/raid1/www/Hosts/bankrupt/TCR_Public/240606.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Thursday, June 6, 2024, Vol. 28, No. 157
Headlines
1333 BAECHER LANE: Taps Mcdonald Sutton & Duval as Legal Counsel
301 W NORTH: Seeks to Hire Much Shelist P.C. as Counsel
921-923 E BROADWAY: Voluntary Chapter 11 Case Summary
ACCELERATE DIAGNOSTICS: Hires Withum to Replace EY as Auditor
AHS REALTY: Holly Miller of Gellert Named Subchapter V Trustee
ALPACKA GROUP: Court OKs Cash Collateral Access Thru Aug 31
ALTICE USA: Creditors Hire PJT Partners to Give Debt Advice
AMERICAN PAVING: Hires Hodges and Davis P.C. as Legal Counsel
ANN ARBOR SAND: Updates Reorganizing Plan Disclosures
APL CARGO: Seeks Cash Collateral Access
APPGATE INC: Hires Kirkland & Ellis as Bankruptcy Counsel
APPGATE INC: Hires Portage Point Partners as Investment Banker
APPGATE INC: Seeks to Hire Cole Schotz PC as Delaware Co-Counsel
APPGATE INC: Seeks to Hire Donlin Recano as Administrative Advisor
APPGATE INC: Taps Grant Thornton LLP to Provide Tax Services
ARIEL SHOPPING: Voluntary Chapter 11 Case Summary
AT HOME GROUP: Moody's Alters Outlook on 'Caa3' CFR to Stable
AUBREY PROPERTIES: Hires Law Firm of Keck Legal as Counsel
BAYOU CITY: Hires Fealy Law Fealy PC as Attorney
BEECH TREE: Taps Cunningham Chernicoff & Warshawsky as Counsel
BEN'S CREEK: Committee Hires Whiteford Taylor as Counsel
BEST HOME: Court OKs Cash Collateral Access Thru June 30
BISHOP OF OAKLAND: Hires Veracruz Advisory as Financial Consultant
BLU PRINT: Hires Keller William Realty Inc. as Realtor
BOMBARDIER INC: S&P Upgrades ICR to 'B+' on Continued Deleveraging
BRENDAN GOWING: Case Summary & Two Unsecured Creditors
BRINK COMPANY: Moody's Rates New Unsec. Notes Due 2029 'Ba3'
BRINK'S CO: S&P Raises ICR to 'BB+' on Strengthened Credit Metrics
BROKEN ARROW: Drew McManigle Named Subchapter V Trustee
BULLDOG PURCHASER: S&P Raises ICR to 'B-' on Expected Deleveraging
BURGESS BUNGALOW: Seeks Cash Collateral Access
CANDLE DELIRIUM: Case Summary & 20 Largest Unsecured Creditors
CAPITAL TACOS: Wins Interim Cash Collateral Access
CAPROCK MILLING: Asset Sale Proceeds to Fund Plan Payments
CDO LONESTAR: Hires Villa & White LLP as Bankruptcy Counsel
CGI 1100 BISCAYNE: Lender Sets June 24 Auction for Property
CHARLIE'S HOLDINGS: Grosses $1.63 Million From Stock Offering
CLARIOS GLOBAL: S&P Raises ICR to 'BB-' on Improved Credit Metrics
CLAROS MORTGAGE: Moody's Cuts CFR to B1 & Alters Outlook to Stable
CONVERGEONE HOLDINGS: Completes Financial Restructuring Process
CRYSTAL PACKAGING: Case Summary & 20 Largest Unsecured Creditors
CURVES AND COMBAT: Case Summary & 13 Unsecured Creditors
DANT A. SANDRAS: Case Summary & 18 Unsecured Creditors
DEWILL RESTAURANT: Hires David L. Spector PC as Accountant
DIAMOND EAGLE: Hires Law Office of Charles A. Higgs as Co-Counsel
DIMENSIONS IN SENIOR: Creditors to Get Proceeds From Liquidation
DIMENSIONS IN SENIOR: Unsecureds to Get 100% in Fort Calhoun's Plan
DIMENSIONS IN SENIOR: Unsecureds Will Get 100% in Humboldt's Plan
DIMENSIONS IN SENIOR: Unsecureds Will Get 100% in IOLA's Plan
DISTRIBUIDORA NARANJITO: Taps Cynthia Fraticelli as Accountant
DNC AND TCPA: Joli Lofstedt Named Subchapter V Trustee
ENGLOBAL CORP: Receives Notice of Listing Suspension From Nasdaq
FHT RENTAL: Unsecured Creditors to Get 0% in Plan
FTX GROUP: Bahamas Chief Gets 7.5 Yrs. Jail Sentence
FULCRUM BIOENERGY: Company That Raised $1B in Danger of Collapse
GABRIEL CUSTOM: Hires Law Offices of R. Keith Johnson as Counsel
GCPS HOLDINGS: Involuntary Chapter 11 Case Summary
GRAY TELEVISION: Closes Refinancing of $1.15-Bil. Term Loan
GREAT EASTERN: Case Summary & 20 Largest Unsecured Creditors
GREENWAVE TECHNOLOGY: Effects 1-for-150 Reverse Stock Split
GREENWAVE TECHNOLOGY: Eliminates Series D Preferred Stock
GREENWICH INVESTMENT: Files Emergency Bid to Use Cash Collateral
HAQUE MEDICAL: Unsecureds Will Get 100% of Claims in 36 Months
HERC HOLDINGS: Moody's Rates New $500MM Sr. Unsecured Notes 'Ba3'
HERC HOLDINGS: S&P Rates New $500MM Senior Unsecured Notes 'BB-'
HIBBLER HOLDINGS: Craig Geno Named Subchapter V Trustee
IGLESIA DE DIOS: Hires Montero Law Group LLC as Counsel
IN FLOWERS: Nicole Nigrelli Named Subchapter V Trustee
JAIRRABRANDY REALTY: Taps Hemant Bhupsingh as Real Estate Broker
JINGBO TECHNOLOGY: Delays Filing of FY 2023 Annual Report
JUN ENTERPRISE: Hires Law Firm of Gamberg & Abrams as Counsel
KIDKRAFT INC: Hires Robert W. Baird & Co. as Investment Banker
KJB HOLDINGS: Hires Mark J. Lazzo P.A. as Legal Counsel
KULR TECHNOLOGY: SEPA Facility With Yorkville Expires
LGID NY: Files Amendment to Disclosure Statement
LOCUS DIGITAL: Court OKs Cash Collateral Access on Final Basis
LSF11 A5 HOLDCO: Moody's Affirms 'B2' CFR, Outlook Remains Stable
LTL MANAGEMENT: Keller Postman Backs J&J's Bankruptcy Plan
MADISON 33 PARTNERS: Case Summary & Seven Unsecured Creditors
MAGNOLIA ROSE: Case Summary & 20 Largest Unsecured Creditors
MARJALINAT INC: Seeks Cash Collateral Access
MASHINDUSTRIES INC: Hires BG Law LLP as General Bankruptcy Counsel
MASHINDUSTRIES INC: Hires Stretto as Claims Noticing Agent
MAVERICK GAMING: S&P Upgrades ICR to 'CCC', Outlook Negative
MEDALLION MIDLAND: Moody's Ups CFR to B1 & Alters Outlook to Stable
MEET UP PG: Hires Law Office of Geri Lyons Chase as Counsel
MERMAID BIDCO: S&P Ups ICR To 'B' on Strengthening Credit Metrics
METROPOLITAN THEATRES: Hires Glassratner as Financial Advisor
MILLENKAMP CATTLE: Comm. Taps Elsaesser Anderson as Local Counsel
MILLENKAMP CATTLE: Committee Taps O'Melveny & Myers as Lead Counsel
MILLENKAMP CATTLE: Seeks to Hire Cooper Norman as Accountant
MILWAUKEE INSTRUMENTS: Hires Northen Blue as Bankruptcy Counsel
MILWAUKEE INSTRUMENTS: Taps PKF Clear Thinking as Financial Advisor
MINI MANIA: Case Summary & 20 Largest Unsecured Creditors
MJW MARKETING: Wins Cash Collateral Access on Final Basis
MMA LAW: Committee Taps Okin Adams Bartlett Curry LLP as Counsel
NEXTTRIP INC: Delays 2023 Annual Report to Finalize Disclosures
NIRVANA INVESTMENT: Voluntary Chapter 11 Case Summary
NO LIMITS AVIATION: Seeks to Tap Johnson May as Bankruptcy Counsel
NORDICUS PARTNERS: Appoints Peter Severin as Board Chairman
NORTH GEORGIA NURSING: Taps Robert L. Abrams CPA as Accountant
NOVA LIFESTYLE: All Four Proposals Passed at Annual Meeting
NOVO INTEGRATED: Amends $70M Promissory Note With RC Consulting
NUMBER HOLDINGS: Committee Taps Kelley Drye as Special Co-Counsel
ORIGIN AGRITECH: Hires Enrome LLP to Replace BF Borgers as Auditor
OVG BUSINESS: S&P Assigns 'B' ICR on Debt Refinancing
PATRIOT LINEN: Court OKs DIP Loan From Capital Credit
PHUNWARE INC: Signs $120M Distribution Agreement With Canaccord
PIZZA PALS: Wins Cash Collateral Access on Final Basis
POLAR POWER: Posts $2.1 Million Net Loss in Q1 2024
PORTUGUESE BEND: Creditors to Get Proceeds From Liquidation
PRIMARY PRODUCTS: S&P Affirms 'BB-' ICR, Outlook Stable
PROSOMNUS INC: Hires Gavin/Solmonese LLC as Financial Advisor
PROSOMNUS INC: Hires Kurtzman Carson as Administrative Advisor
PROSOMNUS INC: Hires Polsinelli PC as Bankruptcy Counsel
PROSOMNUS INC: Taps Wilson Sonsini as Special Corporate Counsel
QUIRCH FOODS: Moody's Cuts CFR to B3 & 1st Lien Term Loan to Caa1
R&W CLARK CONSTRUCTION: Wins Cash Access Thru June 30
RAI INC: Wins Continued Cash Collateral Access
REDLINE INC: Voluntary Chapter 11 Case Summary
REGO PAYMENT: Losses, Negative Cash Flow Raise Going Concern Doubt
RIBBON COMMUNICATIONS: Financial Strain Raises Going Concern Doubt
RIDGELINE CAPITAL: Case Summary & Two Unsecured Creditors
RODA LLC: Seeks Continued Cash Collateral Access
SATURN OIL: Moody's Assigns First Time 'B2' Corp. Family Rating
SATURN OIL: S&P Assigns 'B' Long-Term Issuer Credit Rating
SC HEALTHCARE: Seeks to Hire Duane Morris LLP as Special Counsel
SHINECO INC: Recurring Losses Raise Going Concern Doubt
SHROG REALTY: Salvatore LaMonica Named Subchapter V Trustee
SOLFIRE CONTRACT: Hires McNamee Hosea as Bankruptcy Counsel
SOLFIRE CONTRACT: Seeks to Hire Foudy CPA Group as Accountant
SOLID BIOSCIENCES: Raises Going Concern Doubt
SOLUNA HOLDINGS: Financial Strain Raises Going Concern Doubt
SONIDA SENIOR: Board Committee Fires RSM US LLP as Auditor
SOUTH HILLS: Taps Blueprint and Cummings and Co. as Realtors
STARBRIDGE (ONTARIO): Taps Robbin L. Itkin as Independent Manager
STERLING CREDIT: Voluntary Chapter 11 Case Summary
STEWARD HEALTH: PCO Taps Ross Smith & Binford as Legal Counsel
SVB FINANCIAL: Unsecureds Owed $180M to Get 40% to 93% in Plan
TENNECO INC: S&P Withdraws 'B-' Rating on Senior Unsecured Debt
THERMOGENESIS HOLDINGS: Unit Inks Supply Agreement With CBR Systems
TITAN ENVIRONMENTAL: Financial Woes Raise Going Concern Doubt
TREE HOUSE: Hires Hagood Law Group as Special Litigation Counsel
TRP BRANDS: Seeks to Hires FGMK LLC as Accountant
TURF APPEAL: Seeks to Hire Flinton Smallwood CPA as Accountant
VFH PARENT: Moody's Lowers CFR to Ba3 & Issuer Rating to B1
VICTORY TRANSPORTATION: Christy Brandon Named Subchapter V Trustee
VVI HOLDINGS: Hires Law Office of Geri Lyons Chase as Counsel
WEISS MULTI-STRATEGY:Jefferies Wants $30Mil. Bonus Payouts Clawback
WEWORK INC: Adam Neumann Ends Bid to Buy Company
WISA TECHNOLOGIES: Cancels Special Meeting Due to Lack of Quorum
XINYUAN REAL: Assentsure PAC Raises Going Concern Doubt
YZ ENTERPRISES: Seeks Cash Collateral Access
[*] Judges Adopt Guidelines for Combined Disclosure Statement, Plan
[] Real Estate Auction Slated for June 19
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
1333 BAECHER LANE: Taps Mcdonald Sutton & Duval as Legal Counsel
----------------------------------------------------------------
1333 Baecher Lane VA, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of Virginia to hire Mcdonald, Sutton
& Duval, PLC as its counsel.
The Debtor proposes to hire McDonald, Sutton & DuVal, PLC to give
legal advice regarding its duties under the Bankruptcy Code, and
provide other legal services related to its Chapter 11 case.
The hourly rates charged by the firm are:
Kevin Lake, Attorney $495
Associates $350
Elizabeth A. D'Arcy, Paralegal $175
Kevin Lake, Esq., a partner at McDonald, disclosed in a court
filing that he and his firm are "disinterested persons" as defined
in section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Kevin A. Lake, Esq.
McDonald, Sutton & DuVal, PLC
5516 Falmouth Street, Suite 108
Richmond, VA 23230
Phone: (804) 643-0000
E-mail: klake@mcdonaldsutton.com
About 1333 Baecher Lane VA, LLC
1333 Baecher Lane VA, LLC sought protection for relief under
Chapter 11 of the Bankruptcy Code (Bankr. E.D. Va. Case No.
24-70619) on March 26, 2024, listing $500,001 to $1 million in
assets and $100,001 to $500,000 in liabilities.
Kevin A. Lake, Esq. at Mcdonald, Sutton & Duval, PLC represents the
Debtor as counsel.
301 W NORTH: Seeks to Hire Much Shelist P.C. as Counsel
-------------------------------------------------------
301 W North Avenue, LLC seeks approval from the U.S. Bankruptcy
Court for the North District of Illinois to employ Much Shelist,
P.C. as counsel.
The firm will provide these services:
a. provide legal advice with respect to the Debtor's powers
and duties as a debtor-in-possession under the Bankruptcy Code;
b. provide legal advice with respect to any plan filed in the
Cases and the approval or disapproval of and confirming or denying
of a plan;
c. prepare applications to employ attorneys, accountants or
other professional persons, motions for turnover, for the use, sale
or lease of property, to assume or reject executory contracts, and
other necessary actions within this Cases, plans, notices,
complaints, answers, orders, reports, objections to claims or to
motions filed by participants in the Cases other than the Debtors,
legal documents and any other necessary documents or pleadings, all
in furtherance of the goal of achieving the reorganization of
Debtor's business;
d. negotiate with creditors and other parties-in-interest,
appearing in Court to present necessary motions, applications, and
pleadings and otherwise protecting the interests of the Debtor,
including the objection or estimating of claims asserted against
the estate, as appropriate;
e. investigate the basis for possible avoidance actions; and
f. perform all of the legal services for the Debtor that may
be necessary and proper in these proceedings.
The firm will be paid at these rates:
Jeffrey Schwartz, Principal $685 per hour
Robert Glantz, Principal $705 per hour
Hajar Jouglaf, Associate $410 per hour
Anthony Hernandez, Paralegal $290 per hour
The firm received and advanced a retainer in the amount of
$60,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Robert W. Glantz, Esq., a partner at Much Shelist, P.C., 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:
Robert W. Glantz, Esq.
Jeffrey M. Schwartz, Esq.
MUCH SHELIST, P.C.
191 N. Wacker Drive, Suite 1800
Chicago, IL 60606
Telephone: (312) 521-2000
Facsimile: (312) 521-3000
Email: rglantz@muchlaw.com
jschwartz@muchlaw.com
About 301 W North Avenue, LLC
301 W North Avenue, LLC is engaged in activities related to real
estate.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-02741) on February
27, 2024. In the petition signed by F. Martin Paris, Jr., president
of MK Manager Corp. as manager of Debtor, the Debtor disclosed up
to $50 million in both assets and liabilities.
Judge Donald R. Cassling oversees the case.
Robert Glantz Much Shelist, P.C., Esq. at MUCH SHELIST PC,
represents the Debtor as legal counsel.
921-923 E BROADWAY: Voluntary Chapter 11 Case Summary
-----------------------------------------------------
Debtor: 921-923 E Broadway LLC
917 East Broadway
Boston, MA 02127
Chapter 11 Petition Date: June 4, 2024
Court: United States Bankruptcy Court
District of Massachusetts
Case No.: 24-11119
Debtor's Counsel: Michael Van Dam, Esq.
VAN DAM LAW LLP
233 Needham Street
Suite 540
Newton, MA 02464
Tel: 617-969-2900
Fax: 617-964-4631
E-mail: mvandam@vandamlawllp.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Maryann Crush as managing member.
The Debtor indicated it has no unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/36Y6P7A/921-923_E_Broadway_LLC__mabke-24-11119__0001.0.pdf?mcid=tGE4TAMA
ACCELERATE DIAGNOSTICS: Hires Withum to Replace EY as Auditor
-------------------------------------------------------------
Accelerate Diagnostics, Inc. reported in a Form 8-K filed with the
Securities and Exchange Commission that on May 31, 2024, the Audit
Committee of the Board of Directors of the Company approved the
dismissal of Ernst & Young LLP ("EY") as the Company's independent
registered public accounting firm, and notified EY of the dismissal
on the same date with an effective date of June 1, 2024.
EY's reports on the Company's financial statements for the fiscal
years ended Dec. 31, 2023 and 2022 did not contain an adverse
opinion or a disclaimer of opinion, and were not qualified or
modified as to uncertainty, audit scope, or accounting principles,
except for the explanatory paragraph relating to the Company's
ability to continue as a going concern contained in EY's reports on
the Company's financial statements for each of the fiscal years
ended Dec. 31, 2023 and 2022.
During the Company's two most recent fiscal years ended Dec. 31,
2023 and 2022, and the subsequent interim period through May 31,
2024, there were (i) no "disagreements" within the meaning of Item
304(a)(1)(iv) of Regulation S-K and the related instructions
thereto with EY on any matter of accounting principles or
practices, financial statement disclosure, or auditing scope or
procedure, which disagreements, if not resolved to the satisfaction
of EY, would have caused it to make reference to the subject matter
of the disagreements in connection with its reports on the
financial statements of the Company for such years, and (ii) no
"reportable events" within the meaning of Item 304(a)(1)(v) of
Regulation S-K, except as described in the following paragraph.
The Company stated that for the fiscal year ended Dec. 31, 2022, a
material weakness existed in the Company's internal control over
financial reporting that prevented the Company from identifying a
misclassification of its convertible notes in the Company's
consolidated balance sheets, which was previously identified by
management and disclosed in Part II, Item 9A of the Company's
Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2022,
filed with the U.S. Securities and Exchange Commission on March 31,
2023. This material weakness was remediated as of Dec. 31, 2023, as
previously reported in the Company's Annual Report on Form 10-K for
the fiscal year ended Dec. 31, 2023, filed with the SEC on March
29, 2024. This reportable event was discussed among the Audit
Committee and EY. EY has been authorized by the Company to respond
fully to the inquiries of the Company's successor independent
registered public accounting firm concerning this reportable
event.
Appointment of New Independent Registered Public Accounting Firm
On May 31, 2024, the Audit Committee approved the engagement of
Withum Smith+Brown, PC as the Company's independent registered
public accounting firm, effective June 1, 2024.
During the Company's two most recent fiscal years ended Dec. 31,
2023 and 2022, and the subsequent interim period through May 31,
2024, neither the Company nor anyone acting on its behalf consulted
with Withum regarding either (a) the application of accounting
principles to a specified transaction, either completed or
proposed, or the type of audit opinion that might be rendered on
the Company's financial statements, and neither a written report
was provided nor oral advice was provided to the Company that
Withum concluded was an important factor considered by the Company
in reaching a decision as to any accounting, auditing or financial
reporting issue, or (b) any matter that was either the subject of a
"disagreement" within the meaning of Item 304(a)(1)(iv) of
Regulation S-K and the related instructions thereto or a
"reportable event" within the meaning of Item 304(a)(1)(v) of
Regulation S-K.
About Accelerate Diagnostics
Tucson, Ariz.-based Accelerate Diagnostics, Inc. is an in vitro
diagnostics company dedicated to providing solutions that improve
patient outcomes and lower healthcare costs through the rapid
diagnosis of serious infections.
Phoenix, Arizona-based Ernst & Young LLP, the Company's auditor
since 2013, issued a "going concern" qualification in its report
dated March 29, 2024, citing that the Company has suffered
recurring losses and negative cash flows from operations and has
stated that substantial doubt exists about the Company's ability to
continue as a going concern.
AHS REALTY: Holly Miller of Gellert Named Subchapter V Trustee
--------------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Holly Miller, Esq.,
at Gellert Scali Busenkell & Brown, LLC as Subchapter V trustee for
AHS Realty LLC.
Ms. Miller will be paid an hourly fee of $425 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Miller declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Holly S. Miller, Esq.
Gellert Scali Busenkell & Brown, LLC
1628 John F. Kennedy Boulevard, Suite 1901
Philadelphia, PA 19103
Telephone: (215) 238-0012
Facsimile: (215) 238-0016
Email: hsmiller@gsbblaw.com
About AHS Realty
AHS Realty LLC is the owner of real property located at 1 Harrison
Ave., Little Silver, N.J., valued at $10.4 million.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Case No. 24-14779) on May 9, 2024,
with $10,400,000 in assets and $4,420,780 in liabilities. Robert
Sickles, sole member, signed the petition.
Daniel M. Stolz, Esq. at Genova Burns, LLC represents the Debtor as
legal counsel.
ALPACKA GROUP: Court OKs Cash Collateral Access Thru Aug 31
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of California,
San Jose Division, authorized Alpacka Group, LLC to use cash
collateral, on an interim basis, in accordance with the budget,
with a 10% variance, through August 31, 2024.
The Debtor is directed to make monthly adequate protection payments
to Heritage Bank of Commerce and the U.S. Small Business
Association in the following amounts: $3,123 to Heritage Bank and
$1,552 to the SBA.
Payments to the SBA will be due on the 20th day of each month.
Payments to Heritage Bank will be made by the monthly deadline
required by the loan documents.
Heritage Bank and the SBA are granted, replacement liens on all
property of the Debtor acquired after the commencement of the case,
except for claims arising under chapter 5 of the Bankruptcy Code,
of the same priority, validity, and extent as their pre-petition
liens but subordinate to claims for compensation and reimbursement
of expenses of professionals employed by the estate and fees
payable to the U.S. Trustee pursuant to 28 U.S.C. Section
1930(a)(6).
Said replacement liens will be deemed perfected by operation of law
upon entry of the order.
A copy of the order is available at https://urlcurt.com/u?l=w8hwUl
from PacerMonitor.com.
About Alpacka Group
Alpacka Group, LLC, is engaged in the warehousing and storage
business in San Jose, Calif.
The Debtor filed Chapter 11 petition (Bankr. N.D. Cal. Case No.
23-51312) on Nov. 8, 2023, with $385,984 in assets and $1,837,435
in liabilities. Michael Applebaum, member, signed the petition.
Judge Elaine Hammond oversees the case.
Michael W. Malter, Esq., at Binder & Malter, LLP, is the Debtor's
legal counsel.
ALTICE USA: Creditors Hire PJT Partners to Give Debt Advice
-----------------------------------------------------------
Reshmi Basu of Bloomberg News reports that a group of Altice USA
creditors has tapped PJT Partners for advice amid growing concerns
that the troubled company will seek to restructure its debt load,
according to people with knowledge of the situation.
The assignment complements the earlier retention of law firm Akin
Gump Strauss Hauer & Feld, said the people, who asked not to be
identified discussing a private matter. The consortium holds a
majority of the company's debt, they said.
Altice USA has a debt pile totaling some $25 billion on a
consolidated basis, company filings show.
Altice is an American cable television provider.
AMERICAN PAVING: Hires Hodges and Davis P.C. as Legal Counsel
-------------------------------------------------------------
American Paving Services, Inc. seeks approval from the U.S.
Bankruptcy Court for the Northern District of Indiana as legal
counsel.
The firm's services include:
a. prepare pleadings and application, and the conduction of
examinations incidental to administration;
b. develop relationship of the status of the
Debtor-in-Possession to the claims of creditors in the bankruptcy
proceedings;
c. advise the Debtor-in-Possession of its rights, duties, and
obligations as debtor-in-possession;
d. perform those legal services incidental and necessary to
the day-to-day operation of the business;
e. take any and all other necessary action incidental to the
proper preservation and administration of the estate in the conduct
of its business.
The firm will be paid at these rates:
Attorneys $290 to $360 per hour
Paralegals $200 per hour
The firm received from the Debtor a retainer of $20,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Shawn D. Cox, Esq., a partner at Hodges and Davis, P.C., 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:
Shawn D. Cox, Esq.
Hodges and Davis, P.C.
8700 Broadway
Merrillville, IN 46410
Tel: (219) 641-8700
Fax: (219) 641-8710
Email: scox@hodgesdavis.com
About American Paving Services, Inc.
American Paving Services, Inc. is a commercial paving company that
moved its principal place of business to Hobart, Indiana from
Portage, Indiana earlier in 2024. American Paving was incorporated
on August 6, 2019. It currently employs about 20 full-time
employees.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ind. Case No. 24-20960) on May 24,
2024.
In the petition signed by Andrew Spiewak, vice president, the
Debtor disclosed up to $50,000 in assets and up to $500,000 in
liabilities.
Shawn D. Cox, Esq., at Hodges and Davis, represents the Debtor as
legal counsel.
ANN ARBOR SAND: Updates Reorganizing Plan Disclosures
-----------------------------------------------------
Ann Arbor Sand Dollar Realty Group, LLC, submitted a First Amended
Disclosure Statement and accompanying Plan of Reorganization dated
May 16, 2024.
The Plan is designed as a mechanism for the reorganization of
Debtor. The Debtor owns certain real property known as 1768 Majors
Path, Southampton, New York (the "Southampton Property").
The Debtor has filed a Motion with the Court seeking a
determination that: (i) the value the Southampton Property is
$740,000; (ii) reclassifying the Wilmington Savings Fund Mortgage
from wholly secured to a secured claim up to the value of the
Southampton Property with the remaining balance reclassified as a
general unsecured claim; and (iii) reclassifying the four junior
liens from secured claims to general unsecured claims.
The Debtor proposes for the sale of the Southampton Property, which
will result in payment of the secured portion of the Wilmington
Savings Fund Claim in full.
Additionally, in addition to the Sale of the Southampton Property,
the Purchaser will enter into a construction contract with Sand
Dollar Development Corp. ("SDDC") with respect to the Southampton
Property, and contingent upon (i) Confirmation of the Debtor's
Chapter 11 Plan; and (ii) the granting of the Shareholder Release
set forth in this Plan, the buyer of the Southampton Property will
advance additional funds in the amount of $200,000 to fund the Plan
(the "Advanced Funds").
The Advanced Funds will be used to fund the Plan and will be
distributed in accordance with the terms of the Plan. The
Shareholder Release provided for in the Plan is necessary in order
for the Debtor to obtain the Advanced Funds that will be used to
fund the Plan. In the absence of the Shareholder Release, there
will be no Advanced Funds provided and there will likely be no
funds available for distribution to unsecured claimholders. The
Debtor therefore strongly urges the holders of Impaired Claims to
vote to accept the Plan.
The Debtor will be filing a Motion seeking Authorization and
Approval of the Sale of the Southampton Property under Section 363
of the Bankruptcy Code before the hearing date on approval of this
disclosure statement.
The Amended Disclosure Statement does not alter the proposed
treatment for unsecured creditors and the equity holder:
* Class 3 Claims consist of allowed general unsecured claims
against the Debtor, including claims that have been reclassified
from secured claims to general unsecured claims, with respect to
which the Claim is secured by a security interest against non
debtor property. Class 3 Claims will be paid a pro rata share of
distributions to unsecured creditors under the Plan.
* Allowed Class 4 Claims consist of allowed general unsecured
claims against the Debtor, including claims that have been
reclassified from secured claims to general unsecured claims, and
for which the Claimholders do not have a security interest against
non-debtor property. Class 4 Claims will be paid a pro rata share
of distributions to unsecured creditors under the Plan.
* On the Effective Date, all class 5 Equity Interests shall be
canceled without any distribution on account of such Equity
Interests, and new interests in the Reorganized Debtor will be
issued 100% to Richard Gherardi. In return, Richard Gherardi will
manage the Debtor and manage the Debtor post confirmation
(hereinafter the "Reorganized Debtor").
On the Effective Date (or as soon after as possible) the Debtor
will pay or reserve (1) Administrative Expense Claims (unless
otherwise agreed upon), Priority Tax Claims, and U.S. Trustee Fees;
(2) priority claims, other than priority tax claims; and (3)
secured claims in full.
The Plan shall be implemented under the direction of the Debtor and
shall be funded by the proceeds of the Sale of the Southampton
Property, and by additional amounts paid by the buyer of the
Southampton Property (the "Advanced Funds") pursuant to a building
contract between the purchaser of the Southampton Property and SDDC
with respect to which SDDC will do certain
Construction/Rehabilitation work with respect to the Southampton
Property and in return for approved permits and plans owned by
SDDC.
A full-text copy of the First Amended Disclosure Statement dated
May 16, 2024 is available at https://urlcurt.com/u?l=Ml1SmS from
PacerMonitor.com at no charge.
The Debtor's Counsel:
Charles Higgs, Esq.
THE LAW OFFICES OF CHARLES A. HIGGS
2 Depot Plaza First Floor, Office 4
Bedford Hills, NY 10507
Tel: (917) 673-3768
E-mail: charles@freshstartesq.com
About Ann Arbor Sand
Ann Arbor Sand Dollar Realty Group, LLC, is engaged in activities
related to real estate.
The Debtor filed a Chapter 11 bankruptcy petition (Bankr. E.D.N.Y.
Case No. 23-72088) on June 9, 2023, with $715,000 in assets and
$2,438,653 in liabilities. Richard Gherardi, managing member,
signed the petition.
Judge Louis A. Scarcella oversees the case.
Charles Higgs, Esq. of THE LAW OFFICES OF CHARLES A. HIGGS, is the
Debtor's legal counsel.
APL CARGO: Seeks Cash Collateral Access
---------------------------------------
APL Cargo, Inc., Indy National Leasing LLC, and Ecosmart Trucks,
Inc. ask the U.S. Bankruptcy Court for the Northern District of
Indiana, Hammond Division, at Lafayette, for authority to use cash
collateral and provide adequate protection.
The Debtors have incurred significant short-term debt in the form
of merchant cash advance loans (estimated in excess of $1.5
million) in fiscal years 2023 and 2024 almost exclusively due to
cash flow issues.
The Debtors have an estimated $27 million in secured and $5 million
in unsecured debt obligations.
The parties that assert an interest in the Debtor's cash collateral
are PNC Equipment Finance, LLC, Tacit 219 Trust, M&K Truck Leasing,
LLC, Compass Payment Services, Corporation Service Company, as
representative, U.S. Small Business Administration, Geneva Capital,
LLC, First Corporate Solutions, CT Corporation System, JRG Funding
LLC, TBK Bank, SSB, Leaf Capital Funding LLC, Samsara Capital
Finance, Sumitomo Mitsui Finance & Leasing Co., Ltd., Amur
Equipment Finance, Inc., People's United Equipment Finance Corp.,
CIMC Leasing USA, Inc., and De Lage Landen Financial Services,
Inc., Commercial Credit Group Inc., Fleetone Factoring, LLC, VFS US
LLC, Hitachi Capital America Corp., De Lage Landen Financial
Services, Inc., Compass Funding Solutions, LLC, BMO Harris Bank
N.A., Signature Financial and Leasing LLC, Siemens Financial
Services, Inc., CIMC Master Trust, Crestmark, PNC Bank, N.A., M&T
Capital and Leasing Corporation, FNCB Bank, and Crossroads
Equipment Lease and Finance, LLC.
Creditors may be entitled to adequate protection of their alleged
interests in Debtors' cash collateral. If and to the extent such
creditors have an interest in Debtors' cash collateral, the
Debtors, agree and request authority to provide adequate protection
as follows:
a) Debtor will maintain the combined value of cash on hand or on
deposit and accounts receivable in the amount of $2,800 during the
period of cash use, which is believed to be the cumulative value of
said cash collateral as of the Petition Date;
b) Creditors have filed UCC financing statements in relation to the
property that constitutes cash collateral in the case, and some or
all of them may be properly perfected. It is also possible that
Debtor has a basis to challenge the interests asserted by
Creditors. As such, until such time as the parties agree or the
Court determines the relative rights of Creditors, if any, in the
cash collateral, the Debtors will grant Creditors post-petition
replacement liens in the cash of Debtors in the total aggregate
amount of the value of the cash collateral that existed as of the
Petition Date to the same extent and priority as their properly
perfected prepetition security interests; and
c) Debtors will use cash collateral only for the operation,
maintenance, and upkeep of all of their Assets and for expenses
incurred in the ordinary course of business.
A copy of the motion is available at https://urlcurt.com/u?l=Ng00dW
from PacerMonitor.com.
About APL Cargo Inc.
APL Cargo Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ind. Case No. 24-40136) on May 13,
2024. In the petition signed by Stefan Trifan, president, the
Debtor disclosed up to $10 million in both assets and liabilities.
Weston E. Overturf, Esq., at Kroger, Gardis & Regas, LLP,
represents the Debtor as legal counsel.
APPGATE INC: Hires Kirkland & Ellis as Bankruptcy Counsel
---------------------------------------------------------
Appgate Inc. and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Delaware to hire Kirkland &
Ellis LLP and Kirkland & Ellis International LLP as their
attorneys.
The firm's services include:
a. advising the Debtors with respect to their powers and
duties as debtors in possession in the continued management and
operation of their businesses and properties;
b. advising and consulting on the conduct of these Chapter 11
cases, including all of the legal and administrative requirements
of operating in Chapter 11;
c. attending meetings and negotiating with representatives of
creditors and other parties in interest;
d. taking all necessary actions to protect and preserve the
Debtors' estates;
e. preparing pleadings in connection with these Chapter 11
cases;
f. representing the Debtors in connection with obtaining
authority to continue using cash collateral and postpetition
financing;
g. advising the Debtors in connection with any potential sale
of assets;
h. appearing before the Court and any appellate courts to
represent the interests of the Debtors' estates;
i. advising the Debtors regarding tax matters;
j. taking any necessary action on behalf of the Debtors to
negotiate, prepare, and obtain approval of a disclosure statement
and confirmation of a Chapter 11 plan and all documents related
thereto; and
k. performing all other necessary legal services for the
Debtors in connection with the prosecution of these Chapter 11
cases.
The firm will be paid at these rates:
Partners $1,195 to $2,465 per hour
Of Counsel $820 to $2,245 per hour
Associates $745 to $1,495 per hour
Paraprofessionals $325 to $625 per hour
In addition, Kirkland will be reimbursed for out-of-pocket expenses
incurred.
The Debtors paid Kirkland a total of $250,000 as an advance payment
retainer.
The following information are provided the following in response to
the request for additional information set forth in Paragraph D.1
of the U.S. Trustee Fee Guidelines.
Question: Did Kirkland agree to any variations from, or
alternatives to, Kirkland's standard billing arrangements for this
engagement?
Answer: No. Kirkland and the Debtors have not agreed to any
variations from, or alternatives to, Kirkland's standard billing
arrangements for this engagement. The rate structure provided by
Kirkland is appropriate and is not significantly different from (a)
the rates that Kirkland charges for other non-bankruptcy
representations or (b) the rates of other comparably skilled
professionals.
Question: Do any of the Kirkland professionals in this
engagement vary their rate based on the geographic location of the
Debtors' Chapter 11 cases?
Answer: No. The hourly rates used by Kirkland in representing
the Debtors are consistent with the rates that Kirkland charges
other comparable Chapter 11 clients, regardless of the location of
the Chapter 11 case.
Question: If Kirkland has represented the Debtors in the 12
months prepetition, disclose Kirkland's billing rates and material
financial terms for the prepetition engagement, including any
adjustments during the 12 months prepetition. If Kirkland's billing
rates and material financial terms have changed post-petition,
explain the difference and the reasons for the difference.
Answer: Kirkland's current hourly rates for services rendered on
behalf of the Debtors range as follows:
Billing Category U.S. Range
Partners $1,195 - $2,465
Of Counsel $820 - $2,245
Associates $745 - $1,495
Paraprofessionals $325 - $625
Question: Have the Debtors approved Kirkland's budget and
staffing plan, and, if so, for what budget period?
Answer: Yes, for the period from May 6, 2024, through June 17,
2024.
Christopher Marcus, a partner of Kirkland & Ellis, disclosed in a
court filing that the firms are "disinterested persons" within the
meaning of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Christopher Marcus, Esq.
Christopher Marcus, P.C.
Kirkland & Ellis LLP
Kirkland & Ellis International LLP
601 Lexington Avenue
New York, NY 10022
Telephone: (212) 446-4800
Facsimile: (212) 446-4900
Email: christopher.marcus@kirkland.com
About Appgate Inc.
Appgate Inc., a secure access company, provides cybersecurity
solutions based on the principles of Zero Trust access for
enterprises and governments.
Appgate Inc. sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del. Case No. 24-10956) on May 6, 2024. At the time
of filing, the Debtor estimated $100,000,001 to $500 million in
both assets and liabilities.
Patrick J. Reilley, Esq. at Cole Schotz P.C. represents the Debtor
as counsel.
APPGATE INC: Hires Portage Point Partners as Investment Banker
--------------------------------------------------------------
Appgate Inc. and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Delaware to hire Triple P RTS,
LLC as their restructuring advisor and Triple P Securities, LLC as
their investment banker.
Triple P RTS and Triple P Securities, LLC are each wholly owned by
Portage Point Partners, LLC.
The firm's services include:
Investment Banking Services
(a) Reviewing and analyzing the Debtors' business, operations,
and financial projections;
(b) Evaluating the Debtors' potential debt capacity in light
of its projected cash flows;
(c) Assisting in the determination of a capital structure for
the Debtors;
(d) Assisting in the determination of a range of values for
the Debtors on a going-concern basis;
(e) Advising and assisting the Debtors in evaluating any
potential Financing by the Debtors, and, on behalf of the Debtors,
contacting potential sources of capital as the Debtors may
designate and assisting the Debtors in implementing such
Financing;
(f) If applicable, assisting the Debtors in identifying and
evaluating candidates for any potential Sale Transaction, advising
the Debtors in connection with negotiations, and aiding in the
consummation of any Sale Transaction; and
(g) Advising the Debtors on the timing, nature, and terms of
new securities, other consideration, or other inducements to be
offered pursuant to any Restructuring, Sale Transaction, and/or
Financing.
Restructuring Advisory Services
(h) Assisting in the evaluation and implementation of
contingency planning related to the Debtors commencing or otherwise
becoming the subject of a case under chapter 11 of title 11 of the
United States Code;
(i) Assisting in obtaining and presenting information required
by parties in interest in a chapter 11 case, including any
statutory committees appointed in the chapter 11 case, or by the
Court presiding over the chapter 11 case;
(j) Assisting in the evaluation and/or development of a
short-term cash flow model and/or related liquidity management
tools for the Debtors for such purpose(s) as the Debtors may
require; and
(k) Assisting in the evaluation and/or development of a
business plan and/or such other related forecasts and analyses for
the Debtors for such purpose(s) as the Debtors may require.
General Services
(l) Advising the Debtors on tactics and strategies for
negotiating with the Constituents;
(m) Rendering financial advice to the Debtors and
participating in meetings or negotiations with the Constituents
and/or rating agencies or other appropriate parties in connection
with any Restructuring, Sale Transaction, and/or Financing;
(n) Assisting the Debtors in preparing documentation within
Portage Point's area of expertise that is required in connection
with any Restructuring, Sale Transaction, and/or Financing;
(o) attending meetings of the board of directors (or similar
governing body) of the Debtors with respect to matters on which
Portage Point has been engaged to advise hereunder;
(p) Providing testimony, as necessary, with respect to matters
on which Portage Point has been engaged to advise hereunder in
these Chapter 11 Cases; and
(q) Providing the Debtors with other financial restructuring
advice as may be specifically agreed upon in writing by the Debtors
and Portage Point.
The firms will be compensated as follows:
Restructuring Advisory Services
Managing Partner $1,095 per hour
Service Line Leader $950 to $995 per hour
Managing Director $850 to $925 per hour
Director $695 to $795 per hour
Vice President $550 to $675 per hour
Associate $395 to $450 per hour
Administrative $110 to $155 per hour
Investment Banking Services
(a) Monthly Fee: A monthly fee of $75,000, payable on the
first day of each month after the execution of the Engagement
Letter until the earlier of the completion of the Restructuring or
the termination of Portage Point's Engagement pursuant to Section
21 of the Engagement Letter. Fifty percent of all Monthly Fees paid
in respect of any months following the third month of the
Engagement shall be credited (without duplication) against any
Restructuring Fee or Sale Transaction Fee payable; provided,
however, that such credit shall only apply to the extent that such
fees are approved in their entirety by the Court.
(b) Restructuring Fee: A fee equal to $1,250,000, payable upon
the consummation of a Restructuring; provided, however, that if a
Restructuring is to be completed through a "prepackaged" or
"prearranged" chapter 11 plan, the Restructuring Fee shall be
earned and shall be payable upon the earlier of (i) execution of
definitive agreements with respect to such plan; and (ii) delivery
of binding acceptances of such plan by a sufficient number of
Stakeholders to bind all Stakeholders to the plan under the
Bankruptcy Code; provided, further, that if Portage Point is paid a
fee in connection with a "prepackaged" or "prearranged" chapter 11
plan and a chapter 11 plan is not consummated, Portage Point shall
return such fee to the Debtors (less any Monthly Fees that have
accrued).
(c) Sale Transaction Fee:
i. If, in connection with a chapter 11 case, the Debtors
consummate a Sale Transaction (other than any Sale Transaction
effectuated solely for the purpose of implementing a Restructuring
Transaction in a tax-efficient manner) incorporating all or a
majority of the Debtors' assets or all or a majority of or a
controlling interest in the Debtors' equity securities, Portage
Point shall be paid a fee (the "Sale Transaction Fee") equal to
$1,250,000 plus 3 percent of the Aggregate Consideration in excess
of $105,000,000.
ii. Any Sale Transaction Fee shall be payable only upon
consummation of the applicable Sale Transaction in a Chapter 11
Case.
(d) Financing Fee: A fee, payable upon the consummation of a
Financing, equal to the applicable percentages of total capital
raised, placed or committed as follows based on the security type
issued in the Financing: (i) 2 percent of any senior secured debt
financing, government financing, or "debtor-in-possession"
financing, plus (ii) 3 percent of any junior secured or unsecured
debt financing, plus (iii) 5 percent of any equity, equity-linked
or equity-stapled or similarly bundled equity financing; provided,
however, that Portage Point will only be entitled to a Financing
Fee no greater than $250,000 for any "debtor-in-possession"
financing provided by Magnetar Financial LLC or any investment
funds, managed accounts, parallel investment funds, co-investment
funds, successor investment funds or other investment vehicles
managed or sub-managed by Magnetar Financial LLC or any affiliate
thereof or under common management with any of the foregoing
(collectively "Magnetar"). For the avoidance of doubt, a Financing
shall only refer to a new money investment in the Debtors, and no
Financing Fee shall be paid on account of the "roll-up" of existing
indebtedness through debtor-in-possession financing. To the extent
that the securities issued in a Financing (including any "stapled"
or similarly bundled securities) would qualify as more than one of
the types of securities listed above, the highest applicable fee
percentage shall apply; provided that, for the avoidance of doubt,
any "debtor-in-possession" financing shall not qualify under
provision (iii) hereof. Notwithstanding the foregoing, no Financing
Fee shall be payable to Portage Point on account of any portion of
a Financing provided (A) by insiders of the Debtors existing as of
the date of such Financing, including, but not limited to, Manuel
D. Medina, Jonathan Ledecky, and/or BC Partners LLP or any of its
affiliates, (B) by any third-party sourced and initially contacted
by Magnetar (other than with respect to the debtor-in-possession
financing fee capped at $250,000 described above) or the Debtors'
insiders, including but not limited to, Manuel D. Medina, Jonathan
Ledecky, and/or BC Partners LLP or any of its affiliates, or (C)
pursuant to the Debtors' existing debt documents; provided,
however, that to the extent Portage Point has been asked by the
Debtors in writing (email being sufficient) to perform Investment
Banking Services in connection with the foregoing clauses (A)
through (C), which could include, among other things, the services
set forth in paragraph 1(e) of the Engagement Letter, and Portage
Point performs such Investment Banking Services, Portage Point
shall be entitled to a Financing Fee with respect to any such
Financing it was requested to perform Investment Banking Services
in connection with and so provided such Investment Banking
Services.
As disclosed in the court filings, Portage Point is a
"disinterested person" within the meaning of section 101(14) of the
Bankruptcy Code, as required by section 327(a) of the Bankruptcy
Code, and does not hold or represent an interest adverse to the
Debtors' estates and has no connection to the Debtors, their
creditors, or other parties in interest.
The firm can be reached through:
Thomas Studebaker
Portage Point Partners LLC
640 Fifth Ave, 10th Floor
New York, NY 10019
Phone: (617) 306-7141
Email: tstudebaker@pppllc.com
About Appgate Inc.
Appgate Inc., a secure access company, provides cybersecurity
solutions based on the principles of Zero Trust access for
enterprises and governments.
Appgate Inc. sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del. Case No. 24-10956) on May 6, 2024. At the time
of filing, the Debtor estimated $100,000,001 to $500 million in
both assets and liabilities.
Patrick J. Reilley, Esq. at Cole Schotz P.C. represents the Debtor
as counsel.
APPGATE INC: Seeks to Hire Cole Schotz PC as Delaware Co-Counsel
----------------------------------------------------------------
Appgate Inc. and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Delaware to hire Cole Schotz
P.C. as their Delaware co-counsel.
The firm will render these services:
(a) provide legal advice with respect to the Debtors' powers
and duties as debtors in possession;
(b) provide legal advice with respect to the Local Rules and
local practices and procedures;
(c) take all necessary action to protect and preserve the
Debtors' estates, including the prosecution of actions on the
Debtors' behalf, the defense of any actions commenced against the
Debtors, the negotiation of disputes in which the Debtors are
involved and the preparation of objections to claims filed against
the Debtors' estates;
(d) prepare and/or review and comment, on behalf of the
Debtors, as debtors in possession, on all necessary motions,
applications, answers, orders, reports and other papers in
connection with the administration of the Debtors' estates;
(e) advise the Debtors concerning, and prepare and/or review
responses to, applications, motions, other pleadings, notices and
other papers that may be filed by the Debtors and other parties in
these Chapter 11 Cases;
(f) prepare notices of agenda, certificates of no objections,
certifications of counsel and notices of motions, applications and
hearings;
(g) attend meetings and negotiate with representatives of
creditors and other parties in interest, appear at Court hearings
and advise the Debtors on the conduct of these Chapter 11 Cases;
(h) take all necessary actions in connection with any chapter
11 plan of reorganization and related disclosure statement, as each
may be amended from time to time, and all related documents, and
such further actions as may be required in connection with the
administration of the Debtors' estates and the implementation of
any such documents;
(i) monitor the docket for filing deadlines and hearing dates,
maintain a critical dates calendar and coordinate with co-counsel
on pending matters;
(j) serve as conflicts counsel on certain matters where needed
and as the same may arise during the course of these Chapter 11
Cases; and
(k) perform all other necessary legal services in connection
with the prosecution of these Chapter 11 Cases.
The firm will be paid at these rates:
Members $550 to $1,475 per hour
Special Counsel $620 to $750 per hour
Associates $350 to $600 per hour
Paralegals $260 to $440 per hour
Support Specialists $405 to $510 per hour
Cole Schotz received retainers and payments totaling $400,000 from
the Debtors.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
The following is provided in response to the request for additional
information set forth in Paragraph D.1. of the Revised UST
Guidelines:
Question: Did you agree to any variations from, or alternatives
to, your standard or customary billing arrangements for this
engagement?
Response No.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic location of the
bankruptcy case?
Response No.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments
during the 12 months prepetition. If your billing rates and
material financial terms have changed postpetition, explain the
difference and the reasons for the difference.
Response: Cole Schotz will bill at its standard hourly rates,
with all fees and expenses being subject to approval of the Court,
subsequent to the commencement of these Chapter 11 Cases.
Question: Has your client approved your prospective budget and
staffing plan, and, if so for what budget period?
Response: The Debtors and their professionals are currently in
the process of formulating a detailed budget that is consistent
with the form of budget attached as Exhibit C-1 to the Revised UST
Guidelines, recognizing that in the course of a case like these
Chapter 11 Cases, it is highly likely that there may be a number of
unforeseen fees and expenses that will need to be addressed by the
Debtors and their professionals.
Patrick J. Reilley, Esq., a partner at Cole Schotz P.C., 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:
Patrick J. Reilley, Esq.
Cole Schotz P.C.
500 Delaware Avenue, Suite 1410
Wilmington, DE 19801
Tel: (302) 652-3131
Fax: (302) 652-3117
Email: preilley@coleschotz.com
About Appgate Inc.
Appgate Inc., a secure access company, provides cybersecurity
solutions based on the principles of Zero Trust access for
enterprises and governments.
Appgate Inc. sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del. Case No. 24-10956) on May 6, 2024. At the time
of filing, the Debtor estimated $100,000,001 to $500 million in
both assets and liabilities.
Patrick J. Reilley, Esq. at Cole Schotz P.C. represents the Debtor
as counsel.
APPGATE INC: Seeks to Hire Donlin Recano as Administrative Advisor
------------------------------------------------------------------
Appgate Inc. and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Delaware to hire Donlin,
Recano & Company, Inc. as their administrative advisor.
The firm will render these services:
a. assist with, among other things, solicitation, balloting,
tabulation, and calculation of votes, as well as preparing any
appropriate reports, as required in furtherance of confirmation of
any chapter 11 plan (the "Balloting Services");
b. generate an official ballot certification and testifying,
if necessary, in support of the ballot tabulation results;
c. in connection with the Balloting Services, handle requests
for documents from parties in interest, including, if applicable,
brokerage firms and bank back-offices and institutional lenders;
d. provide a confidential data room, if requested;
e. assist with data gathering and preparation of the
Debtors’ schedules of assets and liabilities and statements of
financial affairs;
f. manage and coordinate any distributions pursuant to a
chapter 11 plan; and
g. provide such other claims processing, noticing,
solicitation, balloting, and other administrative services
described in the Services Agreement, but not included in the
Section 156(c) Application, as may be requested from time to time
by the Debtors.
The firm will be paid at these rates:
Senior Bankruptcy Consultant $167 to $203 per hour
Case Manager $153 to $167 per hour
Consultant/Analyst $126 to $149 per hour
Technology/Programming Consultant $86 to $122 per hour
Clerical $40 to $50 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
As disclosed in the court filing, 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:
Lisa C. Terry
Donlin, Recano & Company, Inc.
48 Wall Street
New York, NY 10016
Telephone: (619) 346-1628
About Appgate Inc.
Appgate Inc., a secure access company, provides cybersecurity
solutions based on the principles of Zero Trust access for
enterprises and governments.
Appgate Inc. sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del. Case No. 24-10956) on May 6, 2024. At the time
of filing, the Debtor estimated $100,000,001 to $500 million in
both assets and liabilities.
Patrick J. Reilley, Esq. at Cole Schotz P.C. represents the Debtor
as counsel.
APPGATE INC: Taps Grant Thornton LLP to Provide Tax Services
------------------------------------------------------------
Appgate Inc. and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Delaware to hire Grant
Thornton LLP to provide tax services.
The firm's services will consist of assisting the management of the
Debtors with assessing the tax consequences of a potential Chapter
11 case and related debt cancellation consequences.
The firm will be paid at these rates:
Partner $1,005 per hour
Managing Director $935 per hour
Senior Manager $850 per hour
Manager $750 per hour
Senior Associate $600 per hour
Associate $375 per hour
Brian Angstadt, a partner of 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 through:
Brian Angstadt
Grant Thornton LLP
1100 Peachtree Street, N.E., Suite 1400
Atlanta, GA, 30309
Telephone: (404) 330-2000
Facsimile: (404) 475-0107
About Appgate Inc.
Appgate Inc., a secure access company, provides cybersecurity
solutions based on the principles of Zero Trust access for
enterprises and governments.
Appgate Inc. sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del. Case No. 24-10956) on May 6, 2024. At the time
of filing, the Debtor estimated $100,000,001 to $500 million in
both assets and liabilities.
