/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/250123.mbx T R O U B L E D C O M P A N Y R E P O R T E R Thursday, January 23, 2025, Vol. 29, No. 22 Headlines 139-141 FRANKLIN: Voluntary Chapter 11 Case Summary 2127 FLATBUSH: Seeks to Hire Robert Nadel as Bankruptcy Counsel 471 AMSTERDAM AVE: Voluntary Chapter 11 Case Summary 491 BERGEN ST. CORP: Voluntary Chapter 11 Case Summary ACADEMY LTD: Moody's Affirms 'Ba2' CFR & Alters Outlook to Positive ACCURIDE CORP: Committee Taps McDermott Will & Emery as Counsel ADELAIDA CELLARS: Court Extends Use of Cash Collateral to Feb. 26 AKOUSTIS TECHNOLOGIES: Gets Final OK to Use Cash Collateral AL GCX FUND VIII: S&P Assigns 'BB' ICR, Outlook Stable AL GCX HOLDINGS: S&P Upgrades Issuer Credit Rating to 'BB' ALARBESH/FERNANDEZ LLC: Seeks Chapter 11 Bankruptcy in California ALL INCLUSIVE: Seeks to Hire McCardell Law Firm as Legal Counsel ALL SAFE: Gets Interim OK to Use Cash Collateral Until Feb. 8 ANGIE’S TRANSPORTATION: Court OKs Trailer Sale to SD Trucking APPLIED ENERGETICS: Completes $4.8MM Private Placement AQUABOUNTY TECHNOLOGIES: Gets Nasdaq Notice Over Low Stock Price ARS INTERMEDIATE: S&P Assigns 'B' Rating on First-Lien Term Loan AURA SYSTEMS: Needs More Time to File Form 10-Q AUTO BUFFY: Seeks to Hire Offit Kurman as Bankruptcy Counsel AZTEC FUND: Unsecured BANA Claim Will Get 20% in Joint Plan BEAUCHAMP ENTERPRISES: Gets Interim OK to Use SBA's Cash Collateral BENK GROUP: Gets Interim OK to Use Cash Collateral BIO-KEY INTL: Streeterville Capital Holds 9.1% Equity Stake BLUE RIBBON: S&P Upgrades ICR to 'CCC+', Outlook Negative BOOKS INC: Seeks Chapter 11 Bankruptcy Protection in California BRPS TITLE: Seeks Approval to Tap Tran Singh as Bankruptcy Counsel CABLE & WIRELESS: S&P Rates Subsidiary's $1.53BB Term Loan 'BB-' CANVAS PROS: Deland Property Sale to Amprop Ventures OK'd CAREMAX INC: Ombudsman Hires SAK Healthcare as Medical Advisor CAREMAX INC: Ombudsman Taps Ross Smith & Binford as Legal Counsel CAREPOINT HEALTH: Unsecureds Will Get 1% to 2% of Claims in Plan CBDMD INC: Fully Satisfies Senior Secured Notes; Now Debt-Free CIMG INC: Board Member Jian Liu Resigns CIMG INC: Maca Beverages Win 2024 China New Consumer Brand Award COMARK HOLDINGS: Store-Closing Sales Amid CCAA Proceedings CONFLUENCE TECHNOLOGIES: Moody's Downgrades CFR to Caa3 CONSOL ENERGY: S&P Upgrades ICR to 'BB-', Outlook Stable CORK CAPITAL: Seeks Subchapter V Bankruptcy Protection in Florida CORNERSTONE HOME: Seeks to Hire Melissa Youngman as Legal Counsel CPV SHORE: Moody's Assigns 'Ba3' Rating to New Senior Secured Loans CUCINA ANTICA: Seeks to Sell Business Assets to Highest Offer DIOCESE OF ROCKVILLE: Jones Day Seeks $52-Mil. for Chapter 11 Case DOVGAL EXPRESS: Seeks Cash Collateral Access EARTHSNAP INC: Claims to be Paid from Continued Operations ECUO FOODS: Seeks Chapter 11 Bankruptcy Protection in New York EL DORADO: To Sell Lots 4001-4030 in Auction ENVIROSCENT INC: Gets Final OK to Use Cash Collateral ENVIROSCENT INC: Seeks to Sell Business Assets in Auction ENVIROSCENT INC: Taps Cassel Salpeter & Co. as Investment Banker FEENEY ENTERPRISES: Commences Subchapter V Bankruptcy in Florida FIREPAK INC: Seeks to Tap Citrin Cooperman Advisors as Accountant FIRST MODE: Feb. 6, 2025 Claims Filing Deadline Set FLEET SERVICES: Unsecureds Will Get 5% of Claims over 60 Months FLUENT INC: Board Appoints James Geygan as Director FRANCHISE GROUP: Sells Portion of Chain to Former Execs for $1.12MM GLASS MANAGEMENT: Plan Exclusivity Period Extended to April 14 GRADE A HOME: Court Denies Bid to Use Cash Collateral GRESHAM WORLDWIDE: Court Extends Use of Cash Collateral to Feb. 28 GRITSTONE BIO: $1.7M Unsecured Claims to Recover 20% in Plan HERITAGE COLLEGIATE: Includes Churchill & Uptown Fund Claims Pay HOOVER DRILLING: Hires Allen Jones & Giles as Bankruptcy Counsel HYPERSCALE DATA: Declares Dividends for Preferred Shareholders I-ON DIGITAL: Increases Authorized Common Shares to 250 Million IGLESIA ESCUELA: Seeks Approval to Tap Jose O. Ayala as Accountant INDEPENDENCE CONTRACT: Latham Advised Business in Chapter 11 IQSTEL INC: Issues Stock Option for 15M Shares to ADI Funding JACK OHIO: S&P Rates New $250MM Sr. Secured Credit Facility 'B-' JASMINE R ELMORE: Seeks to Hire Bradford Law Offices as Counsel JINGBO TECHNOLOGY: Posts Net Loss of $726K in Third Quarter JMG VENTURES: Unsecured Creditors to Get Nothing in Plan JOURNEY HEALTH: Seeks to Hire Lodovico & Associates as Accountant LA NOTTE VENTURES: Seeks to Hire David R. Herzog as Legal Counsel LA NOTTE VENTURES: Seeks to Tap Joseph & Associates as Accountant LAREDO OIL: Incurs $816K Net Loss in Second Quarter LEE INVESTMENT: Taps Davis Reality and Auction as Auctioneer LONESTAR FIBERGLASS: Hires Fox Law Corporation as Legal Counsel MALIA REALTY: Court OKs Interim Use of Cash Collateral MASTER'S PLAN: Hires Allen Jones & Giles as Bankruptcy Counsel MATCH GROUP: S&P Alters Outlook to Stable, Affirms 'BB' ICR MCNICHOLS TRUCKING: Files Chapter 11 Bankruptcy Protection MEDICAL PROPERTIES: Gauges Investors' Interests on Bond Deal MIRAMAR TOWNHOMES: Hires O'ConnorWechsler as Litigation Counsel MODIVCARE INC: Moody's Cuts CFR to Caa1 & Alters Outlook to Neg. MYA POS: Seeks to Tap Ford McDonald & Borden as Bankruptcy Counsel NORTH LIBERTY: Gets Interim OK to Use Cash Collateral NORTHVOLT AB: Comm. Hires Advokatfirmaet Schjodt as Special Counsel NORTHVOLT AB: Committee Hires Akin Gump Strauss Hauer as Counsel NUEVA VISTA: Case Summary & Two Unsecured Creditors NUEVA VISTA: Seeks Chapter 11 Bankruptcy Protection in California NUTRACAP HOLDINGS: Files Emergency Bid to Use Cash Collateral ODYSSEY PREPARATORY: S&P Affirms 'BB-' Rating on 2017/2019 Bonds OFFICE PROPERTIES: Moody's Affirms 'Caa3' CFR, Outlook Negative OSTERIA DEL TEATRO: Gets Final OK to Use Cash Collateral OVATION PARENT: S&P Affirms 'B' Issuer CR, Outlook Stable PARKERVISION INC: Awards $450K Discretionary Bonuses to CEO and CFO PEPPER PALACE: Saratoga Marks $2.4MM Loan at 44% Off PH BEAUTY: Moody's Upgrades CFR to 'B3' & Alters Outlook to Stable PLANET HOLDCO 2: S&P Alters Outlook to Negative, Affirms 'B' ICR PLAZA MARIACHI: Seeks to Tap B. Riley Advisory as Financial Advisor PRIMAL MATERIALS: Hires McKinney Tax Professionals as Accountant PROFESSIONAL SECURITY: Gets Final OK to Use Cash Collateral PURDUE PHARMA: Remaining Sackler Family Members Join Draft Deal REALTRUCK GROUP: S&P Rates New $525MM First-Lien Term Loan 'B-' RED RIVER: Seeks to Extend Plan Exclusivity to May 19 RED RIVER: Slams Beasley's Motion to Dismiss Talc Team-Up Lawsuit RELIABLE HEALTHCARE: Claims to be Paid From Available Cash & Income RIVERA FAMILY: Gets OK to Hire Pittman & Pittman as Counsel RIVERS ENTERPRISE: S&P Assigns 'B+' ICR, Outlook Stable ROCKY MOUNTAIN: Commences Subchapter V Bankruptcy Proceeding ROOME ENTERPRISES: Gets Interim OK to Use Cash Collateral ROYAL HELIUM: Files for Creditor Protection Under BIA SAMPLE TILE: Seeks to Tap Michael Jay Berger as Bankruptcy Counsel SAMPLE TIRE: Seeks Bankruptcy Protection in California SANUWAVE HEALTH: Former EVP of Sales to Receive $104K Severance Pay SARVER REALTY: Hires Cooney Law Offices as Bankruptcy Counsel SCILEX HOLDING: Posts Net Loss of $4.39 Million in Third Quarter SIGNAL PARENT: Moody's Alters Outlook on 'B3' CFR to Negative SILVERGATE CAPITAL: Seeks to Extend Plan Exclusivity to April 15 SKYLOCK INDUSTRIES: Court OKs Continued Use of Cash Collateral SMS LAKEWOOD: Unsecureds Will Get 100% of Claims in Plan SORENTO ON YESLER: Hires Christopher L. Young as Estate Counsel SOUTHERN PINESTRAW: Gets Interim OK to Use Cash Collateral SPI ENERGY: Nasdaq to Delist Shares for Rule Violations SUPREME ELECTRICAL: Hires Redaptive Sustainability as Broker T.J.F. HOLDING: Voluntary Chapter 11 Case Summary TBB DEEP: Seeks Chapter 11 Bankruptcy Protection in Texas TECHPRECISION CORP: John Moore Resigns as Director TOWNSQUARE MEDIA: S&P Rates New Senior Secured Term Loan B 'B+' TREE TOWN: Seeks Cash Collateral Access TRUSTED HEATING: Court Extends Use of Cash Collateral Until Feb. 5 UNLIMITED SOURCE: Seeks to Tap Paul Reece Marr as Legal Counsel VAI CONSTRUCTION: Seeks to Hire Estelle Miller as Accountant VERTEX ENERGY: Exits Chapter 11 Bankruptcy as Privately Held Co. VROOM INC: Post-Bankruptcy Shares Delivered, Plans Relisting VRM VROOM INC: Professional Fee Claim Deadline Set for February 13 VROOM INC: Pursues National Securities Exchange Reinstatement WATER'S EDGE: Seeks to Hire Gray Gray & Gray as Accountant WELLPATH HOLDINGS: Seeks Executive Bonus Plan Court Approval WILSON CREEK: Seeks to Hire Ordinary Course Professionals WILSON CREEK: Seeks to Hire Raines Feldman Littrell as Counsel WOM SA: Plan Exclusivity Period Extended to March 21 YELLOW CORP: Settles Worker Layoff Disputes Ahead of Union Trial ZOLLEGE PBC: Saratoga Marks $1.4MM Loan at 24% Off [*] AIRA Awards 2024 CIRA and CDBV Certifications to Members [*] Chicago Mixed-Use Property Up for Auction Feb. 19 [*] Jeffrey Ramsay Joins Paul Hastings' Finance Practice in N.Y. [*] Otterbourg Appoints Six New Equity Members [*] Proskauer Reports Private Credit Defaults Rose in 4Q 2024 [*] Rion Vaughan Joins Rubin and Rudman as Bankruptcy Partner [^] Recent Small-Dollar & Individual Chapter 11 Filings ********* 139-141 FRANKLIN: Voluntary Chapter 11 Case Summary --------------------------------------------------- Debtor: 139-141 Franklin St Realty Corp. 475 Amsterdam Ave. New York, NY 10024 Business Description: 139-141 Franklin Street is a single asset real estate debtor, as defined in 11 U.S.C. Section 101(51B). Chapter 11 Petition Date: January 22, 2025 Court: United States Bankruptcy Court Southern District of New York Case No.: 25-10094 Debtor's Counsel: Tracy L. Klestadt, Esq. KLESTADT WINTERS JURELLER SOUTHARD & STEVENS, LLP 200 West 41st Street 17th Floor New York, NY 10036 Tel: (212) 972-3000 E-mail: tklestadt@klestadt.com Estimated Assets: $10 million to $50 million Estimated Liabilities: $10 million to $50 million The petition was signed by Amy Rosina Sofia as vice president. The Debtor failed to include a list of its 20 largest unsecured creditors in the petition. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/ZGV5O6A/139-141_Franklin_Street_Realty__nysbke-25-10094__0001.0.pdf?mcid=tGE4TAMA 2127 FLATBUSH: Seeks to Hire Robert Nadel as Bankruptcy Counsel --------------------------------------------------------------- 2127 Flatbush Avenue, Inc. seeks approval from the U.S. Bankruptcy Court for the Eastern District of New York to employ the Law Office of Robert Nadel to handle its Chapter 11 case. Robert Nadel, Esq., the primary attorney in this representation, will be paid $400 per hour, while other attorneys will be paid at $200 per hour. The firm received a retainer of $7,000 plus a filing fee of $1,738 from the Debtor. Mr. Nadel 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: Robert Nadel, Esq. Law Office of Robert Nadel 68 South Service Road, Suite 100 Melville, NY 11747 Telephone: (631) 742-3435 Email: Nadelaw@optonline.net About 2127 Flatbush Avenue 2127 Flatbush Avenue, Inc. filed its voluntary petition for Chapter 11 protection (Bankr. E.D.N.Y. Lead Case No. 24-44814) on November 18, 2024, listing up to $1 million in assets and up to $10 million in liabilities. Judge Elizabeth S. Strong oversees the case. The Law Office of Robert Nadel serves as the Debtor's counsel. 471 AMSTERDAM AVE: Voluntary Chapter 11 Case Summary ---------------------------------------------------- Debtor: 471 Amsterdam Ave Realty Corp. 475 Amsterdam Ave. New York, NY 10024 Business Description: 471 Amsterdam Ave is a single asset real estate, as defined in 11 U.S.C. Section 101(51B). Chapter 11 Petition Date: January 22, 2025 Court: United States Bankruptcy Court Southern District of New York Case No.: 25-10092 Debtor's Counsel: Tracy L. Klestadt, Esq. KLESTADT WINTERS JURELLER SOUTHARD & STEVENS, LLP 200 West 41st Street 17th Floor New York, NY 10036 Tel: (212) 972-3000 Email: tklestadt@klestadt.com Estimated Assets: $10 million to $50 million Estimated Liabilities: $10 million to $50 million The petition was signed by Amy Rosina Sofia a vice president. The Debtor failed to include in the petition a list of its 20 largest unsecured creditors. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/Z574E4Q/471_Amsterdam_Ave_Realty_Corp__nysbke-25-10092__0001.0.pdf?mcid=tGE4TAMA 491 BERGEN ST. CORP: Voluntary Chapter 11 Case Summary ------------------------------------------------------ Debtor: 491 Bergen St. Corporation 475 Amsterdam Ave. New York, NY 10024 Business Description: 491 Bergen St. is a single asset real estate debtor, as defined in 11 U.S.C. Section 101(51B). Chapter 11 Petition Date: January 22, 2025 Court: United States Bankruptcy Court Southern District of New York Case No.: 25-10091 Debtor's Counsel: Tracy L. Klestadt, Esq. KLESTADT WINTERS JURELLER SOUTHARD & STEVENS, LLP 200 West 41st Street 17th Floor New York, NY 10036 Tel: (212) 972-3000 Email: tklestadt@klestadt.com Estimated Assets: $10 million to $50 million Estimated Liabilities: $10 million to $50 million The petition was signed by Amy Rosina Sofia as vice president. The Debtor failed to include a list of its 20 largest unsecured creditors in the petition. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/ZUEHVZQ/491_Bergen_St_Corporation__nysbke-25-10091__0001.0.pdf?mcid=tGE4TAMA ACADEMY LTD: Moody's Affirms 'Ba2' CFR & Alters Outlook to Positive ------------------------------------------------------------------- Moody's Ratings changed Academy, Ltd.'s outlook to positive from stable. At the same time Moody's affirmed Academy's corporate family rating at Ba2, probability of default rating at Ba2-PD and the Ba2 ratings on the senior secured first lien term loan and senior secured notes. The speculative-grade liquidity rating ("SGL") remains unchanged at SGL-1. The change in outlook to positive reflects Academy's continued strong credit metrics given its reduced debt balances and healthy free cash flow. Since 2020, Academy has repaid nearly $1.0 billion of funded debt, including $100 million repaid in 2024. Moody's expect Academy to maintain balanced financial strategies that will support resilient credit metrics despite the pressures presented by a challenged consumer spending environment as they pull back on non-discretionary merchandise in the sporting goods category to focus on essentials, such as food. The positive outlook also reflects Moody's belief that Academy will return to generating positive comp store sales in 2025, will maintain very good liquidity and that shareholder returns will be measured. RATINGS RATIONALE Academy's Ba2 CFR reflects the company's scale and solid market position in the regions within which it operates. It also reflects Academy's actions to preserve profitability despite experiencing declining comparable store sales since 2022 as it focused on productivity improvements, inventory management and cost controls. Further, continued operational improvements in merchandising and omnichannel investment will improve operating performance over time. Moody's estimate that debt to EBITDA will approach 1.5x over the next 12-18 months from 1.9x for the LTM ended November 2, 2024 and EBIT to interest will approach 6.0x from 4.8x for the same time period. The company initiated a store expansion program in 2022, which will include the addition of 160-180 stores through 2029. The store expansion will be financed through free cash flow. Partially offsetting these strengths are the company's stubbornly negative same store sales, which Moody's expect to meaningfully improve in 2025 reflecting the success of new store openings and continued strategic initiatives that management has undertaken to improve the company's operating performance. Moody's also recognize the competitive nature of sporting goods retail including the increased focus of major apparel and footwear brands on direct-to-consumer distribution and the consumer shift to online shopping. Sporting goods demand can also fluctuate, in part because of demand cycles in the firearms and ammunition category, which Moody's estimate represents roughly 10% of Academy's sales. In addition, Academy continues to face a difficult consumer spending environment as consumers continue to face high inflation in key categories such as housing and insurance. Academy's SGL-1 reflects its very good liquidity over the next 12 months. The company has a largely available $1.0 billion ABL revolving credit facility expiring in March 2029. In addition, Moody's estimate that the company will generate roughly $150-$200 million of free cash flow over the next 12 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if the company generates consistently positive same store sales, revenue and operating income growth while improving geographic diversification, maintaining very good liquidity and balanced financial policies. Quantitatively, the ratings could be upgraded with expectations for Moody's-adjusted debt/EBITDA to be maintained below 1.5x and EBIT/interest expense sustained above 6.0x throughout economic cycles. The ratings could be downgraded if earnings or liquidity significantly deteriorate or the company experiences material execution missteps. Aggressive financial strategy actions could also result in a downgrade. Quantitatively, the ratings could be downgraded if Moody's-adjusted debt/EBITDA is maintained above 2.75x or EBIT/interest expense declines below 3.5x. Headquartered in Katy, Texas, Academy, Ltd. is a US sports, outdoor and lifestyle retailer with a broad assortment of hunting, fishing and camping equipment, along with footwear, apparel, and sports and leisure products. The company operates 298 stores under the Academy Sports + Outdoors banner, which are primarily located in Texas and the southeastern United States, and its website. It is a subsidiary of traded Academy Sports and Outdoors, Inc. (NASDAQ traded ASO). Academy generated approximately $6.1 billion of revenue for the twelve months ended November 2nd, 2024. The principal methodology used in these ratings was Retail and Apparel published in November 2023. ACCURIDE CORP: Committee Taps McDermott Will & Emery as Counsel --------------------------------------------------------------- The official committee of unsecured creditors appointed in the Chapter 11 cases of Accuride Corporation and its affiliates seeks approval from the U.S. Bankruptcy Court for the District of Delaware to employ McDermott Will & Emery LLP as its counsel. The firm will render these services: (a) advise the committee regarding its rights, powers, and duties in the Chapter 11 cases; (b) assist and advise the committee in its consultations and negotations with the Debtors and other parties in interest in connection with the administration of the Chapter 11 cases; (c) assist the committee in its investigation of the acts, conducts, assets, liabilities, and financial condition of the Debtors and of the operation of their businesses; (d) assist the committee in its analysis of, and negotations with the Debtors and other parties concerning, matters related to, among other things, the terms of one or more plans of reorganization or liquidation for the Debtors and accompanying disclosure statements and related plan documents; (e) assist and advise the committee on its communications with the Debtors' retirees as a group regarding significant matters in the Chapter 11 cases; (f) represent the committee at all hearings and other proceedings before the court; (g) prepare, on behalf of the committee, any pleadings, including, without limitation, motions, memoranda, complaints, objections, or comments in connection with any matter related to the Debtors or the Chapter 11 cases; and (h) perform such other legal services as may be required or are otherwise deemed to be in the interests of the committee in accordance with its rights, powers, and duties. The firm's counsel and staff will be paid at these hourly rates: Kristin Going, Partner $1,860 David Hurst, Partner $1,860 Darren Azman, Partner $1,760 Deanna Boll, Counsel $1,535 Natalie Rowles, Associate $1,445 Nolley Rainey, Paralegal $550 In addition, the firm will seek reimbursement for expenses incurred. Ms. Going also provided the following in response to the request for additional information set forth in Section D of the Revised U.S. Trustee Guidelines: Question: Did you agree to any variations from, or alternatives to, your standard or customary billing arrangements for this engagement? Answer: The firm has not agreed to a variation of its standard or customary billing arrangements for this engagement, except as disclosed herein. Question: Do any of the professionals included in this engagement vary their rate based on the geographic location of the bankruptcy case? Answer: None of the firm's professionals included in this engagement have varied their rates based on the geographic location of the Chapter 11 cases. 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. Answer: The firm did not represent the committee before the petition date. Question: Has your client approved your prospective budget and staffing plan, and, if so for what budget period? Answer: The firm expects to develop a budget and staffing plan to comply with the U.S. Trustee's requests for information and additional disclosures, and any orders of the court. Recognizing that unforeseeable fees and expenses may arise in large Chapter 11 cases, the firm may need to amend the budget as necessary to reflect changed circumstances or unanticipated developments. Ms. Going 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: Kristin K. Going, Esq. One Vanderbilt Avenue New York, NY 10017 Telephone: (212) 547-5400 Email: kgoing@mwe.com About Accuride Corp. Accuride Corporation and its affiliates are a global leader in steel and aluminum wheels and wheel-end components and assemblies, supplying innovative products to over 1,000 customers in the commercial vehicles, passenger cars, agriculture, construction and industrial equipment markets. Headquartered in Livonia, Michigan, the Debtors are part of a global enterprise that employs approximately 3,600 individuals at facilities in the United States, Canada, Mexico, Germany, France, Turkey, Russia, and China. Accuride's U.S. entities first filed for Chapter 11 protection in October 2009, also in Delaware, to restructure in excess of $675 million in debt. The Court confirmed the Company's Plan of Reorganization in February 2010. On Oct. 9, 2024, Accuride Corp. and its U.S. entities filed voluntary petitions for protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-12289). Accuride reported $500 million to $1 billion in assets and liabilities as of the bankruptcy filing. In the new Chapter 11 cases, the Debtors tapped Kirkland & Ellis LLP as bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP, as local bankruptcy counsel; Quinn Emanuel Urquhart & Sullivan, LLP as special counsel; Perella Weinberg Partners LP as investment banker; and Deloitte & Touche LLP as independent auditor. Alvarez & Marsal North America, LLC is the CRO provider and Omni Agent Solutions is the claims agent. On Dec. 10, 2024, the Office of the U.S. Trustee appointed an official committee of unsecured creditors in these Chapter 11 cases. The committee tapped McDermott Will & Emery LLP as counsel. ADELAIDA CELLARS: Court Extends Use of Cash Collateral to Feb. 26 ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California, Northern Division extended Adelaida Cellars, Inc.'s authority to use cash collateral from Jan. 15 to Feb. 26. The court order authorized the company to use cash collateral on an interim basis in accordance with its budget, with expenditures during the interim period not to exceed 115% of the aggregate expenditures set forth in the budget. To the extent that the Kedrin E. Van Steenwyk Issue Trust or Matthew Van Steenwyk holds a perfected, unavoidable and valid lien on the company's cash as of the petition date and such cash is actually used by the company post-petition, then they will receive a replacement lien on the company's post-petition cash. A final hearing is scheduled for Feb. 26. About Adelaida Cellars Inc. Adelaida Cellars, Inc. is a family-owned and operated winery in Paso Robles, Calif. Adelaida Cellars sought Chapter 11 petition (Bankr. C.D. Calif. Case No. 24-11409) on December 13, 2024, with $10 million to $50 million in both assets and liabilities. Nicholas D. Rubin, chief restructuring officer of Adelaida Cellars, signed the petition. Judge Ronald A Clifford, III oversees the case. The Debtor is represented by: Hamid R. Rafatjoo, Esq. Raines Feldman Littrell LLP Tel: 310-440-4100 Email: hrafatjoo@raineslaw.com AKOUSTIS TECHNOLOGIES: Gets Final OK to Use Cash Collateral ----------------------------------------------------------- Akoustis Technologies, Inc. received final approval from the U.S. Bankruptcy Court for the District of Delaware to use cash collateral. The final order authorized the company to use the cash collateral of Joseph Collins, a pre-bankruptcy secured creditor, to pay its expenses for the period from Dec. 16, 2024 to Jan. 31, 2025. Mr. Collins was granted a replacement lien to the same extent and with the same priority and validity as his pre-bankruptcy lien. Akoustis' authority to use cash collateral terminates upon the occurrence of a termination event including the occurrence of the expiration date (Jan. 31); the dismissal or conversion of the company's Chapter 11 case to one under Chapter 7; the appointment or election of a trustee or examiner; or the occurrence of the effective date or consummation date of a plan of reorganization for the company. About Akoustis Technologies Akoustis Technologies, Inc. -- http://www.akoustis.com/-- is a high-tech BAW RF filter solutions company that is pioneering next-generation materials science and MEMS wafer manufacturing to address the market requirements for improved RF filters -- targeting higher bandwidth, higher operating frequencies and higher output power compared to legacy polycrystalline BAW technology. The Company utilizes its proprietary and patented XBAW(R) manufacturing process to produce bulk acoustic wave RF filters for mobile and other wireless markets, which facilitate signal acquisition and accelerate band performance between the antenna and digital back end. Superior performance is driven by the significant advances of poly-crystal, single-crystal, and other high purity piezoelectric materials and the resonator-filter process technology which enables optimal trade-offs between critical power, frequency and bandwidth performance specifications. Akoustis owns and operates a 125,000 sq. ft. ISO-9001:2015 registered commercial wafer-manufacturing facility located in Canandaigua, NY, which includes a class 100 / class 1000 cleanroom facility -- tooled for 150-mm diameter wafers -- for the design, development, fabrication and packaging of RF filters, MEMS and other semiconductor devices. Akoustis is headquartered in the Piedmont technology corridor near Charlotte, North Carolina. Akoustis and three affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 24-12796) on Dec. 16, 2024. Akoustis disclosed $53,371,000 in total assets against $122,586,000 in total debt as of Sept. 30, 2024. The Hon. Laurie Selber Silverstein is the case judge. The Debtors tapped K&L Gates, LLP as bankruptcy counsel; Landis Rath & Cobb, LLP as local counsel. Raymond James & Associates, Inc. as investment banker; Getzler Henrich & Associates, LLC as financial advisor; and C Street Advisory Group as strategic communications advisor. Stretto is the claims agent and has launched the page https://cases.stretto.com/Akoustis. The U.S. Trustee for Region 3 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. AL GCX FUND VIII: S&P Assigns 'BB' ICR, Outlook Stable ------------------------------------------------------ S&P Global Ratings assigned its 'BB' issuer credit rating to AL GCX Fund VIII Holdings LLC (AL GCX VIII), and its 'BB' issue-level rating with a '3' recovery rating to the senior secured term loan. The stable outlook reflects S&P's expectation that AL GCX VIII will receive stable cash flow from GCX, supported by the asset's 100% take-or-pay contracts. It forecasts AL GCX VIII's leverage will be about 6.2x in 2025, 5.0x in 2026, and about 4.4x in 2027 and onward. AL GCX VIII, a newly established entity managed by ArcLight Capital Partners LLC (ArcLight), is acquiring a 25% interest in Gulf Coast Express Pipeline LLC (GCX) from Phillips 66 for $865 million. This acquisition will increase ArcLight's total ownership of GCX to 66%. The remaining 34% continues to be owned by Kinder Morgan Inc. (Kinder Morgan), the operator of GCX. ArcLight's existing 41% ownership interest is held by another entity, AL GCX Holdings LLC (AL GCX Holdings). To finance the acquisition, AL GCX VIII is issuing a $425 million senior secured term loan B due 2032. S&P said, "Although AL GCX VIII owns a 25% equity interest in GCX and relies solely on GCX's distribution to service its debt obligation, we believe ArcLight's majority ownership gives it control over GCX's distribution to equity owners. AL GCX VIII is a newly established entity with no assets other than its 25% equity interest in GCX. GCX distributes all distributable cash flow monthly to the equity owners in proportion to their respective percentage interests. AL GCX VIII relies on GCX's distribution to service its debt obligation. However, ArcLight, through its two entities, AL GCX VIII and AL GCX Holdings, owns a 66% equity interest in GCX. We expect ArcLight's two entities will act consistently in making key decisions on GCX's governance, such as distribution to equity owners. Therefore, we consider ArcLight as having control over GCX's distribution to equity owners and do not consider AL GCX VIII as a noncontrolling equity investor. "Our satisfactory business risk profile assessment of AL GCX VIII is supported by the underlying asset's contract profile, partially offset by its small scale of operation. GCX is a 450-mile Permian natural gas pipeline with 2.02 billion cubic feet per day (bcf/d) of transport capacity, providing about 9% of total Permian and about 18% of Permian to U.S. Gulf Coast natural gas takeaway capacity. The pipeline connects Permian production to Agua Dulce in Texas, providing connectivity across Gulf Coast markets. GCX generates 100% of cash flows through take-or-pay contracts through 2029 with more than 90% of cash flow from investment-grade shippers. GCX is a new-build pipeline that went into service in 2019; therefore, we expect maintenance capital expenditure will be minimal over the coming years, which further strengthens cash flow stability. In addition, GCX reached final investment decision on an expansion project that will add an incremental 0.57 bcf/d of capacity to the pipeline. GCX's total capacity will increase to 2.59 bcf/d through increased compression on the existing pipeline. The additional capacity is fully contracted under 10-year take-or-pay terms and anchored by investment-grade counterparties. We expect the expansion project will be in-service in second-quarter 2026. Our assessment of the business risk profile considers the strong fundamentals of the Permian market, the pipeline's contract profile, and minimal maintenance capital required, partially offset by the smaller size of the pipeline compared with that of peers. "We expect AL GCX VIII will deleverage over the next few years, spurred by the completion of its expansion project that is expected to contribute incremental EBITDA. AL GCX VIII's EBITDA is the proportional cash distribution from GCX. We expect the acquisition will close in late January so AL GCX VIII's 2025 EBITDA represents 11 months of GCX's proportional cash distribution. We expect EBITDA will increase in 2026 and 2027, driven by the completion of the expansion project that is fully contracted to be in-service in second-quarter 2026. The increase in EBITDA is slightly offset by incremental debt drawn in 2025 and 2026 to fund GCX's expansion project. Under our base-case scenario, we forecast leverage will be about 6.2x in 2025, 5.0x in 2026, and about 4.4x in 2027 and onward. "We capped our financial risk assessment at aggressive because of the ownership of ArcLight, which we consider as a financial sponsor. We assessed the company's financial policy modifier to be FS-5, which caps the AL GCX VIII's financial risk profile at aggressive. We expect the company will deleverage over the forecast period, resulting in it sustaining an S&P Global Ratings-adjusted leverage ratio of about 4.4x in 2027 and beyond. Our assessment also reflects our view that ArcLight's management is not contemplating any material debt-financed transactions at this entity so we do not expect AL GCX VIII would breach the leverage ratio above 6.0x. "The stable outlook reflects our expectation that AL GCX VIII will receive stable and steady cash flows from the highly contracted GCX pipeline. We expect GCX's expansion project, which is 100% contracted, will be in-service in second-quarter 2026 and will contribute to the company's incremental EBITDA. We forecast AL GCX VIII's leverage will be about 6.2x in 2025, 5.0x in 2026, and about 4.4x in 2027 and onward. "We could take a negative rating action if we expect AL GCX VIII to maintain debt to EBITDA above 6.0x, which could happen due to a decrease in cash flows from GCX or debt-financed transactions at the company. "Although unlikely in the next 12 months, we could take a positive rating action on AL GCX VIII if its leverage is sustained below 3.5x and GCX maintains its strong contract profile." AL GCX HOLDINGS: S&P Upgrades Issuer Credit Rating to 'BB' ---------------------------------------------------------- S&P Global Ratings raised its issuer credit rating on AL GCX Holdings LLC to 'BB' from 'B+' and the issue-level rating on the senior secured debt to 'BB' from 'B+'. The recovery rating of '3' on the debt is unchanged. The stable outlook reflects S&P's expectation that AL GCX Holdings will continue to receive stable cash flows from GCX, supported by the asset's 100% take-or-pay contracts. ArcLight Capital Partners LLC (ArcLight), through a newly established entity, AL GCX Fund VIII Holdings LLC (AL GCX VIII), is acquiring an additional 25% interest in Gulf Coast Express Pipeline LLC (GCX) from Phillips 66. This acquisition will increase ArcLight's total ownership of GCX to 66% through the existing AL GCX Holdings LLC (AL GCX Holdings) and the newly established AL GCX VIII. The remaining 34% continues to be owned by Kinder Morgan Inc. (Kinder Morgan), the operator of GCX. S&P said, "Although AL GCX Holdings owns 41% equity interest in GCX and relies solely on GCX's distribution to service its debt obligation, we believe ArcLight's majority ownership after the acquisition gives it control over GCX's distribution to equity owners. ArcLight, through its two entities, AL GCX Holdings and AL GCX VIII, owns a 66% equity interest in GCX. We expect ArcLight's two entities will act consistently in making key decisions on GCX's governance, such as distribution to equity owners. Therefore, we consider ArcLight as having control over GCX's distribution to equity owners and no longer consider AL GCX Holdings as a noncontrolling equity investor. Because of this, we use our corporate criteria to rate AL GCX Holdings. We view the majority ownership of ArcLight as credit positive for AL GCX Holdings. "Our satisfactory business risk profile assessment of AL GCX Holdings is supported by the underlying asset's contract profile, partially offset by its smaller scale of operation. GCX is a 450-mile Permian natural gas pipeline with 2.02 billion cubic feet per day (bcf/d) of transport capacity, providing about 9% of total Permian and about 18% of Permian to U.S. Gulf Coast natural gas takeaway capacity. The pipeline connects Permian production to Agua Dulce in Texas, providing connectivity across Gulf Coast markets. GCX generates 100% of cash flows through take-or-pay contracts through 2029 with more than 90% of cash flow through investment-grade shippers. GCX is a new-build pipeline that was in service in 2019; therefore, we expect maintenance capital expenditure will be minimal over the coming years, which further strengthens cash flow stability. In addition, GCX reached final investment decision on an expansion project that will add an incremental 0.57 bcf/d of capacity to the pipeline. GCX's total capacity will increase to 2.59 bcf/d through increased compression on the existing pipeline. The additional capacity is fully contracted under 10-year take-or-pay terms and anchored by investment-grade counterparties. We expect the expansion project will be in-service in second-quarter 2026. Our assessment of the business risk profile considers the strong fundamentals of the Permian market, the project's contract profile, and minimal maintenance capital required, partially offset by the smaller scale of the pipeline compared with that of peers. "We cap our financial risk assessment at aggressive because of the ownership of ArcLight, which we consider a financial sponsor. We have assessed the company's financial policy modifier at FS-5, which caps AL GCX Holdings' financial risk profile at aggressive. However, we expect the company will deleverage over the forecast period given higher throughput volumes from the expansion project, resulting in it sustaining an S&P Global Ratings-adjusted leverage ratio at about 3.5x-4.5x in 2026 and beyond. It also reflects our view that ArcLight's management is not contemplating any material debt-financed transactions at this entity so we do not expect AL GCX Holdings would breach the leverage ratio above 6.0x. "The stable outlook reflects our expectation that AL GCX Holdings will receive stable and steady cash flow from the highly contracted GCX pipeline. We expect it will use the distributions from GCX to reduce its debt balance via excess cash flow sweeps and forecast debt to EBITDA will be about 5.4x in 2025 and about 4.3x in 2026. "We could take a negative rating action if we expect AL GCX Holdings will maintain debt to EBITDA above 6.0x, which could happen due to decreased cash flows from GCX or other debt-financed transactions. "Although we consider it unlikely in the next 12 months, we could take a positive rating action on AL GCX Holdings if its leverage is sustained below 3.5x and GCX maintains its strong contract profile." ALARBESH/FERNANDEZ LLC: Seeks Chapter 11 Bankruptcy in California ----------------------------------------------------------------- On January 8, 2025, Alarbesh/Fernandez LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of California. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Alarbesh/Fernandez LLC Alarbesh/Fernandez LLC is a limited liability company. Alarbesh/Fernandez LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 25-40025 ) on January 8, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Charles Novack handles the case. ALL INCLUSIVE: Seeks to Hire McCardell Law Firm as Legal Counsel ---------------------------------------------------------------- All Inclusive 4DL, LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of Texas to employ McCardell Law Firm, PLLC as counsel. The firm will provide these services: (a) assist the Debtor with the resolution of all contested claims; (b) assist the Debtor with the proposing, prosecuting and consummating the plan of reorganization; (c) advise the Debtor with regard to any litigation matters that exist or might arise prior to confirmation of the plan of reorganization; (d) prepare all appropriate pleadings to be filed in this case; and (e) perform any other legal services that may be appropriate in connection with this reorganization case. The hourly rates of the firm's counsel and staff are as follows: Aaron McCardell, Sr., Attorney $350 Associate Attorneys $250 - $300 Paralegal $75 - $105 Mr. McCardell 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: Aaron W. McCardell Sr., Esq. McCardell Law Firm, PLLC 440 Louisiana Street, Suite 1575 Houston, TX 77002 Telephone: (713) 236-8736 Facsimile: (713) 236-8990 Email: amccardell@mccardelllaw.com About All Inclusive 4DL All Inclusive 4DL, LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-36024) on December 24, 2024, with $50,000 to $100,000 in assets and $100,000 to $500,000 in liabilities. Judge Eduardo V. Rodriguez handles the case. Aaron W. McCardell Sr., Esq., at McCardell Law Firm, PLLC represents the Debtor as counsel. ALL SAFE: Gets Interim OK to Use Cash Collateral Until Feb. 8 ------------------------------------------------------------- All Safe Fire Sprinkler Systems, Inc. received interim approval from the U.S. Bankruptcy Court for the Southern District of New York to use the cash collateral of its secured creditors until Feb. 8. The interim order signed by Judge Sean Lane authorized the company to use the cash collateral of the New York State Department of Taxation and Finance and the U.S. Department of Treasury, Internal Revenue Service to pay the expenses set forth in its budget. The budget shows total projected expenses of $51,895 per week. Both secured creditors will be provided with adequate protection in the form of a replacement lien on the cash collateral. The final hearing is scheduled for Feb. 4. About All Safe Fire Sprinkler Systems All Safe Fire Sprinkler Systems Inc. is based in Elmsford, N.Y., and operates as a fire sprinkler systems installation and maintenance provider. All Safe Fire Sprinkler Systems sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-22004) on January 3, 2025, with $500,000 to $1 million in both assets and liabilities. Jolene Wee of JW Infinity Consulting, LLC serves as Subchapter V trustee. Judge Sean H. Lane handles the case. The Debtor is represented by: Dawn Kirby, Esq. Kirby Aisner & Curley, LLP Tel: 914-401-9500 Email: dkirby@kacllp.com ANGIE’S TRANSPORTATION: Court OKs Trailer Sale to SD Trucking --------------------------------------------------------------- Angie's Transportation, LLC, and its affiliate received the green light from the U.S. Bankruptcy Court for the Eastern District of Missouri, Eastern Division, to sell trailers, free and clear of all liens, claims, and interests. The trailers for sale include: -- 2020 Utility Refrigerated Van Trailer 1UYVS2534M6226013 -- 2020 Utility Refrigerated Van Trailer 1UYVS2530M6226011 -- 2020 Utility Refrigerated Van Trailer 1UYVS2532M6226009 -- 2020 Utility Refrigerated Van Trailer 1UYVS2532N6226012 -- 2020 Utility Refrigerated Van Trailer 1UYVS2539M6226010 The lessor of the Trailers is Contract Trailers, LLC. The Debtors are permitted, but not required, to sell 3 trailers to SD Trucking, LLC for $120,000.00, free and clear of all liens, claims, and interests and to retain 2 trailers. The Debtors are granted to remit the Purchase Price to Contract Trailers in exchange for its release of its interest in the Retained Trailers. About Angie's Transportation, LLC Angie's Transportation LLC is a trucking company in St. Louis, Missouri. Angie's Transportation LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Miss. Case No. 24-44594) on December 16, 2024. In the petition filed by Angelina Twardawa, as manager, the Debtor reports estimated assets between $1 million and $10 million and estimated liabilities between $500,000 and $1 million. Honorable Bankruptcy Judge Bonnie L. Clair handles the case. The Debtor is represented by Andrew Magdy, Esq., at SCHMIDT BASCH, LLC. APPLIED ENERGETICS: Completes $4.8MM Private Placement ------------------------------------------------------ Applied Energetics, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that on December 14, 2025, the Company completed the placement of 6,405,666 shares of its common stock, par value, $0.001 per share, some of which were underlying pre-funded common stock purchase warrants, in a private sale to individual purchasers at a price of $0.75 per share (or $0.749 per underlying share for pre-funded warrants), for aggregate proceeds in the approximate amount of $4,804,249. The Company intends to use the aggregate proceeds for product development, investment in one or more strategic partnerships, and general corporate purposes. The pre-funded warrants are exercisable immediately at a price of $0.001 per share but may not be executed in any amount which would cause the holder thereof to beneficially own 5% or more of the company's common stock. The Company has agreed to use its best efforts to include the shares for registration with the Securities and Exchange Commission in any subsequent registration statement it files. All of the purchasers are accredited, sophisticated investors, and the issuance of the shares was not in connection with any public offering in accordance with Section 4(a)(2) of the Securities Act of 1933. About Applied Energetics Headquartered in Tucson, Arizona, Applied Energetics, Inc. -- http://www.appliedenergetics.com-- specializes in the development and manufacture of advanced high-performance lasers and optical systems, and integrated guided energy systems, for prospective defense, national security, industrial, biomedical, and scientific customers worldwide. Las Vegas, NV-based RBSM LLP, the Company's auditor since 2016, issued a "going concern" qualification in its report dated March 26, 2024, citing that the Company has suffered recurring losses from operations and will require additional capital to fund its current operating plan, that raises substantial doubt about the Company's ability to continue as a going concern. AQUABOUNTY TECHNOLOGIES: Gets Nasdaq Notice Over Low Stock Price ---------------------------------------------------------------- AquaBounty Technologies, Inc., reported in a Form 8-K filed with the Securities and Exchange Commission that on Jan. 15, 2025, it received a letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC notifying the Company that, for the last 32 consecutive business days, the closing bid price for its common stock, par value $0.001 per share, had closed below the $1.00 per share minimum bid price requirement for continued listing on the Nasdaq Capital Market pursuant to Nasdaq Listing Rule 5550(a)(2). The Notice has no immediate effect on the Company's listing on the Nasdaq Capital Market or on the trading of the Common Stock, which continues to trade under the symbol "AQB". In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company has a compliance period of 180 calendar days, or until July 15, 2025, to regain compliance with the Minimum Bid Price Requirement. To regain compliance, the closing bid price of the Company's Common Stock must be at least $1.00 per share for a minimum of ten consecutive business days as required under Nasdaq Listing Rule 5810(c)(3)(A) during the compliance period. If the Company does not regain compliance by July 15, 2025, the Company may be eligible for an additional 180-calendar day compliance period. To qualify, the Company will be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards on the Nasdaq Capital Market (except the bid price requirement). In addition, the Company would be required to provide written notice of its intention to cure the minimum bid price deficiency during this second 180-day compliance period by effecting a reverse stock split, if necessary. If the Company is not granted an additional 180-day compliance period, then Nasdaq would provide written notification that the Company's securities will be subject to delisting. At that time, the Company would be able to appeal the determination to delist its securities to a Nasdaq hearings panel. The Company intends to monitor the closing bid price of the Common Stock and may, if appropriate, evaluate various courses of action to regain compliance with the Minimum Bid Price Requirement. There can be no assurance that the Company will regain compliance with the Minimum Bid Price Requirement during the 180-day compliance period, secure a second 180-day period to regain compliance, if necessary, or otherwise maintain compliance with the other listing requirements. About AquaBounty AquaBounty Technologies, Inc. -- www.aquabounty.com -- specializes in land-based aquaculture, focusing on the farming of Atlantic salmon using advanced breeding, genetics, and sustainable farming practices. The company utilizes recirculating aquaculture systems (RAS) to prevent disease, protect wild fish populations, and minimize environmental impact. AquaBounty aims to address food insecurity and climate change by producing antibiotic-free, nutritious salmon close to key consumption markets. Baltimore, Maryland-based Deloitte & Touche LLP, the Company's auditor since 2021, issued a "going concern" qualification in its report dated April 1, 2024, citing that the Company has incurred cumulative operating losses and negative cash flows from operations that raise substantial doubt about its ability to continue as a going concern. ARS INTERMEDIATE: S&P Assigns 'B' Rating on First-Lien Term Loan ---------------------------------------------------------------- S&P Global Ratings assigned its 'B' issue-level rating and '3' recovery rating to ARS Intermediate Holdings LLC (B/Stable/--) subsidiary's proposed $135 million revolving credit facility due in 2030 and $585 million first-lien term loan due in 2032. The '3' recovery rating indicates its expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a default. S&P said, "We revised our recovery analysis and reassessed our capital expenditure (capex) assumption, resulting in an estimated gross recovery value of approximately $404 million. This is an approximate $40 million increase to our previous gross recovery value of $362 million, representing the upsized commitment of its new revolving credit facility. "ARS intends to use the proceeds to refinance its debt. The proposed transaction will improve the company's maturity profile and not materially increase outstanding debt. We will withdraw the ratings on ARS's existing senior secured debt once the transaction closes. Our ratings on ARS reflect our expectation that demand for its services remain stable, leading to 1%-2% revenue growth over the next 12 months. It also incorporates our view that its financial policies will keep leverage over 5x. ARS generates consistent cash flow because a significant portion of its customer base subscribes to year-round home service plans, which provides recurring income and enhanced customer retention. Additionally, the company's nondiscretionary and recurring service-based business model typically doesn't require deep capex." ISSUE RATINGS--RECOVERY ANALYSIS Key analytical factors ARS's proposed capital structure consists of: -- $135 million revolving credit facility due in 2030 (rated); and -- $585 million first-lien term loan due in 2032 (rated). S&P said, "Our simulated default scenario considers a default in 2028 stemming from an unexpected loss of one of its key licensing contracts that pushes EBITDA and cash flow significantly lower, constraining liquidity. We value ARS on a going-concern basis using a 5.5x multiple of our projected emergence EBITDA. The multiple is in line with those used for U.S.