
Restructuring Officer ("CFO") to manage all daily operations and
financial matters. Under the guidance of the CRO, it expended
considerable effort and resources in the liquidation of its herd
prior to the bankruptcy filing.
The Debtor has determined that engaging an experienced,
professional auctioneer to provide the requisite marketing and
auctioneering services to implement and facilitate a sale of its
real property, equipment, and personal property will achieve the
maximum potential benefit for the creditors of the bankruptcy
estate.
By separate motion, the Debtor is seeking to employ United Country
Commercial Auction Services as its auctioneer. United Country has
extensive knowledge and experience in court-approved bankruptcy
auctions and well-established expertise with facilitating and
managing such auctions.
The Debtor submits that it is in the best interests of the
creditors of this estate to effectuate a sale of the Assets outside
of the ordinary course of business pursuant to the Auction
Contracts as soon as possible. It will not be attempting to
reorganize nor effectuate a transaction to sell its enterprise.
The Debtor requests the Court enters an order (i) approving the
auction and the Auction Contracts, (ii) authorizing, subject to the
Auction Contracts, the sale of its Assets free and clear of all
liens, claims and interests (with such liens, claims and interests
attaching to the proceeds of the sale), and (iii) directing the
proceeds from the sale of the Assets to be disbursed in accordance
with the Auction Contracts. The residual net amount disbursed to
Debtor will be deposited into a bank account and held pending
further order from the Court.
Pursuant to the Auction Contracts, the Debtor proposes the
following terms and conditions:
a. The real property auction will be conducted on or about
Nov. 7, 2022, and the equipment and personal property auction
will be conducted on or about Nov. 8, 2022. The auctions will be
held both in person and online.
b. The real property auction will be conducted in a
"multi-par" format such that the property will be divided into
smaller tracts that can be bid on individually or in any desired
combination. While standard auction conventions still apply,
"multi-parcel" or "multi-par" actions are more complex and have the
potential to produce both improved offers from buyers and a higher
return to the Debtor.
C. United Country will complete a credit check and
preliminary due diligence to ensure registered bidders are
legitimate buyers.
d. The successful real property buyers will be required to
deposit earnest money with American Title & Abstract Specialists.
Earnest money will be deposited within two days of the acceptance
of the prevailing bid. Escrow will be paid $2,000 per parcel of
property for its title services.
e. The Successful buyer(s) from the auction will deposit the
balance due and owing no later than 30 days after the completion of
the auction.
f. Proceeds of the sale of each asset will be accurately
tracked and delineated between each parcel of real estate,
equipment, other personal property and any unsecured assets in
order to ensure proper distribution and disbursal. The proceeds
will be disbursed in accordance with the Auction Contracts, and the
residual net amount disbursed to Debtor will be deposited into a
separate bank account and held pending further order from the
Court.
g. Pursuant to the Real Estate Auction Contract, United
Country will receive a commission of 4% of the sale price of the
real property. If a buyer purchases the entirety of the real
property, United Country's commission will be discounted in
accordance with the Real Estate Auction Contract.
h. Pursuant to the Equipment Auction Contract, United
Country will receive a commission of 8% of the sale price of the
item(s). If an item is sold or withdrawn prior to auction, United
Country will receive a commission of 8% of the sale price or
appraisal value of the item(s), whichever is higher.
Prior to the auctions, United Country will attempt to solicit as
many potential buyers as possible through advertising and
promotional materials.
The Motion is being filed under exigent circumstances. The Debtor
has ceased operations, liquidated its herd, and seeks to wind down
its remaining affairs as soon as possible. Time is of the essence
in approving the implementation of the auctions and any unnecessary
delay could impair the Debtor's timely liquidation and wind down.
Accordingly, the Debtor requests the Court to waive the applicable
stay imposed by Bankruptcy Rule 6004(h).
The liens and security interest of any creditor holding a lien on
the assets sold will either be satisfied at closing or attach to
the proceeds. The net sale proceeds will be distributed only in
accordance with the Auction Contracts, and such other and further
order of the Court.
A copy of the Auction Contract is available for free at
https://tinyurl.com/4cmvwecc from PacerMonitor.com free of charge.
About Sandy Road Farms
Sandy Road Farms LLC sought protection under Chapter 11 of the
U.S.
Bankruptcy Code (Bankr. D. Kan. Case No. 22-40446) on Aug. 1,
2022.
In the petition signed by Glenn Karlberg, manager, the Debtor
disclosed between $1 million and $10 million in assets and between
$50 million and $100 million in liabilities.
Judge Dale L. Somers oversees the case.
The law firms McDowell Rice Smith & Buchanan and Cairncross &
Hempelmann serve as the Debtor's counsel. Glenn Karlberg at CFO
Solutions, LLC is the chief restructuring officer.
SANDY ROAD: U.S. Trustee Unable to Appoint Committee
----------------------------------------------------
The U.S. Trustee for Region 20 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Sandy Road Farms, LLC.
About Sandy Road Farms
Sandy Road Farms LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Kan. Case No. 22-40446) on Aug. 1, 2022,
with between $1 million and $10 million in assets and between $50
million and $100 million in liabilities. Glenn Karlberg, manager,
signed the petition.
Judge Dale L. Somers oversees the case.
McDowell Rice Smith & Buchanan and Cairncross & Hempelmann serve as
the Debtor's counsel. Glenn Karlberg at CFO Solutions, LLC is the
chief restructuring officer.
SHOPS AT BROAD: Hires Bill Roberts of CR3 Partners as CRO
---------------------------------------------------------
Shops at Broad, LLC seeks approval from the U.S. Bankruptcy Court
for the Northern District of Texas to employ CR3 Partners, LLC to
provide a chief restructuring officer and designate Bill Roberts as
CRO.
The CRO will render these services:
a. Assume management of the Debtor as CRO, reporting directly
to the Debtor's Managing Member. The CRO shall have the authority
to, without limitation: (i) have access to the bank accounts,
corporate credit cards, properties and other assets of the Debtor,
(ii) manage in all respects the sale of the Debtor's properties and
assets, and (iii) hire and terminate any employee, professional
advisor, consultant or independent contractor of the Debtor.
b. Create, implement and manage a restructuring plan
satisfactory to the Debtor's primary secured lender and other key
stakeholders. Such plan may include, without limitation, the sale
of the Debtor's properties and assets, individually or together, or
directing winddown and liquidation of the Debtor, whether out of
court or under any formal Bankruptcy Court proceedings, in
coordination with the Debtor's Managing Member or the relevant
governing body of the Debtor and the Debtor's legal advisors.
c. Direct the Debtor in its communications and negotiations
with (i) its customers, (ii) its secured and unsecured creditors
(including any official or ad hoc committees organized in a
bankruptcy process) and (iii) any other constituencies in the
execution of the Debtor's plans.
d. Assist the Debtor and its legal advisors in preparing any
motions, filings, compliance and reporting as necessary with the
U.S. Bankruptcy Court.
e. Prepare and maintain a weekly cash flow projection and cash
budget model in coordination with the Debtor's management and
personnel.
f. Provide all other services that may be reasonably requested
by the Debtor and the Board of Directors or similar governing body,
and the Debtor's other key stakeholders in furtherance of the
Debtor's objectives.
The firm will be paid at these hourly rates:
William Snyder $850
Bill Roberts, CRO $675
Directors $495 - 675
Managers and Senior Associate $350 - $495
CR3 Partners is "disinterested" within the meaning of Section
101(14) of the Bankruptcy Code, according to court filings.
The firm can be reached through:
Bill Roberts
6171 W. Century Blvd, Suite 350
Los Angeles, CA 90045
Phone: (800) 728-7176
Email: bill.roberts@cr3partners.com
About Shops at Broad
Shops at Broad, LLC, a company in Mansfield, Texas, sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
N.D. Texas Case No. 22-42059) on Sept. 2, 2022. In the petition
signed by Stewart Geyer, authorized representative, the Debtor
disclosed between $50 million and $100 million in both assets and
liabilities.
Judge Edward L. Morris oversees the case.
Areya Holder Aurzada, Esq., at Holder Law serves as the Debtor's
counsel.
SPL PARTNERS: Seeks to Hire Kirby Aisner as Substitute Attorney
---------------------------------------------------------------
SPL Partners, LLC received approval from the U.S. Bankruptcy Court
for the Eastern District of New York to hire Kirby Aisner & Curley
LLP as substitute attorneys.
Kirby has required the funding of a post-petition professional fee
reserve in the amount of $50,000.
The firm can be reached through:
Dawn Kirby, Esq.
Erica R. Aisner, Esq.