Patrick J. Reilley, Esq. at Cole Schotz P.C. represents the Debtor
as counsel.
ARIEL SHOPPING: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: Ariel Shopping Center Inc.
1021 Portion Road
Farmingville NY 11738
Business Description: Ariel Shopping is a Single Asset Real Estate
debtor (as defined in 11 U.S.C. Section 101
(51B)).
Chapter 11 Petition Date: June 4, 2024
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 24-72139
Judge: Hon. Robert E Grossman
Debtor's Counsel: Vincent M. Lentini, Esq.
1129 Northern Blvd Ste 404
Manhasset NY 11030
Tel: (516) 228-3214
E-mail: vincentmlentini@gmail.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Sassan Sasouni as president.
The Debtor failed to attach 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/YUXLVUI/Ariel_Shopping_Center_Inc__nyebke-24-72139__0001.0.pdf?mcid=tGE4TAMA
AT HOME GROUP: Moody's Alters Outlook on 'Caa3' CFR to Stable
-------------------------------------------------------------
Moody's Ratings affirmed At Home Group Inc.'s ("At Home") corporate
family rating at Caa3 and its probability of default rating at
Caa3-PD. At the same time, Moody's downgraded the company's senior
secured first lien term loan B and senior secured global notes
ratings to Ca from Caa3 and affirmed its senior unsecured global
notes rating at C. Additionally, Moody's downgraded At Home
Cayman's backed senior secured global notes to Ca from Caa3. The
outlook was changed to stable from negative.
The downgrade on the senior secured notes reflects the
deterioration in their estimated recovery value as operating
performance remains severly depressed from prior levels. Moody's
views the capital structure as unsustainable absent a significant
improvement in earnings. The affirmations and change in outlook to
stable reflects At Home's adequate liquidity and that Moody's
expects earnings to improve as sales stabilize and costs and
capital spending are reduced. Moody's expects free cash flow to
approach breakeven while At Home's nearest debt maturity is not
until July 2026. Nonetheless, discretionary spending on home
products continues to be depressed as consumers contend with higher
interest rates and curtailed housing activity.
RATINGS RATIONALE
At Home's Caa3 CFR is constrained by its unsustainably high
lease-adjusted leverage with debt/EBITDA of 15.6x for the year
ended January 2024 and very weak interest coverage with
EBITA/interest well below 1.0x. The rating is also constrained by
At Home's private equity ownership, modest scale, and operations in
the discretionary, cyclical and highly competitive home décor
segment. Demand for the home décor segment has been highly
volatile and the combination of high inflation and costs has
contributed to significant earnings deterioration. The rating is
supported by the company's adequate liquidity. The $200 million
debt issuance has boosted its liquidity despite free cash flow
being negative in its last fiscal year with availability under its
asset based revolving credit facility over $200 million at the end
of its fiscal year.
The rating is also supported by At Home's differentiated home
décor selection and value proposition.
The stable outlook reflects At Home's adequate liquidity and that
its nearest debt maturity is not until its ABL facility expires in
July 2026 which provides At Home with time to address its operating
performance. It also reflects that the current ratings adequately
expected recoveries.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade would require a reduction in the likelihood of default
and sustained improvement in operating performance and liquidity
such that it would allow the company improve funded debt/EBITDA
and interest coverage to a more sustainable level and improve the
estimated debt instrument recoveries.
The ratings could be downgraded should At Home fails to make its
schedule interest or principal payments, file for bankrtupcty or if
Moody's recovery estimates deteriorate.
At Home Group Inc. operated 266 large format home décor and home
improvement retail stores across 40 states and generated about $1.8
billion of revenue for the last twelve months ended January 27,
2024. The company is owned by Hellman & Friedman LLC.
The principal methodology used in these ratings was Retail and
Apparel published in November 2023.
AUBREY PROPERTIES: Hires Law Firm of Keck Legal as Counsel
----------------------------------------------------------
Aubrey Properties LLC seeks approval from the U.S. Bankruptcy Court
for the Northern District of Georgia to employ Law Firm of Keck
Legal as counsel.
The firm's services include:
a. giving the Debtor legal advice with respect to its powers
and duties as debtor-in-possession in the management of its
property;
b. preparing on behalf of the Debtor as debtor-in-possession
necessary schedules, applications, motions, answers, orders,
reports and other legal matters.
c. assisting in examination of the claims of creditors;
d. assisting with formulation and preparation of the
disclosure statement and plan of reorganization and with the
confirmation and consummation thereof;
e. performing all other legal services for Debtor as
debtor0in-possesion that may be necessary therein.
The firm will be paid at these rates:
Benjamin R. Keck $445 per hour
Tyler Mauro $165 per hour
Selah Owusu $95 per hour
Miguel Quinonez $95 per hour
The firm will be paid a retainer in the amount of $2,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Benjamin R. Keck, Esq., a partner at Law Firm of Keck Legal,
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:
Benjamin R. Keck, Esq.
Law Firm of Keck Legal
Druid Chase
2801 Buford Highway NE, Suite 115
Atlanta, GA 30329
Tel: (470) 826-6020
About Aubrey Properties LLC
Aubrey Properties LLC, filed a Chapter 11 bankruptcy petition
(Bankr. N.D. Ga. Case No. 24-54580) on May 6, 2024, disclosing
under $1 million in both assets and liabilities. The Debtor hires
Law Firm of Keck Legal as counsel.
BAYOU CITY: Hires Fealy Law Fealy PC as Attorney
------------------------------------------------
Bayou City Smiles, LLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of Texas to employ Fealy Law Fealy
as attorney.
The firm's services include:
a. analyzing the financial situation, and rendering advice and
assistance to the Debtor;
b. advising the Debtor with respect to its duties as Debtor;
c. preparing and filing of all appropriate petitions,
schedules of assets and liabilities, statements of affairs,
answers, motions and other legal papers;
d. representing the Debtor at the first meeting of creditors
and such other services as may be required during the course of the
bankruptcy proceedings;
e. representing the Debtor in all proceedings before the Court
and in any other judicial or administrative proceeding where the
rights of the Debtor may be litigated or otherwise affected;
f. preparing and filing of Chapter 11 Plan of Reorganization;
and
g. assisting the Debtor in any matters relating to or arising
out of the captioned case.
The firm will be paid based upon its normal and usual hourly
billing rates. The firm will also be reimbursed for reasonable
out-of-pocket expenses incurred.
The firm will be paid a retainer in the amount of $15,000.
Vicky M. Fealy, Esq., a partner at Fealy Law Fealy, 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:
Vicky M. Fealy, Esq.
Fealy Law Fealy
1235 North Loop W Ste 1005
Houston, TX 77008
Telephone: (713) 526-5220
Facsimile: (713) 526-5227
Email: vfealy@fealylawfirm.com
About Bayou City Smiles, LLC
Bayou City Smiles, PC filed a petition under Chapter 11, Subchapter
V of the Bankruptcy Code (Bankr. S.D. Texas Case No. 24-31145) on
March 14, 2024, with $1 million to $10 million in both assets and
liabilities.
Judge Jeffrey P. Norman presides over the case.
Vicky M. Fealy, Esq., at The Fealy Law Firm, PC represents the
Debtor as bankruptcy counsel.
BEECH TREE: Taps Cunningham Chernicoff & Warshawsky as Counsel
--------------------------------------------------------------
Beech Tree Trading, LLC seeks approval from the U.S. Bankruptcy
Court for the Middle District of Pennsylvania to hire Cunningham,
Chernicoff & Warshawsky, P.C., as its counsel.
The firm will render these services:
a. give the Debtor legal advice regarding its powers and
duties as Debtor-in-Possession in the continued operation of its
business and management of its property;
b. prepare and file on behalf of the Debtor, as
Debtor-in-Possession, the original Petition and Schedules, and all
necessary applications, complaints, answers, orders, reports and
other legal papers; and
c. perform all other legal services for the Debtor, as
Debtor-in-Possession, which may be necessary.
The hourly rates of the firm's counsel and staff are as follows:
Robert E. Chernicoff $450
Partners $400 - $450
Associate Attorneys $225 - $350
Law Clerk/Paralegal $100 - $150
The Debtor paid the sum of $1,362 as retainer, plus the Chapter 11
filing fee of $1,738.
Robert Chernicoff, Esq., a shareholder at Cunningham, Chernicoff &
Warshawsky, 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:
Robert E. Chernicoff, Esq.
Cunningham, Chernicoff & Warshawsky, PC
2320 North Second Street
P.O. Box 60457
Harrisburg, PA 17106
Telephone: (717) 238-6570
About Beech Tree Trading, LLC
Beech Tree Trading, LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Pa. Case No.
24-01269) on May 22, 2024, listing $100,001 to $500,000 in both
assets and liabilities. Robert E Chernicoff, Esq. at Cunningham And
Chernicoff PC represents the Debtor as counsel.
BEN'S CREEK: Committee Hires Whiteford Taylor as Counsel
--------------------------------------------------------
The official committee of unsecured creditors of Ben's Creek
Operations WV, LLC seeks approval from the U.S. Bankruptcy Court
for the Southern District of West Virginia to employ Whiteford,
Taylor & Preston LLP as counsel.
The firm will provide these services:
a. advise the Committee regarding its rights, powers and
duties as a committee elected pursuant to Bankruptcy Code Section
1103;
b. advise and consult with the Committee on the conduct of
the cases, including all legal and administrative requirements
under Chapter 11;
c. attend meetings and negotiate with representatives of the
Debtors, secured and unsecured creditors, lessors, governmental
agencies, equity holders, employees and other parties in interest;
d. advise the Committee regarding any contemplated sale of
assets or business combinations including the negotiation of asset
sales, stock purchases, mergers or joint ventures, formulation and
implementation of bidding procedures, evaluation of competing
offers, drafting of appropriate documents regarding proposed sales
and counseling regarding the closing of such sales;
e. advise the Committee regarding prepetition and
post-petition financing and cash collateral arrangements and
negotiate documents relating thereto;
f. advise the Committee on matters relating to Debtors'
assumption, assumption and assignment and rejection of executory
contracts and unexpired leases;
g. advise the Committee on matters relating to the ordinary
course of business including employment matters, tax,
environmental, banking, insurance, securities, corporate, business
operation, contracts, joint ventures, real and personal property,
press and public relations matters and regulatory matters;
h. provide advice and counseling on actions to protect and
preserve the Debtors' estates including actions and proceedings by
the Debtors or other designated parties to recover assets, defense
of actions and proceedings brought against the estates,
negotiations regarding all litigation in which the Committee may be
involved and objections to claims filed against the estates;
i. prepare and file necessary motions, applications, answers,
orders, reports and papers;
j. review all pleadings, financial and other reports filed by
the Debtors in these chapter 11 cases and advise the Committee
about the implications;
k. review the nature and validity of any liens asserted
against the Debtors' property and advise the Committee concerning
the enforceability of such liens;
l. investigate the acts, conduct, assets, liabilities, and
financial condition of the Debtors, the operation of the Debtors'
businesses and the desirability of the continuance of such
business, and any other matter relevant to the case or to the
formulation of a plan;
m. commence and conduct any and all ligation necessary or
appropriate to assert rights held by the Committee and/or protect
assets of the Chapter 11 estates;
n. negotiate and participate in the preparation of the Debtors'
plan(s) of reorganization, related disclosure statement(s) and
other related documents and agreements and advise and participate
in the confirmation of such plan(s);
o. attend meetings with third parties and participate in
negotiations with respect to the above matters;
p. appear before this Court, other courts, and the United
States Trustee to protect and represent the interests of the
Committee and the Committee's constituents;
( q. meet and coordinate with other counsel and other
professionals representing the Debtors and other parties in
interest;
r. perform all other necessary legal services and provide all
necessary legal advice to the Committee in connection with these
Chapter 11 cases; and
s. handle such other matters as may be requested by the
Committee and to which Whiteford agrees.
The firm will be paid at these rates:
Kenneth Lund, Partner $825 per hour
Michael J. Roeschenthaler, Partner $805 per hour
Kenneth Lund, Partner $825 per hour
Brandy Rapp, Partner $620 per hour
David Gaffey, Partner $600 per hour
Joshua Stiff, Counsel $535 per hour
Sarah Wenrich, Associate $515 per hour
Alexandra Desimone, Associate $485 per hour
Vivi Besteman, Associate $385 per hour
Paralegal $275 to 455 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Thomas Cook, Esq. a partner at Whiteford, Taylor & Preston 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:
Brandy M. Rapp, Esq.
Whiteford Taylor & Preston, LLP
10 S. Jefferson Street, Suite 1110
Roanoke, VA 24011
Tel: (540) 759-3577
Email: brapp@whitefordlaw.com
About Ben's Creek Operations WV, LLC
Ben's Creek Operations WV, LLC, filed a Chapter 11 bankruptcy
petition (Bankr. S.D.W.V. Case No. 2:24-bk-20079) on April 14,
2024. At the time of filing, the Debtor estimated $1,000,001 to $10
million in assets and $10,000,001 to $50 million in liabilities.
The Debtor hires Flaherty Sensabaugh Bonasso PLLC as counsel.
BEST HOME: Court OKs Cash Collateral Access Thru June 30
--------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division, authorized Best Home Healthcare Network, Inc. to
use cash collateral, on an interim basis, in accordance with the
budget, with a 10% variance, through June 30, 2024.
As adequate protection to Bluevine Inc., Samson MCA LLC, Byzfunder
NY LLC DBA Byzfunder, Fundfi Merchant Funding, LLC, RBLX Funding,
American Choice Capital LLC for the use of its collateral or cash
collateral, pursuant to the terms of the Interim Cash Collateral
Order, the Lien Claimants are granted and will have postpetition
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 June 26 a 10 a.m.
About Best Home Healthcare Network, Inc.
Best Home Healthcare Network, Inc. is an in-home health care
service provider in the State of Illinois.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-05556) on April 16,
2024. In the petition signed by Iqbal Shariff, president, the
Debtor disclosed up to $500,000 in assets and up to $1 million in
liabilities.
Judge Timothy A. Barnes oversees the case.
Gregory K. Stern, Esq., at Gregory K. Stern, P.C., represents the
Debtor as legal counsel.
BISHOP OF OAKLAND: Hires Veracruz Advisory as Financial Consultant
------------------------------------------------------------------
Roman Catholic Bishop of Oakland, seeks approval from the U.S.
Bankruptcy Court for the Northern District of California to employ
Veracruz Advisory, LLC as financial consultant.
The firm's services include:
a. provision of consulting services regarding facility,
financial and operational issues, including services in support of
litigation and restructuring matters;
b. preparation of the Debtor's monthly operating reports in
cooperation with the Debtor's internal finance staff;
c. preparation of cash forecasts and analysis;
d. analysis of specific assets of the Debtor in connection
with the Debtor's restructuring efforts;
e. assistance in responding to requests for documents and
other information from the Committee and other parties;
f. assistance with litigation support activities related to
claims brought against the Debtor, as requested by the Debtor and
its counsel;
g. assistance with the development of a Chapter 11 Plan of
Reorganization and Disclosure Statement; and
h. provision of other activities as are approved by the Debtor
and agreed to by VeraCruz.
The firm will be paid at a fixed monthly fee of $35,000 per month.
Carlos R. de Quesada, a partner at Veracruz Advisory, LLC,
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:
Carlos R. de Quesada
Veracruz Advisory, LLC
412 South Shore Dr.
Sarasota, FL 34235
Email: cdequesada@veracruzadvisory.com
About Roman Catholic Bishop of Oakland
The Roman Catholic Bishop of Oakland, a tax-exempt religious
organization, sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Cal. Case No. 23-40523) on May 8,
2023. In the petition signed by Bishop Michael Charles Barber, the
Debtor disclosed $100 million to $500 million in both assets and
liabilities.
Judge William J. Lafferty oversees the case.
The Debtor tapped Foley & Lardner LLP as legal counsel and Alvarez
& Marsal North America, LLC as restructuring advisor. Kurtzman
Carson Consultants LLC is the Debtors' claims and noticing agent
and administrative advisor.
The U.S. Trustee for Region 17 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case. The
committee tapped Lowenstein Sandler, LLP as bankruptcy counsel;
Burns Bair LLP as special insurance counsel; and Berkeley Research
Group, LLC as financial advisor.
BLU PRINT: Hires Keller William Realty Inc. as Realtor
------------------------------------------------------
Blu Print Properties, LLC seeks approval from the U.S. Bankruptcy
Court for the Northern District of Alabama to employ Keller William
Realty, Inc. as realtor.
The firm will provide real estate sales services in order to sell
or otherwise dispose of real property of the Debtor.
The firm will be paid based upon its normal and usual commission.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Courtney Hunter, a partner at Keller William Realty, Inc.,
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:
Courtney Hunter
Keller William Realty, Inc.
3595 Grandview Parkway, Suite 210
Birmingham, AL 35243
Tel: (205) 519-8072
Email: Courtneyhunger@kw.com
About Blu Print Properties, LLC
Blu Print Properties, LLC owns 13 properties in Birmingham and
Pleasant Grove, Ala., having a total current value of $2 million.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. N.D. Ala. Case No. 24-00062) on Jan. 8,
2024, with $2,037,278 in assets and $747,691 in liabilities. Steven
Altmann, Esq., at The Nomberg Law Firm, serves as Subchapter V
trustee.
Judge Tamara O. Mitchell oversees the case.
Robert C. Keller, Esq., at Russo, White & Keller, P.C. represents
the Debtor as legal counsel.
BOMBARDIER INC: S&P Upgrades ICR to 'B+' on Continued Deleveraging
------------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on Canada-based
business aviation company Bombardier Inc. to 'B+' from 'B' and
raised its issue-level rating on the company's unsecured debt to
'B+' from 'B'. The '4' recovery rating on about US$5.6 billion of
corresponding notes and debentures is unchanged.
S&P also raised its rating on the company's preferred shares to
'CCC+' from 'CCC'.
S&P said, "The stable outlook reflects our expectation for adjusted
debt to EBITDA to be in the low-4x area within the next couple of
years while the company maintains ample liquidity including more
than US$1 billion of cash and cash equivalents, which we do not net
against debt.
"The upgrade primarily reflects Bombardier's continued deleveraging
and ample liquidity. In our view, Bombardier is well on track to
achieve an adjusted debt-to-EBITDA ratio in the low-4x area next
year, supported by its execution on its large backlog and growth in
aftermarket services. We assume working capital investments this
year to accommodate higher deliveries will limit free operating
cash flow generation (FOCF) to about US$100 million and result in
only a modest improvement in adjusted debt to EBIDTA to about 5.1x
at the end of the year (from about 5.5x in 2023). That said, as
working capital normalizes in 2025 and EBITDA continues to grow
organically, annual FOCF generation should increase to more than
US$500 million, which we assume will be used primarily to reduce
debt. Our assumption is consistent with management's stated target
of repaying about US$1 billion of debt through 2025 (from 2023) and
achieving a reported net leverage ratio of 2.0x-2.5x by 2025. We
forecast adjusted debt to EBITDA of about 4.2x in 2025 and expect
the company to sustain leverage at about that level going forward
as debt remains steady and excess cash flow is deployed for growth
projects, share buybacks, or acquisitions. Our upgrade also
incorporates the flexibility offered by Bombardier's sizable cash
balance (about US$1.2 billion on March 31, 2024) that we assume
will remain above US$1 billion over the next few years and that we
do not net against debt in our leverage calculation."
A resilient order backlog provides earnings predictability into
2025. Bombardier Inc. continues to execute well against its sizable
order backlog (US$14.9 billion as of March 31, 2024; about 1.9x
revenue). The company has met its delivery guidance since 2020 and
achieved profitability gains as production has ramped up, which
should continue through this year. Revenue growth in 2024 should
benefit from an increase in aircraft deliveries to about 150 from
138 last year, favorable pricing (estimated in the mid-single-digit
percentage area on average), and growth in aftermarket services
(plus 7%). This growth should allow Bombardier to improve on and
narrow the operating margin gap compared with peers such as General
Dynamics Corp. and Textron Aviation Inc.'s respective business
aviation segments.
S&P said, "We assume annual deliveries will remain at about 150
beyond 2024 as higher deliveries to defence and certified pre-owned
(CPO) customers offset lower deliveries we anticipate to
Bombardier's traditional business jet customers. These customers
primarily include ultra-high net worth individuals, the number of
which has grown considerably in recent years, and fleet operators
that have benefited from increased demand following the pandemic,
which we estimate comprise about 20% of deliveries. Although new
aircraft supply remains tight at present, we think the demand for
Bombardier's business jets from these more traditional customers
could slow beyond 2024. This reflects our view that global economic
growth will slow, including in the U.S. (Bombardier's largest
market), and that competition will intensify with Gulfstream's G700
having received FAA certification earlier this year and other
competing aircraft enter the market.
"Growth in higher-margin and more stable segments to support future
revenue diversity. We expect Bombardier's adjusted EBITDA to grow
about 6% on average over the next three years supported by
opportunities to expand its aftermarket services, defense, and CPO
businesses. These markets generated about US$2.5 billion of revenue
for Bombardier in 2023 (about 30%), and we expect they will
represent about US$3 billion of revenue by 2026 (about 35%) and
contribute to higher margins. This trend could continue well beyond
2026 and strengthen the company's competitive position."
The most significant opportunity in the near term is in
Bombardier's aftermarket services, which the company has
successfully expanded in recent years through market share gain
amid favorable aircraft usage and its life-cycle management
approach. The segment generated just under US$1 billion of revenue
in 2020, increased to US$1.8 billion in 2023, and is on track to
potentially achieve the company's US$2 billion revenue target this
year (a year ahead of its initial target). S&P said, "We assume
revenue growth in the segment to average in the mid-single-digit
percent area through 2026, which is modestly slower than
management's guidance. This growth opportunity stems from
Bombardier's large installed base of about 5,000 aircraft that
should continue to grow and see a shift in mix to larger aircraft
with more profitable parts and service needs as new Global and
Challenger jets enter the installed base and replace older
Learjets. We assume the aftermarket services segment will generate
EBITDA margins of at least 20%, helping lift Bombardier's
consolidated margins and provide a relatively more stable source of
earnings than the company's cyclical business jet sales."
S&P said, "The defense market is another organic growth focus for
Bombardier, which we estimate generated about US$600 million of
revenue in 2023 and expect to grow in the high-single-digit percent
area over the next few years with EBITDA margins of about 20%.
Bombardier thinks the defense market could generate US$1 billion to
US$1.5 billion of revenue by 2030. The company is active in several
defense programs, with its aircraft used primarily on surveillance
missions. We think Bombardier has a good runway for growth in the
defense market owing to secular tailwinds as defense spending
continues to increase amid ongoing geopolitical tensions,
Bombardier's nascent share of the large addressable market, and the
reliability and suitability of its aircraft for surveillance
missions. We also expect Bombardier to continue to expand its CPO
business in the high-single-digit percentage area. We estimate the
business generated less than US$200 million of revenue in 2023.
While the company thinks it could grow to US$500 million to US$1
billion by 2030, we assume it will remain under US$500 million over
the next several years with an EBITDA margin of 10%-15%.
"The stable outlook reflects our expectation that Bombardier will
continue to spur earnings growth in the near term predominantly by
executing its largely contracted US$14.9 billion backlog, which
should aid deleveraging to the low-4x area (S&P Global
Ratings-adjusted) within the next couple of years while maintaining
ample liquidity including more than US$1 billion of cash and cash
equivalents, which we do not net against debt.
"We could downgrade Bombardier within the next 12 months if we
expected adjusted debt to EBITDA to be sustained above 5x. This
could occur if Bombardier's backlog declined on lower business jet
orders, potentially from a deterioration in capital market
conditions or competitive pressures. Leverage could also remain
above 5x if supply-chain or other operational disruptions
negatively affected Bombardier's profitability and earnings.
"We could upgrade Bombardier within the next 12 months if we
expected adjusted debt to EBITDA to be sustained well below 4x,
potentially resulting from stronger-than-forecast EBITDA margins
and FOCF generation used to reduce debt. In this scenario, we would
also likely require Bombardier to maintain ample liquidity of US$1
billion to US$1.5 billion.
"Social factors are a moderately negative consideration in our
credit rating analysis of Bombardier. Demand (and supply) for the
company's business jets and maintenance, repair, and overhaul
services were hampered by the pandemic, as evidenced by a close to
20% reduction in deliveries in 2020, and ongoing risks to the
company's supply chain remain a credit consideration. Governance
factors are a neutral consideration. Management turnover,
operational missteps, and a material shift of business strategy
contributed to a significant increase in debt leverage and value
erosion a few years ago. However, we recognize that new leadership
since 2021 has meaningfully improved operating efficiency and is
successfully reaching its operational and financial targets."
BRENDAN GOWING: Case Summary & Two Unsecured Creditors
------------------------------------------------------
Debtor: Brendan Gowing, Inc.
3600 Michaux
Houston, TX 77009
Business Description: The Debtor owns and operates a wedding
venue located 3600 Michaux Street, Houston,
TX 77009 having a current value of $5.8
million.
Chapter 11 Petition Date: June 4, 2024
Court: United States Bankruptcy Court
Southern District of Texas
Case No.: 24-32631
Judge: Hon. Eduardo V. Rodriguez
Debtor's Counsel: Robert C. Lane, Esq.
THE LANE LAW FIRM
6200 Savoy Dr Ste 1150
Houston TX 77036-3369
Tel: (713) 595-8200
Fax: (713) 595-8201
Email: notifications@lanelaw.com
Total Assets: $5,805,050
Total Debts: $5,960,445
The petition was signed by Brendan Gowing as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's two unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/UN6QJ2Y/Brendan_Gowing_Inc__txsbke-24-32631__0001.0.pdf?mcid=tGE4TAMA
BRINK COMPANY: Moody's Rates New Unsec. Notes Due 2029 'Ba3'
------------------------------------------------------------
Moody's Ratings affirmed The Brink's Company's ratings, including
the company's Ba2 corporate family rating, Ba2-PD probability of
default rating, and the Ba3 rating on Brink's existing senior
unsecured notes. Concurrently, Moody's assigned a Ba3 rating to the
company's proposed 2029 senior unsecured notes which will be used
to fund the repayment of Brink's existing 5.5% senior unsecured
notes due 2025. Brink's speculative grade liquidity ("SGL") rating
was upgraded to SGL-1 from SGL-2 as this refinancing extends a
portion of the company's debt maturities and enhances Brink's
liquidity profile. The ratings outlook remains stable. The company
is a global provider of security-related services, including
cash-in-transit, secure transportation of valuables, ATM servicing,
payment services, guarding, and related logistics.
RATINGS RATIONALE
Brink's Ba2 CFR is supported by the company's large scale, wide
geographic diversification, and market leadership in the industry.
Brink's credit profile is also supported by its very good liquidity
and improving free cash flow generation. Brink's credit profile is
negatively impacted by the company's relatively high leverage with
trailing debt-to-EBITDA (Moody's adjusted for pensions and
operating leases) of approximately 4x as of March 31, 2024 as well
as the competitive nature of Brink's business, and low operating
profitability margins relative to comparable services industry
issuers rated in the Ba2 CFR category. Additionally, Brink's
international business accounts for approximately 67% of sales
(including operations in volatile markets in Latin America
representing approximately 27%) and the preponderance of the
company's profitability while the company's debt is denominated in
US dollars, exposing Brink's earnings to unfavorable currency
moves. Longer term, risks which weigh on the company's business
prospects include the growth of non-cash payment methods, volatile
retail expenditures and diamond and jewelry shipments, structural
cost issues (pensions), and pricing pressure.
Brink's liquidity profile has strengthened and will remain very
good over the next 12-15 months as indicated by the company's SGL-1
rating. Liquidity is principally supported by the company's $932
million of unrestricted cash and equivalents (excluding $191
million of amounts held by Cash Management Services operations) as
of March 31, 2024 as well as Moody's expectation of annual free
cash flow of approximately 10% of total debt over the over the next
12-15 months. The cash sources provide strong coverage of
approximately $60 million of required term loan amortization over
the next 12 months. The company must comply with financial
covenants applicable to its secured indebtedness, including a
maximum net senior secured first lien leverage ratio of 3.5x and a
minimum interest coverage test (as defined in the secured facility
agreement) of 3.0x. Moody's expects Brink's will comply with the
tests over the next year.
The stable outlook reflects Moody's expectation for Brink's to
generate mid-single digit annual organic revenue growth, modest
margin expansion over the coming 12-18 months and for its leverage
to reduce with debt-to-EBITDA likely to decline to 3.5x by the end
of 2025.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if Brink's expands revenues and
profitability margins resulting in debt to EBITDA sustained below
3.5x, EBITA to interest expense remaining above 3.5x, and annual
free cash flow to debt exceeding 10%, while the company maintains
conservative financial policies.
The ratings could be downgraded if Brink's experiences a
deterioration in operating performance or adopts aggressive
financial policies resulting in debt to EBITDA sustained above 4.5x
or annual free cash flow to debt contracts materially.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
Founded in 1859, Brink's provides security-related services on a
global basis. Services include cash-in-transit, secure
transportation of valuables, ATM servicing, payment services,
guarding and related logistics. Moody's expects revenue of over $5
billion in 2024.
BRINK'S CO: S&P Raises ICR to 'BB+' on Strengthened Credit Metrics
------------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on The Brink's
Co. to 'BB+' from 'BB'. S&P also assigned a 'BB' issue-level rating
to the company's senior unsecured notes, with a recovery rating of
'5'. The proposed issuance is leverage neutral. Brink's intends to
use the net proceeds to repay its $400 million senior unsecured
notes.
The stable outlook reflects S&P's belief that momentum in operating
performance will continue over the next 1-2 years, resulting in
leverage below 4x.
The proposed notes will be leverage neutral and address refinancing
risk. Brink's will borrow approximately $400 million senior
unsecured notes and use proceeds to repay its $400 million senior
unsecured notes. The transaction will extend the maturity of its
senior notes and bolster liquidity.
S&P said, "The upgrade of Brink's reflects our expectation that S&P
Global Ratings-adjusted leverage will remain below 4x, driven by
earnings improvement. The company has stated a leverage target of
2x-3x, which we expect it to maintain despite capital investments
and shareholder remunerations. We forecast S&P Global
Ratings-adjusted leverage will remain in the low- to mid-3x area in
the next two years, supported by EBITDA expansion. We believe the
company will continue its stated shareholder return initiatives and
that sufficient cash flow supports this without reliance on
additional borrowings.
"We anticipate that Brink's operating fundamentals will remain
robust driven by demand for cash management services. We forecast
revenue growth in the 5%-6% range as the company sees favorable
demand and continues to win new clients and accelerate
installations in the digital retail solutions (DRS) and ATM managed
services (AMS) segments. Despite heightened competition in its
North America segment and foreign exchange volatility in its other
regions, Brink's has maintained organic growth stemming from its
geographic diversity, improved scale, and strong brand recognition.
We expect price increases and ongoing restructuring initiatives
will translate into cost savings that increase S&P Global
Ratings-adjusted EBITDA margins to the 18% area from about 17.7%
last year. We believe Brink's focus on technology initiatives will
help safeguard margins against secular declines in cash usage.
"The stable outlook reflects our expectation that Brink's will keep
leverage below 4x, supported by earnings expansion from cost-saving
initiatives and business growth.
"Social factors are a negative consideration for our rating on
Brink's. This assessment reflects the inherent risks its employees
face, particularly in high-risk regions of the world. Although we
believe the company has the right procedures and safety measures in
place, any incident involving employee safety could lead to brand
reputation and legal fines."
BROKEN ARROW: Drew McManigle Named Subchapter V Trustee
-------------------------------------------------------
The U.S. Trustee for Region 7 appointed Drew McManigle as
Subchapter V trustee for Broken Arrow Construction LLC.
Mr. McManigle will be paid an hourly fee of $450 for his services
as Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. McManigle declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Drew McManigle
700 Milam, Suite 1300
Houston, TX 77002
Telephone: (410) 350-1839
Email: drew@macco.group
About Broken Arrow Construction
Broken Arrow Construction LLC filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex.
Case No. 24-32248) on May 14, 2024, listing $100,001 to $500,000 in
assets and $500,001 to $1 million in liabilities.
Judge Eduardo V Rodriguez presides over the case.
Robert C Lane, Esq. at The Lane Law Firm represents the Debtor as
counsel.
BULLDOG PURCHASER: S&P Raises ICR to 'B-' on Expected Deleveraging
------------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on Bulldog
Purchaser Inc. (doing business as Bay Club) to 'B-' from 'CCC+'.
At the same time, S&P assigned its issue-level rating of 'B' and
recovery rating of '2' on the company's proposed first-lien term
loan. S&P also assigned its issue-level rating of 'CCC' and
recovery rating of '6' on the company's proposed second-lien term
loan.
The positive outlook reflects S&P's expectation that Bay Club will
continue to exhibit steady organic growth in revenue and EBITDA,
and along with a full year of revenues from acquired clubs could
result in deleveraging below 6.5x over the next 12 months.
S&P said, "We anticipate Bay Club will continue to report strong
revenue growth and EBITDA margin expansion over the next 12 months,
resulting in leverage below 7.5x by fiscal-year-end 2024 and
positive FOCF, absent leveraging acquisitions. We view the proposed
refinancing as a credit positive. The company intends to refinance
its existing capital structure with the issuance of a new, unrated
$75 million revolver, a $600 million first-lien term loan, and a
$200 million second-lien term loan. This transaction will push the
company's 2025 and 2026 debt maturities to 2031 and 2032,
respectively, and is effectively leverage neutral.
"In our base-case forecast, we expect S&P Global Ratings-adjusted
gross debt to EBITDA of about 7x at the end of fiscal 2024 (ending
Jan. 31, 2025), which represents approximately one turn of
deleveraging from fiscal-year-end 2023. We expect strong revenue
growth in 2024, primarily reflecting membership price increases of
high-single-digit percent. In addition, the company will benefit
from a full year of acquisition revenue--particularly from Pro
Club, which the company acquired in December 2023. We also expect
its EBITDA margin will modestly expand as the company realizes cost
synergies from integrating recent acquisitions.
"For fiscal 2025, we favorably updated our base-case forecast to
reflect continued dues pricing adjustments, which should improve
total revenue growth to high-single-digit percent and margin to the
35%-36% range. As a result, we now believe Bay Club could
deleverage to the 6x area by the end of fiscal 2025, absent any
debt-funded acquisitions or distributions. In addition, we expect
Bay Club to generate positive FOCF in fiscal 2024 and comfortably
cover its fixed charges, benefiting revenue and EBITDA growth, and
lower capex compared to the previous expectations.
"In addition, the company's member count continues to grow with the
success of its shared membership offering, which was first
introduced in February 2021. The shared membership model allows
members to add up to five additional memberships regardless of
relation for an add-on fee to monthly dues. We expect Bay Club will
continue to grow its member count and utilization as the company
benefits from an ongoing shift toward consumer spending on
experiences and in-person fitness options.
"The positive outlook reflects our expectation that continued
organic growth in revenue and EBITDA, as well as a full year of
revenues from acquired clubs, could result in deleveraging below
6.5x over the next 12 months."
S&P could revise its outlook to stable if S&P no longer believes
BayClub can sustain leverage below 6.5x. This could occur if:
-- Growth in its member count, revenue, EBITDA, and cash flow
significantly underperforms our base case due to a weak
macroeconomic environment; or
-- Aggressive financial policy decisions, such as significant
debt-financed mergers and acquisitions (M&A) or substantial
debt-funded distributions to the sponsor.
Although unlikely, S&P could lower its rating on the company if:
-- S&P believes it will likely sustain leverage above 7.5x; or
-- S&P anticipates it may face difficulty covering its fixed
charges, and liquidity weakens.
S&P said, "We could raise our ratings on Bay Club if we are
confident it will improve and sustain leverage below 6.5x and
EBITDA interest coverage to above 1.5x. This could occur if the
company successfully passes on price increases without
deteriorating member count and increases its revenue and EBITDA.
"Social factors are a moderately negative consideration in our
credit rating analysis of Bay Club. While the company's high-end
clubs were significantly hurt by the pandemic in terms of temporary
closures and membership losses, leading to significantly lower
revenue and cash burn from operations, Bay Club has since recovered
its member count and revenue to pre-pandemic levels.
"Governance factors, on a net basis, are a moderately negative
consideration. We view financial sponsor-owned companies with
aggressive or highly leveraged financial risk profiles as
demonstrating corporate decision-making that prioritizes the
interests of controlling owners, typically with finite holding
periods and a focus on maximizing shareholder returns."
BURGESS BUNGALOW: Seeks Cash Collateral Access
----------------------------------------------
Burgess Bungalow, LLC asks the U.S. Bankruptcy Court for the
Western District of Oklahoma for authority to use cash collateral
and provide adequate protection.
Legacy Bank asserts a first mortgage lien on the Real Property in
the approximate amount of $5 million. Legacy asserts a lien on the
Debtor's accounts receivable.
BOKF, NA asserts a second mortgage lien on the Real Property in the
approximate amount of $3 million.
Dominion House LLC, a non-debtor affiliate of the Debtor, contracts
to host weddings and other events on the Debtor's Real Property.
Legacy Bank believes payments made on the wedding Contracts
constitute its "cash collateral." The Debtor disagrees.
If DH’s revenue constitutes cash collateral, said revenues must
be used to conduct operations. Without the ability to use such
revenue Debtor will immediately fail and all scheduled weddings and
events cancelled.
On May 29, 2024 Debtor received an offer to purchase the Real
Property. The offer is conditioned upon the Real Property being
maintained as a wedding venue. If operations are shuttered, Debtor
will not be able to pursue this offer.
As reflected by the express terms of the Contracts, payments on the
Contracts are made to DH. As such, they cannot be cash collateral
and can be used by DH to satisfy its contractual obligations under
the Contracts.
A copy of the motion is available at https://urlcurt.com/u?l=KMBQqu
from PacerMonitor.com.
About Burgess Bungalow
Burgess Bungalow, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. Okla. Case No. 24-10840) on Apr.
1, 2024. In the petition signed by Calvin Burgess, managing member,
the Debtor disclosed up to $50,000 in estimated assets and up to
$10 million in estimated liabilities.
Judge Sarah A. Hall oversees the case.
Stephen J. Moriarty, Esq., at Fellers, Snider, Blankenship, Bailey
& Tippens, PC serves as the Debtor's counsel.
CANDLE DELIRIUM: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Candle Delirium, Inc.
7980 Santa Monica Blvd.,
Los Angeles, CA 90046
Business Description: The Debtor is a retailer of luxury candles
and home fragrance products.
Chapter 11 Petition Date: June 4, 2024
Court: United States Bankruptcy Court
Central District of California
Case No.: 24-14453
Debtor's Counsel: Jeffrey S. Shinbrot, Esq.
JEFFREY S. SHINBROT, APLC
15260 Ventura Blvd.
Suite 1200
Sherman Oaks, CA 91403
Tel: 310-659-5444
Fax: 310-878-8304
Email: jeffrey@shinbortfirm.com
Total Assets: $422,709
Total Liabilities: $3,398,539
The petition was signed by Anthony Carro, Jr., as chief executive
officer.
A copy of the Debtor's list of 20 largest unsecured creditors is
available for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/AITLDMY/Candle_Delirium_Inc__cacbke-24-14453__0002.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/7HCAKSA/Candle_Delirium_Inc__cacbke-24-14453__0001.0.pdf?mcid=tGE4TAMA
CAPITAL TACOS: Wins Interim Cash Collateral Access
--------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida, Tampa
Division, authorized Capital Tacos Holdings, LLC, KJ-IP, LLC, and
KJ-Licensing, LLC to use cash collateral on an interim basis, in
accordance with the budget, with a 10% variance, pending a further
hearing set for June 17, 2024 at 10:30 a.m.
The Debtors' primary secured creditor is FVP Servicing, LLC, in
connection with a $2.5 million loan. The Lender filed a UCC
financing statement asserting a security interest in all assets of
the Debtors. Accordingly, the Lender may assert an interest in cash
collateral.
As adequate protection with respect to the Lender's interests in
the cash collateral, the Lender is granted a continuing and
perfected replacement lien in and upon all of the categories and
types of collateral in which it held a security interest and lien
as of the Petition Date to the same extent, validity and priority
that it held as of the Petition Date.
The Debtors are entitled to collect money from parties with
outstanding accounts receivable to the Debtors and no creditor or
party in interest will interfere with the Debtors' collection
actions; provided, however, the proceeds of such accounts
receivable constitute Lender's cash collateral.
The Debtors will maintain insurance coverage for the collateral in
accordance with the obligations under the loan and security
documents between Lender and the Debtors.
The Replacement Liens provided will be deemed automatically valid
and perfected with such priority as provided in this Interim Order,
without any further notice or act by any party that may otherwise
be required under any other law.
A copy of the court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=3111vz from PacerMonitor.com.
The Debtor projects total expenses, on a weekly basis, as follows:
$2,635 for the week beginning June 10, 2024;
$1,410 for the week beginning June 17, 2024;
$9,448 for the week beginning June 24, 2024;
About Capital Tacos Holdings, LLC
Capital Tacos Holdings, LLC sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-01363) on
March 15, 2024. In the petition signed by James Marcus, manager,
the Debtor disclosed up to $500,000 in assets and up to $10 million
in liabilities.
Judge Roberta A. Colton oversees the case.
Edward J. Peterson, Esq., at JOHNSON, POPE, BOKOR, RUPPEL & BURNS,
LLP, represents the Debtor as legal counsel.
CAPROCK MILLING: Asset Sale Proceeds to Fund Plan Payments
----------------------------------------------------------
CapRock Milling & Crushing, LLC, filed with the U.S. Bankruptcy
Court for the Northern District of Texas a Chapter 11 Plan and
accompanying Disclosure Statement dated May 16, 2024.
The Debtor started operations in 2015. The company's primary
business model was to provide transloading, warehousing and custom
toll milling services for organic grain traders and merchants.
The Company's core customer was CapRock Land Company, LLC. The
company also provided services to other market participants
including Perdue Agribusiness, RTW Logistics, Kreamer Feeds,
Kalmbach Feed, Nutrify LLC and other organic market participants
over the years.
Perdue Agribusiness ceased processing soybeans at the facility per
the terms of the toll milling agreement. With CapRock Land Company
in bankruptcy and Perdue Agribusiness not honoring its contractual
commitments, CapRock Milling was forced to enter into Chapter 11
bankruptcy in November 2023.
Since entering Chapter 11 bankruptcy, CapRock Milling has operated
successfully although with a smaller business footprint, currently
only engaging in the storage arm of its business. It is CapRock
Milling's intention to sell its business. The company is currently
in due diligence with an unrelated business entity with the goal of
closing the transaction in August 2024.
In accordance with the provisions of this proposed Plan of
Liquidation the Debtor will endeavor to sell the remainder of its
assets and has received a letter of interest from High Caliber
Processing, Inc. ("HCP") for a total sales price of $3,000,000.00.
The only asset of the Debtor excluded from the proposed sale is the
account receivable owed to the Debtor by Perdue AgriBusiness, LLC.
The Debtor's assumption and assignment of the Lease to HCP is a
condition precedent to Debtor's sale of its Assets to HCP.
Therefore, Debtor's sale of its Assets to HCP is dependent on
Debtor's ability to cure the pre-petition default under the Lease.
To establish the exact amount necessary to cure the defaults under
the Lease, the Debtor is concurrently filing a Motion seeking entry
of an order, pursuant to section 365 of the Bankruptcy Code and
Bankruptcy Rule 6006, fixing and establishing cure amounts for the
Lease.
In order to have sufficient funds to pay the cure amount as
determined by the Bankruptcy Court, Debtor has also filed an
Emergency Motion for Authority to Sell Assets of the Estate Free
and Clear of Liens (the "Motion to Sell"). As provided in the PSA,
the sale of debtor's assets will, with the Court's approval, take
place in two stages. In the first stage, Debtor will sell certain
items of equipment (identified in the PSA) to HCP in order to
generate funds to pay the cure amount on the Lease. In the second
stage, Debtor will sell its remaining assets to HCP, with those
funds to be administered in accordance with this Debtor's proposed
Plan.
Class 3.1 consists of Allowed Unsecured Creditors. The Allowed
Claims of Unsecured Creditors shall receive dividends in the form
of pro rata payments from the Liquidating Trust from the assets
conveyed into the Liquidating Trust as provided for in the Plan.
The Debtor's Plan also specifically provides for special counsel to
pursue claims against Perdue AgriBusiness, LLC and upon the receipt
of any recovery the proceeds will also be distributed pro rata to
the holders of Allowed Unsecured Claims. The allowed unsecured
claims total $323,363.69.
Class 3.2 consists of Allowed Unsecured Insider Creditors. The
Allowed Claims of Unsecured Insider Creditors shall receive
dividends in the form of pro rata payments from the Liquidating
Trust from the assets conveyed into the Liquidating Trust after
payment to the Allowed Unsecured Creditors. The amount of claim in
this Class total $2,053,234.41.
The Debtor's Plan is a liquidating Plan whereby the Debtor will
liquidate all of its assets and applied in accordance with the
priorities established in the Bankruptcy Code in Section 507. The
Plan provides that all sales of all assets must be approved by the
Bankruptcy Court pursuant to the provisions of Section 363 of the
Bankruptcy Code. Following the sale of assets, the proceeds will be
distributed in the form of pro rata payments from the Liquidating
Trust from the assets conveyed into the Liquidating Trust as
provided for in the Plan.
A full-text copy of the Chapter 11 Plan dated May 16, 2024 is
available at https://urlcurt.com/u?l=RGVhPJ from PacerMonitor.com
at no charge.
CapRock Milling & Crushing, LLC is represented by:
Steven L. Hoard, Esq.
Alysia Cordova, Esq.
Flannery Nardone, Esq.
Mullin Hoard & Brown, L.L.P.
P.O. Box 31656
Amarillo, TX 79120-1656
Tel: (806) 372-5050
Fax: (806) 372-5086
Email: shoard@mhba.com
acordova@mhba.com
fnardone@mhba.com
About Caprock Milling & Crushing
CapRock Milling & Crushing, LLC, is engaged in grain and oilseed
milling. The company is based in Amarillo, Texas.
Caprock filed Chapter 11 petition (Bankr. N.D. Tex. Case No.
23-20251) on Nov. 3, 2023, with $10 million to $50 million in
assets and $1 million to $10 million in liabilities. Thomas
Bunkley, member of Caprock, signed the petition.
Judge Robert L. Jones oversees the case.
The Debtor tapped Mullin Hoard & Brown, LLP as bankruptcy counsel;
Charhon Callahan Robson & Garza, PLLC as special counsel; and
William Hood & Company as investment banker.
CDO LONESTAR: Hires Villa & White LLP as Bankruptcy Counsel
-----------------------------------------------------------
CDO Lonestar Investments LLC seeks approval from the U.S.
Bankruptcy Court for the Western District of Texas to hire Villa &
White LLP as its counsel.
The Debtor requires legal counsel to:
(a) assist and advise the Debtor relative to its operations
the overall administration of its Chapter 11 case;
(b) represent the Debtor at hearings and communicate with its
creditors regarding the matters heard and the issues raised, as
well as the decisions and considerations of the court;
(c) review and analyze operating reports, schedules,
statements of affairs, and other documents;
(d) assist the Debtor in preparing legal papers;
(e) coordinate the receipt and dissemination of information
prepared by and received from the Debtor and bankruptcy
professionals;
(f) confer with the professionals as may be selected and
employed by any official committee;
(g) assist the Debtor in its negotiations with creditors or
court-appointed representatives or interested third parties
concerning the terms, conditions, and import of a plan of
reorganization and disclosure statement to be filed by the Debtor;
(h) assist the Debtor with such services as may contribute or
are related to the confirmation of a plan of reorganization;
(i) assist the Debtor in its discussions and negotiations with
others regarding the terms, conditions, and security for credit;
(j) conduct examination of witnesses; and
(k) assist the Debtor generally in performing other services.
Morris White, III, Esq., the firm's attorney who will be handling
the case, charges an hourly fee of $400.
As disclosed in court filings, Villa & White does not hold an
interest adverse to the Debtor's estate.
Villa & White can be reached at:
Morris E. White III, Esq.
VILLA & WHITE, LLP
1100 NW Loop 410 #802
San Antonio, TX 78213
Telephone: (210) 225-4500
Facsimile: (210) 212-4649
Email: treywhite@villawhite.com
About CDO Lonestar Investments
CDO Lonestar Investments LLC is a Single Asset Real Estate debtor
(as defined in 11 U.S.C. Section 101(51B)).
CDO Lonestar Investments LLC filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Tex.
Case No. 24-50672) on April 18, 2024, listing $1 million to $10
million in both assets and liabilities. The petition was signed by
Christopher Owens as member.
Judge Michael M. Parker presides over the case.
Morris E. "Trey" White, III, Esq. at Villa & White LLP represents
the Debtor as counsel.
CGI 1100 BISCAYNE: Lender Sets June 24 Auction for Property
-----------------------------------------------------------
In accordance with applicable provisions of the Uniform Commercial
Code as enacted in New York, by virtue of certain events of default
under the partnership interests pledged and security agreement
dated as of Nov. 24, 2021, ("Pledge Agreement") executed and
delivered by CGI 1100 Biscayne Management GP LLC and CGI 1100
Biscayne Management Holdco LP ("Pledgor") and in accordance with it
right as holder of the security, Madison Realty Capital Debt MA II
Holdings MB LLC ("secured party"), by virtue of possession of those
certain share certificates held in accordance with Article 8 of the
Uniform Commercial Code of the State of New York ("Code"), and by
virtue of those certain UCC-1 filing statement made in favor of
secured party will offer for sale, at public auction: (i) all of
pledgor's right, title, and interest in and to the following: CGI
1100 Biscayne Management LP ("Pledged Entity"), and (ii) certain
related rights and property relating thereto.
Secured party's understanding is that the principal asset of the
pledged entity is the premises located at 1100 Biscayne Blvd.,
Miami, Florida. ("Property").
Mannion Auctions LLC under the direction of Matthew D. Mannion or
William Mannion, will conduct a public sale consisting the
collateral via online bidding on June 24, 2024, at 2:00 p.m. in
satisfaction of an indebtedness in the approximate amount of
$7,768,420.61 including principal interest on principal through
June 24, 2024, subject to open charges and all additional costs,
fee and disbursements permitted by law. The secured party reserves
the right to credit bid. The New Sale Date supersedes the UCC sale
previously scheduled for May 23, 2024, at 10:00 p.m.
Online bidding will be made available via Zoom Meeting: Meeting
link: https://bit.ly/1100Biscayne Meeting ID: 844 0421 4057
Passcode: 926256 One Tap Mobile:
+16469313860,,84404214057#,,,,*926256# US;
+16465588656,,84404214057#,,,,*926256# US (New York) Dial by your
location: +1 646 931 3860 US.
Interested parties who intended to bid on the collateral must
contact Brett Rosenberg at Jones Lang LaSalle Americas Inc., 330
Madison Avenue, New York, New York 10017, (212) 812-5926,
Brett.Rosenberg@jll.com, to received the terms and conditions of
sale and bidding instructions by June 22, 2024 by 4:00 p.m. Upon
execution of a standard confidentiality and non-disclosure
agreement, which can be found at the following link
https://www.1100BiscayneBlvdUCCSale.com/
Counsel for secured party Madison Realty Capital:
Jerold C. Feuerstein, Esq.
360 Lexington Avenue, Suite 1200
New York, New York 10017
Tel: 212-661-2900
CHARLIE'S HOLDINGS: Grosses $1.63 Million From Stock Offering
-------------------------------------------------------------
Charlie's Holdings, Inc. reported in a Form 8-K filed with the
Securities and Exchange Commission on May 31, 2024, that it entered
into subscription agreements with investors for the sale of an
aggregate of 20,375,000 shares of its common stock, par value
$0.001 per share, at a purchase price per share of $0.08. The
Offering generated gross proceeds to the Company of approximately
$1.63 million, which will be used for working capital purposes.
The Offering was undertaken in reliance on Section 4(a)(2) under
the Securities Act of 1933, as amended, as a transaction not
involving a public offering.
About Charlie's Holdings Inc.
Charlie's Holdings, Inc.'s objective is to become a leader in three
broad product categories: (i) non-combustible nicotine-related
products, (ii) alternative alkaloid vapor products, and (iii)
hemp-derived vapor and edible products. Through its Charlie's
subsidiary, the Company formulates, markets, and distributes
premium, nicotine-based and alternative alkaloid vapor products.
Charlie's products are produced through contract manufacturers for
sale through select distributors, specialty retailers, and
third-party online resellers throughout the United States, and in
select international markets including the United Kingdom, Italy,
Spain, New Zealand, Australia, and Canada. Through Don Polly, the
Company develops, markets and distributes products containing
compounds derived from hemp.
Fort Washington, PA-based Mazars USA LLP, the Company's auditor
since 2023, issued a "going concern" qualification in its report
dated April 15, 2024, citing that the Company has incurred
significant operating losses, has negative cash flows from
operations, and has an accumulated deficit. The Company is
dependent on its ability to increase revenues and obtain financing
to execute its development plans and continue operations. These
conditions raise substantial doubt about the Company's ability to
continue as a going concern.