-based branded nondurable issuers." American Residential Services LLC is the borrower of the company's debt. The first-lien credit facilities have first-priority liens and security interests on substantially all of the assets of the borrower and guarantors and the capital stock of domestic subsidiaries, plus 65% of the issued and outstanding capital stock of each foreign holding company and subsidiary. The second-lien term loan has a second-priority lien on all assets of the borrower and guarantors, including the capital stock of the borrower and its material restricted subsidiaries and material real property, subject to customary exceptions. Simulated default assumptions -- Simulated year of default: 2028 -- Debt service assumptions: $56.6 million (assumed default year interest plus amortization) -- Capex assumption: $13.4 million -- Cyclicality adjustment: 5% ($3.5 million) -- Operational adjustment: 0% -- Emergence EBITDA: $73.5 million -- EBITDA multiple: 5.5x -- Gross enterprise value (EV): $404.1 million Simplified waterfall -- Net EV (after 5% administrative costs): $383.9 million -- Valuation split (obligors/nonobligors): 100%/0% -- Senior secured first-lien claims: $701.7 million -- Collateral value available to first-lien claims: $383.9 million --Recovery expectations: 50%-70% (rounded estimate: 50%) All debt amounts include six months of prepetition interest. AURA SYSTEMS: Needs More Time to File Form 10-Q ----------------------------------------------- Aura Systems Inc. disclosed a Form 12b-25 with the U.S. Securities and Exchange Commission that it will be unable to file its Quarterly Report on Form 10-Q for the three months ended November 30, 2024 by the prescribed due date because the Company requires additional time to finalize its financial statements. The delay is primarily due to unforeseen challenges encountered during the year-end closing process, including complications in the integration of recently acquired business units and the reconciliation of certain accounting records. As a result, the Company needs additional time to ensure the accuracy and completeness of its financial reporting. The Company currently expects to file the Form 10-Q within the five-day extension period provided under Rule 12b-25 of the Securities Exchange Act of 1934, as amended. About Aura Systems Aura Systems Inc. is a Delaware corporation founded in 1987. The Company innovated and commercialized the technology for Axial Flux Induction electric motors and generators. The Company's power generation solution based on axial flux induction is known as the AuraGen for commercial and industrial applications and the VIPER for military applications. Los Angeles, California-based Weinberg & Company, P.A., the Company's auditor since 2022, issued a "going concern" qualification in its report dated June 4, 2024, citing that during the year ended Feb. 29, 2024, the Company incurred a net loss of $4.2 million, used cash in operations of $3 million, and at Feb. 29, 2024, had a stockholders' deficit of $21.5 million. In addition, at Feb. 29, 2024, notes payable and related accrued interest with an aggregate balance of $6.7 million have reached maturity and are past due. These matters raise substantial doubt about the Company's ability to continue as a going concern. As of Aug. 31, 2024, Aura Systems had $1.50 million in total assets, $41.27 million in total liabilities, and a total shareholders' deficit of $39.77 million. AUTO BUFFY: Seeks to Hire Offit Kurman as Bankruptcy Counsel ------------------------------------------------------------ Auto Buffy, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Maryland to employ Offit Kurman, PA as bankruptcy counsel. The firm will render these services: (a) provide the Debtor with legal advice with respect to its powers and duties; (b) prepare on behalf of the Debtor all necessary legal papers; (c) assist in analyses and representation with respect to lawsuits to which the Debtor is or may be a party; (d) negotiate, prepare, file and seek confirmation of a plan of reorganization; (e) represent the Debtor at all hearings, meetings of creditors and other proceedings; and (f) perform all other legal services for the Debtor which may be necessary to serve its best interests and its bankruptcy estate in this proceeding. The firm's hourly rates are as follows: Stephen A. Metz, Esq. $600 Attorneys $275 - $840 In addition, the firm will seek reimbursement for expenses incurred. The firm received the following retainer payments of $10,000 on October 24, 2024 and $21,738 on January 3, 2025. Offit Kurman billed and received fees in the amount of $10,939 for time billed and received the $1,738 filing fee, for a total of $12,677. Stephen Metz, a principal at Offit Kurman, 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: Stephen A. Metz, Esq. Offit Kurman, PA 7501 Wisonsin Avenue, Suite 1000W Bethesda, MA 20814 Telephone: (240) 507-1723 Facsimile: (240) 507-1735 Email: smetz@offitkurman.com About Auto Buffy Auto Buffy Inc. f/k/a Air Springs Direct, Inc. is an auto parts retailer specializing in brake rotors, headlights, quick struts, CV axles, mirrors, wipers, motor oil, brake pads, wheel hubs, coil springs, motor mounts, ignition coils, and tail lights. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Md. Case No. 25-10208) on January 10, 2025, with $0 to $50,000 in assets and $1 million to $10 million in liabilities. Chetan Singh Chadha, president, signed the petition. Judge Michelle M. Harner presides over the case. Stephen A. Metz, Esq. at Offit Kurman, PA represents the Debtor as legal counsel. AZTEC FUND: Unsecured BANA Claim Will Get 20% in Joint Plan ----------------------------------------------------------- The Aztec Fund Holding Inc. and its affiliates filed with the U.S. Bankruptcy Court for the Southern District of Texas an Amended Combined Disclosure Statement describing Joint Chapter 11 Plan of Reorganization dated January 16, 2025. The Aztec Fund Holding, Inc. ("TAF Holding") and Aztec OME Holdings, Inc. ("OME Holdings" and, together with TAF Holding, the "Holding Companies") are each Delaware corporations and are the parents of the remaining Debtors. Before the filing of these Chapter 11 Cases, each of the Debtors held an interest in commercial real estate, office buildings or land. On or around May 7, 2024, Bank of America, National Association ("BANA"), secured lender to the Debtors, foreclosed on the 5 properties known as Lake Vista, Intellicenter, Lakeside, Pinnacle Park and Royal Tech. To support the reorganization of the Debtors, certain original investors in the Debtors (the "Investors") have agreed to invest an additional $2.5 million. The Investors have signed a Restructuring Support Agreement demonstrating their commitment to the Debtors' reorganization. Some of those funds, $550,000, will go to pay creditors of the RE Debtors and the NRE Debtors. The Debtors believe that this recovery to Creditors would not be available if the Debtors were to liquidate and distribute proceeds to BANA in accordance with its security interest in most of the Debtors' assets. Class 3 consists solely of the rights, claims, and interests of BANA under, for, and on account of (x) the BANA Loan Claim and the BANA Loan Documents to the extent unsecured as a deficiency claim under section 506 of the Bankruptcy Code; and (y) the BANA Guaranty Claim. Except to the extent BANA agrees to a less favorable treatment, in exchange for the full and final satisfaction, settlement, release and discharge of the Unsecured BANA Claim, BANA shall receive the BANA Unsecured Note. The BANA Unsecured Note will be an unsecured obligation of each of the Reorganized Debtors with a term of five years. The BANA Unsecured Note will not accrue interest during the term, but will be entitled to a payment of 20% of its principal amount on the 5th day of the (23rd) month of the term of the BANA Unsecured Note. Class 3 is impaired. Class 4 consists of holders of General Unsecured Claims against the NRE Debtors. Holders of Allowed NRE General Unsecured Claims shall receive their pro rata portion of the GUC Recovery Pool after treatment of the RE General Unsecured Claims. Class 4 is impaired under the Plan. Class 5 consists solely of the rights, claims, and interests of TPARSS and Fenicia on account of the TPARSS Loan Claim and the Fenicia Loan Claim, respectively. TPARSS has agreed that the TPARSS Loan Claim shall be cancelled, released and extinguished, and TPARSS shall not receive or retain any distribution, property, or other value on account of TPARSS Loan Claim. On the Effective Date, unless Fenicia elects a less favorable treatment, Fenicia shall receive 8% of the New Equity in Reorganized OME, or an equivalent interest in Reorganized OME's direct parent. Class 7 consists of holders of General Unsecured Claims against the RE Debtors. On the Effective Date, or as soon as reasonably practicable thereafter, unless a holder of an Allowed RE General Unsecured Claim elects a less favorable treatment, each holder of an Allowed RE General Unsecured Claims shall receive cash in the amount of its Allowed RE General Unsecured Claim. Class 7 is unimpaired under the Plan. On the Effective Date, in exchange for New Equity in Reorganized OME and Reorganized TAF, and to fund the GUC Recovery Pool, TAF OME S.A.P.I. de C.V., a Mexican entity, shall contribute $2.5 million. The percentage of New Equity issued to TAF OME S.A.P.I. de C.V., a Mexican entity, is subject to the Fenicia Election. On the Effective Date, the New Equity in Reorganized OME and Reorganized TAF shall be issued and distributed to TAF OME S.A.P.I. de C.V., a Mexican entity, and, subject to the Fenicia Election. The issuance and delivery of the New Equity in accordance with the Plan shall be authorized without the need for any further limited liability company or corporate action and without any further action by any party in interest. All of the New Equity to be issued and/or delivered in accordance with the Plan, when so issued and/or delivered shall be duly authorized, validly issued, fully paid, and non-assessable. Reorganized Debtors will not issue non-voting securities. A full-text copy of the Amended Combined Disclosure Statement and Plan dated January 16, 2025 is available at https://urlcurt.com/u?l=4rmmy5 from Stretto, claims agent. Counsel to the Debtors: John D. Cornwell, Esq. Brenda L. Funk, Esq. Julian P. Vasek, Esq. Alexander R. Perez, Esq. MUNSCH HARDT KOPF & HARR, P.C. 700 Milam Street, Suite 800 Houston, Texas 77002 Telephone: (713) 222-1470 Facsimile: (713) 222-1475 Email: jcornwell@munsch.com bfunk@munsch.com jvasek@munsch.com arperez@munsch.com About Aztec Fund Holding, Inc. The Aztec Fund Holding Inc. invests in office buildings in the United States and thus create real estate portfolios that generate regular cash flows and sustainable value over time. The Aztec Fund Holding Inc. and its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 24-90436) on August 5, 2024. In the petition filed by Charles Haddad, as president, the Debtor reports estimated assets between $10 million and $50 million and estimated liabilities between $100 million and $500 million. The Honorable Bankruptcy Judge Christopher M. Lopez oversees the cases. The Debtors tapped Munsch Hardt Kopf & Harr, P.C., as counsel; and Getzler Henrich & Associates LLC as financial advisor. Hilco Real Estate Appraisals, LLC is the real estate appraiser. Stretto, Inc., is the claims agent. BEAUCHAMP ENTERPRISES: Gets Interim OK to Use SBA's Cash Collateral ------------------------------------------------------------------- Beauchamp Enterprises got the green light from the U.S. Bankruptcy Court for the District of Nevada to use the cash collateral of the U.S. Small Business Administration. The order signed by Judge Hilary Barnes authorized the company to utilize its secured creditor's cash collateral on an interim basis until entry of a final order approving the use of collateral. Judge Barne is set to hold a final hearing on Jan. 29. The company's six-month budget shows total expenses of $54,284 for December 2024; $43,806 for January; $38,119 for February; $44,821 for March; $49,202 for April; and $54,474 for May. About Beauchamp Enterprises Beauchamp Enterprises sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Nev. Case No. 24-51268) on December 23, 2024, with $100,001 to $500,000 in both assets and liabilities. Judge Hilary L. Barnes presides over the case. The Debtor is represented by: Kevin A. Darby, Esq. Darby Law Practice, Ltd Tel: 775-322-1237 Email: kevin@darbylawpractice.com BENK GROUP: Gets Interim OK to Use Cash Collateral -------------------------------------------------- The Benk Group, LLC got the green light from the U.S. Bankruptcy Court for the Eastern District of Texas, Sherman Division, to use cash collateral on an interim basis. The company requires the use of cash collateral to fund payroll, materials, supplies, and other general operational needs. First Internet Bank of Indiana asserts an interest in the cash collateral. As adequate protection, the secured lender was granted replacement liens on the company's equipment, inventory and accounts whether such property was acquired before or after the company's Chapter filing. The company's authority to use cash collateral expires upon entry of a subsequent order from the bankruptcy court. The final hearing is scheduled for Feb. 4. First Internet Bank can be reached through its counsel: Mark A. Platt, Esq. Frost Brown Todd, LLP 2101 Cedar Springs Road, Suite 900 Dallas, TX 75201 Phone: (214) 580-5852 Fax: (214) 545-3473 mplatt@fbtlaw.com About The Benk Group The Benk Group, LLC operates as Emerald Cut Lawn & Landscape, a Texas-based landscaping services provider established in 1985 and maintains operations in Celina and Cedar Hill, Texas. The company provides residential and commercial landscaping services including lawn care, tree trimming, and landscape design. The Benk Group sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Texas Case No. 25-40100) on January 14, 2025, with $1 million to $10 million in both assets and liabilities. Judge Brenda T. Rhoades handles the case. The Debtor is represented by Robert DeMarco, III, Esq., at DeMarco Mitchell, PLLC. BIO-KEY INTL: Streeterville Capital Holds 9.1% Equity Stake ----------------------------------------------------------- Streeterville Capital LLC, Streeterville Management LLC, and John M. Fife disclosed in Schedule 13G filed with the U.S. Securities and Exchange Commission disclosing that as of January 15, 2025, it beneficially owned 340,000 shares of BIO-key International, Inc.'s common stock, representing 9.1% of the 3,736,350 shares outstanding. Streeterville Capital LLC may be reached at: 303 East Wacker Drive, Suite 1040, Chicago, IL 60601 A full-text copy of Streeterville Capital's SEC Report is available at: https://tinyurl.com/2e96cyvj About BIO-key Holmdel, N.J.-based BIO-key International, Inc., founded in 1993, is revolutionizing authentication and cybersecurity with biometric-centric, multi-factor identity and access management (IAM) software securing access for over forty million users. BIO-key allows customers to choose the right authentication factors for diverse use cases, including phoneless, tokenless, and passwordless biometric options. Its hosted or on-premise PortalGuard IAM solution provides cost-effective, easy-to-deploy, convenient, and secure access to computers, information, applications, and high-value transactions. Henderson, Nev.-based Bush & Associates CPA LLC, the Company's auditor since 2024, issued a "going concern" qualification in its report dated June 5, 2024, citing that the Company has suffered substantial net losses and negative cash flows from operations in recent years and is dependent on debt and equity financing to fund its operations, all of which raise substantial doubt about the Company's ability to continue as a going concern. For the years ended December 31, 2023 and 2022, BIO-key International reported net losses of $8,521,837 and $11,909,903, respectively. As of September 30, 2024, BIO-key International had $6,399,703 in total assets, $6,266,661 in total liabilities, and $133,042 in total stockholders' equity. BLUE RIBBON: S&P Upgrades ICR to 'CCC+', Outlook Negative --------------------------------------------------------- S&P Global Ratings raised its issuer credit rating on U.S.-based beer marketer Blue Ribbon LLC (Pabst) to 'CCC+' from 'SD' (selective default). S&P said, "We raised the issue-level rating on the company's legacy term loan B to 'CCC+' from 'D' with a recovery rating of '4', indicating our expectations for average (30%-50%; rounded estimate: 35%) recovery in the event of a payment default. "We assigned a 'B' issue-level rating to the new super-priority, first-out term loan and revolving credit facility with a recovery rating of '1', indicating our expectations for very high (90%-100%; rounded estimate: 95%) recovery. "The negative outlook reflects our belief that Pabst's capital structure remains unsustainable, with large cash outlays to transition its brewing and onerous principal payments, which could hamper an operational turnaround. "Despite the new sourcing agreement with AB InBev, new capital structure, and improved near-term liquidity position, we continue to view Pabst's capital structure as unsustainable. We anticipate that the company will face a challenging strategic transition, exacerbated by its significant contractual debt service burden that incudes annual debt amortization of about $18 million, and our base-case projection for free operating cash flow (FOCF) deficits through at least fiscal 2025. We forecast FOCF deficits of $38 million in 2025 and $11 million in 2026, insufficient to service its amortization absent a more than doubling of its EBITDA rebound. Our forecast credit metrics suggest that Pabst remains under pressure, with S&P Global Ratings-adjusted leverage of about 11x in 2025 and debt service coverage including contractual amortization of about 0.7x. The company's legacy term loan B amortization remains high at $18.4 million, which will continue to pressure cash flow." The recent amendment to Pabst's credit agreement revised its springing financial covenant requirement to a test for maximum first-out net leverage at an initial 6x and stepping down to 3.5x by the end of 2026. S&P said, "Pabst's covenant-defined EBITDA allows for substantial estimates of pro forma cost savings to be added back to EBITDA, hence we estimate pro forma credit agreement leverage of about 3x at close. In our base case, we forecast a possible covenant violation in 2026 when debt to EBITDA sequentially steps down to 3.5x by the end of 2026, driven by increased revolver borrowings, a tighter test level, and a tepid recovery in operating performance." Even with benefits from the new supply agreement with AB InBev, debt service remains constrained over the next 12-18 months. S&P said, "We believe the deal could improve production reliability, access to increased brewing capacity, service, and cost efficiencies. We expect 200 basis points (bps) of reported gross margin expansion and an increase of about 500 bps of S&P Global Ratings-adjusted EBITDA margin in 2025, driven by cost savings related to the new sourcing agreement. However, these gains may not be enough to satisfy the company's high debt service requirements. Moreover, we believe Pabst's operational turnaround will take time. We don't foresee a material rebound until at least the second half of 2026 unless a favorable liquidity development takes hold, such as asset sale proceeds from the Irwindale, Calif., property." The Irwindale property remains a lever the company can use to repay debt, though the likelihood of a sale within the next year is low. S&P said, "We expect Blue Ribbon subsidiary IBY Property Owner LLC will eventually sell all or a portion of the 150-acre property upon receipt of regulatory approvals for land entitlement, which we understand could be completed during the first half of 2026. After repaying IBY's $125 million mortgage, Pabst could improve its credit measures by using the excess proceeds from a sale to repay funded debt. However, the timing and materiality of any sale are uncertain. We note that our forecast does not incorporate any debt paydown using the proceeds from a property sale." The negative outlook reflects S&P's belief that Pabst's capital structure remains unsustainable, and its operational turnaround will take time. S&P could lower the rating if it believes a default is likely within the subsequent 12 months. This could occur if: -- The company cannot realize the anticipated significant benefits and cost savings from its new sourcing agreement with AB InBev, which would materially weaken liquidity significantly and increase the likelihood of a covenant breach in fiscal 2026; or -- Its high contractual debt service requirements materially deplete remaining available liquidity before an operational turnaround succeeds or it monetizes the Irwindale property and materially repays debt. S&P said, "While unlikely over the next 12 months, we could take a positive rating action if Pabst stabilizes operating performance and improves its liquidity position, such that we no longer believe its capital structure is unsustainable." This could occur if Pabst: -- Realizes pro forma cost savings expected from winding down its supply agreement with City Brewing and ramps up its deal with AB InBev; -- Significantly improves operating performance due to recaptured volumes and regains shelf space without concessions on pricing with retail partners; and -- Sells the Irwindale property at market value and applies proceeds from additional property sales to pay down debt, reducing leverage and debt service requirements. BOOKS INC: Seeks Chapter 11 Bankruptcy Protection in California --------------------------------------------------------------- Tony Hicks of Bay City News reports that Books Inc., the oldest independent bookstore chain in the Bay Area, announced that it has filed for bankruptcy under Chapter 11. The 174-year-old, privately held company filed a voluntary petition for reorganization in the U.S. Bankruptcy Court for the Northern District of California. The company stated it will utilize Chapter 11 protections to continue operations while working to regain financial stability following sustained revenue losses. Books Inc. attributed the need for reorganization to rising operating costs and changing consumer purchasing behaviors, exacerbated by the COVID-19 pandemic. As part of its restructuring plan, the company will close its Berkeley location on February 9, 2025, moving some staff to other stores in the East Bay, Peninsula, San Francisco, and at San Francisco International Airport. "Books Inc. is not going away," said CEO Andy Perham. "With the support of our board, investors, senior management, and key partners, we believe that reorganizing under Chapter 11 is the most efficient path to a financially stronger future, allowing us to continue serving California readers." Perham expressed confidence in the company's ability to transition into a new, successful phase, thanks to the dedication of its team. Books Inc. is optimistic that its loyal customers will aid in its recovery. "The best way to help is to visit our stores and buy books or place orders online," Perham added. "Our booksellers will continue to offer a vibrant and enriching experience." Aside from the Berkeley location, all other Books Inc. stores will remain open, subject to court approval of the proposed reorganization plan. The company's website, www.booksInc.net, will continue to operate, and its frequent reader program will remain uninterrupted, the report states. Customers holding gift cards from the Berkeley store can use them at any other Books Inc. location or online. About Books Inc. Books Inc. founded in 1851 during the California Gold Rush, is the oldest independently owned bookstore in the western United States and operates eleven brick-and-mortar stores in the Bay Area. In addition to its physical locations, the Company runs an online store, offering a mix of direct shipping and in-store pickup for customers. The Company also fosters strong community engagement, hosting hundreds of author events, book clubs, and other activities each year. Books Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 25-40087) on January 20, 2025. In the petition filed by Andrew Perham, as CEO, the Debtor reports total assets of $3,283,300 and total liabilities of $5,161,574. Honorable Bankruptcy Judge William J. Lafferty handles the case. The Debtor is represented by: Stephen Finestone, Esq. FINESTONE HAYES LLP 456 Montgomery St San Francisco CA 94104 Tel: (415) 421-2624 E-mail: sfinestone@fhlawllp.com BRPS TITLE: Seeks Approval to Tap Tran Singh as Bankruptcy Counsel ------------------------------------------------------------------ BRPS Title of Texas, LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of Texas to employ Tran Singh LLP as counsel. The firm will provide these services: (a) analyze the financial situation, and render advice and assistance to the Debtor; (b) advise the Debtor with respect to its rights, duties, and powers; (c) represent the Debtor at all hearings and other proceedings; (d) prepare and file all legal papers as necessary to further the Debtor's interests and objectives; (e) represent the Debtor at any meeting of creditors and such other services as may be required during the course of the bankruptcy proceedings; (f) represent 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; (g) prepare and file a disclosure statement, if required, and Subchapter V Plan of Reorganization; (h) assist the Debtor in analyzing the claims of the creditors and in negotiating with such creditors; and (i) assist the Debtor in any matters relating to or arising out of the captioned case. The firm's attorneys will be paid at these hourly rates: Susan Tran Adams $550 Brendon Singh $550 Mayur Patel $425 In addition, the firm will seek reimbursement to expenses incurred. The firm received a pre-petition retainer of $22,500 and a post-petition retainer of $4,500. Mr. Singh 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: Brendon Singh, Esq. Tran Singh LLP 2502 La Branch Street Houston, TX 77004 Telephone: (832) 975-7300 Facsimile: (832) 975-7301 Email: stran@ts-llp.com About BRPS Title of Texas BRPS Title of Texas, LLC filed Chapter 11 petition (Bankr. S.D. Tex. Case No. 24-36006) on December 23, 2024, with up to $50,000 in assets and up to $10 million in liabilities. Jason Klam, chief operating officer of BRPS, signed the petition. Judge Jeffrey P. Norman oversees the case. Brendon Singh, Esq., at Tran Singh LLP serves as the Debtor's counsel. CABLE & WIRELESS: S&P Rates Subsidiary's $1.53BB Term Loan 'BB-' ---------------------------------------------------------------- S&P Global Ratings assigned its 'BB-' issue rating to Coral-US Co-Borrower LLC's $1.53 billion senior secured term loan B-7 due 2032. Coral-US Co-Borrower is a subsidiary of Cable & Wireless Communications Ltd. (CWC; BB-/Stable/B). S&P said, "We view the transaction as leverage neutral, given CWC will use the proceeds to repay in full Coral-US Co-Borrower's existing $1.51 billion term Loan B-5 due 2028 and to pay expenses and fees in connection with the transaction. The new loan will have the same incurrence covenants as CWC's existing debt, calculated on a proportionate basis, which require that the net leverage ratio not exceed 5.0x and the senior secured net leverage ratio not exceed 4.0x. "On a pro forma basis, the refinancing won't affect the notching of CWC's debt capital structure, but we think this transaction aligns with the company's debt refinancing strategy and will extend CWC's debt maturity schedule to 5.8 years from 4.4 years. "Our ratings on CWC continue to reflect its incumbent market positions in Jamaica and the Bahamas and its strong performance in Panama, alongside robust results in the postpaid mobile and business-to-business segments. They also reflect the company's ability to sustain margins despite highly competitive markets. We expect the company's S&P Global Ratings-adjusted net-debt-to-EBITDA ratio to remain below 5.0x and funds from operations to debt to remain near 12.0%. "In addition, we think the company's proactive liability management will help preserve its strong liquidity. As of Sept. 30, 2024, CWC had a $534 million undrawn committed revolving credit facility, supporting its liquidity position." CANVAS PROS: Deland Property Sale to Amprop Ventures OK'd --------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida, Orlando Division, has granted Canvas Pros, Inc. to sell Real Property subject to all liens, claims, encumbrances, and interests. The Debtor's Property is located at 576 E. International Speedway Blvd., Deland, Florida. The Debtor is authorized to sell the Property to Amprop Ventures, LLC for the sum of $950,000.00, subject to all existing pre-petition liens, claims, encumbrances, and interests by private sale. The liens of the Fairwinds and Will Roberts, Tax Collector as described in the Motion shall continue upon the sale of the property and be subject to future payment from the sale of the property from any closing proceeds received by the Debtor. The sale made pursuant to the Order is "AS-IS WHERE IS WITH ALL FAULTS" and shall be by Assignment and/or instrument of conveyance as appropriate, with no warranties of title whatsoever. The Debtor's proceeds from the sale shall be held in escrow pending further order of the Court. The Debtor is ordered to pay any professionals from the sale proceeds and shall seek prior approval of any compensation to be paid. About Canvas Pros, Inc. Canvas Pros, Inc. filed voluntary Chapter 11 petition (Bankr. M.D. Fla. Case No. 24-02518) on May 20, 2024, listing under $1 million in both assets and liabilities. Judge Tiffany P. Geyer oversees the case. Law Offices of Mickler & Mickler, LLP serves as the Debtor's bankruptcy counsel. CAREMAX INC: Ombudsman Hires SAK Healthcare as Medical Advisor -------------------------------------------------------------- Suzanne Koenig, the patient care ombudsman appointed in the Chapter 11 cases of CareMax, Inc. and its affiliates, seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to employ SAK Management Services, LLC, doing business as SAK Healthcare, as medical operations advisor. The firm will render these services: (a) conduct interviews of patients, family members, guardians and staff as required; (b) review license and governmental permits; (c) review adequacy of staffing, supplies and equipment; (d) review safety standards; (e) review patient, family, staff or employee complaints; (f) review risk management reports; (g) review litigation relating to the Debtors; (h) review patient records; (i) review any possible sale, closure or restructuring of the Debtors and how it impacts patients; (j) review other information, as applicable to the Debtors and these cases; (k) review various financial information; and (l) assist the ombudsman with such other services as may be required under the circumstances of these cases. The firm will be paid at these hourly rates: Principals/Executives $525 Senior Managing Directors/Vice Presidents $475 Senior Directors/Regional Directors/Directors $425 Staff/Administrative $275 The firm will seek reimbursement for expenses incurred. Suzanne Koenig, founder and chief executive officer of SAK Healthcare, 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: Suzanne A. Koenig SAK Healthcare 300 Saunders Rd. Riverwoods, IL 60015 Telephone: (847) 446-8400 About CareMax Inc. CareMax Inc. is a provider of medical centers for elderly patients. CareMax and its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 24-80093) on November 17, 2024. In its petition, CareMax reported estimated liabilities between $500 million and $1 billion and estimated assets between $100 million and $500 million. Judge Michelle V. Larson oversees the cases. The Debtors tapped Thomas Robert Califano, Esq., at Sidley Austin, LLP as bankruptcy counsel; Alvarez & Marsal North America, LLC as financial advisor; and Piper Sandler & Co. as investment banker. Stretto, Inc. is the Debtors' claims, noticing and solicitation agent. On December 4, 2024, the Office of the United States Trustee appointed an official committee of unsecured creditors in these Chapter 11 cases. The committee tapped Pachulski Stang Ziehl & Jones LLP and Sills Cummis & Gross PC as counsels and M3 Advisory Partners, LP as financial advisor. On December 19, 2024, Suzanne Koenig was appointed as the patient care ombudsman in the Chapter 11 cases. She tapped SAK Management Services, LLC, doing business as SAK Healthcare, as medical operations advisor and Ross, Smith & Binford, PC as counsel. CAREMAX INC: Ombudsman Taps Ross Smith & Binford as Legal Counsel ----------------------------------------------------------------- Suzanne Koenig, the patient care ombudsman appointed in the Chapter 11 cases of CareMax, Inc. and its affiliates, seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to employ Ross, Smith & Binford, PC as counsel. The firm will render these services: (a) advise the ombudsman regarding her powers and duties under applicable law with respect to her role in these bankruptcy cases; (b) serve as counsel of record for the ombudsman in all legal aspects of these bankruptcy cases; (c) prepare pleadings in connection with the foregoing services; and (d) appear before this court to represent the interests of the ombudsman in connection with the foregoing services. The firm will be paid at the following hourly rates: Shareholders $650 Associates and Counsel $400 - $600 Paraprofessionals $150 In addition, the firm will seek reimbursement to 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 2901 Via Fortuna, Bldg. 6, Suite 450 Austin, TX 78746 Telephone: (512) 798-3298 Facsimile: (214) 377-9409 Email: casey.roy@rsbfirm.com About CareMax Inc. CareMax Inc. is a provider of medical centers for elderly patients. CareMax and its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 24-80093) on November 17, 2024. In its petition, CareMax reported estimated liabilities between $500 million and $1 billion and estimated assets between $100 million and $500 million. Judge Michelle V. Larson oversees the cases. The Debtors tapped Thomas Robert Califano, Esq., at Sidley Austin, LLP as bankruptcy counsel; Alvarez & Marsal North America, LLC as financial advisor; and Piper Sandler & Co. as investment banker. Stretto, Inc. is the Debtors' claims, noticing and solicitation agent. On December 4, 2024, the Office of the United States Trustee appointed an official committee of unsecured creditors in these Chapter 11 cases. The committee tapped Pachulski Stang Ziehl & Jones LLP and Sills Cummis & Gross PC as counsels and M3 Advisory Partners, LP as financial advisor. On December 19, 2024, Suzanne Koenig was appointed as the patient care ombudsman in the Chapter 11 cases. She tapped SAK Management Services, LLC, doing business as SAK Healthcare, as medical operations advisor and Ross, Smith & Binford, PC as counsel. CAREPOINT HEALTH: Unsecureds Will Get 1% to 2% of Claims in Plan ---------------------------------------------------------------- CarePoint Health Systems Inc., d/b/a Just Health Foundation, et al., and the Official Committee of Unsecured Creditors submitted a First Amended Combined Disclosure Statement and Joint Chapter 11 Plan of Reorganization dated January 16, 2025. The Plan provides that, upon the Effective Date, the Litigation Trust Assets will be transferred to the Litigation Trust. The Litigation Trust Assets will be administered and distributed as soon as practicable pursuant to the terms of the Plan and the Litigation Trust Agreement. Activities of Prior Owners After acquiring the Hospitals from prior bankruptcies, the Prior Owners proceeded to extract tens of millions of dollars from the Hospitals through numerous questionable transactions and transfers, including without limitation, sale-leaseback transactions, inflated management fees (for which little or no services were provided) paid to related entities, and diversion of corporate assets to personal use. In 2019, the New Jersey Commission of Investigations released a detailed report explaining how the Prior Owners used a byzantine network of shell companies to extract over $157 million from the Hospitals. The Prior Owners were also at the epicenter of the failed efforts by other healthcare systems in New Jersey to engage in strategic transactions with the Debtors prior to the Petition Date. The Prior Owners improperly pursued their individual interests, in contravention of their fiduciary duties, and contributed to the inability to consummate such transactions, which could have avoided the need for the commencement of these Chapter 11 Cases and could have resulted in more favorable treatment for the Debtors' creditors. The Prior Owners’ systematic siphoning of the Debtors' assets for over a decade, among other factors, rendered the Debtors insolvent, left them with insufficient capital, and weakened them to the point where they became virtually unviable as going concerns. In light of the public scrutiny surrounding the Debtors' finances and insider transactions on February 5, 2020, the State of New Jersey first appointed a monitor for Christ Hospital. On January 10, 2024, the State of New Jersey extended the appointment to all three Hospitals. Class 7 consists of General Unsecured Claims. On, or as soon as reasonably practicable after, the Effective Date, except to the extent such Holder and the Debtors or the Litigation Trustee, as applicable, shall have agreed upon in writing to alternative treatment, each Holder of an Allowed General Unsecured Claim shall receive, on account of, in exchange for, and in full and final satisfaction, compromise, settlement, release, and discharge of such Allowed General Unsecured Claim, a Pro Rata beneficial interest in the Litigation Trust. The allowed unsecured claims total $162 million. This Class will receive a distribution of 1% to 2% of their allowed claims. This Class is impaired. Class 9 consists of all Prior Owner Claims; provided, however, that if any Holder of a Prior Owner Claim objects to its proposed classification and such objection is sustained by the Court, such Holder shall be deemed to have voted against the Plan and such Holder's claim shall be classified as a Class 7 General Unsecured Claim for voting purposes only, subject to the following procedures regarding the amount of such Claim for voting purposes: * Any Holder of a Prior Owner Claim that objects to the classification of its Claim must file and serve on the Plan Proponents a Proof of Claim no later than no later than 7 days after the entry of the Interim Disclosure Statement Order. * The Plan Proponents shall have seven calendar days after service of any such Proof of Claim to object to or otherwise challenge such Proof of Claim for voting purposes only. Holders of Prior Owner Claims shall not receive or retain any property under the Plan on account of such Claims provided, however, that in the event any Holder of a Prior Owner Claim objects to its proposed treatment under the Plan and such objection is sustained by the Court, such Holder of a Prior Owner Claim shall be treated as a Class 7 General Unsecured Claim. The Debtors' and/or Reorganized Debtors' Cash on hand and other Assets and the Litigation Trust Assets shall be used to fund the distributions to Holders of Allowed Claims against the Debtors in accordance with the treatment of such Claims provided pursuant to the Plan and subject to the terms provided herein. On or prior to the Effective Date, the Debtors shall enter into the Litigation Trust Agreement, in form and substance acceptable to the UCC, to establish the Litigation Trust for the purposes of investigating, prosecuting, or settling the Litigation Claims; liquidating the Litigation Trust Assets and distributing the proceeds as required under the Plan and Litigation Trust Agreement. HRH shall have the right to consent to the Litigation Trust Agreement, such consent shall not be unreasonably withheld. To the extent of any dispute regarding the proposed Litigation Trust Agreement, such dispute shall be determined by the Court. A full-text copy of the First Amended Combined Disclosure Statement and Joint Plan dated January 16, 2025 is available at https://urlcurt.com/u?l=bonz2Q from Epiq Corporate Restructuring, claims agent. Counsel to the Debtors: DILWORTH PAXSON LLP Peter C. Hughes, Esq. 800 King Street, Suite 202 Wilmington, DE 19801 Telephone: (302) 571-9800 E-mail: phughes@dilworthlaw.com -and- Lawrence C. McMichael, Esq. Peter C. Hughes, Esq. Anne M. Aaronson, Esq. Jack Small, Esq. 1650 Market St., Suite 1200 Philadelphia, PA 19103 Telephone: (215) 575-7000 E-mail: lmcmichael@dilworthlaw.com phughes@dilworthlaw.com aaaronson@dilworthlaw.com jsmall@dilworhtlaw.com Counsel to the Official Committee of Unsecured Creditors: Andrew H. Sherman, Esq. Boris I. Mankovetskiy, Esq. SILLS CUMMIS & GROSS, P.C. One Riverfront Plaza Newark, NJ 07102 Tel: (973) 643-7000 Fax: (973) 643-6500 E-mail: asherman@sillscummis.com bmankovetskiy@sillscummis.com Bradford J. Sandler, Esq. James E. O'Neill, Esq. Colin R. Robinson, Esq. PACHULSKI STANG ZIEHL & JONES LLP 919 N. Market Street, 17th Floor P.O. Box 8705 Wilmington, DE 19899-8705 (Courier 19801) Telephone: (302) 652-4100 Facsimile: (302) 652-4400 Email: bsandler@pszjlaw.com joneill@pszjlaw.com crobinson@pszjlaw.com About CarePoint Health CarePoint Health brings quality, patient-focused health care to Hudson County. Combining the resources of three area hospitals, Bayonne Medical Center, Christ Hospital in Jersey City, and Hoboken University Medical Center, CarePoint Health provides a new approach to deliver health care that puts the patient front and center. CarePoint Health leverages a network of top doctors, nurses, and other medical professionals whose expertise and attentiveness work together to provide complete coordination of care, from the doctor's office to the hospital to the home. Patients benefit from the expertise and capabilities of a broad network of leading specialists and specialized technology. At CarePoint Health, all medical professionals emphasize preventive medicine and focus on educating patients to make healthy life choices. For more information on its facilities, partners and services, visit www.carepointhealth.org. CarePoint Health Systems Inc., doing business as Just Health Foundation, and its affiliates filed voluntary petitions for relief under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-12534) on Nov. 3, 2024, with up to $1 million in assets and up to $50,000 in liabilities. Judge J. Kate Stickles oversees the cases. The Debtors tapped Dilworth Paxson LLP as legal counsel, Ankura Consulting as financial advisor, and Epiq Corporate Restructuring, LLC as claims and noticing agent and administrative advisor. CBDMD INC: Fully Satisfies Senior Secured Notes; Now Debt-Free -------------------------------------------------------------- cbdMD, Inc. announced that it has fully satisfied the accrued interest and principal associated with its Senior Secured Convertible Notes. The remaining outstanding Senior Secured Convertible Notes in the amount of approximately $56,000 were converted by the holders of such notes into shares of the Company's common stock. As of January 14, 2025, there are 6,262,833 shares of the Company's common stock issued and outstanding. "The Notes have been instrumental in providing us with the working capital cushion needed over the past year. By the full conversion of the Notes into shares of our common stock ahead of their maturity date, we've strengthened our financial position, enhanced our cash reserves, and gained greater flexibility to allocate capital prudently toward driving profitable revenue growth. With this milestone, we are now debt-free, excluding accounts payable from normal operations, and remain committed to further optimizing our balance sheet and capital structure to support sustainable long-term growth," said Ronan Kennedy, the Company's CEO & CFO. About cbdMD, Inc. Headquartered in Charlotte, NC, cbdMD, Inc. -- www.cbdmd.com -- owns and operates the nationally recognized CBD (cannabidiol) brands cbdMD, Paw CBD, and cbdMD Botanicals. Its mission is to enhance its customers' overall quality of life while bringing CBD education, awareness, and accessibility of high-quality and effective products to all. The Company sources cannabinoids, including CBD, which are extracted from non-GMO hemp grown on farms in the United States. Charlotte, North Carolina-based Cherry Bekaert LLP, the Company's auditor since 2016, issued a "going concern" qualification in its report dated Dec. 18, 2024, citing that the Company has historically incurred losses, including a net loss of approximately $3.7 million in the current year, resulting in an accumulated deficit of approximately $182 million as of September 30, 2024. These conditions raise substantial doubt about the Company's ability to continue as a going concern. cbdMD reported $3,700,126 in net loss for