KIRBY AISNER & CURLEY LLP
700 Post Road, Suite 237
Scarsdale, NY 10583
Tel: (914) 401-9500
Email: dkirby@kacllp.com
eaisner@kacllp.com
About SPL Partners LLC
Brooklyn, N.Y.-based SPL Partners LLC is a single asset real estate
debtor (as defined in 11 U.S.C. Section 101(51B)).
On Aug. 31, 2021, Xemex LLC, Stacey Angelides and Angelo Gerosavas
filed an involuntary petition against SPL Partners pursuant to
Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No.
21-42248). The creditors are represented by Ralph E. Preite, Esq.,
at Koutsoudakis & Iakovou Law Group, PLLC.
Judge Elizabeth S. Stong presides over the case.
Melissa A. Pena, Esq., at Norris McLaughlin, P.A. serves as the
Debtor's legal counsel.
STIMWAVE TECHNOLOGIES: Gets Court Okay for $124 Mil. Auction Offer
------------------------------------------------------------------
Jeff Montgomery of Law360 reports that bankrupt medical device
maker Stimwave Technologies won a green light Thursday for a
post-auction, $124 million sale to its pre- and post-petition
lender and bidder-to-beat stalking horse, topping the sale's
starting price by nearly 50%.
About Stimwave Technologies
Stimwave Technologies Incorporated is a privately-held medical
device company engaged in the development, manufacture,
commercialization and marketing of wireless microsize injectable
medical devices for neurology markets.
Stimwave Technologies Incorporated and affiliate Stimwave LLC
sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. D. Del. Case No. 22-10541) on June 15, 2022.
In the petition filed by CEO Aure Bruneau, Stimwave Technologies
estimated assets between $50 million and $100 million and
liabilities between $10 million and $50 million.
YOUNG CONAWAY STARGATT & TAYLOR, LLP, and GIBSON, DUNN & CRUTCHER
LLP serve as the Debtor's counsel. RIVERON RTS, LLC, is the
financial advisor; and GLC ADVISORS & CO., LLC is the investment
banker. HONIGMAN LLP and JONES DAY serve as the special counsel.
KROLL RESTRUCTURING ADMINISTRATION is the claims agent.
STORED SOLAR: U.S. Trustee Appoints Creditors' Committee
--------------------------------------------------------
The U.S. Trustee for Region 1 appointed an official committee to
represent unsecured creditors in the Chapter 11 case of Stored
Solar Enterprises Series, LLC.
The committee members are:
1. Public Service Company of New Hampshire d/b/a Eversource
Attention: Honor S. Heath, Esq.
107 Selden Street
Berlin, CT 06037
Phone: 860-665-4865
2. Herbert C. Haynes, Inc., a/k/a HC Haynes, Inc.
Attention: Ginger E. Maxwell
P.O. Box 96
Winn, ME 04495
Phone: 207-736-3412
3. T. Jepson & Son, LLC
Attention: Thomas Jepson
40 Howe Road
Spencer, MA 01562
Phone: 774-696-4247
4. Keith’s Tree Service
Attention: Denise Brennan
465 Water Street
Wakefield, MA 01880
Phone: 781-820-2403
5. Soini Corp.
Attention: Ted Soini
37 Fort Hill Road
Oxford, MA 01540
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Stored Solar Enterprises
Stored Solar Enterprises, Series LLC owns and operate seven
biomass-fueled, renewable energy generating facilities located in
Maine, Massachusetts and New Hampshire. The plants produce electric
energy which is transmitted into, and earns payments from, the ISO
New England power grid. The company has 87 employees and is based
in Enfield, Maine.
Stored Solar Enterprises sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Me. Case No. 22-10191) on Sept. 14,
2022. In the petition signed by William Harrington, manager, the
Debtor disclosed $50 million to $100 million in assets and $10
million to $50 million in liabilities.
Judge Michael A. Fagone oversees the case.
Marcus, Clegg, Bals & Rosenthal, PA serves as the Debtor's counsel.
SUNGARD AVAILABILITY: Signs Asset Purchase Agreement With 11:11
---------------------------------------------------------------
Sungard Availability Services on Oct. 5 disclosed that it has
entered into an Asset Purchase Agreement (APA) with 11:11 Systems
("11:11"), a managed infrastructure solutions provider, to acquire
its North American Recovery Services (RS) business. The parties
anticipate receiving bankruptcy court approval by mid-October and
the transaction is expected to close later in the fall.
Sungard AS previously announced that 11:11 would purchase its North
American Cloud and Managed Services (CMS) business, which was
approved by the bankruptcy court on September 14, 2022. In
addition, a similar transaction with 365 Data Centers ("365") to
purchase a majority of Sungard AS' U.S.-based Colocation and
Network Services business was approved by the bankruptcy court in
late August 2022. Transaction support teams within Sungard AS,
11:11 and 365 have been working diligently since each transaction
was announced to orchestrate seamless transitions for Sungard AS'
customers. Additionally, a significant number of Sungard AS'
employees in North America, as well as in India and beyond, will
transition to 11:11 or 365 in connection with the transactions.
The sale of the RS business to 11:11 will transition one of the
Company's longest-standing business units and represents the final
sale transaction for North America. The RS business, for which
Sungard AS has a long-time reputation as an industry leader,
includes its Managed Recovery Program (MRP), Cloud Recovery and
traditional infrastructure Recovery Services (Hotsite) and its
recently announced Cyber Incident Recovery Services. In addition,
the transaction includes Sungard AS' Consulting business, in which
many of its consulting experts work directly with RS and CMS
customers to solve for their unique and often complex use cases.
"It was evident early in our transition planning with 11:11 for the
CMS transaction that there were incredible synergies between
11:11's cloud, backup and disaster recovery offerings and our RS
business. After pursuing several options for our RS business,
including operating it as a standalone business, along with our
advisors and board we concluded that 11:11 was the best option for
our RS business. We believe the transactions with 11:11 will create
a great outcome for our customers and Sungard AS' team members,"
said Michael K. Robinson, Chief Executive Officer and President,
Sungard Availability Services.
Robinson continued, "I couldn't be more pleased with the combined
sales of our North American CMS and RS businesses to 11:11. Sungard
AS' CMS, RS and Consulting capabilities will bring the perfect
complement of solutions, services and expertise to 11:11's rapidly
growing portfolio, arguably creating one of the most complete
cloud, recovery and resiliency providers in the industry today. The
combined resources and talent of this team will meet industry and
customer needs today, but also well into the future as 11:11
solidifies its position in the market as a global cyber resiliency
and disaster recovery solutions provider."
During the restructuring process, Sungard AS' businesses in North
America have continued to operate largely business as usual,
meeting the needs of customers. To ensure a seamless transition of
services as the transactions move forward and following completion,
Sungard AS, 11:11 and 365 will put a Transition Services Agreement
(TSA) in place between the parties.
Additional information about Sungard AS' chapter 11 filing can be
found at: https://cases.ra.kroll.com/SungardAS.
Information about the Canadian proceedings can be found at:
http://www.alvarezandmarsal.com/SungardASCanada.
Sungard AS is advised in this matter by Akin Gump Strauss Hauer &
Feld LLP, Jackson Walker LLP, Cassels Brock & Blackwell LLP, FTI
Consulting, Inc., DH Capital, LLC and Houlihan Lokey Capital, Inc.
About Sungard AS New Holdings
Sungard Availability Services is a Wayne, Pa.-based
information-technology services provider owned by Angelo Gordon,
Blackstone Credit, FS/KKR Advisor LLC and Carlyle Group Inc. It
provides disaster recovery services, colocation and network
services, cloud and managed services and workplace recovery to
customers in North America, Europe and Asia.
The company and its affiliates filed for Chapter 11 protection
twice in three years.
Sungard filed for Chapter 11 bankruptcy in 2019 with a prepackaged
plan that was approved by a New York bankruptcy court one day after
it was filed.
Sungard AS New Holdings, LLC and affiliates, including Sungard
Availability Services, LP, sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. S.D. Texas Case No. 22-90018) on April
11, 2022. Judge David R. Jones oversees the case.
In the petition signed by Michael K. Robinson, CEO and president,
Sungard AS disclosed up to $1 billion in both assets and
liabilities.
Sungard Availability Services (UK) Limited, an indirect subsidiary
of Holdings, entered into administration in the UK on March 25,
2022. Meanwhile, Sungard Canada filed an application for
recognition in Canada under the Companies Creditors' Arrangement
Act of its Chapter 11 case.
Akin Gump Strauss Hauer & Feld LLP and Jackson Walker serve as
legal counsel to the Debtors. Cassels Brock & Blackwell LLP, serves
as their Canadian legal counsel. DH Capital, LLC and Houlihan
Lokey, Inc., act as investment bankers. FTI Consulting, Inc.,
serves as financial and restructuring advisor.