CLARIOS GLOBAL: S&P Raises ICR to 'BB-' on Improved Credit Metrics
------------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on U.S.–based
Clarios Global L.P. to 'BB-' from 'B+'. At the same time, S&P also
raised its issue-level rating on Clarios' senior secured debt to
'BB-' from 'B+'. The recovery rating remains '3'. S&P also raised
its issue-level rating on the company's senior unsecured debt to
'B' from 'B-' The recovery rating remains '6'.
The stable outlook reflects S&P's expectation that the company will
maintain leverage below 5x and FOCF to debt in excess of 5% over
the longer term.
S&P said, "The upgrade reflects our view that the company will
maintain a more conservative credit profile while continuing to
grow earnings over the longer-term. Clarios' S&P Global
Ratings-adjusted leverage declined to 4.4x for the 12-months-ended
March 31, 2024, compared with 5.7x in the same prior year period.
Driving this was a combination of strong revenue growth, improved
margins, and importantly, gross debt reduction of about $749
million over the last 12 months. We also expect the company to
repay its $450 million senior secured notes due 2025 within fiscal
2024. Given its track record of deleveraging, we now believe the
company will maintain a more conservative credit profile and hold
leverage comfortably below 5x over the longer term.
"We had previously expected the company to maintain their leverage
at 5x or above due to its financial sponsor ownership and high
leverage level in years prior. However, we now expect the company
to maintain a somewhat more conservative financial policy as the
company has repaid debt and rather than using debt to fund
acquisitions or shareholder returns. Furthermore, the company's
earnings have also improved due to increasing penetration of
higher-margin absorbent glass mat (AGM) batteries globally. As a
result of the company's earnings improvement, free cash flow
generation has also expanded and free cash flow to debt hit 8.8%
for the 12-months-ended March 31, 2024. Going forward, we expect
free cash flow to debt could moderate as capex increases to support
additional AGM capacity buildout, but that it will be maintained
above 5% longer term.
"After significant margin improvement in 2023, we forecast flatter
margins but improving earnings as volumes continue to grow,
particularly through international expansion. We expect the
company's S&P Global Ratings-adjusted EBITDA margins will remain
around 19%-19.5% in 2024, significantly higher than 15.7% in 2022
but flat compared with 19.5% in 2023. While we expect margin
improvement due to stronger pricing and better product mix and
efficiency, this will likely be offset by inflationary pressures
and strategic investments in new technologies.
"However, dollar earnings should continue growing as we expect
sales growth of about 6% in 2024. Clarios' AGM mix increased to 31%
of units sold in the second quarter of fiscal 2024, up from 29% in
the second quarter of fiscal 2023. We anticipate greater capex
spend in the near term to support further AGM capacity buildout. As
such, we do expect some moderation in free cash flow generation
from the prior year, though the company will continue maintain FOCF
to debt of 6.5%-7% in 2024 and 7%-7.5% in 2025.
"Over the longer term, the new upgraded production facilities
should also improve overall efficiency through increased throughput
and significant scrap reduction. As sales continue to grow, we also
expect stronger operating leverage through higher capacity
utilization. Given our expectation for further earnings
improvement, we anticipate leverage be just over 4x in 2024 and
further improve to 3.8x-4x in 2025."
Increasing vehicle sophistication, including electric vehicles,
will drive longer-term sales tailwinds. As vehicles become more
complex, there should be an increasing need for AGM batteries in
vehicles to support increased electrical loads, critical safety
functionality, start-stops, and enhanced user experiences. S&P
said, "Furthermore, AGM sales will shift to the more-profitable
aftermarket channel from original equipment manufacturers (OEMs)
over time as batteries need to be replaced (two to four times over
a vehicle's lifespan), which we believe will provide a longer-term
growth tailwind for both margins and volumes. The mix of
aftermarket sales for AGM batteries also improved to 20% in the
second fiscal quarter of 2024, which is up from 18% in the prior
year quarter. This compares against about 79% of overall battery
sales going through the aftermarket channel in 2023. Still, new
technologies or greater utilization of batteries where competitors
may have greater scale such as lithium-ion could disrupt the
existing low-voltage battery market. Accordingly, the company is
constantly innovating and developing new battery solutions such as
sodium-ion, though we believe the commercial viability of these
technologies is still unclear."
The stable outlook reflects S&P's expectation that the company will
maintain leverage below 5x and free cash flow to debt above 5% over
the next 12 months.
S&P said, "Environmental factors have an overall neutral influence
on our credit rating analysis of Clarios. While the company
operates in an environmentally unfriendly subindustry, we believe
its track record of managing these risks somewhat offsets this. If
not responsibly managed, lead-acid battery recycling can pose
serious public health risks through environmental emissions and
occupational exposure. A positive for the industry is that 99% of
automotive batteries are designed for recyclability, and
conventional vehicle batteries are the most recycled consumer
product in the world. Also, the company's worker incident and
illness rates in the U.S. are better than industry standards.
"Governance is a moderately negative consideration. Our assessment
of Clarios' financial risk profile as highly leveraged reflects
corporate decision-making that prioritizes the interests of
controlling owners, in line with our view of most rated entities
owned by private-equity sponsors. Our assessment also reflects
their generally finite holding periods and a focus on maximizing
shareholder returns."
CLAROS MORTGAGE: Moody's Cuts CFR to B1 & Alters Outlook to Stable
------------------------------------------------------------------
Moody's Ratings has downgraded Claros Mortgage Trust, Inc.'s (CMTG)
corporate family rating and senior secured bank credit facility
rating to B1 from Ba3. Following the downgrade, CMTG's outlook was
changed to stable from negative.
RATINGS RATIONALE
The downgrade reflects the continued deterioration in CMTG's asset
quality. The company's 4 and 5 rated loans, the weakest internal
risk rating categories, have increased to 30% of the total unpaid
principal balance (UPB) of the loan portfolio as of March 31, 2024
from approximately 17% a year prior. Loans on non-accrual status,
which generally includes all 5-rated loans and some 4-rated loans,
increased to approximately 10% of the total UPB as of March 31,
2024, from 7.4% a year prior. CMTG also recognized a $42.3 million
charge-off during the first quarter of 2024 related to the transfer
of a loan collateralized by two multifamily properties in Irvine,
CA to held-for-sale status, reflecting the difference between the
carrying value and the sale price of the loan, which was realized
after the end of the quarter.
These negative pressures are mitigated in part by CMTG's low
leverage relative to peers as measured by tangible common equity to
tangible managed assets (TCE/TMA), which measured 28.6% at the end
of the first quarter of 2024, little changed from a year prior
despite the volatility in earnings and asset quality. In addition,
the firm's ratio of reserves to gross loans stood at 2.64% as of
March 31, 2024, which provides an additional buffer to absorb
losses. CMTG benefits from relatively low exposure to loans
collateralized by office properties, the most impacted commercial
real estate (CRE) asset class, which represents only 14% of loans
on the balance sheet, the lowest level among rated non-bank CRE
lenders.
The company has prudently delevered repurchase facilities and
managed its total liquidity. CMTG's nearest large maturity is its
secured term loan maturing in August 2026 with $1.9 million in
quarterly principal payments due until maturity. CMTG is also
reliant on various loan repurchase facilities, with $3.6 billion
outstanding under such facilities as of March 31, 2024.
The stable outlook reflects Moody's expectation that CMTG's strong
capitalization and low office exposure will mitigate risks
associated with dislocation in the CRE sector over the next 12-18
months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
CMTG's ratings could be upgraded if the company improves its asset
quality by reducing non-accrual loans and charge-offs while
maintaining strong capitalization and demonstrating sustainable
profitability.
CMTG's ratings could be downgraded if the company experiences a
further material deterioration in asset quality and profitability,
or weakens its capital position significantly.
The principal methodology used in these ratings was Finance
Companies Methodology published in November 2019.
CONVERGEONE HOLDINGS: Completes Financial Restructuring Process
---------------------------------------------------------------
C1, formerly ConvergeOne, on June 4 announced that it has
successfully completed its financial restructuring process. C1 has
emerged with an even stronger financial foundation, enabling it to
further invest in product and service innovations across
infrastructure, communications and security, and provide its
customers with the ability to elevate connected human experiences.
"Completing this highly consensual, expedited process positions C1
to expand investments in near-term growth initiatives," said
Jeffrey S. Russell, Chief Executive Officer of C1. "We remain
focused on driving modernization and innovative outcomes for our
customers across infrastructure, communications and security
solutions. As always, C1 is committed to bringing together the best
of services, products and channels so organizations can take full
advantage of technology to create elevated connected experiences
for their customers."
Mr. Russell continued, "We appreciate the support of our new
owners, whose investment reflects their confidence in C1's
capabilities and the future of the business. With our new owners,
the continued collaboration and trust of our partners, and the
unwavering commitment of the talented C1 team, we are now even
better positioned to deliver exceptional product and service
innovation for our customers."
As a result of this process, C1 has reduced its debt by
approximately 80% and CVC Capital Partners, as well as Silver Point
Capital and Monarch Alternative Capital, among others, have become
the majority owners of C1 and have invested $245 million in new
equity into the Company.
About ConvergeOne Holdings
ConvergeOne Holdings Inc. operates as a holding company. The
Company, through its subsidiaries, provides managed cloud, cyber
security, enterprises networking, data center, application and
software development, security infrastructure, and hosted
collaboration solutions.
ConvergeOne Holdings and its subsidiaries sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case
No. 24-90194) on April 4, 2024, with $1 billion to $10 billion in
assets and liabilities.
Judge Christopher M. Lopez presides over the cases.
White & Case LLP is the Debtors' legal counsel. Evercore Group LLC
is the Debtors' investment banker, and AlixPartners, LLP, is the
restructuring advisor. EPIQ Bankruptcy Solutions is the claims
agent.
Porter Hedges LLP, and Gibson, Dunn & Crutcher LLP advise the first
lien lenders.
CRYSTAL PACKAGING: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Crystal Packaging, Inc.
9155 Boston Street
Henderson, CO 80640
Business Description: Crystal Packaging is a family owned liquid
blending company offering a variety of
contract and toll services for organizations
across the country.
Chapter 11 Petition Date: June 4, 2024
Court: United States Bankruptcy Court
District of Colorado
Case No.: 24-13093
Judge: Hon. Thomas B. Mcnamara
Debtor's Counsel: David V. Wadsworth, Esq.
WADSWORTH GARBER WARNER CONRARDY, P.C.
2580 West Main Street
Suite 200
Littleton, CO 80120
Tel: 303-296-1999
Email: dwadsworth@wgwc-law.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by C. Scott Vincent as president.
A copy of the Debtor's list of 20 largest unsecured creditors is
available for free at PacerMonitor.com:
https://www.pacermonitor.com/view/3TOCKZY/Crystal_Packaging_Inc__cobke-24-13093__0004.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com:
https://www.pacermonitor.com/view/4EH5VTY/Crystal_Packaging_Inc__cobke-24-13093__0001.0.pdf?mcid=tGE4TAMA
CURVES AND COMBAT: Case Summary & 13 Unsecured Creditors
--------------------------------------------------------
Debtor: Curves and Combat Boots LLC
827 Bristol Park
Allen TX 75002
Business Description: The Debtor is an athletic apparel company.
Chapter 11 Petition Date: June 4, 2024
Court: United States Bankruptcy Court
Eastern District of Texas
Case No.: 24-41331
Debtor's Counsel: Brandon Tittle, Esq.
TITTLE LAW GROUP, PLLC
5465 Legacy Drive, Ste. 650
Plano, TX 75024
Tel: 972-731-2590
E-mail: btittle@tittlelawgroup.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Elijah Maine as sole member.
A copy of the Debtor's list of 13 largest unsecured creditors is
available for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/Z46ACOA/Curves_and_Combat_Boots_LLC__txebke-24-41331__0002.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/ZQ3BGCI/Curves_and_Combat_Boots_LLC__txebke-24-41331__0001.0.pdf?mcid=tGE4TAMA
DANT A. SANDRAS: Case Summary & 18 Unsecured Creditors
------------------------------------------------------
Debtor: Dant A. Sandras, D.D.S., L.L.C.
13373 Hwy 3235
Larose, LA 70373
Business Description: The Debtor is primarily engaged in the
private or group practice of general or
specialized dentistry or dental surgery.
Chapter 11 Petition Date: June 4, 2024
Court: United States Bankruptcy Court
Eastern District of Louisiana
Case No.: 24-11046
Judge: Hon. Meredith S Grabill
Debtor's Counsel: Leo D. Congeni, Esq.
CONGENI LAW FIRM, LLC
650 Poydras St., Ste. 2750
New Orleans, LA 70130
Tel: (504) 522-4848
E-mail: leo@congenilawfirm.com
Total Assets: $588,287
Total Liabilities: $1,351,495
The petition was signed by Dant A. Sandras as president/owner.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 18 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/NM44KUI/Dant_A_Sandras_DDS_LLC__laebke-24-11046__0001.0.pdf?mcid=tGE4TAMA
DEWILL RESTAURANT: Hires David L. Spector PC as Accountant
----------------------------------------------------------
Dewill Restaurant Management Inc. seeks approval from the U.S.
Bankruptcy Court for the Eastern District of New York to employ
David L. Spector PC as accountant.
The firm will review, analyze and reconcile Debtor's financial
records; review tax filings; and prepare monthly operating
reports.
The firm will be paid at $250 per hour.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
David L. Spector, CPA, at David L. Spector PC, 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:
David L. Spector, CPA
David L. Spector PC
723 Wilson St.
North Woodmere, NY 11581
About Dewill Restaurant Management Inc.
Dewill Restaurant Management Inc., filed a Chapter 11 bankruptcy
petition (Bankr. E.D.N.Y. Case No. 24-41503) on April 8, 2024,
disclosing under $1 million in both assets and liabilities. The
Debtor is represented by KOPELMAN & KOPELMAN LLP.
DIAMOND EAGLE: Hires Law Office of Charles A. Higgs as Co-Counsel
-----------------------------------------------------------------
Diamond Eagle Taxes, Inc. and its affiliates seek approval from the
U.S. Bankruptcy Court for the Eastern District of New York to
employ Law Office of Charles A. Higgs as Co-Counsel to provide
legal services.
The firm will be paid at these rates:
Attorneys $450 per hour
Paraprofessionals $200 per hour
The firm received a pre-petition retainer in the amount of
$15,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Charles Higgs, Esq., a partner at Law Office of Charles A. Higgs,
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:
Charles Higgs, Esq.
Law Office Of Charles A. Higgs
2 Depot Plaza First Floor, Office 4
Bedford Hills, NY 10507
Tel: (917) 673-3768
Email: Charles@freshstartesq.com
About Diamond Eagle Taxes, Inc.
Diamond Eagle Taxes, Inc., filed a Chapter 11 bankruptcy petition
(Bankr. E.D.N.Y. Case No. 24-41252) on March 22, 2024, disclosing
under $1 million in both assets and liabilities. The Debtor is
represented by LAW OFFICE OF JAMES J. RUFO.
DIMENSIONS IN SENIOR: Creditors to Get Proceeds From Liquidation
----------------------------------------------------------------
Wilcox Properties of Columbia, LLC, a Debtor Affiliate of
Dimensions In Senior Living, LLC, filed with the U.S. Bankruptcy
Court for the District of Nebraska a Disclosure Statement in
support of Plan of Liquidation dated May 16, 2024.
Columbia operated a retirement home facility in Columbia, Missouri
for many years. However, in 2022, the State of Missouri informed
Columbia that it would not renew Columbia's operating license
unless substantial improvements were made to Columbia's former
facility to comply with current building code requirements,
requirements that had historically been grandfathered-in from
compliance.
Columbia was without cash reserves to pay for these substantial
updates and was forced to close its facility and relocate its
residents. This instant case was filed to preserve the value of the
building and assets from forced liquidation.
On March 21, 2023, Columbia filed an Application to Employ Paul
Land to act as a licensed real estate broker (the "Broker") for the
purposes of marketing and selling certain real and personal
property assets of Columbia. Columbia proposed to sell all or
substantially all its real property assets and contents located
1406 Business Loop 70 W., Columbia, Missouri 65202 (the "Assets").
Pursuant to the Sale Motion, Columbia proposed to sell the Assets,
but not the Excluded Assets, to Market Ready, LLC (the "Buyer") for
the sum of $737,000.00 (the "Purchase Price"). The net proceeds of
this sale were delivered to American National Bank.
American National Bank is Columbia's primary lender, having
advanced funds to Columbia in the original amount of approximately
$3,690,000.00. The Bank filed a proof-of-claim for $3,241,892.93.
As security for the forgoing indebtedness owing to the Bank under
the various promissory notes, Columbia executed and delivered to
the Bank multiple loan agreements, deeds of trust, and or security
agreements.
Columbia's schedules and proofs of claims filed to date indicate
priority claims of approximately $402,290.91. Columbia's schedules
and proofs of claims filed to date indicate unsecured claims of
approximately $1,011,175.37.
Columbia will continue to operate what remains of Columbia's
operations for the purpose of collecting, liquidation, and
distributing any remaining assets. The manager of Columbia will
continue to be Dimensions in Senior Living, LLC.
Class 2 shall consist of the holders of Allowed Unsecured Claims.
The Allowed Amount of Allowed Unsecured Claims held by Unsecured
Creditors shall be determined by the amount set forth in Columbia's
Bankruptcy Schedules, any timely proofs of claim filed in this
Bankruptcy Case, or final order of the Bankruptcy Court (the
"Allowed Class 2 Claims").
Unless any submitted Unsecured Claim is a Disputed Claim, in the
event there is a discrepancy between the amount of an alleged claim
contained in Columbia's Bankruptcy Schedules and timely proof of
claim filed by an Unsecured Creditor, the Allowed Amount of such
Unsecured Creditor's Unsecured Claim shall be determined by the
timely filed proof of claim. Each holder of an Allowed Class 2
Claim will be paid its Pro Rata share from the Claims Distribution
Fund.
Class 3 consists of Holders of Equity Security Interests in
Columbia shall retain their Interests in Columbia under this Plan
provided that all unclassified claims, the Class 1 Claim, and the
Class 2 Claims are paid in full under this Plan. All other
Interests shall be canceled.
Classes One through Two will be paid from the revenue derived from
the liquidation of any of Columbia's remaining assets, including
(i) Insurance Claims, Insurance Claim Litigations, and Insurance
Claim Recoveries; (ii) Tax Refunds and Tax Refund Proceeds; and
(iii) any Cause of Action Recoveries.
This Plan is funded by Columbia, in part, from Columbia's Cash not
subject to a Lien, and the proceeds realized from the liquidation
of Columbia's remaining assets, including and: (i) Insurance
Claims, Insurance Claim Litigations, and Insurance Claim
Recoveries; (ii) Tax Refunds and Tax Refund Proceeds; and (iii)
other Collateral of ANB.
A full-text copy of the Disclosure Statement dated May 16, 2024 is
available at https://urlcurt.com/u?l=9jz8PL from PacerMonitor.com
at no charge.
Counsel to the Debtors:
Patrick Turner, Esq.
Turner Legal Group, LLC
139 S. 144th Street, Suite 665
Omaha, NE 68010
Tel: (402) 690-3675
Email: pturner@turnerlegalomaha.com
About Dimensions in Senior Living
Dimensions in Senior Living, LLC -- https://www.dimsrivg.com/ --
through a series of entities, owns and manages a series of senior
living and assisted living facilities in Nebraska, Iowa, Missouri,
and Kansas.
Dimensions in Senior Living and six affiliates each filed a
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
D. Neb. Lead Case No. 22-80860) on Nov. 21, 2022. In the petition
filed by its chief restructuring officer, Amy Wilcox-Burns,
Dimensions in Senior Living reported assets and liabilities between
$1 million and $10 million.
Judge Brian S. Kruse oversees the cases.
The Debtors are represented by Patrick Raymond Turner, Esq., at
Turner Legal Group, LLC.
Abigail T. Mohs, Esq., at Baird Holm, LLP is the patient care
ombudsman appointed in the Debtors' cases.
DIMENSIONS IN SENIOR: Unsecureds to Get 100% in Fort Calhoun's Plan
-------------------------------------------------------------------
Wilcox Properties of Fort Calhoun, LLC, a Debtor Affiliate of
Dimensions In Senior Living, LLC, filed with the U.S. Bankruptcy
Court for the District of Nebraska a Disclosure Statement in
support of Plan of Reorganization dated May 16, 2024.
Fort Calhoun has operated a retirement home facility in Fort
Calhoun, NE for many years. Fort Calhoun was not in default of its
obligations to the Bank and NEDCO.
However, one of Fort Calhoun's affiliated companies, Wilcox
Properties of Columbia, LLC ("Columbia") operated a similar
facility in Columbia, Missouri. However, in 2022, the State of
Missouri informed Columbia that it would not renew Columbia's
operating license unless substantial improvements were made to
Columbia's former facility to comply with current building code
requirements, requirements that had historically been
grandfathered-in from compliance.
In addition, two other of one of Fort Calhoun's affiliated
companies, Village Ridge, LLC and Village Place, LLC, had legal
judgments issues against them in excess of $500,000.00. Columbia,
Village Ridge, LLC and Village Place, LLC, are also banked at
American National Bank. These instant cases were filed (along with
6 other related cases) to prevent the loan defaults associated with
Columbia, Village Ridge, LLC and Village Place, LLC, from causing a
loan default of Fort Calhoun's obligations to American National
Bank.
Fort Calhoun owns a facility in Iola, Kansas located at 501 North
13th Street, Fort Calhoun, NE. Fort Calhoun's schedules listed its
real estate property as having an assessed value of $5,100,000.00.
Shortly after the Petition Date, American National Bank obtained a
formal appraisal listing the value of Fort Calhoun's real estate
assets as approximately $3,800,000.00.
Fort Calhoun's schedules and proofs of claims filed to date
indicate unsecured claims of approximately $213,454.22. Of this
amount, approximately $107,041.28 is a contingent, unliquidated
claims owed to the US DHHS and arising from Fort Calhoun's receipt
of HHS Provider Relief Funds. However, the amounts due to the US
DHHS have been forgiven and need not be repaid.
Fort Calhoun will continue to operate what remains of Fort
Calhoun's operations for the purpose of collecting, liquidation,
and distributing any remaining assets. The manager of Fort Calhoun
will continue to be Dimensions in Senior Living, LLC.
Class 4 consists of General Unsecured Claims. Each holder of an
Allowed Claim in Class 4 will be paid in full plus interest at the
federal judgment rate in 36 equal installments beginning on the 1st
day of the calendar month following the Effective Date.
Notwithstanding any other provision of this Plan, Debtor shall have
the option to repay the amounts due to Class 4 creditors at any
time. This Class will receive a distribution of 100% of their
allowed claims.
Holders of Equity Security Interests in Debtor shall retain their
Interests in Debtor.
Classes One through Four will be paid from the revenue derived from
Fort Calhoun's post-petition income and operations derived from its
facility in Fort Calhoun, Nebraska. Payments made to the holders of
Allowed Claims shall be paid directly from Fort Calhoun.
A full-text copy of the Disclosure Statement dated May 16, 2024 is
available at https://urlcurt.com/u?l=G6buuN from PacerMonitor.com
at no charge.
Counsel to the Debtors:
Patrick Turner, Esq.
Turner Legal Group, LLC
139 S. 144th Street, Suite 665
Omaha, NE 68010
Tel: (402) 690-3675
Email: pturner@turnerlegalomaha.com
About Dimensions in Senior Living
Dimensions in Senior Living, LLC -- https://www.dimsrivg.com/ --
through a series of entities, owns and manages a series of senior
living and assisted living facilities in Nebraska, Iowa, Missouri,
and Kansas.
Dimensions in Senior Living and six affiliates each filed a
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
D. Neb. Lead Case No. 22-80860) on Nov. 21, 2022. In the petition
filed by its chief restructuring officer, Amy Wilcox Burns,
Dimensions in Senior Living reported assets and liabilities between
$1 million and $10 million.
Judge Brian S. Kruse oversees the cases.
The Debtors are represented by Patrick Raymond Turner, Esq., at
Turner Legal Group, LLC.
Abigail T. Mohs, Esq., at Baird Holm, LLP is the patient care
ombudsman appointed in the Debtors' cases.
DIMENSIONS IN SENIOR: Unsecureds Will Get 100% in Humboldt's Plan
-----------------------------------------------------------------
Humboldt Assisted Living, LLC, a debtor affiliate of Dimensions In
Senior Living, LLC, filed with the U.S. Bankruptcy Court for the
District of Nebraska a Disclosure Statement in support of Plan of
Reorganization dated May 16, 2024.
Humboldt has operated a retirement home facility in Humboldt,
Kansas many years. In addition, one of Humboldt's affiliated
companies, Wilcox Properties of Columbia, LLC ("Columbia") operated
a similar facility in Columbia, Missouri.
However, in 2022, the State of Missouri informed Columbia that it
would not renew Columbia's operating license unless substantial
improvements were made to Columbia's former facility to comply with
current building code requirements, requirements that had
historically been grandfathered-in from compliance. Columbia was
without cash reserves to pay for these substantial updates and was
forced to close its facility and relocate its residents.
In addition, two of Humboldt's affiliated companies, Village Ridge,
LLC and Village Place, LLC, had legal judgments issues against them
in excess of $500,000.00. Columbia, Village Ridge, LLC and Village
Place, LLC, are also banked at American National Bank. These
instant cases were filed (along with 6 other related cases) to
prevent the loan defaults associated with Columbia, Village Ridge,
LLC and Village Place, LLC, from causing a loan default of
Humboldt's obligations to American National Bank.
Humboldt owns a facility in Humboldt, Kansas located at 615
Franklin Street, Humboldt, KS 66749. Humboldt's schedules listed
its real estate property as having an assessed value of
$365,960.00. Shortly after the Petition Date, American National
Bank obtained a formal appraisal listing the value of Humboldt's
real estate assets as approximately $1,200,000.00.
Humboldt's schedules and proofs of claims filed to date indicate
unsecured claims of approximately $72,675.11. Of this amount,
approximately $67,484.75 is a contingent, unliquidated claims owed
to the US DHHS and arising from Humboldt's receipt of HHS Provider
Relief Funds. However, the amounts due to the US DHHS have been
forgiven and not need to be repaid.
Humboldt will continue to operate what remains of Humboldt's
operations for the purpose of collecting, liquidation, and
distributing any remaining assets. The manager of Humboldt will
continue to be Dimensions in Senior Living, LLC.
Class 2 consists of General Unsecured Claims. Each holder of an
Allowed Claim in Class 2 will be paid in full plus interest at the
federal judgment rate in 6 equal installments beginning on the 1st
day of the calendar month following the Effective Date.
Notwithstanding any other provision of this Plan, Humboldt shall
have the option to repay the amounts due to Class 2 creditors at
any time. This Class will receive a distribution of 100% of their
allowed claims.
Holders of Equity Security Interests in Humboldt shall retain their
Interests in Humboldt.
Classes One through Two will be paid from the revenue derived from
Humboldt's post-petition income and operations derived from its
facility in Humboldt, Kansas. Payments made to the holders of
Allowed Class 1 and Class 2 Claims shall be paid directly from
Humboldt.
A full-text copy of the Disclosure Statement dated May 16, 2024 is
available at https://urlcurt.com/u?l=M5m0pY from PacerMonitor.com
at no charge.
Counsel to the Debtors:
Patrick Turner, Esq.
Turner Legal Group, LLC
139 S. 144th Street, Suite 665
Omaha, NE 68010
Tel: (402) 690-3675
Email: pturner@turnerlegalomaha.com
About Dimensions in Senior Living
Dimensions in Senior Living, LLC -- https://www.dimsrivg.com/ --
through a series of entities, owns and manages a series of senior
living and assisted living facilities in Nebraska, Iowa, Missouri,
and Kansas.
Dimensions in Senior Living and six affiliates each filed a
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
D. Neb. Lead Case No. 22-80860) on Nov. 21, 2022. In the petition
filed by its chief restructuring officer, Amy Wilcox Burns,
Dimensions in Senior Living reported assets and liabilities between
$1 million and $10 million.
Judge Brian S. Kruse oversees the cases.
The Debtors are represented by Patrick Raymond Turner, Esq., at
Turner Legal Group, LLC.
Abigail T. Mohs, Esq., at Baird Holm, LLP, is the patient care
ombudsman appointed in the Debtors' cases.
DIMENSIONS IN SENIOR: Unsecureds Will Get 100% in IOLA's Plan
-------------------------------------------------------------
WB Real Estate Of Iola, LLC, a Debtor Affiliate of Dimensions In
Senior Living, LLC, filed with the U.S. Bankruptcy Court for the
District of Nebraska a Disclosure Statement in support of Plan of
Reorganization dated May 16, 2024.
IOLA has operated a retirement home facility in Iola, Kansas many
years. In addition, one of IOLA's affiliated companies, Wilcox
Properties of Columbia, LLC ("Columbia") operated a similar
facility in Columbia, Missouri.
However, in 2022, the State of Missouri informed Columbia that it
would not renew Columbia's operating license unless substantial
improvements were made to Columbia's former facility to comply with
current building code requirements, requirements that had
historically been grandfathered-in from compliance. Columbia was
without cash reserves to pay for these substantial updates and was
forced to close its facility and relocate its residents.
In addition, two other of IOLA's affiliated companies, Village
Ridge, LLC and Village Place, LLC, had legal judgments issues
against them in excess of $500,000.00. Columbia, Village Ridge, LLC
and Village Place, LLC, are also banked at American National Bank.
These instant cases were filed (along with 6 other related cases)
to prevent the loan defaults associated with Columbia, Village
Ridge, LLC and Village Place, LLC, from causing a loan default of
IOLA's obligations to American National Bank.
IOLA owns a facility in Iola, Kansas located at 2620 N Kentucky,
Iola KS 66749. IOLA is a licensed real estate agent and an
appraiser in training. As of the Petition Date, IOLA's opinion
reasoned opinion is that the Properties had an aggregate value of
approximately $1,450,000.00.
IOLA's schedules and proofs of claims filed to date indicate
unsecured claims of approximately $175,287.88. Of this amount,
approximately $159,289.36 is a contingent, unliquidated claims owed
to the US DHHS and arising from the IOLA's receipt of HHS Provider
Relief Funds. However, the amounts due to the US DHHS have been
forgiven and need not be repaid.
IOLA will continue to operate what remains of IOLA's operations for
the purpose of collecting, liquidation, and distributing any
remaining assets. The manager of IOLA will continue to be
Dimensions in Senior Living, LLC.
Class 2 consists of General Unsecured Claims. Each holder of an
Allowed Claim in Class 2 will be paid in full plus interest at the
federal judgment rate in 12 equal installments beginning on the 1st
day of the calendar month following the Effective Date.
Notwithstanding any other provision of this Plan, IOLA shall have
the option to repay the amounts due to Class 2 creditors at any
time. This Class will receive a distribution of 100% of their
allowed claims.
Holders of Equity Security Interests in IOLA shall retain their
Interests in IOLA.
Classes One through Two will be paid from the revenue derived from
IOLA's post-petition income and operations derived from its
facility in Iola, Kansas. Payments made to the holders of Allowed
Class 1 and Class 2 Claims shall be paid directly from IOLA.
After the Effective Date, IOLA will continue to manage the business
affairs of IOLA without supervision by the Bankruptcy Court, and
may enter into agreements to transfer, convey, encumber, use and
lease any and all of its remaining assets or assets acquired
hereafter.
A full-text copy of the Disclosure Statement dated May 16, 2024 is
available at https://urlcurt.com/u?l=BETl4O from PacerMonitor.com
at no charge.
Counsel to the Debtors:
Patrick Turner, Esq.
Turner Legal Group, LLC
139 S. 144th Street, Suite 665
Omaha, NE 68010
Tel: (402) 690-3675
Email: pturner@turnerlegalomaha.com
About Dimensions in Senior Living
Dimensions in Senior Living, LLC -- https://www.dimsrivg.com/ --
through a series of entities, owns and manages a series of senior
living and assisted living facilities in Nebraska, Iowa, Missouri,
and Kansas.
Dimensions in Senior Living and six affiliates each filed a
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
D. Neb. Lead Case No. 22-80860) on Nov. 21, 2022. In the petition
filed by its chief restructuring officer, Amy Wilcox Burns,
Dimensions in Senior Living reported assets and liabilities between
$1 million and $10 million.
Judge Brian S. Kruse oversees the cases.
The Debtors are represented by Patrick Raymond Turner, Esq., at
Turner Legal Group, LLC.
Abigail T. Mohs, Esq., at Baird Holm, LLP is the patient care
ombudsman appointed in the Debtors' cases.
DISTRIBUIDORA NARANJITO: Taps Cynthia Fraticelli as Accountant
--------------------------------------------------------------
Distribuidora Naranjito Import & Export Corp. seeks approval from
the U.S. Bankruptcy Court for the District of Puerto Rico to
Cynthia Garcia Fraticelli, a practicing accountant in Ponce, P.R.
The Debtor requires an accountant to prepare its monthly operating
reports and periodic statements of operations; represent it in tax
investigation; file all pending PR Treasury corporate tax returns;
prepare state and federal tax returns; and provide other accounting
services necessary to administer its bankruptcy estate.
The accountant will receive a monthly fee of $125 for her
services.
As disclosed in court filings, Ms. Fraticelli is a "disinterested
person" pursuant to Section 101(14) of the Bankruptcy Code.
Ms. Fraticelli maintains an office at:
Cynthia I. Garcia Fraticelli
Urb. Bella Vista
4111 Calle Nuclear
Ponce, PR 00716
Tel: (787) 613-0411
Fax: (787) 812-3409
About Distribuidora Naranjito Import & Export Corp.
Distribuidora Naranjito Import & Export Corp. filed its voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
D.P.R. Case No. 24-00711) on February 26, 2024, listing $1,039,957
in assets and $2,352,350 in liabilities. The petition was signed by
Osmar A. Aymat Rivera as president.
Modesto Bigas-Mendez, Esq. at MODESTO BIGAS LAW OFFICE represents
the Debtor as counsel.
DNC AND TCPA: Joli Lofstedt Named Subchapter V Trustee
------------------------------------------------------
The U.S. Trustee for Region 11 appointed Joli Lofstedt, Esq., as
Subchapter V trustee for DNC and TCPA List Sanitizer, LLC.
Ms. Lofstedt, a practicing attorney in Louisville, Colo., will be
paid an hourly fee of $375 for her services as Subchapter V trustee
and will be reimbursed for work-related expenses incurred.
Ms. Lofstedt declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Joli A. Lofstedt, Esq.
P.O. Box 270561
Louisville, CO 80027
Phone: (303) 476-6915
Fax: (303) 604-2964
Email: joli@jaltrustee.com
About DNC and TCPA
DNC and TCPA List Sanitizer, LLC sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Colo. Case No. 24-12624) on
May 16, 2024, with $50,001 to $100,000 in assets and $500,001 to $1
million in liabilities.
John Cimino, Esq., at Cimino Law Office, LLC represents the Debtor
as bankruptcy counsel.
ENGLOBAL CORP: Receives Notice of Listing Suspension From Nasdaq
----------------------------------------------------------------
ENGlobal Corporation reported in a Form 8-K filed with the
Securities and Exchange Commission that on May 30, 2024, the
Company received written notice from The Nasdaq Stock Market Inc.
notifying the Company that the Nasdaq staff has determined that the
Company did not meet the terms of the extension. As a result,
unless the Company requests an appeal of this determination before
a Nasdaq Hearings Panel by June 6, 2024, trading of the Company's
common stock will be suspended at the opening of business on June
10, 2024, and a Form 25-NSE will be filed with the SEC, which will
remove the Company's securities from listing and registration on
Nasdaq.
The Company intends to submit a hearing request to the Panel, which
request will stay the suspension of the Company's securities and
the filing of the Form 25-NSE pending the Panel's decision. At the
Panel hearing, the Company intends to present a strategic plan to
regain compliance with the applicable Nasdaq listing requirements.
In the interim, the Company's common stock will continue to trade
on Nasdaq. There can be no assurance that the Company's plan will
be accepted by the Panel or that, if it is, the Company will be
able to regain compliance with the applicable Nasdaq listing
requirements. If the Company's common stock is delisted, it could
be more difficult to buy or sell the Company's common stock or to
obtain accurate quotations, and the price of the Company's common
stock could suffer a material decline. Delisting could also impair
the Company's ability to raise capital.
If trading in the Company's common stock is suspended on Nasdaq or
the Company's common stock is delisted by Nasdaq, it could
negatively impact the Company as it would likely reduce the
liquidity and market price of the Company's common stock, reduce
the number of investors willing to hold or acquire the Company's
common stock, negatively impact the Company's ability to access
equity markets and obtain financing, and impair the Company's
ability to provide equity incentives.
As previously disclosed, on Nov. 27, 2023, ENGlobal received
written notice from Nasdaq indicating that the Company was not in
compliance with Listing Rule 5550(b) for continued listing due to
the Company's failure to maintain a minimum of $2,500,000 in
stockholders' equity. Nasdaq also determined that the Company did
not meet the alternatives of market value of listed securities or
net income from continuing operations for continued listing. The
Company subsequently submitted a plan to regain compliance and
based on such submission, Nasdaq granted the Company an extension
of time until May 27, 2024 to regain compliance with Listing Rule
5550(b).
About ENGlobal
ENGlobal Corporation (NASDAQ:ENG)-- www.englobal.com -- is a
provider of innovative, delivered project solutions primarily to
the energy industry. ENGlobal operates through two reportable
segments: Commercial and Government Services. The Commercial
segment provides engineering, design, fabrication, construction
management and integration of automated control systems. The
Government Services segment provides engineering, design,
installation, operations, and maintenance of various government,
public sector, and international facilities, specializing in
turnkey automation and instrumentation systems for the U.S. Defense
industry.
Houston, Texas-based Moss Adams LLP, the Company's auditor since
2017, issued a "going concern" qualification in its report dated
March 29, 2024, citing that the Company has suffered recurring
losses from operations and has utilized significant cash in
operations that raise substantial doubt about its ability to
continue as a going concern.
FHT RENTAL: Unsecured Creditors to Get 0% in Plan
-------------------------------------------------
FHT Rental, Inc., filed with the U.S. Bankruptcy Court for the
District of Puerto Rico a Disclosure Statement describing Plan of
Reorganization dated May 16, 2024.
The Debtor is a domestic Corporation, authorized to do business in
Puerto Rico, since it was created on October 19, 2000.
Since its inception the corporation has been administered by its
president, Mr. Felix A. Torres Garcia, a Civil Engineer with
practice dedicated to survey existing and new construction
projects.
General unsecured creditors are classified in Class 3 and will
receive a distribution of 0%.
Class 3 consists of General Unsecured Claims. The Debtor will
surrender to the creditor the real property securing this claim.
The allowed unsecured claims total $165,140.00. This Class is
impaired.
Payments to the creditors will be made by the surrender of the
collateral securing the creditors' claims.
The Plan Proponent believes that they produce sufficient income
from their salaries to pay all the claims and expenses that are
entitled to be paid on that date. The Debtor's financial reports
show that they have sufficient assets to fund the plan.
A full-text copy of the Disclosure Statement dated May 16, 2024 is
available at https://urlcurt.com/u?l=I9LwIa from PacerMonitor.com
at no charge.
Counsel to the Debtor:
Modesto Bigas Mendez, Esq.
Modesto Bigas Law Office
P.O. Box 7462
Ponce, PR 00732
Telephone: (787) 844-1444
Facsimile: (787) 842-4090
Email: mbiasmendez@gmail.com
About FHT Rental
FHT Rental, Inc., a company in Ponce, P.R., filed a petition under
Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D.P.R. Case
No. 24-00296) on Jan. 30, 2023, with up to $50,000 in assets and up
to $10 million in liabilities. Felix A. Torres Garcia, president,
signed the petition.
Modesto Bigas Mendez, Esq., serves as the Debtor's counsel.
FTX GROUP: Bahamas Chief Gets 7.5 Yrs. Jail Sentence
----------------------------------------------------
Ava Benny-Morrison of Bloomberg News reports that the former chief
executive of FTX's Bahamas subsidiary was ordered to spend 7 1/2
years in prison, the first of Sam Bankman-Fried's close associates
to be sentenced in the wake of the cryptocurrency exchange's
implosion.
Ryan Salame dropped his head as Judge Lewis A. Kaplan sentenced him
in a Manhattan courtroom Tuesday, May 28, 2024, eight months after
he reached a plea deal with federal prosecutors over the
multibillion dollar collapse of FTX.
About FTX Group
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9, 2022, struck a deal to
sell itself to its giant rival Binance, but Binance walked away
from the deal amid reports on FTX regarding mishandled customer
funds and alleged US agency investigations. Bankman-Fried agreed to
step aside, and restructuring vet John J. Ray III was quickly named
new CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
billion in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year.
According to Reuters, SBF shared a document with investors on Nov.
10, 2022, showing FTX had $13.86 billion in liabilities and $14.6
billion in assets. However, only $900 million of those assets were
liquid, leading to the cash crunch that ended with the company
filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims agent,
maintaining the page https://cases.ra.kroll.com/FTX/Home-Index
The Official Committee of Unsecured Creditors tapped Paul Hastings
as counsel, FTI Consulting, Inc., as financial advisor, and
Jefferies LLC as the investment banker. Young Conaway Stargatt &
Taylor LLP is the Committee's Delaware and conflicts counsel.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases.
White-collar crime specialist Mark S. Cohen has reportedly been
hired to represent SBF in litigation. Lawyers at Paul Weiss
previously represented SBF but later renounced representing the
entrepreneur due to a conflict of interest.
FULCRUM BIOENERGY: Company That Raised $1B in Danger of Collapse
----------------------------------------------------------------
Ben Elgin of Bloomberg News reports that Fulcrum BioEnergy, a
clean-fuels pioneer that raised more than $1 billion to turn
household waste into lower-emitting fuels for planes and trucks, is
in danger of going under.
The company recently laid off nearly all of its staff of about 100
and halted most of its operations, according to more than a
half-dozen former employees. It signals the apparent demise of a
company that garnered funding from a litany of industry giants --
including BP, United Airlines, Cathay Pacific and Japan Airlines --
and a setback in the push for a clean-fuels breakthrough to lower
emissions from the aviation industry.
About Fulcrum BioEnergy Inc.
Fulcrum Bioenergy Inc. operates as a clean energy company. The
Company converts household garbage into low-carbon transportation
fuels, including jet, diesel, and ethanol. Fulcrum Bioenergy serves
customers worldwide.
GABRIEL CUSTOM: Hires Law Offices of R. Keith Johnson as Counsel
----------------------------------------------------------------
Gabriel Custom Homes, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of North Carolina to employ Law
Offices of R. Keith Johnson, P.A. as counsel.
The firm will provide these services:
a. render legal advice with respect to its powers and duties
as debtor-in-possession in the continued operation of its business
and management of its property;
b. represent debtor in lawsuits now pending against debtor;
and
c. perform all other legal services for debtor-in-possession
which may be necessary herein.
The firm will be paid based upon its normal and usual hourly
billing rates. The firm will also be reimbursed for reasonable
out-of-pocket expenses incurred.
R. Keith Johnson, Esq., a partner at Law Offices of R. Keith
Johnson, P.A., 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:
R. Keith Johnson
Law Offices of R. Keith Johnson, P.A.
1275 S. NC Bus. Hwy.
Stanley, NC 28164
Tel: (704) 827-4200
About Gabriel Custom Homes
Gabriel Custom Homes, LLC sought protection for relief under
Chapter 11 of the Bankruptcy Code (Bankr. M.D.N.C. Case No.
23-50410) in June 23, 2023, with $100,001 to $500,000 in both
assets and liabilities.
Samantha K. Brumbaugh, Esq., at Ivey, Mcclellan, Siegmund,
Brumbaugh & Mcdonough, LLP, is the Debtor's counsel.
GCPS HOLDINGS: Involuntary Chapter 11 Case Summary
--------------------------------------------------
Alleged Debtor: GCPS Holdings, LLC
142 Wind Ridge Circle
The Woodlands TX 77381
Business Description: GCPS manufactures and distributes
industrial thermoplastic pipe, valves and
fittings as well as offers pipeline
construction, maintenance, integrity testing
and repair.
Involuntary Chapter
11 Petition Date: June 4, 2024
Court: United States Bankruptcy Court
Southern District of Texas
Case No.: 24-32646
Petitioners' Counsel: John E. Mitchell, Esq.
KATTEN MUCHIN ROSENMAN LLP
2121 North Pearl Street, Suite 1100
Dallas, TX 75201-2591
Tel: (469) 627-7017
Email: john.mitchell@katten.com
A full-text copy of the Involuntary Petition is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/LOEO6QA/GCPS_Holdings_LLC__txsbke-24-32646__0001.0.pdf?mcid=tGE4TAMA
Alleged creditors who signed the petition:
Petitioner Nature of Claim Claim Amount
Derrick Jones Secured Promissory Note $25,000
1717 Joyner Lane
Keller TX 76248
Mark R. Tawney Secured Promissory Note $25,000
533 West Bell Street
Houston, TX 77019
William A. Kutsche Secured Promissory Note $25,000
1608 Sandpiper Drive
Edmond OK 73034
GRAY TELEVISION: Closes Refinancing of $1.15-Bil. Term Loan
-----------------------------------------------------------
Gray Television, Inc. (NYSE: GTN) announced June 4, 2024, that it
has closed a refinancing of its $1.15 billion term loan due in 2026
and upsizing of its revolving credit facility.
The refinancing, among other things, provides a new $500 million
tranche F term loan with a maturity date of June 4, 2029, increased
aggregate commitments under the Company's existing $552.5 million
tranche of the revolving credit facility that matures on December
31, 2027 by $127.5 million, resulting in aggregate commitments
under the revolving credit facility of $680 million, and a
termination of the separate commitments under a $72.5 million
tranche of the revolving credit facility that matures on December
1, 2026.
With the completion of these refinancing efforts, Gray's next debt
maturity is expected to occur following the 2024 and 2026 political
cycles, when its 7.00% Senior Notes mature in May 2027. In
addition, in combination with the February 2024 upsizing and
extension of its revolver, Gray has now increased its total
capacity under, and extended, its revolver from $500 million with
varying maturity dates in 2026, to $680 million with a maturity
date of December 31, 2027.
Early Tender Results for 2026 Notes
Gray Television also announced June 4, 2024, the early tender
results of its offer to purchase for cash (the "Tender Offer") any
and all of its outstanding 5.875% Senior Notes due 2026.
According to information provided by D.F. King & Co., Inc., the
Information Agent and Tender Agent for the Tender Offer, as of
11:59 p.m., New York City time, on June 3, 2024 (such date and
time, the "Early Tender Date"), Gray had received valid and not
withdrawn tenders from registered holders of $690,032,000 aggregate
principal amount outstanding of the Notes.
Holders of the Notes who validly tendered and did not withdraw
their Notes prior to the Early Tender Date will receive the "Total
Consideration" for the Notes, which is $1,000 per $1,000 principal
amount of Notes tendered. The Total Consideration includes the
early tender premium for the Notes of $30.00 per $1,000 principal
amount of Notes tendered (the "Early Tender Premium"). In
addition, Holders whose Notes were accepted for purchase at or
prior to the Early Tender Date will also receive accrued and unpaid
interest.
The table sets forth the principal amount of the Notes outstanding,
the principal amount of Notes tendered at the Early Tender Date and
the aggregate amount of Notes accepted for purchase by Gray:
Principal Amount
Title of Security Principal Amount Tendered/Accepted
CUSIP Numbers Outstanding at Early Tender Date
------------- ----------- ---------------------
5.875% Sr. Notes due 2026
389375 AJ5
U42511 AE2 $700,000,000 $690,032,000
The Tender Offer is scheduled to expire at 11:59 p.m., New York
City time, on June 17, 2024 (the "Expiration Date"). Holders of
the Notes who validly tender their Notes after the Early Tender
Date but at or prior to the Expiration Date will be eligible to
receive the Total Consideration, less the Early Tender Premium.
Gray has retained Truist Securities, Inc., BofA Securities, Inc.
and Wells Fargo Securities, LLC to serve as Dealer Managers for the
Tender Offer. D.F. King & Co. has been retained to serve as the
Information Agent and Tender Agent for the Tender Offer. Questions
regarding the Tender Offer may be directed to Truist Securities,
Inc. at 3333 Peachtree Road, Atlanta, Georgia 30326, telephone
(404) 926-5262 (collect) Attn: Jim Gibbs. Requests for the Offer to
Purchase may be directed to D.F. King & Co. at (888) 887-0082
(toll-free) or (212) 269-
5550 (collect for banks and brokers), and at GTN@dfking.com.
About Gray Television
Gray Television, Inc., a television broadcast company, owns and
operates television stations and digital assets in the United
States. The company was formerly known as Gray Communications
Systems, Inc. and changed its name to Gray Television, Inc. in
August 2002. Gray Television, Inc. was founded in 1897 and is
headquartered in Atlanta, Georgia.
GREAT EASTERN: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Great Eastern Group, Inc.
6921 NW 13th Street
Fort Lauderdale, FL 33313
Chapter 11 Petition Date: June 4, 2024
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 24-15582
Judge: Hon. Scott M. Grossman
Debtor's Counsel: Brett Lieberman, Esq.
EDELBOIM LIEBERMAN PLLC
2875 NE 191st St.
Penthouse One
Miami, FL 33180
Tel: 305-768-9909
E-mail: brett@elrolaw.com
Total Assets: $1,587,987
Total Liabilities: $13,552,662
The petition was signed by Virginia J. Hoffman 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/TMEDNNI/Great_Eastern_Group_Inc__flsbke-24-15582__0001.0.pdf?mcid=tGE4TAMA
GREENWAVE TECHNOLOGY: Effects 1-for-150 Reverse Stock Split
-----------------------------------------------------------
Greenwave Technology Solutions, Inc. announced last week that it
intends to effect a reverse stock split of its common stock, par
value $0.001 per share at a ratio of 1 post-reverse split share for
every 150 pre-reverse split shares. The reverse stock split became
effective at 5:00 p.m. Eastern Standard Time on Friday, May 31,
2024. The Common Stock will continue to be traded on The Nasdaq
Capital Market under the symbol GWAV and began trading on a reverse
split-adjusted basis when the market opens on Monday, June 3, 2024.
The new CUSIP number of the Common Stock following the reverse
stock split will be 57630J 403. The reverse stock split is
intended to increase the per-share trading price of the Common
Stock to enable the Company to regain compliance with the minimum
bid price requirement for continued listing on The Nasdaq Capital
Market.
At the effective time of the reverse stock split, every 150 shares
of the Company's issued and outstanding Common Stock will be
converted automatically into one issued and outstanding share of
Common Stock without any change in the par value per share.
Stockholders holding their shares electronically in book-entry form
are not required to take any action to receive post-reverse split
shares. Stockholders owning shares through a bank, broker, or
other nominee will have their positions automatically adjusted to
reflect the reverse stock split, subject to brokers' particular
processes, and will not be required to take any action in
connection with the reverse stock split. For those stockholders
holding physical stock certificates, the Company's transfer agent,
Equity Stock Transfer, will send instructions for exchanging those
certificates for shares held electronically in book-entry form or
for new certificates, in either case representing the post-reverse
split number of shares.
The reverse stock split will affect all stockholders uniformly and
will not alter any stockholder's percentage interest in the
Company's equity, except to the extent that the reverse stock split
would result in a stockholder owning a fractional share. No
fractional shares will be issued in connection with the reverse
stock split. Any fractional interest in Common Stock will be
rounded up to the nearest whole share of Common Stock.
The reverse stock split will reduce the number of shares of Common
Stock outstanding from 1,132,490,847 shares, the number of shares
outstanding on May 31, 2024, to approximately 7,549,939 shares,
subject to adjustment for fractional shares. Proportional
adjustments will be made to the number of shares of Common Stock
issuable upon exercise or conversion of the Company's options and
warrants, as well as the applicable exercise price.
About Greenwave
Headquartered in Chesapeake, VA, Greenwave Technology Solutions,
Inc. -- https://www.greenwavetechnologysolutions.com -- is an
operator of 13 metal recycling facilities in Virginia, North
Carolina, and Ohio. The Company's recycling facilities collect,
classify, and process raw scrap metal (ferrous and nonferrous) and
implement several unique technologies to increase metal processing
volumes and operating efficiencies, including a downstream recovery
system and cloud-based ERP system.
New York, NY-based RBSM LLP, the Company's auditor since 2017,
issued a "going concern" qualification in its report dated April
16, 2024, citing that the Company has net loss, has generated
negative cash flows from operating activities, has an accumulated
deficit and has stated that substantial doubt exists about the
Company's ability to continue as a going concern.
GREENWAVE TECHNOLOGY: Eliminates Series D Preferred Stock
---------------------------------------------------------
Greenwave Technology Solutions, Inc. disclosed in a Form 8-K filed
with the Securities and Exchange Commission that on May 29, 2024,
the Company filed a Certificate of Elimination to its Second
Amended and Restated Certificate of Incorporation with the
Secretary of State of the State of Delaware eliminating from the
Charter all matters set forth in the Certificate of Designations,
Preferences and Rights with respect to its Series D Preferred
Stock.