Alvarez & Marsal Canada Inc., serves as Canadian court-appointed
information officer and is represented by Bennett Jones, LLP as
counsel in connection with the Canadian proceedings.
Kroll Restructuring Administration, LLC serves as notice and claims
agent.
Proskauer Rose, LLP and Gray Reed & McGraw, LLP serve as counsel to
Acquiom Agency Services LLC, the Term Loan DIP agent, and Term Loan
DIP lenders.
PNC Bank, National Association, serves as administrative agent and
collateral agent, under the DIP ABL facility. PNC is represented
by Thompson Coburn Hahn & Hessen LLP as counsel.
T.J. MCDERMOTT: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: T.J. McDermott Transportation Co., Inc.
411 Commerce Lane
Berlin, NJ 08009
Chapter 11 Petition Date: October 5, 2022
Court: United States Bankruptcy Court
District of New Jersey
Case No.: 22-17912
Debtor's Counsel: E. Richard Dressel, Esq.
LEX NOVA LAW, LLC
10 E. Stow Road
Suite 250
Marlton, NJ 08053
Tel: 856-382-8211
Fax: 856-406-7398
Email: rdressel@lexnovalaw.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Leeanna Roman Lozada as president.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/NGS22WY/TJ_McDermott_Transportation_Co__njbke-22-17912__0001.0.pdf?mcid=tGE4TAMA
THOMAS VINCENT GIRARDI: Trustee Sells Pasadena Property for $7.5MM
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Jason M. Rund, the chapter 7 trustee for the bankruptcy estate of
Thomas Vincent Girardi, asks the U.S. Bankruptcy Court for the
Central District of California to authorize the proposed bidding
procedures in connection with the sale of the estate's right,
title, and interest in that certain real property located at 100 N.
Los Altos Drive, in Pasadena, California 91105, to Jun Tao and Peng
Tao for $7.5 million, subject to overbid.
A hearing on the Motion is set for Oct. 18, 2022, at 10:00 a.m.
Among the assets of the Debtor is the Property. Prior to the
Petition Date, Joseph Ruigomez, Kathleen Ruigomez and Jaime
Ruigomez commenced an action against the Debtor and his law firm,
Girardi Keese ("GK"), in the Los Angeles Superior Court, as Case
No. 19STCV22296. On April 20, 2020, the Superior Court entered a
Judgment for $11 million in favor of the Ruigomez Creditors and
against the Debtor and GK. On July 28, 2020, the Ruigomez
Creditors recorded an Abstract of Judgment with the Riverside
County Recorder's Office as Inst. No. 2020-0337298, which encumbers
the Property. Following months of discussions, the Trustee and the
Ruigomez Creditors entered into a Settlement Agreement allowing the
Trustee to administer the Property. The Trustee's motion seeking
approval of the Settlement Agreement was filed on March 12, 2021
and was granted by Court order entered on April 20, 2021.
On March 15, 2021, the Trustee filed his application to employ
Compass to market and sell the Property. The application was
approved by Court order entered on April 13, 2021. In order to
maximize the price of the Property, the Broker took it upon itself
to cover out of pocket expenses for repair, gardening, pool
maintenance, and a minimal amount of housekeeping -- totaling
$50,223.92. Also, the Trustee paid out of pocket the insurance
premiums that came due on the Property totaling $13,600.89.
After extensive marketing by the Broker, the Broker presented an
acceptable offer to the Trustee. ubject to Court approval, the
Trustee proposes to sell the Property, pursuant to the terms of the
California Residential Purchase Agreement and the Counter-Offer
between the parties.
The essential terms of the proposed sale are as follows:
a. Purchasers: Jun Tao and Peng Tao ;
b. Purchase Price: $7.5 million;
c. The Property purchased "as-is" without any representations
or warranties of any kind; and
d. Broker's Commissions: 4%.
While the Trustee is prepared to consummate the sale with the
Purchasers, he is also interested in obtaining the maximum price
for the Property. Therefore, he approval of the following overbid
procedures:
(1) any person interested in submitting an overbid on the
Property must attend the hearing on the Motion or be represented by
an individual with authority to participate in the overbid process;
(2) an overbid will be defined as an initial overbid of
$7,525,000, with each additional bid in $5,000 increments;
(3) overbidders (except for the Purchasers) must deliver a
deposit to the Trustee's counsel by way of cashier's check made
payable to "Jason M. Rund, Chapter 7 Trustee," in the amount of
$375,000 and proof of ability to close escrow unconditionally in a
form acceptable to the Trustee at least seven calendar days prior
to the hearing on the Motion;
(4) overbidders must purchase the Property on the same terms
and conditions as the Purchasers (i.e., no contingencies of any
kind);
(5) the Deposit of the successful overbidder will be
forfeited if such party is thereafter unable to complete the
purchase of the Property within 15 calendar days of entry of an
order confirming the sale; and
(6) in the event the successful overbidder cannot timely
complete the purchase of the Property, the Trustee will be
authorized to proceed with the sale to the next highest overbidder.
The Trustee believes that the proposed overbid procedure, notice of
which has been given to all creditors and interested parties, will
maximize the price ultimately obtained for the Property as well as
protect the estate from parties who may wish to participate in the
overbid procedure, but who are ultimately unable to consummate the
sale transaction. Accordingly, he requests that the Court
authorizes the overbid procedure discussed above.
A preliminary title report on the Property has been obtained from
Fidelity National Title Company. The Title Report indicates that
the following liens, but not limited to, have been recorded against
the Property: County Assessor's Office - Real property taxes for
2022-2023, which are not yet due and payable; County Assessor's
Office - Real property taxes for 2020-2021; County Assessor's
Office - Real property taxes for 2021-2022; County Assessor's
Office Real property taxes for 2020-2021; and County Assessor's
Office - Real property taxes for 2021-2022.
The Trustee estimates that the proposed sale will generate net
proceeds as follows: Real Property Taxes - $40,000, Karen Deed -
$285,000; Chase Deed - $2,615,187; Arsani Deed - $3,395,042; Alt
Financing Statement; Stillwell Writ; KCC Writ; Law Finance
Abstract; Ruigomez Abstracts; LACTC Tax Liens; Homestead Exemption
- $175,000; Expenses Advanced by Trustee - $13,601; Expenses
Advanced by Broker - $50,224; and Closing Costs (estimated at 5%
including 4% broker commission) - $375,000. The Net Proceeds is
$550,946.
Pursuant to the Settlement Agreement, 80% of the net proceeds after
payment of liens senior to the Ruigomez Abstracts, taxes arising
from the sale (including transfer and income taxes), and ordinary
costs of sale (including broker commissions, escrow, etc.) and the
administrative fees and costs of the bankruptcy estate would be
paid to the Ruigomez Creditors, and 20% would be paid to the
Trustee to be held in trust for the allowed unsecured claimants of
the bankruptcy estate. Since the Property is being sold free and
clear of certain liens with those liens attaching to the proceeds,
the exact 80%-20% split cannot be determined at this time. The
Trustee will provide an accounting to the Ruigomez Creditors as
soon as possible once the liens attaching to the sale proceeds have
been resolved.
In light of the foregoing, the Trustee respectfully requests that
the Court enters an order as follows:
1. Approving the above sale of the Property to the Purchasers
or the successful overbidder free and clear of the liens of Karen,
Ruigomez Creditors, and LACTC, with their liens to attach to
proceeds, and free and clear of the liens of Alt, Stillwell, KCC
and Law Finance, with their liens to not attach to proceeds;
2. Finding that the Purchasers or the successful overbidder
purchased the Property in "good faith," as defined in 11 U.S.C.
Section 363(m);
3. Providing that the Trustee is authorized and empowered to
execute and deliver on behalf of the estate any and all documents
as reasonably may be necessary to implement the terms of the
proposed sale;
4. Providing that the notice given by the Trustee in
connection with the sale and the hearing thereon is adequate,
sufficient, proper and complies with all applicable provisions of
the Bankruptcy Code and Federal Rules of Bankruptcy Procedure;
5. Approving the overbid procedure described;
6. Authorizing the payment of unpaid property taxes, valid
liens, homeowner's association fees, expenses advanced by the
Trustee and the Broker, the real estate broker's commissions, and
related sale costs directly from escrow;
7. Waiving the 14-day stay prescribed by Rule 6004(h) of the
Federal Rules of Bankruptcy Procedure; and
8. Granting such other and further relief as is just and
appropriate.
A copy of the Bidding Procedures and the Agreement is available for
free at https://tinyurl.com/yksusapu from PacerMonitor.com free of
charge.
Thomas Vincent Girardi sought Chapter 11 protection (Bankr. C.D.
Cal. Case No. 2:20-bk-21020-BR) on Dec. 18, 2020. On Jan. 6, 2021,
the United States Trustee appointed Jason M. Rund as the chapter 7
trustee.
TPC GROUP: Addresses $450 Million Rights Offerings Objections
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Leslie A. Pappas of Law360 reports that Texas-based petrochemical
maker TPC Group Inc. on Thursday, September 29, 2022, resolved all
objections to two backstop rights offerings that underpin its
Chapter 11 plan, paving the way for the company to access $450
million of capital commitments to help put its restructuring plan
into effect.
Judge Craig T. Goldblatt on Oct. 5, 2022, entered an order
authorizing entry into the Backstop Agreements and approving the
Rights Offering Procedures.
Cerberus Capital Management, L.P., Bayside Capital, Inc., and
Mockingbird Credit Opportunities Company LLC filed objections to
the Debtors' motion but their objections were consensually
resolved. The Office of the United States Trustee and the Official
Committee of Unsecured Creditors also filed objections.
The Backstop Agreements are the cornerstone of the Plan and the
Debtors' path to emergence from chapter 11. They provide the
Debtors with certainty that the Plan will be funded -- a
particularly valuable commitment given current market uncertainty
with respect to interest rates, commodity prices, and geopolitics.
The Debtors' determination to enter into the Backstop Agreements to
lock in $450 million of capital commitments is conservative and
prudent, and the terms of the Backstop Agreements are appropriate
in view of the substantial commitments of capital that the Debtors
will receive.
About TPC Group
TPC Group, headquartered in Houston, is a producer of value-added
products derived from petrochemical raw materials such as C4
hydrocarbons, and provider of critical infrastructure and logistics
services along the Gulf Coast. The Company sells its products into
a wide range of performance, specialty and intermediate markets,
including synthetic rubber, fuels, lubricant additives, plastics
and surfactants. With an operating history of more than 75 years,
TPC Group has a manufacturing facility in the industrial corridor
adjacent to the Houston Ship Channel and operates product terminals
in Port Neches, Texas and Lake Charles, Louisiana.
TPC Group Inc. and its subsidiaries sought Chapter 11 protection
(Bankr. D. Del. Lead Case No. 22-10493) on June 1, 2022. TPC Group
estimated assets and debt of $1 billion to $10 billion to $10
billion.
The Hon. Craig T. Goldblatt is the case judge.
Baker Botts L.L.P. is the Debtors' counsel; Morris, Nichols, Arshtn
& Tunnell LLP is the co-counsel; Moelis & Company LLC is the
investment banker; and FTI Consulting is the financial advisor.
Simpson Thacher & Bartlett LLP is the special finance counsel.
Kroll Restructuring Administration is the claims agent.
Eclipse Business Capital LLC is advised by Goldberg Kohn Ltd.
Paul Hastings LLP, and Stroock & Stroock & Lavan LLP are serving as
counsel to the Ad Hoc Noteholder Group that supports the Debtors'
restructuring. Evercore Group L.L.C., is the Group's financial
advisor. Young Conaway Stargatt & Taylor, LLP is local counsel to
the Ad Hoc Noteholder Group. The Supporting Noteholders are funds
controlled by FIG LLC and Fortress Capital Finance III(A) LLC,
Monarch Alternative Capital LP., PGIM Inc., Redwood Capital
Management LLC, and Strategic Value Partners LLC.
Pachulski Stang Ziehl & Jones LLP, Proskauer Rose LLP, and Selendy
Gay Elsberg PLLC are serving as counsel to an Ad Hoc Group of
Non-Consenting Noteholders, led by Bayside Capital, Inc., and
Cerberus Capital Management, L.P. Milbank LLP previously served as
the group's counsel but was later replaced by Pachulski and SGE.
TPC GROUP: Seeks to Hire Grant Thornton as Accountant
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TPC Group Inc. and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Delaware to employ Grant
Thornton, LLP as accountant.
The firm's services include:
a. applying certain agreed-upon procedures as of March 31, June
30, September 30 and December 31, 2022 to determine the accuracy of
the weighted average selling price (WASP) calculations solely for
the purpose of assisting the Debtors in connection with determining
the accuracy of their crude C4 purchase prices under those supply
contracts between the Debtors and certain parties that are based on
the WASP calculations.
b. agreeing the invoice detail by month to the Debtors' general
ledger to determine the completeness of the population of
invoices;
c. selecting a sample of 10 invoices per month (i.e., 30 for
each quarter) included in the WASP calculations in order to agree
components of the calculations to invoice support;
d. selecting a sample of 10 invoices per month (i.e., 30 for
each quarter) from the C4 processing segment sales detail to
inspect the invoices to confirm that the attributes thereof comply
with the WASP calculations;
e. recalculating each monthly WASP calculation during each
quarter based upon the calculations presented within the crude C4
supply contracts;
f. as agreed to by the Debtors and certain parties, selecting 10
items per month (i.e., 30 for each quarter) on a random basis from
C4 processing segment sales detail and 10 items per month (i.e.,30
for each quarter) on a random basis with the number of items
selected from each portion of the population weighted based on the
sales volume from the WASP calculation detail; and
g. applying certain agreed upon procedures to the weighted
average purchase price (WAPP) calculations as of March 31, June 30,
Sept. 30 and Dec. 31, 2022 solely for the purpose of assisting the
Debtors in connection with determining the accuracy of the Debtors'
calculated crude C4 purchase volumes and purchase prices under
those supply contracts between the Debtors and BASF Total
Petrochemicals that are based on the WAPP calculations.
Grant Thornton will be paid at these rates:
Partners/Principals $550 per hour
Managing Directors $520 per hour
Senior Managers $495 per hour
Managers $425 per hour
Senior Associates $340 per hour
Associates $195 per hour
The firm will also be reimbursed for out-of-pocket expenses
incurred.
Jeff Deatsman, a partner at Grant Thornton, 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:
Jeff Deatsman
Grant Thornton, LLP
700 Milam Street, Suite 300
Houston, TX 77002-2848
Tel: (832) 476-3600
Fax: (713) 655-8741
Email: jeff.deatsman@us.gt.com
About TPC Group
TPC Group, headquartered in Houston, is a producer of value-added
products derived from petrochemical raw materials such as C4
hydrocarbons, and provider of critical infrastructure and logistics
services along the Gulf Coast. The company sells its products into
a wide range of performance, specialty and intermediate markets,
including synthetic rubber, fuels, lubricant additives, plastics
and surfactants. With an operating history of more than 75 years,
TPC Group has a manufacturing facility in the industrial corridor
adjacent to the Houston Ship Channel and operates product terminals
in Port Neches, Texas and Lake Charles, La.
TPC Group and its affiliates sought Chapter 11 protection (Bankr.
D. Del. Lead Case No. 22-10493) on June 1, 2022. TPC Group
estimated assets and debt of $1 billion to $10 billion.
The Hon. Craig T. Goldblatt is the case judge.
The Debtors tapped Baker Botts LLP and Morris, Nichols, Arsht &
Tunnell LLP as bankruptcy counsels; Simpson Thacher & Bartlett, LLP
as special finance counsel; FTI Consulting, Inc. as financial
advisor; Moelis & Company, LLC as investment banker, financial
advisor and capital markets advisor; and PricewaterhouseCoopers,
LLP as tax compliance and tax consulting services provider. David
Dunn of Province, LLC serves as Vice President of Restructuring of
the Debtors. Meanwhile, Kroll Restructuring Administration, LLC is
the claims agent and administrative advisor.
Eclipse Business Capital LLC is advised by Goldberg Kohn Ltd.
Paul Hastings LLP, and Stroock & Stroock & Lavan LLP are serving as
counsel to the Ad Hoc Noteholder Group that supports the Debtors'
restructuring. Evercore Group L.L.C., is the Group's financial
advisor. Young Conaway Stargatt & Taylor, LLP is local counsel to
the Ad Hoc Noteholder Group. The Supporting Noteholders are funds
controlled by FIG LLC and Fortress Capital Finance III(A) LLC,
Monarch Alternative Capital LP, PGIM Inc., Redwood Capital
Management LLC, and Strategic Value Partners LLC.
Milbank LLP, and Pachulski, Stang, Ziehl & Jones are serving as
counsel to an Ad Hoc Group of Non-Consenting Noteholders, led by
Bayside Capital, Inc., and Cerberus Capital Management, LP.
On June 14, 2022, the U.S. Trustee for Region 3 appointed an
official committee of unsecured creditors in these Chapter 11
cases. The committee tapped Akin Gump Strauss Hauer & Feld, LLP and
Cole Schotz, PC as counsels and Dundon Advisers, LLC as financial
advisor.