About Greenwave
Headquartered in Chesapeake, VA, Greenwave Technology Solutions,
Inc. -- https://www.greenwavetechnologysolutions.com -- is an
operator of 13 metal recycling facilities in Virginia, North
Carolina, and Ohio. The Company's recycling facilities collect,
classify, and process raw scrap metal (ferrous and nonferrous) and
implement several unique technologies to increase metal processing
volumes and operating efficiencies, including a downstream recovery
system and cloud-based ERP system.
New York, NY-based RBSM LLP, the Company's auditor since 2017,
issued a "going concern" qualification in its report dated April
16, 2024, citing that the Company has net loss, has generated
negative cash flows from operating activities, has an accumulated
deficit and has stated that substantial doubt exists about the
Company's ability to continue as a going concern.
GREENWICH INVESTMENT: Files Emergency Bid to Use Cash Collateral
----------------------------------------------------------------
Greenwich Investment Management, Inc. asks the U.S. Bankruptcy
Court for the Middle District of Florida, Ft. Myers Division, for
authority to use cash collateral in accordance with the budget,
with a 10% variance, and provide adequate protection.
The Debtor requires the use of cash collateral to pay the Debtor's
regular operating expenses in the regular course of business, as
well as the administrative expenses in the Chapter 11 proceedings
as they become due.
JPMorgan Chase Bank, N.A. may have a lien on cash collateral
pursuant to a UCC1 Financing Statement statement initially filed by
on March 15, 2013, amended on February 2, 2018, on December 15,
2022 and finally on April 8, 2024.
The Debtor intends to provide Secured Creditors with replacement
liens to the same extent and validity as held by Secured Creditors
Pre-Petition and other terms as set forth in the proposed Interim
Order Authorizing Use of Cash Collateral.
A copy of the motion is available at https://urlcurt.com/u?l=2ieBM6
from PacerMonitor.com.
About Greenwich Investment Management
Greenwich Investment Management Inc. provides investment management
services. The Company manages portfolios of bonds and common
stocks, as well as offers financial planning and consulting
services. Greenwich Investment Management serves institutions,
taxable individuals, retired persons, financial executives,
corporate directors, and entrepreneurs in the United States.
Greenwich Investment Management Inc. sought relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. M.D> Fla. Case No. 24-00721)
on May 21, 2024. In the petition signed by L. George Rieger, as
president, the Debtor reports estimated assets up to $50,000 and
estimated liabilities between $100,000 and $500,000.
The Debtor is represented by Craig I Kelley, Esq. at Kelley Kaplan
& Eller, PLLC.
HAQUE MEDICAL: Unsecureds Will Get 100% of Claims in 36 Months
--------------------------------------------------------------
Haque Medical Properties, LLC, filed with the U.S. Bankruptcy Court
for the Middle District of North Carolina a Disclosure Statement
for Plan of Reorganization dated May 16, 2024.
The Debtor is a single asset real estate case. The Debtor was
created on February 17, 2021 in order to purchase a medical
building located at 1380 Eastchester Dr., High Point, NC. (the
"Real Property").
The Real Property is currently leased to Horizon Internal Medicine
pursuant to a written lease agreement whereby Horizon pays Debtor
$10,000.00 per month for rent. Horizon has agreed to increase the
rental payment to $12,500.00 per month during the term of the
Plan.
Dr. Haque, the sole owner of the Debtor, is also the sole
member-manager of Horizon which operates a medical practice from
the Real Property. Haque Medical also leases space to Koher Medical
for $5,518.29 per month. Koher Medical is owned by Dr. Grant Koher
and is not related to the Debtor.
During this Chapter 11, Haque Medical has collected rent and
payment from its tenants Horizon and Koher Medical. The Debtor has
made consensual adequate protection payments of $8,900.00 per month
to First Citizens beginning in February of 2024.
General unsecured creditors are classified in Class VII and will
receive a distribution of no less than 100% of their allowed
claims, to be paid within 36 months from the effective date.
Class VII consists of General Unsecured Creditors. The Allowed
General Unsecured Claims shall be paid in full in 12 quarterly Cash
payments with the first payment beginning date on or before the
15th day of the first full month following the effective date of
the Plan and on the 15th day of every third month thereafter,,
together with interest at 9% per annum, such that the full amount
of each Allowed Class VII is paid in full within 3 years from the
petition date. This Class is impaired.
The Class VIII Insider Claims shall be subordinated to all other
Claims in this proceeding and no payment on Insider Claims shall be
received, if at all, until all payments on the Claims of Class I
through Class VII are paid in full or received as dividends. This
Class is impaired.
The Debtor anticipates, based upon projected rental income and
resulting cash flow and the restructuring of current indebtedness,
that the Reorganized Debtor will have sufficient funds to pay debt
obligations pursuant to the terms specified in this Plan. Horizon
has consented to raise its rental amount to $12,500.00 per month
commencing in June 2024.
In addition, Dr. Haque shall make a capital infusion of $30,000.00
on or before June 30, 2024 and said funds are to be used to
supplement funds received from cash to make Plan payments owed the
first 24 months.
A full-text copy of the Disclosure Statement dated May 16, 2024 is
available at https://urlcurt.com/u?l=qldJbb from PacerMonitor.com
at no charge.
Attorney for the Debtor:
Dirk W. Siegmund, Esq.
IVEY, MCCLELLAN, GATTON & SIEGMUND, LLP
100 South Elm Street, Suite 500
Greensboro, NC 27401
Tel: (336) 274-4658
Fax: (336) 274-4540
Email: dws@iveymcclellan.com
About Haque Medical Properties
Haque Medical Properties, LLC was created on February 17, 2021 in
order to purchase a medical building located at 1380 Eastchester
Dr., High Point, NC. Haque Medical is solely owned by Dr. Imran
Haque. On February 2, 2021 the building was purchased and leases
office space to Horizon Interna Medicine and Koher Medical.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. N.C. Case No. 24-10022) on January 17,
2024. In the petition signed by Imran Haque, member/manager, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Benjamin A. Kahn oversees the case.
Dirk W. Siegmund, Esq., at Ivey, McClellan, Siegmund, Brumbaugh &
McDonough, LLP, represents the Debtor as legal counsel.
HERC HOLDINGS: Moody's Rates New $500MM Sr. Unsecured Notes 'Ba3'
-----------------------------------------------------------------
Moody's Ratings assigned a Ba3 rating to Herc Holdings Inc.'s
proposed offering of $500 million of senior unsecured notes. The
company's other ratings, including its Ba2 corporate family rating,
Ba2-PD probability of default rating, and Ba3 senior unsecured debt
ratings are unaffected. The outlook is stable. Herc's speculative
grade liquidity rating remains unchanged at SGL-2.
Herc will use the proceeds from the notes offering to repay $500
million of outstanding ABL borrowings. Pro forma for the repayment,
borrowings are expected to be $1,673 million of the $3,500 million
ABL facility.
RATINGS RATIONALE
Herc is one of the largest equipment rental companies in terms of
revenue in the highly fragmented North American market and has a
$6.3 billion fleet of rental equipment (at original equipment
cost). The company benefits from healthy end-market and customer
diversification. Herc also has moderate debt-to-EBITDA that Moody's
expects will remain around 3.0 times over the next 12-18 months.
However, Herc has high exposure to cyclical end markets, most
notably construction, infrastructure and oil and gas, increasing
the potential for volatility in revenue growth and profitability.
The company also needs to continue to invest and grow its rental
equipment fleet to remain competitive and increase scale. Moody's
expects the company to have negative free cash flow of more than
$250 million in 2024 from high growth capex.
The stable outlook reflects Moody's expectation that Herc will grow
revenue and profitability while debt-to-EBITDA will remain flat at
around 3.0 times.
The SGL-2 speculative grade liquidity rating reflects Moody's
expectation Herc will maintain good liquidity. Liquidity is
supported by pro forma availability of $1.80 billion on the $3.5
billion ABL facility expiring in July 2027. Pro forma for the
transaction the ABL will have approximately $1.7 billion of
borrowings and $27.0 million of standby letters of credit
outstanding at March 31, 2024. In addition, pro forma for the
transaction Herc will have $63.0 million of cash.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
The ratings could be upgraded if Herc is able to increase its size
and scale, debt-to-EBITDA is sustained around 2.0 times and EBITDA
margin is sustained above 50%. Moody's would also expect the
company to reduce its ABL reliance to fund its growth initiatives.
The ratings could be downgraded if Herc's debt-to-EBITDA is
sustained above 3.0 times, EBITDA margin declines below 45%, or the
company engages in debt funded acquisitions that significantly
alter the company's strategy or capital structure. Also, if there
is a meaningful deterioration in liquidity the ratings could be
downgraded.
The principal methodology used in this rating was Equipment and
Transportation Rental published in February 2022.
Headquartered in Bonita Springs, Florida, Herc Holdings Inc. is the
parent company of Herc Rentals Inc. ("Herc" NYSE: HRI). Herc is an
equipment rental company with 412 branches spanning 42 states and
five provinces in North America. Herc's basic fleet includes aerial
work platforms, earthmoving and material handling equipment, trucks
and trailers, air compressors, compaction and lighting. Herc's
specialty fleet includes its ProContractor professional grade tools
and ProSolutions offerings, which consists of power generation,
climate control, remediation and restoration, and studio and
production equipment.
HERC HOLDINGS: S&P Rates New $500MM Senior Unsecured Notes 'BB-'
----------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' issue-level rating and '5'
recovery rating to HERC Holdings Inc.'s proposed $500 million
senior unsecured notes due 2029. The company plans to use the net
proceeds to pay down a portion of outstanding borrowings under its
asset-based lending (ABL) facility (not rated). S&P views the
transaction as neutral for leverage.
S&P said, "All our ratings, including our 'BB-' issue-level rating
and '5' recovery rating on the company's existing $1.2 billion
senior unsecured notes due 2027, are unchanged.
"Herc continues to demonstrate solid operating performance with its
revenues growing 8.6% in the first quarter of 2024 (period ended
March 31, 2024) on increased year-over-year rental rates and volume
growth. While we anticipate a decline in sales of its used
equipment from record levels last year, we expect rental revenues
will continue growing over the next 12 months as rental rates
continue to increase with inflation, construction and industrial
activity expands, and the company grows its fleet through organic
and inorganic investments.
"In addition, we believe the U.S. equipment rental industry is
poised for growth over the next couple of years as large, multiyear
investments in domestic infrastructure, manufacturing, and energy
transition projects will support equipment rental demand. Larger
industry players, such as Herc, will likely benefit from their
ability to win large projects, particularly those associated with
its large national accounts, that require a sizable and diverse
fleet."
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- Herc operates in the competitive and cyclical equipment rental
market, predominantly in the U.S. S&P's simulated default
contemplates an unexpected and drastic downturn in the construction
and industrial markets that severely strains equipment usage,
rental rates, revenue, and cash flow.
-- S&P said, "Although we believe Herc would reorganize after a
default, we use a discrete asset value (DAV) approach to analyze
the recovery prospects for general equipment rental providers. This
method provides a conservative estimate of the likely value
available to creditors, though realization rates could be lower
than we assume if a large quantity of equipment floods the
market."
-- S&P's DAV approach starts with Herc's net book values as of
March 31, 2024. S&P also assumes that Herc will use the net
proceeds from the Cinelease sale to reduce the outstanding amounts
under the ABL facility.
-- S&P said, "We assume balance sheet accounts are partially
diluted to reflect the assumed loss of appraised value through
additional depreciation or expected contraction in working capital
assets in the period leading up to the hypothetical default. We
then apply realization rates to the assets, reflecting the friction
of selling or the discounts potential buyers or restructurers would
apply in distressed circumstances."
-- S&P applies realization rates of 75% for rental equipment, 50%
for other property and nonrental equipment, 65% for inventory, and
80% for unsold accounts receivable (S&P excludes the assets and
liabilities related to Herc's accounts receivable special-purpose
entity).
Simulated default assumptions
-- Simulated year of default: 2029
-- Jurisdiction: U.S.
-- Valuation split (obligors/nonobligors): 91%/9%
ABL facility: 60% drawn at default. S&P assumes Herc uses a
significant portion of the incremental draw to purchase rental
equipment.
Simplified waterfall
-- Gross enterprise value: $2.62 billion
-- Net enterprise value (after 5% administrative expenses): $2.49
billion
-- First-lien (ABL) debt claims: $2.11 billion
--Recovery expectations: Not applicable
-- Value available to unsecured claims: $377 million
-- Unsecured debt claims: $1.75 billion
--Recovery expectations: 10%-30% (rounded estimate: 20%)
Note: All debt amounts include six months of prepetition interest.
HIBBLER HOLDINGS: Craig Geno Named Subchapter V Trustee
-------------------------------------------------------
The Acting U.S. Trustee for Region 8 appointed Craig Geno, Esq., at
the Law Offices of Craig M. Geno, PLLC as Subchapter V trustee for
Hibbler Holdings, LLC.
Mr. Geno will be paid an hourly fee of $250 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Geno declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Craig M. Geno, Esq.
Law Offices of Craig M. Geno, PLLC
587 Highland Colony Parkway
Ridgeland, MS 39157
Telephone: (601) 427-0048
Facsimile: (601) 427-0050
Email: cmgeno@cmgenolaw.com
About Hibbler Holdings
Hibbler Holdings, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. Tenn. Case No. 24-23305) on May
15, 2024, with $100,001 to $500,000 in assets and $50,001 to
$100,000 in liabilities.
Judge Denise E. Barnett presides over the case.
Steven N. Douglass, Esq., at Harris Shelton Hanover & Walsh, PLLC
represents the Debtor as legal counsel.
IGLESIA DE DIOS: Hires Montero Law Group LLC as Counsel
-------------------------------------------------------
Iglesia De Dios Pentecostes, Mision El Buen Samaritano seeks
approval from the U.S. Bankruptcy Court for the District of
Maryland to employ Montero Law Group, LLC as counsel.
The firm's services include:
a. providing legal advice and counsel with respect to the
duties, obligations, powers, and rights of a debtor and
debtor-in-possession;
b. preparing and filing of the required schedules, statements,
and reports, and any plan of reorganization, and any amendments
thereto;
c. performing such services necessary and appropriate to
preserve and protect the assets of the estate; and
d. assisting the Debtor by performing such other and further
services necessary and appropriate to achieve the reorganization of
the Debtor pursuant to the applicable statutes, rules, and
procedures.
The firm will be paid at these rates:
Attorneys $450 per hour
Paralegals $150 per hour
The firm will be paid a retainer in the amount of $40,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Michael A. Ostroff, Esq., a partner at Montero Law Group, LLC,
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:
Michael A. Ostroff, Esq.
Montero Law Group, LLC
1738 Elton Road, Suite 105
Silver Spring, MD 20903
Telephone: (301) 588-8100
Facsimile: (301) 588-8101
Email: mostroff@monterolawgroup.com
About Iglesia de Dios Pentecostes
Iglesia de Dios Pentecostes is a pentecostal church in College
Park, Maryland.
Iglesia de Dios Pentecostes, Mision el Buen Samaritano filed its
voluntary petition for relief under Chapter 11 of the Bankruptcy
Code (Bankr. D. Md. Case No. 24-14088) on May 13, 2024. The
petition was signed by Juan M. Flores as pastor/president. At the
time of filing, the Debtor estimated $5,829,100 in assets and
$3,569,268 in liabilities.
Michael A. Ostroff, Esq. at Montero Law Group, LLC represents the
Debtor as counsel.
IN FLOWERS: Nicole Nigrelli Named Subchapter V Trustee
------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Nicole Nigrelli,
Esq., at Ciardi, Ciardi & Astin as Subchapter V trustee for In
Flowers Garden, Inc.
Ms. Nigrelli will be paid an hourly fee of $450 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Nigrelli declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Nicole M. Nigrelli, Esq.
Ciardi, Ciardi & Astin
1905 Spruce Street
Philadelphia, PA 19103
Phone: (215) 557-3550 ext. 115
Email: nnigrelli@ciardilaw.com
About In Flowers Garden
In Flowers Garden, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 24-14883) on May 13,
2024, with as much as $50,000 in both assets and liabilities.
Scott J. Goldstein, Esq., at the Law Offices of Wenarsky And
Goldstein, LLC represents the Debtor as legal counsel.
JAIRRABRANDY REALTY: Taps Hemant Bhupsingh as Real Estate Broker
----------------------------------------------------------------
Jairrabrandy Realty Enterprises LLC seeks approval from the U.S.
Bankruptcy Court for the Eastern District of New York to hire
Hemant Bhupsingh as its real estate broker.
The broker will market and facilitate the sale or rental of
Debtor's property located at 9304/10 Avenue L Brooklyn NY 11236.
The broker's compensation in the event of a sale is 4 percent of
the sale price.
The broker does not hold or represent an interest adverse to the
estate and does not have any connections with the Debtor,
creditors, any other party in interest in this case, according to
court filings.
The firm can be reached through:
Aram Bhupsingh
Hemant Bhupsingh
97-24 121st St
Richmond Hill, NY
About Jairrabrandy Realty Enterprises
Jairrabrandy Realty is a Single Asset Real Estate debtor (as
defined in 11 U.S.C. Section 101(51B)).
Jairrabrandy Realty Enterprises LLC filed its voluntary petition
for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y.
Case No. 24-41537) on April 11, 2024, listing $1 million to $10
million in both assets and liabilities. The petition was signed by
Angaad Sooknandan as sole member.
Judge Nancy Hershey Lord presides over the case.
Vivian M. Williams, Esq. at VMW LAW PC represents the Debtor as
counsel.
JINGBO TECHNOLOGY: Delays Filing of FY 2023 Annual Report
---------------------------------------------------------
Jingbo Technology, Inc. disclosed in a Form 12b-25 filed with the
Securities and Exchange Commission it is unable to file its Annual
Report on Form 10-K for its year ended Feb. 29, 2024 by the
prescribed date without unreasonable effort or expense because the
Company was unable to compile certain information required in order
to permit the Company to file a timely and accurate report on the
Company's financial condition. The Company believes that the
Annual Report will be completed within the fifteenth-day extension
period provided under Rule 12b-25 of the Securities Exchange Act of
1934.
About Jingbo Technology
Jingbo Technology, Inc. (formerly known as Savmobi Technology,
Inc.) provides software solutions. The Company designs and builds
an online marketing platform for users to manage and monitor
promotions.
Singapore-based Pan-China Singapore PAC, the Company's auditor
since 2023, issued a "going concern" qualification in its report
dated Oct. 2, 2023, citing that the Company had incurred
substantial losses during the year, and has a working capital
deficit, which raises substantial doubt about its ability to
continue as a going concern.
JUN ENTERPRISE: Hires Law Firm of Gamberg & Abrams as Counsel
-------------------------------------------------------------
Jun Enterprise LLC d/b/a Ruby's Academy For Health Occupations
seeks approval from the U.S. Bankruptcy Court for the Southern
District of Florida to employ Law Firm of Gamberg & Abrams as
counsel.
The firm will provide these services:
a. advise the Debtor with respect to their powers and duties
as debtor and debtor-in-possession in the continued management and
operation of his business and properties;
b. attend meetings and negotiate with representatives of
creditors and other parties-in-interest and advise and consult on
the conduct of the cases;
c. advise the Debtor on matters relating to the evaluation of
the assumption, rejection or assignment of unexpired leases and
executory contracts;
d. provide advice to the Debtor with respect to legal issues
arising in or relating to the Debtor's ordinary course of
business;
e. take all necessary action to protect and preserve the
Debtor's estates;
f. prepare on behalf of the Debtor all motions, applications,
answers, orders, reports and papers necessary to the administration
of the estates;
g. negotiate and prepare on the Debtor's behalf a plan of
reorganization, disclosure statement and all related agreements
and/or documents, and take any necessary action on behalf of the
Debtor to obtain confirmation of such plan;
h. attend meetings with third parties and participate in
negotiations with respect to the above matters;
i. appear before this Court, any appellate courts, and the U.S.
Trustee, and protect the interests of the Debtor estate before such
courts and the U.S. Trustee; and
j. perform all other necessary legal services and provide all
other necessary legal advice to the Debtors in connection with
these Chapter 11 cases.
The firm will be paid at these rates:
Thomas L. Abrams $500 per hour
Jared L. Gamberg $450 per hour
The firm will be paid a retainer in the amount of $15,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Thomas L. Abrams, Esq., a partner at Law Firm of Gamberg & Abrams,
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:
Thomas L. Abrams, Esq.
Law Firm of Gamberg & Abrams
1213 S.E. Third Avenue, Second Floor,
Fort Lauderdale, FL 33316
Tel: (954) 523-0900
Fax: (954) 915-9016
Email: tabrams@tabramslaw.com
About Jun Enterprise LLC
d/b/a Ruby's Academy For Health Occupations
Jun Enterprise LLC operates a nursing school. The Debtor sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
S.D. Fla. Case No. 24-14748-PDR) on May 15, 2024. In the petition
signed by Carolyn Sutton, president/owner, the Debtor disclosed up
to $1 million in assets and up to $10 million in liabilities.
Thomas L. Abrams, Esq., at Thomas L Abrams PA, represents the
Debtor as legal counsel.
KIDKRAFT INC: Hires Robert W. Baird & Co. as Investment Banker
--------------------------------------------------------------
KidKraft, Inc. and its affiliates seek approval from the U.S.
Bankruptcy Court for the Northern District of Texas to hire Robert
W. Baird & Co. Incorporated as investment banker.
The firm will render these services:
(a) General Financial Advisory Services. Baird will:
i. to the extent it deems necessary, appropriate and
feasible, familiarize itself with the business, operations,
properties, financial condition and prospects of the Company; and
ii. if the Company determines to undertake a Transaction,
advise and assist the Company in structuring and effecting the
financial aspects of such a Transaction or Transactions, subject to
the terms and conditions of this Agreement.
(b) Restructuring Services. If the Company pursues a
Restructuring, Baird will, if requested by the Company:
i. provide financial advice and assistance to the Company in
developing and seeking approval of any Restructuring, which may be
a plan under Bankruptcy Code;
ii. provide financial advice and assistance to the Company in
structuring any new securities to be issued under any
Restructuring;
iii. advise and assist the Company in negotiations with
entities or groups affected by any Restructuring; and
iv. participate in hearings before the Court with respect to
the matters upon which Baird has provided advice, including, as
relevant, coordinating with the Company's counsel with respect to
testimony in connection therewith.
(c) Sale Services. If the Company pursues a Sale, Baird will, if
requested by the Company:
i. provide financial advice and assistance to the Company in
connection with a Sale, including, without limitation, identifying
potential acquirers and, at the Company's request, contacting such
potential acquirers;
ii. assist the Company in preparing a confidential
information memorandum to be used in soliciting potential
acquirers;
iii. advise and assist the Company in negotiations with
potential acquirers; and
iv. provide other services customary for an engagement of
this type.
(d) Financing Services. If the Company pursues a Financing,
Baird will, if requested by the Company:
i. provide financial advice and assistance to the Company in
structuring a Financing, including, without limitation, identifying
potential Financing providers and, at the Company's request,
contacting such counterparties;
ii. if Baird and the Company deem it advisable, assist the
Company in developing and preparing a confidential information
memorandum to be used in soliciting potential Financing
counterparties; and
iii. advise and assist the Company in negotiations with
potential Financing counterparties.
The firm will be paid as follows:
(a) Monthly Fees. A monthly advisory fee (the "Monthly
Advisory Fee") equal to $75,000 per month until the termination of
Baird's engagement. The first Monthly Advisory Fee shall be payable
as of the date of the Engagement Letter, and each subsequent
Monthly Advisory Fee shall be payable in advance on each monthly
anniversary thereafter. After the payment of six full Monthly
Advisory Fees to Baird (inclusive of Monthly Advisory Fees paid
under the Prior Engagement Letter), 50 percent of all Monthly
Advisory Fees actually paid to Baird thereafter shall be credited
once, without duplication, against any Transaction Fee or Financing
Fee subsequently payable to Baird under the Engagement Letter;
provided, that, in the event of a filing under chapter 11 of the
Bankruptcy Code, such credit shall only apply if all of the fees
provided for hereunder are approved in their entirety by the
Bankruptcy Court.
(b) Transaction Fee. Upon consummation of a Sale or a
Restructuring, a fee (the "Transaction Fee") equal to the sum of
(i) $1,750,000 and (ii) 5.0 percent of any Aggregate Consideration
of such Sale in excess of $50,000,000, less (iii) that certain
Upfront Payment paid prior to the commencement of these chapter 11
cases. For the avoidance of doubt, only one Transaction Fee may be
earned by Baird pursuant to the Engagement Letter.
(c) Financing Fee. Upon consummation of a Financing, a fee
equal to the total gross proceeds provided for in any Financing
(including all amounts raised and/or committed whether or not drawn
or used), multiplied by the following:
i. 1.5 percent with respect to any senior secured Bank
Debt and/or senior secured Debt Securities,
ii. 3.0 percent with respect to any junior secured,
unsecured or any other Bank Debt and/or Debt Securities not covered
by (i) above, and
iii. 5.0 percent with respect to any Equity Securities
(collectively, the "Financing Fee").
For the avoidance of doubt, any (i) gross proceeds funded by
MidOcean Partners IV, L.P. or any of its affiliated investment
funds or the Company's current or former administrative agent or
secured lenders or their respective affiliates (including, in each
case, all amounts committed whether or not drawn or used) in any
Financing or (ii) take-back debt or exit financing funded by the
Company's administrative agent or secured lenders or their
respective affiliates, as contemplated by the proposed
restructuring support agreement shall not be subject to the
foregoing fees outlined in the Engagement Letter.
(d) Expenses. In addition to any fees or other compensation
that may be paid to Baird under the Engagement Letter, whether or
not any Transaction occurs, the Company shall reimburse Baird,
promptly upon receipt of an invoice therefor, for all (a)
reasonable and documented out-of-pocket expenses (including,
without limitation, travel and lodging, meals, printing, data
processing, research, database and similar information charges paid
to third party vendors, telephone and facsimile charges, courier
services and other reasonable and customary out-of-pocket
expenditures), provided, however, that such expenses shall not
exceed $50,000 without the prior written consent of the Company,
and (b) (i) reasonable and documented out-ofpocket fees and
expenses of one counsel retained by Baird (ii) the reasonable and
documented fees and expenses of any other consultants or
independent experts retained by Baird with the Company's consent
(which shall not be unreasonably withheld or delayed).
Ajay Bijoor, managing director at Baird, assured the court that the
firm is a "disinterested person" within the meaning of 11 U.S.C.
101(14).
The firm can be reached through:
Ajay Bijoor
Robert W. Baird & Co. Incorporated
777 East Wisconsin Avenue
Milwaukee, WI 53202
Phone: (646) 557-2733
Email: abijoor@rwbaird.com
About KidKraft
KidKraft, Inc. manufactures and sells wooden toys and furniture.
The Company offers easels, puzzles, dollhouses, tables, chairs, and
toddler beds.
KidKraft, Inc. filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (N.D. Tex. Case No. Bankr.
24-80045) on May 10, 2024, listing $100,000,001 to $500 million in
both assets and liabilities.
Judge Michelle V Larson presides over the case.
Matthew David Struble, Esq. at Vinson & Elkins represents the
Debtor as counsel.
KJB HOLDINGS: Hires Mark J. Lazzo P.A. as Legal Counsel
-------------------------------------------------------
KJB Holdings LLC seeks approval from the U.S. Bankruptcy Court for
the District of Kansas to employ Mark J. Lazzo, P.A. as counsel.
The firm will assist the Debtor in preparing and presenting to the
Court schedules, a Plan, review of claims, negotiation with
creditors; arranging and negotiating sales, and filing of adversary
actions.
The firm will be paid at these rates:
Mark J. Lazzo $350 per hour
Justin T. Balbierz $300 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Mark J. Lazzo, a partner at Mark J. Lazzo, P.A., 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:
Mark J. Lazzo, Esq.
Mark J. Lazzo, P.A.
3500 N. Rock Road
Bldg. 300, Suite B
Wichita, KS 67226
Tel: (316) 263-6895
Email: mark@lazzolaw.com
About KJB Holdings LLC
KJB Holdings LLC in Newton, KS, filed its voluntary petition for
Chapter 11 protection (Bankr. D. Kan. Case No. 24-10414) on May 15,
2024, listing $283,000 in assets and $1,152,672 in liabilities.
Brandon Wilson as owner, signed the petition.
MARK J. LAZZO PA serve as the Debtor's legal counsel.
KULR TECHNOLOGY: SEPA Facility With Yorkville Expires
-----------------------------------------------------
KULR Technology Group, Inc. announced that it will not be extending
its Standby Equity Purchase Agreement ("SEPA"), with YA II PN, LTD.
("Yorkville"), which terminated on June 1, 2024. Furthermore, the
Company confirms that it has retired all outstanding debt owed to
Yorkville.
According to the Company, this marks a significant milestone for
KULR as it executes its strategic initiatives, reduces its cash
consumption, and otherwise strengthens its financial condition.
Compliance with NYSE Guidelines on Audit Opinion
As previously disclosed in the Company's Annual Report on Form 10-K
for the year ended Dec. 31, 2023, which was filed on April 12,
2024, with the Securities and Exchange Commission, the audited
financial statements contained an unqualified audit opinion from
its independent registered public accounting firm that included an
explanatory paragraph related to the Company's ability to continue
as a going concern. This announcement is being made solely to
comply with the NYSE American LLC Company Guide Section 610(b),
which requires public announcement of the receipt of an audit
opinion containing a going concern paragraph. This announcement
does not represent any change or amendment to the Company's audited
financial statements or to its Annual Report on Form 10-K for the
year ended Dec. 31, 2023.
Stronger Balance Sheet
KULR's management believes the Company's balance sheet improvement
efforts are proving successful. Chief Financial Officer, Shawn
Canter, commented, "Having repaid the SEPA prepaid advance in
March, recent meaningful reductions in short-term debt and trade
debt, and anticipated repayment of the outstanding merchant
advances in the next several months, KULR's balance sheet is
stronger than it has been in some time."
Canter further noted KULR's efforts to reduce cash consumption from
operations. "KULR has made a concerted effort to reduce its cash
used from operations as part of progressing toward a stronger
balance sheet. Our CEO, Michael Mo, has even taken a salary
reduction in exchange for equity as evidence of his faith in the
Company's strategy and progress."
About KULR Technology Group
KULR Technology Group Inc. (NYSE American: KULR) is an energy
management platform company offering proven solutions that play a
critical role in accelerating the electrification of the circular
economy. Leveraging a foundation in developing, manufacturing, and
licensing next-generation carbon fiber thermal management
technologies for batteries and electronic systems, KULR has evolved
its holistic suite of products and services to enable its customers
across disciplines to operate with efficiency and sustainability in
mind. For more information, please visit www.kulrtechnology.com.
Los Angeles, CA-based Marcum LLP the Company's auditor since 2018,
issued a "going concern" qualification in its report dated April
12, 2024, citing that the Company has a working capital deficit,
has incurred losses from operations, and needs to raise additional
funds to meet its obligations and sustain its operations. These
conditions raise substantial doubt about the Company's ability to
continue as a going concern.
LGID NY: Files Amendment to Disclosure Statement
------------------------------------------------
Lgid NY LLC, submitted a Disclosure Statement for Plan of
Reorganization, as Modified, dated May 16, 2024.
The Debtor worked diligently towards securing the necessary funds
to close on the sale of the Properties but was having difficulty
finding lenders who would finance a sale of this nature when the
purchaser is a debtor in a Chapter 11 case. Therefore, the Debtor
turned its focus towards obtaining debtor in possession financing
as the means to fund its purchase of the Properties.
On or around May 5, 2023, Legalist, Inc. sent the Debtor a term
sheet for a loan, in the amount of $4,000,000 (the "DIP
Financing"), which the Debtor intended to use to fund the purchase
of the Properties (the "Term Sheet"). The specific terms of the DIP
Financing were more fully set forth in a debtor in possession term
credit agreement.
The maturity date of the Legalist loan is May 15, 2024, but the
Debtor and Legalist have agreed to extend the Maturity Date to June
30, 2024 in exchange for paying an extension fee in the amount of
$71,341.64, which shall be due and payable on June 30, 2024. To
fund the payment of the Allowed Legalist Secured Claim, the Debtor
intends to sell the 405 Property and a portion of the 413, 417, 419
and 425 Properties. As part of its source of funding under its
contemplated plan, the Debtor will also be obtaining exit financing
to be secured by the unsold portion of the 413, 417, 419 and 425
Properties. The Exit Financing will also be used to fund the
Unsecured Creditors Fund, pay Allowed unsecured priority tax claims
and Allowed Administrative Expenses and the payment of the Legalist
Secured Claim which has not been satisfied by the sale of the
Properties.
Simultaneously with the filing of this Disclosure Statement, the
Debtor filed a motion to approve: the private sale of the 405
Property and the private sale of a portion of the 413, 417, 419 and
425 Properties.
Like in the prior iteration of the Plan, on the Effective Date the
holder of Allowed General Unsecured Claims in Class 3 shall receive
a prorata payment from the Unsecured Fund.
Payments under the Plan will be paid from either the Sale Proceeds,
the Exit Financing, and any Cash of the Debtor. Except as set forth
elsewhere in the Plan, all distributions to be made on the
Effective Date shall be transferred to the escrow account of the
Disbursing Agent at the closing of the Sale Transaction.
The Debtor believes that the Plan is feasible based upon the fact
that the means of implementation of the Plan is the Private Sale
and Purchaser has a loan commitment to fund the Plan.
A full-text copy of the Modified Disclosure Statement dated May 16,
2024 is available at https://urlcurt.com/u?l=DAGTWo from
PacerMonitor.com at no charge.
Counsel for the Debtor:
Joel Shafferman, Esq.
SHAFFERMAN & FELDMAN LLP
137 Fifth Avenue, 9th Floor
New York, NY 10010
Tel: (212) 509-1802
About LGID NY
LGID NY, LLC, a company in Brooklyn, N.Y., filed its voluntary
petition for Chapter 11 protection (Bankr. E.D.N.Y. Case No.
22-43171) on Dec. 21, 2022, with $1 million to $10 million in
assets and $500,000 to $1 million in liabilities.
Judge Elizabeth S. Stong oversees the case.
The Debtor tapped Joel M. Shafferman, Esq., at Shafferman &
Feldman, LLP as legal counsel and the Law Office of Charles S.
Silver as special real estate counsel.
LOCUS DIGITAL: Court OKs Cash Collateral Access on Final Basis
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Texas,
Sherman Division, authorized Locus Digital LLC, to use the cash
collateral of On Deck Capital, on a final basis, in accordance with
the budget.
As adequate protection, On Deck is granted replacement liens in
accounts receivables and accounts as adequate protection pursuant
to 11 U.S.C. Sections 361(2) and 552 to the extent of any
diminution in value of On Deck's interest in such cash collateral
as a result of the Debtor's use thereof, in accordance with
existing priority.
The On Deck Replacement Liens are in the same amount, extent,
validity and priority as those liens existing pre-petition and that
no filing, recording, or other acts in accordance with any
applicable local, state, or federal law, rule, or regulation are
necessary to perfect the On Deck Replacement Liens.
Additional adequate protection will be extended to On Deck in in
the form of an adequate protection payment the amount of $3,500 per
month, commencing on May 15, 2024 and continuing monthly payments
of the same amount on the 15th of all subsequent months until such
time and the Debtor confirms a plan, the case is dismissed or
converted or a future order from the court.
A copy of the order is available at https://urlcurt.com/u?l=BJ2LPU
from PacerMonitor.com.
About Locus Digital, LLC
Locus Digital, LLC, filed a Chapter 11 bankruptcy petition (Bankr.
E.D. Tex. Case No. 24-40998) on April 30, 2024, disclosing under $1
million in both assets and liabilities.
Judge Brenda T. Rhoades oversees the case.
The Debtor is represented by QUILLING, SELANDER, LOWNDS, WINSLETT &
MOSER, P.C.
LSF11 A5 HOLDCO: Moody's Affirms 'B2' CFR, Outlook Remains Stable
-----------------------------------------------------------------
Moody's Ratings affirmed LSF11 A5 HoldCo LLC's (dba AOC) B2
Corporate Family Rating and B2-PD Probability of Default Rating.
Moody's also affirmed the B1 rating on the senior secured first
lien revolving credit facility, the existing senior secured first
lien term loan as well as Caa1 rating on the senior unsecured notes
due 2029. The outlook remains stable. The B1 rating of the
incremental senior secured first lien term loan with face amount of
$800 million will be withdrawn upon the completion of its repricing
and merging into the existing senior secured first lien term loan.
RATINGS RATIONALE
AOC's credit profile reflects the company's strong industry
positions with a top-3 position in the highly consolidated
unsaturated polyester resin (UPR) and vinyl ester resin (VER)
markets. The company has well-balanced end market diversity, with
significant exposure to the growth in a broad range of CASE
(coatings, adhesives, sealants and elastomers) and Colorants
applications. Its customized products for special applications and
the asset light business model support healthy margins and generate
attractive free cash flows. Furthermore, AOC's credit metrics
remain supportive of its rating.
AOC's credit profile is constrained by its limited product
diversity focusing on unsaturated polyester resins (UPR) and vinyl
ester resins (VER). The rating is further tempered by its exposure
to some cyclical downstream sectors such as infrastructure,
construction, and transportation as well as its exposure to raw
material price volatility. Moody's consider the risks related to
its private equity ownership and the resultant aggressive financial
policy as limiting factors to the rating.
AOC's business performance remained stable in 2023 although its
leverage increased noticeably driven by its large debt-funded
dividend payment during the year. The company generated total
revenue of $1,496 million in 2023, down by 16% YOY from that of
2022 due to weak demand from some of its downstream markets
including construction, infrastructure and transportation. However
its Moody's adjusted EBITDA remained relatively stable at $522
million, supported by its higher margins due to the successful
execution of its commercial strategy and procurement efficiencies.
AOC raised a total of $800 million senior secured term loan in
2023, together with its solid incoming operating cash flows, to
fund its $1.1 billion dividend payment. Despite the stable
earnings, AOC's leverage increased to 4.3x in 2023, driven entirely
by the debt increase.
Moody's expect AOC's financial performance will be modestly weaker
in 2024 from the 2023 level, reflecting the uncertain macroeconomic
conditions negatively impacting demand from most of its end
markets. In Moody's projection, Moody's assume AOC's revenue and
EBITDA will fall by 5 to 10% YOY in 2024 led by lower sales
volumes, while it may have limited room for further margin increase
after the large margin expansion realized in 2023. Under such
scenario, AOC will still be able to generate solid free cash flows
before any shareholder returns which however will likely remain
prioritized over debt reduction. Moody's expect AOC's gross
leverage will increase to high 4.0x in 2024 accordingly, reflecting
its lower EBITDA while its total gross debts remain flat. Such
level of credit metrics will continue to position AOC well at the
B2 rating level.
Liquidity
AOC maintains good liquidity. As of March 31, 2024, the company had
cash on the balance sheet of about $247 million and full
availability under its $200 million revolving credit facility that
is due in October of 2026. The revolver has a springing first lien
net leverage ratio covenant of 7.25x, which is tested only if the
facility is 35% drawn. AOC also had additional $40 million
borrowing capacity from its two undrawn account receivable
factoring facilities that mature in May and September 2024
respectively. Moody's expect AOC will continue to generate solid
free cash flows. AOC's availability of liquidity will be more than
sufficient to cover its modest CapEx and maturing short term debts
over the next 12 to 18 months.
Structural considerations
The B1 ratings on the first lien term loan and revolving credit
facility are one notch above the B2 CFR reflecting their first lien
claim on substantially all domestic assets. The Caa1 rating
assigned to the senior unsecured notes due 2029 reflects the
preponderance of debt in the capital structure that ranks ahead in
terms of priority claims.
RATING OUTLOOK
The stable outlook reflects Moody's expectation that despite the
uncertain macroeconomic conditions AOC will sustain credit metrics
commensurate with the B2 rating and maintain good liquidity over
the next 12 to 18 months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if AOC sustains its adjusted
Debt/EBITDA below 4.5x, generates consistent positive free cash
flow, and the sponsor is committed to a more conservative financial
policy. The ratings could be downgraded if AOC's debt/EBITDA is
above 6.5x on a sustained basis, its operational performance and
liquidity significantly deteriorates, or annual free cash flow is
expected to be materially weaker on a sustained basis.
ESG CONSIDERATIONS
Environmental, social and governance factors are also factored in
AOC's rating but not drivers of the action. AOC's CIS-4 mainly
reflects its inherent waste and pollution risk exposure resulting
from its chemical production process and its private equity
ownership and aggressive financial policy.
ISSUER PROFILE
Headquartered in Collierville, TN, AOC is a global CASE and
colorants leader. AOC manufactures and formulates unsaturated
polyester resins (UPR) and vinyl ester resins (VER) as well as
solutions for applications in Coatings & Protective Barriers,
Colorants & Visual Effects, Adhesives & Other and Conventional
Composite Resins. Through the company's 14 manufacturing
facilities, AOC serves customers in the transportation,
construction and infrastructure end markets. In 2021, Lone Star
Funds acquired AOC from CVC Capital Partners. AOC had sales of
approximately $1.5 billion in 2023.
The principal methodology used in these ratings was Chemicals
published in October 2023.
LTL MANAGEMENT: Keller Postman Backs J&J's Bankruptcy Plan
----------------------------------------------------------
Keller Postman on June 4 announced that it will support efforts to
resolve the talcum powder litigation against Johnson & Johnson via
a pre-packaged bankruptcy plan. In May 2024, J&J announced that its
subsidiary LLT Management LLC was proposing a prepackaged plan of
reorganization to resolve its talc-related liabilities. Under the
terms of the plan, a trust would be funded with over $5.4 billion
in the first three years and more than $8 billion over the course
of 25 years, which J&J calculates to have a net present value of
$6.475 billion.
Keller Postman has reviewed the plan and plan documents. Based on
its familiarity with the litigation and past engagement with MDL
leadership firms, Keller Postman intends to support the plan.
Keller Postman believes that this arrangement, if approved, would
secure meaningful, timely recoveries for eligible clients who have
been injured by J&J's talcum powder. This litigation has been
proceeding for more than a decade. Over that time, 17 trials have
reached a verdict and plaintiffs have recovered nothing in 16 out
of 17 of those trials. Keller Postman believes that, barring a
global settlement, litigation is likely to continue for the
foreseeable future. The plan, as proposed by J&J, allocates
substantial resources to compensate injured clients, including an
upfront $2 billion contribution into the trust, and provides a
near-term path to recovery for many individuals. According to the
plan's disclosures, historical settlements for ovarian-cancer talc
cases by J&J have ranged from "$50,000 to $80,000" net of certain
costs. The plan estimates that similar cases would receive "an
average recovery of between $50,000 and $200,000, with an average
value between $75,000 and $150,000 being more likely" if the plan
is confirmed. As a result, Keller Postman will be encouraging all
its eligible clients--including clients who are jointly represented
by Beasley Allen and other firms who currently oppose the
plan--vote to accept the proposed reorganization plan. It will be
communicating this recommendation to its talc clients eligible for
compensation under the plan.
About LTL Management
LTL Management, LLC is a subsidiary of Johnson & Johnson (J&J),
which was formed to manage and defend thousands of talc-related
claims and oversee the operations of Royalty A&M. Royalty A&M owns
a portfolio of royalty revenue streams, including royalty revenue
streams based on third-party sales of LACTAID, MYLANTA/MYLICON and
ROGAINE products.
LTL Management filed a petition for Chapter 11 protection (Bankr.
W.D.N.C. Case No. 21-30589) on Oct. 14, 2021. The case was
transferred to New Jersey (Bankr. D.N.J. Case No. 21-30589) on Nov.
16, 2021. The Hon. Michael B. Kaplan is the case judge. At the
time of the filing, the Debtor was estimated to have $1 billion to
$10 billion in both assets and liabilities.
The Debtor tapped Jones Day and Rayburn Cooper & Durham, P.A., as
bankruptcy counsel; King & Spalding, LLP and Shook, Hardy & Bacon
LLP as special counsel; McCarter & English, LLP as litigation
consultant; Bates White, LLC as financial consultant; and
AlixPartners, LLP as restructuring advisor. Epiq Corporate
Restructuring, LLC, is the claims agent.
An official committee of talc claimants was formed in the Debtor's
Chapter 11 case on Nov. 9, 2021. On Dec. 24, 2021, the U.S.
Trustee for Regions 3 and 9 reconstituted the talc claimants'
committee and appointed two separate committees: (i) the official
committee of talc claimants I, which represents ovarian cancer
claimants, and (ii) the official committee of talc claimants II,
which represents mesothelioma claimants.
The official committee of talc claimants I tapped Genova Burns LLC,
Brown Rudnick LLP, Otterbourg PC and Parkins Lee & Rubio LLP as its
legal counsel. Meanwhile, the official committee of talc claimants
II is represented by the law firms of Cooley LLP, Bailey Glasser
LLP, Waldrep Wall Babcock & Bailey PLLC, Massey & Gail LLP, and
Sherman Silverstein Kohl Rose & Podolsky P.A.
Re-Filing of Chapter 11 Petition
On January 30, 2023, a panel of the Third Circuit issued an opinion
directing this Court to dismiss the 2021 Chapter 11 Case on the
basis that it was not filed in good faith. Although the Third
Circuit panel recognized that the Debtor "inherited massive
liabilities" and faced "thousands" of future claims, it concluded
that the Debtor was not in financial distress before the filing.
On March 22, 2023, the Third Circuit entered an order denying the
Debtor's petition for rehearing. The Third Circuit entered an
order denying LTL's stay motion on March 31, 2023, and, on the dame
day, issued its mandate directing the Bankruptcy Court to dismiss
the 2021 Chapter 11 Case.
The Bankruptcy Court entered an order dismissing the 2021 Case on
April 4, 2023.
Johnson & Johnson on April 4, 2023, announced that its subsidiary
LTL Management LLC (LTL) has re-filed for voluntary Chapter 11
bankruptcy protection (Bankr. D.N.J. Case No. 23-12825) to obtain
approval of a reorganization plan that will equitably and
efficiently resolve all claims arising from cosmetic talc
litigation against the Company and its affiliates in North
America.
In the new filing, J&J said it has agreed to contribute up to a
present value of $8.9 billion, payable over 25 years, to resolve
all the current and future talc claims, which is an increase of
$6.9 billion over the $2 billion previously committed in connection
with LTL's initial bankruptcy filing in October 2021. LTL also has
secured commitments from over 60,000 current claimants to support a
global resolution on these terms.
MADISON 33 PARTNERS: Case Summary & Seven Unsecured Creditors
-------------------------------------------------------------
Debtor: Madison 33 Partners, LLC
6 Red Oak Lane
Spring Valley, NY 10977
Business Description: The Debtor is engaged in activities related
to real estate.
Chapter 11 Petition Date: June 4, 2024
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 24-22500
Judge: Hon. Philip Bentley
Debtor's Counsel: Jonathan S. Pasternak, Esq.
DAVIDOFF HUTCHER & CITRON LLP
605 Third Avenue
34th Floor
New York, NY 10158
Tel: 212-557-7200
Fax: 212 286 1884
Total Assets: $100,600,000
Total Liabilities: $66,502,103
The petition was signed by David Goldwasser as chief restructuring
officer.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/GCISHWA/Madison_33_Partners_LLC__nysbke-24-22500__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's Seven Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. 172 NB LLC $3,500,000
c/o Belkin Burden Goldman, LLP
One Grand Central Place
60 East 42nd Street,
Suite 1620
New York, NY 10165
2. ArentFox Schiff LLP $4,870
233 South Wacker Drive
Suite 7100
Chicago, IL 60606
3. Fox Rothschild LLP $2,217
919 North Market Street
Wilmington, DE 19899
4. Gibgot Willenbacher CPA $4,280
310 East Shore Road
Great Neck, NY 11023
5. Gilsanz Murray $8,366
Steficek LLP
129 West 27th Street
5th Floor
New York, NY 10001
6. Natalia Pirogova $0
c/o Law Offices of
Victor A. Worms
48 Wall Street, Suite 1100
New York, NY 10005
7. PJSC National Bank Trust $0
c/o Charles J. Nerko
Barclay Damon LLP
1270 Avenue of the
Americas, Suite 501
New York, NY 10020
MAGNOLIA ROSE: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Magnolia Rose Veterinary Clinic, Inc.
362 S. Atlanta Street
Roswell GA 30075
Business Description: The Debtor is a veterinarian in Roswell,
Georgia.
Chapter 11 Petition Date: June 4, 2024
Court: United States Bankruptcy Court
Northern District of Georgia
Case No.: 24-55900
Judge: Hon. Jeffery W Cavender
Debtor's Counsel: William Rountree, Esq.
ROUNTREE, LEITMAN, KLEIN & GEER, LLC
2987 Clairmont Road Suite 350
Atlanta GA 30329
Tel: 404-584-1238
E-mail: wrountree@rlkglaw.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Justin O'Dell as receiver.
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/TAFU3MI/Magnolia_Rose_Veterinary_Clinic__ganbke-24-55900__0001.0.pdf?mcid=tGE4TAMA
MARJALINAT INC: Seeks Cash Collateral Access
--------------------------------------------
Marjalinat, Inc. dba House of Salominos asks the U.S. Bankruptcy
Court for the Central District of California, San Fernando Valley
Division, for authority to use cash collateral and provide adequate
protection.
For the period from February 1, 2005 to January 31, 2007 the
California State Board of Equalization contends that the Debtor
incurred a substantial tax liability for taxes on its sales. The
Debtor was inexperienced at the time of the BOE audit and it did
not challenge the taxes claimed of $716,829.
The BOE had worked with the Debtor on the repayment of its
outstanding tax obligation; however, in 2023 it started vigorous
collection action stripping the Debtor of its bank balances and it
threatened to terminate its license after March 18, 2024, leaving
it with the only viable alternative of seeking the protection
afforded under the Bankruptcy Code.
On July 22, 2020, the Debtor executed a U.S. Small Business
Administration Note, pursuant to which the Debtor obtained a COVID
Economic Injury Disaster Loan in the principal amount of $150,000.
The terms of the Note require the Debtor to pay principal and
interest payments of $731 every month beginning 12 months from the
date of the Note (subject to certain Congressionally approved
extensions) over the 30 year term of the SBA Loan. The SBA Loan has
an annual rate of interest of 3.75% and may be prepaid at any time
without notice or penalty.
As of the Petition Date, SBA contends the amount due on the SBA
Loan was $165,014. The Debtor obtained a loan from the United
States Small Business Administration, which is estimated to have an
outstanding balance of $149,000, and which is secured by a UCC-1
Financing Statement, recorded with the Secretary of State of the
State of California on August 01, 2020 as File # U200007240419.
A copy of the motion is available at https://urlcurt.com/u?l=g94s3b
from PacerMonitor.com.
About Marjalinat, Inc.
Marjalinat, Inc. is engaged in the tobacco sales business.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-10433) on March 18,
2024. In the petition signed by Marc Suissa, president, the Debtor
disclosed $45,000 in assets and $3,635,986 in liabilities.
Judge Martin R. Barash oversees the case.
William H. Brownstein, Esq., WILLIAM H. BROWNSTEIN & ASSOCIATES,
P.C., represents the Debtor as legal counsel.
MASHINDUSTRIES INC: Hires BG Law LLP as General Bankruptcy Counsel
------------------------------------------------------------------
Mashindustries, Inc. and its affiliate seek approval from the U.S.
Bankruptcy Court for the Central District of California to employ
Brutzkus Gubner Rozansky Seror Weber LLP as general bankruptcy
counsel.
The firm's services include:
a. advising the Debtors with regard to the requirements of the
Bankruptcy Court, Bankruptcy Code, Bankruptcy Rules and the Office
of the United States Trustee as they pertain to the Debtors;
b. advising the Debtors with regard to certain rights and
remedies of their respective bankruptcy estates;
c. representing the Debtors in any proceeding or hearing in
the Bankruptcy Court involving the Debtors and/or their estates
unless the Debtors and/or the estates is represented in such
proceeding or hearing by other special counsel;
d. conducting examinations of witnesses, claimants or adverse
parties and representing the Debtors in any adversary proceeding
except to the extent that any such adversary proceeding is in an
area outside of BG's expertise or which is beyond BG's staffing
capabilities;
e. preparing and assisting the Debtors in the preparation of
reports, applications, pleadings and orders;
f. representing the Debtors with regard to obtaining use of
debtor in possession financing;
g. assisting the Debtors in the negotiation, formulation,
preparation and obtaining Court approval of a plan of
reorganization; and
h. performing any other services which may be appropriate in
BG's representation of the Debtors during their bankruptcy cases.
The firm will be paid at these rates:
The firm will be paid at these rates:
Partners $626 to $995 per hour
Of Counsel $525 to $595 per hour
Clerk $195 per hour
The firm received a pre-petition retainers in the amount of
$103,476.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Susan K. Seflin, Esq., a partner at BG Law 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:
Susan K. Seflin, Esq.