TRILOK FUSION: Taps Clover Barrett & Associates as Legal Counsel
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Trilok Fusion Arts, Inc. seeks approval from the U.S. Bankruptcy
Court for the Eastern District of New York to employ Clover Barrett
& Associates, PC as its legal counsel.
The firm's services include:
a. advising the Debtor with respect to its powers, duties and
obligations;
b. taking all necessary actions to protect and preserve the
estate of the Debtor, including the prosecution of actions on the
Debtor's behalf, the defense of any actions commenced against the
Debtor, the negotiation of disputes in which the Debtor is involved
and the preparation of objections to claims filed against the
estate;
c. preparing legal papers;
d. conferring and negotiating with creditors in order to work
out a Chapter 11 plan to pay debts due and owing;
e. negotiating and preparing a plan of reorganization including,
but not limited to, good faith negotiations in financing a plan;
and
f. performing all other necessary legal services.
The hourly rates of the firm's attorney and paralegals are as
follows:
Clover Barrett, Esq. $500 per hour
Paralegals $195 per hour
The initial retainer is $25,000.
Clover Barrett, Esq., a partner at Clover Barrett & Associates,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Clover Barrett, Esq.
Clover Barrett & Associates, PC
338 Atlantic Avenue Suite 201
Brooklyn, NY 11201
Tel: (718) 625-8568
Email: cbarrettpc@aol.com
About Trilok Fusion Arts
Trilok Fusion Arts, Inc. is an art center in Brooklyn, N.Y.,
offering ballet, tap, jazz, hip-hop, art, music, technology
classes.
Trilok Fusion Arts sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. N.Y. Case No. 22-42116) on Sept. 6,
2022, with $327,346 in assets and $1,161,000 in liabilities. Sudha
Seetharaman, executive director of Trilok Fusion Arts, signed the
petition.
Judge Jil Mazer-Marino oversees the case.
Clover Barrett, Esq., at Clover Barrett and Associates PC is the
Debtor's counsel.
ULTRA SEAL: Case Summary & 20 Largest Unsecured Creditors
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Debtor: Ultra Seal Corporation
521 Main Street
New Paltz, NY 12561
Business Description: Ultra Seal is a privately owned and operated
contract packaging company located in the
heart of New York's Hudson Valley.
Chapter 11 Petition Date: October 6, 2022
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 22-35630
Judge: Hon. Cecelia G. Morris
Debtor's Counsel: Michelle L. Trier, Esq.
GENOVA, MALIN & TRIER, LLP
1136 Route 9
Wappingers Falls, NY 12590
Tel: 845-298-1600
Total Assets: $8,861,955
Total Liabilities: $5,757,027
The petition was signed by Dennis Borrello 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/R4BFR4Q/Ultra_Seal_Corporation__nysbke-22-35630__0001.0.pdf?mcid=tGE4TAMA
ULTRA-TAB LABORATORIES: Case Summary & 20 Top Unsecured Creditors
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Debtor: Ultra-Tab Laboratories, Inc.
50 Toc Drive
Highland, NY 12528
Business Description: Ultra-Tab is engaged in the contract
manufacturing of pharmaceutical,
nutraceutical, cosmetic & nutritional
products. It offers broad capabilities
including the manufacture of private label
and branded tablets, capsules, creams,
lotions, ointments, liquids, suspensions,
powders, and granulations.
Chapter 11 Petition Date: October 6, 2022
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 22-35631
Judge: Hon. Cecelia G. Morris
Debtor's Counsel: Michelle L. Trier, Esq.
GENOVA, MALIN & TRIER, LLP
1136 Route 9
Wappingers Falls, NY 12590
Tel: 845-298-1600
Total Assets: $1,795,067
Total Liabilities: $1,753,147
The petition was signed by Dennis Borrello 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/HGBJBJY/Ultra-Tab_Laboratories_Inc__nysbke-22-35631__0001.0.pdf?mcid=tGE4TAMA
USA COMPRESSION: S&P Alters Outlook to Stable, Affirms 'B+' ICR
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S&P Global Ratings revised the outlook on Austin, Texas-based
master limited partnership (MLP) USA Compression Partners L.P.
(USAC) to stable from negative. S&P also affirmed its 'B+' issuer
credit rating on the partnership and the 'B+' issue-level rating on
its senior unsecured debt. S&P's recovery rating on the unsecured
notes remains '4', reflecting its expectation of average (30%-50%,
rounded estimate: 40%) recovery.
The stable outlook reflects S&P's expectation that the partnership
will maintain modestly improving utilization and pricing for its
compression services. This will result in slightly improved cash
flows in 2023 in comparison in 2022 and adjusted debt to EBITDA
falling to about 5.75x in 2023 in comparison to its expectation of
adjusted debt to EBITDA of about 6.0x in 2022.
The outlook revision follows the improvement in USAC's operating
performance over the past few quarters.
Commodity price volatility affected the partnership's cash flow
generation in 2020 and 2021, with fleet utilization reaching trough
levels of around 82%. However, utilization has improved in 2022. In
the first six months of 2022, utilization averaged 86.4% versus
82.7% in the prior-year period driven by an increase in demand for
gas compression, supported by favorable commodity pricing
environment and increase in associated gas production. S&P said,
"Given the improvement in Henry Hub natural gas prices, we expect
the growing production of natural gas in the Permian and other
basins in the U.S. will help USAC to sustain and improve current
asset utilization levels for the remainder of 2022. USAC has a
strong record of long-term average fleet horsepower utilization of
approximately 92%. We forecast the partnership to increase growth
capital expenditure and increase total fleet horsepower by adding
new compression equipment to the partnership's the fleet. We expect
the partnership to specifically focus on large horsepower
equipment. We expect USAC's fleet to reach pre-pandemic utilization
rates in 2023 and beyond. Under our base-case forecast, we forecast
the partnership will generate approximately $420 million to $425
million of S&P Global Ratings-adjusted EBITDA in 2022 and between
$480 million and $500 million in 2023."
S&P expects USAC's leverage to decline modestly
S&P said, "We expect USAC's leverage to slightly improve to 6.0x in
2022 from 6.2x in 2021. In 2023, we expect leverage to be about
5.75x. We note that our calculation of leverage includes our
treatment of the $477 million preferred units as 100% debt. The
modest improvement in leverage will be driven by EBITDA growth,
rather than debt paydown. We expect USAC to maintain its common and
preferred unit dividend of about $250 million on an annual base.
Furthermore, we expect capital expenditures to be greater in 2023
than 2022. As a result of the common and preferred distribution as
well as greater capital spending, we do not expect USAC to have
discretionary cash flow to pay down its revolver borrowings."
Well-diversified contract portfolio will provide medium-term cash
flow stability.
USAC's contract portfolio is composed of fixed-fee take-or–pay
contracts, with average contract lengths of six months to five
years. The smaller and medium equipment tends to have much shorter
contract lengths, while the larger equipment tends to have much
longer contract lengths. Despite the relatively short contract
lengths, the partnership has built relationships of longer than
five years with diverse counterparties, mostly comprising public
and private exploration and production companies and large
midstream companies. The top 20 customers collectively account for
about 60% of revenue. The partnership's largest counterparty
accounts for 9% of total revenues. S&P said, "We believe this lack
of concentration protects the partnership from the risk from any
single counterparty departing. We also note the larger the
equipment, the larger the demobilization costs to the customer,
which results in significant barriers for customers to choose
another compression provider."
S&P said, "The stable outlook reflects our expectation the
partnership will maintain modestly improving utilization and
pricing for its compression services. This will result in slightly
improved cash flows in 2023 in comparison in 2022 and adjusted debt
to EBITDA falling to about 5.75x in 2023 in comparison to our
expectation of adjusted debt to EBITDA of about 6.0x in 2022. Note
that we treat the partnership's preferred units as 100% debt in our
calculations. We also expect the partnership to continue to pay a
relatively large distribution to its unitholders.
"We could consider a negative rating action if the partnership
maintains leverage above 6.0x on a sustained basis. This could
occur if the partnership's performance is weaker than our current
expectations or if the partnership pursued a more aggressive
financial policy. We could also consider a negative rating action
if we expected the partnership to have tighter covenant cushion
than our current expectations, as this could impact our view of the
partnership's liquidity.
"We view a positive rating action as unlikely at this time.
However, we could consider an upgrade if we see considerable
improvement in USAC's financial risk profile, namely adjusted debt
to EBITDA below 4.5x and stronger distribution coverage in the 1.1x
area."
ESG credit indicator: E-3, S-2, G-2
S&P said, "Environmental factors are a moderately negative
consideration in our credit rating analysis for USA Compression
Partners L.P. The partnership provides compression services, and
its business could face decreased demand for its services over the
longer terms as a result of the energy transition. The
partnership's exposure to upstream and midstream drivers combined
with short-term contracts are key risks, but we also factor in
direct and indirect carbon emissions. Recently, USA Compression has
been focused on rolling out proprietary technology developed by its
parent company, Energy Transfer. This technology uses a natural gas
engine and an electric motor and allows its customers to alternate
between two fuel sources depending on supply and cost."
VANGUARD ROOFING: Court OKs Cash Collateral Access
--------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Virginia,
Lynchburg Division, authorized Vanguard Roofing, LLC to use cash
collateral on a final basis in accordance with the budget and
provide adequate protection to the Small Business Administration
and Kalamata Capital Group.
Specifically, the Debtor is permitted to use cash collateral for
the purposes of advertising, rent, insurance, wages, salaries and
commissions, payroll taxes, electricity, accounting software,
advertising management software, telephones, materials, roof
measuring software, subcontractors, secured creditors, fuel, and
other unforeseen business expenses as set forth in the budget.
As adequate protection, the SBA and Kalamata will have replacement
liens on all of the Debtor's collateral of the same type and nature
that exists as of the Petition Date with the same validity (or
invalidity) and priority as exists as of the Petition Date.
The Replacement Liens will be perfected, enforceable, choate, and
effective without the necessity of the filing of any additional
security documents.
As further adequate protection, the Debtor will make $500 per month
adequate protection payments to the SBA as set forth in the
Budget.
A copy of the order and the Debtor's budget is available at
https://bit.ly/3MbtUhq from PacerMonitor.com.
The Debtor projects $137,226 in monthly total expenses.
About Vanguard Roofing, LLC
Vanguard Roofing, LLC operates a roofing contracting business. The
Debtor sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. W.D. Va. Case No. 22-60697) on July 18, 2022. In the
petition signed by Gary Greenwood, chief executive officer, the
Debtor disclosed up to $500,000 in both assets and liabilities.
Judge Rebecca B. Connelly oversees the case.
Martin C. Conway, Esq., at Conway Law Group, PC is the Debtor's
counsel.
VOYAGER DIGITAL: UST Takes No Position on Equity Panel Formation
----------------------------------------------------------------
The U.S. Trustee for Region 2 filed a statement with the U.S.
Bankruptcy Court for the Southern District of New York, saying he
does not take a position with respect to the request for the
appointment of an official equity committee in the Chapter 11 cases
of Voyager Digital Holdings, Inc. and its affiliates.
In a letter to the court dated Sept. 1, Shikar Partab, a minority
shareholder and investor in Voyager Digital, requested that the
court grant the motion for an order directing that an equity
committee be appointed to protect minority shareholders in the
company. Mr. Partab argued shareholders in Voyager Digital are in
the same position as ordinary people who invested monies in crypto
assets of the company and must be protected.
About Voyager Digital Holdings
Based in Toronto, Canada, Voyager Digital Holdings Inc. --
https://www.investvoyager.com/ -- runs a cryptocurrency platform.
Voyager claims to offer a secure way to trade over 100 different
crypto assets using its easy-to-use mobile application. Through its
subsidiary Coinify ApS, Voyager provides crypto payment solutions
for both consumers and merchants around the globe.
Voyager Digital Holdings Inc. and two affiliates sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead
Case No. 22-10943) on July 5, 2022. In the petition filed by
Stephen Ehrlich, chief executive officer, the Debtors estimated
assets and liabilities between $1 billion and $10 billion.
Michael E. Wiles oversees the cases.
The Debtors tapped Kirkland & Ellis, LLP as general bankruptcy
counsel; Berkeley Research Group, LLC as financial advisor; Moelis
& Company as investment banker; and Consello Group as strategic
financial advisor. Stretto, Inc. is the claims agent.
On July 19, 2022, the U.S. Trustee for the Southern District of New
York appointed an official committee of unsecured creditors in
these Chapter 11 cases. The committee tapped Epiq Corporate
Restructuring, LLC as noticing and information agent.
WB MAINTENANCE: Seeks to Hire Koutsoudakis & Iakovou as Counsel
---------------------------------------------------------------
WB Maintenance Inc. and its affiliates seek approval from the U.S.
Bankruptcy Court for the Eastern District of New York to hire
Koutsoudakis & Iakovou Law Group PLLC as their counsel.
The firm's services include:
a. advising the Debtor of its powers and duties;
b. advising the Debtor concerning its affairs and assisting
the Debtor in seeking confirmation of any proposed Chapter 11 plan
and solicitation of acceptances for the plan;
c. assisting in the investigation of the assets, liabilities
and financial condition of the Debtor that may be required;
d. representing the Debtor at all hearings or matters before
the court and the Office of the U.S. Trustee pertaining to its
affairs;
e. prosecuting and defending litigated matters and such other
issues that might arise during this Chapter 11 case;
f. advising the Debtor with respect to its executory contracts
and leases and other bankruptcy-related matters; and
g. performing other legal services for the Debtor.
The hourly rates charged by the firm's attorneys and paralegals are
as follows:
Associates $425 to $500 per hour
Partners/Counsel $600 to $700 per hour
Law Clerks $325 per hour
Financial Analysts $260 per hour
Paralegals $125 per hour
In addition, the firm will seek reimbursement for work-related
expenses.
The hourly rate of Ralph Preite, Esq., is $625. Mr. Preite is the
attorney at Koutsoudakis who will perform the bulk of the legal
services in this matter.
As disclosed in court filings, Koutsoudakis & Iakovou is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached at:
Ralph E. Preite, Esq.
Koutsoudakis & Iakovou Law Group, PLLC
40 Wall Street, 49th Floor
New York, NY 10005
Main: (212) 404-8644
Direct: (212) 404-8608
Email: ralph@kilegal.com
About WB Maintenance Inc.
WB Maintenance Inc. sought protection for relief under Chapter 11
of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 22-41755) on July
22, 2022, listing under $1 million in both assets and liabilities.
Ralph E Preite, Esq. at Koutsoudakis & Iakovou Law Group PLLC
represents the Debtor as counsel.
WYTHE BERRY: Involuntary Chapter 11 Case Summary
------------------------------------------------
Alleged Debtor: Wythe Berry Fee Owner LLC
55 Wythe Avenue
Brooklyn, NY 11249
Involuntary Chapter
11 Petition Date: October 6, 2022
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 22-11340
Petitioners' Counsel: Michael Friedman, Esq.
CHAPMAN AND CUTLER LLP
1270 Avenue of the Americas
New York, NY 10020
Tel: 212-655-2509
Email: friedman@chapman.com
A full-text copy of the Involuntary Petition is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/HX2RXCQ/Wythe_Berry_Fee_Owner_LLC__nysbke-22-11340__0001.0.pdf?mcid=tGE4TAMA
Alleged creditors who signed the petition:
Petitioner Nature of Claim Claim Amount
---------- ------------------ -------------
Mishmeret Trust Unsecured Guaranty not less than
Company Limited $18,600
48 Derech Menachem Begin
Tel Aviv-Yafo, Israel 6618003
Yelin Lapidol Provident Unsecured Guaranty not less than
Funds Management Ltd $18,600
Migdal Al, Dizengoff 50
Tel Aviv, Israel 6433222
The Phoenix Insurance Unsecured Guaranty not less than
Company Limited $18,600
Derech Hashalom 53
Giv'atayim, Israel 53545
Klirmark Opportunity Unsecured Guaranty not less than
Fund III L.P. $18,600
2a Jabotinsky Street
Ramat Gan, Israel 5250501
[*] 73 Greenberg Traurig Attorneys Included on 2022 NY Metro List
-----------------------------------------------------------------
Global law firm Greenberg Traurig, LLP has 73 attorneys included on
the 2022 New York Metro Super Lawyers and Rising Stars lists. Of
these, 50 are on the "Super Lawyers" list and 23 are included on
the "Rising Stars" list.
The selection process is multiphased and includes independent
research, peer nominations, and evaluations that identify a high
degree of peer recognition and professional achievement, according
to the Super Lawyers website.