BG Law LLP
21650 Oxnard Street, Suite 500,
Woodland Hills, CA 91367
Tel: (818) 827-9000
Fax: (818) 827-9099
About MASHindustries, Inc.
MASHindustries, Inc. is a turnkey custom millwork and commercial
casework manufacturer that offers state-of-the-art fabrication and
professional installation.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-11046) on April 24,
2024. In the petition signed by Bernard Brucha, chief executive
officer, the Debtor disclosed up to $10 million in assets and up to
$10 million in liabilities.
Judge Theodor Albert oversees the case.
Susan K. Seflin, Esq., at BG LAW LLP, represents the Debtor as
legal counsel.
MASHINDUSTRIES INC: Hires Stretto as Claims Noticing Agent
----------------------------------------------------------
MASHindustries, Inc. seeks approval from the U.S. Bankruptcy Court
for the Central District of California to employ Stretto, Inc. as
claims, noticing, and solicitation agent.
The firm will provide these services:
a. assist the Debtors with the preparation and distribution of
all required notices and documents in accordance with the
Bankruptcy Code and the Bankruptcy Rules in the form and manner
directed by the Debtors, including: (i) the orders scheduling the
initial status conferences in the Debtors' cases; (ii) notice of
any additional claims bar dates that may be set; (iii) notice of
any proposed sale of the Debtors' assets; (iv) notices of
objections to claims and objections to transfers of claims; (v)
notices of any hearings on a disclosure statement and confirmation
of any plan or plans of reorganization, including under Bankruptcy
Rule 3017(d); (vi) notice of the effective date of any plan; and
(vii) all other notices, orders, pleadings, publications and other
documents as the Debtors and/or the Court may deem necessary or
appropriate for an orderly administration of these Chapter 11
cases;
b. maintain an official copy of the Debtors' Schedules,
listing the Debtors' known creditors and the amounts owed thereto;
c. maintain (i) a list of all potential creditors, equity
holders and other parties-in-interest and (ii) a "core" mailing
list consisting of all parties described in Bankruptcy Rule
2002(i), (j), and (k) and those parties that have filed a notice of
appearance pursuant to Bankruptcy Rule 9010, and update and make
said lists available upon request by a party-in-interest or the
Clerk;
d. maintain a post office box or address for receiving
returned mail, and process all mail received;
e. for all notices, motions, orders or other pleadings or
documents served, prepare and filed or cause to be filed with the
Court an affidavit or certificate of service no more frequently
than every 7 days that includes: (i) either a copy of the notice
served or the docket number(s) and title(s) of the pleading(s)
served; (ii) a list of persons to whom it was mailed (in
alphabetical order) with their addresses; (iii) the manner of
service; and (iv) the date served;
f. process all proofs of claim to prepare claim charts for the
Debtors;
g. monitor the Court's docket for all notices of appearance,
address changes, and claims-related pleadings and orders filed and
make necessary notations on and/or changes to the claims register
and any service or mailing lists, including to identify and
eliminate duplicative names and addresses from such lists;
h. identify and correct any incomplete or incorrect addresses
in any mailing or service lists (to the extent such information is
available);
i. assist in the dissemination of information to the public
and respond to requests for administrative information regarding
these Chapter 11 cases as directed by the Debtors or the Court,
including through the use of a case website and/or call center if
needed;
j. if requested by the Debtors, establish a case website and
provide docket updates via email to parties who subscribe for such
service;
k. comply with applicable federal, state, municipal, and local
statutes, ordinances, rules, regulations, orders, and other
requirements in connection with the Services rendered pursuant to
the Engagement Agreement;
l. if these Chapter 11 cases are converted to cases under
Chapter 7 of the Bankruptcy Code, contact the Clerk within 3 days
of notice to Stretto of entry of the order converting the cases;
m. 30 days prior to the close of these Chapter 11 cases, to
the extent practicable, request that the Debtors submit to the
Court a proposed order dismissing Stretto as claims, noticing, and
solicitation agent and terminating its services in such capacity
upon completion of its duties and responsibilities and upon the
closing of these Chapter 11 cases;
n. within 7 days of notice to Stretto of entry of an order
closing these Chapter 11 cases, provide to the Court the final
version of the claim charts as of the date immediately before the
close of the cases;
o. assist the Debtors with, among other things,
plan-solicitation services including: (i) balloting; (ii)
distribution of applicable solicitation materials; (iii) tabulation
and calculation of votes; (iv) determining with respect to each
ballot cast, its timeliness and its compliance with the Bankruptcy
Code, Bankruptcy Rules, and procedures ordered by this Court; (v)
preparing an official ballot certification and testifying, if
necessary, in support of the ballot tabulation results; and (vi) in
connection with the foregoing services, process requests for
documents from parties in interest, including, if applicable,
brokerage firms, bank back-offices and institutional holders;
p. assist with the preparation of the Debtors' Schedules and
gather data in conjunction therewith;
q. provide a confidential data room, if requested;
r. coordinate publication of certain notices in periodicals
and other media;
s. if requested, manage and coordinate any distributions
pursuant to a Chapter 11 plan; and
t. provide such other claims, noticing, processing,
solicitation, balloting, and other administrative services
described in the Engagement Agreement, that may be requested from
time to time by the Debtors, the Court, or the Clerk.
The retainer is $5,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Sheryl Betance, a senior managing director at Stretto, disclosed in
a court filing that her firm is a "disinterested person" pursuant
to Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Sheryl Betance
Stretto, Inc.
410 Exchange, Ste. 100
Irvine, CA 92602
Tel: (714) 716-1872
Email: sheryl.betance@stretto.com
About MASHindustries, Inc.
MASHindustries, Inc. is a turnkey custom millwork and commercial
casework manufacturer that offers state-of-the-art fabrication and
professional installation.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-11046) on April 24,
2024. In the petition signed by Bernard Brucha, chief executive
officer, the Debtor disclosed up to $10 million in assets and up to
$10 million in liabilities.
Judge Theodor Albert oversees the case.
Susan K. Seflin, Esq., at BG LAW LLP, represents the Debtor as
legal counsel.
MAVERICK GAMING: S&P Upgrades ICR to 'CCC', Outlook Negative
------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on
Washington-based regional casino and cardroom operator Maverick
Gaming LLC to 'CCC' from 'D' and its issue-level rating on the
existing term loan to 'CC' from 'D'. S&P revised the recovery
rating to '6' from '3'.
In addition, S&P assigned 'B-' issue-level and '1' recovery ratings
to the company's first-out term loan, 'CCC' issue-level and '3'
recovery ratings to the second-out term loan, and 'CC' issue-level
and '6' recovery ratings to the third-out term loan.
The negative outlook reflects that Maverick may default or
restructure in the next 12 months and that it depends on favorable
business, financial, and economic conditions.
The 'CCC' rating reflects Maverick's weak liquidity, minimal
fixed-charge coverage, and very high leverage, increasing the
likelihood of another restructuring or default in the next 12
months. Maverick underperformed our base-case expectations for 2023
and continues to struggle, primarily due to the challenges in the
Washington cardroom gaming market. The highly competitive market
fuels high promotional activity. This is compounded by a weaker
local economy due to numerous layoffs in the region at technology
companies that has constrained Maverick's customer base and
discretionary spending. In addition, its fixed-cost structure
(including large fixed-rent obligations associated with various
sale-leaseback transactions) is too high for its revenue base.
In the fourth quarter of 2023, Maverick drew on the full $55
million revolver to support liquidity. Maverick ended the year with
$43 million cash on its balance sheet. Although the company
increased S&P Global Ratings-adjusted EBITDA about $5 million in
the first quarter, relative to the same quarter last year, it
continued to burn cash. Maverick's cash balance declined about $4
million in the first quarter because of its high fixed charges
(debt interest and operating and financing leases). To address
near-term liquidity, the company entered into a distressed debt
refinancing transaction.
S&P said, "While the ability to PIK interest on the company's
second-out term loan for 12 months will improve near-term
liquidity, we still view its capital structure as unsustainable due
to very high leverage. In addition, fixed charges including
interest, rent, maintenance capital expenditure (capex), and
amortization are too high relative to forecast EBITDA. This leaves
no room for operating missteps or unexpected headwinds. Maverick's
cash interest expense will increase significantly following the
12-month PIK period. As a result, we expect the company will begin
burning cash again in 2025 despite various cost and capex
reductions and the restructuring of its debt. Maverick remains
burdened by very high interest expense given its high debt balances
and floating-rate capital structure amid high interest rates.
"In our updated base case, we assume revenue increases of 2%-4% in
2024 and 2025. We expect S&P Global Ratings-adjusted EBITDA margins
of 17%-18% in 2024 and 2025, driven by cost-cutting measures. Given
our forecast and the company's ability pay in kind a material
portion of its interest expense in 2024, we believe operating cash
flow in 2024 will improve from the significant cash burn in 2023
and be modestly positive this year. However, we believe Maverick is
unlikely to generate sufficient cash flow in 2025 to support its
fixed charges at these revenue and EBITDA levels."
Further straining liquidity is that the company no longer has
access to a revolving credit facility following its recent debt
restructuring. Based on our forecast, Maverick may require external
financing or an additional restructuring to reduce interest expense
to fund its operations once it no longer can use PIK interest on
its second-out term loan.
The negative outlook reflects that Maverick may default or
undertake a restructuring in the next 12 months and depends on
favorable business, financial, and economic conditions.
S&P could lower its rating on Maverick one or more notches if:
-- Liquidity weakens; and
-- S&P believes a distressed exchange, restructuring, or default
is imminent.
S&P believes an upgrade is unlikely over the next 12 months given
our base case forecast for cash flow, leverage, and liquidity. To
consider a higher rating, S&P would need to be certain that
Maverick could:
-- Substantially improve liquidity;
-- Generate modest free operating cash flow at historical
maintenance capex;
-- Fully cover fixed charges; and
-- Demonstrate it can reduce leverage to more sustainable levels.
MEDALLION MIDLAND: Moody's Ups CFR to B1 & Alters Outlook to Stable
-------------------------------------------------------------------
Moody's Ratings upgraded Medallion Midland Acquisition, L.P.'s
Corporate Family Rating to B1 from B2, Probability of Default
Rating to B1-PD from B2-PD and senior secured 1st lien term loan
rating to B1 from B2, and changed the outlook to stable from
positive.
"Medallion's upgrade and stable outlook reflect its growing
throughput volumes and earnings delivering steady deleveraging,
with leverage metrics likely remaining solid into 2025," commented
Amol Joshi, Moody's Vice President and Senior Credit Officer.
RATINGS RATIONALE
The upgrade to B1 CFR reflects Medallion's growing scale supported
by organic capital investment and increased volumes through its
Midland Basin system, with EBITDA expected to comfortably exceed
$200 million in 2024. The company's operating cash flow should
sufficiently fund its debt service obligations and capital
expenditures while maintaining solid leverage metrics.
Medallion's B1 CFR reflects its growing yet still limited scale,
asset concentration and the volume risk involved in producer
customers utilizing its oil gathering system to transport
production volumes. Medallion's contracts are 100% fee-based
eliminating direct commodity price risk, although the absence of
material minimum volume commitment contracts highlight its volume
risk. The company's strategic system in the Permian's prolific
Midland Basin is supported by significant acreage dedications
spread over more than 1.3 million acres with over 30 customers and
a large equity investment by an experienced sponsor. The system is
comprised of over 1,300 miles of pipe with about 1.3 million
barrels per day (bbl/d) of crude oil throughput capacity as well as
roughly 1.5 million bbl of storage.
Medallion's leverage metrics have steadily improved from weak
levels in 2017-2020 as its earnings continue to steadily grow.
Moody's expects that Medallion will maintain its leverage
comfortably below 4.5x in 2024, and is well positioned to improve
leverage as earnings should continue to increase into 2025. The
company's credit profile also benefits from structural enhancements
such as a mandatory cash flow sweep provision in the term loan,
which requires the company to direct a portion of excess cash flow
to debt reduction in the event that leverage exceeds 4.5x.
Moody's expects Medallion will maintain good liquidity through
mid-2025. Medallion had $7 million in cash at March 31, 2024 with
an undrawn $100 million revolver. The revolver matures in 2026 and
has financial covenants including a maximum super senior leverage
ratio of 1x, maximum total debt to capitalization ratio of 50% and
minimum debt service coverage ratio of 1.1x. The term loan has a
minimum debt service coverage ratio covenant of 1.1x, consistent
with the revolver. Moody's expects Medallion to maintain compliance
with its covenants through mid-2025.
The term loan matures in 2028 and is rated B1, consistent with
Medallion's CFR. The revolver (unrated) has a super priority
preference over the term loan; however, because of the small size
of the revolver compared to the term loan, the term loan is rated
the same as the CFR.
The stable outlook reflects Moody's expectation that Medallion will
generate meaningful operating cash flow and maintain solid leverage
metrics.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if Medallion meaningfully increases
scale with growing volumes and earnings, while the company balances
shareholder distributions and debtholders' interests, debt to
EBITDA approaches 3.5x and it maintains at least adequate
liquidity. The ratings could be downgraded if Medallion's debt to
EBITDA exceeds 4.5x or there is a significant increase in
shareholder distributions that materially erodes the company's
liquidity or leverage metrics.
Medallion Midland Acquisition, L.P. is a privately owned crude oil
gathering and intra-basin pipeline transportation system in the
Midland Basin. In October 2017, Global Infrastructure Partners
(GIP) acquired Medallion for about $1.8 billion, plus an additional
cash consideration linked to GIP's realized profits at exit.
The principal methodology used in these ratings was Midstream
Energy published in February 2022.
MEET UP PG: Hires Law Office of Geri Lyons Chase as Counsel
-----------------------------------------------------------
Meet UP PG, Limited Liability Company seeks approval from the U.S.
Bankruptcy Court for the District of Maryland to employ Law Office
of Geri Lyons Chase as counsel.
The firm will provide these services:
a. give the Debtor legal advice with respect to its powers and
duties as Debtor and Debtor-in-Possession in the continued
management of its property and operation of its affairs;
b. prepare on behalf of the Debtor necessary complaints,
applications, answers, orders, reports, schedules, statement of
financial affairs and other legal papers;
c. take the necessary steps to stay any action by creditors
seeking liens, attachments, or other advantages by legal process or
nonjudicial process;
d. negotiate and prepare a Plan of Reorganization; and
e. perform all other legal services for the Debtor as may be
necessary herein.
The firm will be paid at $375 per hour.
The firm received a retainer in the amount of $3,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Geri Lyons Chase, Esq., a partner at Law Office of Geri Lyons
Chase, 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:
Geri Lyons Chase, Esq.
Law Office of Geri Lyons Chase
2007 Tidewater Colony Drive, Suite 2B
Annapolis, MD 21401
Tel: (410) 573-9004
Email: gchase@glchaselaw.com
About Meet UP PG, Limited Liability Company
Meet Up PG, Limited Liability Company, filed a Chapter 11
bankruptcy petition (Bankr. D. Md. Case No. 24-13963) on May 9,
2024, disclosing under $1 million in both assets and liabilities.
The Debtor is represented by LAW OFFICE OF GERI LYONS CHASE.
MERMAID BIDCO: S&P Ups ICR To 'B' on Strengthening Credit Metrics
-----------------------------------------------------------------
S&P Global Ratings raised all its ratings on Global virtual data
room (VDR) solutions provider, Mermaid Bidco Inc. (d/b/a Datasite),
including its issuer credit rating to 'B' from 'B-' and its
issue-level ratings on the company's senior secured debt to 'B'
from 'B-'. The recovery rating remains '3'.
S&P said, "We also revised our management and governance (M&G)
assessment on Datasite to moderately negative from neutral,
reflecting certain management and governance weaknesses that we
believe weighs down Datasite's creditworthiness, including its
financial sponsor ownership, lack of material minority
shareholders, and high leverage.
"The stable outlook reflects our expectation that Datasite will
continue to generate strong operating results, including revenue
growth in the mid-teens-percentage range and stable EBITDA margins
in the low- to mid-40% range, resulting in FOCF/debt above 5% and
adjusted leverage in the low-4x range over the next 12 months.
"The upgrade reflects Datasite's improved credit metrics and our
expectation for continued growth to support FOCF/debt above 5% and
adjusted leverage in the low-4x area over the next 12 months.
Datasite generated strong operating results in fiscal 2024, with
14% revenue growth, 44% adjusted EBITDA margins (up 450 basis
points [bps] year over year [YoY]), and $103 million of FOCF
generation contributing to significant deleveraging as its S&P
Global Ratings-adjusted leverage declined to 4.7x at year end (Jan.
31, 2024) from 6.1x in fiscal 2023. Growth in the number of logos
(up 2.6% YoY), the number of projects per logo (up 6.0% YoY), and
increases in project value offset lower platform activity due to
subdued mergers and acquisitions (M&A). Recent results benefited
from the company's ongoing efforts to diversify its revenue base by
expanding its product suite to cover all stages across the M&A
transaction lifecycle. As a result, the proportion of total revenue
generated from sell-side M&A clients has reduced significantly to
around 55% at fiscal year 2024. This has improved the resiliency of
the business and reduced exposure to capital markets activity and
changes in transaction volumes.
"We expect the company's credit metrics to strengthen over the next
12 months, benefitting from strong demand trends and improving
market conditions. We expect the company's credit metrics will
continue to strengthen over the 12 months, driven by continued
growth in the number of logos added (up 3%-4% YoY) and the number
of projects per logo (up 4%-6% YoY). Our base-case forecast assumes
an additional $15 million-$17 million of revenue contribution from
recent acquisitions, including Sherpany (closed March 2024) and
Sealk (closed April 2024), resulting in 15%-16% revenue growth. We
expect EBITDA margins to remain in the low- to mid-40% range over
the next 12 months as increased investments in technology and
development, as well as increases in its salesforce partially
offset improving operating leverage from ongoing cost-savings
initiatives (e.g., headcount reduction, outsourcing).
"Continued top-line growth combined with our expectation for stable
EBITDA margins in the low- to mid-40% range contribute to our
forecast for the company to generate positive FOCF generation of
around $70 million-$90 million in fiscal 2025. We expect fiscal
2025 cash flow generation to be constrained by higher working
capital requirements of around $65 million due to higher bonus
payouts. We forecast FOCF generation will improve to $140
million-$150 million in fiscal 2026 as working capital requirements
return to historical levels. Strong cash flow generation combined
with minimal capital spending requirements of about $25 million
annually (majority is capitalized software development costs)
support our view for the company's leverage to decline to the
low-4x area over the next 12 months.
"We believe ratings upside is limited due to the company's
aggressive financial policy and the potential for a releveraging
event. We expect Datasite will continue to pursue acquisitions as
it seeks to expand its product offerings, geographic footprint, and
gain share in the global VDR market. As a result, we believe
Datasite will likely use internally generated cash to fund
additional acquisitions as opposed to repaying outstanding debt.
Furthermore, we believe the company's financial-sponsor ownership
could potentially lead the company to undertake re-leveraging
transactions, such as large debt-funded acquisitions that result in
increased leverage above our 5.5x downside threshold. That said, we
believe ratings upside is constrained by its flexible financial
policy and the potential for a re-leveraging event.
"The stable outlook reflects our expectation that Datasite will
continue to generate strong operating results, including revenue
growth in the mid-teens-percentage area and stable EBITDA margins
in the low- to mid-40% range, resulting in FOCF/debt sustained
above 5% and adjusted leverage in the low-4x area over the next 12
months.
"We could lower our ratings on Datasite within the next 12 months
if we expect adjusted leverage would remain above 5.5x and FOCF to
debt below 5% on a sustained basis."
This could occur if Datasite:
-- Faces a more competitive landscape that results in market share
and client losses and slower-than-expected growth trends; or
-- Pursues a more aggressive financial policy, which could include
large debt funded acquisitions or less likely, shareholder
distributions (dividends).
Although unlikely given private-equity ownership, S&P could raise
its ratings on Datasite within the next 12 months if adjusted
leverage is sustained below 4.5x and FOCF/debt sustained in the 10%
area.
This could occur if Datasite:
-- Uses free operating cash flow generation to accelerate debt
repayment; and
-- Commits to a more conservative financial policy that supports
sustaining leverage below 4.5x, inclusive of potential acquisitions
or shareholder distributions.
METROPOLITAN THEATRES: Hires Glassratner as Financial Advisor
-------------------------------------------------------------
Metropolitan Theatres Corporation seeks approval from the U.S.
Bankruptcy Court for the Central District of California to employ
Glassratner Advisory & Capital Group, LLC d/b/a B. Riley Advisory
Services as financial advisor.
The firm will provide these services:
a. assist the Debtor's counsel with the development of Plan of
Reorganization and Plan Confirmation process;
b. prepare Monthly Operating Reports (MORs);
c. prepare and deliver presentations to stakeholders, lenders
and other parties as requested;
d. coordinate with the Debtor's outside professionals;
e. assist with any general accounting and administrative
activities as requested;
f. provide Bankruptcy Court testimony in connection with the
foregoing, as required; and
g. perform various other task and duties as necessary from time
to time as requested by the Company or its counsel.
The firm will be paid at these rates:
Sr. Managing Directors $500 to $900 per hour
Managing Directors $435 to $800 per hour
Other Staff $175 to $395 per hour
The firm will be paid a retainer in the amount of $12,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Seth Freeman, a partner at Glassratner Advisory & Capital Group,
LLC d/b/a B. Riley Advisory Services, 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:
Seth Freeman
Glassratner Advisory & Capital Group, LLC
d/b/a B. Riley Advisory Services
19800 MacArthur Blvd., Suite 820
Irvine, CA 92612
Telephone: (415) 229-4680
About Metropolitan Theatres Corporation
Metropolitan Theatres Corporation, a fourth-generation family-owned
theatre circuit launched in 1923, provides a movie-going experience
with a growing number of plush luxury recliner auditoriums and
expanded food and beverage offerings. Metropolitan currently
operates a diverse collection of historic properties and
state-of-the-art multiplexes among its 17 theatres and 94 screens
in California, Colorado, Idaho and Utah.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-11569) on February
29, 2024. In the petition signed by David Corwin, president, the
Debtor disclosed $26,569,833 in assets and $25,243,105 in
liabilities.
Judge Barry Russell oversees the case.
Lance N. Jurich, Esq., at LOEB & LOEB LLP, represents the Debtor as
legal counsel.
KGI ADVISORS serves as the Debtor's financial consultant.
MILLENKAMP CATTLE: Comm. Taps Elsaesser Anderson as Local Counsel
-----------------------------------------------------------------
The official committee of the unsecured creditors of Millenkamp
Cattle, Inc. and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Idaho to employ Elsaesser
Anderson Chtd. as its local counsel.
The firm will render these services:
a. provide assistance to other Committee professionals on
filing papers with the Court;
b. attend hearings as co-counsel to other Committee
professionals;
c. advise on Idaho local rules; and
d. provide such other legal services for the Committee as to
no duplicate or overlap the efforts of other professionals retained
by the Committee, including lead Committee counsel.
Elsaesser Anderson typically bills clients at an hourly rate of
$425.
Elsaesser Anderson is a "disinterested person" within the meaning
of Section 101(14), as modified by Section 1103(b), of the
Bankruptcy Code, according to court filings.
The firm can be reached through:
Bruce A. Anderson, Esq.
ELSAESSER ANDERSON CHTD.
320 East Neider Avenue, Suite 102
Coeur d'Alene, ID 83815
Tel/Fax: (208) 667-2900
Email: brucea@eaidaho.com
About Millenkamp Cattle
Millenkamp Cattle Inc., part of a family-owned agriculture business
that can produce more than 1 million pounds of milk per day.
Millenkamp Cattle Inc. and its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Idaho Lead Case
No. 24-40158) on April 2, 2024. In the petitions filed by William
J. Millenkamp, manager, Millenkamp Cattle estimated assets between
$10 million and $50 million and estimated liabilities between $500
million and $1 billion.
The Honorable Bankruptcy Judge Noah G. Hillen oversees the cases.
The Debtors are represented by Matthew T. Christensen, Esq. at
Johnson May, PLLC.
MILLENKAMP CATTLE: Committee Taps O'Melveny & Myers as Lead Counsel
-------------------------------------------------------------------
The official committee of the unsecured creditors of Millenkamp
Cattle, Inc. and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Idaho to employ O'Melveny &
Myers LLP as its lead counsel.
The firm will render these services:
a. advise the Committee generally regarding matters of
bankruptcy law in connection with the Chapter 11 Cases;
b. advise the Committee of the requirements of the Bankruptcy
Code, the Bankruptcy Rules, applicable local bankruptcy rules
pertaining to the administration of the Chapter 11 Cases and U.S.
Trustee Guidelines;
c. prepare motions, applications, answers, proposed orders,
reports and papers on behalf of the Committee;
d. appear before this Court, any appellate courts and the
United States Trustee and protect the interests of the Committee;
e. advise the Committee regarding bankruptcy related
litigation;
f. represent the Committee in any matters involving contests
with the Debtors in these Chapter 11 Cases;
g. attend meetings and negotiate with the Debtors and any
trustee that may be appointed;
h. take such actions to protect and preserve the interests of
the unsecured creditors in these Chapter 11 Cases;
i. seek to negotiate a plan that is in the best interests of
unsecured creditors; and
j. render such other necessary advice and services as the
Committee may require in connection with these Chapter 11 Cases.
The firm has agreed to charge its regular hourly rates less a 15
percent discount.
The firm will be paid at these rates:
Julian Gurule $1,177.25 per hour
Matthew Kremer $1,194.25 per hour
Gabriel L. Olivera $1,066.75 per hour
Nicole Molner $909.50 per hour
Gabe Castillo-Laughton $833 per hour
Sean Milde $646 per hour
Julian Gurule, Esq., a partner at O'Melveny & Myers, disclosed in a
court filing that the firm is a "disinterested person" as defined
in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Julian Gurule, Esq.
O'Melveny & Myers LLP
400 South Hope Street, 18th Floor
Los Angeles, CA 90071
Phone: (213) 430-6067
Email: jgurule@omm.com
About Millenkamp Cattle
Millenkamp Cattle Inc., part of a family-owned agriculture business
that can produce more than 1 million pounds of milk per day.
Millenkamp Cattle Inc. and its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Idaho Lead Case
No. 24-40158) on April 2, 2024. In the petitions filed by William
J. Millenkamp, manager, Millenkamp Cattle estimated assets between
$10 million and $50 million and estimated liabilities between $500
million and $1 billion.
The Honorable Bankruptcy Judge Noah G. Hillen oversees the cases.
The Debtors are represented by Matthew T. Christensen, Esq. at
Johnson May, PLLC.
MILLENKAMP CATTLE: Seeks to Hire Cooper Norman as Accountant
------------------------------------------------------------
Millenkamp Cattle, Inc. and its affiliates seek approval from the
U.S. Bankruptcy Court for the District of Idaho to employ Cooper
Norman as its accountant.
The firm will render these services:
(a) provide as-needed financial accounting services;
(b) prepare federal and state income tax returns with
supporting schedules and related tax report filings, and perform
related research as necessary;
(c) consult and assist with tax liability projections; and
(d) contribute to and attend conference calls, meetings, and
hearings related to the services provided by the firm, as may be
necessary.
Cooper Norman will receive a $50,000 retainer. Cooper Norman's
staff accountant billing rates range from $150 to $200 per hour,
manager billing rates range from $200 to $300 per hour, and partner
billing rates range from $300 to $500 per hour.
Lance Fenton, CPA , an accountant at Cooper Norman, 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 through:
Lance Fenton, CPA
Cooper Norman
722 North College Road
PO Box 5399
Twin Falls, Idaho 83303
Telephone: (208) 733-6581
Email: lfenton@coopernorman.com
About Millenkamp Cattle
Millenkamp Cattle Inc., part of a family-owned agriculture business
that can produce more than 1 million pounds of milk per day.
Millenkamp Cattle Inc. and its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Idaho Lead Case
No. 24-40158) on April 2, 2024. In the petitions filed by William
J. Millenkamp, manager, Millenkamp Cattle estimated assets between
$10 million and $50 million and estimated liabilities between $500
million and $1 billion.
The Honorable Bankruptcy Judge Noah G. Hillen oversees the cases.
The Debtors are represented by Matthew T. Christensen, Esq. at
Johnson May, PLLC.
MILWAUKEE INSTRUMENTS: Hires Northen Blue as Bankruptcy Counsel
---------------------------------------------------------------
Milwaukee Instruments, Inc. seeks approval from the U.S. Bankruptcy
Court for the Eastern District of North Carolina to hire Northen
Blue, LLP as its counsel.
Professional services to be offered by Northen Blue are:
a. give the Debtors legal advice with respect to their duties
and powers as debtors-in-possession.
b. assist the Debtors in the management and/or sale of their
properties and any other matter relevant to the cases or to the
formulation of a plan.
c. assist the Debtors in the preparation and filing of all
necessary schedules, statement of financial affairs, reports, a
disclosure statement, and a plan.
d. assist and advise the Debtors in the examination and
analysis of the conduct of the Debtors' affairs and the causes of
insolvency.
e. assist and advise the Debtors with regard to
communications to the general creditor body regarding any matters
of general interest and any proposed plan of reorganization.
f. prepare, review or analyze all applications, orders,
statements of operations, and schedules filed with the Court by the
Debtors or other third parties, give advice to the Debtors as to
their propriety, and after approval by the Debtors, consent to
Orders.
g. perform such other legal services as may be required and
in the interest of the Debtors, including but not limited to the
commencement and pursuit of such adversary proceedings as may be
authorized, and the defense of pending or future proceedings
brought against the Debtors or affecting property of the estate.
The firm will be paid at these rates:
John A. Northern $620 per hour
Vicki L. Parrott $510 per hour
The firm holds s retainer in the amount of $37,705.36.
John A. Northen, Esq., a partner at Northen Blue, assured the Court
that the firm is a "disinterested person" within the meaning of
Section 101(14) of the Bankruptcy Code.
Northen Blue can be reached at:
John A. Northen, Esq.
NORTHEN BLUE, L.L.P.
P.O. Box 2208
Chapel Hill, NC 27514-2208
Tel: (919) 968-4441
E-mail: jan@nbfirm.com
About Milwaukee Instruments, Inc.
Milwaukee Instruments is a manufacturer of electrochemical
instrumentation for water analysis to measure pH, Turbidity,
Conductivity, Salinity, Total Acidity, Temperature, Sulphur
Dioxide, Chlorine, Ammonia, Chloride, Phosphate, Iron, etc.
Milwaukee Instruments, Inc. filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.C. Case No.
24-01757) on May 25, 2024, listing $990,527 in assets and
$38,511,176 in liabilities. The petition was signed by Carl
Silvaggio as president.
John A. Northen, Esq. at Northern Blue LLP represents the Debtor as
counsel.
MILWAUKEE INSTRUMENTS: Taps PKF Clear Thinking as Financial Advisor
-------------------------------------------------------------------
Milwaukee Instruments, Inc. seeks approval from the U.S. Bankruptcy
Court for the Eastern District of North Carolina to hire PKF Clear
Thinking, LLC as its financial advisor.
The firm will render these services:
a. assist with post-filing communication efforts to various
creditors and parties-in-interest;
b. assist with the preparation of schedules, budgets, variance
reports, monthly operating reports, quarterly reports, tax returns,
and other financial documents and projections required during the
Chapter 11 case;
c. assist with any process for the sale of all of the Debtor's
assets or any alternative plan process;
d. assist with the analysis and reconciliation of claims
against the Debtor and other bankruptcy avoidance actions;
e. attend any court proceedings and provide testimony as
requested by the Debtor;
f. assist with the preparation and development of a plan of
reorganization; and
g. assist with any other financial advisory services.
PKF will be paid at these rates:
Joseph Marchese $800 per hour
Jackie Reinhard $700 per hour
Edward Shine $600 per hour
The firm holds a security retainer in the amount of $84,534.
Joseph Marchese, a partner at PKF, disclosed in a court filing that
his firm is a "disinterested person" pursuant to Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Joseph Marchese
PKF Clear Thinking, LLC
401 Towne Centre Drive
Hillsborough, NJ 08844
Tel: (908) 431-2121
Email: jmarchese@pkfct.com
About Milwaukee Instruments, Inc.
Milwaukee Instruments is a manufacturer of electrochemical
instrumentation for water analysis to measure pH, Turbidity,
Conductivity, Salinity, Total Acidity, Temperature, Sulphur
Dioxide, Chlorine, Ammonia, Chloride, Phosphate, Iron, etc.
Milwaukee Instruments, Inc. filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.C. Case No.
24-01757) on May 25, 2024, listing $990,527 in assets and
$38,511,176 in liabilities. The petition was signed by Carl
Silvaggio as president.
John A. Northen, Esq. at Northern Blue LLP represents the Debtor as
counsel.
MINI MANIA: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Mini Mania Inc.
Seven Mini Parts
d/b/a Sprintboostersales.com
870 Gold Flat Rd Ste A
Nevada City, CA 95959-3200
Business Description: The Debtor owns and operates automotive
parts, accessories, and tire stores.
Chapter 11 Petition Date: June 4, 2024
Court: United States Bankruptcy Court
Eastern District of California
Case No.: 24-22456
Judge: Hon. Fredrick E Clement
Debtor's Counsel: Steven R. Fox, Esq.
THE FOX LAW CORPORATION INC.
17835 Ventura Blvd #306
Encino, CA 91316
Tel: 818 774 3545
Email: SRFox@foxlaw.com
Total Assets: $1,155,121
Total Liabilities: $3,312,513
The petition was signed by Jonathan Harvey 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/7YRQZUY/Mini_Mania_Inc__caebke-24-22456__0001.0.pdf?mcid=tGE4TAMA
MJW MARKETING: Wins Cash Collateral Access on Final Basis
---------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Washington
authorized MJW Marketing, Inc. to use cash collateral, on an
interim basis, in accordance with the budget, with a 15% variance.
The Debtor requires the use of cash collateral to pay post-petition
operating expenses including post-petition payroll and related
taxes that come due prior to the final hearing on cash collateral.
Specifically, the Debtor is permitted to use cash collateral for
the purposes of satisfying prepetition payroll obligations and
associated payroll taxes.
As adequate protection for the Debtor's use of the cash collateral
on an interim basis, the Court grants Umpqua a valid, enforceable,
fully perfected, and unavoidable replacement lien in favor of
Umpqua Bank on all of the Debtor's postpetition assets or interests
in assets acquired on or after the Petition Date of the same types
and categories that Umpqua Bank had a lien on or security interest
in as of the Petition Date.
The Replacement Lien will be subordinate to the allowed and
approved fees and expenses (but not professional fees) of a
trustee, if any, appointed in any superseding Chapter 7 case; ii)
adequate protection payments in the amount of $2,500 per month to
Umpqua Bank beginning on June 15, 2024; and iii) Debtor will keep
the Collateral fully insured and free and clear from other liens or
encumbrances. Umpqua Bank may, in its sole discretion, file such
financing statements, notices of liens or similar instruments in
order to perfect said security interest and are relieved from the
automatic stay in order to do so.
In accordance with the approved Budget, the debtor is authorized to
remit to the Sub Chapter V Trustee, Michael DeLeo the sum of $250
per week beginning June 1, 2024 and continuing weekly thereafter to
be held for payment of Trustee fees pending further order of the
Court.
The Debtor's authority to use cash collateral will terminate on the
date when one or more of the following conditions has occurred or
has been met:
a. October 15, 2024;
b. The Court enters an order converting this case under Chapter 7
of the Bankruptcy Code, or the Debtor has filed a motion or has not
timely opposed a motion seeking such relief;
c. The Court enters an order appointing or electing a trustee,
examiner or any other similar entity with expanded powers;
d. The Court enters an order dismissing the case, or the Debtor has
filed a motion or has not timely opposed a motion seeking such
relief;
e. The Court enters any order that stays, modifies, or reverses the
Final Order; or
f. Confirmation of the debtor's plan, whichever is sooner.
A copy of the order is available at https://urlcurt.com/u?l=wJ5aft
from PacerMonitor.com.
About MJW Marketing, Inc.
MJW Marketing, Inc. is a liquidation store offering tech products,
fashion, outdoor gear, hardware, kitchenware, furniture--even
groceries.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Wash. Case No. 24-11118) on May 3,
2024. In the petition signed by Michael (Mick) Weed, the Debtor
disclosed $672,401 in assets and $3,118,730 in liabilities.
Judge Timothy W. Dore oversees the case.
Thomas D. Neeleman, Esq., at NEELAMAN LAW GROUP, P.C., represents
the Debtor as legal counsel.
MMA LAW: Committee Taps Okin Adams Bartlett Curry LLP as Counsel
----------------------------------------------------------------
The official committee of unsecured creditors of MMA Law Firm, PLLC
seeks approval from the U.S. Bankruptcy Court for the Southern
District of Texas to employ Okin Adams Bartlett Curry LLP as its
counsel.
The firm's services include:
a. assisting the committee in its discussions with the Debtor
and other parties-in-interest regarding the overall administration
of the Debtor's Chapter 11 case and related adversary proceedings;
b. representing the committee at hearings and communicating
with the committee regarding the matters heard and the issues
raised as well as the decisions and considerations of the court;
c. assisting the committee in its examination and analysis of
the conduct of the Debtor's affairs;
d. reviewing and analyzing legal documents filed by interested
parties, and consenting or objecting to pleadings or orders, as
appropriate;
e. assisting the committee in preparing legal documents in
support of positions taken by the committee;
f. conferring with the professionals retained by the Debtor,
the committee and other parties in interest;
g. coordinating the receipt and dissemination of information
prepared by and received from the Debtor's and committee's
professionals;
h. participating in the examinations of the Debtor and other
witnesses in order to analyze and determine, among other things,
the Debtor's assets and financial condition, whether the Debtor has
made any avoidable transfers of property, or whether causes of
action exist on behalf of the Debtor's estates;
i. negotiating and, if necessary or advisable, formulating a
plan of reorganization for the Debtor; and
j. performing other necessary legal services.
The firm's current customary hourly rates range from $435 to $825
for attorneys and $155 for paraprofessionals.
The primary attorneys at Okin Adams who will represent the
committee and the hourly rates of these attorneys are as follows:
Matthew S. Okin Partner $825
Christopher Adams Partner $750
Ryan A. O'Connor Associate $515
Kelley K. Edwards Associate $435
Matthew Okin, Esq., a partner at Okin Adams, 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:
Matthew S. Okin, Esq.
Okin Adams, LLP
1113 Vine St., Suite 240
Houston, TX 77002
Tel: (713) 228-4100
Fax: (888) 865-2118
Email: mokin@okinadams.com
About MMA Law Firm, PLLC
MMA Law Firm PLLC is a law firm specializing in insurance claim
management, negotiation, and litigation.
MMA Law Firm PLLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-31596) on April 9,
2024. In the petition signed by Zach Moseley, as managing member,
the Debtor estimated assets between $100 million and $500 million
and estimated liabilities between $10 million and $50 million.
The Honorable Bankruptcy Judge Eduardo V. Rodriguez oversees the
case.
The Debtor is represented by Johnie Patterson, Esq. at WALKER &
PATTERSON, P.C.
NEXTTRIP INC: Delays 2023 Annual Report to Finalize Disclosures
---------------------------------------------------------------
NextTrip, Inc., disclosed in a Form 12b-25 filed with the
Securities and Exchange Commission that it has determined that it
is unable to file its Annual Report on Form 10-K for the fiscal
year ended Feb. 29, 2024 within the prescribed time period without
unreasonable effort or expense. The Company requires additional
time to finalize certain of the disclosures in its Annual Report,
as well as the financial statements to be filed as part of the
Annual Report.
On Dec. 29, 2023, the Company (then known as Sigma Additive
Solutions, Inc.) entered into a Share Exchange Agreement with
NextTrip Holdings, Inc., NextTrip Group, LLC, and William Kerby, as
the NextTrip Representative, pursuant to which the Company acquired
100% of the outstanding equity interests of NextTrip, with NextTrip
continuing as a wholly-owned subsidiary of the Company. As
consideration for the Acquisition, at closing the Company issued
156,007 restricted shares of its common stock, constituting 19.99%
of its issued and outstanding shares of common stock immediately
prior to execution of the Share Exchange Agreement, and agreed to
issue up to an aggregate of 5,843,993 shares of common stock as
further consideration upon NextTrip's achievement of certain
milestones set forth in the Share Exchange Agreement. The
Acquisition closed on Dec. 29, 2023. The Acquisition was accounted
for as a reverse acquisition, with NextTrip being deemed the
acquiring company for accounting purposes. Additionally, upon
closing of the Acquisition, the Company adopted the fiscal year of
NextTrip, resulting in a change in the Company's fiscal year end
from December 31 to February 28/29.
Not only did the foregoing Acquisition result in the Company having
to consolidate the Company's financial information into the
financial statements of NextTrip and notes related thereto and
change the reporting period for its fiscal year, but the
Acquisition also resulted in a number of significant operational
changes for the Company, including changes in the industries and
geographies in which the Company operates, as well as changes in
its management structure. This is the first annual report that
certain operational information, including the results of
operations of NextTrip, will be reflected in the Company's audited
financial statements and notes thereto, as well as other portions
of the Annual Report.
For the foregoing reasons, the Company requires additional time to
complete the procedures relating to its year-end reporting process,
including the completion of the Company's financial statements and
the audit thereof, updating relevant disclosures to reflect changes
to the Company's business as a result of the Acquisitions, and
completion of the procedures relating to management's assessment of
the effectiveness of internal controls, and the Company is
therefore unable to file the Annual Report by May 29, 2024, the
prescribed filing due date for the Annual Report.
About NextTrip, Inc.
NextTrip -- https://investors.nexttrip.com -- is a
technology-driven platform delivering innovative solutions for
business and leisure travel. NextTrip Leisure provides individual
and group travelers with vacations to the most popular and
sought-after destinations in Mexico, the Caribbean and across the
world. NextTrip Business is an online corporate travel and expense
management solution with a large inventory of travel options and
discounted rates. NextTrip Solutions offers travel technologies
that make the jobs of alternative lodging property managers,
wholesalers, distributors and other travel industry players easier
and more efficient.
"Due to uncertainties regarding our ability to meet our current and
future operating and capital expenses, there is substantial doubt
about our ability to continue as a going concern for 12 months from
the date of the filing of this Quarterly Report," said Nexttrip in
its Quarterly Report for the period ended Sept. 30, 2023.
NIRVANA INVESTMENT: Voluntary Chapter 11 Case Summary
-----------------------------------------------------
Debtor: Nirvana Investment Group, LLC
5441 Country Club Parkway
San Jose, CA 95138
Chapter 11 Petition Date: June 4, 2024
Court: United States Bankruptcy Court
Northern District of California
Case No.: 24-50854
Judge: Hon. Stephen L Johnson
Debtor's Counsel: Arasto Farsad, Esq.
FARSAD LAW OFFICE, P.C.
1625 The Alameda, Suite 525
San Jose, CA 95126
Tel: 408-641-9966
Email: Farsadlaw1@gmail.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Michael Luu as managing member.
The Debtor failed to attach 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/B6AXSSQ/Nirvana_Investment_Group_LLC__canbke-24-50854__0001.0.pdf?mcid=tGE4TAMA
NO LIMITS AVIATION: Seeks to Tap Johnson May as Bankruptcy Counsel
------------------------------------------------------------------
No Limits Aviation, Inc. seeks approval from the U.S. Bankruptcy
Court for the District of Idaho to hire Johnson May as its
counsel.
The firm's services include:
a. preparing and filing of a Petition, Schedules, Statement of
Financial Affairs, and other related pleadings;
b. attending all meetings of creditors, hearings, pretrial
conferences, and trials in the case or any litigation arising in
connection with the case, whether in state or federal court;
c. preparing, filing, and presentation to the Bankruptcy Court
of any pleadings requesting relief;
d. preparing, filing, and presentation to the court of a
disclosure statement (if necessary) and plan or arrangement under
Chapter 11 of the Bankruptcy Code;
e. reviewing claims made by creditors or interested parties,
preparing, and prosecution of any objections to claims as
appropriate;
f. preparing, filing, and presentation to the court of all
applications to employ and compensate professionals in the Chapter
11 proceeding; and
g. preparing and presentation of a final accounting and motion
for final decree closing the bankruptcy case.
The firm's hourly rates are as follows:
Attorneys $225 to $425
Paralegal $95 to $175
As disclosed in court filings, Johnson May does not represent
interests adverse to the Debtor and its estate.
The firm can be reached through:
Matthew T. Christensen, Esq.
JOHNSON MAY, PLLC
199 N. Capitol Blvd., Suite 200
Boise, ID 83702
Telephone: (208) 384-8588
Facsimile: (208) 629-2157
Email: mtc@johnsonmaylaw.com
About No Limits Aviation
No Limits Aviation, Inc. filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D. Idaho Case No.
24-20183) on May 24, 2024, listing $500,001 to $1 million in both
assets and liabilities.
Judge Noah G Hillen presides over the case.
Matthew T. Christensen, Esq. at Johnson May, PLLC represents the
Debtor as counsel.
NORDICUS PARTNERS: Appoints Peter Severin as Board Chairman
-----------------------------------------------------------
Nordicus Partners Corporation announced the appointment of Peter
Severin as Chairman of the Board of Directors. Peter Severin
replaces Christian Hill-Madsen as Chairman, who resigned to focus
on developing the next generation of periodontities therapies for
Orocidin A/S, a company owned 95% by Nordicus, where Christian
currently serves as Chairman of its Board.
"We are delighted to welcome Peter as Chairman of the Board," said
Henrik Rouf, CEO of Nordicus. "His broad sales experience in the
life sciences industries in the Nordics will be invaluable to
Nordicus as we pursue our mission to acquire majority stakes in
Nordic as well as U.S. based life sciences companies."
Mr. Severin brings over 25 years life sciences and sales experience
to Nordicus' Board. Mr. Severin is currently the founder and CEO
of Severin Partners, a Denmark-based sales and communications
consulting company focusing on the healthcare industries. Prior to
founding Severin Partners, Peter held positions as Head of Sales of
Novartis AG, Sales Manager at AstraZeneca Pharmaceuticals and as
Sales Manager of GSK Plc (formerly GlaxoSmithKline Plc).
In addition, on June 3, 2024, the Company's Board of Directors
adopted a resolution providing that the Chairman of the Board of
Directors shall receive compensation of $20,000 per annum, and each
other Director shall receive compensation of $10,000 per annum, in
consideration of their serving on the Corporation's Board of
Directors, payable in equal installments semiannually in arrears,
commencing Dec. 31, 2024, without proration for partial terms.
About Nordicus Partners Corporation
Nordicus Partners Corporation is a Denmark-based financial
consulting company, specializing in providing Nordic and U.S. life
sciences companies with the best possible conditions to establish
themselves on the U.S. market, taking advantage of management's
combined +90 years of experience in the corporate sector, serving
in different capacities both domestically and globally. Nordicus'
95% owned subsidiary, Orocidin A/S, is a clinical-stage
biopharmaceutical company which is advancing the next generation of
periodontitis therapies. Nordicus' core competencies lie in
assisting Danish as well as other Nordic and international
companies in different areas of corporate finance activities, such
as: business valuations, growth strategies, attracting capital for
businesses and company acquisitions and sales. For more
information about Nordicus, please visit: www.nordicuspartners.com
Spokane, Washington-based Fruci & Associates II, PLLC, the
Company's auditor since 2023, issued a "going concern"
qualification in its report dated July 14, 2023, citing that the
Company has not generated revenue, incurred losses since inception,
and has an accumulated deficit. These factors, among others, raise
substantial doubt about the Company's ability to continue as a
going concern.
"The Company has not yet generated any revenue and has incurred
losses since inception resulting in an accumulated deficit of
$42,411,739 as of December 31, 2023. As a result, we expect our
funds will not be sufficient to meet our needs for more than twelve
months from the date of issuance of these financial statements.
Accordingly, management believes there is substantial doubt about
our ability to continue as a going concern," said Nordicus in its
Quarterly Report for the period ended Dec. 31, 2023.
NORTH GEORGIA NURSING: Taps Robert L. Abrams CPA as Accountant
--------------------------------------------------------------
North Georgia Nursing Academy, LLC seeks approval from the U.S.
Bankruptcy Court for the Northern District of Georgia to employ
Robert L. Abrams, CPA as accountant.
The firm's services include:
a. preparing such federal and state tax returns as may be
required; and
b. performing such other accounting work as may be required in
this case.
The firm will be paid at these rates:
Robert L. Abrams, CPA $175 per hour
Staff $75 per hour
Robert L. Abrams CPA is a "disinterested person," as defined by 11
U.S.C. Sec. 101 (14), according to court filings.
The firm can be reached through:
Robert L. Abrams, CPA
Robert L. Abrams CPA
255 Court Street
PO Box 330
Paintsville, KY 41240
Phone: (606) 789-5101
About North Georgia Nursing Academy
North Georgia Nursing Academy, LLC is a nursing school that
provides students with the knowledge and technical training
required for a career in the medical field.
North Georgia Nursing Academy sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-20527) on May
6, 2024. In the petition signed by April Kidd, director and sole
member, the Debtor disclosed $4,853,000 in assets and $2,646,720 in
liabilities.
Judge James R. Sacca oversees the case.
The Law Offices of Douglas Jacobson, LLC serves as the Debtor's
counsel.
NOVA LIFESTYLE: All Four Proposals Passed at Annual Meeting
-----------------------------------------------------------
Nova LifeStyle, Inc. reported in a Form 8-K filed with the
Securities and Exchange Commission that on May 31, 2024, the
Company held its 2024 Annual Meeting of Shareholders at which the
shareholders:
(1) elected Min Su, Thanh H. Lam, Ming-Cherng Sky Tsai,
Huy (Charlie) La, and Umesh Patel to the Board of Directors
of the Company to serve until the 2025 Annual Meeting of
Shareholders and until their successors have been duly
elected and qualified;
(2) approved and ratified the appointment of WWC, P.C. as the
Company's independent registered public accounting firm for
the fiscal year ending Dec. 31, 2024;
(3) adopted and approved the Nova LifeStyle, Inc. 2024 Omnibus
Equity Plan; and
(4) approved, on an advisory, non-binding basis, the
compensation
of the Company's named executive officers.
About Nova Lifestyle
Headquartered in Commerce, CA, Nova LifeStyle, Inc. is a
distributor of contemporary styled residential and commercial
furniture incorporated into a dynamic marketing and sales platform
offering retail as well as online selection and global purchase
fulfillment. The Company monitors popular trends and products to
create design elements that are then integrated into our product
lines that can be used as both stand-alone or whole-room and home
furnishing solutions. Through its global network of retailers,
e-commerce platforms, stagers and hospitality providers, Nova
LifeStyle also sells (through an exclusive third-party
manufacturing partner) a managed variety of high quality bedding
foundation components.
San Mateo, California-based WWC, P.C., the Company's auditor since
2022, issued a "going concern" qualification in its report dated
April 12, 2024, citing that the Company incurred a net loss for the
years ended Dec. 31, 2023 and 2022, and the accumulated deficit
increased from $36.71 million to $44.43 million from 2022 to 2023.
These factors, raise substantial doubt about its ability to
continue as a going concern.
NOVO INTEGRATED: Amends $70M Promissory Note With RC Consulting
---------------------------------------------------------------
Novo Integrated Sciences, Inc. announced the Company and RC
Consulting Consortium Group LLC, in favor of SCP Tourbillion
Monaco, have amended the prepayment terms and conditions of the
previously disclosed $70,000,000 promissory note, dated April 26,
2023 to provide that, at any time after 12 months and no later than
60 months from the commencement of the term of the RC Note and
prior to an event of default, if the Company's listed common stock
closes over $15 per share for a period of five consecutive trading
days, the Company may prepay up to 50% of the outstanding RC Note
in restricted shares, at a value equal to 15% greater than the
average closing price of the Company's common stock.
In addition, in the event the Company elects to prepay any
outstanding amount in restricted shares of the Company's common
stock, upon the removal of the restriction RC (or its designates)
will be limited to selling no more than one-sixth of the amount of
shares available from the lifting of the Rule 144 restriction over
a single 30-day period.
Except as set forth in the Amendment, all other provisions and
conditions of the Note remain in full force and effect, including
the Company's right, on 15 days' prior written notice, to prepay
the Note at any time prior to an event of default.
Robert Mattacchione, the Company's CEO and Board Chairman, stated,
"The opportunity to equitize up to 50% of the debt represented by
the RC Note at a significant premium further reinforces the
significance of this funding potential to the Company. It is clear
that RC believes strongly in the Company's growth objectives, as
well as in the Company as a long-term investment opportunity. The
exclusive nature of the conversion right held by the Company
preserves the non-dilutive benefit of the RC Note present from the
onset. This amendment leaves the Company in a strategically
advantageous position, both short and long term, post closing of
the RC Note transaction."
About Novo Integrated
Novo Integrated Sciences, Inc., headquartered in Bellevue,
Washington, owns Canadian and U.S. subsidiaries which provide, or
intend to provide, essential and differentiated solutions to the
delivery of multidisciplinary primary care and related wellness
products through the integration of medical technology,
interconnectivity, advanced therapeutics, diagnostic solutions,
unique personalized product offerings, and rehabilitative science.