The Greenberg Traurig attorneys recognized on the New York Metro
Super Lawyers list, and their corresponding category/practice area
include:
Farah S. Ahmed, Real Estate
Anastasia A. Angelova, Securities Litigation
Daniel J. Ansell, General Litigation
Dennis J. Block, Mergers & Acquisitions
Julie P, Bookbinder, Intellectual Property Litigation
Scott J. Bornstein, Intellectual Property Litigation
Philip H. Cohen, General Litigation
Kathryn C. Cole, Business Litigation
Richard A. Edlin, Securities & Corporate Finance
Michael E. Feinstein, General Litigation
Daniel P. Filor, Criminal Defense: White Collar
Jerrold F. Goldberg, Employment & Labor
Caroline J. Heller, General Litigation
Michael D. Helsel, Mergers & Acquisitions
Joseph A. Herz, Securities & Corporate Finance
Linda B. Hirschson, Estate & Probate
Robert J. Ivanhoe, Real Estate
Kate Kalmykov, Immigration: Business
Barbara T. Kaplan, Tax
Warren J. Karp, Real Estate
Glenn S. Kerner, Class Action
Gary S. Kleinman, Real Estate
Kristen J. Lonergan, Real Estate
Jeffrey D. Mamorsky, Employee Benefits
Steve Mastbaum, Tax
John P. McEntee, Business Litigation
David I. Miller, Criminal Defense: White Collar
Peter A. Miller, Real Estate
Michael A. Nicodema, Intellectual Property Litigation
David W. Oppenheim, Franchise/Dealership
Breton H. Permesly, Franchise/Dealership
Kenneth A. Philbin, Real Estate
Oscar N. Pinkas, Bankruptcy: Business
Rose Cordero Prey, Intellectual Property
Stephen L. Rabinowitz, Real Estate
Joshua L. Raskin, Intellectual Property Litigation
Keith E. Reich, Real Estate
Steven C. Russo, Environmental
Paul D. Schindler, Entertainment & Sports
Howard S. Schochet, Real Estate
Jay A. Segal, Land Use/Zoning
Francis J. Serbaroli, Health Care
Howard R. Shapiro, Real Estate
Barry E. Shimkin, Real Estate
Kenneth M. Sklar, Real Estate
Jonathan L. Sulds, Employment & Labor
Alan N. Sutin, Intellectual Property
Mary F. Voce, Tax
Edward C. Wallace, Business/Corporate
Kenneth Zuckerbrot, Tax
Greenberg Traurig attorneys on the New York Metro Rising Stars list
include:
Ejim Peter Achi, Mergers & Acquisitions
Randall E. Allen, Real Estate
Jeffrey R. Colin, Intellectual Property Litigation
Jonathan R. Cyprys, Securities Litigation
Charles C. Dunham IV, Health Care
Martin C. Fojas, Employment Litigation: Defense
Harry Fournaris, Real Estate
Matthew Handler, Real Estate
Sara A. Hoffman, Bankruptcy: Business
Harrison S. Kleinman, Real Estate
Steve Lazar, Civil Litigation: Plaintiff
Sarah D. Lemon, Creditor Debtor Rights
Jarret Meskin, Real Estate
Leo Muchnik, Bankruptcy: Business
Adam S. Namoury, Mergers & Acquisitions
Tianja Samuel, Real Estate
Cory Santos, Mergers & Acquisitions
Giancarlo Scaccia, Intellectual Property Litigation
Ryan Sirianni, Business Litigation
India L. Sneed, Government Relations
Ryan A. Wagner, Bankruptcy: Business
Brian N. Wheaton, Securities & Corporate Finance
Benjamin Wood, Securities Litigation
About Greenberg Traurig
Greenberg Traurig, LLP -- http://www.gtlaw.com-- has more than
2500 attorneys in 43 locations in the United States, Europe, Latin
America, Asia, and the Middle East. The firm reported gross revenue
of over $2 Billion for FY 2021 and is consistently among the top
firms on the Am Law 100, Am Law Global 100, and NLJ 250. On the
debut 2022 Law360 Pulse Leaderboard, it is a Top 15 firm. Greenberg
Traurig is Mansfield Rule 4.0 Certified Plus by The Diversity Lab
and the Center for Resource Solutions Green-e(R) Energy program
certifies that the firm's U.S. offices are 100% powered by
renewable energy. The firm is often recognized for its focus on
philanthropic giving, innovation, diversity, and pro bono.
[*] Andrew Owens Joins Stroock's FSLRE Group
--------------------------------------------
Stroock welcomed Andrew Owens to its New York office as a partner
in its Financial Services Litigation, Regulation and Enforcement
(FSLRE) group.
"Andy represents some of the largest and best recognized investment
and commercial banks, credit card companies and tech-forward
financial services companies in the industry," said Julia
Strickland, head of Stroock's FSLRE group. "With exceptional
experience counseling companies at the leading edge of the payments
industry, Andrew is a great fit with our current FLSRE team while
also bringing a new dimension to our offering and expanding our
capabilities. We are delighted to welcome him to the firm."
Mr. Owens practice focuses on advising payment card issuers and
retailers on issues arising from banking and consumer financial
services regulation. He has a special focus on federal and state
regulation of consumer credit, advising clients on matters
concerning the Truth in Lending Act, the Electronic Fund Transfer
Act, the Fair Credit Reporting Act, the Equal Credit Opportunity
Act, E-SIGN, and the Servicemembers Civil Relief Act.
Mr. Owens regularly advises retailers on terms and conditions for
loyalty programs and has experience with joint ventures, executive
employment and severance, sales agency, governance, and corporate
counseling. He represents issuers, processors, and other parties in
negotiating cobrand, private-label, and agent bank card agreements,
and advises financial institutions and retailers on billing and
payment systems issues.
"We are thrilled to welcome Andy to the firm," Co-managing Partner
Alan Klinger said. "It's great to add another significant financial
services attorney as we expand the range of services we offer our
core institutional clients from this industry."
"Stroock's outstanding, like-minded attorneys offer me unique
opportunities, support and resources to continue to grow my
practice and contribute to the growth of a great firm," Mr. Owens
said. Mr. Owens earned his J.D. from Columbia Law School and his
B.A. from Yale University. His practice most closely complements
the work of Allen Denson, who joined Stroock in December 2021, and
follows the more recent expansion of Stroock's Restructuring and
Bankruptcy group, which included partners Richard Stern, Matthew
O'Donnell, Alex Talesnick, and Stephan Hornung, senior counsel
Michael Luskin, and associate Genna Grossman.
About Stroock
Stroock -- http://www.stroock.com/-- provides strategic
transactional, regulatory, and litigation advice to advance the
business objectives of leading financial institutions,
multinational corporations, and entrepreneurial businesses in the
U.S. and globally. With a rich history dating back 145+ years, the
firm has offices in New York, Los Angeles, Miami, and Washington,
D.C.
[*] Four Attorneys Elected to McDonald Hopkins' Membership
----------------------------------------------------------
McDonald Hopkins on Oct. 5 announced the election of attorneys
Christopher Allen, Craig Distel, David Schelberg, and Amy Willey to
the firm's membership.
"Christopher, Craig, David, and Amy each possess great expertise in
their fields of practice and provide their clients with the highest
level of service and dedication. I am pleased they have been
elected to join the firm's membership," said James Giszczak,
Co-President of McDonald Hopkins. "They are committed to
maintaining the firm's core values and continuing to build upon the
success McDonald Hopkins has experienced over the past year."
Allen is based in the firm's Chicago office and is a member of the
Litigation Department. Distel works in the West Palm Beach office
and is a member of the Litigation Department and Construction
Practice Group. Schelberg, who is based in the Detroit office,
works in the Labor and Employment Practice Group. Willey works at
the Cleveland office and is a member of the firm's Business
Department, Mergers and Acquisitions Practice Group, and is a Chair
of the firm's ESG practice area.
Christopher Allen's experience working as a litigation attorney
includes general commercial litigation, class action defense,
appellate litigation, intellectual property litigation, consumer
fraud, white collar defense, bankruptcy, restructuring, and
securities. His class action defense work involving data privacy
litigation, and claims under the Illinois Biometric Information
Privacy Act, has made him well known in his practice focus.
Craig Distel is a Florida Bar Board Certified Specialist in
Construction Law. He represents developers, owners, contractors,
subcontractors, and design professionals in contract negotiation,
lien disputes, project management disputes, construction defect
disputes, and general litigation. Distel also provides advice to
large and small businesses in commercial litigation and employment
matters.
David Schelberg focuses his practice on employment defense by
representing employers in state, federal, and administrative
matters involving claims of discrimination, retaliation,
harassment, disability, whistleblower, employee discipline, wage
and hour, medical leave, labor disputes, and unfair labor
practices. David also specializes in trade secret, non-competition,
and non-solicitation litigation, as well as counseling employers on
a full range of employment issues.
Amy Willey represents both strategic buyers and sellers, including
private companies and private equity funds in various transactions,
such as mergers and acquisitions, dispositions, leveraged buyouts,
distressed acquisitions, and investments. She also works with
family and privately owned businesses on a variety of corporate
matters. Willey is committed to helping her clients as they grow
their companies or as clients negotiation transactions by helping
entrepreneurs, entities, and business owners navigate various ESG
matters.
About McDonald Hopkins
Founded in 1930, McDonald Hopkins -- http://www.mcdonaldhopkins.com
-- is a business advisory and advocacy law firm with locations in
Baltimore/Annapolis, Chicago, Cleveland, Columbus, Detroit, and
West Palm Beach. With more than 50 service and industry teams, the
firm has the expertise and knowledge to meet the growing number of
legal and business challenges our clients face.
[*] Hawaii Statewide Bankruptcies Rose 21.8% in August 2022
-----------------------------------------------------------
Cynthia Yip of KITV4 reports that high inflation and rising
interest rates could be putting the squeeze on the pocket books of
Hawaii residents.
For the first time in 16 months, statewide bankruptcies increased
from the year-earlier period: with filings jumping 21.8% in August
2022.
The 106 cases in August, marked the first time the bankruptcy
filings reached triple digits after more than a year of fewer than
100 monthly filings.
Brian von Ahsen played music for fun while he worked as a handivan
driver in Hawaii. In 2018, he found out he had prostate cancer. He
also received a bill of $100,000 for surgery he couldn't afford to
pay.
Brian von Ahsen, with Filed for Bankruptcy says, "I felt
overwhelmed, I just didn't know what to do. I was just overwhelmed
that kind of thing. I'm not a rich man I've never been a rich man
or made a lot of money, and to get a bill of over 100 thousand or
over that is overwhelming." I just can't imagine what I was going
to do."
So Von Ahsen turned to bankruptcy attorney Greg Dunn for help.
Greg Dunn, Bankruptcy Attorney, says "Given the ongoing economic
challenges, that people face it seems that this increase in
bankruptcies will continue. Higher inflation, rising inflation
rates have contributed in the rise in bankruptcies recently."
Greg Dunn helped von Ahsen file for Chapter 13 Bankruptcy in which
he paid $412 a month for about 2 years. When he retired from
Handivan, von Ahsen then filed for Chapter 7, which meant he
didn’t have to pay off the rest of the money he owed to the
hospital.
Greg Dunn, Bankruptcy Attorney, says "A lot of my clients are
saying the cost of living is so high, gas is so, high food is high,
they can't afford it, and even though they are trying to make more
money by getting a second job -- that's just not enough." "I've
never been in a situation in my 34 years of practicing bankruptcy
law I've never been in this situation with this type of inflation,
and high interest rates."
Brian von Ahsen, is now fully retired and living in Minnesota where
he has been playing music. He hopes that science will soon find a
cure for the cancer he is still living with.
[*] Two Trial Lawyers Join Meadows Collier Law Firm
---------------------------------------------------
Two longtime and accomplished business litigators have joined
Meadows, Collier, Reed, Cousins, Crouch & Ungerman LLP in Dallas,
further strengthening the firm's extensive capabilities in complex
commercial litigation.
Craig Simon is a skilled trial lawyer who has represented clients
ranging from large public companies to individual entrepreneurs in
high-stakes litigation and arbitration across the nation. In a
legal career that spans more than 30 years, Mr. Simon has proven
adept at successfully prosecuting and defending a wide range of
business disputes, including cases involving financial, accounting
and valuation issues, bankruptcy and insolvency-related claims, and
trade secret and noncompete litigation. He has been repeatedly
recognized as one of the Top 100 Lawyers in Texas by Thomson
Reuters' Super Lawyers, on the list of the Best Lawyers in America
every year since 2016, and among the Best Lawyers in Dallas by D
Magazine for nine consecutive years.
Paula Reichenstein has a broad-based litigation background, with
experience representing clients in several national and
high-profile "bet-the-company" cases as well as a range of
contract, business tort and product liability claims for both
plaintiffs and defendants. This work has often hinged on the
development of novel legal theories or the application of existing
laws in unconventional ways. Ms. Reichenstein's practice spans
state and federal court as well as appellate work.
"We're honored to have these two distinguished attorneys join our
firm, bringing a reputation for excellence and record of success
for their clients," says the firm's managing partner, Anthony
Daddino. "We're entering an increasingly dynamic time for
litigation across virtually every business sector, and their
experience and counsel will be invaluable."
Both Mr. Simon and Ms. Reichenstein join the firm from Loewinsohn
Deary Simon Ray LLP in Dallas, and each previously practiced for
many years in the Dallas office of Jones Day.
Mr. Simon earned his law degree magna cum laude from Southern
Methodist University's Dedman School of Law and holds both master's
and undergraduate degrees in accounting from The University of
Texas in Austin.
Ms. Reichenstein received her law degree cum laude from The
University of Texas School of Law, and her undergraduate degree
from Colorado State University.
Attorneys with Meadows, Collier, Reed, Cousins, Crouch & Ungerman
bring both dedication and experience to clients' legal matters.
With origins in tax planning and tax litigation practice, the firm
also provides counsel to clients with a variety of other
specialized legal needs, including business and estate planning,
probate, real estate, securities, banking, and commercial
litigation. The firm also has a longstanding concentration in the
area of white-collar defense and government regulatory practice.
[^] BOOK REVIEW: THE ITT WARS
-----------------------------
THE ITT WARS: An Insider's View of Hostile Takeovers
Author: Rand Araskog
Publisher: Beard Books
Softcover: 236 pages
List Price: $34.95
http://www.beardbooks.com/beardbooks/the_itt_wars.html
This book was originally published in 1989 when the author was
Chairman and Chief Executive Officer of ITT Corporation, a $25
billion conglomerate with more than 100,000 employees and
operations spanning the globe with an amazing array of businesses:
insurance, hotels, and industrial, automotive, and forest products.
ITT owned Sheraton Hotels, Caesars Gaming, one half of Madison
Square Garden and its cable network, and the New York
Knickerbockers basketball and the New York Rangers hockey teams.
The corporation had rebounded from its troubles of the previous two
decades.
Araskog was made CEO in 1978 to make sense of years of wild
acquisition and growth. Under Harold Greenen, successor to ITT's
founder and champion of "growth as business strategy," ITT's sales
had grown from $930 million in 1961 to $8 billion in 1970 and $22
billion in 1979. It had made more than 250 acquisitions and had
2,000 working units. (It once acquired some 20 companies in one
month.)
ITT's troubles began in 1966, when it tried to acquire ABC.
National sentiments against conglomerates became endemic; the
merger became its target and was eventually abandoned. Next came a
variety of allegations, some true, some false, all well publicized:
funding of Salvador Allende's opponents in Chile's 1970
presidential elections; influence peddling in the Nixon White
House; underwriting the 1972 Republican National Convention. ITT's
poor handling of several antitrust cases was also making
headlines.
Then came recession in 1973. ITT's stock plummeted from 60 in early
1973 to 12 in late 1974. Geneen found himself under fire and, in
Araskog's words, the "succession wars" among top ITT officers
began. Geneen was forced out in 1977, and Araskog, head of ITT's
Aerospace, Electronics, Components, and Energy Group, with more
than $1 billion in sales, won the CEO prize a year later.
Araskog inherited a debt-ridden corporation. He instituted a plan
of coherent divesting and reorganization of the company into more
manageable segments, but was cut short by one of the first hostile
bids by outside financial interests of the 1980's, by businessmen
Jay Pritzker and Philip Anschutz. This book is the insider's story
of that bid.
The ITT Wars reads like a "Who's Who" of U.S. corporations in the
1970s and 1980s. Araskog knew everyone. His writing reflects his
direct, passionate, and focused management style. He speaks of
wars, attacks, enemies within, personal loyalty, betrayal, and love
for his company and colleagues. In the book's closing sentences,
Araskog says, "We fought when the odds are against us. We won, and
ITT remains one of the most exciting companies of the twentieth
century, we hope to keep the wagon train moving into the
twenty-first century and not have to think about making a circle
again. Once is enough."
Araskog wrote a preface and postlogue for the Beard Books edition,
and provide us with ten years of perspective as well as insights
into what came next. In 1994, he orchestrated the breakup of ITT
into five publicly traded companies. Wagon circling began again in
early 1997 when Hilton Hotels made a hostile takeover offer to ITT
Corporation. Araskog eventually settled for a second-best victory,
negotiating a friendly merger with the Starwood Corporation, in
which ITT shareholders became majority owners of Starwood and
Westin Hotels, with the management of Starwood assuming management
of the merged entity.
Rand Araskog served as CEO of ITT Corporation until 1998. He later
headed his own investment company RVA Investments. He also served
on the Board of Directors of Cablevision and the Palm Beach Civic
Association. Araskog was born in Fergus Falls, Minnesota, in 1931.
He died August 9, 2021, in Palm Beach, Florida.
*********
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
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re-mailing and photocopying) is strictly prohibited without prior
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herein is obtained from sources believed to be reliable, but is
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The TCR subscription rate is $975 for 6 months delivered via
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are $25 each. For subscription information, contact Peter A.
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*** End of Transmission ***