Spokane, Washington-based Fruci & Associates II, PLLC, the
Company's auditor since 2022, issued a "going concern"
qualification in its report dated Dec. 14, 2023, citing that the
Company has incurred recurring losses from operations, has negative
cash flows from operating activities, and has an accumulated
deficit as of August 31, 2023. These factors, among others, raise
substantial doubt about the Company's ability to continue as a
going concern.
NUMBER HOLDINGS: Committee Taps Kelley Drye as Special Co-Counsel
-----------------------------------------------------------------
The official committee of unsecured creditors of Number Holdings
Inc., 99 Cents Only Stores LLC and their affiliates seek approval
from the U.S. Bankruptcy Court for the District of Delaware to hire
Kelley Drye & Warren LLP as its special co-counsel.
The firm will render these services:
(a) advise and represent the Committee in connection with
matters relating to the Debtors' real estate and leasehold
interests arising in these Cases;
(b) prepare, on behalf of the Committee, any pleadings,
including motions, memoranda, complaints, objections, and responses
relating to the foregoing; and
(c) perform such other legal services as may be required or
are otherwise deemed to be in the interests of the Committee in
accordance with the Committee's powers and duties as set forth in
the Bankruptcy Code, Bankruptcy Rules, or other applicable law.
Kelley Drye's current standard hourly rates are:
Partners $800 to $1,375
Special Counsel $665 to $975
Associates $530 to $870
Paraprofessionals $290 to $375
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
The following is provided in response to the request for additional
information set forth in Parapgraph D.1 of the Appendix B
Guidelines.
Question: Did you agree to any variations from, or alternatives
to, your standard or customary billing arrangements for this
engagement?
Answer: No.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic location of the
bankruptcy case?
Answer: No.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments the
12 months prepetition. If your billing rates and material financial
terms have changed post-petition, explain the difference and the
reasons for the difference.
Answer: Kelley Drye did not represent the Committee in the 12
months prepetition. Kelley Drye has represented committees in the
12 months prepetition in other bankruptcy cases.
Jason Adams, Esq., a partner at Kelley Drye & Warren 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:
Jason R. Adams, Esq.
Robert L. LeHane, Esq.
Jennifer D. Raviele, Esq.
KELLEY DRYE & WARREN LLP
3 World Trade Center
175 Greenwich Street
New York, NY 10007
Telephone: (212) 808-7800
Facsimile: (212) 808-7897
Email: jadams@kelleydrye.com
rlehane@kelleydrye.com
jraviele@kelleydrye.com
About Number Holdings
Founded in 1982, 99 Cents Only Stores LLC -- http://www.99only.com/
-- operate over 370 "extreme value" retail stores in California,
Arizona, Nevada and Texas under the business names "99¢ Only
Stores" and "The 99 Store." The Company offers its customers a wide
array of quality products -- from everyday household items, to
fresh produce, deli, and other grocery items, to an assortment of
seasonal and party merchandise -- many of which are still priced at
or below 99.99 cents. The Company's stores are primarily located in
urban areas and underserved communities, many of which lack close
access to traditional grocery stores.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-10719) on April 7,
2024. In the petition signed by Christopher J. Wells, as chief
restructuring officer, the Debtor disclosed up to $10 billion in
both assets and liabilities.
Judge Kate Stickles oversees the case.
The Debtors tapped Milbank LLP as general bankruptcy counsel,
Morris, Nichols, Arsht & Tunnel LLP as Delaware bankruptcy counsel,
Jefferies LLC as investment banker, Alvarez & Marsal North America,
LLC as financial advisor, Hilco Merchant Resources, LLC and Hilco
Real Estate, LLC as retail consultant and real estate consultant,
and Kroll Restructuring Administration LLC as claims and noticing
agent.
ORIGIN AGRITECH: Hires Enrome LLP to Replace BF Borgers as Auditor
------------------------------------------------------------------
Origin Agritech Limited reported in a Form 6-K filed with the
Securities and Exchange Commission that the Company has appointed
Enrome LLP, 143 Cecil St, #19-03/04, GB Building, Singapore 069542,
a PCAOB qualified firm, as its registered independent accounting
firm, effective May 30, 2024, in replacement of B.F. Borgers CPA
PC, to re-audit the Company's consolidated financial statements as
of and for the fiscal years ended Sept. 30, 2022 and 2023 and to
audit the consolidated financial statements as of and for the
fiscal year ending Sept. 30, 2024. The appointment of Enrome has
been approved by the audit committee of the Board of Directors and
the Board.
During the Company's two most recent fiscal years and through May
30, 2024, neither the Company nor anyone acting on the Company's
behalf consulted Enrome with respect to any of the matters or
reportable events set forth in Item 16F(a)(2)(i) and (ii) of the
Form 20-F.
On May 7, 2024, Origin Agritech Limited had terminated B.F. Borgers
CPA PC as the registered independent accounting firm for the
financial statements of the Company, due to the Securities and
Exchange Commission enforcement action against that firm.
About Origin Agritech
Headquartered in Beijing, China, Origin Agritech Limited, along
with its subsidiaries, is focused on agricultural biotechnology,
operating in the PRC. The Company's seed research and development
activities specialize in crop seed breeding and genetic
improvement. Origin believes that it has built a solid capacity
for seed breeding technologies, including marker-assisted breeding
and doubled haploids technologies, which it believes, along with
its rich germplasm resources, will allow it to become a significant
seed technology company in China.
Lakewood, Colorado-bsaed B F Borgers CPA PC, the Company's auditor
since 2020, issued a "going concern" qualification in its report
dated Feb. 15, 2024, citing that the Company incurred recurring
losses from operations, has net current liabilities and an
accumulated deficit that raise substantial doubt about its ability
to continue as a going concern.
OVG BUSINESS: S&P Assigns 'B' ICR on Debt Refinancing
-----------------------------------------------------
S&P Global Ratings assigned its 'B' issuer credit rating to venue
services and hospitality management company, OVG Business Services
LLC (OVG). At the same time, S&P assigned its 'B' issue-level
rating and '3' recovery rating to the proposed senior secured
credit facilities. The '3' recovery rating on the senior secured
credit facilities indicates its expectation of meaningful (50%-70%;
rounded estimate: 65%) recovery for lenders in the event of a
payment default.
The stable outlook reflects S&P's expectation that OVG will exhibit
steady revenue and earnings growth over the next 12 months on
favorable demand trends in the live entertainment industry and
contributions from its fiscal 2024 acquisitions and expand margins
on cost management and efficiencies such that adjusted leverage
improves to 7x from about 8x in fiscal 2024.
OVG's operational stability is underpinned by positive secular
trends in live entertainment, and its full-service offering's value
proposition with long-term contracts which enhance revenue
predictability. S&P said, "Although the live entertainment industry
is susceptible to macroeconomic downturns and declines in
discretionary spending, which could constrain OVG's operating
performance, we expect consumer spending on experiences to remain
resilient over the next two years given supportive social trends
for music and sport events, resulting in growing ticketing
revenues. In addition, we expect OVG to benefit from clients
continuing to outsource the management of its venues to reduce
budgetary pressures and to enhance revenue stream through multi-use
venues." Venue management and food and beverage contracts typically
have 5-10 year terms. OVG's top 10 clients' contracts have 4.4
years weighted average remaining contract life, and represent about
11 years of average length of relationships. This, along with the
company's contracts with Oak View's owned and operated venues,
including over 30 years of contract terms provides good revenue
visibility.
S&P said, "Our business risk assessment incorporates OVG's
favorable market position and growth prospects, yet small base,
lower margins, and limited geographic diversity compared to peers.
OVG primarily operates in the U.S., which accounts for roughly 85%
of revenues and EBITDA. The company's competition include some
companies with greater financial resources across the highly
competitive venue and event management, food and services
hospitality, and event ticketing, booking and seating verticals
within the venue services industry. The company's closest
competitor that will offer a comparable full-service offering model
will be the new entity formed when the pending acquisition of 'B'
rated ASM Global Parent Inc. by Legends Hospitality LLC (not rated)
is completed. ASM is the largest venue management company in the
world (with more than 350 managed venues in 21 different countries)
and provides a full range of services, including event booking,
staffing, and human resources, facility maintenance, food and
beverage, sponsorship sales, and financial management.
Nevertheless, OVG's market position is bolstered by long-standing
business relationships, content partnerships, deep industry
expertise and strategic alliances, facilitating high contract
renewal rates. In addition, the full service platform supports
cross-selling opportunities that further contribute to the
company's high contract renewal rates. We forecast OVG's S&P Global
Ratings adjusted EBITDA margin of about 13% in fiscal 2025, below
ASM's current EBITDA margin in the low-20% area and outside of the
20%-30% range we view as industry average for leisure and sports
companies. OVG's lower margin reflects its revenue mix, which is
skewed toward its Hospitality (food and beverage services) segment,
which has lower margins and accounted for roughly 50% of revenues
and EBITDA in fiscal 2023."
OVG has a limited operating track record and an acquisitive growth
strategy, which has inherent execution and integration risks. While
parent company Oak View Group was founded in 2015, OVG was formed
in August 2021 with the acquisition of Spectra Holdco LLC, a food
service, hospitality, and venue management service provider. The
acquisition substantially increased OVG's scale, service offerings,
and geographic footprint. Since then, the company has completed
four acquisitions totaling around $250 million which, along with
recovery from the pandemic, drove the company's growth in 2023. S&P
expects the company to allocate some of its excess cash on hand and
free operating cash flow toward business investments and future
acquisitions.
S&P said, "We view OVG's parent company's preferred stock as debt
which increases OVG's financial risk. Silver Lake Partners owns
preferred stock that is held at the ultimate parent, OVG Holdings
LLC (Holdings). In our view, the preferred equity is debt-like
based on our criteria. It is uncertain at this time how the company
will refinance the preferred equity; however, we note that OVG's
credit agreement does not provide flexibility under the restricted
payment covenant specifically for cash payments to the parent to
fulfill debt or debt-like obligations in addition to the general
restricted payment flexibility."
OVG's S&P Global Ratings-adjusted debt to EBITDA including
preferred stock is high at around 7x in 2025, but free operating
cash flow (FOCF) to debt is sufficient for the rating at 7%. The
proposed transaction represents $150 million of incremental term
loan and the company plans to upsize its revolving credit facility
to $250 million from its existing $50 million. S&P said, "We
forecast adjusted debt to EBITDA of about 7x in fiscal 2025 (ended
June 30) when including the preferred equity, pro forma for the
proposed financing transaction. Excluding the preferred equity,
leverage is estimated around 4x. In addition, the company generates
good FOCF given its low capital spending requirements. As such, we
forecast FOCF to debt (including preferred equity) at 7% in 2025.
We expect credit metrics to strengthen over the next 12 months,
driven by organic growth and acquisitions. In addition to the
preferred stock, we include operating and finance leases and
contingent payments for acquisitions to our credit metrics."
S&P said, "We assume OVG will exercise good financial discipline
and adhere to its stated financial policies despite its majority
ownership by financial sponsor Silver Lake Partners, as well as its
parent company's ownership and investment in multiple arenas. OVG
is majority owned by Silver Lake Partners through the sponsor's
ownership of its parent company, Oak View Group LLC, which also
owns and operates numerous arenas through majority and minority
interests in these arenas. OVG is established as a separate credit
group from Oak View Group LLC (Oak View). However, OVG's financial
performance and funding are independent from Oak View and its owned
and operated arena entities (O&O). OVG does not commingle funds, or
depend on Oak View or O&O, which are financed separately. Each
individual O&O entity is a project-specific, special-purpose
vehicle, which is financed with nonrecourse, project financing debt
that it structures to be consistent with investment-grade rating
agency criteria, and there are no downstream guarantees to these
O&O facilities. Therefore, there are no cross defaults or cross
guarantees between OVG and O&O. It is also our understanding that
there is no other debt within Oak View and O&O other than this
nonrecourse debt.
"We also expect OVG to maintain a disciplined financial policy that
includes its plans to deleverage to its 3x-4x range longer term,
which would correspond to about 1.5x-2x turns higher of S&P Global
Ratings-adjusted debt to EBITDA under our methodology. We also
believe there is a strong economic basis for Oak View to preserve
OVG's credit quality given its majority ownership and we do not
expect that, in the event of a default of other Oak View entities,
this would directly lead to a default of OVG.
"The stable outlook reflects our expectation that OVG will exhibit
good revenue and earnings growth over the next 12 months on
favorable demand trends in the live entertainment industry and
contributions from its fiscal 2024 acquisitions, and improve
margins on cost management and efficiencies such that adjusted
leverage including preferred stock improves to 7x from about 8x in
fiscal 2024. We expect the company will continue to make tuck-in
acquisitions and successfully integrate these into its platform to
bolster its full-service offerings and growth.
"We could lower our rating on OVG if debt to EBITDA remains above
7x and its FOCF to debt declines below 5% on a sustained basis."
This could occur if OVG:
-- Pursues a more aggressive financial policy; for example, if it
undertakes debt-financed shareholder returns or sizable
acquisitions; or
-- Significantly underperforms compared with S&P's base-case
assumptions due to weakening economic conditions, intensifying
competition, reputational damage, increased regulatory scrutiny, or
the inability to pass on higher operating costs effectively.
Although unlikely within the next 12 months, S&P could raise OVG's
rating by one notch if:
-- Operating performance continues to increase through organic and
inorganic growth that improves scale and geographic diversity, and
margin increases to above 20% that are more comparable to peers;
or
-- The company addresses its maturities of the preferred equity
such that S&P Global Ratings-adjusted debt to EBITDA improves to
and remain below 5x on a sustained basis.
Governance factors are a moderately negative consideration, as it
is for most rated entities owned by private-equity sponsors. S&P
believes the company's highly leveraged financial risk profile
points to corporate decision-making that prioritizes the interests
of controlling owners. This also reflects private-equity sponsors'
generally finite holding periods and focus on maximizing
shareholder returns. OVG is majority owned by Silver Lake and its
board representation comprises of members of the co-founders'
family and Silver Lake.
PATRIOT LINEN: Court OKs DIP Loan From Capital Credit
-----------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
Los Angeles Division, authorized Patriot Linen Services, on an
interim basis, to continue using cash collateral and its
post-petition DIP financing according to a prepetition Factoring
Agreement with Capital Credit, Incorporated.
As previously reported by the Troubled Company Reporter, Patriot
requires the use of cash collateral to operate its business, and
pay employees, rent and other expenses.
Beginning around February 23, 2022, and up and until the filing of
the Chapter 11 petition, Capital Credit and the Debtor -- first
under its prior name Taft Linen Services LLC and then after April
22, 2022, when the Debtor formally changed its name to its present
name -- entered into a Factoring Agreement, which provides for the
sale of certain accounts by the Debtor to CCI under an agreed
formula.
Under the Factoring Agreement, the Debtor agreed to offer its
Accounts -- what the parties' agreement characterizes as a-for sale
to CCI -- and CCI agreed, in its discretion, to purchase those
Accounts and advance funds for the Debtor's operating expenses. The
Factoring Agreement was amended four times.
The Debtor acknowledges that:
(1) its repayment obligations under the Pre-Petition
Agreements are secured by liens and security interest in all of the
Collateral, which includes the Debtor's pre-petition cash and cash
equivalents by virtue of a UCC-1 Financing Statement, filed on
February 23, 2022 with the California Secretary of State as Filing
Number U220166959639), as amended on May 9, 2023 and May 10, 2023,
respectively, by the filing of two separate UCC-3 Financing
Statement Amendments bearing Filing Numbers U230032807121 and
U230033169632;
(2) all of the pre-petition cash proceeds from collection of
the Debtor's pre-petition Accounts and the sale of Debtor's
pre-petition Inventory constitute such Cash Collateral within the
meaning of 11 U.S.C. section 363(a), in which CCI has a perfected
interest; and
(3) as of the Petition Date, the Debtor was indebted to CCI in
the approximate amount of $650,000 which amount is subject to
review by the parties in interest and adjustment.
On an interim basis, the Court provisionally found -- subject to
any approval or disapproval at the Final Hearing based on the
Debtor's DIP Motion and other filings to date, that:
(1) CCI holds a valid, perfected and senior lien in the
Debtor's cash collateral; and
(2) CCI has conditioned the factoring upon the grant of
replacement-duly perfected security interest in the Collateral, for
which CCI will have a senior, post-petition lien on all Accounts, a
post-petition lien against the other Collateral to the same extent
and priority as it possessed prepetition and the lien will not
include a lien upon any avoidance actions or recoveries under
Chapter 5 of the U.S. Bankruptcy Code nor upon the estate's rights
under section 724(a) or section 552(b).
As security for the Obligations, under the DIP Factoring Agreement,
CCI is granted, pursuant to 11 U.S.C. Sections 364(c), valid, first
priority, binding enforceable and perfected security interests in
and liens on, and administrative priority in:
(i) all of the Debtor's right, title and interest in and to
all post-petition property to the same extent and priority as it
possessed pre-petition, now owned or hereafter acquired but not
avoidance actions or recoveries under Chapter 5 nor upon
theestate's rights under Section 724(a) nor 552(b), provisionally
and subject to approval or disapproval at the final hearing, and
not assets in which other creditors hold properly perfected
purchase money security interests; and
(ii) all proceeds of the foregoing.
CCI is also granted a valid and duly perfected security interest in
Collateral as defined in the DIP Factoring Agreement. CCI will have
a senior lien on all assets of the Debtor for which no third party
has a priority perfected lien except that it will be junior to the
extent of direct proceeds of any pre-petition assets that a third
party had a priority perfected pre-petition lien.
A final hearing on the matter is set for June 25, 2024, at 1 p.m.
A copy of the order is available at https://urlcurt.com/u?l=eF3OsX
from PacerMonitor.com.
About Patriot Linen Services
Patriot Linen Services LLC offers linen cleaning services in
Compton, California. The Debtor sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-12114)
on March 19, 2024, with $3,219,381 in assets and $2,343,094 in
liabilities. Mehrad Golshani, the Debtor's member and manager,
signed the petition.
Judge Neil W. Bason presides over the case.
David Tran, Esq., at Prosperous Law Group, and Steven R. Fox, Esq.,
at The Fox Law Corporation, represent the Debtor as bankruptcy
co-counsel.
Steven N. Kurtz, Esq., at Levinson, Arshonsky Kurtz & Komsky, LLP,
represents the lender, Capital Credit Incorporated.
Mark Sharf is the Sub-Chapter V Trustee.
PHUNWARE INC: Signs $120M Distribution Agreement With Canaccord
---------------------------------------------------------------
Phunware, Inc., announced that it has filed a prospectus supplement
to its existing shelf registration statement on Form S-3 with the
Securities and Exchange Commission, under which it may offer and
sell shares of its common stock having an aggregate offering price
of up to $120 million from time to time through an "at-the-market"
("ATM") equity offering program. No additional capacity is being
added to the Registration Statement as a result of the ATM
program.
Phunware has entered into an Equity Distribution Agreement relating
to the offer and sale of shares of its common stock through
Canaccord Genuity LLC, as representative of the several sales
agents including Canaccord Genuity, Roth Capital Partners, LLC and
The Benchmark Company, LLC.
Canaccord Genuity may sell shares by any method permitted by law
deemed to be an "at-the-market offering" as defined in Rule
415(a)(4) of the Securities Act of 1933, as amended. Sales may be
made at market prices prevailing at the time of the sale, at prices
related to prevailing market prices or at negotiated prices and, as
a result, sales prices may vary. The number of shares to be sold,
if any, under the ATM program will depend on, among other factors,
market conditions, the Company's capital needs, and the anticipated
benefits to Phunware and its stockholders.
The prospectus supplement filed on June 4, 2024, adds to, updates
or otherwise changes information contained in the existing
prospectus contained in the Registration Statement. Prospective
investors should read the prospectus, the prospectus supplement and
other documents Phunware has filed with the SEC (some of which are
incorporated by reference into the prospectus and prospectus
supplement) for more complete information about Phunware and the
ATM program, including the risks associated with investing in
Phunware. Investors may obtain copies of the prospectus supplement
and accompanying prospectus relating to the offering without charge
by visiting the SEC's website at www.sec.gov. Alternatively,
potential investors may contact Canaccord Genuity, who will arrange
to provide such investors these documents at: prospectus@cgf.com.
In connection with any offerings that may from time to time be
conducted under the terms of the Equity Distribution Agreement,
Phunware entered into an Amendment to Securities Purchase Agreement
dated effective June 3, 2024, with certain majority purchasers
thereunder, which amends its Securities Purchase Agreement dated
Jan. 18, 2024. The amendment provides that the participation
rights with respect to subsequent financings shall not apply to,
among others, issuances pursuant to the Equity Distribution
Agreement with Canaccord Genuity.
As previously disclosed on Feb. 4, 2022, the Company entered into
an At Market Issuance Sales Agreement with H.C. Wainwright & Co.,
LLC pursuant to which the Company could offer and sell, from time
to time, shares of its common stock, par value $0.0001 per share,
for aggregate gross proceeds of up to $100,000,000, through or to
Wainwright, as agent or principal.
On May 29, 2024, the Company delivered written notice to Wainwright
of the Company's election to terminate the Sales Agreement
effective as of June 3, 2024, five days after delivery of the
notice. The Company does not expect to incur any material early
termination penalties in connection with the termination of the
Sales Agreement.
About Phunware
Headquartered in Austin, Texas, Phunware, Inc. --
http://www.phunware.com-- offers a fully integrated software
platform that equips companies with the products, solutions, and
services necessary to engage, manage, and monetize their mobile
application portfolios globally at scale.
Phunware reported a net loss of $52.78 in 2023, a net loss of
$50.89 million in 2022, a net loss of $53.52 million in 2021, a net
loss of $22.20 million in 2020, a net loss of $12.87 million in
2019, a net loss attributable to common shares of $923,180 for the
year ended Nov. 30, 2018, and a net loss attributable to common
shares of $307,274 for the year ended Dec. 30, 2017. As of Dec.
31, 2023, the Company had $6.73 million in total assets, $18.18
million in total liabilities, and a total stockholders' deficit of
$11.46 million.
PIZZA PALS: Wins Cash Collateral Access on Final Basis
------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas,
Dallas Division, authorized Pizza Pals LP to use cash collateral on
a final basis, in accordance with the budget, with a 5% variance.
As previously reported by the Troubled Company Reporter, the Debtor
requires the use of cash collateral for materials, payroll and
general operating expenses. Revenue is generated through the
Debtor's pizza parlor business.
A search in the Texas Secretary of State shows an allegedly secured
position is held by the Internal Revenue Service (UCC Filing No.
23-0046035811). A search in the Colorado Secretary of State shows
that allegedly secured positions are held by:
(1) U.S. Small Business Administration (UCC Filing No.
20202087542);
(2) Corporation Service Company, as Representative (UCC Filing No.
20232052403);
(3) C T Corporation System, as Representative for Unknown Creditor
(UCC Filing No. 20232062610);
(4) ASSN Company (UCC Filing No. 20232085577);
(5) CHTD (UCC Filing No. 20232086233);
(6) Corporation Service Company, as Representative (UCC Filing No.
20232110404);
(7) Superfast Capital Inc. (UCC Filing No. 20232113644);
(8) CE Financial Solutions LLC (UCC Filing No.
20242003324/20242003336).
As to Pizza Pals of Lakewood LLC, there are no liens recorded with
the Texas Secretary of State. A search in the Colorado Secretary of
State shows that allegedly secured positions are held by (1) CHTD
Company (UCC Filing No. 20232086233) and (2) C T Corporation
System, as Representative for Unknown Creditor (UCC Filing No.
20232062610).
The loans are secured by current and future accounts receivables,
various pieces of inventory and equipment at Debtors' businesses,
pursuant to the filed UCC liens that have been filed.
The court ruled as adequate protection for the use of cash
collateral, the lenders are granted replacement liens on all
post-petition cash collateral and postpetition acquired property to
the same extent and priority they possessed as of the Petition Date
only as to the diminution in value of their lien.
The holders of allowed secured claims with a perfected security
interest in cash collateral will be entitled to a replacement lien
in post-petition accounts receivable, contract rights, and deposit
accounts to the same extent allowed and in the same priority as
those interests held
as of the Petition Date.
A copy of the order is available at https://urlcurt.com/u?l=Hqz1tV
from PacerMonitor.com.
About Pizza Pals LP
Pizza Pals LP owns and operates an Italian chain buffet.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tex. Case No. 24-31251) on April 30,
2024.
In the petition signed by Pat Williamson, partner, the Debtor
disclosed $41,144 in assets and $2,777,727 in debts.
Judge Scott W. Everett oversees the case.
Robert C. Lane, Esq., at the Lane Law Firm, represents the Debtor
as legal counsel.
POLAR POWER: Posts $2.1 Million Net Loss in Q1 2024
---------------------------------------------------
Polar Power, Inc. filed with the Securities and Exchange Commission
its Quarterly Report on Form 10-Q reporting a net loss of $2.1
million on $1.8 million in net sales for the three months ended
March 31, 2024, compared to a net loss of $1.1 million on $4.2
million in net sales for the three months ended March 31, 2023.
As of March 31, 2024, the Company had a cash balance of $212,000,
with borrowing capacity of $216,000, stockholders' equity of $11
million, and working capital of $9.7 million. The long-term
continuation of the Company's business plan is dependent upon the
generation of sufficient revenues from its products to offset
expenses.
In the event that the Company does not generate sufficient cash
flows from operations and is unable to obtain funding, the Company
will be forced to delay, reduce, or eliminate some or all of its
discretionary spending, which could adversely affect the Company's
business prospects, ability to meet long-term liquidity needs or
ability to continue operations.
As of March 31, 2024, the Company has $23.9 million in total assets
and $12.8 million in total liabilities.
A full-text copy of the Company's Form 10-Q is available at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1622345/000149315224019861/form10-q.htm
About Polar Power
Gardena, Calif.-based Polar Power, Inc. designs, manufactures and
sells direct current, or DC, power systems to supply reliable and
low-cost energy to off-grid, bad-grid and backup power, electric
vehicle charging, and nano-grid applications.
As of December 31, 2023, the Company has $25.3 million in total
assets, $12 million in total liabilities, and $13.2 in total
stockholders' equity.
Los Angeles, California-based Weinberg & Company, P.A, the
Company's auditor since 2016, issued a "going concern"
qualification in its report dated April 1, 2024, citing that during
the year ended December 31, 2023, the Company incurred a net loss
and utilized cash in operations. These conditions raise substantial
doubt about the Company's ability to continue as a going concern.
PORTUGUESE BEND: Creditors to Get Proceeds From Liquidation
-----------------------------------------------------------
Portuguese Bend Distilling, LLC, filed with the U.S. Bankruptcy
Court for the Central District of California a Disclosure Statement
and Plan of Reorganization dated May 16, 2024.
The Debtor is organized as a limited liability corporation. The
Debtor conducted 100 percent of its business activity in Long
Beach, California since August 22, 2017.
The sale of the Debtor's business assets represented the best
opportunity to maximize the value of the Debtor's estate for all
interested parties. The Court approved the sale of the business
assets, an related assets. The sale to Smoke and Fire Eatery, LLC
("S&F") in the amount of $265,000 was approved by Order of the
Court on October 26, 2023, however, the sale has not closed as of
march 27, 2024 due to S&F still waiting for approval of the ABC for
the transfer of the Debtor's liquor licenses.
S&F has leased the former premises of the Debtor, and has paid the
Landlord its monthly rent since the sale hearing, and therefore the
Debtor is very optimistic that it intends to close the sale once
approval is obtained. If the sale does not close by June 30, 2024,
the Debtor will either obtain another buyer for the FFE or conduct
an auction of the FFE.
The proceeds will be paid to the bankruptcy estate to fund the
Plan. In addition, the Debtor has some additional equipment and
inventory at its off-site storage facility ("Storage Assets") which
were not part of the sale to S&F and expects to sell those assets
after the effective date to obtain additional funds for
distribution to creditors. Although the retail value of the Storage
Assets is well over $100,000, the Debtor estimates at auction its
net proceeds will be approximately $25,000 for these assets.
Class #2b consists of General Unsecured Claims. Each member of
Class #2b will be paid a pro rata share of a fund totaling $290,000
created by the Debtor's payment. Pro rata means the entire fund
amount divided by the total of all allowed claims in this class.
The allowed unsecured claims total $584,017.
The Plan is a liquidation Plan, with the net sale proceeds,
accounts receivables and work in process being distributed to
creditors pursuant to the terms of the Plan.
A full-text copy of the Disclosure Statement dated May 16, 2024 is
available at https://urlcurt.com/u?l=kXHLTI from PacerMonitor.com
at no charge.
Attorney for the Debtor:
Michael S. Kogan, Esq.
KOGAN LAW FIRM, APC
1849 Sawtelle Blvd., Suite 700
Los Angeles, CA 90025
Tel: (310) 954-1690
Email: mkogan@koganlawfirm.com
About Portuguese Bend Distilling
Portuguese Bend Distilling, LLC, operates a bar, restaurant and
craft distillery at 300 N. Promenade, Long Beach, Calif.
The Debtor filed Chapter 11 petition (Bankr. C.D. Calif. Case No.
23-15416) on Aug. 23, 2023, with $1 million to $10 million in both
assets and liabilities. Judge Vincent P. Zurzolo oversees the
case.
Michael S. Kogan, Esq., at Kogan Law Firm, APC serves as the
Debtor's bankruptcy counsel.
PRIMARY PRODUCTS: S&P Affirms 'BB-' ICR, Outlook Stable
-------------------------------------------------------
S&P Global Ratings affirmed its 'BB-' issuer credit rating on
Primary Products Investments LLC (Primient), with a stable
outlook.
S&P said, "At the same time, we affirmed our 'BB-' issue-level
ratings on the company's $100 million senior secured cash flow
revolver and $1.06 billion first-lien term loan. We also assigned a
'BB-' issue-level rating to Primary Products Finance LLC’s
proposed $175 million incremental first-lien term loan. The
recovery rating on the first-lien debt is '3', indicating our
expectation of meaningful (50% rounded estimate) recovery in the
event of a payment default.
"The stable outlook reflects our expectation that Primient's
financial policies will remain consistent under the full ownership
and control of KPS, including maintaining leverage below 4x."
KPS Capital Partners L.P. has agreed to acquire Tate & Lyle's
remaining 49.7% ownership interest in Primary Products Investments
LLC (Primient) for $350 million. The transaction purchase price
will be funded with a $175 million incremental first-lien term loan
and new equity from KPS.
The buyout will be only modestly leveraging as roughly half the
purchase price will be equity financed. The transaction will result
in KPS having full ownership and control of Primient, and follows
its initial 50.1% purchase of the company that was completed on
April 1, 2022. Leverage should remain comfortably below our current
downgrade trigger of 4.5x at transaction close, in part because of
KPS' increased equity investment that will fund about half the
purchase price. S&P estimates S&P Global Ratings-adjusted leverage
at transaction close will increase to slightly above 4x from about
3.5x as of March 31, 2024, and forecast modest deleveraging
thereafter, such that leverage is sustained below 4x.
S&P said, "We expect financial policies will remain consistent
under KPS' full ownership. The affirmation incorporates our view
that capital allocation decisions will not change after KPS assumes
full ownership of the company, such that leverage will be managed
below 4x. Importantly, the company has demonstrated a track record
of maintaining leverage below 4.5x over the past two years since
KPS purchased a majority interest and has had board control, while
executing its capital allocation strategy, which is centered on
investing in its core operating assets to improve efficiencies.
Moreover, leverage remained within expectations despite some
operational headwinds in 2023.
"We believe the company will remain centrally focused on
modernizing and upgrading its production capabilities to improve
operating efficiencies and drive increased profitability and cash
flow. This will require ongoing elevated capital expenditures
(capex) over the next couple of years following a period of
underinvestment prior to KPS ownership. As such, we assume the
company will use operating cash flow over the next couple of years
to fund the elevated capex, keeping annual free operating cash flow
(FOCF) fairly modest at under $100 million, which is sufficient to
fund dividends for tax distributions as it is incorporated as a
limited liability company. We assume the company will prioritize
organic growth investment over any acquisitions or discretionary
dividends for the next 18 to 24 months.
"Because Primient does not have a stated leverage target, its
financial policies may become more aggressive once this capital
investment phase is largely complete, after which the company may
prioritize discretionary dividends or mergers and acquisitions
(M&A), which could weigh on the ratings depending on their
magnitude. Our current expectation is that the company would
operate with leverage below 4x and would be disciplined with
valuations of any future M&A given the fairy modest multiple KPS
has paid for Premient. Based on this expectation, leverage should
remain below 4.5x for any future M&A as was the case with this
transaction.
"We expect modest profit growth will support slow but steady
deleveraging. Primient faced operational hurdles in fiscal 2023
(ended March) and into fiscal 2024 because of manufacturing
inefficiencies (in part due to outdated manufacturing equipment)
and volume declines in categories such as industrial starches and
acidulants that had been subject to significant customer destocking
industrywide. We believe these destocking trends have largely ended
and momentum is picking up in the company’s starches and
acidulants portfolio, while it continues to experience solid demand
for its core sweeteners categories. As a result, we expect the
company will generate volume growth of 3%-5% in fiscal 2025. The
stronger volumes combined with improving operating efficiencies
from its capital investments, should help drive EBITDA growth over
the next couple years. As a result, we expect leverage will improve
modestly below 4x in fiscal 2025 and approach 3.5x thereafter.
"The stable outlook reflects our expectation that Primient's
financial policies will remain consistent under the full ownership
and control of KPS. This includes our expectation that the company
will sustain leverage below 4x over the next couple of years as it
continues to prioritize operating efficiency initiatives over
shareholder returns."
S&P could lower the rating if Primient sustains debt to EBITDA
above 4.5x. This could occur if the company:
-- Demonstrates more aggressive financial policies, including
through debt-financed acquisitions or dividends; or
-- Faces higher-than-expected operating costs and sustained weak
capacity utilization rates, possibly because of challenging labor
market conditions or supply chain constraints.
While unlikely within the next 12 months, S&P could raise the
rating if:
-- Primient improves and sustains leverage below 3.5x; and
-- KPS sells at least 20% of its ownership stake in the company
and S&P expects it will relinquish control over the intermediate
term.
PROSOMNUS INC: Hires Gavin/Solmonese LLC as Financial Advisor
-------------------------------------------------------------
Prosomnus, Inc. seeks approval from the U.S. Bankruptcy Court for
the District of Delaware to employ Gavin/Solmonese LLC as financial
advisor.
The firm's services include:
a. assisting the Debtors with management of the bankruptcy
process, including the Debtors' reporting requirements;
b. reviewing and analyzing the businesses, management,
operations, properties, financial condition and prospects of the
Debtors;
c. reviewing and analyzing historical financial performance, and
transactions between and among the Debtors, their creditors,
affiliates and other entities;
d. reviewing the assumptions underlying the business plans and
cash flow projections for the assets involved in any potential
asset sale or plan of reorganization;
e. determining the reasonableness of the projected performance
of the Debtors, both historically and future;
f. reviewing and analyzing all material contracts and
agreements;
g. assisting and procuring and assembling any necessary
validations of asset values;
h. providing ongoing assistance to the Debtors and the Debtors'
legal counsel;
i. evaluating the Debtors' capital structure and making
recommendations to the Debtors with respect to the Debtors' efforts
to reorganize their business operations and/or confirm a
restructuring or liquidating plan;
j. assisting the Debtors in preparing documentation required in
connection with creating, supporting or opposing a plan and
participating in negotiations on behalf of the Debtors with any
groups affected by a plan;
k. providing ongoing analysis of the Debtors' financial
condition, business plans, capital spending budgets, operating
forecasts, management and the prospects for their future
performance; and
l. providing such other tasks as the Debtors or their counsel
may reasonably request in the course of exercise of the Debtors'
duties in these cases.
The firm will be paid at agreed-upon flat monthly fee of $150,000
per month.
The firm will be paid at these rates:
Shareholders $800 - $1,300 per hour
Associates $540 - 800 per hour
Paraprofessionals $200 - $450 per hour
The firm received a retainer in the amount of $150,000
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Edward T. Gavin, CTP, NCPM, a partner at Gavin/Solmonese LLC,
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:
Edward T. Gavin
Gavin/Solmonese LLC
1007 N. Orange Street, Suite 461
Wilmington, DE 19801
Tel: (302) 655-8997
Fax: (302) 655-6063
About ProSomnus, Inc.
ProSomnus, Inc., f/k/a LAAA Merger Corp., is an innovative medical
technology company that develops, manufactures, and markets its
proprietary line of precision intraoral medical devices for
treating and managing patients with obstructive sleep apnea.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case 24-10972) on May 7, 2024,
with $26,287,000 in assets as of Dec. 31, 2023 and $52,888,000 in
liabilities as of Dec. 31, 2023. Brian B. Dow, chief financial
officer, signed the petitions.
Judge John T. Dorsey presides over the case.
The Debtors tapped Shanti M. Katona, Esq., at POLSINELLI PC as
legal counsel; and GAVIN/SOLMONESE LLC as financial advisor.
The law firms of Kilpatrick Townsend & Stockton LLP and Morris
James LLP represent the Ad Hoc Crossover Group of Convertible
Noteholders.
PROSOMNUS INC: Hires Kurtzman Carson as Administrative Advisor
--------------------------------------------------------------
Prosomnus, Inc. seeks approval from the U.S. Bankruptcy Court for
the District of Delaware to employ Kurtzman Carson Consultants LLC
as administrative advisor.
The firm's services include:
a. assisting with, among other things, the preparation of the
Debtors' schedules of assets and liabilities, schedules of
executory contracts and unexpired leases and statements of
financial affairs;
b. assisting with, among other things, solicitation,
balloting, tabulation and calculation of votes, as well as
preparing any appropriate reports required in furtherance of
confirmation of any chapter 11 plan;
c. generating an official ballot certification and testifying,
if necessary, in support of the ballot tabulation results for any
chapter 11 plan(s) in the chapter 11 cases;
d. generating, providing and assisting with claims objections,
exhibits, claims reconciliation and related matters; and
e. providing such other claims processing, noticing,
solicitation, balloting and administrative services, but not
included in the Section 156(c) Application, as may be requested by
the Debtors from time to time.
The firm received from the Debtor a retainer of $30,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Evan Gershbein, executive vice president of Kurtzman's Corporate
Restructuring Services, 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:
Evan Gershbein
Kurtzman Carson Consultants, LLC
222 N. Pacific Coast Highway, 3rd Floor
El Segundo, CA 90245
Tel: (310) 823-9000
Fax: (310) 823-9133
Email: egershbein@kccllc.com
About ProSomnus, Inc.
ProSomnus, Inc., f/k/a LAAA Merger Corp., is an innovative medical
technology company that develops, manufactures, and markets its
proprietary line of precision intraoral medical devices for
treating and managing patients with obstructive sleep apnea.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case 24-10972) on May 7, 2024,
with $26,287,000 in assets as of Dec. 31, 2023 and $52,888,000 in
liabilities as of Dec. 31, 2023. Brian B. Dow, chief financial
officer, signed the petitions.
Judge John T. Dorsey presides over the case.
The Debtors tapped Shanti M. Katona, Esq., at POLSINELLI PC as
legal counsel; and GAVIN/SOLMONESE LLC as financial advisor.
The law firms of Kilpatrick Townsend & Stockton LLP and Morris
James LLP represent the Ad Hoc Crossover Group of Convertible
Noteholders.
PROSOMNUS INC: Hires Polsinelli PC as Bankruptcy Counsel
--------------------------------------------------------
Prosomnus, Inc. seeks approval from the U.S. Bankruptcy Court for
the District of Delaware to employ Polsinelli PC as counsel.
The firm's services include:
a. taking all necessary action to protect and preserve the
estates of the Debtors;
b. providing legal advice with respect to the Debtors' powers
and duties as Debtors in possession in the continued operation of
their business;
c. preparing on behalf of the Debtors, as debtors in
possession, necessary motions, applications, answers, orders,
reports, and other legal papers in connection with the
administration of the Debtors' estates;
d. assisting with any disposition of the Debtors' assets, by
sale or otherwise;
e. taking all necessary or appropriate actions in connection
with any plan of reorganization and related disclosure statement
and all related documents, and such further actions as may be
required in connection with the administration of the Debtors'
estates;
f. appearing in court and protecting the interests of the
Debtors before this Court;
g. reviewing all pleadings filed in the Chapter 11 Cases; and
h. performing all other legal services in connection with the
Chapter 11 Cases as may reasonably be required.
The firm will be paid at these rates:
Shareholders $800 to $1300 per hour
Associates $540 to 800 per hour
Paraprofessionals $200 to $450 per hour
The firm will be paid a retainer in the amount of $ 500,000
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Shanti Katona, Esq., the firm's attorney who will be providing the
services, disclosed in a court filing that she is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Shanti M. Katona, Esq.
Polsinelli PC
222 Delaware Avenue, Suite 1101
Wilmington, DE 19801
Tel: (302) 252-0924
Fax: (302) 252-0921
Email: mcoury@glankler.com
About ProSomnus, Inc.
ProSomnus, Inc., f/k/a LAAA Merger Corp., is an innovative medical
technology company that develops, manufactures, and markets its
proprietary line of precision intraoral medical devices for
treating and managing patients with obstructive sleep apnea.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case 24-10972) on May 7, 2024,
with $26,287,000 in assets as of Dec. 31, 2023 and $52,888,000 in
liabilities as of Dec. 31, 2023. Brian B. Dow, chief financial
officer, signed the petitions.
Judge John T. Dorsey presides over the case.
The Debtors tapped Shanti M. Katona, Esq., at POLSINELLI PC as
legal counsel; and GAVIN/SOLMONESE LLC as financial advisor.
The law firms of Kilpatrick Townsend & Stockton LLP and Morris
James LLP represent the Ad Hoc Crossover Group of Convertible
Noteholders.
PROSOMNUS INC: Taps Wilson Sonsini as Special Corporate Counsel
---------------------------------------------------------------
ProSomnus, Inc. and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Delaware to hire Wilson
Sonsini Goodrich & Rosati, P.C. as their special corporate
counsel.
The firm's services include providing general corporate and
securities related advice, board-related matters; assisting with
SEC filings and related public-company disclosure matters; and
assisting in negotiating, documenting and consummating certain
transactions that may arise out of these Chapter 11 Cases, such as
an equity financing and debt restructuring.
The firm will be paid at these hourly rates:
Partners $1,250 to $2,310
Associates $660 to $1,265
Counsel $1,165 to $1,800
Legal Staff $245 to $995
Erin Fay, a member of Wilson Sonsini, 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 through:
Erin R. Fay, Esq.
Wilson Sonsini Goodrich & Rosati, P.C.
222 Delaware Avenue, Suite 800
Wilmington, DE 19801-5225
Tel: (302) 502-8404
Email: efay@wsgr.com
About ProSomnus Inc.
ProSomnus, Inc., f/k/a LAAA Merger Corp., is an innovative medical
technology company that develops, manufactures, and markets its
proprietary line of precision intraoral medical devices for
treating and managing patients with obstructive sleep apnea.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case 24-10972) on May 7, 2024,
with $26,287,000 in assets as of Dec. 31, 2023 and $52,888,000 in
liabilities as of Dec. 31, 2023. Brian B. Dow, chief financial
officer, signed the petitions.
Judge John T. Dorsey presides over the case.
The Debtors tapped Shanti M. Katona, Esq., at POLSINELLI PC as
legal counsel; and GAVIN/SOLMONESE LLC as financial advisor.
The law firms of Kilpatrick Townsend & Stockton LLP and Morris
James LLP represent the Ad Hoc Crossover Group of Convertible
Noteholders.
QUIRCH FOODS: Moody's Cuts CFR to B3 & 1st Lien Term Loan to Caa1
-----------------------------------------------------------------
Moody's Ratings downgraded the corporate family rating of Quirch
Foods Holdings, LLC to B3 from B2 and its probability of default
rating to B3-PD from B2-PD. Concurrently, Moody's downgraded
Quirch's senior secured first lien term loan rating to Caa1 from
B3. The rating outlook is maintained at stable.
The downgrades reflect Quirch's reduced operating performance which
follows three years of increasing debt levels and has resulted in
weak credit metrics. Leverage is currently high with debt/EBITDA
of about 6.4x while EBITA to interest is about 1.5x for the LTM
ended March 31, 2024. Moody's expects Quirch to focus on reducing
its debt levels which when combined with a modest increase in
EBITDA should result in debt to EBITDA improving but remaining high
at about 6.0x while EBITA to interest remains relatively flat over
the next 12 months.
RATINGS RATIONALE
Quirch's B3 corporate family rating reflects the very competitive
and price sensitive nature of food retailing, which accounts for
most of the company's sales. The rating also reflects Quirch's
aggressive financial strategies which has resulted in debt
consistently increasing over the past three years to support an
acquisition and dividends to its owners. Quirch's credit
protection measures weakened in 2023 due to high debt combined with
reduced earnings driven by lower pricing for all proteins in the
company's core distribution business and high labor costs.
Debt/EBITDA is currently high at 6.4x for the LTM ended March 31,
2024 and could increase further should the company borrow more to
support its growth initiatives or returns of value to shareholders.
Moody's expects debt to EBITDA to improve to about 6.0x over the
next 12 months as the company focuses on debt repayment and a
modest improvement in earnings. EBITA to interest will remain
relatively flat at 1.5x for the same period. Earnings will benefit
from Quirch's ongoing initiatives related to its business
optimization program. Some of these initiatives include improved
warehouse productivity and network optimization. Quirch's ratings
are supported by increased demand for affordable proteins as well
as its attractive market niche and increased scale in the fast
growing ethnic grocery business.
Quirch has adequate liquidity, which is largely supported by
roughly $175 million available under the company's $275 million
asset based lending ("ABL") revolver (not rated) at March 31, 2024.
The revolver expires in October 2026. Moody's estimates that the
company will generate free cash flow of about $5-$10 million per
annum.
The stable outlook reflects Moody's expectation that the company
will continue to grow organically while maintaining adequate
liquidity.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded if the company demonstrates sustained
growth in sales, and profitability, maintains adequate liquidity
and generates consistently positive free cash flow. Quantitatively,
ratings could be upgraded if debt/EBITDA is sustained below 5.0x
and EBITA/interest expense is sustained above 1.75x with a
financial strategy that supports metrics remaining at these
levels.
Ratings could be downgraded if operating performance continues to
deteriorate. Ratings could also be downgraded if debt/EBITDA is
sustained above 6.0x or EBITA/interest is sustained below 1.25x or
if the company fails to generate consistently positive free cash
flow, liquidity deteriorates or if its financial strategies do not
prioritize debt reduction.
Quirch Foods Holdings, LLC is a leading distributor of proteins to
independent ethnic food retailers. Quirch is majority owned by
Palladium Equity Partners. The company has over 20 distribution
centers and generated about $3.8 billion in annual revenue for the
LTM period ended March 31, 2024.
The principal methodology used in these ratings was Distribution
and Supply Chain Services published in February 2023.
R&W CLARK CONSTRUCTION: Wins Cash Access Thru June 30
-----------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division, authorized R&W Clark Construction, Inc. to use
cash collateral on an interim basis in accordance with the budget,
with a 10% variance, through June 30, 2024.
As previously reported by the Troubled Company Reporter, three
creditors may assert a security interest in and to the Debtor's
assets:
a. The Illinois Department of Employment Security asserts a
security interest in the Collateral based upon the filing of
notices of lien filed for the time period from February 11, 2004
through December 11, 2018. The IDES asserts a secured claim in the
amount of $294,758.
b. The Internal Revenue Service asserts a security interest in
the Collateral based upon the filing of notices of lien filed for
the time period from August 7, 2012 through February 23, 2023. The
IRS asserts a secured claim in the amount of $1,210,075.
c. The U.S. Small Business Administration asserts a security
interest in the Collateral by virtue of a UCC Financing Statement
filed with the Illinois Secretary of State on March 12, 2021
related to two Notes, dated February 26, 2021 and September 7, 2021
in the amounts of $150,000 and $500,000, respectively. The current
balance due the SBA is $650,000. Based upon the IDES' and the IRS'
higher priority lien claims in and to the Collateral, there exists
no equity in the Collateral to support the SBA's secured claim.
The court said as adequate protection, the IDES, the IRS and any
other lien claimants are granted valid and perfected replacement
liens in and to post-petition cash collateral and all post-petition
property of the Debtor of the same type or kind substantially
equivalent to the pre-petition Collateral (excepting avoidance
actions of the estate) to the same extent and with the same
priority as held prepetition.
A further hearing on the matter is set for June 26 at 10 a.m.
A copy of the court's order is available at
https://urlcurt.com/u?l=34t8pt from PacerMonitor.com.
About R&W Clark Construction
R&W Clark Construction, Inc. filed a petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ill. Case No.
23-03279) on March 11, 2023. In the petition filed by Richard
Clark, president and sole shareholder, the Debtor reported up to
$50,000 in assets and up to $10 million in liabilities.
Judge Timothy A. Barnes oversees the case.
The Debtor tapped Gregory K. Stern, PC as counsel and Ziegler &
Associates, Ltd. as accountant.
RAI INC: Wins Continued Cash Collateral Access
----------------------------------------------
The U.S. Bankruptcy Court for the District of Colorado, authorized
RAI Inc. to continue using cash collateral on a final basis, in
accordance with the budget, with a 10% variance.
In consideration of its consent to the Debtor's continued use of
cash collateral in the ordinary course of the Debtor's business,
the Debtor agrees to make adequate protection payments to Mountain
Valley Bank in the amount of$4,000 per month on the first day of
each month for so long as the Debtor is authorized to use cash
collateral.
The Debtor grants to Mountain Valley Bank a lien and security
interest in all accounts, contract rights and accounts receivable
generated by the Debtor post-petition. The lien granted is provided
to the extent that the Debtor's use of cash collateral result in a
decrease in the value of Mountain Valley Bank's interest in such
property.
Mountain Valley Bank will have a superpriority administrative claim
pursuant to 11 U.S.C. Sections 361(2), 363(c)(2), 364(d)(1),
503(b)(1), and 507(b) to the extent the Debtor's use of cash
collateral results in a decrease in the value of Mountain Valley
Bank's interest in cash collateral.
These events constitute an "Event of Default":
i. Failure to timely pay any of the Adequate Protection
Payments;
ii. Failure to comply with the reporting of information
provided under the Order;
iii. The conversion of the bankruptcy case to a case under
Chapter 7;
iv. The appointment of a Trustee (other than the Subchapter V
Trustee)in the bankruptcy case;
v. The failure of the Debtor to maintain insurance on the
Mountain Valley Bank collateral, as required by the underlying loan
documents.
A copy of the court's order is available at
https://urlcurt.com/u?l=JqZSic from PacerMonitor.com.
About RAI Inc.
RAI Inc. sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Colo. Case No. 23-16014-JGR) on December 28, 2023.
In the petition signed by Scott Owens, general manager, the Debtor
disclosed up to $1 million in both assets and liabilities.
Judge Joseph G. Rosania, Jr. oversees the case.
Aaron A. Garber, Esq., at Wadsworth Garber Warner Conrardy, P.C.,
represents the Debtor as legal counsel.
REDLINE INC: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: Redline, Inc.
1029 Palmer Lane
Desoto, TX 75115
Chapter 11 Petition Date: June 4, 2024
Court: United States Bankruptcy Court
Northern District of Texas
Case No.: 24-31660
Debtor's Counsel: Robert T DeMarco, Esq.
DEMARCO MITCHELL, PLLC
12770 Coit Road, Suite 850
Dallas, TX 75251
Tel: (972) 991-5591
E-mail: robert@demarcomitchell.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Brian Williams as president.
The Debtor filed an empty list of its 20 largest unsecured
creditors.
https://www.pacermonitor.com/view/EAMXHTY/Redline_Inc__txnbke-24-31660__0002.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/ZQKXSIA/Redline_Inc__txnbke-24-31660__0001.0.pdf?mcid=tGE4TAMA
REGO PAYMENT: Losses, Negative Cash Flow Raise Going Concern Doubt
------------------------------------------------------------------
Rego Payment Architectures, Inc. disclosed in a Form 10-Q Report
filed with the U.S. Securities and Exchange Commission for the
quarterly period ended March 31, 2024, that substantial doubt
exists about its ability to continue as a going concern.
For the three months ended March 31, 2024 and 2023, the Company had
a net loss of $2,291,463 and $5,408,901, respectively, and have not
generated significant revenue since its inception.
Since inception, the Company has focused on developing and
implementing its business plan. The Company believes that its
existing cash resources will not be sufficient to sustain
operations during the next 12 months. The Company currently needs
to generate revenue in order to sustain its operations. In the
event that the Company cannot generate sufficient revenue to
sustain its operations, the Company will need to reduce expenses or
obtain financing through the sale of debt and/or equity securities.
The issuance of additional equity would result in dilution to
existing shareholders. If the Company is unable to obtain
additional funds when they are needed or if such funds cannot be
obtained on terms acceptable to the Company, the Company would be
unable to execute upon the business plan or pay costs and expenses
as they are incurred, which would have a material, adverse effect
on the business, financial condition and results of operations.
A full-text copy of the Company's Form 10-Q is available at:
https://www.sec.gov/Archives/edgar/data/1437283/000121465924009348/0001214659-24-009348-index.html
About REGO Payment
REGO Payment Architectures, Inc. and its subsidiaries is a provider
of consumer software that delivers a mobile payment platform
solution—Mazoola - a family focused mobile banking solution.
Headquartered in Blue Bell, Pennsylvania, the Company maintains a
portfolio of trade secrets and four US patent awards. REGO offers
an all-digital financial payments platform to enable minors,
particularly under 13 years old, to purchase goods and services,
complete chores and learn in a secure online environment guided by
parental permission, oversight, and control, while remaining
Children's Online Privacy Protection Act and General Data
Protection Regulation compliant.
As of March 31, 2024, the Company has $4,764,682 in total assets,
$38.5 million in total current liabilities, and $33,711,239 in
stockholders' deficit.
RIBBON COMMUNICATIONS: Financial Strain Raises Going Concern Doubt
------------------------------------------------------------------
Ribbon Communications Inc. disclosed in a Form 10-Q Report filed
with the U.S. Securities and Exchange Commission for the quarterly
period ended March 31, 2024, that substantial doubt exists about
its ability to continue as a going concern for the next 12 months.
For the three months ended March 31, 2024, the Company reported a
net loss of $30.4 million, compared to a net loss of $38.3 million
for the same period in 2023.
The Company's financing activities used $5.8 million of cash in the
three months ended March 31, 2024, primarily due to $5 million of
principal payments on its term debt and $0.8 million for the
payment of tax withholding related to the net share settlements of
restricted stock awards upon vesting. In addition, the Company had
$15 million of borrowings and $15 million of principal payments
under its 2020 Revolving Credit Facility.
Additionally, financing activities used $30.1 million of cash in
the three months ended March 31, 2023, primarily due to $80.0
million of principal payments, including a $75 million prepayment
in connection with the Sixth Amendment to the 2020 Credit Facility,
$1.6 million of debt issuance costs also paid in connection with
the Sixth Amendment, and $1.9 million for the payment of tax
withholding obligations related to the net share settlements of
restricted stock awards upon vesting. In addition, the Company
received $53.4 million of proceeds from the issuance of the
Preferred Stock and Warrants in the Private Placement.
"The rate at which we consume cash is dependent on the cash needs
of our future operations, including our contractual obligations at
March 31, 2024, primarily comprised of our debt principal and
interest obligations, and our operating lease and purchase
obligations," the Company explained. "Our operating lease
obligations totaled $61.2 million at March 31, 2024, with payments
aggregating $13.9 million in the remainder of 2024, $10.8 million
in 2025, $9 million in 2026 and $27.5 million thereafter. Estimated
payments for purchase obligations for the full year 2024 aggregate
approximately $101 million. We anticipate devoting substantial
capital resources to continue our R&D efforts, to maintain our
sales, support and marketing, and for other general corporate
activities. We believe that our financial resources, along with
managing discretionary expenses, will allow us to manage the
ongoing impact of inflation on our business operations. Looking
ahead, we have developed contingency plans to reduce costs further
if the situation deteriorates."
"However, we do not have sufficient cash on hand or available
liquidity to repay the $200.4 million due on March 3, 2025, the
maturity date of our 2020 Credit Facility. In response to these
conditions, management's plans include refinancing the 2020 Credit
Facility. We have entered into a binding commitment letter to
refinance the 2020 Credit Facility. The refinance contemplated by
the Commitment Letter is expected to close no later than June 30,
2024. However, because the credit facility contemplated by the
Commitment Letter has not yet been finalized, it cannot be deemed
to be within our control. As a result, such plans cannot be deemed
probable and do not alleviate the substantial doubt raised about
our ability to continue as a going concern."
A full-text copy of the Company's Form 10-Q is available at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1708055/000170805524000007/rbbn-20240331.htm
About Ribbon Communications
Plano, Texas-based Ribbon Communications Inc. is a leading global
provider of communications technology to service providers and
enterprises. The Company provides a broad range of software and
high-performance hardware products, network solutions, and services
that enable the secure delivery of data and voice communications,
and high-bandwidth networking and connectivity for residential
consumers and for small, medium, and large enterprises and industry
verticals such as finance, education, government, utilities, and
transportation.
As of March 31, 2024, the Company has $1.1 billion in total assets,
$653.8 million in total liabilities, and $424.7 million in total
stockholders' equity.
RIDGELINE CAPITAL: Case Summary & Two Unsecured Creditors
---------------------------------------------------------
Debtor: Ridgeline Capital Investments, LLC
42144 Long Hollow Drive
Coarsegold, CA 93614
Business Description: Ridgeline Capital is a Single Asset Real
Estate debtor (as defined in 11 U.S.C.
Section 101(51B)).
Chapter 11 Petition Date: June 4, 2024
Court: United States Bankruptcy Court
Eastern District of California
Case No.: 24-11545
Judge: Hon. Jennifer E. Niemann
Debtor's Counsel: Michael Jay Berger, Esq.
LAW OFFICES OF MICHAEL JAY BERGER
9454 Wilshire Boulevard, 6th Floor
Beverly Hills, CA 90212
Tel: (310) 271-6223
Fax: (310) 271-9805
E-mail: michael.berger@bankruptcypower.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Shaun Michael Reynolds as managing
member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's two unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/R5CACII/Ridgeline_Capital_Investments__caebke-24-11545__0001.0.pdf?mcid=tGE4TAMA
RODA LLC: Seeks Continued Cash Collateral Access
------------------------------------------------
Roda, LLC asks the U.S. Bankruptcy Court for the District of Oregon
for authority to continue using cash collateral and provide
adequate protection in accordance with its agreement with PacWest
Funding, Inc. dba Precision Capital, for the period covering June
1, 2024 through August 31, 2024.
The Debtor requires the use of cash collateral to meet its expenses
and other payments as set forth in the budget.
Washington County Assessment and Taxation appears to have a
security interest/lien upon the real property owned by the Debtor,
but not cash collateral.
As adequate protection, Precision Capital will be granted a
perfected lien and security interest on all property. The
Replacement Lien on the Replacement Collateral will be perfected
and enforceable upon entry of this Order without regard to whether
such Replacement Lien is perfected under applicable non-bankruptcy
law.
Absent further Order of the Court, the Debtor's authority to use
cash collateral will terminate at midnight upon August 31, 2024 or
the occurrence of any of the following: (a) the violation of the
any of the terms of the Order, (b) the entry of an Order converting
the case to a case under Chapter 7 of the Bankruptcy Code, (c) the
termination, lapse, expiration or reduction of insurance coverage
on Precision Capital's collateral for any reason, or (d) the
appointment of a trustee in the case.
A copy of the Debtor's motion and budget is available at
https://urlcurt.com/u?l=DMGo9t from PacerMonitor.com.
The Debtor projects total expenses, on a monthly basis, as
follows:
$55,850 for June 2024;
$59,351 for July 2024; and
$49,031 for August 2024.
About Roda LLC
Roda, LLC, a company in Washington County, Ore., sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ore. Case
No. 23-30250) on Feb. 6, 2023. In the petition signed by its
managing member, Roy MacMillan, the Debtor disclosed up to $10
million in both assets and liabilities.
Judge Teresa H. Pearson oversees the case.
The Debtor tapped Tara J. Schleicher, Esq., at Foster Garvey PC as
bankruptcy counsel; Intellequity Legal Services, LLC as special
counsel; Thomas L. Strong CPA PC as accountant; and Boverman &
Associates, LLC as business consultant.
SATURN OIL: Moody's Assigns First Time 'B2' Corp. Family Rating
---------------------------------------------------------------
Moody's Ratings assigned Saturn Oil & Gas Inc. a B2 corporate
family rating, a B2-PD probability of default rating and a B2
senior secured rating to the proposed US$625 million second lien
notes due 2029. Moody's also assigned an SGL-2 speculative grade
liquidity rating. The outlook is stable. This is the first time
Moody's has assigned ratings to Saturn.
Proceeds from the new notes will be used to finance the acquisition
of Saskatchewan assets from Crescent Point for C$525 million and
refinance existing debt.
RATINGS RATIONALE
Saturn is supported by a conservative hedging strategy providing
good cash flow visibility, a focus on allocating free cash flow
toward debt reduction and deleveraging through mandatory
amortizations. The company benefits from a high concentration of
higher-value light oil and a weighting toward proved developed
reserves supporting its ability to sustain production levels
near-term. A presence in several plays within Saskatchewan and
Alberta also provides some capital allocation flexibility and
partially mitigates exposure to region-specific risks. Saturn is
constrained by the small scale of its production and reserves. The
company's short operating and financial track record also increases
risks. While Moody's expects Saturn to focus on developing core
assets and small tuck-ins, the company has an active M&A history
and may pursue releveraging transactions. Under Moody's medium-term
price assumptions, Saturn's liquidity is good, but high annual debt
amortizations as well as the small size and short tenor of the
committed RBL facility could limit flexibility in a prolonged
downturn.
Moody's believes that while environmental and social considerations
have limited credit impact, challenges will increase over time.
Saturn has significant exposure to environmental risk factors as
decarbonization efforts intensify. Social risks include high
exposure to demographic and societal pressures and increasing
stringency around responsible production. Despite a conservative
financial policy, Saturn's governance risks are somewhat elevated
given the company's limited operating and financial policy track
record.
Pro-forma for the proposed issuance, Saturn's liquidity is good
(SGL-2). Beginning Q3-24, Moody's estimates sources totaling about
C$320 million through Q2-25, compared to mandatory debt
amortizations of C$85.6 million. Sources consist of around C$40
million in cash on hand, about C$130 million in positive free cash
flow under Moody's medium-term price assumptions and C$150 million
available under a reserved based lending facility (364-day term out
with any outstanding balance as of June 2025 due June 2026 unless
extended). There are no financial covenants. Saturn's presence in
several plays in Alberta and Saskatchewan also provides it with the
ability to sell assets if needed.
The B2 rating on Saturn's senior secured second lien notes is in
line the B2 CFR given that the notes constitute the preponderance
of debt.
The stable outlook reflects Moody's expectation that Saturn will
allocate the majority of free cash flow toward debt reduction and
maintain a conservative financial policy while sustaining
production volumes and reserves.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if Saturn demonstrates significant
organic growth in reserves and production while reducing debt and
maintaining a conservative financial policy with retained cash flow
to debt (RCF/debt) remaining comfortably above 50% and the
leveraged full-cycle ratio (LFCR )trending toward 2x.
The ratings could be downgraded if Saturn's production or reserves
decline, liquidity deteriorates, if financial policy becomes more
aggressive, RCF/debt declines below 25% or LFCR is under 1x.
Headquartered in Calgary, Saturn is a publicly traded independent
exploration and production company with assets in Saskatchewan and
Alberta with pro-forma gross production of about 40 mboe/d.
The principal methodology used in these ratings was Independent
Exploration and Production published in December 2022.
SATURN OIL: S&P Assigns 'B' Long-Term Issuer Credit Rating
----------------------------------------------------------
S&P Global Ratings assigned its 'B' long-term issuer credit rating
to Calgary-based exploration and production (E&P) company Saturn
Oil & Gas Inc.
S&P also assigned a 'BB-' rating to the proposed second-lien
secured US$625 million notes being issued by Saturn. The recovery
rating is '1', which indicates its expectation of very high
recovery for debtholders under its simulated default scenario.
The ratings reflect Saturn's relatively small operating scale,
limited geographic diversification, and elevated leverage. Partial
offsets include the company's light-oil dominant product mix,
competitive cost structure, and resulting strong projected free
cash flow generation.
S&P said, "Pro forma the proposed note issuance and announced
acquisition, we project average funds from operations (FFO) to debt
of about 50% and debt to EBITDA of about 1.6x over the next two
years.
"The stable outlook reflects our expectation the company will
generate significant positive free operating cash flow over our
forecast period, with debt reduction as the primary use. We also
anticipate the company will integrate the acquired assets and grow
production under its existing low-cost structure and maintain
adequate liquidity.
"We assigned a 'B' issuer credit rating to Saturn, reflecting the
company's modest production and reserves base, and increased
leverage. While we anticipate Saturn's recently announced C$525
million asset acquisition from Veren Inc. will significantly
increase its existing daily average production and proved reserves
base, the company will remain at the lower end of the ratings
universe from an operating scale perspective. Pro forma the
acquisition, Saturn will have daily average production of about
40,000 barrels of oil equivalent per day (boe/d) (32,000-34,000
boe/d average for full-year 2024) and proved reserves of just over
150 million boe (87% liquids). While this represents a roughly 50%
increase in production and 70% increase in proved reserves versus
year-end 2023, Saturn's pro forma operating scale is still among
the smallest in our ratings universe. Furthermore, the company is
issuing US$625 million of second-lien secured notes to both fund
this acquisition, as well as repay its existing term loan (about
C$375 million outstanding as of March 31, 2024), which was
originally used to fund its Oxbow and Ridgeback acquisitions
(completed in 2021 and 2023, respectively). Accordingly, Saturn's
pro forma leverage is substantially elevated versus similarly sized
peers, most of which have recently focused free cash flow on
absolute debt reduction.
"Partially offsetting the above factors are Saturn's high
percentage of proved-developed reserves, light-oil dominant product
mix, and competitive cost structure. We expect roughly 75% of
Saturn's pro forma production will be light oil, which is
significantly more profitable and less volatile than heavy oil or
natural gas production under our current commodity price
assumptions. Saturn also benefits from low cash operating
costs--S&P Global Ratings calculated first quarter 2024 cash
operating costs at about US$17 per barrel (bbl)--and a low earnings
before interest and taxes (EBIT) breakeven of about US$30/bbl
(including stock-based compensation). Accordingly, the company
generates material FFO and free operating cash flow (FOCF) despite
its relatively small operating scale. For example, 'B' rated heavy
oil producer Athabasca Oil Corp. had 2023 production that was
roughly 40% higher than Saturn's 2023 daily average production;
however, Athabasca's 2023 FOCF was only 13% higher than Saturn's.
Furthermore, more than two thirds of Saturn's pro forma proved
reserves are proved developed, which we view favorably given that
it should limit future development risk and the capital cost
required to develop its reserves base."
Historically, Saturn has grown production through acquisitions of
complementary producing assets. Saturn's daily average production
grew from less than 500 boe/d in 2020 to about 24,000 boe/d in
2023, primarily through two major acquisitions completed in 2021
and 2023. With the recently announced acquisition, which we expect
to close in June 2024, the company's pro forma production will
increase to about 40,000 boe/d. The company's strategy has been to
acquire and develop complementary free cash flow generating assets
in its existing core areas, primarily West Central and South East
Saskatchewan. While a large portion of these acquisitions have been
debt-funded (70%-75%), the company has been able to optimize
operations and reduce costs on a dollar per boe basis (roughly 30%
decrease in lease operating expenses per boe for 2023 relative to
2021) by growing production, resulting in strong free cash flow
generation that offsets some of the impact of higher leverage. For
example, Saturn's S&P Global Ratings-adjusted debt increased by
more than C$250 million from 2022 to 2023 (88% increase); however,
its adjusted EBITDA for the same period increased by roughly 150%,
resulting in a lower debt/EBITDA ratio of 1.5x for 2023 versus 2.0x
for 2022.
S&P said, "Given the company's pro forma proved reserves base of
153 million boe and high proved developed component, we believe the
company could direct a portion of its free cash flow toward organic
growth initiatives in the future; however, we have not assumed
material production growth beyond the 40,000 boe/d pro forma
production level in our current forecast.
"We expect FFO to debt of 45%-55% and leverage of 1.5x-2.0x as the
company integrates the acquired assets and directs free cash flow
to debt repayment. Under our current oil and gas price deck and at
expected pro forma production levels, we anticipate Saturn will
generate about $440 million of FFO annually in 2024 and 2025,
resulting in average FOCF generation of about C$160 million
annually for the next two years. We have assumed the company will
make the mandatory amortization payments under the proposed US$625
million of notes of $62.5 million per year, which further supports
our projected leverage metrics. We do not assume any shareholder
returns over our forecast period, and we do not net the company's
cash balance against the remaining debt as we believe it will
likely be used to fund further acquisitions, or organic growth
projects. Accordingly, we expect FFO/debt of about 48% and debt to
EBITDA of 1.8x in 2024, improving to almost 55% and 1.4x
respectively in 2025."
Saturn's comprehensive hedging policy of hedging a minimum of
75%/50%/25% of proved developed producing (PDP) oil production for
the next 12, 24, and 36 months, respectively, also provides
downside cushion on financial metrics in weaker oil price
environments.
S&P said, "The stable outlook reflects our expectation that Saturn
will generate significant positive FOCF over the next two years,
with debt reduction as the primary use. We forecast financial
metrics averaging just over 50% FFO/debt with debt/EBITDA of about
1.6x for 2024-2025. We anticipate daily average production will
increase materially following the announced acquisition, which we
expect will close in June 2024, and the company will continue to
maintain its existing competitive cost structure and adequate
liquidity.
"We could lower our rating if we expected FFO to debt to fall below
30% for a sustained period, or if the company generated material
negative FOCF. This would most likely occur if commodity prices
significantly declined below our price deck assumptions and the
company did not reduce capital spending, if the company did not
meet our production expectations, or if the company pursues further
large, debt-funded acquisitions.
"We believe the company's credit profile and our rating will remain
constrained by its limited scale, and narrow operational and
geographic diversification."
Nevertheless, S&P could raise the rating, if:
-- Saturn significantly expanded its operational scope and scale
while maintaining its current competitive cost structure; and
-- S&P's fully adjusted two-year average FFO-to-debt ratio
remained consistently above 45% with demonstrated debt reduction,
financial policy discipline, and continued positive FOCF
generation.
SC HEALTHCARE: Seeks to Hire Duane Morris LLP as Special Counsel
----------------------------------------------------------------
SC Healthcare Holding, LLC and its affiliates seek approval from
the U.S. Bankruptcy Court for the District of Delaware to Duane
Morris LLP as their special counsel.
The firm will provide legal services including, but not limited to,
the Debtors' solicitation and negotiation of bids for the
disposition of certain of the Debtors' assets.
The firm's current customarily hourly rates range between $590 to
$1,290 per hour.
Michael Witt, a partner of Duane Morris 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 through:
Michael A. Witt, Esq.
Duane Morris LLP
190 South LaSalle Street, Suite 3700
Chicago, IL 60603-3433
Phone: (312) 499-6716
Email: MAWitt@duanemorris.com
About SC Healthcare Holding
SC Healthcare Holding, LLC, et al. comprise one of the largest
nursing home operators in the United States and work in partnership
with physicians, skilled nurses, and other health care providers in
order to provide various healthcare and rehabilitation services for
elderly citizens in Illinois, Missouri, and Iowa.
SC Healthcare Holding, LLC sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-10443) on
March 20, 2024. In the petition signed by David R. Campbell as
authorized signatory, SC Healthcare disclosed up to $100 million to
$500 million in assets and $100 million to $500 million in
liabilities.
Judge Hon. Thomas M Horan oversees the case.
Young Conaway Stargatt & Taylor, LLP and Winston & Strawn LLP
represent the Debtors as legal counsel.
SHINECO INC: Recurring Losses Raise Going Concern Doubt
-------------------------------------------------------
Shineco, Inc. disclosed in a Form 10-Q Report filed with the U.S.
Securities and Exchange Commission for the quarterly period ended
March 31, 2024, that the Company's management believes substantial
doubt exists about its ability to continue as a going concern for
the next 12 months.
The Company had recurring net losses of US$12.9 million and US$6.9
million, and continuing cash outflow of US$2.9 million and US$2.5
million from operating activities from continuing operations for
the nine months ended March 31, 2024 and 2023, respectively.
In assessing the Company's going concern, management monitors and
analyzes the Company's cash on-hand and its ability to generate
sufficient revenue sources in the future to support its operating
and capital expenditure commitments. The Company's liquidity needs
are to meet its working capital requirements, operating expenses
and capital expenditure obligations. Direct offering and debt
financing have been utilized to finance the working capital
requirements of the Company.
The continuation of the Company as a going concern through the next
12 months is dependent on the continued financial support from its
stockholders.
A full-text copy of the Company's Form 10-Q is available at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1300734/000149315224019989/form10-q.htm
About Shineco
Shineco, Inc., through its subsidiaries, processes and distributes
agricultural produce. It also engages in the growing and
cultivation of mulberry trees and silkworm cocoons; distribution of
fruit business; and processing and distribution of silk and silk
fabrics, as well as other by-products. The company was incorporated
in 1997 and is headquartered in Beijing, the People's Republic of
China.
As of March 31, 2024, the Company has $101.7 million in total
assets, $55 million in total liabilities, and $46.7 million in
total equity.
SHROG REALTY: Salvatore LaMonica Named Subchapter V Trustee
-----------------------------------------------------------
The U.S. Trustee for Region 2 appointed Salvatore LaMonica, Esq.,
at LaMonica Herbst & Maniscalco, LLP, as Subchapter V trustee for
Shrog Realty Partners LLC.
Mr. LaMonica will be paid an hourly fee of $725 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. LaMonica declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Salvatore LaMonica, Esq.
LaMonica Herbst & Maniscalco, LLP
3305 Jerusalem Avenue, Suite 201
Wantagh, NY 11793
Phone: (516) 826-6500
Email: sl@lhmlawfirm.com
About Shrog Realty Partners
Shrog Realty Partners LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-42039) on May 15,
2024, with $100,001 to $500,000 in assets and liabilities. Judge
Jil Mazer-Marino presides over the case.
SOLFIRE CONTRACT: Hires McNamee Hosea as Bankruptcy Counsel
-----------------------------------------------------------
Solfire Contract Manufacturing, Inc. seeks approval from the U.S.
Bankruptcy Court for the Northern District of Indiana to employ
McNamee Hosea, P.A. as its general bankruptcy counsel.
The firm's services include:
a. providing the Debtor legal advice with respect to its
powers and duties as a debtor in possession and in the operation
and management of its property;
b. preparing any necessary applications, answers, orders,
reports and other legal papers, and appearing on the Debtor's
behalf in proceedings instituted by or against the Debtor;
c. assisting the Debtor in the process of selling its property
and/or the confirmation of a plan;
d. assisting the Debtor with other legal matters related to
the Debtor's reorganization; and
e. performing all of the legal services for the Debtor that
may be necessary or desirable.
The firm will be paid at these hourly rates:
Janet M. Nesse $525
Kevin R. Feig $325
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
On May 15, 2024, McNamee Hosea was provided a $10,250 retainer, as
security for its fees and expenses related to the present Chapter
11, Subchapter V bankruptcy case.
Kevin Feig, Esq., an associate at McNamee, Hosea, 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 through:
Kevin R. Feig, Esq.
Janet M. Nesse, Esq.
McNamee Hosea PA
6404 Ivy Lane, Suite 820
Greenbelt, MD 20770
Telephone: (301) 441-2420
Email: jnesse@mhlawyers.com
kfeig@mhlawyers.com
About Solfire Contract Manufacturing, Inc.
Solfire is a manufacturer of industrial components and assemblies
with locations in Fort Wayne, IN and Aguascalientes Mexico.
Solfire Contract Manufacturing, Inc. filed its voluntary petition
for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D.
Ind. Case No. 24-10271) on March 18, 2024, listing up to $50,000 in
assets and $1 million to $10 million in liabilities. The petition
was signed by Othoniel Solis as chief operating officer.
Wesley N. Steury, Esq. at Burt, Blee, Dixon, Sutton & Bloom LLP
represents the Debtor as counsel.
SOLFIRE CONTRACT: Seeks to Hire Foudy CPA Group as Accountant
-------------------------------------------------------------
Solfire Contract Manufacturing, Inc. seeks approval from the U.S.
Bankruptcy Court for the Northern District of Indiana to employ
Ronald L. Foudy, CPA, of Foudy CPA Group PC as accountant.
The professional services to be rendered by the accountant include
updating the Debtor's QuickBooks account online, preparing the
Debtor's tax returns for the years 2022 and 2023, and providing
other general accounting services for the applicant.
The accountant will be paid in the sum of $4,000 immediately upon
approval of this application for the preparation of the Debtor's
federal and state tax returns for the years 2022 and 2023.
The hourly rates for those working on this account are:
Ronald Foudy, CPA $282 per hour
Brendan Lewis $171 per hour
Kelly Warren $127 per hour
Ronald Foudy, CPA, of Foudy CPA Group, assured the court that the
firm has no interest adverse to the applicant or its estate in any
of the matters upon which it is to be engaged, and its employment
would be in the best interests of this estate.
The firm can be reached through:
Ronald L. Foudy, CPA
Foudy CPA Group PC
5730 Falls Dr
Fort Wayne, IN 46804
Phone: (260) 432-4565
About Solfire Contract Manufacturing, Inc.
Solfire is a manufacturer of industrial components and assemblies
with locations in Fort Wayne, IN and Aguascalientes Mexico.
Solfire Contract Manufacturing, Inc. filed its voluntary petition
for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D.
Ind. Case No. 24-10271) on March 18, 2024, listing up to $50,000 in
assets and $1 million to $10 million in liabilities. The petition
was signed by Othoniel Solis as chief operating officer.
Wesley N. Steury, Esq. at Burt, Blee, Dixon, Sutton & Bloom LLP
represents the Debtor as counsel.
SOLID BIOSCIENCES: Raises Going Concern Doubt
---------------------------------------------
Solid Biosciences Inc. disclosed in a Form 10-Q Report filed with
the U.S. Securities and Exchange Commission for the quarterly
period ended March 31, 2024, that substantial doubt exists about
its ability to continue as a going concern.
In accordance with Accounting Standards Codification 205-40, Going
Concern, the Company has evaluated whether there are conditions and
events, considered in the aggregate, that raise substantial doubt
about the Company's ability to continue as a going concern within
the next 12 months.
According to the Company, as of March 31, 2024, it had an
accumulated deficit of $683.1 million. During the three months
ended March 31, 2024, the Company incurred a net loss of $24.3
million and used $25.2 million of cash in operations. The Company
expects to continue to generate operating losses in the foreseeable
future. Based upon its current operating plan, the Company expects
that its cash, cash equivalents and available-for-sale securities
of $206.1, million excluding restricted cash of $1.8 million, as of
March 31, 2024, will be sufficient to fund its operating expenses
and capital expenditure requirements for at least 12 months.
However, the Company has based this estimate on assumptions that
may prove to be wrong, and its operating plan may change as a
result of many factors currently unknown to it.
As a result, the Company could deplete its capital resources sooner
than it currently expects. The Company expects to finance its
future cash needs through a combination of equity offerings, debt
financings, collaborations, strategic partnerships and alliances or
licensing arrangements. If the Company is unable to obtain funding,
the Company would be forced to delay, reduce or eliminate some or
all of its research and development programs, preclinical and
clinical testing or commercialization efforts, which could
adversely affect its business prospects.
A full-text copy of the Company's Form 10-Q is available at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1707502/000095017024060034/sldb-20240331.htm
About Solid Biosciences
Charlestown, Mass.-based Solid Biosciences, Inc. is a life sciences
company focused on advancing a portfolio of current and future gene
therapy candidates, including SGT-003 for the treatment of Duchenne
muscular dystrophy, SGT-501 for the treatment of catecholaminergic
polymorphic ventricular tachycardia, and additional assets for the
treatment of cardiac and other diseases, at different stages of
development with varying levels of investment.
As of March 31, 2024, the Company has $248.7 million in total
assets, $38 million in total liabilities, and $210.7 million in
total stockholders' equity.
SOLUNA HOLDINGS: Financial Strain Raises Going Concern Doubt
------------------------------------------------------------
Soluna Holdings, Inc. disclosed in a Form 10-Q Report filed with
the U.S. Securities and Exchange Commission for the quarterly
period ended March 31, 2024, that substantial doubt exists about
its ability to continue as a going concern.
According to the Company, it was in a net loss, has negative
working capital, and has significant outstanding debt as of March
31, 2024.
The Company had a net loss for the three months ended March 31,
2024, of approximately $2.5 million, compared to $7.4 million for
the same period in 2023, and had a consolidated accumulated deficit
of approximately $256.2 million as March 31, 2024. As of March 31,
2024, the Company had negative working capital of approximately
$15.5 million, $7.7 million outstanding principal in notes payable
that may be converted to common stock, a subsidiary of the Company
that defaulted on equipment financing and has a current outstanding
loan of $9.2 million, and a 2-year $2.05 million principal loan
commitment to Navitas, in which as of March 31, 2024 has an
outstanding principal balance of approximately $1.1 million. The
Company had outstanding commitments as of March 31, 2024, related
to SDI of 3.4 million in capital expenditures, in which 95% relate
to Project Dorothy 2, and approximately $8.4 million of cash
available to fund its operations.
The ability to continue as a going concern is dependent upon the
Company generating profitable operations in the future and/or
obtaining the necessary financing to meet its obligations and repay
its liabilities arising from normal business operations when they
come due. In the near term, management is evaluating and
implementing different strategies to obtain financing to fund the
Company's expenses and growth to achieve a level of revenue
adequate to support the Company's current cost structure. Financing
strategies may include, but are not limited to, stock issuances,
project level equity, debt borrowings, partnerships and/or
collaborations. If the Company is unable to meet its financial
obligations, it could be forced to restructure or refinance, seek
additional equity capital or sell its assets. The Company might
then be unable to obtain such financing or capital or sell its
assets on satisfactory terms. There can be no assurance that
additional financing will be available to the Company when needed
or, if available, that it can be obtained on commercially
reasonable terms. If the Company is not able to obtain the
additional financing on a timely basis, if and when it is needed,
it will be forced to delay or scale down some or all of its
development activities or perhaps even cease the operation of its
business.
In addition to the Company's cash on hand for available use of
approximately $8.4 million as of March 31, 2024, the Company will
need additional capital raising activities, to meet its capital
expenditure needs for its current pipeline and other operational
needs. The Company in fiscal year 2024 will continue to look to
evaluate different strategies to obtain financing to fund
operations. However, management cannot provide any assurances that
the Company will be successful in accomplishing additional
financing or any of its other plans.
A full-text copy of the Company's Form 10-Q is available at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/64463/000149315224020047/form10-q.htm
About Soluna Holdings
Albany, N.Y.-based Soluna Holdings, Inc. is a digital
infrastructure company specializing in transforming surplus
renewable energy into computing resources.
As of March 31, 2024, the Company has $90.6 million in total
assets, $41.8 million in total liabilities, and $48.9 million in
total stockholders' equity.
SONIDA SENIOR: Board Committee Fires RSM US LLP as Auditor
----------------------------------------------------------
Sonida Senior Living, Inc. reported in a Form 8-K filed with the
Securities and Exchange Commission that on May 31, 2024, the Audit
Committee of the Board of Directors of the Company voted to dismiss
RSM US LLP, effective May 31, 2024, as the Company's independent
registered public accounting firm. The Company is in the final
stages to complete a competitive bidding process to engage a new
independent registered public accounting firm.
The reports of RSM on the Company's consolidated financial
statements as of and for the two most recent fiscal years ended
Dec. 31, 2023 and 2022 did not contain an adverse opinion or a
disclaimer of opinion, nor were such reports qualified or modified
as to uncertainties, audit scope or accounting principles, except
that RSM's report dated March 30, 2023 contained an explanatory
paragraph regarding the Company's ability to continue as a going
concern for the year ended Dec. 31, 2022. There was no such
paragraph in RSM's report for the year ended Dec. 31, 2023.
During the Company's two most recent fiscal years ended Dec. 31,
2023 and 2022, and in the subsequent interim periods through May
31, 2024: (i) there were no "disagreements" (within the meaning of
Item 304(a)(1)(iv) of Regulation S-K and the related instructions
under the Securities Exchange Act of 1934, as amended) between the
Company and RSM on any matter of accounting principles or
practices, financial statement disclosure or auditing scope or
procedure, which disagreements, if not resolved to the satisfaction
of RSM, would have caused RSM to make reference to the subject
matter of the disagreements in connection with its reports on the
financial statements of the Company for such years and (ii) there
were no reportable events as that term is defined in Item
304(a)(1)(v) of Regulation S-K except for the matters referenced
below.
As disclosed in Item 9A of each of the Company's Annual Reports on
Form 10-K as of and for the years ended Dec. 31, 2023 and 2022,
there was a "reportable event" (within the meaning of Item
304(a)(1)(v) of Regulation S-K and the related instructions under
the Exchange Act) related to a material weakness in the Company's
internal control over financial reporting. RSM provided written
communication to the Audit Committee regarding this material
weakness and they were discussed by RSM with the Company's
management and the Audit Committee. RSM has been authorized by the
Company to respond fully to any inquiries of the successor
independent registered public accounting firm of the Company
concerning this reportable event.
About Sonida
Sonida Senior Living, Inc., (formerly known as Capital Senior
Living Corporation) is an owner owner-operator of senior housing
communities. The Company and its predecessors have provided senior
housing since 1990. As of Dec. 31, 2023, the Company operated 71
senior housing communities in 18 states with an aggregate capacity
of approximately 8,000 residents, including 61 senior housing
communities that the Company owned and 10 communities that the
Company managed on behalf of third parties. The Company generally
provides residential housing and services to people aged 75 years
and older, including independent living, assisted living, and
memory care services. Many of the Company's communities offer a
continuum of care to meet its residents' needs as they change over
time by integrating independent living, assisted living, and memory
care, which may be bridged by home care through independent home
care agencies.
Sonida Senior reported a net loss of $21.11 million in 2023,
compared to a net loss of $54.40 million in 2022. As of Dec. 31,
2023, the Company had $621.46 million in total assets, $688.01
million in total liabilities, $48.54 million in series A
convertible preferred stock, and a total shareholders' deficit of
$115.09 million.
Sonida Senior stated in its Quarterly Report for the period ended
March 31, 2024, that "During 2023, the Company's liquidity
conditions, including operating losses and net working capital
deficit, raised substantial doubt about the Company's ability to
continue as a going concern. As a result of increases in
occupancy, increases in rental rates and completion of the 2024
Private Placement and Protective Life Loan Purchase, the Company
has substantially improved its liquidity position. In addition,
net proceeds of $10.3 million was raised in April 2024 through our
ATM Sales Agreement. These transactions have increased cash on
hand significantly. Based on these events, the Company concluded
it has adequate cash to meet its obligations as they become due for
the 12-month period following the date the March 31, 2024 financial
statements are issued."
SOUTH HILLS: Taps Blueprint and Cummings and Co. as Realtors
------------------------------------------------------------
South Hills Operations, LLC and its affiliates seek approval from
the U.S. Bankruptcy Court for the Western District of Pennsylvania
to hire Blueprint Healthcare Real Estate Advisors, LLC, and
Cummings and Co. Realtors, LLC, to market and sell their real and
personal properties.
The firms will be compensated as follows:
(i) Advisor's compensation for its services hereunder shall be
an amount equal to 1 percent of the Purchase Price as defined in
the Engagement Agreement. Notwithstanding the foregoing, Advisor's
compensation for its services hereunder shall be an amount equal to
0.5 percent of the Purchase Price as defined herein with respect to
any Property purchased by Kadima Healthcare Group or one of its
affiliates;
(ii) Advisor shall be solely responsible for all brokerage
commissions, finders' fees, or other payments of any kind, if any,
due to Broker or any other advisors, real estate brokers or finders
who have participated on a cooperating basis in procuring and
producing a purchaser, and Selling Debtors shall have no
responsibility with respect thereto, provided however, Selling
Debtors shall be responsible for all such commissions in the event
Selling Debtors have hired or committed or promised in any way to
pay said broker or finder.
(iii) All expenses incurred by Advisor and/or Broker in the
performance of its services hereunder shall be borne by Advisor
and/or Broker, and Selling Debtors shall have no obligation to
reimburse Advisor and/or Broker for any costs or expenses.
As disclosed in the court filings, the brokers are "disinterested
persons" as that term is defined in section 101(14) of the
Bankruptcy Code.
The brokers can be reached through:
Benjamin Firestone
Blueprint Healthcare Real Estate Advisors
191 N. Wacker Drive, Suite 1680
Chicago, IL 60606
Email: bfirestone@blueprinthcre.com
-- and --
Dave Cummings
Cummings and Co Realtors, LLC
2314 Boston Street
Canton, MD 21224
Email: Dave@cummingsrealtors.com
About South Hills Operations
South Hills Operations operates 13 skilled nursing facilities in
Pennsylvania. While all the Debtors do not have identical
ownership, there is substantial common ownership among the various
Debtor entities, and they are affiliates of one another.
South Hills Operations, LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Pa. Case No.
24-21217) on May 17, 2024, listing $1,000,001 to $10 million in
assets and $10,000,001 to $50 million in liabilities.
Judge Carlota M Bohm presides over the case.
Daniel R. Schimizzi, Esq. at Whiteford, Taylor & Preston, LLP
represents the Debtor as counsel.
STARBRIDGE (ONTARIO): Taps Robbin L. Itkin as Independent Manager
-----------------------------------------------------------------
Starbridge (Ontario) Investment, LLC seeks approval from the U.S.
Bankruptcy Court for the Central District of California to employ
Robbin L. Itkin, a professional based in Calif., as its independent
manager.
Ms. Itkin will provide services relating to the management,
financing and potential sale of the Debtor's 309-room hotel and
conference center located at 700 North Haven Avenue, Ontario.
Ms. Itkin is a qualified fiduciary well-positioned to serve as the
independent manager of the Debtor's estate.
Ms. Itkin will receive $30,000 per month as compensation, and
requests reimbursement of all out-of-pocket expenses.
The firm can be reached at:
Robbin L. Itkin
Sklar Kirsh LLP
1880 Century Park E #300
Los Angeles, CA 90067
Phone: (310) 845-6416
Email: ritkin@sklarkirsh.com
About Starbridge (Ontario) Investment, LLC
Starbridge owns and operates the Ontario Airport Hotel & Conference
Center.
Starbridge (Ontario) Investment, LLC filed its voluntary petition
for relief under Chapter 11 of the Bankruptcy Code (Bankr. C.D.
Cal. Case No. 24-11765) on April 3, 2024, listing $10 million to
$50 million in both assets and liabilities. The petition was signed
by Jianhua Jin, Chief Executive Officer of Morgan Holding Group,
Inc., as Manager of Starbridge (Ontario) Investment, LLC.
Judge Magdalena Reyes Bordeaux presides over the case.
Jullian Sekona, Esq. at Keller Benvenutti Kim LLP represents the
Debtor as counsel.
STERLING CREDIT: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Sterling Credit Corp.
222 S Westmonte Dr
Altamonte Springs, FL 32714-4269
Chapter 11 Petition Date: June 4, 2024
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 24-02830
Judge: Hon. Tiffany P Geyer
Debtor's Counsel: Robert Drake Wilcox, Esq.
WILCOX LAW FIRM
1301 Riverplace Blvd. Suite 900
Jacksonville FL 32207
Tel: (904) 405-1250
E-mail: rw@wlflaw.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by William R. Ward as president.
The Debtor failed to attach in the petition a lists of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com:
https://www.pacermonitor.com/view/LVFWIEI/Sterling_Credit_Corp__flmbke-24-02830__0001.0.pdf?mcid=tGE4TAMA
STEWARD HEALTH: PCO Taps Ross Smith & Binford as Legal Counsel
--------------------------------------------------------------
Patient Care Ombudsman Susan Goodman, of Steward Health Care System
LLC and its affiliates, seeks approval from the U.S. Bankruptcy
Court for the Southern District of Texas to employ Ross, Smith &
Binford, PC as her counsel.
The firm will render these services:
a. advise the PCO regarding the PCO's powers and duties under
applicable law with respect to the ombudsman's role in these
Bankruptcy Cases, including topics associated with patient notice
and records;
b. serve as counsel of record for the PCO in all legal aspects
of these Bankruptcy Cases, including without limitation, the
prosecution of actions on behalf of the PCO that are necessary and
appropriate to monitor the quality of patient care and to represent
the interests of Debtors' patients;
c. prepare pleadings in connection with the foregoing
Services; and
d. appear before this Court to represent the interests of the
PCO in connection with the foregoing services.
RSB's standard hourly rates are:
J. Casey Roy $600
Shareholders $650
Associates and Counsel $400 to $600
Paraprofessionals $150
In addition, the firm will seek reimbursement for expenses
incurred.
J. Casey Roy, Esq., an attorney at Ross, Smith & Binford, 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 through:
J. Casey Roy, Esq.
Ross, Smith & Binford, PC
Plaza of the Americas
700 N. Pearl Street, Suite 1610
Dallas, TX 75201
Phone: (214) 377-7879
Email: casey.roy@rsbfirm.com
About Steward Health Care
Steward Health Care System LLC owns and operates the largest
private physician-owned for-profit healthcare network in the U.S.
Headquartered in Dallas, Texas, Steward's operations include 31
hospitals in eight states, approximately 400 facility locations,
4,500 primary and specialty care physicians, 3,600 staffed beds,
and nearly 30,000 employees. Steward Health Care provides care to
more than two million patients annually.
Steward and 166 affiliated debtors filed a Chapter 11 petitions
(Bankr. S.D. Tex. Lead Case No. 24-90213) on May 6, 2024, in the
U.S. Bankruptcy Court for the Southern District of Texas, and the
Honorable Christopher M. Lopez oversees the proceeding.
Weil, Gotshal & Manges LLP is serving as the Company's legal
counsel. AlixPartners, LLP is providing financial advisory services
to the Company, and John Castellano of AlixPartners is serving as
the Company's Chief Restructuring Officer. Lazard Freres & Co. LLC,
Leerink Partners LLC, and Cain Brothers, a division of KeyBanc
Capital Markets Inc. are providing investment banking services to
the Company. McDermott Will & Emery is special corporate and
regulatory counsel for the company. Kroll is the claims agent.
SVB FINANCIAL: Unsecureds Owed $180M to Get 40% to 93% in Plan
--------------------------------------------------------------
SVB Financial Group submitted a Further Revised Disclosure
Statement describing Second Amended Plan dated May 16, 2024.
The Plan provides for the formation of a liquidating trust (the
"Liquidating Trust"), to which the Debtor will contribute certain
assets, including but not limited to certain claims, causes of
action, investment securities, limited partnership interests and
cash, as agreed upon by the Debtor, the UCC and the Required Ad Hoc
Senior Noteholder Parties under the terms of the Plan and
Restructuring Support Agreement (the "RSA").
Upon the Effective Date, the Liquidating Trust will issue four
classes of Liquidating Trust Interests and, subject to certain
conditions described in the Plan, Holders of certain Classes of
Claims and Interests will receive certain Liquidating Trust
Interests in accordance with the priority of their Claims. In
addition, the Plan provides that the Debtor may undertake certain
restructuring transactions which, if effected, will result in a
newly-formed Delaware corporation owning, directly or indirectly,
100% of the equity interests in the Debtor.
For purposes of the Plan and this Disclosure Statement, "NewCo"
shall refer to, as applicable, (i) the Debtor as reorganized
pursuant to and under the Plan and any successor thereto, by
merger, consolidation or otherwise, on or after the Effective Date
or (ii) a newly-formed Delaware corporation (or other business form
as agreed upon under the terms of the Plan) ("New Parent") that
owns or will own, directly or indirectly, 100% of the equity
interests in the Debtor. NewCo will retain assets of the Debtor not
otherwise contributed to the Liquidating Trust, including the
equity interests in certain non-Debtor subsidiaries.
The Debtor will issue 100% of its new common equity interests to
certain Holders of Allowed General Unsecured Claims, subject to
dilution by any NewCo Transaction, and depending on whether certain
restructuring steps are pursued under the Plan, 100% of such new
common equity interests of the Debtor may be exchanged for 100% of
new common equity interests of New Parent.
Class 3(a) consists of Senior Note Claims. Each Holder of an
Allowed Senior Note Claim will receive (a)(i) if and solely to the
extent such Holder is a Qualified Holder, its Pro Rata Share of the
Funded Debt Share of the NewCo Common Stock subject to dilution by
any NewCo Transaction or (ii) if and solely to the extent such
Holder is a Non-Qualified Holder, Cash in an amount equal to the
value of the NewCo Common Stock it would be entitled to receive if
it and all holders of Senior Notes Claims and Other General
Unsecured Claims were Qualified Holders, (b) its Pro Rata share of
the Class A-1 Trust Units and (c) payment by the Debtor in Cash of
the Senior Note Trustee Expenses, to the extent not otherwise paid
by the Debtor under the Plan. The amount of claim in this Class
total $3,329.0. This Class will receive a distribution of 41% to
96% of their allowed claims.
Class 3(b) consists of Other General Unsecured Claims. The allowed
unsecured claims total $180.4 million. This Class will receive a
distribution of 40% to 93% of their allowed claims. Each Holder of
an Allowed Other General Unsecured Claim will receive:
* (a) (i)(A) if and solely to the extent such Holder is a
Qualified Holder, its Pro Rata share (together with all Holders
receiving Distributions in NewCo Common Stock) of the NewCo Common
Stock subject to dilution by any NewCo Transaction or (B) if and
solely to the extent such Holder is a Non-Qualified Holder, Cash in
an amount equal to the value of the NewCo Common Stock it would be
entitled to receive if it and all holders of Senior Notes Claims
and Other General Unsecured Claims were Qualified Holders, and (ii)
its Pro Rata share of the Class A-2 Trust Units; or
* (b) if such Holder elects on the applicable ballot, the GUC
Cash-Out with respect to such Claim.
Cash payments or cash distributions to be made hereunder on the
Effective Date will be funded from the existing Cash of the Debtor
and the Cash proceeds of a NewCo Transaction, as applicable.
Ballots cast by Holders in Classes entitled to vote must be
actually received on July 3, 2024. Objections to Confirmation of
the Plan must be filed on July 8, 2024.
The Bankruptcy Court has scheduled the hearing to consider
confirmation of the Plan on July 15, 2024.
A full-text copy of the Further Revised Disclosure Statement dated
May 16, 2024 is available at https://urlcurt.com/u?l=zzpr2u from
Kroll Restructuring Administration, LLC, claims agent.
Counsel to the Debtor:
James L. Bromley, Esq.
Andrew G. Dietderich, Esq.
Christian P. Jensen, Esq.
SULLIVAN & CROMWELL LLP
125 Broad Street
New York, NY 10004-2498
Tel: (212) 558-4000
Fax: (212) 558-3588
About SVB Financial Group
SVB Financial Group is a financial services company focusing on the
innovation economy, offering financial products and services to
clients across the United States and in key international markets.
Prior to March 10, 2023, SVB Financial Group owned and operated
Silicon Valley Bank, a state-chartered bank. During the week of
March 6, 2023, Silicon Valley Bank, Santa Clara, CA, experienced a
severe "run-on-the-bank." On the morning of March 10, the
California Department of Financial Protection and Innovation seized
SVB and placed it under the receivership of the Federal Deposit
Insurance Corporation. SVB was the nation's 16th largest bank and
the biggest to fail since the 2008 financial meltdown.
On March 17, 2023, SVB Financial Group sought Chapter 11 bankruptcy
protection (Bankr. S.D.N.Y. Case No. 23-10367). The Debtor had
assets of $19,679,000,000 and liabilities of $3,675,000,000 as of
Dec. 31, 2022.
The Hon. Martin Glenn is the bankruptcy judge.
The Debtor tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Centerview Partners, LLC as investment banker; and Alvarez & Marsal
North America, LLC as restructuring advisor. William Kosturos, a
partner at Alvarez & Marsal, serves as the Debtor's chief
restructuring officer. Kroll Restructuring Administration, LLC, is
the claims and noticing agent and administrative advisor.
The U.S. Trustee for Region 2 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case. The
committee tapped Akin Gump Strauss Hauer & Feld, LLP as bankruptcy
counsel; Cole Schotz P.C. as conflict counsel; Lazard Freres & Co.
LLC as investment banker; and Berkeley Research Group, LLC as
financial advisor.
TENNECO INC: S&P Withdraws 'B-' Rating on Senior Unsecured Debt
---------------------------------------------------------------
S&P Global Ratings withdrew its 'B-' issue-level rating and '5'
recovery rating on Tenneco Inc.'s senior unsecured debt at the
issuer's request.
This follows the company's retirement of all of its unsecured debt
not owned by Apollo. Our 'B' issue-level rating and '3' recovery
rating on Tenneco's secured debt are unchanged.
THERMOGENESIS HOLDINGS: Unit Inks Supply Agreement With CBR Systems
-------------------------------------------------------------------
Thermogenesis Holdings, Inc. reported in a Form 8-K filed with the
Securities and Exchange Commission that on May 29, 2024,
ThermoGenesis Corp., a wholly owned subsidiary of the Company,
entered into a Manufacture and Supply Agreement with CBR Systems,
Inc. Under the terms of the Agreement, the Company will supply CBR
with the Company's AutoXpress System cord blood processing system
and disposables. The term of the Agreement is for three years with
automatic renewal in one-year increments unless either party
provides a six month notice of non-renewal.
In furtherance of the Agreement, the Company and CBR entered into
an Amended and Restated Technology License and Escrow Agreement.
Under the terms of the agreement, the events or conditions that
constitute a default were changed to remove the financial covenant
requiring the Company's cash balance to be at least $1,000,000 net
of non-convertible debt and borrowed funds that are payable with
one year at each month end. Additionally, the agreement removes
the safety stock requirement for the Company and changes the
requirement that the Company must deliver AXP products within 120
days of the delivery date requested by CBR to 90 days.
A full-text copy of the Agreement is available for free at:
https://www.sec.gov/Archives/edgar/data/811212/000143774924019139/ex_683255.htm
About ThermoGenesis
ThermoGenesis Holdings, Inc. develops and commercializes a range of
automated technologies for cell-banking, cell-processing, and
cell-based therapeutics. Since the 1990's, ThermoGenesis Holdings
has been a pioneer in, and a leading provider of, automated systems
that isolate, purify and cryogenically store units of hematopoietic
stem and progenitor cells for the cord blood banking industry. The
Company was founded in 1986 and is incorporated in the State of
Delaware and headquartered in Rancho Cordova, CA.
New York, NY-based Marcum LLP, the Company's auditor since 2015,
issued a "going concern" qualification in its report dated April
15, 2024, citing that the Company has a significant working capital
deficiency, has incurred significant losses and needs to raise
additional capital to grow its business, fund operating expenses
and make interest payments. These conditions raise substantial
doubt about the Company's ability to continue as a going concern.
TITAN ENVIRONMENTAL: Financial Woes Raise Going Concern Doubt
-------------------------------------------------------------
Titan Environmental Solutions Inc. disclosed in a Form 10-Q Report
filed with the U.S. Securities and Exchange Commission for the
quarterly period ended March 31, 2024, that substantial doubt
exists about its ability to continue as a going concern.
For the three months ended March 31, 2024, the Company had a net
loss of $2,258,944, compared to a net loss of $682,297 for the same
period in 2023. The working capital of the Company was a deficit of
$13,123,723 as of March 31, 2024 (deficit of $10,935,108 as of
December 31, 2023). The March 31, 2024 working capital deficiency
includes $2,257,090 of principal repayments from the Michaelson
Note, due by June 30, 2024; the Company currently does not have
sufficient funds to repay this debt.
On January 5, 2023, the Company completed its asset acquisition of
the Recoup Digester Assets and as part of the consideration,
assumed the liabilities of a $3,017,090 Secured Promissory Note
owed to Michaelson Capital Special Finance Fund II, L.P. The
Company and Michaelson agreed to amend and restate the Secured
Promissory Note, as well as sign a related Forbearance Agreement.
The Michaelson Note originally had a 12% per annum interest rate.
The Michaelson Note has the following terms:
(1) the Company was to make monthly interest payments for the
interest amounts owed,
(2) the Company was to make monthly principal payments of
$35,000,
(3) the Company was to make a $250,000 principal repayment due
as of December 31, 2023, and
(4) the Company was to repay all other outstanding amounts
owed by December 31, 2023.
The Michaelson Note also includes a provision granting Michaelson a
security interest and lien on all of the Company's assets as
collateral.
In October 2023, the Company and Michaelson agreed to forbear the
principal payments owed to Michaelson during the three months ended
September 30, 2023 until October 30, 2023. On December 28, 2023 the
Company and Michaelson signed a Forbearance Agreement that was
accounted for as a debt modification in accordance with ASC 470 –
Debt.
The December Michaelson Amendment established a period ending on
March 31, 2024 during which Michaelson agreed to forbear from
exercising its rights against the Company with respect to a
default. Additionally, it set the following repayment terms:
1) on or before December 31, 2023, the Company was to make a
$125,000 principal payment,
2) on or before January 31, 2024, the Company was to make a
principal payment of $50,000,
3) on or before March 31, 2023, the Company was to repay its
remaining principal obligations to Michaelson,
4) beginning on January 2024, the Company was to make three
monthly interest payments of $22,571, and
5) following the payment of its other obligations owed to
Michaelson, the Company was to issue to Michaelson $50,000 worth of
preferred stock at the current offering terms and conditions.
In April 2024, the Company and Michaelson agreed to extend the term
of the Michaelson Note until June 30, 2024, and forbear all other
terms until May 1, 2024. In exchange for such extension and
forbearance, the Company agreed to:
1) pay $600,000 to Michaelson upon the closing of the
acquisition of Standard Waste Services, LLC, of which $500,000 will
be repayment of principal and $100,000 will be a fee for the
forbearance (payable $50,000 in cash and $50,000 in Series B
Preferred Stock),
2) any new debt incurred by the Company shall be subordinated
to the Michaelson Note, and 3) Michaelson is to receive 25% of the
net proceeds on any capital raised greater than $6 million.
Management's plans include raising capital through issuances of
equity and debt securities, and minimizing operating expenses of
the business to improve the Company's cash burn rate. On July 17,
2023, the Company converted $1,944,000 of principal and $75,263 of
accrued interest related to its outstanding convertible note
payables into Series A rights to receive common stock, resulting in
the extinguishment of almost all of the Company's convertible note
embedded derivative liabilities. In addition, the Company has been
successful in attracting substantial capital from investors
interested in the current public status of the Company that has
been used to support its ongoing cash outlays. This includes
$250,000 of convertible notes and $650,000 of warrants during the
three months ended March 31, 2024.
The Company believes, but cannot guarantee, it will continue to be
able to attract capital from outside sources as it pursues a move
to a national stock exchange. The Company has engaged a qualified
investment bank to assist in the uplisting of its common stock and
simultaneous raise of capital. In addition, the Company's revenue
continues to grow and management expects the Company to shrink its
net losses over the upcoming quarters through organic and
acquisitive growth. The Company has identified a plan to decrease
expenses going forward to reduce its cash burn.
A full-text copy of the Company's Form 10-Q is available at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1514056/000149315224019697/form10-q.htm
About Titan Environmental
Bloomfield Hills, Mich.-based Titan Environmental Solutions, Inc.
is a professional service firm that provides consultation on
regulatory compliance to departments at corporations, public
agencies and residential communities to ensure that our clients are
aware of and take steps to comply with relevant laws and
regulations as well provide a solution to remove the risk caused by
harmful environmental hazards.
As of March 31, 2024, the Company has $22,907,794 in total assets,
$19,217,412 in total liabilities, and $3,690,382 million in total
stockholders' equity.
TREE HOUSE: Hires Hagood Law Group as Special Litigation Counsel
----------------------------------------------------------------
Tree House seeks approval from the U.S. Bankruptcy Court for the
Middle District of Florida to employ Hagood Law Group as special
litigation counsel.
The firm will employ special litigation counsel for the
representation pertaining to the eviction action for the property
located at 2919 Marion Way, Haines City, FL 33844
The firm will be paid at $350 per hour.
The firm will be paid a retainer in the amount of $1050.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Peter P. Hagood, Esq., a partner at Hagood Law Group, 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:
Peter P. Hagood, Esq.
Hagood Law Group
451 Maitland Ave.
Altamonte Springs, FL 32701
Tel: (321) 285-1900
About Tree House LLC
Tree House LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-01823) on April 3,
2024, with $1 million to $10 million in both assets and
liabilities. Garrett Kenny, manager, signed the petition.
The Debtor tapped Justin M. Luna, Esq., at Latham Luna Eden &
Beaudine, LLP as legal counsel and John S. Roicki, CPA, at Babione,
Kuehler & Company as accountant.
TRP BRANDS: Seeks to Hires FGMK LLC as Accountant
-------------------------------------------------
TRP Brands LLC seeks approval from the U.S. Bankruptcy Court for
the Northern District of Illinois to employ FGMK LLC as
accountant.
The firm will provide these services:
a. prepare tax compliance documents for the Debtors' tax year
ended September 30, 2023;
b. assist the Debtors in the preparation of post-petition
budgets, provide liquidation analyses or asset valuations; and
c. prepare monthly cash flow statements, or otherwise
administer or assist with the administration of the case.
The firm will be paid at these rates:
Partners $425 to $625 per hour
Managers $350 to $425 per hour
Staff $165 to $350 per hour
The firm will be paid a retainer in the amount of $ $49,500.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
The firm has an unsecured claim from the Debtor in the amount of
$123,112.05.
Adam Daubenspeck, a partner at FGMK LLC, 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:
Adam Daubenspeck
FGMK LLC
333 W. Wacker Drive, 6th Floor
Chicago, IL 60606
Tel: (312) 818-4300
About TRP Brands LLC
TRP Brands, LLC and The RoomPlace Furniture & Mattress, LLC filed
Chapter 11 petitions (Bankr. N.D. Ill. Lead Case No. 24-01529) on
Feb. 2, 2024. Valerie Berman-Knight, president, signed the
petitions.
At the time of the filing, TRP Brands reported up to $50,000 in
assets and $50 million to $100 million in liabilities while
RoomPlace reported up to $50,000 in assets and $100 million to $500
million in liabilities.
Judge Deborah L. Thorne oversees the cases.
E. Philip Groben, Esq., at Gensburg Calandriello & Kanter, P.C. is
the Debtors' legal counsel.
The U.S. Trustee for Region 11 appointed an official committee of
unsecured creditors in these Chapter 11 cases. The committee tapped
FisherBroyles, LLP as its legal counsel.
TURF APPEAL: Seeks to Hire Flinton Smallwood CPA as Accountant
--------------------------------------------------------------
Turf Appeal, Inc. seeks approval from the U.S. Bankruptcy Court for
the Western District of Oklahoma to hire Flinton Smallwood CPA, PC
as its accountant.
The firm will assist the Debtor in performing all accounting
related tasks, including, but not limited to, preparing all of
Debtor's accounting, filing Debtor's tax returns, preparing Monthly
Operating Report and other required financial reporting
requirements in this case and otherwise provide general accounting
and related support needed to assist Debtor in preparing and
maintaining all Debtor's books and records.
The firm will bill $325 per hour for its services, $80 for payroll
services and will seek reimbursement for its out-of-pocket
expenses.
Jay Flinton, CPA of Flinton Smallwood, disclosed in a court filing
that the firm neither holds nor represents any interest adverse to
the Debtor and its estate.
The firm can be reached through:
Jay Flinton CPA,
Flinton Smallwood, CPA, PC
9400 N Broadway Extension Ste 520
Oklahoma City, OK 73114
Phone: (405) 478-9595
Email jay@flintonsmallwoodcpa.com
About Turf Appeal
Turf Appeal, Inc. is a lawn care company located in Oklahoma City.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Okla. Case No. 24-10590) on March 12,
2024, with $324,921 in assets and $1,080,537 in liabilities. Matt
Doerr, owner and president, signed the petition.
Judge Janice D. Loyd presides over the case.
Amanda R. Blackwood, Esq., at Blackwood Law Firm, PLLC represents
the Debtor as bankruptcy counsel.
VFH PARENT: Moody's Lowers CFR to Ba3 & Issuer Rating to B1
-----------------------------------------------------------
Moody's Ratings has downgraded all ratings of VFH Parent LLC (VFH
Parent), including its corporate family rating to Ba3 from Ba2, its
long-term issuer rating to B1 from Ba3 and its backed senior
secured bank credit facility rating to B1 from Ba3, with a stable
outlook. VFH Parent is a subsidiary and borrowing entity of Virtu
Financial, Inc. (Virtu), and is the entity that indirectly controls
all of Virtu's major operating subsidiaries. This concludes Moody's
review for downgrade that commenced on May 2, 2024. Previously, the
ratings were on review for downgrade.
RATINGS RATIONALE
The downgrade reflects Virtu's shareholder-friendly financial
policies which have contributed to a decline in shareholder's
equity and a weaker ratio of trading capital coverage of debt
relative to many of its peers in the technology-driven
institutional brokerage industry. Moody's expects this weakness
relative to peers to persist given Virtu's demonstrated shareholder
distribution policies over the past several years.
VFH Parent's Ba3 CFR continues to reflect its franchise as a
technology enabled institutional brokerage firm that makes markets
and provides related execution services to market participants
across asset classes and execution venues globally, said Moody's.
Through market cycles, Virtu's revenues and cash flows are driven
by the competitive nature of electronic market-making, transaction
volumes and volatility, and the effectiveness of its risk controls.
Virtu's business model entails substantial operational risk which
it manages primarily through a series of pre-set guardrails
governing various trade, order, and other risk parameters, which
trigger automatic strategy lockdowns when breached. These automated
controls, short holding periods and granular position sizes reduce
the capital intensity of Virtu's business model.
Moody's said that liquidity remains a strength of Virtu's ratings
and partially offset its shareholder-friendly policies. As a
technology-driven liquidity provider, Virtu's business model
results in a rapidly turning balance sheet. Although, the firm uses
short-term wholesale funding, this funding is diversified amongst
secured financing counterparties, prime brokers, and banks.
Virtu is dependent on the reliability, accuracy, and performance of
its trading platform to evaluate and monitor the risks of its
trading activities and rebalance positions throughout the day. To
date, these trading strategies and risk controls have been
effective, and Virtu has been consistently profitable over the
cycle and strongly profitable in periods of heightened volatility.
Moody's expects Virtu to maintain solid earnings performance,
albeit with fluctuation based on shifts in market volumes and
volatility.
The B1 issuer rating on VFH Parent and on its senior secured credit
facilities are a notch below its Ba3 CFR because of the structural
subordination of VFH Parent to Virtu's operating companies, where
the preponderance of the group's debt and debt-like obligations
reside.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Factors that could lead to an upgrade
-- A substantial sustained increase in tangible equity with a
consequent improvement in balance sheet leverage may lead to an
upgrade.
-- The rating could also be upgraded should Virtu continue to
diversify and increase the flexibility of its wholesale funding to
increase coverage of peak liquidity needs.
-- The effectiveness of operational risk management practices and
its compliance, regulatory and competitive environment would also
be important factors in considering Virtu for upgrade.
Factors that could lead to a downgrade
-- A large trading loss caused by a breakdown in risk management
and controls.
-- Another large acquisition resulting in a sizable further
increase in debt obligations without a feasible plan for prompt
deleveraging.
-- Regulatory or competitive changes that adversely affect Virtu's
business practices and weakens profitability.
The principal methodology used in these ratings was Securities
Industry Market Makers Methodology published in November 2019.
VICTORY TRANSPORTATION: Christy Brandon Named Subchapter V Trustee
------------------------------------------------------------------
The Acting U.S. Trustee for Region 18 appointed Christy Brandon,
Esq., a practicing attorney in Bigfork, Mont., as Subchapter V
trustee for Victory Transportation, LLC.
Ms. Brandon will be paid an hourly fee of $300 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Brandon declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Christy L. Brandon
P.O. Box 1544
Bigfork, MT 59911
Phone: (406) 837-5445
Email: christy@brandonlawfirm.com
About Victory Transportation
Victory Transportation, LLC offers flexible freight transportation
solutions that involve multiple modes of transport, including road,
rail, and sea.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Wash. Case No. 24-00802) on May 17,
2024. In the petition signed by Igor Chernetskiy, chief executive
officer, the Debtor disclosed $3,082,023 in assets and $2,867,518
in liabilities.
Judge Frederick P. Corbit oversees the case.
Elizabeth M. McBride, Esq., at Elizabeth M. McBride, P.S. CORP.,
represents the Debtor as legal counsel.
VVI HOLDINGS: Hires Law Office of Geri Lyons Chase as Counsel
-------------------------------------------------------------
VVI Holdings, LLC seeks approval from the U.S. Bankruptcy Court for
the District of Maryland to employ Law Office of Geri Lyons Chase
as counsel.
The firm will provide these services:
a. give the Debtor legal advice with respect to its powers and
duties as Debtor and Debtor-in-Possession in the continued
management of its property and operation of its affairs;
b. prepare on behalf of the Debtor necessary complaints,
applications, answers, orders, reports, schedules, statement of
financial affairs and other legal papers;
c. take the necessary steps to stay any action by creditors
seeking liens, attachments, or other advantages by legal process or
nonjudicial process;
d. negotiate and prepare a Plan of Reorganization; and
e. perform all other legal services for the Debtor as may be
necessary herein.
The firm will be paid at $375 per hour.
The firm received a retainer in the amount of $3,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Geri Lyons Chase, Esq., a partner at Law Office of Geri Lyons
Chase, 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:
Geri Lyons Chase, Esq.
Law Office of Geri Lyons Chase
2007 Tidewater Colony Drive, Suite 2B
Annapolis, MD 21401
Tel: (410) 573-9004
Email: gchase@glchaselaw.com
About VVI Holdings, LLC
VVI Holdings is the owner of three properties, all located in
Maryland, having a total current value of $3.61 million.
VVI Holdings LLC in Upper Marlboro, MD, filed its voluntary
petition for Chapter 11 protection (Bankr. D. Md. Case No.
24-13627) on April 30, 2024, listing $3,609,000 in assets and
$2,222,795 in liabilities. Frederick Vermillion as managing member,
signed the petition.
Judge Lori S. Simpson oversees the case.
LAW OFFICE OF GERI LYONS CHASE serve as the Debtor's legal counsel.
WEISS MULTI-STRATEGY:Jefferies Wants $30Mil. Bonus Payouts Clawback
-------------------------------------------------------------------
Steven Church, Jonathan Randles and Hema Parmar of Bloomberg News
report that creditor Jefferies Financial Group, said in court
Tuesday, May 28, 2024, that debtor Weiss Multi-Strategy Advisers
should claw back about $30 million that it paid employees just
before filing for bankruptcy.
At Weiss' first bankruptcy hearing, Jefferies claimed the hedge
fund wrongly paid out bonuses when Weiss was already insolvent, and
that cash should have been used to pay down debt owed to the bank.
A Weiss lawyer said the bonuses were standard compensation for its
employees and necessary because at the time the firm was trying to
secure a rescue deal with Millennium Management.
About Weiss Multi-Strategy Advisers
Founded by George Weiss in 1978, Weiss Multi-Strategy Advisers LLC
was a New York-based investment management firm that managed $3.1
billion as of mid-2023.
The company chose to file bankruptcy and wind down operations after
examining all of its short and long-term options. Millennium
Management was in talks to take over operations but walked about
after failing to reach a deal.
Weiss Multi-Strategy Advisers filed a voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No.
24-10743) on Apr. 29, 2024. In the petition signed by George Weiss,
manager, the Debtor disclosed $10 million to $50 million in assets
and $100 million to $500 million in liabilities.
Judge Martin Glenn oversees the case.
The Debtor tapped Tracy L. Klestadt, Esq., at Klestadt Winters
Jureller Southard & Stevens, LLP as counsel and Omni Agent
Solutions, Inc. as claims and noticing agent.
WEWORK INC: Adam Neumann Ends Bid to Buy Company
------------------------------------------------
Adam Neumann has ended his bid to re-acquire WeWork (WEWKQ.PK), as
the coworking business he co-founded has chosen to emerge from
bankruptcy with an "unrealistic" plan, he told the New York Times
Dealbook.
Earlier this year, Neumann's new real estate venture, Flow Global,
had submitted a bid of more than $500 million to take over WeWork
and its assets, Reuters has reported.
"For several months, we tried to work constructively with WeWork to
create a strategy that would allow it to thrive," Neumann said in
his statement to DealBook, according to Reuters.
"Instead, the company looks to be emerging from bankruptcy with a
plan that appears unrealistic and unlikely to succeed."
Neumann has previously said WeWork has refused to engage in talks,
instead seeking to use its bankruptcy court case to "rubber-stamp"
a deal that would turn over control of the company to "hand-picked
buyers."
WeWork, once privately valued at $47 billion, aimed to
revolutionize the office market by leasing large properties on
longer leases and then renting them to multiple smaller businesses
seeking flexible workspaces for shorter arrangements. Founded in
2010, WeWork expanded rapidly, but the company's cash burn meant it
could not keep up with debt payments.
With over $13 billion in long-term leases, it filed for Chapter 11
bankruptcy protection in 2023 to renegotiate these agreements.
Neumann was ousted in 2019 following a failed attempt to take the
company public amidst growing investor concerns about losses and
his leadership.
WeWork has been on a spree to rationalize its real estate portfolio
to cut down on rent obligations.
In mid-May, it said it has determined a path forward at over 97% of
its wholly-owned lease portfolio and expects to reduce total rent
commitments by over $11 billion.
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About WeWork Inc.
New York, NY-based WeWork Inc. is a global flexible workspace
provider, serving a membership base of businesses large and small
through its network of 779 Systemwide Locations, including 622
Consolidated Locations as of December 2022.
WeWork Inc. and its affiliates sought relief under Chapter 11 of
the Bankruptcy Code (Bankr. D.N.J. Case No. 23-19865) on Nov. 6,
2023. In its petition, WeWork Inc. reported $19 billion of
liabilities and $15 billion of assets.
The Debtors tapped Kirkland & Ellis LLP and Kirkland & Ellis
International LLP, Cole Schotz PC, and Munger, Tolles & Olson LLP
as counsel; Alvarez & Marsal North America LLC and Province, LLC as
financial advisors; PJT Partners LP as investment banker; and
McManimon, Scotland & Baumann, LLC as local counsel. Softbank is
represented by Weil Gotshal & Manges LLP and Wollmuth Maher &
Deutsch LLP as legal counsel and Houlihan Lokey Capital as
financial advisor.
The Ad Hoc Group of First Lien and Second Lien Lenders is
represented by Davis Polk & Wardwell LLP (Eli Vonnegut, Elliot
Moskowitz, Natasha Tsiouris, Jonah Peppiatt) and Greenberg Traurig
LLP (Alan Brody) as legal counsel and Ducera Partners LLC as
financial advisor.
WISA TECHNOLOGIES: Cancels Special Meeting Due to Lack of Quorum
----------------------------------------------------------------
WiSA Technologies, Inc. disclosed in a Form 8-K filed with the
Securities and Exchange Commission that on May 31, 2024, it
reconvened the Company's special meeting of stockholders that was
previously adjourned from May 13, 2024. At the Special Meeting, an
aggregate of 111,085,390 shares (or 740,569 shares after giving
effect to the Company's 1-for-150 reverse stock split effected on
April 12, 2024) of the Company's common stock were present in
person or by proxy and entitled to vote thereat, which did not
constitute a quorum. Accordingly, no action was taken with respect
to any of the proposals presented at the Special Meeting, and the
Special Meeting was cancelled.
About WiSA Technologies
WiSA Technologies, Inc. (NASDAQ: WISA) is a provider of immersive,
wireless sound technology for intelligent devices and
next-generation home entertainment systems. Working with leading
CE brands and manufacturers such as Harman International, a
division of Samsung; LG; Hisense; TCL; Bang & Olufsen; Platin
Audio; and others, the company delivers immersive wireless sound
experiences for high-definition content, including movies and
video, music, sports, gaming/esports, and more. WiSA Technologies,
Inc. is a founding member of WiSA (the Wireless Speaker and Audio
Association) whose mission is to define wireless audio
interoperability standards as well as work with leading consumer
electronics companies, technology providers, retailers, and
ecosystem partners to evangelize and market spatial audio
technologies driven by WiSA Technologies, Inc. The company is
headquartered in Beaverton, OR with sales teams in Taiwan, China,
Japan, Korea, and California.
San Jose, California-based BPM LLP, the Company's auditor since
2016, issued a "going concern" qualification in its report dated
April 1, 2024, citing that the Company's recurring losses from
operations, a net capital deficiency, available cash and cash used
in operations raise substantial doubt about its ability to continue
as a going concern.
XINYUAN REAL: Assentsure PAC Raises Going Concern Doubt
-------------------------------------------------------
Xinyuan Real Estate Co., Ltd. disclosed in a Form 20-F Report filed
with the U.S. Securities and Exchange Commission for the fiscal
year ended December 31, 2023, that its auditor has expressed
substantial doubt about the Company's ability to continue as a
going concern.
Singapore-based Assentsure PAC, the Company's auditor since 2022,
issued a "going concern" qualification in its report dated May 15,
2024, citing that the Company's ability to generate funds to meet
short term operating cash requirements and loan repayments is
reliant on the Company's ability to sell the real estate properties
it holds, or to obtain alternative financing. The timing of these
sales is uncertain and as a result the Company is currently reliant
on long term investor loans being renewed when they come up for
repayment. These conditions raise substantial doubt about its
ability to continue as a going concern.
Xinyuan Real Estate said, "As of December 31, 2023, our short-term
bank loans and other debt, and current portion of long-term bank
loans and other debt amounted to US$1,329.1 million. As announced
in the Form 6-K dated July 19, 2022, the Company did not make
payments in full for the June 2022 Senior Secured Notes of RMB545.3
million issued on July 3 and August 6, 2020 with a maturity date on
June 29, 2022. The default also triggered cross-default of other
senior notes issued by us. On August 18, 2023, eligible holders of
the senior notes in the aggregate principal amount of US$307.36
million exchanged their notes for, and the Company delivered the
September 2027 Senior Secured Notes in the aggregate principal
amount of US$331.3 million due on September 30, 2027 and US$1.54
million in cash consideration in full satisfaction of the exchange
consideration to those eligible holders. The carrying amount of the
June 2022 Senior Secured Notes still in default was US$393.0
million as of December 31, 2023."
"We also breached certain covenants relating to bank and other
borrowings of US$637.8 million as of December 31, 2023. Other than
that, up to the date of approval of these consolidated financial
statements, we continue to be in breach of certain covenants and
other lenders have not demanded for immediate repayment of other
bank and other borrowings."
"In addition, we are involved in other various litigation and
arbitration cases for various reasons and the contingent
compensation is subject to the court verdict. The Company
anticipates that the market conditions in the real estate sector
remain under pressure in 2024, and therefore, in the absence of a
sharp recovery in the market and the availability of various
financing options, the Company remains cautious about its liquidity
in the near term."
In view of such circumstances, the Company's directors consider
that it has taken various measures and will have adequate funds
available to enable it to operate as a going concern, taking into
account the past operating performance of the Group and the
following:
(a) The Group has been in negotiation with the noteholder to
reach agreement on a further debt restructuring plan;
(b) In 2023, the Group reached an agreement with corporate
bondholders of RMB corporate bonds with carrying amount of RMB273.8
million as of December 31, 2023. Pursuant to the agreement, the
repayment date of the corporate bond was extended to November 13,
2025 and January 7, 2026;
(c) Up to the date of approval of the consolidated financial
statements, the Group successfully extended the maturity date of
long-term loans of the aggregate principal amount of US$35.3
million to no earlier than May 2025, alleviating the pressure on
liquidity within a reasonable timeframe;
(d) The Group is actively in discussions with the other
existing lenders to renew the Group's certain borrowings and/or not
to demand immediate repayment until the Group has successfully
completed the property construction projects and generated
sufficient cash flows therefrom. These discussions have been
constructive and focused on possible actions in light of current
circumstances but do require time to formulate or implement due to
ongoing changes in market conditions;
(e) The Group will continue to implement measures to
accelerate the pre-sales and sales of its properties under
development and completed properties, and to speed up the
collection of outstanding sales proceeds and other receivables.
Recent relaxation of policies with regards to the property market
in the PRC have been encouraging to increase buyer interests and
stimulate demand. Subject to the improvement of the market
sentiment, the Group will actively adjust sales and pre-sale
activities to better respond to changing markets to achieve the
latest budgeted sales and pre-sales volumes and amounts;
(f) The Group will continue to control administrative costs and
contain unnecessary capital expenditures to preserve liquidity. The
Group will also continue to actively assess additional measures to
further reduce discretionary spending; and
(g) The Group has been proactive in seeking ways to settle the
outstanding litigations of the Group. The Group will seek to reach
an amicable solution on the charges and payment terms to the claims
and litigations which have not yet reached a definite outcome.
In the event forecast cash flow is not achieved or the renewal of
borrowings and public senior notes does not undergo as planned, the
Company's directors have also evaluated other plans that could be
undertaken to improve their liquidity position as follow:
1) The Group could adjust their original sale plan for some
residential properties and commercial buildings to an earlier stage
in order to generate additional funds; and
2) The Group will continue to seek to obtain additional new
sources of financing from potential equity investment partners or
to seek suitable opportunities to dispose of its equity interest in
certain project development companies to generate additional cash
inflows. The Group's properties are predominantly located in higher
tier cities that make them relatively more attractive to potential
buyers and retain a higher value in current market conditions.
Notwithstanding, uncertainty exists as to whether the renewal of
borrowings and public senior notes can be renewed and as to all
other alternative operating and financing plans as the Group is
still negotiating with its external financiers on the financing to
the Group and the sales of properties depend on market conditions.
A full-text copy of the Company's Form 20-F is available at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1398453/000110465924061570/xin-20231231x20f.htm
About Xinyuan Real Estate
Xinyuan Real Estate Co., Ltd. is a Chinese real estate company.
Xinyuan has traditionally engaged principally in residential real
estate development and the provision of property management
services, focusing on Tier II cities in China.
As of December 31, 2023, the Company has $5,333,393,231 in total
assets, $5,225,980,849 in total liabilities, and $107,412,382 in
total equity.
YZ ENTERPRISES: Seeks Cash Collateral Access
--------------------------------------------
YZ Enterprises Inc. asks the U.S. Bankruptcy Court for the Northern
District of Ohio for authority to use cash collateral and provide
adequate protection.
The cash collateral will be used by the Debtor to funds its
day-to-day business operations, including the payment of employees,
suppliers, utilities and other ordinary course expenses.
The parties with an interest in the Debtor's cash collateral are
the United States Small Business Administration, Northview Capital,
LLC, Franklin Capital Holdings, LLC, and Unique Funding Solutions,
LLC.
Prior to the commencement of the case, the Debtor entered into a
loan agreement with United States Small Business Administration.
This loan was taken on or around December 14, 2021. The SBA Loan
was in the principal amount of $2 million.
The SBA Loan matures 30 years from the date of the Note at which
time all the balance of interest and principal is due and fully
payable. Monthly installment payments of principal and interest
under the Note are $10,514, and commence 24 months from the date of
the Note. Interest under the Note is 3.75% per annum.
To secure its obligation under the SBA Loan, the Debtor granted to
the SBA a security interest in substantially all of its personal
property including the Debtor's accounts and other rights to
payment which the Debtor believes may constitute cash collateral
within the meaning of 11 U.S.C. Section 363(a).
A financing statement, regarding the SBA's security interest in the
Debtor's personal property, including cash collateral, was filed
with the Ohio Secretary of State on December 3, 2012, and is
designated document number OH00259283877.
At the commencement of the case, it is believed the Debtor owes the
SBA under the SBA Loan the approximate amount of $2 million.
The SBA Loan and the security interest the SBA claims under it were
subordinated by the SBA to the interests of Northview Capital LLC
and Franklin Capital Holdings, LLC.
In addition, the Debtor is indebted to Northview Capital LLC. The
indebtedness to Northview is based upon a loan made to the Debtor
on February 2, 2023. The Northview Loan was in the principal amount
of $200,00.
The Debtor also entered into a factoring agreement with Franklin
Capital Holdings, LLC. The factoring agreement between the Debtor
and Franklin is dated July 10, 2023. The Debtor does not believe
any funds are owed to Franklin under the Franklin Factoring
Agreement. A financing statement, regarding the Franklin's security
interest in the Debtor's personal property, was filed with the Ohio
Secretary of State on June 19, 2023, and is designated document
number OH002738344632. It is believed that the SBA subordinated its
interest to that claimed by Franklin in the Debtor's property.
In addition, prior to the commencement of this case, the Debtor
obtained funding from Unique Funding Solutions, LLC. The amount of
the funding obtained by the Debtor from Unique was $71,250. The
funding agreement was executed on or about January 30, 2024. The
Unique Loan is structured as the purchase of future receivables of
the Debtor in the amount of $105,000. The approximate amount owed
to Unique under the Unique Loan at the time of filing was $63,000.
As adequate protection, SBA will be granted a post-petition
perfected security interest under 11 U.S.C. Section 361(2) to the
same extent and with the same priority as the SBA held on a
prepetition basis in the Debtor's property.
Northview will receive a monthly payment of $3,500 as adequate
protection, which will be due on the 5th day of every month. In
addition,
Northview will be granted a post-petition perfected security
interest under 11 U.S.C. Section 361(2) to the same extent and with
the same priority as Northview held on a prepetition basis in the
Debtor's property.
As to Franklin, the Debtor proposes to provide a post-petition
perfected security interest under 11 U.S.C. Section 361(s). Unique
Funding Solutions will be granted a post-petition perfected
security interest under 11 U.S.C. Section 361(2) to the same extent
and with the same priority as such creditors held on a prepetition
basis in the Debtor's property.
A copy of the motion is available at https://urlcurt.com/u?l=5IMSZ8
from PacerMonitor.com.
About YZ Enterprises Inc.
YZ Enterprises Inc. manufactures specialty cookies from its base of
operations.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ohio Case No. 24-31033-jpg) on May 31,
2024. In the petition signed by Tamar Markham, CEO, the Debtor
disclosed up to $1 million in assets and up to $10 million in
liabilities.
Eric Neuman, Esq., at Diller and Rice, LLC, represents the Debtor
as legal counsel.
[*] Judges Adopt Guidelines for Combined Disclosure Statement, Plan
-------------------------------------------------------------------
By entry of General Order M-634, the Board of Judges has adopted
procedural guidelines for requesting a combined hearing on the
approval of a disclosure statement and the confirmation of a
chapter 11 plan and related matters. The Court extends thanks and
appreciation to the Business Bankruptcy Advisory Committee for
their work on this project. The procedural guidelines are
available at https://tinyurl.com/ya2r6w8s
[] Real Estate Auction Slated for June 19
-----------------------------------------
A court-ordered real estate auction will take place on June 19,
2024, for the sale of a6,256 sq. ft. one-story former daycare
building located at 207 Packer Drive, Roberts, Wisconsin. On-site
inspections from 12:00 noon to 2:00 p.m. on May 28, 2024, June 4,
2024, and June 13, 2024. Further information regarding the sale
contact Rick Levin & Associates Inc., Tel: 312-440-2000.
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re Davon Jermell White
Bankr. C.D. Cal. Case No. 24-14190
Chapter 11 Petition filed May 28, 2024
represented by: Stella Havkin, Esq.
In re Across the Pond, LLC
Bankr. D.C. Case No. 24-00179
Chapter 11 Petition filed May 28, 2024
See
https://www.pacermonitor.com/view/ZWAGYHA/Across_the_Pond_LLC__dcbke-24-00179__0001.0.pdf?mcid=tGE4TAMA
represented by: Jeffery T. Martin,, Jr., Esq.
MARTIN LAW GROUP PC
E-mail: jeff@martinlawgroupva.com
In re Keystone Management Group, LLC
Bankr. M.D. Fla. Case No. 24-01506
Chapter 11 Petition filed May 28, 2024
See
https://www.pacermonitor.com/view/OF3RHHY/Keystone_Management_Group_LLC__flmbke-24-01506__0001.0.pdf?mcid=tGE4TAMA
represented by: Eric D. Jacobs, Esq.
VENABLE LLP
Email: EDJacobs@Venable.com
In re VRP Equity, LLC
Bankr. M.D. Fla. Case No. 24-02637
Chapter 11 Petition filed May 28, 2024
See
https://www.pacermonitor.com/view/5CDKFIQ/VRP_Equity_LLC__flmbke-24-02637__0001.0.pdf?mcid=tGE4TAMA
represented by: Joshua Liszt, Esq.
JOSHUA LISZT
E-mail: josh@liztlawpa.com
In re Benjamin Jacob Brown
Bankr. N.D. Fla. Case No. 24-30418
Chapter 11 Petition filed May 28, 2024
represented by: Byron Wright, Esq.
In re #1 L&T Contracting, LLC
Bankr. M.D. Ga. Case No. 24-50768
Chapter 11 Petition filed May 28, 2024
See
https://www.pacermonitor.com/view/263EMQQ/1_LT_Contracting_LLC__gambke-24-50768__0001.0.pdf?mcid=tGE4TAMA
represented by: Wesley J. Boyer, Esq.
BOYER TERRY LLC
E-mail: Wes@BoyerTerry.com
In re Shana Dawn Davis
Bankr. D. Nev. Case No. 24-12632
Chapter 11 Petition filed May 28, 2024
represented by: Matthew I Knepper, Esq.
In re 390-394 North 5th Street LLC
Bankr. D.N.J. Case No. 24-15374
Chapter 11 Petition filed May 28, 2024
See
https://www.pacermonitor.com/view/WQVMHFI/390-394_NORTH_5TH_STREET_LLC__njbke-24-15374__0001.0.pdf?mcid=tGE4TAMA
represented by: Avram D. White, Esq.
WHITE AND CO. ATTORNEYS AND COUNSELLORS
E-mail: avram.randr@gmail.com
In re Jd Hilburn Ave LLC
Bankr. E.D.N.Y. Case No. 24-42202
Chapter 11 Petition filed May 28, 2024
See
https://www.pacermonitor.com/view/GT2SQOI/Jd_Hilburn_Ave_Llc__nyebke-24-42202__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Robert Matthew Wallach
Bankr. E.D.N.Y. Case No. 24-72018
Chapter 11 Petition filed May 28, 2024
In re Irregular Mikes LLC d/b/a Baker Street Irregulars
Bankr. S.D.N.Y. Case No. 24-10938
Chapter 11 Petition filed May 28, 2024
See
https://www.pacermonitor.com/view/QPSFUZA/IRREGULAR_MIKES_LLC_dba_Baker__nysbke-24-10938__0001.0.pdf?mcid=tGE4TAMA
represented by: H Bruce Bronson, Esq.
BRONSON LAW OFFICES PC
E-mail: hbbronson@bronsonlaw.net
In re MK Architecture PC
Bankr. S.D.N.Y. Case No. 24-22467
Chapter 11 Petition filed May 28, 2024
See
https://www.pacermonitor.com/view/3X2AN3Y/MK_Architecture_PC__nysbke-24-22467__0001.0.pdf?mcid=tGE4TAMA
represented by: Anne Penachio, Esq.
PENACHIO MALARA LLP
E-mail: anne@pmlawllp.com
In re Rustam Dosmatov
Bankr. E.D. Pa. Case No. 24-11793
Chapter 11 Petition filed May 28, 2024
In re The Center for Assisted Reproductive Technologies, LLC
Bankr. M.D. Tenn. Case No. 24-01921
Chapter 11 Petition filed May 28, 2024
See
https://www.pacermonitor.com/view/OQDLKFQ/The_Center_for_Assisted_Reproductive__tnmbke-24-01921__0001.0.pdf?mcid=tGE4TAMA
represented by: Justin Campbell, Esq.
THOMPSON BURTON PLLC
E-mail: justin@thompsonburton.com
In re The Center for Reproductive Health, P.C.
Bankr. M.D. Tenn. Case No. 24-01922
Chapter 11 Petition filed May 28, 2024
See
https://www.pacermonitor.com/view/3FLQNLY/The_Center_for_Reproductive_Health__tnmbke-24-01922__0001.0.pdf?mcid=tGE4TAMA
represented by: Justin Campbell, Esq.
THOMPSON BURTON PLLC
E-mail: justin@thompsonburton.com
In re Fertility Laboratories of Nashville, LLC
Bankr. M.D. Tenn. Case No. 24-01923
Chapter 11 Petition filed May 28, 2024
See
https://www.pacermonitor.com/view/4WMLJUI/Fertility_Laboratories_of_Nashville__tnmbke-24-01923__0001.0.pdf?mcid=tGE4TAMA
represented by: Justin Campbell, Esq.
THOMPSON BURTON PLLC
E-mail: justin@thompsonburton.com
In re American Embryo Adoption Agency, LLC
Bankr. M.D. Tenn. Case No. 24-01924
Chapter 11 Petition filed May 28, 2024
See
https://www.pacermonitor.com/view/4YPGK5Q/American_Embryo_Adoption_Agency__tnmbke-24-01924__0001.0.pdf?mcid=tGE4TAMA
represented by: Justin Campbell, Esq.
THOMPSON BURTON PLLC
E-mail: justin@thompsonburton.com
In re Underground Creative, LLC
Bankr. E.D. Wash. Case No. 24-00850
Chapter 11 Petition filed May 28, 2024
See
https://www.pacermonitor.com/view/RNSW62A/Underground_Creative_LLC__waebke-24-00850__0001.0.pdf?mcid=tGE4TAMA
represented by: Dan O'Rourke, Esq.
SOUTHWELL & O'ROURKE, P.S.
E-mail: dorourke@southwellorourke.com
In re Mougianis Industries, Inc.
Bankr. N.D. W.Va. Case No. 24-00267
Chapter 11 Petition filed May 28, 2024
See
https://www.pacermonitor.com/view/RZ4YE4I/Mougianis_Industries_Inc__wvnbke-24-00267__0001.0.pdf?mcid=tGE4TAMA
represented by: Kelly Gene Kotur, Esq.
DAVIS & KOTUR LAW OFFICE CO. LPA
E-mail: kellykotur@davisandkotur.com
In re 1416 Eastern Ave NE LLC
Bankr. D.C. Case No. 24-00180
Chapter 11 Petition filed May 29, 2024
See
https://www.pacermonitor.com/view/73O7RPA/1416_EASTERN_AVE_NE_LLC__dcbke-24-00180__0001.0.pdf?mcid=tGE4TAMA
represented by: Maurice Verstandig, Esq.
THE BELMONT FIRM
E-mail: mac@mbvesq.com
In re 3208 GSD, LLC
Bankr. D.C. Case No. 24-00191
Chapter 11 Petition filed May 29, 2024
See
https://www.pacermonitor.com/view/T7F7T2Q/3208_GSD_LLC__dcbke-24-00191__0001.0.pdf?mcid=tGE4TAMA
represented by: William C. Johnson, Jr., Esq.
THE JOHNSON LAW GROUP, LLC
E-mail: William@JohnsonLG.Law
In re 4263 6th St SE Apartments LLC
Bankr. D.C. Case No. 24-00184
Chapter 11 Petition filed May 29, 2024
See
https://www.pacermonitor.com/view/5OL4SOA/4263_6TH_ST_SE_APARTMENTS_LLC__dcbke-24-00184__0001.0.pdf?mcid=tGE4TAMA
represented by: Maurice Verstandig, Esq.
THE BELMONT FIRM
E-mail: mac@mbvesq.com
In re 4935 NHB Ave NE LLC
Bankr. D.C. Case No. 24-00185
Chapter 11 Petition filed May 29, 2024
See
https://www.pacermonitor.com/view/5VTTUAY/4935_NHB_AVE_NE_LLC__dcbke-24-00185__0001.0.pdf?mcid=tGE4TAMA
represented by: Maurice Verstandig, Esq.
THE BELMONT FIRM
E-mail: mac@mbvesq.com
In re Cellular Structures LLC
Bankr. S.D. Fla. Case No. 24-15222
Chapter 11 Petition filed May 29, 2024
See
https://www.pacermonitor.com/view/CO43TQI/Cellular_Structures_LLC__flsbke-24-15222__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re 188-03 Pineville Lane Corp
Bankr. E.D.N.Y. Case No. 24-42235
Chapter 11 Petition filed May 29, 2024
See
https://www.pacermonitor.com/view/M72HU2Y/188-03_Pineville_Lane_Corp__nyebke-24-42235__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re 399 Sackett LLC
Bankr. E.D.N.Y. Case No. 24-42242
Chapter 11 Petition filed May 29, 2024
See
https://www.pacermonitor.com/view/NVUY5MI/399_Sackett_LLC__nyebke-24-42242__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Ashley Louise Smith
Bankr. E.D.N.Y. Case No. 24-42257
Chapter 11 Petition filed May 29, 2024
represented by: Norma Ortiz, Esq.
In re Ivane Iakobashvili
Bankr. E.D.N.Y. Case No. 24-42229
Chapter 11 Petition filed May 29, 2024
represented by: Alla Kachan, Esq.
In re Lisbon Grill Ltd.
Bankr. E.D.N.Y. Case No. 24-72050
Chapter 11 Petition filed May 29, 2024
See
https://www.pacermonitor.com/view/RJTKPGA/Lisbon_Grill_Ltd__nyebke-24-72050__0001.0.pdf?mcid=tGE4TAMA
represented by: Marc A. Pergament, Esq.
WEINBERG, GROSS & PERGAMENT LLP
E-mail: mpergament@wgplaw.com
In re TJTK Realty Company, LLC
Bankr. E.D.N.Y. Case No. 24-42243
Chapter 11 Petition filed May 29, 2024
See
https://www.pacermonitor.com/view/N6TPHWY/TJTK_Realty_Company_LLC__nyebke-24-42243__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Ohun-Ini, LLC
Bankr. D.C. Case No. 24-00192
Chapter 11 Petition filed May 30, 2024
See
https://www.pacermonitor.com/view/JKZAJ6A/OHUN-INI_LLC__dcbke-24-00192__0001.0.pdf?mcid=tGE4TAMA
represented by: William C. Johnson, Jr., Esq.
THE JOHNSON LAW GROUP, LLC
In re Debra Lynn Schulman
Bankr. S.D. Fla. Case No. 24-15319
Chapter 11 Petition filed May 30, 2024
represented by: Patrick Dorsey, Esq.
In re Witman Pension Consulting L.L.C.
Bankr. S.D. Fla. Case No. 24-15330
Chapter 11 Petition filed May 30, 2024
See
https://www.pacermonitor.com/view/Y4F2DNA/Witman_Pension_Consulting_LLC__flsbke-24-15330__0001.0.pdf?mcid=tGE4TAMA
represented by: Thomas L. Abrams, Esq.
THOMAS L ABRAMS PA
E-mail: tabrams@tabramslaw.com
E-mail: William@JohnsonLG.Law
In re PV Pets, LLC
Bankr. D.N.J. Case No. 24-15472
Chapter 11 Petition filed May 30, 2024
See
https://www.pacermonitor.com/view/WK63NBQ/PV_Pets_LLC__njbke-24-15472__0001.0.pdf?mcid=tGE4TAMA
represented by: Carol L. Knowlton, Esq.
GORSKI & KNOWLTON PC
E-mail: cknowlton@gorskiknowlton.com
In re Charles R. Corey
Bankr. E.D.N.C. Case No. 24-01807
Chapter 11 Petition filed May 30, 2024
represented by: Joseph Zachary Frost, Esq.
In re Mark R. Riley
Bankr. S.D. Tex. Case No. 24-32473
Chapter 11 Petition filed May 30, 2024
In re Shift Pattern, Inc.
Bankr. W.D. Wash. Case No. 24-11356
Chapter 11 Petition filed May 30, 2024
See
https://www.pacermonitor.com/view/Z5WK2YQ/Shift_Pattern_Inc__wawbke-24-11356__0001.0.pdf?mcid=tGE4TAMA
represented by: Jennifer L. Neeleman, Esq.
NEELEMAN LAW GROUP, P.C.
E-mail: courtmail@expresslaw.com
In re Gated Shifter, Inc.
Bankr. W.D. Wash. Case No. 24-11357
Chapter 11 Petition filed May 30, 2024
See
https://www.pacermonitor.com/view/7KQQWFY/Gated_Shifter_Inc__wawbke-24-11357__0001.0.pdf?mcid=tGE4TAMA
represented by: Jennifer L. Neeleman, Esq.
NEELEMAN LAW GROUP, P.C.
E-mail: courtmail@expresslaw.com
In re Larry Gene Harding
Bankr. C.D. Cal. Case No. 24-14309
Chapter 11 Petition filed May 31, 2024
represented by: E. Gotfredson, Esq.
In re Holy Trinity Christian Church
Bankr. N.D. Ga. Case No. 24-20669
Chapter 11 Petition filed May 31, 2024
See
https://www.pacermonitor.com/view/KBADJEA/Holy_Trinity_Christian_Church__ganbke-24-20669__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re American Acrylics LLC
Bankr. N.D. Ill. Case No. 24-08049
Chapter 11 Petition filed May 31, 2024
See
https://www.pacermonitor.com/view/VHCW76Q/American_Acrylics_LLC__ilnbke-24-08049__0001.0.pdf?mcid=tGE4TAMA
represented by: Gregory K. Stern, Esq.
GREGORY K. STERN, P.C.
E-mail: greg@gregstern.com
In re Ecosmart Trucks Inc.
Bankr. N.D. Ind. Case No. 24-21006
Chapter 11 Petition filed May 31, 2024
See
https://www.pacermonitor.com/view/XF5KM3I/Ecosmart_Trucks_Inc__innbke-24-21006__0001.0.pdf?mcid=tGE4TAMA
represented by: Weston E. Overturf, Esq.
KROGER, GARDIS & REGAS, LLP
In re Greater Shepherd Missionary Baptist Church
Bankr. S.D. Ind. Case No. 24-02850
Chapter 11 Petition filed May 31, 2024
See
https://www.pacermonitor.com/view/CFENDIY/Greater_Shepherd_Missionary_Baptist__insbke-24-02850__0001.0.pdf?mcid=tGE4TAMA
represented by: David Krebs, Esq.
HESTER BAKER KREBS LLC
E-mail: dkrebs@hbkfirm.com
In re Edward P. Schoeffler
Bankr. W.D. La. Case No. 24-50459
Chapter 11 Petition filed May 31, 2024
represented by: Thomas E. St. Germain, Esq.
WEINSTEIN & ST. GERMAIN, LLC
In re DJJR Food Inc.
Bankr. D.N.J. Case No. 24-15577
Chapter 11 Petition filed May 31, 2024
See
https://www.pacermonitor.com/view/7EFFQSY/DJJR_Food_Inc__njbke-24-15577__0001.0.pdf?mcid=tGE4TAMA
represented by: Herbert K. Ryder, Esq.
LAW OFFICES OF HERBERT K. RYDER, LLC
E-mail: hryder@hkryderlaw.com
In re Maxco Construction Inc.
Bankr. E.D.N.Y. Case No. 24-72090
Chapter 11 Petition filed May 31, 2024
See
https://www.pacermonitor.com/view/OVVV57Q/Maxco_Construction_Inc__nyebke-24-72090__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Richard Joseph Troy
Bankr. E.D.N.Y. Case No. 24-72098
Chapter 11 Petition filed May 31, 2024
In re Carmen Maria Mercado Fraticelli
Bankr. D.P.R. Case No. 24-02341
Chapter 11 Petition filed May 31, 2024
represented by: Juan Carlos Bigas Valedon, Esq.
In re Dan B Tolley
Bankr. E.D. Va. Case No. 24-11023
Chapter 11 Petition filed May 31, 2024
represented by: Jonathan Vivona, Esq.
In re South Jefferson Apartments, LLC
Bankr. S.D. Miss. Case No. 24-01282
Chapter 11 Petition filed June 2, 2024
See
https://www.pacermonitor.com/view/SOGACRY/South_Jefferson_Apartments_LLC__mssbke-24-01282__0001.0.pdf?mcid=tGE4TAMA
represented by: Robert Gambrell, Esq.
GAMBRELL & ASSOCIATES, PLLC
E-mail: rg@ms-bankruptcy.com
In re Ross Bryant
Bankr. W.D. Tex. Case No. 24-51034
Chapter 11 Petition filed June 2, 2024
represented by: James Wilkins, Esq.
In re William Edwin Taylor, Jr.
Bankr. N.D. Ala. Case No. 24-81036
Chapter 11 Petition filed June 3, 2024
represented by: Stuart Maples, Esq.
THOMPSON BURTON PLLC
E-mail: smaples@thompsonburton.com
In re Maine Consulting, LLC
Bankr. C.D. Cal. Case No. 24-14407
Chapter 11 Petition filed June 3, 2024
See
https://www.pacermonitor.com/view/PBDV6WQ/Maine_Consulting_LLC__cacbke-24-14407__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Pierre Sawaya
Bankr. C.D. Cal. Case No. 24-11422
Chapter 11 Petition filed June 3, 2024
In re Brothers Geiser Two, LLC
Bankr. N.D. Cal. Case No. 24-40832
Chapter 11 Petition filed June 3, 2024
See
https://www.pacermonitor.com/view/YIQEIRA/Brothers_Geiser_Two_LLC__canbke-24-40832__0001.0.pdf?mcid=tGE4TAMA
represented by: Marc Voisenat, Esq.
LAW OFFICE OF MARC VOISENAT
E-mail: voisenat@gmail.com
In re Charles-N-Angel's LLC
Bankr. M.D. Fla. Case No. 24-00809
Chapter 11 Petition filed June 3, 2024
See
https://www.pacermonitor.com/view/MIJGNRI/Charles-N-Angels_LLC__flmbke-24-00809__0001.0.pdf?mcid=tGE4TAMA
represented by: Daniel A. Velasquez, Esq.
LATHAM LUNA EDEN & BEAUDINE LLP
E-mail: dvelasquez@lathamluna.com
In re Anthony J Carroll, Sr and Christl D Carroll
Bankr. N.D. Ga. Case No. 24-55856
Chapter 11 Petition filed June 3, 2024
represented by: William Rountree, Esq.
ROUNTREE LEITMAN KLEIN & GEER, LLC
In re Torshaun Stamps
Bankr. N.D. Ill. Case No. 24-08204
Chapter 11 Petition filed June 3, 2024
represented by: William Jamison, Esq.
In re Dulin Family Dentistry, P.A.
Bankr. D. Kan. Case No. 24-40362
Chapter 11 Petition filed June 3, 2024
See
https://www.pacermonitor.com/view/LRRKGRA/Dulin_Family_Dentistry_PA__ksbke-24-40362__0001.0.pdf?mcid=tGE4TAMA
represented by: Colin Gotham, Esq.
EVANS & MULLINIX, P.A.
E-mail: cgotham@emlawkc.com
In re ICEAM, LLC
Bankr. E.D. La. Case No. 24-11032
Chapter 11 Petition filed June 3, 2024
See
https://www.pacermonitor.com/view/ZIELIFA/ICEAM_LLC__laebke-24-11032__0001.0.pdf?mcid=tGE4TAMA
represented by: Darryl T. Landwehr, Esq.
LANDWEHR LAW FIRM
E-mail: dtlandwehr@att.net
In re Arnaud Versluys
Bankr. E.D. La. Case No. 24-11031
Chapter 11 Petition filed June 3, 2024
represented by: Darryl Landwehr, Esq.
In re Joe Willie McMillian, Jr.
Bankr. N.D. Miss. Case No. 24-11587
Chapter 11 Petition filed June 3, 2024
In re GJ Mcintosh Street LLC
Bankr. E.D.N.Y. Case No. 24-42369
Chapter 11 Petition filed June 3, 2024
See
https://www.pacermonitor.com/view/DPZG6JI/GJ_Mcintosh_Street_LLC__nyebke-24-42369__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re 1G Gunther PL LLC
Bankr. E.D.N.Y. Case No. 24-72130
Chapter 11 Petition filed June 3, 2024
See
https://www.pacermonitor.com/view/EFOJAVY/1G_Gunther_PL_LLC__nyebke-24-72130__0001.0.pdf?mcid=tGE4TAMA
represented by: Richard Kistnen, Esq.
LAW OFFICE OF RICHARD KISTNEN
In re Erik Todd Brinkman
Bankr. E.D.N.C. Case No. 24-01847
Chapter 11 Petition filed June 3, 2024
represented by: HENDREN, REDWINE & MALONE, PLLC
In re Jeannot Realty, Inc.
Bankr. E.D. Pa. Case No. 24-11908
Chapter 11 Petition filed June 3, 2024
See
https://www.pacermonitor.com/view/FARSSTY/Jeannot_Realty_Inc__paebke-24-11908__0001.0.pdf?mcid=tGE4TAMA
represented by: Jonathan H. Stanwood, Esq.
In re Rebeca Isis Carrasquillo De Jesus
Bankr. D.P.R. Case No. 24-02364
Chapter 11 Petition filed June 3, 2024
In re Alejandro Contreras Velazquez and Nancy Velazquez
Bankr. E.D. Tex. Case No. 24-41317
Chapter 11 Petition filed June 3, 2024
represented by: Robert DeMarco, Esq.
In re 2910 New Haven St, Irving, TX LLC
Bankr. E.D. Tex. Case No. 24-41318
Chapter 11 Petition filed June 3, 2024
See
https://www.pacermonitor.com/view/KRGXV5I/2910_New_Haven_St_Irving_TX_LLC__txebke-24-41318__0001.0.pdf?mcid=tGE4TAMA
represented by: Robert T DeMarc, Esq.
DEMARCO MITCHELL, PLLC
E-mail: robert@demarcomitchell.com
In re HKLTN Investment LLC
Bankr. E.D. Tex. Case No. 24-41310
Chapter 11 Petition filed June 3, 2024
See
https://www.pacermonitor.com/view/XDO4R3A/HKLTN_Investment_LLC__txebke-24-41310__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re BLD Realty, LLC
Bankr. N.D. Tex. Case No. 24-31610
Chapter 11 Petition filed June 3, 2024
See
https://www.pacermonitor.com/view/RKNJL2A/BLD_Realty_LLC__txnbke-24-31610__0001.0.pdf?mcid=tGE4TAMA
represented by: Ikenna Emeruem, Esq.
EMERUEM LAW FIRM
E-mail: ikemeruem@ikemlaw.com
In re Arka Associates, LLC
Bankr. S.D. Tex. Case No. 24-20153
Chapter 11 Petition filed June 3, 2024
See
https://www.pacermonitor.com/view/TMWCKTA/Arka_Associates_LLC__txsbke-24-20153__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
*********
Monday's edition of the TCR delivers a list of indicative prices
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