the fiscal year ended September 30, 2024, compared to a net loss of $22,938,209 for the fiscal year ended September 30, 2023. The Company also reported $10,581,457 in total assets, $8,618,040 in total liabilities, and $1,963,417 in total shareholders' equity at September 30, 2024. CIMG INC: Board Member Jian Liu Resigns --------------------------------------- CIMG Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that on January 9, 2025, Jian Liu, a member of the Board of Directors, notified the Company of his resignation from the Board, including his positions as a member of the audit committee, compensation committee, and nominating and corporate governance committee, effective immediately. Mr. Liu's decision to resign from the Board was not the result of a disagreement with the Company on any matter relating to the Company's operations, accounting policies or practices. About CIMG Inc. Headquartered in Vista, California, CIMG Inc. (formerly Nuzee, Inc.) is a digital marketing, sales and distribution company for various consumer products with focuses on food and beverages. Dedicated to reshaping the digital marketing and distribution with technological applications, the Company endeavors to create greater commercial value for its business partners and therefore enhance its own enterprise value and shareholders' value of their stake in the Company. The Company has a professional brand and marketing management system, which can quickly help partnering enterprises achieve the connection, management, and operation of marketing channels domestically and globally. "The Company has had limited revenues, recurring losses and an accumulated deficit. These items raise substantial doubt as to the Company's ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty," said Nuzee in its Quarterly Report for the period ended June 30, 2024. The Company has not yet filed its Form 10-K for the fiscal year ended Sept. 30, 2023. CIMG INC: Maca Beverages Win 2024 China New Consumer Brand Award ---------------------------------------------------------------- CIMG Inc. announced that Maca Noli, a beverage product of CIMG, has been awarded the 2024 China Annual Most Innovative New Consumer Brand Award, which is presented by iiMedia Research, a third-party data mining and analysis firm in the global new economy industry. Maca Noli is the first plant-based energy drink launched by CIMG. Maca Noli's ingredients include plant extracts such as maca and Noni which help relieve physical fatigue, and enhancing immunity. Maca Noli is ideal for people who pursue safe, healthy, and natural food. Maca Noli beverages has been sold through multiple channels such as Lawson convenience stores in the following areas in People's Republic of China: the city of Beijing, the city of Tianjin, and the Hebei Province, through certain USmile PetroChina stores, and certain vending machines. The Maca Noli beverages sales area includes multiple regions such as North China and South China. Ms. Jianshang Wang, the Chairwoman of the Board of Directors and Chief Executive Officer of CIMG, commented: "The award presented by iiMedia Research is a recognition of Maca Beverages and the company's business. In the future, the company will continue to integrate resources, optimize business development, enhance company performance, and create greater value for shareholders through new strategies." About CIMG Inc. Headquartered in Vista, California, CIMG Inc. (formerly Nuzee, Inc.) is a digital marketing, sales and distribution company for various consumer products with focuses on food and beverages. Dedicated to reshaping the digital marketing and distribution with technological applications, the Company endeavors to create greater commercial value for its business partners and therefore enhance its own enterprise value and shareholders' value of their stake in the Company. The Company has a professional brand and marketing management system, which can quickly help partnering enterprises achieve the connection, management, and operation of marketing channels domestically and globally. "The Company has had limited revenues, recurring losses and an accumulated deficit. These items raise substantial doubt as to the Company's ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty," said Nuzee in its Quarterly Report for the period ended June 30, 2024. The Company has not yet filed its Form 10-K for the fiscal year ended Sept. 30, 2023. COMARK HOLDINGS: Store-Closing Sales Amid CCAA Proceedings ---------------------------------------------------------- Discounts of up to 40 percent off are available on all merchandise at 217 Ricki's Fashions, cleo Fashions and Bootlegger Clothing stores across Canada in a major store-closing and inventory sell-off sale conducted by Tiger Group. The sale event comes as specialty fashion retailer Comark Holdings, Inc. explores go-forward possibilities for all three brands. Comark, together with its Ricki's, cleo and Bootlegger banners, commenced proceedings under the Companies' Creditors Arrangement Act on January 7. "Bootlegger, Ricki's and cleo offer highly sought-after, dynamic fashionwear at a great value," said Tiger Group Executive Managing Director Bradley W. Snyder. "This sale represents a rare opportunity for shoppers. Come early for the best selections. These sales will last for a limited time only." Goods are still in transit to these stores, Snyder added. "We have plenty of new merchandise arriving daily," he said, "so shoppers will see a constantly evolving selection of dynamic fashions." Initial discounts on all merchandise run from 25 to 40 percent off the original ticketed price. The 221 stores, some of which are cobranded, are located in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, and Newfoundland and Labrador. Founded in 1939, Ricki's carries brands such as Pieces, Only and Vera Moda, with categories that include: -- Shirts, blouses, tees, tanks, sweaters, cardigans, blazers, coats, jackets -- Pants, jeans, leggings, crops, capris, skirts, shorts -- Jumpsuits, rompers, dresses (maxi, midi, short, mini) -- Sleepwear -- Shapewear -- Earrings, necklaces, bracelets, scarves, hats, beanies, gloves, mittens, sunglasses, socks, tights, bags, purses and other accessories cleo, which launched in 1979, offers a similarly wide array of fashions and accessories. The specialty retailer is known for its focus on work wear for women, with a comprehensive offering of sizes and one of the largest petite selections in Canada. Bootlegger was founded in Vancouver, British Columbia, in 1971 and has sold millions of pairs of men's and women's jeans and items of elevated, everyday clothing. The brand is known for its "devotion to innovation in design, fabric and washes and to providing everything that goes with jeans." About Comark Holdings Comark Holdings is one of Canada's specialty apparel retailers. Established in 1976, the Company has over 200 stores operating under three banners: Ricki's, cleo and Bootlegger. Company stores are located in shopping malls, big box power centres and strategic suburban plazas across Canada. CONFLUENCE TECHNOLOGIES: Moody's Downgrades CFR to Caa3 ------------------------------------------------------- Moody's Ratings downgraded Confluence Technologies, Inc.'s ("Confluence") corporate family rating to Caa3 from Caa2 and the company's probability of default rating to Ca-PD from Caa2-PD. Concurrently, Moody's affirmed Confluence's Caa1 senior secured first lien bank credit facilities ratings and downgraded the company's senior secured second lien term loan rating to Ca from Caa3. The ratings outlook was changed to negative from stable. The company, through a principally SaaS-based sales model, provides performance reporting, analytics, regulatory reporting, risk, and data solutions to capital markets clients. The ratings downgrades reflect Moody's growing concern that Confluence's significant interest expense burden will continue to fuel the incurrence of free cash flow deficits throughout the next year, resulting in an ongoing deterioration in the company's weak liquidity profile with a heightened risk of default. Confluence's willingness to continue to sustain a very highly levered capital structure and weak liquidity is indicative of the company's aggressive financial strategies, a key ESG governance consideration and a driver of the rating action. RATINGS RATIONALE Confluence's ratings are constrained by the company's elevated leverage with pro forma debt-to-EBITDA (based on Moody's calculations) of nearly 12x as of September 30, 2024 and Moody's expectation that the company's liquidity will continue to weaken with a heightened risk of default. Confluence's credit profile is also negatively impacted by the company's concentrated equity ownership structure, tolerance for aggressive financial strategies, small revenue scale, and industry concentration in a very competitive end market comprised primarily of software providers for asset managers and servicers in the financial sector. These concerns are partially mitigated by Confluence's established market niche and a large subscriber base, including blue-chip asset managers and servicers. The company's credit quality also benefits from high customer retention rates and a predictable, recurring revenue model as a provider of SaaS-based and licensed software solutions to the financial services sector. Moody's believe that Confluence's liquidity profile remains weak as its cash balance of $10.8 million as of September 30, 2024 will contract throughout the next year given Moody's expectation of free cash flow deficits during this period. Moody's also anticipate that the company's negative free cash flow will necessitate further reliance upon Confluence's $55 million revolving credit facility expiring 2026 (approximately $13.5 million available as of September 30, 2024) for liquidity support. The company's term loans are not subject to financial covenants, but the revolving credit facility has a springing covenant based on a maximum net first lien leverage ratio of 9x (as defined in the credit agreement), which the company should be in compliance with over the next 12-15 months. The instrument ratings reflect the Ca-PD PDR and a higher than average overall recovery in a potential default scenario. The senior secured first lien bank debt facility rating of Caa1 is two notches above the Caa3 CFR. The senior secured first lien bank debt facility rating takes into account its senior ranking in the capital structure relative to the company's senior secured second lien term loan, which provides first loss support to the senior secured first lien debts. The Ca rating for the senior secured second lien term loan reflects its junior position in the debt capital structure behind the senior secured first lien debts. The negative outlook reflects Moody's expectation for Confluence's financial leverage to remain elevated and liquidity to continue to deteriorate throughout the coming year, further pressuring credit quality. The outlook could be changed to stable if Confluence is able to measurably improve its liquidity profile and demonstrate an ability to generate positive free cash flow. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS A rating upgrade is unlikely in the near term given the negative outlook. Over the longer term, the ratings could be upgraded if Confluence maintains consistent revenue and EBITDA growth while adopting and adhering to a more conservative financial policy, which prioritizes debt reduction such that debt-to-EBITDA is reduced significantly from current levels, the company is able to sustain positive free cash flow, and improve its liquidity profile. The ratings could be downgraded if Confluence experiences a deterioration in financial performance resulting in further weakening of the company's liquidity profile and an increased risk of default. The ratings could also be downgraded if Moody's recovery expectations in the event of default diminish. The principal methodology used in these ratings was Software published in June 2022. Confluence, which is principally owned by Clearlake Capital Group, L.P.'s ("Clearlake") and TA Associates Management, L.P. ("TA"), provides, primarily through a SaaS-based sales model, performance reporting, analytics, regulatory reporting, risk, and data solutions to capital markets clients. CONSOL ENERGY: S&P Upgrades ICR to 'BB-', Outlook Stable -------------------------------------------------------- S&P Global Ratings resolved its CreditWatch and upgraded both CONSOL Energy Inc. (CONSOL) and Arch Resources Inc. (Arch) to 'BB-' from 'B+'. At the same time, S&P assigned core group status to Arch and withdrew its public ratings as it will now operate as a subsidiary of Core Natural Resources. The stable outlook reflects S&P's view that Core Natural Resources will sustain debt to EBITDA below 2x while maintaining robust liquidity to withstand softer market conditions over the next 12 to 24 months. CONSOL's merger with Arch creates the largest thermal coal exporter and second-largest metallurgical producer in the U.S. The combined production footprint of 11 mines producing thermal and metallurgical coal provides greater scale, operational breadth, and end-market diversity, as the combined portfolio can serve industrial, steelmaking, and power generation end markets. While defensive in response to declining coal consumption and production in the US, the pairing of these two domestic players will facilitate better access to international seaborne markets with combined access to 25 million tons of export capacity through its ownership of two exports terminals on the East Coast and accessible terminal capacity on the West and Gulf coasts. Core operates some of the lowest-cost U.S. metallurgical assets for steelmaking coal, with the Leer Complex and Itmann sites well positioned in the first quartile on the cost curve. This low-cost position enables the company to compete with third- and fourth- quartile metallurgical producers in the global seaborne markets after incorporating transport and logistic costs. However, despite this increased scale and cost position, Core will still be a relatively small player globally that will become more reliant on the roughly 1.5 billion metric ton global seaborne metallurgical and thermal coal markets and will be exposed to global trade flows and potential disruptions as markets experience more trade protectionism, weather events, and geopolitical shocks that can impact freight capacity and costs. The benefit of Core's diversified footprint will be visible this year as we expect EBITDA of $900 million to $1.1 billion despite the company expecting two quarters of production losses following a fire that broke out at Leer South in mid-January. While exposed to coal-fired plant retirements in the U.S., Core has a track record of increasing tons sold to export markets and non-power generation end markets. Over the past decade, the U.S. utilities industry has reduced reliance on coal-fired generation by about 50%, and today, coal represents only about 15% of total electric generation. S&P said, "We expect the utilities industry will replace most of its remaining coal-fired generation by about 2030. Prior to merging, CONSOL and Arch had each been undergoing a multiyear transition to decrease reliance on U.S. power-generation markets through building commercial relationships in and increasing exports to markets that are still reliant on coal as well as curtailing thermal coal production assets. CONSOL's sales to the domestic power generation market have declined to below 30% of sales from over 60% prior to 2017. Black Thunder in the Powder River Basin (PRB), Core's largest mine, which we expect to account for roughly 50% of production in 2025, sells largely into the power generation market and is ramping down its production profile to meet lower demand as coal-fired power plants in the U.S. retire over the next five years. As of December, we estimate Arch's fund to pay for reclamation for this site is about $150 million." S&P said, "We see potential for Core to have greater earnings volatility compared to CONSOL on a stand-alone basis because of exposure to metallurgical coal prices. Arch's earnings have displayed significant volatility the past few years and we expect Arch's EBITDA will decline about 60% to below $300 million in 2024 based on our expectation of realized prices of $138/ton. During 2022, when metallurgical coal prices reached historical highs, Arch's EBITDA reached almost $1.3 billion. During times of weaker market conditions, we see a risk that producers like Core may face pressure to incur larger discounts compared to price benchmarks in order to sell into export markets, which could exacerbate any decline associated with softer demand and prices. On the other hand, CONSOL's highly contacted thermal coal business can smooth out price variability. The thermal coal business tends to have multiyear contracts with fixed volumes that provide visibility on thermal tons sold and earnings stability as contracted pricing will smooth out any sharp movements in spot prices. The contracted nature of this business can provide a base of more stable earnings compared to the metallurgical business that is more exposed to spot prices. "We expect Core to maintain stable debt levels to current and robust liquidity to provide cushion in its credit metrics to withstand volatility in commodity prices and cyclical end markets. Additionally, we expect the combined company to allocate discretionary cash flows to shareholder returns after capital expenditure (capex) investment. We project Core will have revenue of about $4 billion and EBITDA of $900 million to $1.2 billion in 2025 (reflecting our $220 per ton price assumption for metallurgical coal). This should result in debt to EBITDA of about 1x this year before trending closer to 2x as we expect prices to decline another 10% in 2026. This compares to our stand-alone forecasts for 2024 of $2.2 billion of revenue and $700 million of EBITDA for CONSOL and $2.6 billion revenue and $270 million of EBITDA for Arch Resources. The tranches of tax-exempt bonds of CONSOL and Arch remain outstanding after close of the merger, with the Arch bonds currently held by Core. Capital markets have been more receptive to financing coal assets in 2024 and 2025, particularly metallurgical coal. A resurgence in credit quality for U.S. thermal coal producers will likely also enhance access to capital after these companies eliminate large amounts of debt, pension and asset retirement obligations, and some through bankruptcy. "Following the completion of the merger, we have withdrawn our issuer credit ratings on Arch Resources and, at the same time, we have designated Arch Resources as a core subsidiary of Core Natural Resources. "The stable outlook reflects our view that Core Natural Resources will sustain debt to EBITDA below 2x as we expect the new company to generate about $700 million to $1 billion of EBITDA, while maintaining robust liquidity and low debt levels to withstand softer market conditions over the next 12 to 24 months." S&P could lower its ratings on Core Natural Resources within the next 12 months if leverage approaches 3x. This could occur if: -- The company deviates from its conservative financial policy and takes on more debt; or -- Its earnings decline due to weaker-than-expected export markets. S&P could raise its ratings on Core Natural Resources within the next 12 months, if the company: -- Sustains debt to EBITDA below 2x even if metallurgical and thermal coal prices continue to decline; -- Achieves stronger-than-anticipated earnings growth from operational synergies of the combined portfolio of CONSOL and Arch's assets; and -- Maintains strong free operational cash flow and a substantial liquidity cushion. CORK CAPITAL: Seeks Subchapter V Bankruptcy Protection in Florida ----------------------------------------------------------------- On January 17, 2025, Cork Capital LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Middle District of Florida. According to court filing, the Debtor reports $1,419,231 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Cork Capital LLC Cork Capital LLC is a limited liability company. Cork Capital LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No.: 25-00363) on January 17, 2025. In its petition, the Debtor reports total assets of $312,267 and total liabilities of $1,419,231. . Honorable Bankruptcy Judge Grace E. Robson handles the case. The Debtor is represented by: Jeffrey S. Ainsworth, Esq. Bransonlaw PLLC 1501 E. Concord Street Orlando, FL 32803 Tel: 407-894-6834 E-mail: jeff@bransonlaw.com CORNERSTONE HOME: Seeks to Hire Melissa Youngman as Legal Counsel ----------------------------------------------------------------- Cornerstone Home Care Services, LLC seeks approval from the U.S. Bankruptcy Court for the Middle District of Florida to employ Melissa Youngman, PA, doing business as Winter Park Estate Plans & ReOrgs: A Private Law Practice, as counsel. The firm will provide these services: (a) prepare and file the Debtor's petition, schedules, summaries, statements and disclosures; (b) represent the Debtor at its initial debtor interview and Section 341 meeting of creditors; (c) advise and counsel the Debtor concerning the operations of its business in compliance with the Subchapter V, Chapter 11 rules, guidelines, procedures, and order of this court; (d) defend any causes of action arising in this Subchapter V, Chapter 11 on behalf of the Debtor; (e) assist in the formulation of a plan of reorganization; (f) perform a claims analysis and prepare any objections to claims that may become necessary in the administration of the Debtor's estate; and (g) provide any and all services of a legal nature in the field of bankruptcy law. Prior to the petition date, the firm received from the Debtor (i) a retainer of $4,000; and (ii) payment of $1,738 as reimbursement for the Chapter 11 court filing fee. Melissa Youngman, Esq., the sole shareholder at Winter Park Estate Plans & ReOrgs: A Private Law Practice, 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: Melissa A. Youngman, Esq. Winter Park Estate Plans & ReOrgs: A Private Law Practice P.O. Box 303 Winter Park, FL 32790 Telephone: (407) 374-1372 Email: melissayoungman@melissayoungman.com About Cornerstone Home Care Services Cornerstone Home Care Services, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-06707) with $50,001 to $100,000 in assets and $100,001 to $500,000 in liabilities. Judge Tiffany P. Geyer oversees the case. Melissa A. Youngman, Esq., at Winter Park Estate Plans & ReOrgs: A Private Law Practice serves as the Debtor's counsel. CPV SHORE: Moody's Assigns 'Ba3' Rating to New Senior Secured Loans ------------------------------------------------------------------- Moody's Ratings assigned a Ba3 rating to the new CPV Shore Holdings, LLC ("CPV Shore" or the "Project") backed senior secured credit facilities, consisting of $325 million 7-year senior secured Term Loan B due January 2032, a $61 million 7-year senior secured Term Loan C due January 2032 and a $50 million 5-year senior secured revolving credit facility due January 2030. The outlook is stable. The new credit facilities will refinance the Project's existing Term Loan due 2025 which currently has approximately $361 million outstanding and will replace the existing $95 million senior secured revolving credit facility due 2025. Both facilities are rated B2. Upon the financial close of the new CPV Shore credit facilities and the subsequent repayment of the existing term loan, Moody's will withdraw the rating on the existing Term Loan due 2025 (Cusip: 12626DAG5) and the rating on the existing $95 million revolver due 2025. RATINGS RATIONALE The Ba3 rating assignment recognizes the lower debt quantum at CPV Shore following the refinancing of the existing $361 million term loan which meaningfully lowers the Project's leverage and improves its cash flow credit metric profile. To facilitate this refinancing, the Sponsors will provide an additional equity contribution of $80 million at financial close enabling the Project to refinance at a lower debt quantum, fund operating reserves of approximately $31.75 million and fund certain transaction related costs. Moody's view the additional equity contribution to the Project as credit positive. The Ba3 rating further considers the expected positive cash flow impact from improved power market fundamentals including substantially improved capacity prices. The Project is located within the capacity constrained EMAAC region of PJM which positions it to benefit from tightening capacity. While capacity prices in PJM had been depressed in recent years, the most recent 2025/2026 PJM Base Residual Auction (BRA) resulted in a significant shift in auction prices increasing the capacity price to $270 per MW-day from approximately $55 MW-day in the immediate prior auction for EMAAC and signaling a substantial shift in supply demand dynamics. The rating further considers expectations of improving market spark spreads that will enable the Project to generate better energy margins than historically achieved levels as reflected by the spark spread hedges entered for 2025 under CPV Shore's rolling spark spread hedging strategy. Taken as a whole, along with the lower debt quantum, the Ba3 rating factors in an expectation that CPV Shore's credit metrics will improve significantly relative to historical levels, with the Project's DSCR averaging approximately 2.1x, CFO to debt ratio averaging at approximately 13%, and the debt to EBITDA ratio averaging at approximately 5.6x during the initial 3 years after financial close based on various cash flow scenarios considered by Moody's and reflective of metrics consistent with a low Ba rating category. The Ba3 rating further recognizes CPV Shore's competitive operating profile due to its highly efficient General Electric (GE) 7FA combined-cycle turbine technology and demonstrating a heat rate consistently at or below 6,900 Btu/kWh. The plant has also demonstrated a sound operating track record with plant availability exceeding 90% and with an equivalent forced outage rate of less than 1% historically. These performance parameters have enabled the Project to be dispatched at average annual capacity factors between 55% to 65% in recent years and Moody's expect the Project to continue to operate at capacity factors within this range prospectively. The Project has a long-term Contractual Service Agreement (CSA) with GE which provides comfort that CPV Shore will continue to be well maintained and operate in a historically consistent manner. The Ba3 rating acknowledges the benefit of the Project's dual interconnection and access to both the Transco Zone 6 and TETCO M3 natural gas pipelines which provides the Project with greater supply certainty and price optionality. While this is a long-term benefit, the Project incurs relatively higher fixed operating costs relative to its peers given that the capital costs of these gas laterals were financed by the pipeline owners and the costs are being amortized through a term that extends beyond the financing of the Term Loans. That said, CPV Shore's risk profile reflects the Project's vulnerability to potential cash flow volatility as a single asset merchant power generator subject to market based power and natural gas prices. The Project has experienced significant volatility in energy margins over the last few years including in 2023 and 2024 owing in part to low spark spreads and weak capacity revenues due to historically low PJM BRA capacity prices. The Project's cash flows have also been adversely impacted by increasing emissions costs due to the Northeast Regional Greenhouse Gas Initiative (RGGI) cap and trade program. RGGI emissions prices have experienced a rapid increase over the past five years reflecting a compounded annual growth rate exceeding 6%, reaching $20/ton of CO2 in the most recently priced RGGI auction in December 2024. While Moody's anticipate the rate of RGGI price increases to slow due to additional renewable generation in eastern PJM, Moody's nonetheless anticipate RGGI prices to continue increasing given greater regional demand for power and as marginal gas fired units are dispatched more. As such, the Project's realized spark spreads are expected to be materially lower than comparable projects operating in non RGGI states within PJM such as projects located in Pennsylvania and Ohio. The credit profile additionally acknowledges the Project's adequate liquidity profile with the inclusion of a 6-month debt service reserve (DSR) which is expected to be fulfilled through a letter of credit issued under the Project's revolving credit facility. The overall liquidity profile also benefits from the operating reserve of $31.75 million which is funded at closing and is available to meet the Project's upcoming RGGI liability to be settled during the 2025 through 2027 period. The Project's liquidity further benefits from its $50 million revolving credit facility and the $61 million Term Loan C for the issuance of cash collateralized letters of credit in support of the Project's gas transportation contracts. Moody's further recognize that the collateral requirements for its power and gas hedges will be based on first lien collateral arrangement with counterparties. CPV Shore's credit profile further incorporates moderate refinancing risk for the new Term Loan B as Moody's estimate that about 50% of the initial $325 million face amount at the January 2032 maturity date will be repaid owing to the excess cash flow (ECF) sweep mechanism within the financing structure and based on the cash flow scenarios considered by us. The rating considers the Project's ownership by CPV, Osaka Gas and John Hancock and considers their long-term investment horizon along with the benefits of asset management and operational oversight provided by CPV, all of which is best evidenced by the $80 million of new equity capital provided to the Project in connection with the refinancing. RATING OUTLOOK CPV Shore's stable outlook reflects Moody's expectation that the Project's cash flows and credit metrics will improve in the coming years based on Moody's expectation that the PJM BRA capacity prices will remain elevated in the upcoming 2026/2027 and subsequent auctions thereby benefitting the project's cash flows. The stable outlook further anticipates improved market spark spreads as demonstrated by the hedges in place during the remainder of 2025 which provides a degree of downside protection for its energy margins and enable the Project to withstand increasing emissions related costs due to high RGGI prices. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Factors that could lead to an upgrade The rating could be upgraded if power market fundamental continue to remain robust in the coming years and the Project is able to demonstrate consistently higher credit metrics reflecting a DSCR in excess of 3.0x and a CFO to Debt ratio exceeding 20% on a sustained basis. Factors that could lead to a downgrade The rating could be pressured downward if CPV Shore faces deteriorating market spark spreads in combination with continued higher RGGI costs, and if capacity prices in the upcoming PJM BRA are significantly lower than expected resulting in weaker credit metrics, such that the Project's DSCR is below 1.8x and the CFO to debt ratio is below 10% on a consistent basis. PROFILE CPV Shore Holdings, LLC owns Woodbridge Energy Center (Woodbridge) which is a natural gas-fired, combined-cycle electric generating plant with a nominal capacity of 725 MW with 2 x 1 combined cycle power plant located in Woodbridge Township in Middlesex County, New Jersey, about 30 miles south of NYC. CPV Shore is owned by affiliates of CPV Power Holding, LP (CPV), Osaka Gas Co, Ltd, and John Hancock Life Insurance Company (John Hancock) (together, the Sponsors). The principal methodology used in these ratings was Power Generation Projects published in June 2023. CUCINA ANTICA: Seeks to Sell Business Assets to Highest Offer ------------------------------------------------------------- Cucina Antica Foods, Corp. seeks permission from the U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division, to sell substantially all of its assets, free and clear of liens, claims, and encumbrances. The Debtor is a family business that produces and sells high-quality, Italian tomatoes, pasta sauces, and other Italian food products. The Debtor was founded by Chef Aneillo Fusco, who was the Debtor's sole shareholder, President, and Secretary. Cucina's main office is in Dallas, Texas and it has some back-office operations in New York. Cucina sells its products in numerous grocery store chains throughout the United States including Whole Foods, Inc., Sprouts Farmers Market, Inc., Natural Grocers by Vitamin Cottage, Inc., and Albertson's. Prior to the bankruptcy filing, Cucina was facing diminishing profits and liquidity challenges due to rising production costs and shipping costs in the post-COVID world coupled with some retail contracts that capped Cucina’s ability to raise its prices to cover increased costs. Despite these challenges, Cucina produced a high-quality product that was in demand and enjoyed prominent shelf placement in major retail outlets. Unfortunately, Neil became ill with cancer and determined that a sale of Cucina would be in the best interest of the company. Although there were buyers interested in Cucina, no sale was consummated. On September 11, 2024, Neil passed away from complications of cancer, leaving his wife, Suzanne Fusco (Suzie), and his daughter. Neil left a valid written will appointing Suzie as the Independent Executrix of the Will, and the recipient of his Remaining Property, which includes 100% of the shares in Cucina, making Suzie its 100% shareholder. Since Neil's passing, Suzie has been running the company along with other members of the Fusco family. Suzie's main goal has been to continue to operate Cucina to preserve its value until a sale can be consummated. The Debtor actively marketed its assets prior to bankruptcy with the assistance of Crescendo Strategic Advisors, LLC's broker, Alejandro Cola. Alejandro Cola is the founder of CSA, where he advises food and beverage companies on capital raises, sell-side and buy-side transactions. Mr. Cola has decades of experience in international deals in the food industry. He is highly familiar with the Debtor's business, its principals, and its customers. Mr. Cola initiated the establishment of a Data Room and requested interested parties to execute a Non-Disclosure Agreement (NDA) while soliciting proposals. As a result of this process, the Debtor received two prospective offers, which have subsequently entered negotiations. The Debtor has concluded that the proposal presented by the proposed purchaser constitutes the highest and best offer for the Debtor's assets. However, the Debtor intends to continue to review offers for the Purchased Assets through the time of the Hearing and ultimately seek approval for whatever sale arrangement the Debtor believes, in its judgment, to be the highest and best offer, and the most favorable to the Debtor’s Estate and its creditors. The Debtor was indebted to Valley National Bank, as successor-in-interest to The Westchester Bank, as lender. The purchase price of the property is $1,600,000 in cash or other immediately available funds, plus royalties of 2.0% of net sales, generated and received on each fiscal year period following the Closing Date, not to exceed $2,500,000.00 in the aggregate, paid pursuant to the Royalty Agreement. The amount of $100.00 of the Cash Amount shall be independent consideration to be paid to Seller in exchange for Seller's agreement to enter into this Asset Purchase Agreement and shall be non-refundable to Buyer in all events. The Assets for sale are comprised of: a. the Intellectual Property; b. All Inventory, Work in Progress and all components of the same (i.e., packaging materials, ingredients, etc.); c. all purchase orders from customers for the purchase of Seller’s products; d. all Documents (other than Documents related to employees), including Documents relating to products, services, marketing and advertising, and all customer files, sales information and documents (including credit information), pricing information, supplier lists, and records, that are in Seller’s possession and related to the Purchased Assets; e. all Receivables of Seller; f. any warranties, guarantees and similar rights related to the Purchased Assets, including warranties and guarantees made by suppliers, manufacturers and contractors under the Purchased Assets, and claims against suppliers and other third parties in connection therewith. g. all rights to any Actions of any nature available to or being pursued by Seller to the extent related to the Business, the Purchased Assets or the Assumed Liabilities, whether arising by way of counterclaim or otherwise, but expressly excluding rights to Actions associated with the Excluded Liabilities and/or Excluded Assets and Actions that may arise under this Agreement or any document executed contemporaneously herewith or executed from and after the Effective Date; h. all prepaid expenses, credits, advance payments, claims, security, refunds, rights of recovery, rights of set-off, rights of recoupment, deposits, charges, sums and fees, excluding (any such item relating to the payment of Taxes); i. subject to Section 2.2 (i) of the Asset Purchase Agreement, all insurance benefits, including rights and proceeds, arising from or relating to the Business, the Purchased Assets or and the Assumed Liabilities; and j. all goodwill and the going concern value of the Business. The Debtor maintains that the costs of sale of the Purchased Assets, including fees, costs of document preparation and recordation, and other closing costs will be minimal, and, in a closing with Purchaser or its assignee, such costs would be covered by Purchaser in accordance with the terms of the Asset Purchase Agreement. About Cucina Antica Foods, Corp. Cucina Antica Foods Corp. is a manufacturer of pasta sauces and ketchup. Cucina Antica Foods Corp. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 24-34058) on December 13, 2024. In the petition filed by Suzanne Fusco, as authorized representative, the Debtor reports estimated assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. The Debtor is represented by Frances A. Smith, Es., at Ross, Smith & Binford, PC. DIOCESE OF ROCKVILLE: Jones Day Seeks $52-Mil. for Chapter 11 Case ------------------------------------------------------------------ Emlyn Cameron of Law360 Bankruptcy Authority reports that Jones Day has requested approval from a New York bankruptcy judge for nearly $3 million in fees and expenses for guiding a Roman Catholic diocese on Long Island, Rockville Centre Diocese, through its Chapter 11 proceedings since October 2024, bringing the firm's total bill for the case to approximately $52 million. About The Roman Catholic Diocese of Rockville Centre, New York The Roman Catholic Diocese of Rockville Centre, New York, is the seat of the Roman Catholic Church on Long Island. The Diocese has been under the leadership of Bishop John O. Barres since February 2017. The State of New York established the Diocese as a religious corporation in 1958. The Diocese is one of eight Catholic dioceses in New York, including the Archdiocese of New York. The Diocese's total Catholic population is approximately 1.4 million, roughly half of Long Island's total population of 3.0 million. The Diocese is the eighth largest diocese in the United States when measured by the number of baptized Catholics. To deal with sexual abuse claims, the Roman Catholic Diocese of Rockville Centre, New York, filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 20-12345) on Sept. 30, 2020, listing as much as $500 million in both assets and liabilities. Judge Martin Glenn oversees the case. The Diocese tapped Jones Day as legal counsel, Alvarez & Marsal North America, LLC, as restructuring advisor, and Sitrick and Company, Inc., as communications consultant. Epiq Corporate Restructuring, LLC is the claims agent. The U.S. Trustee for Region 2 appointed an official committee of unsecured creditors in the Diocese's Chapter 11 case. The coxmmittee tapped Pachulski Stang Ziehl & Jones, LLP and Ruskin Moscou Faltischek, PC as its bankruptcy counsel and special real estate counsel, respectively. Robert E. Gerber, the legal representative for future claimants of the Diocese, is represented by the law firm of Joseph Hage Aaronson, LLC. DOVGAL EXPRESS: Seeks Cash Collateral Access -------------------------------------------- Dovgal Express, Inc. asked the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, for authority to use its secured lenders' cash collateral. The company requires the use of cash collateral, including cash and cash equivalents to pay its operating expenses. Its projected budget shows total monthly expenses of $32,000. The lenders asserting interests in the cash collateral are 777 Equipment Finance LLC, Alliance Funding Group as servicer for Amur Equipment Finance Inc., Commercial Credit Group, Inc., Daimler Truck Financial Services, Equify Financial, M & T Equipment Finance Corp., Siemens Financial Services, Inc, Stride Bank, Trans Lease Inc, Transportation Alliance Bank, Inc., Webster Capital Finance, and Wells Fargo Equipment Finance, Inc. Dovgal proposed to provide the lenders with adequate protection in the form of a replacement post-petition lien on their collateral and the rental proceeds derived from the collateral. Dovgal was previously involved in transportation business shipping loads throughout the U.S. Due to the economic downturn in the trucking industry beginning in 2022 that resulted in higher fuel prices and lower rates per mile, Dovgal has pivoted to leasing trucks and trailers to other transportation companies, including lease to own equipment, to enable it to secure a steady stream of income through the lease of truck and trailers. A hearing on the matter is set for January 29. The lenders can be reached through: Steven W. Pasko Manager 777 Equipment Finance LLC 100 SE 2nd St., Suite 2000 Miami, FL 33131 Brij P. President Alliance Funding Group 17542 17th Street., Suite 200 Tustin, CA 92780 Kevin Bangston President Daimler Truck Financial Services 14372 Heritage Parkway, Suite 400 Fort Worth, TX 76177 Patrick Hoiby President Equify Financial 777 Main Street Suite 3900 Fort Worth, TX 76102 Arlene N Gelman, Esq. Vedder Price P.C. 222 North LaSalle Street26th Floor Chicago, IL 60601 agelman@vedderprice.com Attorney for Siemens Financial Services, Inc. Mark A. Bogdanowicz, Esq. Eric L. Johnson, Esq. Spencer Fane, LLP 1000 Walnut, Suite 1400 Kansas City, MO 64106 mbogdanowicz@spencerfane.com ejohnson@spencerfane.com Attorney for Stride Bank Tyler Heap President Transportation Alliance Bank, Inc. 4185 Harrison Blvd Ogden, UT 84403 ceo@tabbank.com Webster Capital Finance 200 Executive Blvd Mail SO Southington, CT 06489 About Dovgal Express Inc. Dovgal Express, Inc. is a transportation services provider specializing in dry van truckload, less-than-truckload, and refrigerated shipments. Dovgal Express sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-18991) on December 20, 2024, with $1 million to $10 million in assets and $10 million to $50 million in liabilities. Oleksandr Dovgal, president of Dovgal Express, signed the petition. Judge Timothy A. Barnes handles the case. The Debtor is represented by O. Allan Fridman, Esq., at the Law Office of Allan Fridman. EARTHSNAP INC: Claims to be Paid from Continued Operations ---------------------------------------------------------- EarthSnap Inc. and Eric Ralls filed with the U.S. Bankruptcy Court for the Eastern District of Texas a Consolidated Plan and Disclosure Statement dated January 16, 2025. The Debtors own an application for patent-pending processes focused on nature, the preservation of species, and the global environment. The patent application was filed but has not been approved or granted to date. However, now that the affiliate Earth.com, Inc. has funding from other affiliates as described herein, the process for completing the Patent has been renewed, and the development agreement is to remain on Amazon servers ("AWS"). The Debtors combined proposed plan with the related debtor is as follows: * Propose with the secured creditors regarding the Allowed Secured Claim as defined herein based on a contested motion for claim estimation heard prior to or with the hearing on the Confirmation. * Propose a plan where, if the claims estimates described herein are approved, the Allowed Secured claim is paid in full, with a plan for similar payment of 100% of allowed unsecured claims, assuming the Debtors get approval of the claim estimation. This Plan provides 100% payment to secured creditors per their terms or over a five-year period at 8% interest. The priority claims to the taxing authorities, if any, will also be paid in full on the Effective Date. They are estimated at $-0-. Unsecured creditors with claims of professional fees will be paid 100% of their claims in one single lump sum payment to be made within 180 days of the Effective Date. Other Unsecured Creditors will be paid pursuant to their terms or, in the absence of terms, 100% on terms provided to secured creditors. Class 6 consists of Unsecured Claims. The following unsecured claims will be paid its Allowed Unsecured Claim over five (years) in annual installments at 8% interest, unless otherwise specified treatment: * Provectus IT, Inc.; Claim 1-1 EarthSnap ($184,967.62) * Amazon Web Services, Inc.; Claim 2-1 EarthSnap ($267,441.81) * Google, LLC; Claim 3-1 EarthSnap ($205,365.00) * HI Investment, LLC; Estimated at $0-0 since the retention of interest in 14% of Debtors exceeds the Claim. Claim 6-1 EarthSnap ($1,248,000.00) and Claim 11-1 Eric ($1,248,000.00) * Discovery Bank; Claim 1-1 Eric Ralls $17,092.88) * American Express National Bank; Claim 2-1 Eric Ralls ($88,786.50) and Claim 3-1 Eric Ralls ($60,618.88) * JPMorgan Chase Bank, N.A. s/b/m/t Chase Bank USA, N.A.; Claim 4-1 Eric Ralls ($8,278.13) * Midland Credit Management, Inc.; Claim 7-1 Eric Ralls ($3,982.87) * Bank of America N.A.; and Claim 8-1 Eric Ralls ($14,730.79) * HI Investments, LLC; Claim 11-1 Eric Ralls ($1,248,000.00) Class 8 consists of General Unsecured Creditors (Scheduled but no POC). * Majestyk Contingent Disputed (EarthSnap Schedule Amount $54,500.00). To be amended and scheduled undisputed at $90,687.50. Paid on the same terms as Class 6. * Michael Melito (Eric Ralls Schedule Amount $26,620.50). Paid on the same terms as Class 6. Class 9 consists of Equity Interest of Eric Ralls and H1 Investment. This class consists of the holders of the of equity interest. These claims will be satisfied by the retention of this interest. This class is non-voting as insiders. Continued operations will generate revenue by which the Debtors will be able to make additional payments to creditors under the Plan in addition to the fixed payments made on the Effective Date. The Debtors do not intend to sell any additional capital assets to fund the Plan. With current business and anticipated future business, Debtors believe that they will be able to meet their financial obligations as set forth in this Plan. A full-text copy of the Consolidated Plan and Disclosure Statement dated January 16, 2025 is available at https://urlcurt.com/u?l=YdbmD5 from PacerMonitor.com at no charge. Counsel for the Debtors: Kevin S. Wiley, Sr., Esq. The Wiley Law Group, PLLC 325 N. St. Paul Street, Suite 2750 Dallas, TX 75201 Telephone: (214) 537-9572 Facsimile: (972) 449-5717 Email: kevin.wileysr@tx.rr.com kwiley@lkswjr.com About EarthSnap Inc. EarthSnap Inc. is an Android developer. EarthSnap Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Tex. Case No. 24-60363) on June 17, 2024. In the petition signed by Eric Ralls, as CEO, the Debtor reports estimated assets between $1 million and $10 million and estimated liabilities between $500,000 and $1 million. The Debtor is represented by Kevin S. Wiley, Sr., Esq. at WILEY LAW GROUP, PLLC. ECUO FOODS: Seeks Chapter 11 Bankruptcy Protection in New York -------------------------------------------------------------- On January 17, 2025, ECUO Foods Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern District of New York. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About ECUO Foods Inc. ECUO Foods Inc. doing business as Tropical Restaurant, founded in 1996 specializes in authentic Latin cuisine with a focus on Ecuadorian dishes. With a rich heritage of tradition and culture, the company offers indoor and outdoor seating, as well as takeaway and delivery services. Originally established in Woodhaven, Queens, the restaurant has expanded to five locations throughout Queens, bringing the flavors of Ecuador to local communities. ECUO Foods Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No.: 25-40252) on January 17, 2025. In its petition, the Debtor reports estimated assets between $500,000 and $1 million and estimated liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Jil Mazer-Marino handles the case. The Debtor is represented by: Damond Carter, Esq. (Interim Of-Counsel) P.I. Legal Group, Inc. by Interim Of-Counsel 411 Theordore Fremd Avenue Rye NY 10580 Tel: (888) 949-5572 Email: casecorrespondenceunit@publicinterestlegalgroup.com EL DORADO: To Sell Lots 4001-4030 in Auction -------------------------------------------- Dawn Ragan, the duly appointed Trustee for the bankruptcy estates of debtors Hugoton Operating Company Inc. and El Dorado Gas & Oil Inc., Independent Manager of Bluestone Natural Resources II, and Independent Director of World Aircraft Inc., seeks approval from the U.S. Bankruptcy Court for the Southern District of Mississippi to sell Equipment in an auction, free and clear of liens, claims, rights, encumbrances, and other interests. The Equipment up for sale are Lots 4001-4030 located at 1085 Hwy. 80, Jackson, Mississippi. The Trustee has undertaken efforts to locate, identify and secure property of the Debtors and has identified extensive amounts of equipment, machinery and other personal property owned by the Debtors and stored and housed in over 37 different locations across several states and Canada. The equipment and machinery are stored and stacked up in yards in such a way that it is nearly impossible to safely access and inventory all equipment without first selling and removing accessible personal property stacked in front of each lot. The Trustee retains Tiger Capital Group, LLC to assist with the process of inventorying, cataloguing, and, where appropriate, selling each item of equipment. The Trustee says that the proposed sale terms and procedures will facilitate an orderly and efficient sale of the Equipment. The Equipment has value that can be realized through sale by auction, and equally as important, the estates are incurring administrative expenses to preserve and maintain the Equipment. The Trustee proposes that the sales will be conducted by auction in accordance with the Auction Sale Terms and subject to the Court’s approval, the auction will be conducted virtually on or after February 20, 2025 10:00 a.m. (Central Time). The Trustee asserts that the estates are incurring costly administrative expenses for the storage, maintenance, and/or insurance of personal property, including the Equipment, in multiple locations across several states, that are not needed for operations. The Trustee seeks approval of certain marketing and sale procedures to facilitate the auction of the Equipment. The auction will also be advertised online and in print. Tiger Capital intends to publish notice on its website, electronic mail distribution lists, and print and regular mail campaigns. In addition, Tiger Capital has advised the Trustee that it will send direct mailings to targeted recipients, engage in telemarketing campaigns, and engage a public relations company to assist with the promotion of the auction. The Equipment will be sold "as is", "where is", without any representations of any kind or nature whatsoever, including as to merchantability or fitness for a particular purpose, and without warranty or agreement as to the condition of such personal property. In order to provide notice in connection with the results of the auction, Tiger Capital will assist the Trustee in preparing and filing a Sale Report with the Court, which will provide a summary of all Equipment sold, the purchaser, price received, commission and expenses paid, and any remaining sale proceeds that have not yet been transferred to the Trustee’s bank account and remain in the Wells Fargo bank account. The sales reports shall also identify any Equipment sold via private sale and the identity of the purchaser, purchase price, and date of sale. The chapter 11 trustee for Escambia Operating Company, LLC, Escambia Asset Company, LLC, and Blue Diamond Energy, Inc., has asserted an interest in certain property and/or proceeds as a result of Escambia monies used to acquire certain assets in whole or in part in the name of World Aircraft and/or El Dorado, and an order entered in the bankruptcy case of Blue Diamond Energy, Inc., in connection with the appointment of a chapter 11 trustee. About El Dorado Dorado Gas & Oil Inc. Hugoton and El Dorado are both Arkansas corporations engaged in the exploration, production, and development of crude oil and natural gas properties. El Dorado is a lease holder and operator of oil and gas wells covering about 4,000 net acres in South Texas. El Dorado also owns a substantial amount of oil field equipment and owns real estate in multiple locations and states. Hugoton also owns oil and gas interests and operates wells in South Texas. Hugoton Operating Company, Inc. filed a voluntary Chapter 11 petition (Bankr. S.D. Miss. Case No. 23-51139) on Aug. 14, 2023. El Dorado Gas & Oil, Inc., a company in Gulfport, Miss., filed Chapter 11 petition (Bankr. S.D. Miss. Case No. 23-51715) on Dec. 22, 2023, with $500 million to $1 billion in assets and $50 million to $100 million in liabilities. Thomas L. Swarek, president, signed the petition. Judge Jamie A. Wilson oversees the cases. Patrick Sheehan, Esq., at Sheehan & Ramsey, PLLC, is counsel to Debtor Bluestone Natural Resources II-South Texas, LLC and World Aircraft, Inc. R.Michael Bolen, Esq., at Hood & Bolen, PLLC; and Nancy Ribaudo, Esq., Katherine Hopkins, Esq., and Joseph Austin, Esq., at Kelly Hart & Hallman LLP, serve as counsel to Dawn Ragan, Chapter 11 Trustee for El Dorado Gas & Oil, Inc. and Hugoton Operating Company, Inc. ENVIROSCENT INC: Gets Final OK to Use Cash Collateral ----------------------------------------------------- Enviroscent, Inc. received final approval from the U.S. Bankruptcy Court for the Northern District of Georgia, Atlanta Division to use cash collateral. The company requires the use of cash collateral to pay its employees and its other operating expenses. First Corporate Solutions and Alterna Capital Solutions, LLC were granted security interest in, and liens on, all post-petition assets of Enviroscent to the same extent and with the same validity as their pre-bankruptcy liens. The replacement liens and security interests granted exclude all claims and causes of action. The use of cash collateral provisions in the final order remain in effect until 11:59 p.m. EDT on March 31 or as extended by the court or by consent of the concerned parties. About Enviroscent Inc. Enviroscent, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-62804) on December 3, 2024, with $10 million to $50 million in assets and $1 million to $10 million in liabilities. Kevin Coen, chief executive officer of Enviroscent, signed the petition. Judge Jeffery W. Cavender oversees the case. The Debtor is represented by: Cameron M. McCord, Esq. Jones & Walden, LLC Tel: 404-564-9300 Email: cmccord@joneswalden.com ENVIROSCENT INC: Seeks to Sell Business Assets in Auction --------------------------------------------------------- Enviroscent, Inc. seeks approval from the U.S. Bankruptcy Court for the Norther District of Georgia, Atlanta Division, to sell substantially all of its Assets, free and clear of all liens, claims, interests, or other encumbrances. The Debtor's Assets up for sell comprised of its going-concern business, unexpired leases, executory contracts, equipment, inventory, supplies, intellectual property, insurance proceeds, prepaid expenses and deposits, and books and records, in each case. The Debtor employs investment banker Cassel Salpeter & Co., LLC to assist it in implementing formal marketing and sale process that will allow the Debtor to fulfill its fiduciary duties and explore restructuring and sale options. The Debtor expects to launch a third-party marketing process in the coming weeks to solicit proposals for one or more potential sales of all, substantially all, or any portion of the Debtor's assets. The Debtor proposes a bidding procedure to preserve the value of the Debtor’s estate -- and to offer the Debtor a chance to increase the ultimate value provided by the monetization and disposition of its Assets. The following is the proposed timeline of the sale transaction: -- Notice of Contract Assumption on February 17, 2025 -- Stalking Horse Deadline on February 28, 2025, at 4:00 p.m. prevailing Eastern Time. -- Bid Deadline on March 11, 2025, at 4:00 p.m., prevailing Eastern Time. -- Auction on March 12, 2025, at 10:00 a.m. prevailing Eastern Time, if any. -- Sale Hearing on March 20, 2025, or as soon thereafter the Debtor may be heard. The Debtor believes that the relief sought by the Motion appropriately balances the need to provide all parties in-interest with notice and due process, affords the Debtor sufficient time to generate interest in any or all of the Assets, and provides the Debtor with an expeditious process commensurate with the Debtor’s liquidity constraints, prepetition processes. The Auction will be held on March 14, 2025, at 10:00 a.m., prevailing Eastern Time (or such other date as selected by the Debtor), at the offices of the counsel to the Debtor: Jones & Walden LLC, 699 Piedmont Ave NE Atlanta, Georgia 30308, or such other location as may be communicated to the relevant participants. The Debtor asserts that the allowance of the Bid protections is in the best interests of the Debtor’s estate and its creditors, as a Stalking Horse Bidder, if designated, will establish a floor for further bidding that may increase the consideration given in exchange for the Assets for the benefit of the Debtor’s estate. About Enviroscent, Inc. Enviroscent, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-62804) on December 3, 2024. In the petition signed by Kevin Coen, chief executive officer, the Debtor disclosed up to $50 million in assets and up to $10 million in liabilities. Judge Jeffery W. Cavender oversees the case. Cameron M. McCord, Esq., at Jones and Walden LLC, represents the Debtor as legal counsel. ENVIROSCENT INC: Taps Cassel Salpeter & Co. as Investment Banker ---------------------------------------------------------------- Enviroscent, Inc. seeks approval from the U.S. Bankruptcy Court for the Northern District of Georgia to employ Cassel Salpeter & Co., LLC as investment banker. The firm will render these services: (a) review and analyze the Debtor's business, operations, and financial projections; (b) attend meetings of the Debtor's Board of Directors with respect to matters on which we have been engaged to advise hereunder; (c) provide testimony, as necessary, with respect to matters on which we have been engaged to advise hereunder in any proceeding before the Bankruptcy Court; (d) assist in the preparation of materials, describing the Debtor's industry, business strategy, business and management, and incorporating current financial and other appropriate information furnished by it; (e) assist the Debtor in identifying and evaluating candidates for any potential sale transaction; (f) coordinate and assist the management of the Debtor in preparing for and hosting management presentations, as well as conference and diligence calls; (g) evaluate transaction proposals and providing the Debtor management with guidance on transaction valuation and structure and terms; (h) advise with regards to possible affiliations with strategic operators; (i) advise with regards to divestitures of non-strategic assets, as appropriate; (j) oversee an auction for the sale of assets, as needed; (k) advise the Debtor on tactics and strategies for negotiations with the stakeholders; (l) render financial advice to the Debtor and participate in meetings or negotiations with the stakeholders and/or other appropriate parties in connection with any restructuring; (m) assist the Debtor in developing a comprehensive financial restructuring program and plan of reorganization; (n) advise the Debtor on the timing, nature, and terms of new securities, other consideration or other inducements to be offered pursuant to any restructuring; and (o) assist the Debtor in preparing documentation within our area of expertise that is required in connection with any restructuring. The firm will be paid at these fees: (a) monthly fee of $50,000 for each of the first three months; and (b) sale transaction fee of equal to greater of $300,000 or 6 percent of the sale consideration. In addition, the firm will seek reimbursement for expenses incurred. Philip Cassel, Esq., a managing partner at Cassel Salpeter & Co., 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: Philip Cassel Cassel Salpeter & Co., LLC 801 Brickell Ave. Miami, FL 33131 Telephone: (30) 438-7700 About Enviroscent Inc. Enviroscent, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-62804) on December 3, 2024. In the petition signed by Kevin Coen, chief executive officer, the Debtor disclosed up to $50 million in assets and up to $10 million in liabilities. Judge Jeffery W. Cavender oversees the case. The Debtor tapped Cameron M. McCord, Esq., at Jones and Walden LLC as counsel and Philip Cassel at Cassel Salpeter & Co., LLC as investment banker. FEENEY ENTERPRISES: Commences Subchapter V Bankruptcy in Florida ---------------------------------------------------------------- On January 21, 2025, Feeney Enterprises Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Florida. According to court filing, the Debtor reports between $500,000 and $1 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Feeney Enterprises Inc. Feeney Enterprises Inc. operating under trade names including Cabinet Maker Warehouse, Feeney Supply, and Bevel-Edge, is a Stuart, Florida-based cabinet and supply distributor. Feeney Enterprises Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-10570) on January 21, 2025. In its petition, the Debtor reports estimated assets between $100,000 and $500,000 and estimated liabilities between $500,000 and $1 million. Honorable Bankruptcy Judge Mindy A. Mora handles the case. The Debtor is represented by: Brian K. McMahon, Esq. 1401 Forum Way., Ste. 730 West Palm Beach, FL 33401 Phone: 561-296-3965 FIREPAK INC: Seeks to Tap Citrin Cooperman Advisors as Accountant ----------------------------------------------------------------- FirePak Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of Florida to employ Citrin Cooperman Advisors LLC as accountant. The accountant will provide these services: (a) prepare estate tax returns; and (b) render such other assistance in the nature of tax and accounting services as the Debtor may deem necessary. The firm will be paid at these hourly rates: Partners $565 - $720 Manager $340 Senior Accountant $255 Staff Accountant $225 In addition, the firm will seek reimbursement for expenses incurred. Carlos Farah, a certified public accountant at Citrin Cooperman Advisors, 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: Carlos M. Farah, CPA Citrin Cooperman Advisors LLC 6550 N. Federal Highway 4th Floor Fort Lauderdale, FL 33308 Telephone: (954) 771-0896 About Firepak Inc. Firepak Inc. specializes in the design and layout of fire sprinkler systems, modifications to existing fire sprinkler systems, new installations, tenant build outs, retrofit of existing buildings, and inspections and repairs of all types of fire sprinkler systems. Firepak sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-21725) on November 7, 2024, with total assets of $1,454,421 and total liabilities of $2,424,737. Linda Leali, Esq., serves as Subchapter V trustee. Judge Robert A. Mark handles the case. The Debtor tapped Lydecker LLP as counsel and Citrin Cooperman Advisors LLC as accountant. FIRST MODE: Feb. 6, 2025 Claims Filing Deadline Set --------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware set Feb. 6, 2025, as deadline for creditors to file proofs of claim against First Mode Holdings Inc. and its debtor-affiliate. The Court set June 13, 2025, as last date for all governmental units to file their claims against the Debtors. All claimants must submit (by overnight mail, courier service, hand delivery, regular mail, in person, or electronically through the online proof of claim form available at https://omniagentsolutions.com/FirstMode-Claims an original, written proof of claim that substantially confirms to the proof of claim form so as to be actually received by Omni on or before the applicable bar date at: First Mode Holdings Inc. Claims Processing Center c/o Omni Agent Solutions Inc. 5955 De Soto Avenue, Suite 100 Woodland Hills, CA 91367 Each proof of claim must be clearly identify the Debtor against which a claim is asserted, including the individual Debtor's case number. A proof of claim filed under the proposed joint administration case number 24-12794, or otherwise without identifying a specific Debtor, will be deemed as filed only against First Mode Holdings Inc. Proofs of claim sent by facsimile or electronic mail will not be accepted. About First Mode Holdings First Mode Holdings, Inc. is a multinational decarbonization company that designs, manufactures, and distributes hybrid battery systems and hydrogen fuel cell technologies for heavy duty mining and rail vehicles, along with hydrogen refueling equipment. First Mode Holdings, Inc. and Synchronous LLC filed for voluntary petitions under Chapter 11 of the Bankruptcy Code (Bankr. D. Del., Lead Case No. 24-12794) on December 15, 2024. In their petitions signed by Colin Mark Freed as chief financial officer, the Debtors reported consolidated assets of $10 million to $50 million and consolidated liabilities of $50 million to $100 million. The Hon. Judge Karen B. Owens oversees the cases. The Debtors tapped Young Conaway Stargatt & Taylor, LLP, as bankruptcy counsel and Latham & Watkins LLP as bankruptcy co-counsel. PJT Partners serves as investment banker to the Debtors, while M3 Partners LP acts as financial advisor. Omni Agent Solutions Inc is the claims and noticing agent for the Debtors. The U.S. Trustee for Region 3 appointed an official committee to represent unsecured creditors in the Chapter 11 cases of First Mode Holdings, Inc. and Synchronous, LLC. FLEET SERVICES: Unsecureds Will Get 5% of Claims over 60 Months --------------------------------------------------------------- Fleet Services Group, LLC filed with the U.S. Bankruptcy Court for the Central District of California a Plan of Reorganization for Small Business dated January 16, 2025. The Debtor was formed in 2014. The Debtor is in the business of providing repair and maintenance services for commercial vehicles, including regular oi change, engine replacement on diesel trucks/big ricks, and other commercial use vehicles and trailers. This Plan of Reorganization proposes to pay creditors of the Debtor from business operation. The final plan payment is expected to be paid on April 1, 2030 (estimated). Non-priority unsecured creditors holding allowed claims will receive distributions, which the proponent of this Plan has valued at approximately 5 cents on the dollar. This Plan also provides for the payment of administrative and priority claims. Class 3 includes the general unsecured claims. The total amount of the allowed general unsecured claims is $935,175.93 and includes the fully and partially undersecured portion of claims. Based on the liquidation analysis and the income valuation of the Debtor's assets, the holders of allowed general unsecured claims in Class 3 will receive an estimated 5% pro-rata distribution through the Plan. The distribution to allowed general unsecured claims in Class 3 will be made monthly over 60 months, with the first payment of $779.31 due on the effective date, followed by 59 consecutive payments, each in the amount of $779.31 to be paid pro-rata to each holder of allowed general unsecured claim. This Class is impaired. The equity security holder of the Debtor is Janelle Juarez. Ms. Juarez is the managing member and a 100% equity security holder of the Debtor. She will retain her 100% equity interest in the Debtor. The Debtor intends to fund its Plan from the continued operation of its business. The Debtor's proposed 5-year projections itemize the Debtor's revenue source and the expenses for the next 5 years. The Debtor's projections were prepared by carefully analyzing the historical income and expenses, the Debtor's performance during the present case, and the prospective income and expenses, with the recent changes made to its business operations. August 2024, the Debtor reduced the number of employees from 22 to 10. Since the petition date, the Debtor relocated to a more affordable business location and reduced its monthly rental expense. It is also actively working on new customer development and solicitation. The Debtor is optimistic that by making these business changes, it will be able to increase its cash flow and generate the funds necessary to meet its obligations to the creditors under this Plan. A full-text copy of the Plan of Reorganization dated January 16, 2025 is available at https://urlcurt.com/u?l=E9vdNS from PacerMonitor.com at no charge. Counsel to the Debtor: Michael Jay Berger, Esq. Sofya Davtyan, Esq. Law Offices of Michael Jay Berger 9454 Wilshire Blvd. 6th Floor Beverly Hills, CA 90212-2929 Tel: (310) 271-6223 Fax: (310) 271-9805 Email: Michael.Berger@bankruptcypower.com Sofya.Davtyan@bankruptcypower.com About Fleet Services Group Fleet Services Group, LLC is a diesel repair shop that provides fleet maintenance and repair services for light, medium, and heavy-duty fleets. With services ranging from engine repair to custom welding and fabrication, Fleet Services Group has the means and expertise to successfully perform a wide array of repair and maintenance services. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Calid. Case No. 24-18551) on October 18, 2024. In the petition signed by Janelle Juarez, managing member, the Debtor disclosed $179,140 in assets and $1,098,325 in liabilities. Judge Deborah J. Saltzman oversees the case. Michael Jay Berger, Esq., at the Law Offices of Michael Jay Berger, represents the Debtor as bankruptcy counsel. FLUENT INC: Board Appoints James Geygan as Director --------------------------------------------------- Fluent, Inc. filed a Form 8-K filed with the Securities and Exchange Commission, disclosing that on Jan. 17, 2025, the Board of Directors of the Company increased the size of the Board from six to seven members, and appointed James P. ("JP") Geygan to fill the resulting vacancy. Mr. Geygan will serve on the Board as an independent director until the Company's next annual meeting of stockholders or until his successor has been duly elected and qualified, or until his earlier resignation, removal or death. Mr. Geygan, age 36, has served as interim chief executive officer and president of Global Value Investment Corporation, an investment firm specializing in disciplined, value-oriented investing and significant stockholder of the Company, since May 2024. He previously served as chief operating officer and senior vice president of GVIC from December 2021 to May 2024 and vice president of GVIC from May 2017 to December 2021. Since joining GVIC, GVIC's assets under management have grown from $84 million as of Dec. 31, 2016 to $194 million as of Dec. 31, 2024. In addition to the foregoing, Mr. Geygan has served as a member of the Board of Directors of GVIC since February 2023, and one of its wholly-owned subsidiaries, GVRC India Private Limited, since September 2019. He received a Bachelor of Science in political science from the University of Wisconsin, Madison. The Company believes that Mr. Geygan is qualified to serve on the Board due to his public company corporate governance and capital markets experience. In connection with his service as a director, Mr. Geygan will receive (i) a cash fee of $10,000 per quarter and (ii) 10,000 restricted stock units ("RSUs"), which RSUs will vest in three equal annual installments beginning on the first anniversary of the grant date, subject to accelerated vesting in certain circumstances. Mr. Geygan will be eligible to receive additional RSUs with a grant date value equal to $75,000 on the date of each annual stockholder meeting of the Company, beginning with the next Annual Meeting. Additionally, the Company entered into an indemnification agreement with Mr. Geygan providing for the advancement of expenses and indemnification of Mr. Geygan to the fullest extent permissible under Delaware General Corporation Law. About Fluent Inc. Fluent, Inc. -- https://www.fluentco.com -- is a digital marketing services company specializing in customer acquisition. The Company operates highly scalable digital marketing campaigns that connect advertiser clients with their target consumers. The Company's services leverage both its owned and operated digital media properties and auxiliary syndicated performance marketplace products. In 2023, the Company delivered data-driven, performance-based customer acquisition services for over 500 consumer brands, direct marketers, and agencies across various industries, including Media & Entertainment, Financial Products & Services, Health & Life Sciences, Retail & Consumer, and Staffing & Recruitment. Fluent said in its Quarterly Report on Form 10-Q for the period ended Sept. 30, 2024, that "Based on current projections, the Company expects to be in compliance with the new financial covenants for each of the quarters in the twelve months following the issuance date of this Quarterly Report on Form 10-Q. However, the Company has not met its projections for certain recent quarters, so there can be no assurance that the Company will meet its projections in the future. If during any fiscal quarter, the Credit Parties do not comply with any of their financial covenants, such non-compliance would result in an event of default that would give SLR the right to accelerate maturities. Additionally, if the Company fails to raise capital in at least the amount required under the Third Amendment by November 29, 2024, such failure would also result in an event of default. In such case, the Company would not have sufficient funds to repay the SLR Term Loan ... and the SLR Revolver...In addition, even if the Company is able to raise additional capital as required by the Third Amendment, there is no assurance that such capital plus the available cash plus borrowing base on the SLR Revolver will be sufficient to fund operations over the next twelve months. If needed, the Company will consider implementing other cost-saving measures, but there is no guarantee that such plans would be successfully executed or have the expected benefits. As a result, management concluded that there is substantial doubt about the Company's ability to continue as a going concern for one year after the date of this Quarterly Report on Form 10-Q." FRANCHISE GROUP: Sells Portion of Chain to Former Execs for $1.12MM ------------------------------------------------------------------- Steven Church of Bloomberg News reports that the former executives of Franchise Group Inc. secured court approval to purchase a group of furniture stores from the bankrupt brand manager after a judge dismissed objections to the sale. According to Bloomberg News, U.S. Bankruptcy Judge Laurie Silverstein ruled that there was nothing inappropriate about the involvement of Michael S. Piper and Brent Turner, former top officers of Franchise Group's Liberty Tax Service unit. Piper and Turner, along with other investors, paid $1.12 million for approximately 30 American Freight stores. They had already closed on several stores and appeared in court Tuesday, January 21, 2025, to seek approval for the purchase of the remaining locations, the report states. About Franchise Group Inc. Franchise Group, Inc., through its subsidiaries, operates franchised and franchisable businesses including The Vitamin Shoppe, Pet Supplies Plus, LLC, Badcock Home Furniture & More, American Freight, Buddy's Home Furnishings and Sylvan Learning Systems, Inc. Franchise Group, Inc. and its affiliates filed their voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-12480) on Nov. 3, 2024, listing $1,000,000,001 to $10 billion in both assets and liabilities. The petitions were signed by David Orlofsky as chief restructuring officer. Willkie Farr & Gallagher LLP and Young Conaway Stargatt & Taylor, LLP are serving as legal counsel, AlixPartners is serving as financial advisor and Chief Restructuring Officer, and Ducera Partners is serving as investment banker to the Company. Paul Hastings LLP is serving as legal counsel and Lazard is serving as investment banker to the first lien ad hoc group. GLASS MANAGEMENT: Plan Exclusivity Period Extended to April 14 -------------------------------------------------------------- Judge Janet S. Baer of the U.S. Bankruptcy Court for the Northern District of Illinois extended Glass Management Services, Inc.'s exclusive periods to file a plan of reorganization and obtain acceptance thereof to April 14 and June 13, 2025, respectively. As shared by Troubled Company Reporter, the Debtor claims that cause exists to extend the Exclusivity Periods, as requested by Debtor in this case. Debtor is working diligently to comply with the chapter 11 operating and filing requirements and to formulate a reorganization plan. The Debtor explains that it requires accurate and complete information regarding the claims of creditors in this case, and has therefore filed a motion for the fixing of a bar date for claims so that the number and amount of claims to be dealt with in the plan may be determined. The Debtor has requested that the Court fix the bar date as March 24, 2025. Glass Management Services, Inc. is represented by: David P Leibowitz, Esq. Leibowitz Hiltz & Zanzig, LLC 53 West Jackson Blvd., Suite 1301 Chicago, IL 60604 Telephone: (312) 566-9008 Email: dleibowitz@lodpl.com About Glass Management Glass Management Services, Inc. is a construction contractor based in Illinois, specializing in glazing services. Established with a focus on high-profile projects, the company has been involved in significant developments, including the Obama Presidential Library, Terminal 5 at O'Hare Airport, and multiple Chicago Public Schools and CTA transit stations. Glass Management Services sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-14036) with $3,029,997 in assets and $11,989,444 in liabilities. Ernest B. Edwards, president of Glass Management Services, signed the petition. Hon. Janet S. Baer presides the case. David P. Leibowitz, Esq., at Leibowitz, Hiltz & Zanzig, LLC represents the Debtor as legal counsel. GRADE A HOME: Court Denies Bid to Use Cash Collateral ----------------------------------------------------- Grade A Home, LLC failed to get approval from the U.S. Bankruptcy Court for the Southern District of Texas to use the cash collateral of its lenders to pay its operating expenses. At the hearing held on Jan. 21, the court denied the company's motion to use the cash collateral of Toorak Capital Partners, LLC and taxing authorities and grant these lenders replacement liens on its assets as adequate protection. About Grade A Home Grade A Home, LLC, a Houston-based company, filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-35197) on November 4, 2024, with $1 million to $10 million in assets and $500,000 to $1 million in liabilities. Sharif Muhammad, authorized representative of the Debtor, signed the petition. Judge Eduardo V. Rodriguez presides over the case. Reese Baker, Esq., at Baker & Associates represents the Debtor as legal counsel and Kenny Laguerre as accountant. GRESHAM WORLDWIDE: Court Extends Use of Cash Collateral to Feb. 28 ------------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Arizona extended Gresham Worldwide, Inc.'s authority to use cash collateral from Jan. 17 to Feb. 28. The court ordered the company to pay $60,000 to Arena Investors, LP by Feb. 7 as provided in the budget. The replacement liens granted to Arena and Ault Lending remain in full force and effect. About Gresham Worldwide Gresham Worldwide, Inc. designs, manufactures, and distributes purpose-built electronics equipment, automated test solutions, power electronics, supply and distribution solutions, as well as radio, microwave, and millimeter wave communication systems and components for a variety of applications with a focus on the global defense industry and the healthcare market. Gresham Worldwide sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 24-06732) on Aug. 14, 2024. In the petition filed by Lutz P. Henckels, chief financial officer, the Debtor disclosed $32,859,000 in assets and $39,786,000 in liabilities as of June 30, 2024. Judge Scott H. Gan oversees the case. Patrick A. Clisham, Esq., at Engelman Berger, PC serves as the Debtor's legal counsel. The U.S. Trustee appointed an official committee of unsecured creditors in this Chapter 11 case. The committee tapped Stinson, LLP as legal counsel. GRITSTONE BIO: $1.7M Unsecured Claims to Recover 20% in Plan ------------------------------------------------------------ Gritstone Bio, Inc., filed with the U.S. Bankruptcy Court for the District of Delaware a Disclosure Statement with respect to Chapter 11 Plan of Reorganization dated January 16, 2025. Prior to the Petition Date, Gritstone was a clinical-stage biotechnology company that aimed to develop potent vaccines for oncology and infectious diseases. The Company was founded in August 2015, headquartered in Emeryville, California, with an additional location in Massachusetts and a manufacturing facility in Pleasanton, California. Gritstone, along with its collaborators such as BARDA, CEPI, the Gates Foundation, Gilead Sciences, Inc., and the National Cancer Institute, advanced a portfolio of product candidates to treat and prevent viral diseases and solid tumors, specifically through developing and commercializing vaccines for oncology and infectious diseases. On November 14, 2024, the Bankruptcy Court entered an order approving certain bidding, auction and related procedures. At the Auction, Seattle Project Corp. ("SPC") was chosen as the successful bidder for substantially all of the Debtor's assets excluding the Binder IP, the Hercules Assets, and certain other assets (the "SPC Assets"), based on SPC's final bid of $21.25 million (subject to the terms of the parties' Asset Purchase Agreement). The sale of the SPC Asset closed on December 30, 2024. Also at the Auction, Hercules Capital, Inc., as agent was chosen by the Debtors as the successful bidder for the Debtors' machinery and equipment (the "Hercules Assets") in the form of a credit bid in the amount of $3 million. After the Sale Hearing, the sale of the Hercules Assets (the "Hercules Sale") to Hercules was approved by the Court pursuant to an order entered on December 20, 2024. The sale of the Hercules Assets closed on December 27, 2024. Finally, at the Auction, the Debtor designated Future Solutions Investments, LLC ("FSI"), the DIP Agent (on behalf of itself and the DIP Lenders), as the successful bidder for certain of the Debtor's intellectual property (the "Binder IP"), in the form of a credit bid in the amount of $1.5 million. The Court entered an order on December 20, 2024 approving the selection of the successful bid subject to confirmation and consummation of the Plan. Class 5 comprises the Allowed General Unsecured Claims; for the avoidance of doubt, the Prepetition Lenders' Deficiency Claim is a General Unsecured Claim. Each Holder of an Allowed Class 5 Claim shall receive, in full and final satisfaction of such Allowed Claim subject to the Holder's timely election to receive Convenience Claim treatment in Class 6 on account of the Allowed Unsecured Claim in accordance with the procedures set forth in the Disclosure Statement Order, 100% of the Liquidating Trust Interests on a Pro Rata basis. The allowed unsecured claims total $33,000,000. Class 5 is Impaired. Class 6 comprises the Allowed Convenience Claims. Each Holder of an Allowed Class 6 Claim shall receive, in full and final satisfaction of such Allowed Claim, up to 20% of the Allowed amount of such Claim (capped at the Pro Rata share of the Convenience Claims Cap), in Cash on the later of fifteen (15) days following (i) the Effective Date or (ii) the date such Claim becomes an Allowed Claim, unless the Debtor or Reorganized Debtor and the Holder of a Class 6 Claim otherwise agree; provided, however, that the aggregate amount that may be distributed on account of all Allowed Convenience Claims shall not exceed the Convenience Claims Cap. The allowed unsecured claims total $1,700,000. Class 6 is Impaired. Class 8 comprises the Equity Interests. As of the Effective Date, any and all Equity Interests are cancelled and deemed discharged without any further notice or order. No distributions shall be made under the Plan on account of any Equity Interest. On the Effective Date, the Debtor and the Liquidating Trustee, on their own behalf and on behalf of Holders of Allowed Claims in Classes 5 and 6, shall execute the Liquidating Trust Agreement and shall take all other steps necessary to establish the Liquidating Trust for the benefit of the Liquidating Trust Beneficiaries in accordance with the Plan. The Liquidating Trust will issue a single class of Liquidating Trust Interests. The Liquidating Trust will be irrevocably vested with the (i) Trust Funding Amount, (ii) Vested Causes of Action, and proceeds thereof and (iii) Trust Initial Distribution. A full-text copy of the Disclosure Statement dated January 16, 2025 is available at https://urlcurt.com/u?l=l2le4S from PacerMonitor.com at no charge. Counsel to the Debtor: PACHULSKI STANG ZIEHL & JONES LLP Debra I. Grassgreen, Esq. John W. Lucas, Esq. Malhar S. Pagay, Esq. James E. O’Neill, Esq. 919 North Market Street, 17th Floor P.O. Box 8750 Wilmington, Delaware 19899-8705 Tel: 302-652-4100 Fax: 302-652-4400 Email: dgrassgreen@pszjlaw.com jlucas@pszjlaw.com mpagay@pszjlaw.com joneill@pszjlaw.com About Gritstone bio Inc. Gritstone bio is developing next-generation vaccines for cancer and infectious disease. Gritstone's approach seeks to generate potent and durable immune responses by leveraging insights into the immune system's ability to recognize and destroy diseased ells by targeting select antigens. Gritstone bio Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 24-12305) on October 10, 2024. In the petition filed by Celia Economides, chief financial officer, the Debtor reports total assets as of August 31, 2024 amounting to $124,885,479 and total debts as of August 31, 2024 amounting to $40,000,000. The Honorable Bankruptcy Judge Karen B. Owens handles the case. The Debtor tapped Pachulski Stang Ziehl & Jones LLP as bankruptcy counsel; Pricewaterhousecoopers LLP as financial advisor; and Raymond James & Associates, Inc., as investment banker. Fenwick & West LLP is the corporate counsel. The U.S. Trustee appointed an official committee of unsecured creditors appointed in this Chapter 11 case. The committee tapped ArentFox Schiff LLP as counsel, Potter Anderson & Corroon LLP as Delaware counsel, and FTI Consulting, Inc. as financial advisor. HERITAGE COLLEGIATE: Includes Churchill & Uptown Fund Claims Pay ---------------------------------------------------------------- Heritage Collegiate Apparel, Inc. f/k/a M-Den, Inc., d/b/a The M Den submitted a Second Amended Combined Plan of Liquidation and Disclosure Statement dated January 16, 2025. The Debtor shall continue to be responsible for objection to, allowance of, and distribution to all Claims and Interests other than those held by non-priority Unsecured Creditors and certain post-confirmation Professional Fees. The Liquidation Trust shall be responsible for objection to, allowance of, and distribution to non-priority Unsecured Creditors. The Committee shall be disbanded upon establishment of the Liquidation Trust and shall have no further duties. The Debtor will retain and distribute the Sale Proceeds and will retain the right to pursue the MCA Creditor Adversary Proceedings. To the extent proceeds are generated from the MCA Creditor Adversary Proceedings they will be paid to the Liquidation Trust for distribution. Pursuant to section 3.12.6, to the extent that the Debtor is in possession of Sale Proceeds or other funds after payment of all Claims with higher priority than non-priority Unsecured Creditors, such amounts will be transferred to the Liquidation Trust for distribution. The Liquidation Trust will take title to and distribute the proceeds of the Bank of Ann Arbor Related Entity Loan Documents, all Avoidance Actions and all Causes of Action other than the MCA Creditor Adversary Proceedings. The Committee will not hold or liquidate any assets. Under the Plan, the Debtor is responsible for the allowance and payment of Groups I and II Creditors with Allowed Claims, including Allowed Administrative Expenses, and Holders of Allowed Claims in Classes I to X. As set forth in more detail in section A(ii), the Liquidation Trust will administer and liquidate (i) the Bank of Ann Arbor Related Entity Loan Documents, including the Related Entity Mortgages, (ii) Causes of Action, and (iii) Avoidance Actions (except the MCA Adversary Proceedings). The Debtor estimates that the Sale Proceeds (excluding amounts in the Professional Fee Account) will total approximately $9,939,9725 as of January 29, 2025. The primary asset being transferred to the Trust for distribution to Class XII non-priority Unsecured Creditors are the rights to collect the approximately $3,642,694 owed under the Bank of Ann Arbor Related Entity Loan Documents, which amount is secured by the Related Entity Mortgages on the Related Entity Real Estate. In addition, the Trust will hold the right to collect $592,634 owed by Stadium Properties to the Debtor and other Causes of Action and Avoidance Actions, the proceeds of which may be sufficient to result in a distribution to Class XII nonpriority Unsecured Creditors. Class V consist of the Claim of Churchill Capital Partners, LLC pursuant to the Sale of Future Receivables Agreement dated August 16, 2023 ("Churchill Agreement") which Churchill alleges is secured by UCC Financing Statement #20240312000439-4 filed with the State of Michigan on March 12, 2024. Churchill filed a Proof of Claim in this Case alleging it is owed $5,329,402.50. The Debtor disputes the amount of Churchill's Claim and believes that Churchill has been paid in full. The dispute shall be resolved pursuant to the claim objection procedures. Within ninety days after all of the following have occurred: (A) Churchill is determined to have an Allowed Claim, (B) the Allowed Claims of Classes I, II, III and IV have been paid in full, and (C) the earlier of the following event (i) the Determination Date, or (ii) the date on which the Available Proceeds are sufficient to pay the Class V Allowed Secured Claim in full, the Debtor shall pay to Churchill all of the Available Proceeds up to the amount of its Allowed Claim. Class VI consist of the Claim of Uptown Fund, LLC pursuant to the Standard Merchant Cash Advance Agreement dated May 14, 2024 ("Uptown Agreement") which Uptown alleges is secured by UCC Financing Statement #20240530000539-7 filed with the State of Michigan on May 30, 2024. Uptown filed a Proof of Claim in this Case alleging it is owed $333,215.01. The Debtor disputes the amount of Uptown's Claim and believes that Uptown has been paid in full. The dispute shall be resolved pursuant to the claim objection procedures. Within ninety days after all of the following have occurred: (A) Uptown is determined to have an Allowed Claim, (B) the Allowed Claims of Classes I, II, III, IV and V have been paid in full, and (C) the earlier of the following event (i) the Determination Date, or (ii) the date on which the Available Proceeds are sufficient to pay the Class VI Allowed Secured Claim in full, the Debtor shall pay to Uptown all of the Available Proceeds up to the amount of its Allowed Claim. A full-text copy of the Second Amended Combined Disclosure Statement & Liquidating Plan dated January 16, 2025 is available at https://urlcurt.com/u?l=6ULKwT from PacerMonitor.com at no charge. Counsel to the Debtor: Kim K. Hillary, Esq. Howard Borin, Esq. Schafer and Weiner, PLLC 40950 Woodward Avenue, Suite 100 Bloomfield Hills, MI 48304 Tel: (248) 540-3340 Email: khillary@schaferandweiner.com About Heritage Collegiate Apparel Heritage Collegiate Apparel, Inc., serves as the official retailer of the University of Michigan Athletic Department. For more than 20 years, the Debtor has provided a selection of clothing, merchandise and gifts to the University of Michigan. Heritage Collegiate Apparel filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Mich. Case No. 24-47922) on Aug. 16, 2024, listing $1 million to $10 million in assets and $10 million to $50 million in liabilities. The petition was signed by Scott Hirth as president. Judge Thomas J. Tucker presides over the case. Kim K. Hillary, Esq., at Schafer and Weiner, PLLC represents the Debtor as legal counsel. On September 3, 2024, the United States Trustee appointed an official committee of unsecured creditors in this Chapter 11 case. The committee tapped Wolfson Bolton Kochis PLLC as counsel and Capstone Partners as financial advisor. HOOVER DRILLING: Hires Allen Jones & Giles as Bankruptcy Counsel ---------------------------------------------------------------- Hoover Drilling Company seeks approval from the U.S. Bankruptcy Court for the District of Arizona to employ Allen, Jones & Giles, PLC as counsel. The firm will provide these services: (a) provide the Debtor with legal advice with respect to its reorganization; (b) represent the Debtor in connection with negotiations involving secured and unsecured creditors; (c) represent the Debtor at hearings set by the court in its bankruptcy case; and (d) prepare necessary legal papers necessary to assist in the Debtor's reorganization. The hourly rates of the firm's counsel and staff are as follows: Thomas Allen, Member $500 David Nelson, Associate $375 Ryan Deutsch, Associate $300 Legal Assistants and Law Clerks $150 - $225 Prior to the petition date, the firm received a retainer of $27,000 from the Debtor. Mr. Allen 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: Thomas H. Allen, Esq. Allen, Jones & Giles, PLC 1850 N. Central Ave., Suite 1025 Phoenix, AZ 85004 Telephone: (602) 256-6000 Facsimile: (602) 252-4712 Email: tallen@bkfirmaz.com About Hoover Drilling Co. Hoover Drilling Co. is a Casa Grande, Arizona-based drilling services provider. Hoover Drilling Co. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 24-11104) on December 30, 2024. In its petition, the Debtor reported $1 million to $10 million in both assets and liabilities. Judge Scott H. Gan handles the case. The Debtor tapped Thomas H. Allen, Esq., at Allen, Jones & Giles, PLC a counsel. HYPERSCALE DATA: Declares Dividends for Preferred Shareholders -------------------------------------------------------------- Hyperscale Data, Inc., announced on January 17 that its Board of Directors has declared a monthly cash dividend of $0.2708333 per share of the Company's outstanding 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock. The record date for this dividend is Jan. 31, 2025, and the payment date is Monday, Feb. 10, 2025. Link to NYSE quote for the Company's 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock: https://www.nyse.com/quote/XASE:GPUSpD The Company further announced that the Board has declared a monthly cash dividend of $0.20833 per share of the Company's outstanding 10.00% Series E Cumulative Redeemable Perpetual Preferred Stock. The declared dividend is for the previously deferred dividend for the month ended Dec. 31, 2024. As the Series E Preferred Stock was issued on Dec. 9, 2024, the declared monthly cash dividend will be prorated for the month, resulting in a cash dividend of $0.15278 per share. The record date for this dividend is Jan. 31, 2025, and the payment date is Monday, Feb. 10, 2025. In addition, the Board has elected not to declare a monthly cash dividend on the Series E Preferred Stock for the month ending Jan. 31, 2025. The certificate of designations for the Series E Preferred Stock permits the Company to defer up to 12 consecutive monthly dividend payments on the Series E Preferred Stock without such deferrals being considered missed. The Company notes that the dividend is a cumulative dividend that accrues for payment in the future. About Hyperscale Data Headquartered in Las Vegas, NV, Hyperscale Data, Inc., formerly known as Ault Alliance, Inc., is transitioning from a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact to becoming solely an owner and operator of data centers to support high performance computing services. Through its wholly and majority-owned subsidiaries and strategic investments, Hyperscale Data owns and operates a data center at which it mines digital assets and offers colocation and hosting services for the emerging artificial intelligence ecosystems and other industries. It also provides, through its wholly owned subsidiary, Ault Capital Group, Inc., mission-critical products that support a diverse range of industries, including an artificial intelligence software platform, social gaming platform, equipment rental services, defense/aerospace, industrial, automotive, medical/biopharma and hotel operations. In addition, Hyperscale Data is actively engaged in private credit and structured finance through a licensed lending subsidiary. New York, New York-based Marcum LLP, the Company's auditor since 2016, issued a "going concern" qualification in its report dated April 16, 2024, citing that the Company has a working capital deficiency, has incurred net losses, and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. I-ON DIGITAL: Increases Authorized Common Shares to 250 Million --------------------------------------------------------------- I-ON Digital Corp. reported in a Form 8-K filed with the Securities and Exchange Commission that it filed a Certificate of Amendment, effective Jan. 17, 2025, to its Certificate of Incorporation with the Secretary of State of the State of Delaware, increasing the number of authorized shares of Common Stock from 100,000,000 to 250,000,000. About I-On Chicago, Ill.-based I-ON Digital Corp. specializes in the digitization of real-world assets (RWA), with a primary focus on gold and other mineral asset reserves, providing cutting-edge solutions for asset tokenization and Digital Banking Platform-as-a-Service. By merging blockchain innovation with comprehensive financial products, I-ON Digital empowers organizations to seamlessly engage with the digital economy. For more information, visit iondigitalcorp.com. New York, N.Y.-based Kreit & Chiu CPA LLP, the Company's auditor since 2019, issued a "going concern" qualification in its report dated June 6, 2024. The report noted that the Company had an accumulated deficit of $3,496,501 and $2,691,363 at December 31, 2023 and 2022, respectively; working capital deficits of $707,969 and $0 at December 31, 2023 and 2022, respectively; net losses of $805,138 and $27,625 for the years ended December 31, 2023 and 2022, respectively; and net cash used in operating activities of approximately $498,834 and $792,936 for the years ended December 31, 2023 and 2022, respectively. These matters raise substantial doubt about the Company's ability to continue as a going concern. IGLESIA ESCUELA: Seeks Approval to Tap Jose O. Ayala as Accountant ------------------------------------------------------------------ Iglesia Escuela Bautista Castillo Fuerte Inc. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Jose O. Ayala, CPA, MBA, an accountant practicing in Toa Alta, Puerto Rico. The accountant will render these services: (a) assist the Debtor in gathering and compiling the necessary information required to file the Chapter 11 petition and court required information and schedules; (b) provide consulting services and assist the Debtor and its attorney in documenting the reorganization plan to be filed in the case; (c) prepare monthly operating reports; (d) prepare all necessary tax returns to ascertain the Debtor is in full compliance with its fiscal responsibilities; and (e) assist the Debtor and its attorney in all matters related to court instructions, transactions, and or information requests of an accounting or financial nature. The accountant's hourly rates are as follows: Jose Ayala, CPA, MBA $190 Senior Accountant $125 Staff Accountant $75 In addition, the accountant will seek reimbursement for expenses incurred. Mr. Ayala also requires a retainer of $2,000 for this case. Mr. Ayala disclosed in a court filing that he is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The accountant can be reached at: Jose O. Ayala, CPA, MBA Urb Ciudad Jardin III Toa Alta, PR 00953 Telephone: (939) 438-0254 Email: jayalacpa@gmail.com About Iglesia Escuela Bautista Castillo Fuerte Inc. Iglesia Escuela Bautista Castillo Fuerte Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 24-05680) on December 30, 2024, listing under $1 million in both assets and liabilities. The Debtor tapped C. Conde & Associates as counsel and Jose O. Ayala, CPA, MBA as accountant. INDEPENDENCE CONTRACT: Latham Advised Business in Chapter 11 ------------------------------------------------------------ Independence Contract Drilling, Inc., has successfully completed its Chapter 11 restructuring process and has emerged as a private company that is financially and operationally stronger and well-positioned for the future. ICD's Plan of Reorganization was confirmed by the Bankruptcy Court on January 9, 2025. Latham & Watkins LLP represented the company's prepetition convertible noteholders and postpetition lenders in connection with the transaction led by New York restructuring and special situations partners David Hammerman and Adam Goldberg, with associate Jon Weichselbaum, and Austin corporate partner David Miller with Houston associate Daniel Harrist. Advice was also provided on corporate matters by London partner Edward Barnett, and New York partners Reza Mojtabaee-Zamani, and Eric Rice; on finance matters by Houston partner Pamela Kellet and Houston counsel Benjamin Gelfand, with associates Brian Flynn and Johnny Zhuang; and on tax matters by Chicago Partner Jospeh Kronsnoble and New York associate Lukas Kutilek. About Independence Contract Drilling Independence Contract Drilling, Inc., and its affiliates provide land-based contract drilling services for a broad array of oil and natural gas producers in the United States. The Company utilizes its specialized drilling rig fleet, including super-spec, AC-powered rigs, to support exploration by targeting unconventional oil and natural gas resources in geographic regions that can be leveraged by the Debtors' primary Houston, Texas, Midland, Texas, Odessa, Texas, and Coushatta, Louisiana facilities. Independence Contract Drilling and its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 24-90612) on Dec. 2, 2024. In the petition signed by J. Anthony Gallegos, Jr., as president and chief executive officer, Independence reported total assets of $356,854,000 and total debt of $216,785,000 as of Sept. 30, 2024. Bankruptcy Judge Alfredo R. Perez handles the cases. Sidley Austin LLP is the Company's restructuring counsel, Riveron is the restructuring advisor, and Piper Sandler is the investment banker. Kroll is the claims agent. Latham & Watkins LLP is legal counsel for the Noteholders. IQSTEL INC: Issues Stock Option for 15M Shares to ADI Funding ------------------------------------------------------------- iQSTEL Inc. reported in a Form 8-K filed with the Securities and Exchange Commission that on Jan. 14, 2025, it issued a Common Stock Purchase Option to ADI Funding LLC under a Stock Purchase Agreement for $100,000 that expires on July 14, 2025, for the right to acquire up to 15,000,000 shares of common stock. The exercise price per share of the common stock under the Option shall be 70% of the VWAP of the common stock during the then 10 Trading Days immediately preceding but not including the date of exercise. The obligation to exercise each specified portion of the Option is subject to the exercise price, being not less than $0.11 per share on the relevant Option exercise date. ADI Funding has the right and the obligation to exercise, on a "cash basis," not less than 2,000,000 of the Option shares not later than 15 days after an effective registration statement permitting the issuance of the Option shares to or resale of the Option shares by ADI Funding. From and after the occurrence of the above-referenced exercise, each additional exercise of Options hereunder shall be in an amount not less than 1,000,000.00 shares and shall be exercised only on a cash basis. Exercises are required to be made in recognition of ADI Funding's beneficial ownership limitation of 4.99% of the Company's outstanding common stock, which upon notice may be increased to 9.99%. If the Company issued securities less than the exercise price option, ADI Funding has a right to also use that lesser price in the exercise of its Option. The Option also contains rights to any company distributions and consideration in fundamental transactions, subject to the beneficial ownership limitation. The Company also entered into a Registration Rights Agreement with ADI Funding to register the resale shares underlying the Option with the Securities and Exchange Commission. About iQSTEL Inc. Coral Gables, Fla.-based iQSTEL Inc. (OTCQX: IQST) is a multinational technology and telecommunications company that offers a range of services focused on making essential tools like communications, financial services, and mobility solutions accessible to people worldwide. The company provides integrated solutions in telecommunications, fintech, electric vehicle (EV) infrastructure, cybersecurity, and Artificial Intelligence. Pittsburgh, Pa.-based Urish Popeck & Co., LLC, the company's auditor since 2020, issued a "going concern" qualification in its report dated April 1, 2024. The report cites recurring losses from operations and insufficient revenue sources to cover operating costs, raising substantial doubt about the company's ability to continue as a going concern. JACK OHIO: S&P Rates New $250MM Sr. Secured Credit Facility 'B-' ---------------------------------------------------------------- S&P Global Ratings assigned its 'B-' issue-level rating and '3' recovery rating to Jack Ohio's proposed $25 million revolver due 2030 and $225 million term loan B due 2032. The '3' recovery rating indicates its expectation of meaningful (50%-70%; rounded estimate: 65%) recovery for lenders in the event of a default. The company plans to use the proceeds from the new term loan B—along with cash on its balance sheet, to repay its existing $228 million term loan B due 2028, distribute $30 million to shareholders, and fund transaction fees and expenses. The revolver will be undrawn at close. The planned refinancing is largely a debt-for-debt transaction and does not materially affect our forecast credit measures; the shareholder dividend will be fully funded with cash on the balance sheet. The planned refinancing extends the company's maturities and somewhat reduces interest expense. However, we revised our expected 2024 leverage forecast for Jack to approximately 7x from 6.7x and expect it to remain around 7x through 2025, mostly because we believe visitation growth following the Thistledown Racino renovation completed in September 2024 has been lower than anticipated. Although Jack's market share still remains lower than pre-renovation, we expect that Jack will likely recapture most of its lost share through 2025. Issue Ratings--Recovery Analysis Key analytical factors -- S&P's simulated default considers a substantial decline in cash flow from prolonged economic weakness and greater competitive pressures in the company's operational markets. In addition, it believes the large lease rent payment reduces operating flexibility, potentially leading to greater cash flow volatility and a default in 2026. -- S&P said, "We assume a reorganization following default. To value Jack, we use an emergence EBITDA multiple of 6x, which is consistent with the EBITDA multiple we use to value similar regional casinos with small scale and limited geographic diversity. We do not separately ascribe value to the company's owned nongaming assets, including nine floors of the Higbee building." -- The first-lien senior secured debt is guaranteed by parent Jack Parent LLC and its material domestic operating subsidiaries. Material assets of the borrower and guarantors secure the credit facility. -- S&P assumes the revolver is 85% drawn at the time of default. Simulated default assumptions -- Emergence EBITDA: $28.8 million -- EBITDA multiple: 6x -- Gross enterprise value: $173 million Simplified waterfall --- Net enterprise value (after 5% administrative expense): $164.4 million -- Valuation split (obligor/nonobligor): 100%/0% -- Estimated first-lien claims: $251.2 million -- Value available for first-lien claims: $164.4 million --Recovery range: 50%-70% (rounded estimate: 65%) All debt amounts include six months of prepetition interest. JASMINE R ELMORE: Seeks to Hire Bradford Law Offices as Counsel --------------------------------------------------------------- Jasmine R. Elmore, DDS PLLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of North Carolina to employ Bradford Law Offices to handle its Chapter 11 case. The firm's hourly rates are: Attorney $575 Paralegal $175 In addition, the firm will seek reimbursement for expenses incurred. Danny Bradford, a member at Bradford Law Offices, 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: Danny Bradford, Esq. Bradford Law Offices 455 Swiftside Drive, #106 Cary, NC 27518 Telephone: (919) 758-8879 Email: Dbradford@bradford-law.com About Jasmine R. Elmore, DDS, PLLC Jasmine R. Elmore, DDS, PLLC owns and operates Wilson Pediatric Dentistry, a pediatric dental practice located near Greenville, NC. The practice offers a wide range of services focused on promoting the healthy growth and development of children's teeth. With an emphasis on preventative care, the Debtor provides treatments that support optimal dental health for young patients. Jasmine R. Elmore, DDS, PLLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-00123) on January 13, 2025. In its petition, the Debtor reports total assets of $68,777 and total liabilities of $1,493,926. Honorable Bankruptcy Judge Joseph N. Callaway handles the case. Danny Bradford, Esq., at Bradford Law Offices serves as the Debtor's counsel. JINGBO TECHNOLOGY: Posts Net Loss of $726K in Third Quarter ----------------------------------------------------------- Jingbo Technology, Inc., filed its Quarterly Report on Form 10-Q with the Securities and Exchange Commission, reporting a net loss of $726,432 on net revenues of $784,206 for the three months ended Nov. 30, 2024. This compares to a net loss of $1.35 million on net revenues of $305,559 for the same period a year ago. For the nine months ended Nov. 30, 2024, the Company reported a net loss of $6.20 million on net revenues of $1.49 million, compared to a net loss of $4.65 million on net revenues of $1.11 million for the nine months ended Nov. 30, 2023. As of Nov. 30, 2024, the Company had $13.89 million in total assets, $35.80 million in total liabilities, and a total deficit of $21.90 million. As of Nov. 30, 2024, the Company had net cash used in operating activities of $1,207,051. The Company incurred net loss of $5,482,077 during the year ended Feb. 29, 2024. As of Feb. 29, 2024, the Company had total deficit of $18,702,180 and had net cash used by operating activities of $1,833,699. Jingbo noted that "These conditions raise substantial doubt about the Company's ability to continue as a going concern. The Company's continuation as a going concern is dependent on long term loans related to Shaoxing Keqiao Zhuyi Technology Co. and the director (Guowei Zhang) to meet obligations as they become due and to obtain additional equity or alternative financing required to fund operations until sufficient sources of recurring revenues can be generated. There can be no assurance that the Company will be successful in its plans described above or in attracting equity or alternative financing on acceptable terms, or if at all." The full text of the Form 10-Q is available at no cost at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1647822/000149315225002745/form10-q.htm About Jingbo Technology Headquartered in Zhejiang, China, Jingbo Technology, Inc. focuses on the development and provision of smart parking solutions through its subsidiary, Intelligence Parking Group Limited, offering application software and platform services for parking management. Its primary operations include developing smart parking technology, mobile applications, and cloud-based platforms to optimize parking experiences. Intelligence aims to implement a software and hardware system transformation for existing parking lots, with the goal of achieving smart, digital platform operations -- from construction to profit generation. Guangzhou, Guangdong, China-based GGF CPA LTD, the Company's auditor since 2024, issued a "going concern" qualification in its report dated July 3, 2024, citing that the Company had incurred substantial losses over the years and negative working capital, which raises substantial doubt about its ability to continue as a going concern. JMG VENTURES: Unsecured Creditors to Get Nothing in Plan -------------------------------------------------------- JMG Ventures, LLC, filed with the U.S. Bankruptcy Court for the Western District of Wisconsin a Plan of Reorganization dated January 16, 2025. JMG is a Wisconsin Limited Liability Company which was registered in Wisconsin on February 21, 2013. JMG owns and operates Middleton Jewelers, Madison and Middleton's premier gold and jewelry destination, located at 6629 University Avenue, #104, Middleton, Wisconsin, 53562 ("Middleton Jewelers"). In 2013, Manmeet S. Soin and his then business partner, Joshua Gamer, decided to look for a jewelry store to acquire, then own and operate together. In 2013, after scouting other jewelry stores in the Dane County area, Gamer and Soin met with the current owners of Terry Jewelers, a jewelry store in Middleton which was operating in a portion of the space of Middleton Jeweler's current showroom. In 2018, the construction on University Avenue was complete and JMG had an amazing year of growth. However, in 2019, construction starting at the Parmenter Street Exit negatively impacted sales at Middleton Jewelers. Problems continued for Middleton Jewelers in 2020 when the COVID-19 pandemic forced it to close for almost four months. Middleton Jewelers resumed business in July of 2020. JMG's business prospects further suffered due to continuing problems with Gamer. In 2022, Soin was forced to buy him out, as keeping Gamer involved in the business would have completely failed. The buy-out was costly for JMG, and affected its bottom line significantly. Gamer's exit from the business also caused JMG to lose its long-time accountant, which lead to JMG falling behind in tax filings and payments. Following the confirmation of the Plan, Soin shall continue to act as the sole managing member of JMG. Such continuation is in the best interest of the Debtor, its creditors, and its estate due to Soin's unique history and experience managing JMG. This Plan under Chapter 11 of the United States Bankruptcy Code proposes to pay creditors of the Debtor from future revenue generated by the Debtor though the continued operation of Middleton Jewelers. cash flow from operations. Non-priority unsecured creditors holding allowed claims will not receive distributions, based on the projected cash flow and the liquidation analysis, which do not provide for any funding to general unsecured creditors of the Debtor. This Plan provides for full payment of administrative expenses and priority claims. Class 9 consists of Nonpriority unsecured creditors. Based on the Liquidation Analysis, the Class 10 Claims shall receive $0.00 through the Plan. This class is Impaired. Class 10 consists of Equity security holders of the Debtor. Manmeet Soin shall retain his equity ownership interest in the Debtor and shall be paid his W-2 wages as specified herein on account of his continued management and operation of the Debtor's business, all subject to the terms and conditions of this Plan. The Debtor will implement and fund the Plan by continuing to operate Middleton Jewelers and generate income, as set forth herein and in the attached financial projections. Soin shall remain as sole member of the Debtor and manager of Middleton Jewelers, and the Debtor shall make all disbursements pursuant to the terms of this Plan. The Plan will be funded with cash on hand, future operating revenue, and outstanding accounts receivable. The Plan is feasible, pursuant to Section 1129(a)(11) of the Bankruptcy Code, based on the projected income of the Debtor over the term of the Plan. A full-text copy of the Plan of Reorganization dated January 16, 2025 is available at https://urlcurt.com/u?l=rXlXvP from PacerMonitor.com at no charge. JMG Ventures, LLC is represented by: Eliza M. Reyes, Esq. RICHMAN & RICHMAN LLC 122 W. Washington Avenue, Suite 850 Madison, WI 53703-2732 Tel: (608) 630-8990 Fax: (608) 630-8991 Email: ereyes@randr.law About JMG Ventures JMG Ventures, LLC is a limited liability company in Middleton, Wis., which conducts business under the name Middleton Jewelers. JMG Ventures filed Chapter 11 petition (Bankr. W.D. Wis. Case No. 24-11650) on August 19, 2024, with $100,000 to $500,000 in assets and $1 million to $10 million in liabilities. Manmeet Soin, managing member, signed the petition. Judge Beth E. Hanan oversees the case. The Debtor is represented by Eliza M. Reyes, Esq., at Richman & Richman, LLC. JOURNEY HEALTH: Seeks to Hire Lodovico & Associates as Accountant ----------------------------------------------------------------- Journey Health Care Management Services, LLC seeks approval from the U.S. Bankruptcy Court for the Western District of Pennsylvania to employ Lodovico & Associates, PC as accountant. The firm will render these services: (a) prepare financial records for internal use and the review of internal transactional records; (b) prepare traditional accounting statements; (c) prepare 1099 forms; and (d) prepare of Internal Revenue Service (IRS) Form 1120-S, Pennsylvania's Form PA-20/PA-65, and local tax documents. The firm has agreed to a monthly retainer of $1,250 with an additional fee of $1,800 to be paid for the preparation of the business tax returns. Additionally, the Debtor agreed to pay and did remit a one-time setup fee of $2,500 for the work needed to catch its books up on work that had gone unperformed since May, 2024. Antonio Lodovico, a partner at Lodovico & Associates, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Antonio Lodovico Lodovico & Associates, P.C. 3723 William Penn Highway Murrysville, PA 15668 Telephone: (724) 325-9909 About Journey Health Care Management Services Journey Health Care Management Services, LLC sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Pa. Case No. 24-22772) on November 12, 2024, listing $100,001 to $500,000 in both assets and liabilities. Judge Gregory L. Taddonio presides over the case. The Debtor tapped Ryan J Cooney, Esq., at Cooney Law Offices LLC as counsel and Antonio Lodovico at Lodovico & Associates, PC as accountant. LA NOTTE VENTURES: Seeks to Hire David R. Herzog as Legal Counsel ----------------------------------------------------------------- La Notte Ventures, Inc., doing business as La Notte Ristorante Italiano, seeks approval from the U.S. Bankruptcy Court for the Northern District of Illinois to employ Law Office of David R. Herzog, LLC as its counsel. The firm will render these services: (a) give the Debtor legal advice with respect to its duties, powers and responsibilities; (b) assist the Debtor in the negotiation, formulation and drafting of a plan of reorganization; (c) appear for, prosecute, defend and represent the Debtor's interests in matters arising in or related to this case; (d) prepare all necessary legal papers as may be necessary in connection with this case; and (e) perform such other legal services as may be required. The firm will be paid at its hourly rates plus expenses. David Herzog, Esq., 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: David R. Herzog, Esq. Law Office of David R. Herzog, LLC 53 W. Jackson Blvd., Suite 1442 Chicago, IL 60604 Telephone: (312) 977-1600 Email: drh@dherzoglaw.com About La Notte Ventures La Notte Ventures, Inc., doing business as La Notte Ristorante Italiano, sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-15860) on October 23, 2024, with up to $50,000 in assets and up to $1 million in liabilities. Judge Jacqueline P. Cox presides over the case. The Debtor tapped the Law Office of David R. Herzog, LLC as counsel and Joseph & Associates, Ltd. as accountant. LA NOTTE VENTURES: Seeks to Tap Joseph & Associates as Accountant ----------------------------------------------------------------- La Notte Ventures, Inc., doing business as La Notte Ristorante Italiano, seeks approval from the U.S. Bankruptcy Court for the Northern District of Illinois to employ Joseph & Associates, Ltd. as accountant. The firm will provide these services: (a) prepare payroll, payment of payroll and sales taxes; (b) prepare and file federal and state tax returns; and (c) perform all other accounting services for the Debtor. The firm requests a $775 retainer from the Debtor. Joseph Giralamo, Jr., the president of Joseph & Associates, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Joseph A. Giralamo, Jr. Joseph & Associates, Ltd. 340 W., Butterfield Rd. Elmhurst, IL 60126 About La Notte Ventures La Notte Ventures, Inc., doing business as La Notte Ristorante Italiano, sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-15860) on October 23, 2024, with up to $50,000 in assets and up to $1 million in liabilities. Judge Jacqueline P. Cox presides over the case. The Debtor tapped the Law Office of David R. Herzog, LLC as counsel and Joseph & Associates, Ltd. as accountant. LAREDO OIL: Incurs $816K Net Loss in Second Quarter --------------------------------------------------- Laredo Oil, Inc., filed its Quarterly Report on Form 10-Q with the Securities and Exchange Commission, disclosing a net loss of $815,720 on revenue of $1,640 for the three months ended Nov. 30, 2024. This compares to a net loss of $753,522 on revenue of $0 for the three months ended Nov. 30, 2023. For the six months ended Nov. 30, 2024, the Company reported a net loss of $1.28 million on $7,688 of revenue, compared to a net loss of 1.87 million on revenue of $0 for the same period during the prior year. As of Nov. 30, 2024, the Company had $4.94 million in total assets, $16.45 million in total liabilities, and a total stockholders' deficit of $11.51 million. Laredo said that "The Company has routinely incurred losses since inception, resulting in an accumulated deficit, and historically was dependent on one customer for its revenue. There is no assurance that in the future any financing will be available to meet the Company's needs. This situation raises substantial doubt about the Company's ability to continue as a going concern within one year of the issuance date of these consolidated financial statements. "The Company's management has undertaken steps as part of a plan to improve operations with the goal of sustaining operations for the next twelve months and beyond. These steps include an ongoing effort to (a) controlling overhead and expenses; (b) raising funds connected with specific well development; and (c) raising funds through notes payable and convertible debt to expand and fund property acquisitions exploration and development as well as maintaining operations. The Company has worked to attract and retain key personnel with significant experience in the industry. At the same time, to control costs, the Company has required several of its personnel to multi-task and cover a wider range of responsibilities to manage the Company's headcount. There can be no assurance that the Company can successfully accomplish these steps and it is uncertain that the Company will achieve a profitable level of operations and obtain additional financing. There can be no assurance that any additional financing will be available to the Company on satisfactory terms and conditions, if at all." The full text of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1442492/000119983525000025/lrdc-10q.htm About Laredo Oil Inc. Austin, TX-based Laredo Oil, Inc. is an oil exploration and production company that focuses on acquiring and exploring mineral properties to identify and develop oil reserves. Since 2009, it has specialized in acquiring mature oil fields and recovering stranded oil reserves through enhanced oil recovery techniques. From 2011 to 2020, the company provided management services to Stranded Oil Resources Corporation, overseeing the acquisition and operation of mature oil fields in exchange for management fees and reimbursements. The Woodlands, TX-based M&K CPAS, PLLC, the Company's auditor since 2024, issued a "going concern" qualification in its report dated Sept. 30, 2024, citing that the Company has yet to achieve profitable operations, has negative cash flows from operating activities, and is dependent upon future issuances of equity or other financings to fund ongoing operations, all of which raises substantial doubt about its ability to continue as a going concern. LEE INVESTMENT: Taps Davis Reality and Auction as Auctioneer ------------------------------------------------------------ Lee Investment Consultants, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Alabama to employ Keith Davis Estate LLC, doing business as Davis Reality and Auction, as auctioneer and appraiser. The Debtor needs an auctioneer and appraiser to assist in the private sale and/or private auction of its property. The firm will be compensated on a contingent fee basis of 10 percent of the net sale price plus expenses. Keith Davis, owner of Davis Reality and Auction, 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: Keith Davis Davis Reality and Auction 1651 Highway 77 Southside, AL 35907 Telephone: (256) 442-9995 Email: chris@davisrealtyandauction.com About Lee Investment Consultants Lee Investment Consultants, LLC, a company in Gadsden, Ala., sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ala. Case No. 24-41078) on September 11, 2024, with $1 million to $10 million in both assets and liabilities. Scott Lee, president, signed the petition. Judge James J. Robinson handles the case. The Debtor is represented by Stacy Upton, Esq., at The Law Offices of Harry P. Long, LLC. LONESTAR FIBERGLASS: Hires Fox Law Corporation as Legal Counsel --------------------------------------------------------------- LoneStar Fiberglass Components of Texas, LLC seeks approval from the U.S. Bankruptcy Court for the Western District of Texas to employ the Fox Law Corporation as general bankruptcy counsel. The firm will provide these services: (a) assist and advise the Debtor relative to its operations and relative to the overall administration of this Chapter 11 case; (b) represent the Debtor at hearings to be held before this court and communicate with its creditors regarding the matters heard and the issues raised, as well as the decisions and considerations of this court; (c) prepare, review, and analyze legal documents filed and to be filed with this court by the Debtor or other interested parties in this Chapter 11 case; advise the Debtor as to the necessity, propriety and impact of the foregoing upon this Chapter 11 case; and consent or object to pleadings or orders on behalf of the Debtor; (d) assist the Debtor in preparing such applications, motions, memoranda, adversary proceedings, proposed orders and other pleadings as may be required in support of positions taken by it, as well as preparing witnesses and reviewing documents relevant thereto; (e) coordinate the receipt and dissemination of information prepared by and received from the Debtor and its accountants, and/or other retained professionals, as well as such information as may be received from accountants or other professionals engaged by any official committee; (f) confer with the professionals as may be selected and employed by any official committee; (g) assist and counsel 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 proposed and 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 in this Chapter 11 case; (i) assist and advise the Debtor in its discussions and negotiations with others regarding the terms, conditions, and security for credit, if any, during this Chapter 11 case; (j) conduct such examination of witnesses as may be necessary to analyze and determine, among other things, the Debtor's assets and financial condition, whether it has made any avoidable transfers of its property, and whether causes of action exist on behalf of its estate; and (k) assist the Debtor generally in performing such other services as may be desirable or required. The firm will be paid at these hourly rates: Steven Fox, Principal $600 Associates $550 Paralegal $150 In addition, the firm will seek reimbursement for expenses incurred. Mr. Fox 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: Steven R. Fox, Esq. The Fox Law Corporation Inc. 17835 Ventura Blvd., Ste. 306 Encino, CA 91316 Telephone. (818) 774-3545 Facsimile: (818) 774-3707 Email: Srfox@Foxlaw.com About LoneStar Fiberglass LoneStar Fiberglass manufactures fiberglass swimming pools and spas and sells them directly and through dealers. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-52593) on December 19, 2024. In the petition signed by Chris Owens, managing member, the Debtor disclosed up to $10 million in assets and up to $50 million in liabilities. Judge Michael M. Parker oversees the case. The Fox Law Corporation represents the Debtor as counsel. MALIA REALTY: Court OKs Interim Use of Cash Collateral ------------------------------------------------------ Malia Realty, LLC received interim approval from the U.S. Bankruptcy Court for the Northern District of Georgia to use its lenders' cash collateral. The interim order authorized the company to use cash collateral to fund its operations for the period from Jan. 16 to Feb. 11. The lenders including Newrez, LLC, doing business as Shellpoint Mortgage Servicing, Toorak Capital Partners, LLC and LendingOne, LLC may assert a security interest in the real property owned by the company located in Atlanta, Ga. The revenue and rents from the property constitute the lenders' cash collateral. As adequate protection, the lenders were granted a replacement lien on all property of the company except the proceeds of any avoidance actions under Chapter 5 of the Bankruptcy Code. The lenders will also receive payment of $2,500 as additional protection. A final hearing is scheduled for Feb. 11. The lenders can be reached through their counsel: Glenn E. Glover, Esq. Bradley Arant Boult Cummings, LLP 1819 Fifth Avenue North Birmingham, AL 35203 Telephone: (205) 521-8000 Facsimile: (205) 488-6647 Email: gglover@bradley.com About Malia Realty LLC Malia Realty LLC is a Single Asset Real Estate debtor (as defined in 11 U.S.C. Section 101(51B)). Malia Realty sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-61684) on November 1, 2024, with $1 million to $10 million in both assets and liabilities. Judge Barbara Ellis-Monro oversees the case. The Debtor is represented by: William Rountree, Esq. Rountree, Leitman, Klein & Geer, LLC 2987 Clairmont Road Suite 350 Atlanta GA 30329 Tel: 404-584-1238 Email: wrountree@rlkglaw.com MASTER'S PLAN: Hires Allen Jones & Giles as Bankruptcy Counsel -------------------------------------------------------------- Master's Plan Construction Company, LLC seeks approval from the U.S. Bankruptcy Court for the District of Arizona to employ Allen, Jones & Giles, PLC as counsel. The firm will render these services: (a) provide the Debtor with legal advice with respect to its reorganization; (b) represent the Debtor in connection with negotiations involving secured and unsecured creditors; (c) represent the Debtor at hearings set by the court in the Debtor's bankruptcy case; (d) prepare necessary legal papers necessary to assist in the Debtor's reorganization. The firm will be paid at these hourly rates: Thomas Allen, Member $500 David Nelson, Associate $375 Ryan Deutsch, Associate $300 Legal Assistants and Law Clerks $150 - $225 The firm received a total of $25,000 from the Debtor. Mr. Allen 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: Thomas H. Allen, Esq. Allen Jones & Giles, PLC 1850 N. Central Ave., Suite 1025 Phoenix, AZ 85004 Telephone: (602) 265-6000 Facsimile: (602) 252-4712 Email: tallen@bkfirmaz.com About Master's Plan Construction Co. Master's Plan Construction Co. LLC, doing business as Bar None Plumbing, is a Prescott, Arizona-based construction and plumbing services provider. Master's Plan Construction Co. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 24-11049) on December 27, 2024. In its petition, the Debtor reported assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. Judge Daniel P. Collins handles the case. Thomas H. Allen, Esq., at Allen Jones & Giles, PLC serves as the Debtor's counsel. MATCH GROUP: S&P Alters Outlook to Stable, Affirms 'BB' ICR ----------------------------------------------------------- S&P Global Ratings affirmed all its ratings on Dallas-based Match Group Inc., including its 'BB' issuer credit rating, its 'BBB-' issue-level rating on Match's secured term loan (recovery rating: '1'), and its 'BB' issue-level rating on the company's senior unsecured notes (recovery rating: '3'). S&P said, "The stable outlook reflects our expectation that despite flat revenues, the company will report stable to modest EBITDA margin increase as cost savings offset higher business investments over the next 12 months. We also believe Match's S&P Global Ratings-adjusted net leverage will remain below 3x over the next 12 months, despite the company returning 100% of its FCF generation to shareholders. "We expect Tinder's operating performance to remain weak over the next 12 months. Tinder, which comprises roughly 60% of Match's revenue and 80% of EBITDA, is facing weak operating trends like low MAU and declining payers. Although Tinder's revenue grew 3% for the nine months ended Sept. 30, 2024, Tinder payers have decreased on a year over year basis for every quarter since the quarter ended Sept. 30, 2022. Tinder MAU decreased by 9% year over year in the first quarter of 2024, making it difficult for Tinder to increase payers on a declining user base. "We believe changes in consumer preferences, branding issues, and delays in product innovation caused by change in management team have contributed to declining operating trends. Although Tinder has announced new features to improve the ecosystem, such as stronger verification, AI-based dating features, and a new double-dating feature, we believe there is substantial execution risk that could elevate churn of payers in the second half of 2025. Furthermore, improving Tinder monetization could be delayed to 2026 as Tinder then needs to convert its MAU to payers at healthy rates. Thus, we revised our forecasts and now expect Match to increase its revenue 3%-5% in 2026 from flat growth in 2025, much lower than our previous growth expectations of roughly 7% in 2025 and 2026." Hinge's strong growth partially offsets Tinder's weak operating performance. Hinge's revenue grew 44% in the nine months ending Sept. 30, 2024, driven by greater monetization from new subscription tiers and further international expansion. S&P believes Hinge continues to take market share from its peer Bumble, as well as Match's own Tinder brand as consumers shift to more intentioned, prompt-based platforms from traditional swiping. However, Hinge remains a smaller brand of Match's dating portfolio with roughly 20% revenue contribution and one-fourth the MAUs of Tinder as of Sep. 30, 2024. S&P said, "Although we expect Hinge's strong user momentum to contribute a higher revenue share over time, Hinge's lower EBITDA margins could provide Match with an unfavorable product mix. As of Sept. 30, 2024, Hinge's contribution margin was roughly 30% compared to Tinder's contribution margin of roughly 50% due to significant Hinge investments and limited network scale. As such, we forecast EBITDA margins to decline about 50 basis points (bps) to 35.8% in 2024 from 2023. We further expect EBITDA margins to grow about 50-100 bps in 2025 as realized cost savings from headcount reductions in 2024 and lower app store fees offset higher marketing expenses and unfavorable business mix." Match's new capital allocation plan prioritizes shareholder returns, providing limited cushion against Tinder underperformance. Following Match's announcement to appoint a new CFO effective March 2025, the company updated its capital allocation plan to return at least 100% of FCF to shareholders in a new share repurchase authorization and newly instituted quarterly dividend. Although the company also reiterated its financial policy to maintain its net leverage below 3x, S&P believes Match's FCF generation largely stems from Tinder's performance, which carries some execution risk. Nonetheless, Match has a good record of generating steady FCF of about 30% FOCF to debt due to the company's high EBITDA margin and low working capital and capex needs. S&P said, "The stable outlook reflects our expectation that despite flat revenues, the company will report stable to modest EBITDA margin increase as cost savings offset higher business investments over the next 12 months. We also believe Match's S&P Global Ratings-adjusted net leverage will remain below 3x over the next 12 months, despite the company returning 100% of its FCF generation to shareholders." S&P could lower the rating if: -- Match increases leverage above 4x over the next 12 months because of lower demand from a change in consumer preferences, lower payer conversion rates from new verification requirements, or intensifying competition; or -- The company prioritizes a more-aggressive financial policy and pursues debt-funded acquisitions or share repurchases rather than debt reduction. S&P could raise the rating if: -- Tinder's operating trends, like payer growth, recover; -- Hinge margins improve such that Match's overall adjusted EBITDA margins are sustained despite changing consumer preferences; and -- Match continues to adhere to and maintain its S&P Global Ratings' adjusted leverage below 3x. MCNICHOLS TRUCKING: Files Chapter 11 Bankruptcy Protection ---------------------------------------------------------- On January 16, 2025, McNichols Trucking LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Mississippi. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About McNichols Trucking LLC McNichols Trucking LLC is a family-owned logistics company established in 2015, providing reliable transportation services to clients across the 48 states. The company emphasizes professional inventory management, ensuring products are delivered safely and efficiently. Utilizing advanced GPS tracking and expert route planning, McNichols Trucking ensures timely and secure delivery for both large and small clients. McNichols Trucking LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Miss. Case No.: 25-50061) on January 16, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Katharine M Samson handles the case. The Debtor is represented by: Craig M. Geno, Esq. LAW OFFICES OF CRAIG M. GENO, PLLC 601 Renaissance Way, Suite A Ridgeland, MS 39157 Tel: 601-427-0048 MEDICAL PROPERTIES: Gauges Investors' Interests on Bond Deal ------------------------------------------------------------ Reshmi Basu and Gowri Gurumurthy of Bloomberg News reports that Goldman Sachs Group Inc. has been exploring investor interest in a potential junk-bond issuance for Medical Properties Trust Inc., as the hospital landlord navigates the aftermath of two of its tenants filing for bankruptcy, according to sources familiar with the matter. The debt offering is expected to raise at least $1.2 billion, the sources said, requesting anonymity due to the private nature of the information. The proceeds would be used to refinance the company's debt and enhance liquidity, the sources added, the report states. About Medical Properties Trust, Inc. Medical Properties Trust, Inc. is a self-advised real estate investment trust formed in 2003 to acquire and develop net-leased hospital facilities. From its inception in Birmingham, Alabama, the Company has grown to become one of the world's largest owners of hospital real estate with 402 facilities and approximately 40,000 licensed beds in nine countries and across three continents as of September 30, 2024. MPT's financing model facilitates acquisitions and recapitalizations and allows operators of hospitals to unlock the value of their real estate assets to fund facility improvements, technology upgrades and other investments in operations. For more information, please visit the Company's website at www.medicalpropertiestrust.com MIRAMAR TOWNHOMES: Hires O'ConnorWechsler as Litigation Counsel --------------------------------------------------------------- Miramar Townhomes SWNG 2, LLC and its affiliates seek approval from the U.S. Bankruptcy Court for the Southern District of Texas to employ O'ConnorWechsler, PLLC as litigation counsel. The Debtors require the firm's assistance in litigation matters including, without limitation, stay relief requests, claim disputes, Chapter 5 causes of action and plan confirmation disputes, and matters related the requests for relief sought from this court by Better World Properties, LLC. The firm's counsel will be paid at these hourly rates: Annie Catmull, Attorney $550 Kathleen O'Connor, Principal $425 Paralegal $150 - $250 In addition, the firm will seek reimbursement to expenses incurred. The firm received a retainer of $40,000 from Nord Group, LLC, a non-debtor affiliate investment manager of the Debtors. Ms. Catmull 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: Annie Catmull, Esq. O'ConnorWechsler, PLLC 4400 Post Oak Pkwy. Houston, TX 77027 Telephone: (713) 562-6336 Email: kaoconnor@o-w-law.com About Miramar Townhomes SWNG 2 Miramar Townhomes SWNG 2, LLC is owned by Miramar Townhomes SWNG GP, LLC and Miramar Townhomes LP SWNG, LLC. Avenue SWNG TIC, 1 and Avenue SWNG TIC, 2 are both owned by The Avenue SWNG, LLC while Toro Place, LLC is owned by Toro Place Holdings, LLC. Miramar owns the Miramar Townhomes located at 2380 Bering Drive, Houston, Texas, while Toro owns the Toro Place Apartments located at 12101 Fondren Road, Houston, Texas. The Avenue SWNG TIC companies own The Avenue Apartments located at 5050 Yale Street, Houston, Texas. On November 27, 2024, the Debtors filed Chapter 11 petitions (Bankr. S.D. Tex. Lead Case No. 24-90608). At the time of the filing, each Debtor reported $10 million to $50 million in assets and liabilities. Judge Christopher M. Lopez handles the cases. The Debtors tapped Melissa A. Haselden, Esq., at Haselden Farrow, PLLC as bankruptcy counsel and O'ConnorWechsler, PLLC as litigation counsel. MODIVCARE INC: Moody's Cuts CFR to Caa1 & Alters Outlook to Neg. ---------------------------------------------------------------- Moody's Ratings downgraded ModivCare Inc.'s corporate family rating to Caa1 from B3, the probability of default rating to Caa1-PD from B3-PD, the senior secured bank credit facility rating to B3 from B2, the senior unsecured notes rating to Caa3 from Caa2 and the speculative grade liquidity rating (SGL) to SGL-4 from SGL-3. At the same time, Moody's assigned a B3 rating to the new $75 million senior secured first lien term loan add-on. Moody's also revised the outlook to negative from stable. The rating actions follow ModivCare's incremental first lien term loan debt raise of $75 million that matures in January 2026. The transaction also includes an amendment to the credit agreement, which provides financial covenant relief. While this transaction adds cash to the balance sheet, it introduces a near-term debt maturity in the capital structure. Moody's expect the company's weak operating performance and liquidity will make the capital structure unsustainable, increasing the likelihood of a default. On January 9th, ModivCare also announced its intent to enter into an exchange agreement with some of its lenders to exchange $251 million of its unsecured notes into $251 million of new second lien secured PIK toggle notes. Moody's view the proposed exchange transaction as a distressed exchange, which is a default under Moody's Ratings' definition, and will append a "/LD" designation to the PDR to reflect the limited default in the capital structure following the close of the proposed exchange transaction. In addition, the company announced a purchase and exchange agreement with a shareholder to exchange $20 million of its unsecured notes holdings for the new second lien secured notes and to purchase an additional $30 million of second lien secured notes. This transaction is subject to shareholder approval. The B3 rating assigned to the $75 million senior secured first lien term loan add-on reflects its priority claim on assets relative to the unsecured notes. The outlook is negative. Moody's expect ModivCare's operating performance and cash flow generation to remain weak in the next 12-18 months. There is execution risk in the company's efforts to turnaround operations and grow earnings, creating uncertainty around the company's ability to address the near-term maturity of the new incremental term loan. Governance risk considerations, including financial strategy and risk management and management credibility and track record, were a key driver for this rating action. Aggressive financial policies, including consideration of the proposed exchange transaction and currently high leverage, elevate governance risk. As part of the recent announcement, ModivCare withdrew its 2024 guidance following a significant shortfall in fourth quarter earnings generation and an inability to comply with existing covenants, reflecting poor track record of achieving guided expectations. RATINGS RATIONALE ModivCare's Caa1 CFR reflects the company's high leverage, poor track record of meeting public guidance, and high reliance on Medicaid funding. ModivCare's operating performance has been challenged by the Medicaid redetermination process, which has reduced membership levels and subsequently increased utilization levels, negatively impacting margins due to the prevalence of shared risk contracting in the company's revenue mix. Issues achieving outlined cost savings initiatives in a timely fashion also constrain the ratings. The ratings benefit from ModivCare's significant market presence in non-emergency medical transportation (NEMT) and personal care services (PCS), as well as considerable scale with $2.8 billion in annual revenue generation. Moody's expect ModivCare to have weak liquidity over the next 12 to 18 months. While the incremental term loan add-on will fund cash to the balance sheet, the incremental term loan is a current obligation maturing in January 2026. Moody's expect ModivCare to continue generating negative free cash flow in 2025, ranging from negative $25-50 million, which will hinder its ability to repay the current maturity while complying with its covenants. External liquidity is limited—the company's $325 million revolver has outstanding borrowings totaling $228 million as of September 30, 2024. Moody's expect ModivCare to face challenges in complying with its maximum net leverage and minimum interest coverage covenants following the holiday through September 30, 2025. The company is undergoing a strategic review of its assets and may divest certain lines of business or monetize investments, providing some alternate liquidity. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be downgraded if the probability of default increases, including lack of confidence in repayment of the 2026 term loan maturity or the risk of a transaction Moody's would deem a distressed exchange increases. The ratings may be downgraded further if ModivCare's credit metrics continue to weaken, and the company's performance further deteriorates. The ratings could be upgraded if the company addresses its near-term maturity and improves liquidity, with reduction in reliance on the revolver. The ratings could also be upgraded with meaningful improvement operating performance, supported by successful transition of certain shared risk contracts to fee-for-service arrangements and execution of cost savings initiatives. ModivCare is the nation's largest provider of non-emergency medical transportation programs for state governments and managed care organizations. Within its personal care segment, the company is a leading provider of non-clinical home care services to Medicaid patient populations. Modivcare also provides personal emergency response systems, vitals monitoring and medication management. ModivCare generated approximately $2.8 billion in revenue for the twelve months ending September 30, 2024. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. MYA POS: Seeks to Tap Ford McDonald & Borden as Bankruptcy Counsel ------------------------------------------------------------------ MYA POS Services, LLC seeks approval from the U.S. Bankruptcy Court for the District of New Hampshire to employ Ford, McDonald & Borden, PA as counsel. The firm will render these services: (a) prepare schedules and the statement of financial affairs; (b) prepare, negotiate and prosecute a plan of reorganization; (c) deal with creditor issues, motions for relief from stay, assumption and rejection issues, utility matters, cash collateral matters and all other creditor facing issues and problems of a Debtor; (d) attend at the section 341 meeting, informal debtor interview and all matters associated with the United States Trustee's office; (e) assist with monthly operating reports and other mandatory reports and filings; (f) recovery of assets through appropriate Chapter 5 litigation; (g) defend the Debtor's possession of and right to use needed assets and cash; (h) employ appropriate professionals including financial adviser and accountant; (i) perform such other matters as may come to the Debtor's or counsel's attention. The firm will be paid at these hourly rates: Edmond Ford, Attorney $500 Marc McDonald, Attorney $375 Ryan Borden, Attorney $275 Paralegal $185 The firm received a pre-petition retainer of $7,500 from the Debtor. Mr. Ford 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: Edmond J. Ford, Esq. 10 Pleasant Street, Suite 400 Portsmouth, NH 03801 Telephone: (603) 373-1600 Email: rborden@fordlaw.com About MYA POS Services MYA POS Services, LLC, doing business as Gusanoz Mexican Restaurant, is a food service business located in Lebanon, N.H. MYA POS Services sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.H. Case No. 25-10010) on January 7, 2025. In its petition, the Debtor reports estimated assets up to $50,0000 and estimated liabilities between $1 million and $10 million. Ford, McDonald & Borden, PA represents the Debtor as counsel. NORTH LIBERTY: Gets Interim OK to Use Cash Collateral ----------------------------------------------------- North Liberty Transportation, LLC received interim approval from the U.S. Bankruptcy Court for the Northern District of Iowa for authority to use cash collateral. The company requires the use of cash collateral for payment of its post-petition expenses. Ally Bank and Ford Motor Credit Company, LLC assert an interest in the cash collateral. In consideration for the company's use of the cash collateral, the secured creditors will be granted a validly perfected first priority lien on and security interest in the company's post-petition collateral subject to superior liens in the collateral held by other creditors, if any, and the carve-out. In case of any diminution of value of the secured creditors' interests in the collateral, secured creditors will be granted a superpriority claim that will have priority in the company's bankruptcy case over all priority claims and unsecured claims. The carve-out will include any fees due to the U.S. Trustee and fees and expenses incurred by the company's professionals and approved by the court in an amount not to exceed $250,000. As additional protection, North Liberty Transportation will make post-petition monthly payments to each secured creditor except the merchant cash advance creditors in an amount equal to the amount paid pre-petition. About North Liberty Transportation North Liberty Transportation, LLC operates within the General Freight Trucking sector, providing transportation and logistics services for a variety of goods across various regions. North Liberty Transportation sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Iowa Case No. 25-00025) on January 9, 2025. In its petition, the Debtor reported total assets of $3,422,463 and total liabilities of $4,716,117. Siobhan Briley, Esq., at Pugh Hagan Prahm, PLC represents the Debtor as legal counsel. NORTHVOLT AB: Comm. Hires Advokatfirmaet Schjodt as Special Counsel ------------------------------------------------------------------- The official committee of unsecured creditors appointed in the Chapter 11 cases of Northvolt AB and its affiliates seeks approval from the U.S. Bankruptcy Court for the Southern District of Texas to employ Advokatfirmaet Schjodt AS, filial as special counsel. The firm will provide these services: (a) provide advice to the committee and analyze matters with respect to certain organizational agreements, operational contracts and credit documents; (b) provide advice to the committee and analyze matters with respect to any decision by the Debtors to pursue an in-court Swedish proceeding in parallel to these Chapter 11 cases, and, if such a Swedish proceeding is commenced, provide advice to the committee as required in connection therewith; (c) provide advice in connection with cross-border recognition and harmonization issues as to the United States and Swedish law; and (d) perform such other legal services as may be required or as otherwise deemed to be in the interests of the committee in accordance with its powers and duties. The firm will be compensated as follows: Partners $770 - $895 Senior Associates $640 - $760 Associates $400 - $590 Paraprofessionals and Trainees $170 - $300 In addition, the firm will seek reimbursement for expenses incurred. Eric Halvarsson, Esq., a partner at Advokatfirmaet Schjodt, also provided the following in response to the request for additional information set forth in Section D of the Revised U.S. Trustee Guidelines: Question: Did the firm agree to any variations from, alternatives to its standard billing arrangements for this engagement? Answer: The firm did not agree to any variations from, or alternatives to, its standard or customary billing arrangements for this engagement. The rates set forth herein and in the application are consistent with (i) market rates for comparable services and (ii) the rates that it charges and will charge other comparable Chapter 11 clients, regardless of the location of the Chapter 11 case. Question: Do any of the firm's professionals in the engagement vary their rate based on the geographical location of the Debtors' Chapter 11 cases? Answer: No rate for any of the firm's professionals included in this engagement varies based on the geographic location of the bankruptcy case. Question: If the firm has represented the committee in the 12 months prepetition, disclose its billing rates and material financial terms for the prepetition engagement, including any adjustments during the 12 months prepetition. If its billing rates and materials financial terms have changed postpetition explain the differences and the reasons for the difference. Answer: The firm did not represent the committee in these Chapter 11 cases prior to its retention by the committee. Question: Has the committee approved the firm's budget and staffing plan, and, if so, for what budget period? Answer: The firm expects to develop a budget and staffing plan to reasonably comply with the U.S. Trustee's request for information and additional disclosures, as to which it reserves all rights. Mr. Halvarsson 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: Eric Halvarsson, Esq. Advokatfirmaet Schjodt AS Tordenskiolds Gate 12 P.O. Box 2444 Solli NO-0201 Oslo, Norway Telephone: 47-22-01-88-00 About Northvolt AB Northvolt AB was established in 2016 in Stockholm, Sweden. Pioneering a sustainable model for battery manufacturing, the company has received orders from several leading automotive companies. The company is currently delivering batteries from its first gigafactory, Northvolt Ett, in Skelleftea, Sweden and from its R&D and industrialization campus, Northvolt Labs, in Vasteras, Sweden. On Nov. 21, 2024, Northvolt AB and eight affiliated debtors filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-90577). The cases are before the Honorable Alfredo R. Perez. Northvolt is being advised by Teneo as its restructuring and communications advisor. Kirkland & Ellis LLP, A&O Shearman and Mannheimer Swartling Advokatbyra AB are serving as legal counsel. The company has also engaged Rothschild & Co to run its marketing process. Stretto is the claims agent. On December 10, 2024, the United States Trustee for the Southern District of Texas appointed an official committee of unsecured creditors appointed in these Chapter 11 cases. The committee tapped Akin Gump Strauss Hauer & Feld LLP as counsel and Advokatfirmaet Schjodt AS, filial as its Swedish special counsel. NORTHVOLT AB: Committee Hires Akin Gump Strauss Hauer as Counsel ---------------------------------------------------------------- The official committee of unsecured creditors appointed in the Chapter 11 cases of Northvolt AB and its affiliates seeks approval from the U.S. Bankruptcy Court for the Southern District of Texas to employ Akin Gump Strauss Hauer & Feld LLP as counsel. The firm will provide these services: (a) advise the committee with respect to its rights, duties and powers in these Chapter 11 cases; (b) assist and advise the committee in its consultations and negotiations with the Debtors and other parties in interest relative to the administration of these Chapter 11 cases; (c) assist the committee in analyzing the claims of the Debtors' creditors and the its capital structure and in negotiating with holders of claims and equity interests; (d) assist the committee in its investigation of the acts, conduct, assets, liabilities and financial condition of the Debtors, certain of their other stakeholders, their insiders and of the operation of their businesses; (e) assist the committee in its analysis of, and negotiations with, the Debtors or any third party concerning matters related to, among other things, sales or other dispositions of their assets or businesses, the assumption or rejection of certain leases of non-residential real property and executory contracts, financing transactions, other transactions and the terms of one or more plans of reorganization and/or liquidation for them and accompanying disclosure statements and related plan documents; (f) assist and advise the committee as to its communications to the general creditor body regarding significant matters in these Chapter 11 cases; (g) represent the committee at all hearings and other proceedings before this court; (h) review and analyze applications, orders, statements of operations and schedules filed with the Court and advise the committee as to their propriety and, to the extent it deemed appropriate, support, join or object thereto; (i) advise and assist the committee with respect to any legislative, regulatory or governmental activities related to the Debtors and these Chapter 11 cases; (j) assist the committee in preparing pleadings and applications as may be necessary in furtherance of its interests and objectives; (k) assist the committee in its review and analysis of the Debtors' various agreements; (l) prepare, on behalf of the committee, any pleadings in connection with any matter related to the Debtors or these Chapter 11 cases; (m) investigate and analyze any claims belonging to the Debtors' estates; and (n) perform such other legal services as may be required or are otherwise deemed to be in the interests of the committee in accordance with its powers and duties. The firm will be paid at these hourly rates: Partners $1,625 - $2,495 Senior Counsel $1,145 - $1,900 Counsel $1,360 - $1,675 Associates $895 - $1,310 Paralegals $255 - $635 In addition, the firm will seek reimbursement for expenses incurred. Philip Dublin, Esq., a partner at Akin Gump Strauss Hauer & Feld, also provided the following in response to the request for additional information set forth in Section D of the Revised U.S. Trustee Guidelines: Question: Did the firm agree to any variations from, alternatives to its standard billing arrangements for this engagement? Answer: Akin did not agree to any variations from, or alternatives to, its standard or customary billing arrangements for this engagement. The rates set forth herein and in the application are consistent with (i) market rates for comparable services and (ii) the rates that Akin charges and will charge other comparable chapter 11 clients, regardless of the location of the Chapter 11 case. Question: Do any of the firm's professionals in the engagement vary their rate based on the geographical location of the Debtors' Chapter 11 cases? Answer: No rate for any of the professionals included in this engagement varies based on the geographic location of the bankruptcy case. Question: If the firm has represented the committee in the 12 months prepetition, disclose its billing rates and material financial terms for the prepetition engagement, including any adjustments during the 12 months prepetition. If its billing rates and materials financial terms have changed postpetition explain the differences and the reasons for the difference. Answer: Akin did not represent the committee in these Chapter 11 cases prior to its retention by the committee. Question: Has the committee approved the firm's budget and staffing plan, and, if so, for what budget period? Answer: Akin expects to develop a budget and staffing plan to reasonably comply with the U.S. Trustee's request for information and additional disclosures, as to which Akin reserves all rights. Mr. Dublin 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: Philip C. Dublin, Esq. Akin Gump Strauss Hauer & Feld LLP 2300 N. Field Street, Suite 1800 Dallas, TX 75201 Telephone: (214) 969-2800 About Northvolt AB Northvolt AB was established in 2016 in Stockholm, Sweden. Pioneering a sustainable model for battery manufacturing, the company has received orders from several leading automotive companies. The company is currently delivering batteries from its first gigafactory, Northvolt Ett, in Skelleftea, Sweden and from its R&D and industrialization campus, Northvolt Labs, in Vasteras, Sweden. On Nov. 21, 2024, Northvolt AB and eight affiliated debtors filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-90577). The cases are before the Honorable Alfredo R. Perez. Northvolt is being advised by Teneo as its restructuring and communications advisor. Kirkland & Ellis LLP, A&O Shearman and Mannheimer Swartling Advokatbyra AB are serving as legal counsel. The company has also engaged Rothschild & Co to run its marketing process. Stretto is the claims agent. On December 10, 2024, the United States Trustee for the Southern District of Texas appointed an official committee of unsecured creditors appointed in these Chapter 11 cases. The committee tapped Akin Gump Strauss Hauer & Feld LLP as counsel and Advokatfirmaet Schjodt AS, filial as its Swedish special counsel. NUEVA VISTA: Case Summary & Two Unsecured Creditors --------------------------------------------------- Debtor: Nueva Vista 2018 LLC 213 Park Ave Laguna Beach, CA 92651 Business Description: Nueva Vista 2018 is the fee simple owner of the property located at 1248 S. Santa Fe Avenue, Vista, CA, with an estimated current value of $5.6 million. Chapter 11 Petition Date: January 21, 2025 Court: United States Bankruptcy Court Central District of California Case No.: 25-10166 Judge: Hon. Theodor Albert Debtor's Counsel: James Mortensen, Esq. SOCAL LAW GROUP, PC 2855 Michelle Drive 120 Irvine CA 92606 Tel: 213-387-7414 Email: pimmsno1@aol.com Total Assets: $5,600,000 Total Liabilities: $7,542,053 The petition was signed by D. Scott Abernethy as manager. A full-text copy of the petition, which includes a list of the Debtor's two unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/L66AEIQ/Nueva_Vista_2018_LLC__cacbke-25-10166__0001.0.pdf?mcid=tGE4TAMA NUEVA VISTA: Seeks Chapter 11 Bankruptcy Protection in California ----------------------------------------------------------------- On January 21, 2025, Nueva Vista 2018 LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Central District of California. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Nueva Vista 2018 LLC Nueva Vista 2018 LLC is a construction company headquartered in Laguna Beach, California. Nueva Vista 2018 LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal.Case No. 25-10166) on January 21, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Theodor Albert handles the case. The Debtor is represented by: James Mortensen, Esq. Socal Law Group, PC 2855 Michelle Drive 120 Irvine CA 92606 Tel: 213-387-7414 E-mail: pimmsno1@aol.com NUTRACAP HOLDINGS: Files Emergency Bid to Use Cash Collateral ------------------------------------------------------------- Nutracap Holdings, LLC asked the U.S. Bankruptcy Court for the Northern District of Georgia, Atlanta Division, for authority to use cash collateral. The company requires the use of cash collateral for general operational and administrative expenses. Its budget shows projected total expenses of $1.2 million for the period from Jan. 14 to Feb. 14. First Horizon Bank asserts liens on the company's cash collateral based on a $5 million revolving loan and a $12 million term loan. As adequate protection, First Horizon will be granted a replacement lien on post-petition collateral of the same kind, extent, and priority as the liens existing pre-petition. First Horizon Bank, as lender, is represented by: Erich N. Durlacher, Esq. BURR & FORMAN LLP 1075 Peachtree Street N.E., Suite 3000 Atlanta, Georgia 30309 Telephone: (404) 685-4313 Facsimile: (404) 214-7387 Email: edurlacher@burr.com About Nutracap Holdings Nutracap Holdings, LLC is a manufacturer of nutraceuticals and dietary supplements in Norcross, Ga. Nutracap Holdings sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-50430) on January 14, 2025, with up to $50 million in both assets and liabilities. Marcos Fabio Lopes e Lima, chief executive officer of Nutracap Holdings, signed the petition. Judge Lisa Ritchey Craig oversees the case. William Rountree, Esq., at Rountree, Leitman, Klein & Geer, LLC, represents the Debtor as legal counsel. ODYSSEY PREPARATORY: S&P Affirms 'BB-' Rating on 2017/2019 Bonds ---------------------------------------------------------------- S&P Global Ratings revised its outlook to negative from stable and affirmed its 'BB-' long-term rating on the Arizona Industrial Development Authority's series 2017 and 2019 education facility revenue and refunding bonds, issued on behalf of Odyssey Preparatory Academy. "The outlook revision reflects our view of Odyssey's recent weakening operating performance and our expectation for deficit operations and weak lease-adjusted maximum annual debt service (MADS) coverage in fiscal years 2024 and 2025, primarily as a result of modest enrollment declines coupled with an elevated expense base, which could lead to declines in liquidity to levels close to the 45 days' cash on hand covenant," said S&P Global Ratings credit analyst Sadie Mazzola. As of fiscal 2023, Odyssey had $87.2 million in debt outstanding consisting of the series 2017 and 2019 bonds, as well as three notes payable for stadium lights, vehicles, and Chromebooks totaling approximately $98,000. Odyssey also maintains nominal leases for administrative space, which S&P has not included in the school's total debt metrics because of their relatively small size. The series 2017 and 2019 bonds are on parity with the 2017 bonds and are secured by pledged revenue of all the school's campuses, consisting primarily of per-pupil funding from the state. OFFICE PROPERTIES: Moody's Affirms 'Caa3' CFR, Outlook Negative --------------------------------------------------------------- Moody's Ratings affirmed Office Properties Income Trust's ("OPI") Corporate Family Rating at Caa3. Moody's also assigned a Caa2 rating to OPI's new senior secured notes due 2027. Concurrently, Moody's downgraded the rating on OPI's existing senior secured notes due March 2029 to Caa2 from Caa1, and the rating on OPI's senior secured exchange notes due September 2029 to Caa3 from Caa2. The ratings on the REIT's unsecured notes and senior unsecured shelf were affirmed at Ca and (P)Ca respectively. The outlook is negative. The actions follow OPI's recently concluded debt exchange transaction which saw it exchange around $340 million of 2025 unsecured notes for a new $445 million secured notes due March 2027. The downgrade of the existing senior secured notes reflects the change in capital structure mix towards more secured debt relative to unsecured debt, following the refinancing of the 2025 unsecured note with secured debt. RATINGS RATIONALE OPI's Caa3 CFR continues to reflect the REIT's high financial leverage and operating risks. While the recent refinancing alleviates imminent default risk, OPI's liquidity profile remains weak and reliant on asset sales in the medium term, as reflected in the current SGL-4 rating. OPI has a good sized portfolio, with about $4.3 billion of gross assets albeit of mixed quality. It has a good quality tenant roster with a high percentage of investment grade-rated tenants. The downgrade of the senior secured notes reflects the changes in the capital structure and the mix of secured to unsecured debt. Following the most recent refinancing, the large majority of OPI's debt is made up of secured facilities. The recent refinancing transaction will increase the company's leverage to around 8.3x at year end 2024, pro-forma for the new debt. Moody's expect fixed charge coverage to remain at or around 1.2x in the coming year. Additional credit challenges include OPI's mixed asset quality and difficult office leasing conditions due to a weak macroeconomic environment and the evolving transition to a hybrid work environment. In addition, OPI has material leases coming up, with 14% of annualized rental income expiring by the end of 2025. Moody's also view OPI's external management structure as a credit challenge, creating potentially significant conflicts of interest between investors and management. While imminent liquidity needs have been addressed through the exchange transaction, OPI's SGL-4 rating reflects the REIT's ongoing weak medium-term liquidity profile. With little to no revolver availability and no secured debt capacity, OPI's liquidity management relies on asset sales. The negative outlook reflects Moody's concerns over the long-run viability of the REIT's capital structure, despite the alleviation of near term liquidity pressures. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade is unlikely given the negative outlook, but longer term would require stable operating metrics, adequate liquidity and improved recovery expectations. Ratings could be downgraded if liquidity deteriorates further for any reason or if the probability of default, including a financial restructuring or distressed exchange, increases for any reason or expected overall recovery levels decline. Office Properties Income Trust is a real estate investment trust that owns and operates office buildings in select markets throughout the Unites States. Gross Assets were roughly $4.3 billion as of September 30, 2024. The principal methodology used in these ratings was REITs and Other Commercial Real Estate Firms published in February 2024. OSTERIA DEL TEATRO: Gets Final OK to Use Cash Collateral -------------------------------------------------------- Osteria Del Teatro, LLC received final approval from the U.S. Bankruptcy Court for the Southern District of Florida, Miami Division to use cash collateral retroactive to the petition date. The final order authorized the company to use cash collateral to pay expenses in the ordinary course of its business as set forth in its budget. Osteria Del Teatro may exceed any line item on the budget by 10% or more as long as the total of all amounts in excess of all line items does not exceed 10% of the total budget. Secured creditors were granted replacement liens to the same extent and with the same priority as their pre-bankruptcy liens as security for all indebtedness owed to them. The use of cash collateral provisions in the final order remain in effect until otherwise ordered by the court. About Osteria Del Teatro Osteria Del Teatro, LLC operates the Italian restaurant Osteria Del Teatro in North Bay Village, Fla. Osteria Del Teatro sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-20959) on October 22, 2024, with up to $50,000 in assets and up to $1 million in liabilities. Gilberto Gonzalez, president of Osteria Del Teatro, signed the petition. Judge Robert A. Mark oversees the case. The Debtor is represented by: Bradley S. Shraiberg, Esq. Samuel W. Hess, Esq. Shraiberg Page P.A. 2385 N.W. Executive Center Drive, Suite 300 Boca Raton, FL 33431 Tel: (561) 443-0800 Fax: (561) 998-0047 Email: bss@slp.law shess@slp.law OVATION PARENT: S&P Affirms 'B' Issuer CR, Outlook Stable --------------------------------------------------------- S&P Global Ratings affirmed its 'B' issuer credit rating on Ovation Parent Inc. (d/b/a Arxis). At the same time, S&P assigned its 'B' issue-level rating and '3' recovery rating to the company's proposed first-lien term loan being issued by Kaman Corporation. The stable outlook reflects S&P's expectation that the company's S&P Global Ratings-adjusted debt to EBITDA will be between 5x and 6x through 2026. Arxis is seeking to refinance its existing debt and make a distribution to shareholders. The company plans to fund the debt repayment and pay a distribution to shareholders with a $2.65 billion first-lien term loan. The company will also have access to a $400 million revolving credit facility and a $250 million delayed-draw term loan for additional liquidity and potential future acquisitions. Arcline expects that the consolidated capital structure will lower financing costs, and the combined business units that comprise Arxis will operate more efficiently. The affirmation reflects Arxis' modest size, high leverage, sponsor ownership, and favorable margins. S&P said, "Given the bespoke and proprietary nature of its product offerings, Arxis doesn't have many direct peers, but at about $1.4 billion-$1.5 billion of annual revenue, it is among the smallest aerospace and defense (A&D) companies we rate. With S&P Global Ratings-adjusted EBITDA margins between 29% and 33% throughout our forecast, we project Arxis to exhibit significantly stronger profitability than most A&D companies. We forecast debt to EBITDA to be in the high-5x area in 2025, declining slightly in 2026 as earnings grow, but ultimately determined by financial policy." Arxis provides proprietary sole-sourced products, which keeps customers coming back. Advanced engineering know-how is a key differentiator and source of Arxis's competitive advantage. The company's ability to meet challenging specifications, including with proprietary technologies such as KAron and Kryoflex, helps the company win new business. The Federal Aviation Administration certification process for aircraft components is rigorous and once an Arxis product is certified, business becomes very sticky. This and the ongoing relationships between the company and its commercial airframer and prime defense contractor customers make repeat business highly likely. Arxis's components, whether they are electronic or mechanical, are engineered to function in the harshest conditions in aircraft engines, rockets, and satellites. Their highly specific nature, combined with the use of proprietary technologies, makes them very valuable to customers. Given that these small components are a relatively small portion of the total cost of their respective platforms, customers are more likely to absorb higher prices. This, combined with most sales not being subject to long-term contracts, creates significant pricing power for Arxis. With the majority of Arxis's costs being workforce and raw materials, the company can be very flexible with its cost structure as business levels fluctuate. These factors combine to create EBITDA margins in the low-30% area. Financial policy will be a determining factor in the rating's upside. A growing topline with improving margins could lead to stronger credit metrics. The amount to which they improve could depend on management's and owner Arcline's financial policy. S&P said, "We forecast free cash flow of $190 million-$210 million in 2025, improving to $220 million-$250 million in 2026 as the company increases revenue through modest new platform wins and strategic pricing initiatives. As earnings and cash flow grow, the company could seek additional growth through debt-funded acquisitions or opt to take cash out of the company in the form of a dividend. Management's willingness and commitment to maintaining debt to EBITDA comfortably below 5x will be a key factor in the rating moving forward. We think leverage reduction is more likely to be a product of earnings growth than significant debt reduction." The stable outlook reflects our expectation that S&P Global Ratings-adjusted debt to EBITDA will be between 5x and 6x over the next two years while financial policy potentially limits improvement in credit metrics as earnings grow. S&P could lower its ratings on Arxis if debt to EBITDA rose above 7x or free cash flow approached breakeven, and it expected either to remain there. This could occur if: -- Arxis lost several key contracts and revenue declined significantly; -- Investments in new programs and business integration were more significant than expected and hindered profitability; or -- The company engaged in an aggressive financial policy through large acquisitions or owner dividends. S&P could raise the rating on Arxis if the company's debt to EBITDA declined well below 5x and the sponsor showed a commitment to maintaining credit metrics at this level. This could occur if: -- The business integration continued smoothly, and the combined company generated higher-than-expected revenue; -- EBITDA margins expanded more than forecast due to a combination of cost reductions and pricing strategy; -- The company used excess cash flows to repay debt before scheduled amortization; and -- The sponsor committed to maintaining improved credit ratios, even with potential acquisitions or dividends. PARKERVISION INC: Awards $450K Discretionary Bonuses to CEO and CFO ------------------------------------------------------------------- Parkervision, Inc., filed a Form 8-K with the Securities and Exchange Commission, disclosing that on Jan. 15, 2025, the Compensation Committee of the Board of Directors awarded one-time discretionary cash bonuses of $350,000 to Jeffrey Parker, the company's chief executive officer, and $100,000 to Cynthia French, the company's chief financial officer. The Company stated that the bonuses were awarded in recognition of Mr. Parker's leadership in patent litigation and financial stability efforts, and Ms. French's role in ensuring regulatory compliance and reducing costs for outside professional services. The bonuses also partially offset voluntary 20% reductions in their base salaries since mid-2018 as part of their efforts to support the Company during a period of significant challenges. The bonuses reflect the Compensation Committee's intent to appropriately compensate these executives for their leadership and sustained commitment to advancing the Company's goals. About ParkerVision Jacksonville, Fla.-based ParkerVision, Inc. invents, develops and licenses cutting-edge, proprietary radio-frequency (RF) technologies that enable wireless solution providers to make and sell advanced wireless communication products. ParkerVision has invested in research, development and marketing of its patented RF receiver and transmitter technologies to enable ultra-small semiconductor chips to deliver high-performance wireless communications for Smartphones, WiFi products, Bluetooth devices, satellite communications, and other wireless communication applications. MSL, P.A., the Company's auditor since 2019 and based in Fort Lauderdale, Fla., issued a "going concern" qualification in its report dated March 21, 2024. The qualification cited the Company's insufficient resources to meet its liquidity needs for the next 12 months, its history of recurring losses from operations, and its net capital deficiency, all of which raise substantial doubt about its ability to continue as a going concern. PEPPER PALACE: Saratoga Marks $2.4MM Loan at 44% Off ---------------------------------------------------- Saratoga Investment Corp has marked its $2,400,000 loan extended to Pepper Palace, Inc to market at $1,349,520 or 56% of the outstanding amount, according to a disclosure contained in Saratoga's Amended Form 10-Q for the Quarterly period ended November 30, 2024, filed with the Securities and Exchange Commission. Saratoga is a participant in a First Lien Term Loan to Pepper Palace, Inc. The Loan accrues interest at a rate of 4.42% Payment In Kind) per annum. The loan matures on December 31, 2028. Saratoga said the Loan was on non-accrual status as of November 30, 2024. Saratoga Investment Corp is a non-diversified closed-end management investment company incorporated in Maryland that has elected to be treated and is regulated as a business development company under the Investment Company Act of 1940, as amended. Saratoga is led by Christian L. Oberbeck, Founder, Chief Executive Officer; and Henri J. Steenkamp, Chief Financial Officer and Chief Compliance Officer. The Fund can be reach through: Christian L. Oberbeck Saratoga Investment Corp 535 Madison Avenue New York, NY 10022 Tel. No.: (212) 906-7800 Pepper Palace, Inc. is a specialty food retailer. PH BEAUTY: Moody's Upgrades CFR to 'B3' & Alters Outlook to Stable ------------------------------------------------------------------ Moody's Ratings upgraded pH Beauty Holdings III, Inc.'s Corporate Family Rating to B3 from Caa1, and its Probability of Default Rating to B3-PD from Caa1-PD. At the same time, Moody's assigned the B3 ratings to the company's backed senior secured first lien bank credit facilities due 2027. The first lien senior secured facilities consist of a $15 million revolving credit facility expires in June 2027 and an approximately $425 million first lien term loan (upsized from $272 million remaining balance) due in September 2027. The proceeds from the upsized first lien senior secured term loan will be used to repay all the remaining second lien term loan, pay a $96 million dividend, and the related fees and expenses. The ratings on the existing senior secured term loans and revolving credit facility are unchanged and will be withdrawn at transaction close. The rating outlook is changed to stable from positive. The CFR upgrade reflects that the maturity extension materially reduces the company's default risk in the next 2 years. The B3 CFR also reflects pH Beauty's improved operating performance supported by the strong growth of its skincare brand Byoma, a better cost structure as a result of the company's cost saving initiatives, and adequate liquidity including positive free cash flow and no near term refinancing risks. These positives are offset by the company's aggressive financial strategy which included a $96 million dividend payout in fiscal 2025. It also reflects Moody's expectation that Moody's debt-to-EBITDA leverage will fall below 5x in the next 12 months. Nevertheless, strategic uncertainties remain as the company continues to explore brand divestitures. While debt repayment with cash proceeds from a successful sale would likely be credit positive, the final amount and use of proceeds would need to be considered. Moreover, if any debt remains outstanding after such a sale, Moody's would then need to evaluate the remaining business including its smaller scale, more limited brand diversity, its capital structure, growth prospects and cash generation potential. In addition, the majority of its suppliers are outside North America and a significant portion is sourced from China. Although the company is actively diversifying its venders, any tariff can potentially have significant impact on the company's cost structure. The B3 ratings on the new first lien senior secured bank credit facility, in line with the B3 CFR, reflects the elimination of the loss absorption cushion provided by the refinanced second lien term loan as well as the upsize of the first lien term loan. The first lien senior secured bank credit facility will represent the preponderance of debt in the capital structure. RATINGS RATIONALE The B3 CFR reflects pH Beauty's small scale, moderately high leverage, and modestly positive FCF generation. Although Moody's anticipate the majority of the proceeds from any brand divestitures will be used to repay debt, strategic uncertainty remains about the asset makeup following any potentially brand divestitures. Moreover, the company sources most of its products outside North America. Although the company is actively diversifying its suppliers, any material changes in tariff could potentially hurt the company's cost structure. Moody's view financial policies as aggressive under private equity control and Moody's believe event risks related to shareholder distributions persist following the proposed debt-funded dividend. pH Beauty expanded to skincare and introduced Byoma brand in 2022. Since then, the company has enjoyed double-digit sales growth in this brand, mainly through new product introduction and expansion of distribution. Moody's view the company's other businesses as more discretionary and less attractive than skin care. Consumers are more likely to cut spending on beauty tools/accessories such as makeup brushes, and on sunless tanning products and bath accessories in an economic downturn. Moreover, the cosmetic accessories and facial skin care industries are highly competitive with many branded product companies that are significantly larger, more diverse, financially stronger, and which have much greater investment capacity. pH Beauty's rating is supported by the company's strong brand name recognition in niche markets, solid demand in beauty and cosmetics, and the company's category expansion to skincare. As of September 30, 2024, debt-to-EBITDA was 5.4x pro forma for the proposed transaction. Assuming no changes in the business mix, Moody's expect pH Beauty's debt-to-EBITDA to decline to a low 4.0x in the next 12-18 months as the company continues to introduce new products, expand its distribution channels, and grow its international business. A comprehensive review of all credit ratings for the respective issuer(s) has been conducted during a rating committee. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The stable outlook reflects Moody's view that pH Beauty will continue to maintain its credit metrics over the next 12-18 months assuming no change in business mix and the potential tariff is manageable. The stable outlook also assumes that the company will maintain at least adequate liquidity include positive free cash flow. The ratings could be downgraded if pH Beauty experiences customer or competitor actions that pressure revenues and earnings, significant cost impact from any potential tariff or if it fails to generate positive free cash flow. Acquisitions, shareholder distributions, earnings weakness or other actions that materially increases the company's leverage, or a deterioration in liquidity could also result in a downgrade. An upgrade could be considered if pH Beauty demonstrates a track record of profitable growth, reduces Moody's adjusted debt-to-EBITDA to below 4.5x, and maintains good liquidity including FCF/debt sustained above 5%. The principal methodology used in these ratings was Consumer Packaged Goods published in June 2022. pH Beauty is a designer of cosmetic accessories, bath accessories, sunless tanning and facial skin care products. Key brands include Real Techniques, EcoTools, Freeman, Tan-luxe, Isle of Paradise, Tanologist, and BYOMA. Yellow Wood Partners acquired the company in 2017 and the company acquired Paris Presents in 2018. pH Beauty generated $370 million in revenue for the 12 months ending September 30, 2024. PLANET HOLDCO 2: S&P Alters Outlook to Negative, Affirms 'B' ICR ---------------------------------------------------------------- S&P Global Ratings revised its outlook to negative from stable and affirmed all its ratings on Planet Holdco 2 Ltd.'s (doing business as Wood Mackenzie), including the 'B' issuer credit rating. The negative outlook reflects the likelihood that S&P could lower its ratings if leverage remains elevated and cash flow declines more than we anticipate in the coming quarters. S&P said, "Wood Mackenzie's operating performance since separating from Verisk has lagged our expectations. We previously expected revenue growth of about 10% but have revised our forecast to the low- to mid-single digit growth for the next two years. The company has faced lower growth in its commodities and power and renewables sector and has had challenges within its consulting segment due to salesforce attrition. The costs tied to the Verisk separation have further burdened earnings more than previously expected, and we have revised our forecast for EBITDA margins in the high-20% area for the next year. We believe EBITDA margins could improve as the company cycles off the separation costs and benefits from business improvement initiatives. "We do not expect significant deleveraging due to negligible cash flow generation. Wood Mackenzie has continued to invest in product offerings and software development for its Lens customer-facing data platform, and we expect capital expenditures (capex) to be elevated at $70 million, which constrains cash flow generation. We think deleveraging will likely be propelled by EBITDA growth as opposed to debt repayment, given our cash flow forecast. We believe financial sponsor ownership will limit the company pursuing prudent financial risk policies, given the tendency for financial sponsors to distribute cash to shareholders." High recurring revenue, contract wins, and favorable industry tailwinds could drive operating momentum. Wood Mackenzie has highly recurring revenue with about 92% coming from annual and multiyear contracts, which we believe represents a small but strategically important expense for its clients. The company's long-tenured relationships with its customers, large proprietary data base, and technology platform create a sticky revenue base. As a global provider of research and data analytics in the energy sector, we expect shifts in trends toward renewable energy to elevate demand for Wood Mackenzie and lead to opportunities for sustainable future growth. The negative rating outlook reflects S&P's expectations that operating performance could weaken due to operational challenges leading to leverage above 7.5x. It also envisions cash flow pressures stemming from high capex due to product investment. S&P could lower the rating if weaker-than-expected earnings resulted in leverage above 7.5x and free operating cash flow (FOCF) to debt remaining in the low-single digits. This could occur if: -- Wood Mackenzie experiences persistent margin pressure or operational issues; -- Increased competition leads to declining revenue from pricing pressure or loss of business; or -- The company pursues leveraging acquisitions or debt-funded dividends. S&P could revise the outlook to stable if the company develops a track record of good operating performance and EBITDA growth. It would also expect management and the financial sponsor to demonstrate prudent financial policies such that adjusted debt to EBITDA remains below the 7.5x area and FOCF to debt is in the mid-single digit percent area. PLAZA MARIACHI: Seeks to Tap B. Riley Advisory as Financial Advisor ------------------------------------------------------------------- Plaza Mariachi, LLC seeks approval from the U.S. Bankruptcy Court for the Middle District of Tennessee to employ GlassRatner Advisory & Capital Group, LLC, doing business as B. Riley Advisory Services, as financial advisor. The firm will render these services: (a) evaluate the Debtor's current operations, business plan and go-forward business strategy; (b) analyze the Debtor's historical financial performance and operating structure; (c) assist the Debtor with reviewing, evaluating and analyzing financial ramifications of proposed transactions for which it may seek court approval; (d) assist the Debtor in negotiating with various stakeholders; (e) assist the Debtor and bankruptcy counsel in the development of a proposed plan of reorganization and the confirmation process; (f) assist with the development of multi-year financial projections that reflect the Debtor's go-forward business strategy and incorporate the terms and conditions of the proposed plan of reorganization; (g) render testimony with respect to the reasonableness of the multi-year financial projections prepared and the feasibility of the Debtor's proposed plan of reorganization based on said financial projections; and (h) perform such other tasks/duties that fall within the customary responsibilities of a Chapter 11 Debtor's financial advisor as may requested by it or bankruptcy counsel and agreed to by the financial advisor. The firm will be paid at a these hourly rates: Senior Managing Directors $600 - $675 Bill Hughes, Managing Director $550 Managing Directors $425 - $595 Other Professionals $275 - $495 In addition, the firm will seek out-of-pocket expenses incurred. The firm received a $20,000 retainer from non-debtor PM Realty Nashville, LLC. Mr. Hughes 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: Bill Hughes B. Riley Advisory Services 11100 Santa Monica Blvd., Suite 800 Los Angeles, CA 90025 Telephone: (310) 966-1444 Facsimile: (310) 966-1448 About Plaza Mariachi LLC Plaza Mariachi is a Single Asset Real Estate debtor (as defined in 11 U.S.C. Section 101(51B)). Plaza Mariachi LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Tenn. Case No. 24-02441) on July 1, 2024, listing $10 million to $50 million in both assets and liabilities. The petition was signed by Mahan Mark Janbakhsh, member/manager. Judge Charles M. Walker oversees the case. The Debtor tapped Sean C. Wlodarczyk, Esq. at Evans, Jones & Reynolds, PC as counsel and GlassRatner Advisory & Capital Group, LLC, doing business as B. Riley Advisory Services, as financial advisor. PRIMAL MATERIALS: Hires McKinney Tax Professionals as Accountant ---------------------------------------------------------------- Primal Materials, LLC and Primal Crushing, LLC seek approval from the U.S. Bankruptcy Court for the Northern District of Texas to employ McKinney Tax Professionals, LLC as accountant. The firm will render these services: (a) assist with filings for the instant bankruptcy proceedings; (b) perform bookkeeping services and review of chart of accounts; (c) prepare delinquent and current federal and state tax returns and information reports; (d) assist clean-up of financial statements; and (e) provide such other reasonable and necessary accounting and financial services as may be agreed upon by the parties. The firm will be paid at these following flat fee rates: (a) Primal Materials, LLC (i) accounting and payroll at $500 per month; (ii) schedule C at $500; (iii) franchise tax at $110. (b) Primal Crushing, LLC (i) accounting at $500 per month; (ii) 1065 tax return at $750; (iii) Quickbooks set up fee at $1,500. In addition, the firm will seek reimbursement to expenses incurred. Jennifer Elliott, a certified public accountant at McKinney Tax Professionals, 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: Jennifer Elliot, CPA McKinney Tax Professionals, LLC 1101 Butternut St. Abilene, TX 79602 Telephone: (325) 677-6136 Email: office@mckinneytaxprofessionals.com About Primal Materials Primal Materials, LLC is a locally owned and operated company, providing dirt moving and excavation services for ranchers and new construction sites in the Big Country surrounding Abilene, Texas. Primal Materials and Primal Crushing, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 24-10217) on December 12, 2024. In the petitions signed by Victor John Hirsch, III, member/manager, Primal Materials disclosed up to $500,000 in assets and up to $10 million in liabilities. The Debtors tapped Joseph F. Postnikoff, Esq., at Rochelle McCullough, LLP as counsel and McKinney Tax Professionals, LLC as accountant. PROFESSIONAL SECURITY: Gets Final OK to Use Cash Collateral ----------------------------------------------------------- Professional Security Enterprises Incorporated received final approval from the U.S. Bankruptcy Court for the Southern District of Indiana, Terre Haute Division to use cash collateral to pay its operating expenses. The final order approved the use of cash collateral for the period from Nov. 14, 2024 through April 1 or through the date of confirmation of the company's Chapter 11 plan, whichever comes first. The company's budget shows total projected expenses of $413,265 for the period from Jan. 1 to April 1. The company is not allowed to utilize the cash collateral for any fees and expenses incurred by the company or its professionals related to the prosecution of claims, causes of action or adversary proceedings against Old National Bank and the Internal Revenue Service. As adequate protection, Old National Bank and the IRS were granted replacement liens on the cash collateral and post-petition property of the company. In addition, Old National Bank and IRS will receive monthly payments of $1,500 and $7,500, respectively. About Professional Security Enterprises Incorporated Professional Security Enterprises Incorporated sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ind. Case No. 24-80461) on November 14, 2024, with $0 to $50,000 in assets and $500,001 to $1 million in liabilities. Judge Jeffrey J. Graham presides over the case. The Debtor is represented by: Jeffrey M. Hester, Esq. Hester Baker Krebs LLC Tel: 317-833-3030 Email: jhester@hbkfirm.com PURDUE PHARMA: Remaining Sackler Family Members Join Draft Deal --------------------------------------------------------------- Emlyn Cameron of Law360 reports that the final members of two Sackler family branches have agreed to participate in a settlement in Purdue Pharma LP's bankruptcy proceedings, according to a report from the co-mediators overseeing the talks. About Purdue Pharma LP Purdue Pharma L.P. and its subsidiaries -- http://www.purduepharma.com/-- develop and provide prescription medicines and consumer products that meet the evolving needs of healthcare professionals, patients, consumers and caregivers. Purdue's subsidiaries include Adlon Therapeutics L.P., focused on treatment for Attention-Deficit/Hyperactivity Disorder (ADHD) and related disorders; Avrio Health L.P., a consumer health products company that champions an improved quality of life for people in the United States through the reimagining of innovative product solutions; Imbrium Therapeutics L.P., established to further advance the emerging portfolio and develop the pipeline in the areas of CNS, non-opioid pain medicines, and select oncology through internal research, strategic collaborations and partnerships; and Greenfield Bioventures L.P., an investment vehicle focused on value-inflection in early stages of clinical development. Opioid makers in the U.S. are facing pressure from a crackdown on the addictive drug in the wake of the opioid crisis and as state attorneys general file lawsuits against manufacturers. More than 2,000 states, counties, municipalities and Native American governments have sued Purdue Pharma and other pharmaceutical companies for their role in the opioid crisis in the U.S., which has contributed to the more than 700,000 drug overdose deaths in the U.S. since 1999. OxyContin, Purdue Pharma's most prominent pain medication, has been the target of over 2,600 civil actions pending in various state and federal courts and other fora across the United States and its territories. On Sept. 15 and 16, 2019, Purdue Pharma L.P. and 23 affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 19-23649), after reaching terms of a preliminary agreement for settling the massive opioid litigation. The Debtors' consolidated balance sheet as of Aug. 31, 2019, showed $1.972 billion in assets and $562 million in liabilities. U.S. Bankruptcy Judge Robert Drain oversees the cases. The Debtors tapped Davis Polk & Wardwell, LLP and Dechert, LLP, as legal counsels; PJT Partners as investment banker; AlixPartners as financial advisor; and Grant Thornton, LLP as tax structuring consultant. Prime Clerk, LLC, is the claims agent. Akin Gump Strauss Hauer & Feld LLP and Bayard, P.A., represent the official committee of unsecured creditors appointed in the Debtors' bankruptcy cases. David M. Klauder, Esq., is the fee examiner appointed in the Debtors' cases. The fee examiner is represented by Bielli & Klauder, LLC. * * * U.S. Bankruptcy Judge Robert Drain in early September 2021 approved a plan to turn Purdue into a new company (Knoa Pharma LLC) no longer owned by members of the Sackler family, with its profits going to fight the opioid epidemic. The Sackler family agreed to pay $4.3 billion over nine years to the states and private plaintiffs and in exchange for a lifetime legal immunity. The deal resolves some 3,000 lawsuits filed by state and local governments, Native American tribes, unions, hospitals and others who claimed the company's marketing of prescription opioids helped spark and continue an overdose epidemic. Separate appeals to approval of the Plan have already been filed by the U.S. Bankruptcy Trustee, California, Connecticut, the District of Columbia, Maryland, Rhode Island and Washington state, plus some Canadian local governments and other Canadian entities. In early March 2022, Purdue Pharma reached a nationwide settlement over its role in the opioid crisis, with the Sackler family members boosting their cash contribution to as much as $6 billion. The settlement was hammered out with attorneys general from the eight states -- California, Connecticut, Delaware, Maryland, Oregon, Rhode Island, Vermont and Washington -- and D.C. who had opposed the previous settlement. REALTRUCK GROUP: S&P Rates New $525MM First-Lien Term Loan 'B-' --------------------------------------------------------------- S&P Global Ratings assigned its 'B-' issue-level rating and '3' recovery rating to RealTruck Group Inc.'s proposed $525 million non-fungible first-lien term loan due January 2028. The '3' recovery rating indicates its expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a default. S&P said, "This issuance does not materially affect our view of the company's credit quality and we view the new term loan as pari passu with its existing first-lien debt. Therefore, all of our existing ratings on RealTruck, including our 'B-' issuer credit rating and stable outlook and 'B-' issue-level rating and '3' recovery rating on its first-lien debt, are unchanged. The company will use the proceeds from this issuance to fund its acquisition of Vehicle Accessories Group (VAI), a supplier of floor mats, running boards, and other automotive accessories. "While we expect the transaction to be leverage neutral, we forecast RealTruck's debt to EBITDA will remain high in the upper-8x area as of the close of the transaction and above 7x through 2026. The company's leverage has been elevated since it was acquired by its current financial sponsor, L Catterton, in January 2021. At that time, RealTruck's S&P Global Ratings-adjusted EBITDA margins exceeded 20%, which compares with its EBITDA margins of roughly 17% for the trailing-12-months ended Sept. 30, 2024. The company's EBITDA margins have declined over the last couple of years due to a combination of weaker sales volumes--stemming from weaker consumer demand and increased competition in certain product categories--increased restructuring costs, and higher advertising spending. However, in 2025 and 2026 we expect RealTruck will improve its EBITDA margins to the 19%-20% range due to a combination of VAI's higher-margin revenue mix, as well as somewhat lower restructuring charges. While the company's selling, general, and administrative expenses will likely remain elevated as it seeks to increase its brand awareness, we anticipate it will start to realize some positive benefits from its restructuring actions. We forecast RealTruck will increase its organic sales volumes by only 3% annually over the next couple years because consumer demand remains somewhat weak, which it will partially offset with its incremental production capacity for higher-growth products. "The company's free operating cash flow (FOCF) was strained over the course of 2024 because of its weaker margins, increased working capital usage, and higher capital spending, which led to cash outflows of more than $50 million through the third quarter. In 2025, we forecast RealTruck will improve its operating cash flow on stronger margins and steadier working capital following the ramp-up of production at its Mexico facility. However, our assumption that the company's capital spending will remain elevated leads us to project only slight positive FOCF in 2025. We expect higher capital spending in 2025 (nearly 4% of revenue) because RealTruck is expanding select manufacturing lines to prioritize its high-volume products/stock-keeping units. After this year, we expect the company will reduce its capital spending back toward the 2.5%-3.0% of sales range annually, which will likely support improving FOCF." RealTruck's acquisition of VAI is consistent with management's strategy of expanding its product portfolio, gaining share in existing accessory categories, and entering desirable geographies. The company has a history of completing mergers and acquisitions (M&A) to expand its business and has already integrated two acquisitions under its current financial sponsor and management team (GoRhino and MountainTop). RealTruck's business model is differentiated from those many of its peers because it manufactures and assembles its products in North America. Since its acquisition of GoRhino in late-2023, the company has shifted more of its manufacturing to facilities located in Mexico, which has improved its gross margins due to the country's lower-cost labor (despite its EBITDA margins being offset by its lower volumes, higher restructuring costs, and increased marketing spending). This has differentiated RealTruck from its competitors that manufacture and import their products primarily from Asia and therefore face extended lead times, costly shipping container rates, and potentially higher tariffs under the new U.S. presidential administration. While there is heightened risk that the new U.S. administration will place tariffs on Mexican- and Canadian-made products, S&P believes the company's decision to manufacture products outside of the U.S. is sensible, given the sharply lower cost of labor in other regions. Still, RealTruck's larger in-house manufacturing footprint leads to a somewhat higher fixed-cost base that weighs on its profitability when its sales volumes decrease. RealTruck's ability to sustain its EBITDA margins will remain critical in determining its leverage and ability to generate FOCF, which will depend on the resilience of its business amid potentially weaker macroeconomic conditions, including persistent inflation, the possible imposition of higher tariffs on non-U.S. made goods, deferred discretionary spending, or challenges related to the integration of its acquisitions. S&P said, "Although we now forecast RealTruck will improve its profitability, we believe it will need to increase its margins to be at least in-line with our base-case assumptions to generate even minimally positive FOCF in 2025, given its increased capital spending this year." If the company's margins remain at 2024 levels or below, this could lead to further cash outflows in 2025 and would likely prompt us to take a negative rating action. To date, the company has adequately managed its sources of liquidity, including pro forma balance sheet cash of $18 million and nearly full access to a $235 million asset-based lending (ABL) revolver (net $1.5 million of undrawn letters of credit) as of the close of the transaction, with total liquidity of about $250 million. Furthermore, RealTruck does not face any near-term funded debt maturities until its first-lien term loan expires in January 2028, followed by its senior unsecured notes in January 2029. ISSUE RATINGS--RECOVERY ANALYSIS Key analytical factors -- S&P's simulated default scenario assumes a payment default in 2027 because of a combination of factors, including a sustained economic downturn that reduces consumer demand for new pickup trucks and Jeeps, lower-than-projected penetration for RealTruck's accessory products, intense pricing pressure from competitive actions by other manufacturers or raw material vendors, and the potential loss of one or more key distributor or installer customers. -- S&P expects these factors would reduce RealTruck's sales volumes, profitability, and cash flow, ultimately burdening its sources of liquidity. -- In the event of a payment default, S&P expects that the company would continue to have a viable business model because of its established brands and aftermarket products recognized by end users. Therefore, S&P believes the debtholders would achieve the greatest recovery value through reorganization rather than liquidation. Simulated default assumptions -- Year of default: 2027 -- EBITDA at emergence: $275 million -- Jurisdiction: U.S. -- SOFR of 250 basis points -- Standard 60% draw under the $235 million ABL revolver Simplified waterfall -- Gross enterprise value at default: $1,375 million -- Administrative costs: $69 million -- Net enterprise value: $1,306 million -- Valuation split (obligors/nonobligors): 85%/15% -- Priority claims: $143 million -- Total collateral value for secured debt: $1,095 million -- Total first-lien debt: $2,218 million --Recovery expectations: 50%-70% (rounded estimate: 50%) -- Total collateral value for unsecured debt: $69 million -- Unsecured debt claims (Including deficiency): $1,741 million --Recovery expectation: 0%-10% (rounded estimate: 0%) RED RIVER: Seeks to Extend Plan Exclusivity to May 19 ----------------------------------------------------- Red River Talc LLC asked the U.S. Bankruptcy Court for the Southern District of Texas to extend its exclusivity periods to file a plan of reorganization and obtain acceptance thereof to May 19 and July 18, 2025, respectively. The Debtor claims that this prepackaged Chapter 11 Case is not only large, but complex. As of the Petition Date, there were more than 60,000 ovarian or other gynecological cancer claims asserted against the Debtor in jurisdictions across the country. Based on available information, including votes received in connection with solicitation of the Initial Plan, there are thousands of additional unfiled ovarian or other gynecological cancer claims against the Debtor. The Debtor explains that the widespread support of majority of claimants, the Ad Hoc Committee of Supporting Counsel, the TCC and the FCR for the Second Amended Plan speaks to the Debtor's good faith progress towards confirmation and demonstrates that the requested extension of the Exclusive Periods is not sought as a means to exert pressure on parties in interest. The vast support for confirmation of the Second Amended Plan satisfies the third, fifth, sixth and seventh factors and weighs heavily in favor of granting the requested extension of the Exclusive Periods. The Debtor asserts that this Chapter 11 Case has been pending only for a few short months. During this short time, the Debtor has accomplished a great deal despite the complexity of this case and the efforts of the Coalition of Counsel for Justice for Talc Claimants to derail the Debtor's plan and this Chapter 11 Case. The Debtor continues to work diligently towards confirmation of the Second Amended Plan, which will be determined in the near term. The Debtor should be afforded the requested extension in order to maintain its exclusive right to seek confirmation of the Second Amended Plan. Further, an extension of the Exclusive Periods will not prejudice the Debtor's creditors. On the contrary, an extension of the Exclusive Periods will afford the Debtor a full and fair opportunity to achieve confirmation of the Second Amended Plan, which is supported by the vast majority of the Debtor's claimants. Proposed Attorneys for the Debtor: John F. Higgins, Esq. M. Shane Johnson, Esq. Megan Young-John, Esq. James A. Keefe, Esq. PORTER HEDGES LLP 1000 Main Street, 36th Floor Houston, Texas 77002 Telephone: (713) 226-6000 Facsimile: (713) 228-1331 Email: jhiggins@porterhedges.com sjohnson@porterhedges.com myoung-john@porterhedges.com jkeefe@porterhedges.com Gregory M. Gordon, Esq. Dan B. Prieto, Esq. Brad B. Erens, Esq. Amanda Rush, Esq. JONES DAY 2727 N. Harwood Street Dallas, Texas 75201 Telephone: (214) 220-3939 Facsimile: (214) 969-5100 Email: gmgordon@jonesday.com dbprieto@jonesday.com bberens@jonesday.com asrush@jonesday.com About J&J Talc Units LLT Management, LLC (formerly known as LTL Management LLC) was a subsidiary of Johnson & Johnson that 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 first 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. In the 2021 case, LTL Management 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, served as the claims agent. 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 Jan. 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. In August 2023, U.S. Bankruptcy Judge Michael Kaplan in Trenton, New Jersey, ruled that the second bankruptcy case should be dismissed. 3rd Try In May 2024, J&J announced its subsidiary LLT Management LLC is soliciting support for a consensual prepackaged bankruptcy plan 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. Claimants must cast their vote to accept or reject the Plan by 4:00 p.m. (Central Time) on July 26, 2024. A solicitation package may be requested at www.OfficialTalcClaims.com or by calling 1-888-431-4056. If the Plan is accepted by at least 75% of voters, a bankruptcy may be filed under the case name In re: Red River Talc LLC in a bankruptcy court in Texas or in the bankruptcy court of another jurisdiction. Epiq Corporate Restructuring, LLC is serving as balloting and solicitation agent for LLT. On Sept. 20, 2024, Red River Talc LLC filed a Chapter 11 bankruptcy petition (Bankr. S.D. Tex. Case No. 24-90505). Porter Hedges LLP and Jones Day serve as counsel in the new Chapter 11 case. Epiq is the claims agent. Paul Hastings LLP is counsel to the Ad Hoc Committee of Supporting Counsel. Randi S. Ellis is the proposed prepetition legal representative of future claimants. RED RIVER: Slams Beasley's Motion to Dismiss Talc Team-Up Lawsuit ----------------------------------------------------------------- Rose Krebs of Law360 reports that Smith Law Firm PLLC is urging a Mississippi federal court to reject Beasley Allen Law Firm's motion to dismiss or transfer a defamation and breach of contract lawsuit involving their joint venture for talc litigation against Johnson & Johnson, arguing the case should proceed in Mississippi rather than being replaced by Beasley Allen's Alabama lawsuit. About J&J Talc Units LLT Management, LLC (formerly known as LTL Management LLC) was a subsidiary of Johnson & Johnson that 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 first 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. In the 2021 case, LTL Management 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, served as the claims agent. 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 Jan. 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. In August 2023, U.S. Bankruptcy Judge Michael Kaplan in Trenton, New Jersey, ruled that the second bankruptcy case should be dismissed. 3rd Try In May 2024, J&J announced its subsidiary LLT Management LLC is soliciting support for a consensual prepackaged bankruptcy plan 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. Claimants must cast their vote to accept or reject the Plan by 4:00 p.m. (Central Time) on July 26, 2024. A solicitation package may be requested at www.OfficialTalcClaims.com or by calling 1-888-431-4056. If the Plan is accepted by at least 75% of voters, a bankruptcy may be filed under the case name In re: Red River Talc LLC in a bankruptcy court in Texas or in the bankruptcy court of another jurisdiction. Epiq Corporate Restructuring, LLC is serving as balloting and solicitation agent for LLT. On Sept. 20, 2024, Red River Talc LLC filed a Chapter 11 bankruptcy petition (Bankr. S.D. Tex. Case No. 24-90505). Porter Hedges LLP and Jones Day serve as counsel in the new Chapter 11 case. Epiq is the claims agent. Paul Hastings LLP is counsel to the Ad Hoc Committee of Supporting Counsel. Randi S. Ellis is the proposed prepetition legal representative of future claimants. RELIABLE HEALTHCARE: Claims to be Paid From Available Cash & Income ------------------------------------------------------------------- Reliable Healthcare Logistics, LLC, filed with the U.S. Bankruptcy Court for the Western District of Tennessee a Disclosure Statement describing Plan of Reorganization dated January 16, 2025. The Debtor, a Delaware corporation, is engaged in providing third party logistics services to customers in the healthcare industry, including, but not limited to manufacturers and distributors of pharmaceuticals and durable healthcare supplies and equipment. RHL's headquarters are based in Memphis, Tennessee and it operates its business at five warehouses located in Sugarland, Texas, Boca Raton, Florida, Pompano Beach Florida and Lockbourne, Ohio and Dayton, New Jersey. RHL was formed on March 4, 2022 for the purpose of entering into an interim management agreement with Woodfield Distribution, LLC, pending negotiations with WD for RHL to acquire WD’s assets. The Debtor believes that the interests of creditors will be best served if the Plan is approved and payments to creditors are made in accordance with the Plan. Class 10 consists of all allowed General Unsecured Non-Priority Claims who have not been provided for in another class, including, but not limited to, pre-petition trade creditors, unsecured creditors whose claims are listed in the Debtor's schedules but are not listed as disputed, contingent, or unliquidated and unsecured creditors who have filed proofs of claim for which no objections have been filed. Class 10 claims aggregate approximately $9,804,301.54. The Debtor reserves the right to object to any claim. Class 10 creditors, along with allowed Class 6,7, and 8 claims, shall receive quarterly pro rata payments from the Debtor's net cash flow and/or sale of assets. Such payments will commence the first quarter following satisfaction of rent arrearages owed to Classes 1 through 4 and after ongoing rent arrearage payments to Class 5. Such quarterly payments shall continue for the earlier of (a) 84 months following the Effective Date or (b) until the aggregate payments to Classes 6, 7, 8 and 10 equals $3.500,000. Class 10 is impaired. Class 11 consists of the interests of Reliable Healthcare Logistics Investments, LLC, the sole member of the Debtor. Reliable Healthcare Logistics Investments, LLC's pre-petition membership interest shall be extinguished on the Effective Date. Reliable Healthcare Logistics Investments, LLC shall contribute new capital to the reorganized Debtor in the amount of $500,000 in exchange for 100% of the membership interest in the reorganized Debtor. The capital contribution shall be paid in 12 equal monthly installments of $41,667 until such amount has been paid in full. On the Effective Date, the Debtor shall continue to operate its business. Mike Kattawar, Jr. shall remain as President and Chief Executive Officer of the Reorganized Debtor. The Debtor shall make payments to each class of creditors to the extent required under the Plan out of its existing cash, future Cash Flow, and capital infusions, if any, made to Debtor by a third party as necessary to satisfy Plan payments. The Debtor shall retain the right to market and sell the assets of the Reorganized Debtor during the term of the Plan. If the Debtor liquidates the remaining assets of the business, the net proceeds of sale shall be distributed in accordance with this Plan. A full-text copy of the Disclosure Statement dated January 16, 2025 is available at https://urlcurt.com/u?l=6we2Vt from PacerMonitor.com at no charge. Reliable Healthcare Logistics is represented by: Michael P. Coury, Esq. GLANKLER BROWN, PLLC Suite 400, 6000 Poplar Avenue Memphis, TN 38119 Tel: (901) 576-1886 Email: mcoury@glankler.com About Reliable Healthcare Logistics Reliable Healthcare Logistics, LLC is an independent 3PL recognized for developing cost effective, innovative supply chain solutions for complex logistics requirements in regulated industries. With over 650,000 total square feet, its 9 Reliable facility locations are dedicated to the secure and proper storage of pharmaceutical products, including prescription and over-the counter-medications, as well as providing services for medical device manufactures, cosmetics, human and animal health and wellness companies. The company is based in Memphis, Tenn. Reliable Healthcare Logistics filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. W.D. Tenn. 24-20252) on Jan. 19, 2024, with $1 million to $10 million in both assets and liabilities. Mike Kattawar, Sr., chief strategic officer, signed the petition. Judge Jennie D. Latta oversees the case. Michael P. Coury, Esq., at Glankler Brown, PLLC, is the Debtor's legal counsel. RIVERA FAMILY: Gets OK to Hire Pittman & Pittman as Counsel ----------------------------------------------------------- Rivera Family Holdings, LLC received approval from the U.S. Bankruptcy Court for the Western District of Wisconsin to employ Pittman & Pittman Law Offices, LLC as general bankruptcy counsel. The firm will render these services: (a) prepare liquidation analysis; (b) prepare the Chapter 11 plan; (c) prepare cash flow analysis, adequate protection agreements; and (d) represent all residual matters relating to the Chapter 11 proceedings until the confirmation of the Chapter 11 plan and related matters pre and post confirmation. The hourly rates of the firm's counsel and staff are as follows: Galen Pittman, Attorney $400 Greg Pittman, Attorney $325 Wade Pittman, Attorney $335 Paralegal $100 The firm received a $1,738 retainer, which was applied as a filing fee. Galen Pittman 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: Galen W. Pittman, Esq. Pittman & Pittman Law Offices, LLC 712 Main Street La Crosse, WI 54601 Telephone: (608) 784-0841 Email: Info@PittmanandPittman.com About Rivera Family Holdings Rivera Family Holdings LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wis. Case No. 24-12559) on December 20, 2024. In the petition filed by Lynnae Rivera and Filiberto Rivera, partners, the Debtors report estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Catherine J. Furay handles the case. The Debtor is represented by Galen W. Pittman, Esq. at pittman & Pittman law offices, LLC. RIVERS ENTERPRISE: S&P Assigns 'B+' ICR, Outlook Stable ------------------------------------------------------- S&P Global Ratings assigned its 'B+' issuer credit rating to Rivers Enterprise Borrower LLC. At the same time, S&P assigned its 'B+' issue-level rating and '3' recovery rating to the proposed revolver and secured notes. The '3' recovery rating indicates its expectation for 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 Rivers' S&P Global Ratings-adjusted leverage will remain about 4x in 2025, supported by a relatively stable operating performance as continued demand in Virginia, and growth in iGaming and sports betting in Pennsylvania, offset generally weaker consumer spending. Rivers Enterprise Borrower LLC intends to consolidate its ownership of the Rivers Philadelphia, Rivers Schenectady, and Rivers Portsmouth casinos. The company also plans to repay the existing debt at each property and return approximately $300 million of capital to its owners, which it will fund with the proceeds from a new $350 million revolving credit facility due 2030 and $600 million of senior secured notes due 2033. S&P said, "The 'B+' issuer credit rating reflects Rivers' somewhat diversified gaming portfolio (across three markets), solid market positions in Schenectady, N.Y. and Portsmouth, Va., and our belief that new competition near Portsmouth could hurt revenue beginning in 2026. The company generates about half of its EBITDA from its Portsmouth property, which it opened in January 2023 as the first full casino in Virginia. Since its opening, Rivers Portsmouth has performed well due to the limited amount of nearby competition, given that its closest competitors are located over 180 miles away in Danville, Va. (Caesars) and Oxon Hill, Md. (MGM). Virginia is a relatively new gaming market and is currently limited to five gaming licenses for full-service casinos, which have all been allocated. Rivers Portsmouth will face new competition beginning at the end of this year with the opening of Boyd's temporary casino 7 miles away in Norfolk, Va. Although we expect Boyd's temporary facility will be small with few amenities, it may attract existing Rivers Portsmouth players who live closer to Norfolk, given that convenience is an important factor for regional gaming customers. For example, the vast majority of Rivers Portsmouth's players live within 25 miles of the casino. We expect the company will experience more-significant competition beginning in 2028 when Boyd expects to open its permanent casino and hotel. We also expect it could face some competition from the temporary Live! Virginia casino when it opens in Petersburg, Va. in early 2026; however, this property is located about 70 miles from Portsmouth, thus we anticipate it will likely have a more-muted impact." Rivers Schenectady shares its market with the Saratoga Casino, which is located about 20 miles away. Rivers Schenectady accounts for about 60% of the company's gross gaming revenue and is closer to the larger population center of Albany than the Saratoga Casino. The upstate New York gaming market is well established and S&P does not expect any new nearby competition, given that the state is expected to award the three remaining licenses to downstate operators. Although Rivers Schenectady operates in a very stable market, its EBITDA declined by about 12% in the 12 months ended Sept. 30, 2024, amid relatively flat revenue and increased expenses. In contrast with its Schenectady and Portsmouth properties, Rivers Philadelphia operates in a highly competitive market with four casinos operating in a 25-mile radius: Live! Philadelphia (6 miles), Parx Casino (17 miles), Harrah's Philadelphia (20 miles), and Valley Forge (23 miles). Parx Casino holds the largest market share at about 43%, while the remaining operators split the rest (Live! [20%], Rivers [17%], Harrah's [10%], and Valley Forge [10%]). Brick-and-mortar gaming in the Philadelphia market has experienced challenging revenue trends amid cannibalization by iGaming and digital sports betting. In the 12 months ended Sept. 30, 2024, Rivers Philadelphia's brick-and-mortar gaming revenue declined about 5%. However, a strong expansion in the facility's digital gaming offset the decline in its brick-and-mortar performance, supporting an about 3% increase in overall property revenue during this period. Additionally, Rivers Philadelphia faces particularly strong competition from Live! Philadelphia, its closest competitor, which is a newer property that opened in 2021 and has been marketing aggressively. S&P said, "We expect Rivers will maintain leverage of about 4x, which will provide it with a solid cushion relative to our 5x downgrade threshold to absorb new competition in 2026. Pro forma for this transaction, we expect the company's S&P Global Ratings-adjusted debt leverage will be about 4x in 2025. For 2025, we expect Rivers will increase its revenue by the low-single digit percent, in line with the expansion in U.S. consumer spending. While we assume a stronger improvement at the Portsmouth facility, its expansion will likely slow relative to its first two years of operations as its performance tapers off and reaches a steady state. We forecast a continuation of recent revenue trends in Schenectady and Philadelphia, with solid digital growth in Philadelphia its cannibalizing brick-and-mortar gaming revenue, along with a lackluster expansion at Rivers Schenectady. We assume the company's EBITDA margins will be relatively stable in 2025, relative to 2024, at about 25%. In 2026, we assume the arrival of new competition near Portsmouth will likely offset a low-single digit increase in the revenue from Schenectady and Philadelphia, leading to flat overall revenue. We assume the company's EBITDA margins will decline by 200 basis points in 2026 due to our assumption of declining revenue at Portsmouth coupled with the expected increase in New York's tax rate on slot revenue. Therefore, we forecast Rivers' S&P Global Ratings-adjusted debt leverage will increase to about 4.2x by the end of 2026, which will still provide it with a solid cushion relative to our downgrade threshold to absorb some unexpected operating volatility." Macroeconomic risks could impede consumer discretionary spending, though River's geographic diversity, solid market positions in two of its regional gaming markets, and continued digital growth may lessen their impact. Rising unemployment and persistent high prices could weaken consumer spending this year. Nevertheless, like most regional operators, Rivers generates most of its cash flow from a small percentage of customers in its databases. S&P said, "Therefore, as long as these customers remain relatively healthy and the company maintains its cost controls and marketing discipline, we believe it will have some cushion to navigate a pullback in consumer spending. While Rivers' brick-and-mortar gaming revenue may soften this year, as it did at its Schenectady and Philadelphia locations in 2024, we expect it will expand its overall revenue because the demand for sports betting and iGaming in Pennsylvania will likely remain strong and Rivers Portsmouth will benefit from its continued ramp up." Nevertheless, Rivers could underperform our base-case forecast if there is a greater-than-expected pullback in consumer discretionary spending in its markets. S&P said, "The stable outlook reflects our expectation that Rivers' S&P Global Ratings-adjusted leverage will remain about 4x in 2025, supported by a relatively stable operating performance as continued demand in Virginia, and growth in iGaming and sports betting in Pennsylvania, offset generally weaker consumer spending. This level of leverage will provide the company with a sufficient cushion relative to our 5x downgrade threshold to absorb unexpected operating volatility and the expected arrival of new competition near Rivers Portsmouth by 2026. "We could lower our rating on Rivers if its operating performance deteriorates because of weaker demand or greater-than-expected headwinds from new competition, particularly in Virginia, that cause it to sustain leverage of more than 5x. While less likely, we could lower our ratings if the company pursues acquisitions or development that cause it to sustain leverage of more than 5x absent a material improvement in our assessment of its business risk. "We view an upgrade as unlikely over the next few years, given our expectation for declining EBITDA and increasing leverage as Boyd opens a new casino near Rivers Portsmouth. However, we could raise our rating on Rivers if it sustains leverage of below 4x after incorporating the impact of the new competition and its expected distributions to its owners." ROCKY MOUNTAIN: Commences Subchapter V Bankruptcy Proceeding ------------------------------------------------------------ On January 21, 2025, Rocky Mountain Imports LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the District of Colorado. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Rocky Mountain Imports LLC Rocky Mountain Imports LLC operating as Pikes Peak Rock Shop from Woodland Park, Colorado, is a wholesale distributor of minerals, fossils, and jewelry serving the trade industry for over 40 years. Rocky Mountain Imports LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Col. Case No. 25-10311) on January 21, 2025. In its petition, the Debtor reports estimated assets between $50,000 and $100,000 and estimated liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Michael E. Romero handles the case. The Debtor is represented by: Kevin S. Neiman, Esq. 999 18th St., Ste., 1230 S Denver, CO 80202 Phone: 303-996-8637 Fax: 877-611-6839 ROOME ENTERPRISES: Gets Interim OK to Use Cash Collateral --------------------------------------------------------- Roome Enterprises, Inc. received interim approval from the U.S. Bankruptcy Court for the District of Idaho for authority to use cash collateral. The company needs to use cash collateral immediately to pay necessary and critical expenses of its operations, including payroll and related taxes and benefits, rent, utilities, and insurance. First Bank of the Lake and Kalamata Capital Group assert an interest in the cash collateral. First Bank of the Lake is the company's primary lender and is owed approximately $1.961 million. The company believes that the loan is secured by a blanket security interest against its assets, including its accounts receivable. Meanwhile, Roome obtained a merchant cash advance loan of approximately $387,000 from Kalamata. In exchange, Kalamata demanded weekly payments exceeding $8,800 and asserted a right to be paid at least $532,000. Although the company paid Kalamata over $186,000 from the funding date through December 2024, it was unable to continue making weekly payments. Notably, despite the payments that it received, Kalamata asserts that it is still owed more than $430,000. Throughout 2025, on an average basis, Roome projects collecting monthly income in the approximate average amount of $377,000, which is the cash collateral that the company seeks authorization to use. A final hearing is set for Feb. 5. About Roome Enterprises Roome Enterprises, Inc. provides construction, cleanup, disaster restoration, janitorial, window washing, and related services, in Northern Idaho and Eastern Washington under various ServiceMaster franchise agreements. Roome Enterprises sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Idaho Case No. 25-20010) on January 14, 2025, with up to $10 million in both assets and liabilities. Adolphe R Roome, owner and president, signed the petition. Matthew W. Grimshaw, Esq., at Grimshaw Law Group, P.C., represents the Debtor as legal counsel. ROYAL HELIUM: Files for Creditor Protection Under BIA ----------------------------------------------------- Royal Helium Ltd. announced, on January 20, 2025, that Royal and its subsidiaries, Royal Helium Exploration Limited and Imperial Helium Corp., filed a notice of intention to make a proposal under the Bankruptcy and Insolvency Act. The Company has been actively pursuing an out-of-court restructuring solution, which included, among other things, initiatives to raise additional capital to meet working capital needs, creditor obligations and fund engineering requirements to appropriately re-commission the Steveville Helium Facility. Following such review and after careful consideration of all available alternatives, and consultation with counsel, the board of directors of the Company determined that it is in the best interests of the Company and its stakeholders to file for protection under the BIA. The filing under the BIA includes, among other things: (i) a stay of proceedings in favour of the Company, and (ii) the appointment of Doane Grant Thornton LLP as the proposal trustee of the Company. The Company sought creditor protection under the BIA in order to obtain a stay of proceedings that will allow the Company to work with the Trustee to facilitate the development of an orderly process designed to streamline its interim administrative and operational needs and conduct a Court-supervised sales process to obtain a going concern solution for its operations and maximize the value of the Company's assets for the benefit of its stakeholders. The board of directors of the Company will remain in place and management will remain responsible for the day-to-day operations of the Company, under the general oversight of the Proposal Trustee. It is anticipated that TSX Venture Exchange will place the Company under delisting review and there can be no assurance as to the outcome of such review or the continued qualification for listing on the TSXV. Other Recent Events: As the Company has been working toward a restructuring solution, the Company's VP of Geology (Shayne Neigum), who had also been acting in the capacity of its COO resigned from the Company to pursue other opportunities. The Company expresses its appreciation for Shayne's contributions to the business and wishes him the best in his future activities. About Royal Helium Ltd. Royal (TSXV: RHC) (OTCQB: RHCCF) is an exploration, production and infrastructure company with a primary focus on the development of helium and associated gases. The Company's extensive footprint includes prospective helium permits and leases across Southern Saskatchewan and southeastern Alberta. Royal's helium reservoirs are carried primarily with nitrogen. Nitrogen is not considered a greenhouse gas (GHG) and therefore has a low GHG footprint when compared to other jurisdictions that rely on large scale natural gas production for helium extraction. Helium extracted from wells in Saskatchewan and Alberta can be up to 90% less carbon intensive than helium extraction processes in other jurisdictions. For more information, please visit SEDAR+ (www.sedarplus.ca) and the Company's website (https://royalheliumltd.com). SAMPLE TILE: Seeks to Tap Michael Jay Berger as Bankruptcy Counsel ------------------------------------------------------------------ Sample Tile and Stone Inc. seeks approval from the U.S. Bankruptcy Court for the Central District of California to employ the Law Offices of Michael Jay Berger as bankruptcy counsel. The firm will render these services: (a) communicate with creditors of the Debtor; (b) review the Debtor's Chapter 11 bankruptcy petition and all supporting schedules; (c) advise the Debtor of its legal rights and obligations in a bankruptcy petition and all supporting schedules; (d) advise the Debtor of its legal rights and obligations in a bankruptcy proceeding; (e) work to bring the Debtor into full compliance with reporting requirements of the Office of the United states Trustee; (f) prepare status reports as required by the court; and (g) respond to any motions filed in the Debtor's bankruptcy proceeding. The firm's counsel will be paid at these hourly rates: Michael Jay Berger, Attorney $645 Sofya Davtyan, Partner $595 Robert Poteete, Attorney $475 Senior Paralegals and Law Clerks $275 Paralegals $200 On November 20, 2024, the firm received a retainer of $25,000 from the Debtor. Mr. Berger 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 Jay Berger, Esq. Law Offices of Michael Jay Berger 9454 Wilshire Boulevard, 6th Floor Beverly Hills, CA 90212 Telephone: (310) 271-6223 Facsimile: (310) 271-9805 Email: Michael.berger@bankruptcypower.com About Sample Tile and Stone Sample Tile and Stone Inc. is based in Los Angeles, California and operates as a tile contractor with ongoing projects including work at WB Ranch TI and The Ranch Lot Studios. Sample Tile and Stone Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10137) on January 8, 2025. In its petition, the Debtor reports estimated assets between $500,000 and $1 million and estimated liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Barry Russell handles the case. The Law Offices of Michael Jay Berger represents the Debtor as counsel. SAMPLE TIRE: Seeks Bankruptcy Protection in California ------------------------------------------------------ On January 8, 2025, Sample Tile and Stone Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Central District of California. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Sample Tile and Stone Inc. Sample Tile and Stone Inc. based in Los Angeles, California, operates as a tile contractor with ongoing projects including work at WB Ranch TI and The Ranch Lot Studios. Sample Tile and Stone Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10137) on January 8, 2025. In its petition, the Debtor reports estimated between $500,000 and $1 million and estimated liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Barry Russell handles the case. The Debtor is represented by: Michael Jay Berger, Esq. 9454 Wilshire Blvd 6th Fl Beverly Hills, CA 90212-2929 Phone: 310-271-6223 Fax : 310-271-9805 Email: michael.berger@bankruptcypower.com SANUWAVE HEALTH: Former EVP of Sales to Receive $104K Severance Pay ------------------------------------------------------------------- As previously disclosed, Timothy Hendricks separated from service as Executive Vice President of Sales of Sanuwave Health, Inc., effective as of January 3, 2025. In connection with his separation, Mr. Hendricks and the Company entered into a Separation and Release Agreement, dated January 13, 2025, pursuant to which Mr. Hendricks will receive five months' annual base salary in the amount of $104,116.67, payable in equal installments through the Company's regular payroll, and continued vesting of his employee stock options through May 31, 2024. The Severance Agreement is available at: https://tinyurl.com/yc4sj25w About SANUWAVE Health Headquartered in Suwanee, Georgia, SANUWAVE Health, Inc. (OTCQB:SNWV) -- http://www.SANUWAVE.com-- is an ultrasound and shock wave technology company using patented systems of noninvasive, high-energy, acoustic shock waves or low intensity and non-contact ultrasound for regenerative medicine and other applications. The Company's focus is regenerative medicine utilizing noninvasive, acoustic shock waves or ultrasound to produce a biological response resulting in the body healing itself through the repair and regeneration of tissue, musculoskeletal, and vascular structures. The Company's two primary systems are UltraMIST and PACE. UltraMIST and PACE are the only two Food and Drug Administration (FDA) approved directed energy systems for wound healing. New York, NY-based Marcum LLP, the Company's auditor since 2018, issued a "going concern" qualification in its report dated March 21, 2024, citing that the Company has incurred recurring losses and needs to raise additional funds to meet its obligations, sustain its operations, and to resolve the events of default on the Company's debt. These conditions raise substantial doubt about the Company's ability to continue as a going concern. SANUWAVE Health reported a net loss of $25.81 million for the year ended Dec. 31, 2023, compared to a net loss of $10.29 million for the year ended Dec. 31, 2022. As of September 30, 2024, SANUWAVE Health had $21.8 million in total assets, $82.1 million in total liabilities, and $60.3 million in total stockholders' deficit. SARVER REALTY: Hires Cooney Law Offices as Bankruptcy Counsel ------------------------------------------------------------- Sarver Realty Andre Plaza, LLC seeks approval from the U.S. Bankruptcy Court for the Western District of Pennsylvania to employ Cooney Law Offices, LLC as counsel. The firm will render these services: (a) assist in the administration of the Debtor's estate and to represent it on matters involving legal issues that are present or are likely to arise in the case; (b) prepare any legal documentation on behalf of the Debtor, to review reports for legal sufficiency; (c) furnish information regarding legal actions and their resulting consequences; and (d) perform all necessary legal services connected with Chapter 11 proceedings. The firm will be billed at these following hourly rates: James Cooney, Attorney $425 Ryan Cooney, Attorney $375 Paul Toigo, Attorney $325 Paralegal $150 Ryan Cooney, Esq., 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: Ryan J. Cooney, Esq. Cooney Law Offices, LLC 223 Fourth Avenue, 4th Fl. Pittsburgh, PA 15222 Telephone: (412) 546-1234 Facsimile: (412) 546-1235 Email: rcooney@cooneylawyers.com About Sarver Realty Andre Plaza Sarver Realty Andre Plaza LLC is a single-asset real estate company based in Pittsburgh, PA. Sarver Realty Andre Plaza LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Pa. Case No. 25-20017) on January 3, 2025 In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Ryan J. Cooney, Esq., at Cooney Law Offices LLC represents the Debtor as counsel. SCILEX HOLDING: Posts Net Loss of $4.39 Million in Third Quarter ---------------------------------------------------------------- Scilex Holding Company filed its Quarterly Report on Form 10-Q with the Securities and Exchange Commission, reporting a net loss of $4.39 million on net revenue of $14.44 million for the three months ended Sept. 30, 2024. This compares to a net loss of $35.53 million on net revenue of $10.12 million for the three months ended Sept. 30, 2023. For the nine months ended Sept. 30, 2024, the Company reported a net loss of $66.35 million on $41.69 million of net revenue, compared to a net loss of $92.93 million on $33.28 million of net revenue for the nine months ended Sept. 30, 2023. As of Sept. 30, 2024, the Company had $100.43 million in total assets, $311.75 million in total liabilities, and a total stockholders' deficit of $211.32 million. As of Sept. 30, 2024, the Company's negative working capital was $241.7 million, including cash and cash equivalents of approximately $0.1 million. During the nine months ended Sept. 30, 2024, the Company had operating losses of $55.0 million and cash flows received from operating activities of $16.8 million. The Company had an accumulated deficit of $556.6 million as of Sept. 30, 2024. Scilex stated, "The Company has plans to obtain additional resources to fund its currently planned operations and expenditures and to service its debt obligations (whether under the Oramed Note, the FSF Deposit or otherwise) for at least twelve months from the issuance of these unaudited condensed consolidated financial statements through a combination of equity offerings, debt financings, collaborations, government contracts or other strategic transactions. The Company's plans are also dependent upon the success of future sales of ZTlido, ELYXYB and GLOPERBA, which is still in the early stages of commercialization. "Although the Company believes such plans, if executed, should provide the Company with financing to meet its needs, successful completion of such plans is dependent on factors outside the Company's control. As a result, management has concluded that the aforementioned conditions, among other things, raise substantial doubt about the Company's ability to continue as a going concern for one year after the date the unaudited condensed consolidated financial statements are issued." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1820190/000095017025006755/sclx-20240930.htm About Scilex Holding Company Palo Alto, CA-based Scilex Holding Company -- www.scilexholding.com -- is an innovative revenue-generating company focused on acquiring, developing and commercializing non-opioid pain management products for the treatment of acute and chronic pain and, following the formation of its proposed joint venture with IPMC Company, neurodegenerative and cardiometabolic disease. Scilex targets indications with high unmet needs and large market opportunities with non-opioid therapies for the treatment of patients with acute and chronic pain and is dedicated to advancing and improving patient outcomes. Scilex's commercial products include: (i) ZTlido (lidocaine topical system) 1.8%, a prescription lidocaine topical product approved by the U.S. Food and Drug Administration for the relief of neuropathic pain associated with postherpetic neuralgia, which is a form of post-shingles nerve pain; (ii) ELYXYB, a potential first-line treatment and the only FDA-approved, ready-to-use oral solution for the acute treatment of migraine, with or without aura, in adults; and (iii) Gloperba, the first and only liquid oral version of the anti-gout medicine colchicine indicated for the prophylaxis of painful gout flares in adults. San Diego, California-based Ernst & Young LLP, the Company's auditor since 2020, issued a "going concern" qualification in its report dated March 11, 2024, citing that the Company has negative working capital, has suffered losses from operations, has recurring negative cash flows from operations, and has stated that substantial doubt exists about the Company's ability to continue as a going concern. SIGNAL PARENT: Moody's Alters Outlook on 'B3' CFR to Negative ------------------------------------------------------------- Moody's Ratings affirmed Signal Parent, Inc.'s (dba Interior Logic Group, "ILG") corporate family rating at B3 and probability of default rating at B3-PD. At the same time, Moody's affirmed the B2 rating on the backed senior secured first lien bank credit facility and the Caa2 rating on the backed senior unsecured notes. The outlook was changed to negative from stable. The negative outlook reflects the company's high leverage above 11x adjusted debt to EBITDA, weak interest coverage of 1.2x EBITDA to interest expense, and execution risk as it attempts to regain market share in key territories. The ratings affirmation reflects Moody's expectation that ILG will maintain good liquidity for the 12-18 months from September 2024. Despite near-breakeven free cash flow Moody's project during this period, the company has no near-term debt maturities. Moody's also expect the company's margin profile will remain resilient as the cost savings of their recent strategic initiatives are fully realized. RATINGS RATIONALE ILG's B3 corporate family rating is constrained by the company's high leverage and low operating margin inherent to its business model. The company employs a roll-up acquisition growth strategy, which presents integration risks and potential increases in debt leverage. The rating is further exposed to the volatility and cyclicality inherent to the residential end markets served. The company also experienced significant year over year revenue declines in the first two quarters of 2024, partially due to muted demand in the macro environment and share losses in the Arizona market. Improved execution and sequential recovery in Moody's forecasted period will be required for the company to reduce leverage to a more reasonable level. At the same time, the rating is supported by meaningful size and scale of the business, with about $1.8 billion in revenue as of LTM September 30, 2024 and a national footprint. ILG maintains a strong competitive position in a fragmented market of installation and design studio services and long-term customer relationships with homebuilders. The rating further benefits from the long-term fundamental demand for single-family housing in the US. Moody's expect ILG will maintain good liquidity over the next 12 to 18 months, supported by breakeven free cash flow, flexibility under its springing fixed charge coverage covenant, and access to a $150 million ABL revolving credit facility. The company has about $37 million of cash on the balance sheet as of September 30, 2024. Access to the ABL is robust with no borrowings as of September 30, 2024. ILG's liquidity is supported by the lack of significant upcoming debt maturities, with the nearest maturity being its ABL credit facility in 2026 and the term loan and unsecured notes maturing in 2028 and 2029, respectively. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if the company improves operating margin, reduces debt to EBITDA sustainably below 5.5x, maintains conservative financial policies with respect to leverage, shareholder friendly actions and acquisitions, and maintains good liquidity and positive free cash flow. The ratings could be downgraded if the company's debt to EBITDA is sustained above 6.5x, EBITA to interest coverage declines below 1.5x, liquidity weakens, free cash flow turns negative, or market conditions deteriorate resulting in revenue and operating margin declines. The principal methodology used in these ratings was Distribution and Supply Chain Services published in December 2024. Interior Logic Group, headquartered in San Diego, CA, is one of the nation's leading providers of design center management and interior installation services. The Blackstone Group is the company's financial sponsor. In the last 12 months ended September 30, 2024, the company generated about $1.8 billion in revenue. SILVERGATE CAPITAL: Seeks to Extend Plan Exclusivity to April 15 ---------------------------------------------------------------- Silvergate Capital Corporation and its affiliates asked the U.S. Bankruptcy Court for the District of Delaware to extend their exclusivity periods to file a plan of reorganization and obtain acceptance thereof to April 15 and July 14, 2025, respectively. This is the Debtors' first request for an extension of exclusivity. Courts routinely grant a debtor's first request for an extension of the exclusivity period. In fact, courts have found that there are virtually no cases where "a debtor has failed to establish sufficient cause to extend the original 120-day exclusivity period". The Debtors readily meet each factor, and the exclusivity period should be extended here. * First, this case involves a large and complex bankruptcy such that the full exclusivity period, as contemplated by the Bankruptcy Code, is necessary. This bankruptcy involves at least tens of millions of dollars, and potentially hundreds of millions of dollars, of debt and liabilities. Given that this is a large and complex bankruptcy, exclusivity should be maintained to allow the Debtors time to finalize the Plan, including dealing with the complicated claims against the estate as contemplated by the Bankruptcy Code. * Second, it is necessary for the Debtors to have sufficient time to finalize their Plan and prepare adequate information to allow creditors to determine whether to accept any final plan. The Debtors have continued to work toward a viable plan and require an extension of the exclusivity period to maximize value for all stakeholders. * Third, the Debtors have made good-faith progress toward exiting bankruptcy, including with respect to actions necessary to confirm their Plan and to enable the Debtors to make distributions to stakeholders. The Debtors are working to resolve claims against the estate, including Proofs of Claim in order for general unsecured creditors to be paid in full. The Debtors have also been working toward resolving the claims asserted by the Indemnified Individuals and are working towards a possible mediation in an attempt to resolve various claims. * Fourth, courts have found that where debtors have "consistently met their financial obligations", this factor "plainly doesn't warrant terminating exclusivity". The Debtors have paid, and will continue to pay, bills as they come due. As such, this factor weighs in favor of extending the exclusivity period. * Fifth, the Debtors have demonstrated very reasonable prospects for filing a viable plan. The Debtors, focused on best preserving value in order to maximize funds available to stakeholders, have negotiated with the Preferred Stockholders and continue to work with other stakeholders, including Common Stockholders and claimants, to garner support for any final plan the Debtors are likely to propose. * Sixth, the Debtors have made good progress in negotiations with creditors. Courts have found that where a debtor has engaged in discussions with creditors and, in particular, where a debtor has reached settlements with certain of its creditors, this factor has been met. The Debtors' substantial progress in negotiating with their creditors and other stakeholders and administering their cases supports the extension of the Debtors’ exclusivity period. * Seventh, a reasonable amount of time has elapsed in this case. Here, the Debtors' requested extension of exclusivity is the first such request made in these Chapter 11 Cases; the Debtors' request also comes only four months after the Petition Date. * Eighth, the Debtors are not seeking an extension of exclusivity in order to pressure creditors or gain any unfair bargaining leverage. The Debtors are using this exclusivity period to continue negotiations with claimants and progress in a way that maximizes distributions to creditors and other stakeholders, not to pressure any creditors. Co-Counsel for the Debtors: Paul N. Heath, Esq. Michael J. Merchant, Esq. David T. Queroli, Esq. Emily R. Mathews, Esq. RICHARDS, LAYTON & FINGER, P.A. One Rodney Square 920 North King Street Wilmington, DE 19801 Tel: (302) 651-7700 Fax: (302) 651-7701 Email: heath@rlf.com merchant@rlf.com queroli@rlf.com mathews@rlf.com -and- George E. Zobitz, Esq. Paul H. Zumbro, Esq. Alexander Gerten, Esq. CRAVATH, SWAINE & MOORE LLP Two Manhattan West 375 Ninth Avenue New York, NY 10001 Tel: (212) 474-1000 Fax: (212) 474-3700 Email: jzobitz@cravath.com pzumbro@cravath.com agerten@cravath.com About Silvergate Capital Corporation Silvergate Capital Corporation is a Maryland corporation headquartered in La Jolla, California. Until July 1, 2024, it was a bank holding company subject to supervision by the Board of Governors of the Federal Reserve. Silvergate Capital Corporation filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-12158) on Sept. 17, 2024, listing $100 million to $500 million in assets and $10 million to $50 million in liabilities. The petitions were signed by Elaine Hetrick as chief administrative officer. Paul N. Heath, Esq. at RICHARDS, LAYTON & FINGER, P.A. represents the Debtor as counsel. SKYLOCK INDUSTRIES: Court OKs Continued Use of Cash Collateral -------------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California, Los Angeles Division extended Skylock Industries Inc.'s authority to use cash collateral from Jan. 20 to March 11. The order approved the use of cash collateral on an interim basis to pay the company's operating expenses in accordance with its budget. Skylock was ordered to make adequate protection payments to Pasadena Private Lending, Inc. on account of the claim filed in the company's bankruptcy case by the U.S. Small Business Administration and transferred to PPL. Creditors with valid security interest in cash collateral will be granted replacement liens on the proceeds of their respective collateral. The next hearing is set for March 5. Pasadena can be reached through its counsel: Rachel P. Stoian, Esq. Dorsey & Whitney, LLP 167 Hamilton Avenue, Suite 200 Palo Alto, CA 94301 Telephone: (650) 857-1717 Facsimile: (650) 857-1288 stoian.rachel@dorsey.com About Skylock Industries Skylock Industries Inc. is a California-based aircraft parts manufacturer. Skylock Industries sought relief under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-17820) on Sept. 26, 2024, with $10 million to $50 million in both assets and liabilities. Judge Sheri Bluebond handles the case. The Debtor is represented by: Jeffrey S. Shinbrot, Esq. The Shinbrot Firm 310-659-5444 jeffrey@shinbrotfirm.com SMS LAKEWOOD: Unsecureds Will Get 100% of Claims in Plan -------------------------------------------------------- SMS Lakewood LLC filed with the U.S. Bankruptcy Court for the District of Colorado a Disclosure Statement for Plan of Reorganization dated January 16, 2025. The Debtor is a Wyoming limited liability company that was formed on March 5, 2021. Sustainable Metal Solutions LLC is the sole member. Alfred F. Gerriets, II, is the Managing Member. The Debtor's primary business is the rental of real property with the address of 12567 West Cedar Drive, Lakewood, Colorado 80228 (the "Property"). The Debtor purchased the Property on April 25, 2022, for $2,730,000. It was constructed in 1981 and has 38,207 square feet of gross building area and 35,866 square feet of net rentable area. As of the Petition Date, the Property was occupied by eight tenants representing an occupancy rate of approximately 60%. On July 25, 2024, the Public Trustee for Jefferson County, Colorado, recorded a Notice of Election and Demand against the Property thereby commencing a Public Trustee foreclosure action. The foreclosure sale was initially scheduled for November 21, 2024, but has been stayed by the filing of this bankruptcy case. Additionally, CAA commenced a receivership action on September 25, 2024, before the Jefferson County District Court, Case No. 2024CV031351. The bankruptcy case was commenced prior to the receiver taking possession of Debtor's property. The Debtor finances its operations from rents. The Debtor does not have operating loans or lines of credit. Confirmation of the Plan is in the best interests of the creditors. Under a liquidation, unsecured creditors will receive 0% of their claims. However, under the Plan, unsecured creditors will receive 100% of their pro rata share. Class 5 consists of all Unsecured Claims and is divided into two subclasses. Class 5(a) shall include all Unsecured Claims except the Claim of Sustainable Metal Solutions LLC (the "Member") and Class 5(b) shall only include the Member's Claim. * Each holder of an Allowed Class 5(a) Claim shall receive a Pro Rata distribution in the amount of $5,000 per month for eighteen months commencing the first full month following the Effective Date, which will pay Allowed Class 5(a) Claims in full. Allowed Class 5(a) Claims shall accrue interest at 0% per annum. * The Member's Allowed Class 5(b) Claim shall only receive distribution after the Allowed Class 5(a) Claims are paid in full. At which point, the Debtor shall make periodic payments to Member in its discretion after accounting for operating expenses and a reserve for building improvements. However, the Allowed Class 5(b) Claim shall be paid in full no later than ten years after the Effective Date. The Allowed Class 5(b) Claim shall accrue interest at 0% per annum. The allowed Class 5(a) unsecured claims total $85,951.15. This Class will receive a distribution of $85,951.15. Class 6 consists of all Interests. All equity interests in the Reorganized Debtor shall be issued to Sustainable Metal Solutions LLC. On the Effective Date, all assets of the Debtor shall be transferred to the Reorganized Debtor, free and clear of all liens, claims, and interests of creditors, equity holders, and other parties in interest, except as otherwise provided herein. Specifically, the assets shall be transferred subject to the liens held by the Classes 3 and 4 as discussed in the treatment of each class. The Reorganized Debtor shall not, except as otherwise provided in this Plan, be liable to repay any debts which accrued prior to the Confirmation Date. The Debtor shall fund its Plan obligations with the Reorganized Debtor's net profits remaining after deducting all operating and administrative expenses, taxes, necessary repairs and maintenance for the Property, or through future capital contributions from Debtor's member. Such funds shall be sufficient to pay the claimants listed under Article III of the Plan. The Debtor will have sufficient cash from its operating revenue to pay its secured and unsecured creditors as set forth in the Plan. A full-text copy of the Disclosure Statement dated January 16, 2025 is available at https://urlcurt.com/u?l=b9wATZ from PacerMonitor.com at no charge. Counsel to the Debtor: Aaron J. Conrardy, Esq. Wadsworth Garber Warner Conrardy, P.C. 2580 W. Main St., Ste. 200 Littleton, CO 80120 Telephone: (303) 296-1999 Email: aconrardy@wgwc-law.com About SMS Lakewood LLC SMS Lakewood LLC is a Single Asset Real Estate debtor (as defined in 11 U.S.C. Section 101(51B)). SMS Lakewood LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Col. Case No. 24-16228) on October 21, 2024. In the petition filed by Richard Mittasch, as vice president, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Michael E. Romero handles the case. The Debtor is represented by Aaron J. Conrardy, Esq. at WADSWORTH GARBER WARNER CONRARDY, P.C. SORENTO ON YESLER: Hires Christopher L. Young as Estate Counsel --------------------------------------------------------------- Sorento on Yesler Owner, LLC seeks approval from the U.S. Bankruptcy Court for the Western District of Washington to employ the Law Offices of Christopher L. Young, PLLC as estate counsel. The firm will assist the Debtor in reorganizing its debts and obtaining confirmation of a Chapter 11 plan. Christopher Young, Esq., the primary attorney in this representation, will be paid at his hourly rate of $400. The firm also received an advance fee deposit of $8,480 from a third party. Mr. Young 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: Christopher L. Young, Esq. Law Offices of Christopher L. Young, PLLC 92 Lenora St., No. 146 Seattle, WA 98121 Telephone: (206) 407-5829 Email: chris@christopherlyoung.com About Sorento on Yesler Owner Sorento on Yesler Owner, LLC is a Single Asset Real Estate debtor (as defined in 11 U.S.C. Section 101(51B)). Sorento on Yesler Owner sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wash. Case No. 24-13217) on December 17, 2024, with $10 million to $50 million in both assets and liabilities. Judge Christopher M. Alston handles the case. The Debtor is represented by the Law Offices of Christopher L. Young, PLLC. SOUTHERN PINESTRAW: Gets Interim OK to Use Cash Collateral ---------------------------------------------------------- Southern Pinesraw, Inc. got the green light from the U.S. Bankruptcy Court for the Northern District of Florida, Gainesville Division to use cash collateral. The order signed by Judge Karen Specie authorized the company to use cash collateral on an interim basis to pay the amounts expressly authorized by the court including payments to the Subchapter V trustee; and expenses set forth in its six-month budget. The company's budget shows total projected expenses of $46,186.67 for January; $46,597.07 for February; $28,675 for March; $41,400 for April; $43,400 for May; and $47,700 for June. As adequate protection, any creditor that claims to have a post-petition lien on cash collateral will be granted a post-petition lien on the collateral to the same extent and with the same validity and priority as its pre-bankruptcy lien. The next hearing is scheduled for Jan. 30. About Southern Pinestraw Inc. Southern Pinestraw Inc. filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Fla. Case No. 25-10003) on January 7, 2025. In its petition, the Debtor reported $500,000 to $1 million in both assets and liabilities. The Debtor is represented by: Lisa Caryl Cohen, Esq. Ruff & Cohen, P.A. Email: lcohen@ruffcohen.com SPI ENERGY: Nasdaq to Delist Shares for Rule Violations ------------------------------------------------------- SPI Energy Co., Ltd. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that on January 13, 2025, it received a notification letter from The Nasdaq Stock Market LLC notifying the Company that the Nasdaq hearings panel had determined to delist the Company's shares from The Nasdaq Capital Market, due to the Company's violation of Listing Rules 5250(c)(1) and 5550(a)(2), the "Bid Price Requirement" and "Annual Shareholder Meeting" Rules. The Company has 15 days after the date of the Letter to request that the hearing panel review the decision, or the Nasdaq Listing and Hearing Review Council may, on its own motion, determine to review the hearing panel's decision within 45 calendar days after the Letter. The delisting of the Company's shares was driven by several contributing factors, primarily delinquency in the Company's public filings with the SEC, beginning with the Company's Annual Report on Form 10-K for the year ended December 31, 2023, as well as the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31, June 30 and September 30, 2024, which delays were primarily due to the difficulties in the completion of its 2023 audit, continuous trading below $1 per share for 30 consecutive business days and the Company's failure to hold its annual shareholders meeting during 2024. At this time, the Company has determined not to appeal Nasdaq's delisting determination. Management anticipates that the Company's shares will continue to trade on an over-the-counter (OTC) market. About SPI Energy Co. SPI Energy Co., Ltd. is a global provider of photovoltaic (PV) solutions for business, residential, government and utility customers and investors. The Company develops solar PV projects which are either sold to third party operators or owned and operated by the Company for selling of electricity to the grid in multiple countries in Asia, North America and Europe. SPI Energy reported a net loss of $1.89 million for the three months ended Sept. 30, 2023, compared to a net loss of $13.49 million for the three months ended Sept. 30, 2022. As of Sept. 30, 2023, the Company had $230.19 million in total assets, $214.19 million in total liabilities, and $16 million in total equity. New York, New York-based Marcum Asia CPAs LLP, the Company's auditor since 2018, issued a "going concern" qualification in its report dated April 14, 2023, citing that the Company has a significant working capital deficit, has incurred significant losses and needs to raise additional funds to sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The Company suffered a net loss of $5.6 million during the nine months ended September 30, 2023 from continuing operations. As of September 30, 2023, there was net working capital deficit of $114.7 million and accumulated deficit of $684.7 million. These factors raise substantial doubt as to its ability to continue as a going concern, according to the Company's Quarterly Report for the period ended Sept. 30, 2023. SUPREME ELECTRICAL: Hires Redaptive Sustainability as Broker ------------------------------------------------------------ Supreme Electrical Services, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of Texas to employ Redaptive Sustainability Services, LLC as broker. The firm will render these services: (a) perform such sales brokerage and consulting services for the Debtor in connection with the assets as it reasonably requests from time to time; (b) prepare an informational memorandum and organize data for marketing and internet or other data room presentation, in each case, in collaboration with the Debtor, its advisors, and other parties, as it may direct; (c) build, maintain, and host a data room, to include asset information, due diligence records, and marketing materials for potential buyers; (d) subject to the Debtor's prior consent, distribute teasers and/or publish select advertising for broad market exposure and personally contact, as practical, select recipients to gauge interest level and ensure offering attention; (e) obtain indications of interest from the buyer universe; (f) manage buyer activity throughout marketing and assist with buyer data needs; (g) receive bids, advise on bid evaluations, and negotiate purchase and sale agreements with interested buyers; (h) facilitate negotiation of bids to the extent desired by the Debtor; and (i) provide buyer due diligence and closing support, as requested by the Debtor. The firm will receive a commission of 5 percent of the property's gross sales price. Kevin Callahan, a broker at Redaptive Sustainability 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 through: Kevin Callahan Redaptive Sustainability Services, LLC 340 Brannan St., Ste. 400 San Francisco, CA 94107 Telephone: (415) 413-0445 About Supreme Electrical Services Supreme Electrical Services Inc., doing business as Lime Instruments LLC, Lime Electric, and Bingo Interests, is a Houston-based global provider of leading-edge controls and instrumentation systems for the energy and industrial control markets. It offers a flexible hardware and software platform that can be configured and modified to meet the specific needs of the most challenging control applications. Supreme Electrical Services filed Chapter 11 petition (Bankr. S.D. Tex. Case No. 24-90504) on September 11, 2024, with $1 million to $10 million in both assets and liabilities. Christian Schwartz, chief restructuring officer, signed the petition. Judge Christopher Lopez oversees the case. The Debtor tapped Kane Russell Coleman Logan, PC as bankruptcy counsel; Ruth A. Van Meter, PC as conflicts counsel; and M. Christian Schwartz as chief restructuring officer. T.J.F. HOLDING: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: T.J.F. Holding Corp. 475 Amsterdam Ave. New York, NY 10024 Business Description: T.J.F. Holding is a single asset real estate debtor, as defined in 11 U.S.C. Section 101(51B). Chapter 11 Petition Date: January 22, 2025 Court: United States Bankruptcy Court Southern District of New York Case No.: 25-10093 Debtor's Counsel: Fred Stevens, Esq. KLESTADT WINTERS JURELLER SOUTHARD & STEVENS, LLP 200 West 41st Street 17th Floor New York, NY 10036 Tel: (212) 972-3000 Email: fstevens@klestadt.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Amy Rosina Sofia as vice president. The Debtor failed to include a list of its 20 largest unsecured creditors in the petition. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/NN5L5FI/TJF_Holding_Corp__nysbke-25-10093__0001.0.pdf?mcid=tGE4TAMA TBB DEEP: Seeks Chapter 11 Bankruptcy Protection in Texas --------------------------------------------------------- On January 21, 2025, TBB Deep Ellum LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the District of Texas. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will not be available to unsecured creditors. About TBB Deep Ellum LLC TBB Deep Ellum LLC operating as The Biscuit Bar in Dallas, Texas, provides counter-service dining featuring biscuit sandwiches and full-bar service. The company operates from its location at 2550 Pacific Ave in Dallas's Deep Ellum neighborhood. TBB Deep Ellum LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Tex. Case No. 25-30207) on January 21, 2025. In its petition, the Debtor reports estimated assets between $50,000 and $100,000 and estimated liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Michelle V. Larson handles the case. Debtor's Counsel is Thomas Berghman, Esq., at MUNSCH HARDT KOPF & HARR, P.C., in Dallas, Texas. TECHPRECISION CORP: John Moore Resigns as Director -------------------------------------------------- TechPrecision Corporation announced on January 17 that John A. Moore resigned as a member of the board of directors of the Company, effective on Jan. 13, 2025, to focus on his other responsibilities. The Board has decided not to fill the vacancy created by Mr. Moore's resignation at this time. As a result of Mr. Moore's resignation, the composition of the committees of the Board has changed as follows: * Audit Committee: Walter M. Schenker (Chair), Andrew A. Levy and General Victor E. Renuart Jr. * Compensation Committee: Andrew A. Levy (Chair) and Robert D. Straus About Techprecision TechPrecision Corporation, through its wholly owned subsidiaries Ranor, Inc. and Stadco, offers a full range of custom solutions for transforming materials into precision finished welded and machined components, with capabilities up to 100 tons. Their services include manufacturing engineering, materials management and traceability, high-precision heavy fabrication (encompassing in-house operations such as cutting, press and roll forming, welding, heat treating, assembly, blasting, and painting), as well as heavy high-precision machining (featuring in-house CNC programming, finishing, and assembly). Additionally, they provide comprehensive quality control services, including portable CMM inspection, Non-Destructive Testing, and final packaging. Marcum LLP, the Company's auditor since 2013, issued a "going concern" qualification in its report dated Sept. 13, 2024. The report cites several concerns, including the Company's significant losses, default on debt obligations due to non-compliance with debt covenants, and the upcoming due date for its revolving line of credit within the year. Additionally, the Company needs to raise additional funds to meet its obligations and sustain its operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. TOWNSQUARE MEDIA: S&P Rates New Senior Secured Term Loan B 'B+' --------------------------------------------------------------- S&P Global Ratings assigned its 'B+' issue-level rating and '3' recovery rating to Townsquare Media Inc.'s proposed $460 million senior secured term loan B maturing in 2030. The '3' recovery rating indicates S&P's expectation for meaningful (50%-70%; rounded estimate: 65%) recovery for lenders in the event of a payment default. The company plans to use the proceeds, along with $7 million of cash on hand, to repay its $467 million (outstanding) senior secured notes due 2026. The company also plans to issue a new $20 million senior secured revolving credit facility maturing in 2030 (not rated). S&P said, "Our 'B+' issuer credit rating and stable rating outlook on Townsquare are unchanged because the proposed transaction will reduce S&P Global Ratings-adjusted gross leverage by about 0.1x. As of Sept. 30, 2024, the company's S&P Global Ratings-adjusted gross leverage was 4.9x, and we expect it will remain about 4.8x-4.9x in 2025 due to relatively flat EBITDA, as growth in the company's digital offerings is offset by lower political advertising revenue in a non-election year and secular declines in broadcast radio advertising. The proposed term loan includes amortization of 1% per year and will enable the company to repay debt more easily than its existing notes. While voluntary debt reduction is not included in our base case forecast, the company has shown a willingness to do so." ISSUE RATINGS - RECOVERY ANALYSIS Key analytical factors -- Townsquare's proposed capital structure includes a $20 million senior secured revolving credit facility maturing in 2030 (not rated) and a $460 million senior secured term loan B maturing in 2030. -- The proposed revolving credit facility and term loan will be guaranteed by the company's existing and future direct and domestic subsidiaries and secured on a first-lien basis by substantially all of its assets. Simulated default assumptions -- S&P's simulation contemplates a default occurring in 2028 primarily due to increased competition from alternative media and a cyclical downturn in advertising. -- Other default assumptions include an 85% draw on the revolving credit facility, the spread on the revolving credit facility rises to 5% as covenant amendments are obtained, and all debt claims include six months of prepetition interest. -- S&P values the company on a going-concern basis using a 5.5x multiple of its projected emergence EBITDA, which is 0.5x higher than other similarly sized radio companies we rate due to its greater mix of digital revenue. Simplified waterfall -- EBITDA at emergence: About $62 million -- EBITDA multiple: 5.5x -- Gross recovery value: $342 million -- Net enterprise value (after 5% administrative costs): About $325 million -- Total collateral available to senior secured debt claims: About $325 million -- Estimated senior secured debt claims: About $480 million --Recovery expectations: 50%-70% (rounded estimate: 65%) TREE TOWN: Seeks Cash Collateral Access --------------------------------------- Tree Town, LLC asked the U.S. Bankruptcy Court for the Western District of New York for authority to use cash collateral. The company estimates that the total liquidation value of all its property, including property that qualifies as cash collateral, would be no more than $40,000 after accounting for the cost of liquidation. As of Jan. 15, Tree Town was indebted to certain creditors, which may hold or may claim an interest in the cash collateral. These creditors include the New York State Department of Taxation and Finance, which asserts a claim in the amount of $80,523, subject to final determination. The company believes that the agency holds a perfected first position security interest in some of its assets. As adequate protection, holders of pre-bankruptcy liens will be granted roll-over or replacement liens. As additional protection, the Department of Taxation and Finance will receive monthly cash payments in the amount of $1,550 for the pre-bankruptcy unpaid sales taxes. A court hearing is set for Feb. 6. About Tree Town LLC Tree Town, LLC operates a food service location known as Tree Town Cafe located at 745 Penfield Rd., Rochester, N.Y. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. N.Y. Case No. 25-20040) on January 15, 2025, with up to $50,000 in assets and up to $1 million in liabilities. Peter Morgante, member, signed the petition. Mike Krueger, Esq., at McConville Considine Cooman and Morin PC, represents the Debtor as legal counsel. TRUSTED HEATING: Court Extends Use of Cash Collateral Until Feb. 5 ------------------------------------------------------------------ Trusted Heating & Cooling Solutions, Inc. received interim approval from the U.S. Bankruptcy Court for the Eastern District of Michigan, Southern Division to use cash collateral until Feb. 5, marking the second extension since the company's Chapter 11 filing. The court previously issued an interim order, allowing the company to access cash collateral until Jan. 15 only. Old National Bank, a pre-bankruptcy secured lender, was granted replacement liens on all assets of the company as adequate protection for the use of its cash collateral. As additional protection, the bank will receive monthly payments specified in its loan agreement with the company. To the extent that the replacement liens do not adequately protect the bank against the diminution in value of its cash collateral, the bank will be granted an allowed superpriority administrative expense claim. The final hearing is scheduled for Feb. 5. Objections must be filed on or before Feb. 4. About Trusted Heating & Cooling Trusted Heating & Cooling Solutions, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Mich. Case No. 24-32422) on December 23, 2024, with $100,001 to $500,000 in assets and liabilities. Judge Joel D. Applebaum presides over the case. The Debtor is represented by: George E. Jacobs, Esq. Bankruptcy Law Offices Tel: 810-720-4333 Email: george@bklawoffice.com UNLIMITED SOURCE: Seeks to Tap Paul Reece Marr as Legal Counsel --------------------------------------------------------------- Unlimited Source Consulting Agency, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Georgia to employ Paul Reece Marr, PC as counsel. The firm will render these services: (a) provide the Debtor with legal advice regarding its powers and duties; (b) prepare on behalf of the Debtor the necessary legal papers pursuant to the Bankruptcy Code; and (c) perform all other legal services in the Chapter 11 bankruptcy proceeding for the Debtor which may be reasonably necessary. The hourly rates of the firm's counsel and staff are as follows: Paul Reece Marr, Attorney $475 Paralegal $250 In addition, the firm will seek reimbursement to expenses incurred. Mr. Marr 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: Paul Reece Marr, Esq. Paul Reece Marr, PC 6075 Barfield Road, Suite 213 Sandy Springs, GA 30328 Telephone: (770) 984-2255 Email: paul.marr@marrlegal.com About Unlimited Source Consulting Agency Unlimited Source Consulting Agency, LLC is a limited liability company based in Atlanta, Ga. Unlimited Source Consulting Agency filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-50203) on January 6, 2025, with $1 million to $10 million in both assets and liabilities. Paul Reece Marr, Esq., at Paul Reece Marr, PC represents the Debtor as legal counsel. VAI CONSTRUCTION: Seeks to Hire Estelle Miller as Accountant ------------------------------------------------------------ Vai Construction, Inc., seeks approval from the U.S. Bankruptcy Court for the Eastern District of New York to employ Estelle Miller, a certified public accountant practicing in Brooklyn, New York. The accountant will provide these services: (a) gather and verify all pertinent information required to compile and prepare monthly operating reports; and (b) prepare monthly operating reports for the Debtor. The accountant will be compensated at a rate of $300 per report, plus expenses. Ms. Miller received an initial retainer of $3,000 from the Debtor. Ms. Miller 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 through: Estelle Miller, CPA Brooklyn, NY Telephone: (347) 570-7002 Email: estellemillercpa@gmail.com About Vai Construction Vai Construction Inc. is a licensed and insured general contractor. Vai Construction Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-45166) on December 11, 2024. In the petition filed by Taras Vaida, as president, the Debtor reports total assets of $23,486 and total liabilities of $1,361,782. Honorable Bankruptcy Judge Nancy Hershey Lord handles the case. The Debtor tapped the Law Offices of Alla Kachan, PC as counsel and Estelle Miller, CPA, as accountant. VERTEX ENERGY: Exits Chapter 11 Bankruptcy as Privately Held Co. ---------------------------------------------------------------- Lara Sanli of Bloomberg Law reports that Vertex Energy has finalized its financial restructuring and emerged from Chapter 11 as a privately held company. Ownership of the company has transitioned to a group of its lenders, including funds managed by BlackRock Financial Management, Highbridge Capital Management, Whitebox Advisors, and CrowdOut Capital. Mark Smith has been named the new CEO, bringing experience from his previous roles as CEO of Philadelphia Energy Solutions and President of Western Refining, the report states. The restructured company will operate under the direction of a newly appointed five-member board. Houlihan Lokey served as Vertex Energy's financial adviser during the restructuring, according to Bloomberg Law. About Vertex Energy Vertex Energy, Inc., together with its subsidiaries, is an energy transition company and marketer of refined products and renewable fuels in Houston. Vertex Energy filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 24-90507) on September 24, 2024, listing $772,368,000 in assets and $642,819,000 in liabilities. The petitions were signed by R. Seth Bullock as chief restructuring officer. Judge Christopher M. Lopez oversees the case. Jason G. Cohen, Esq., at Bracewell, LLP represents the Debtors as counsel. VROOM INC: Post-Bankruptcy Shares Delivered, Plans Relisting VRM ---------------------------------------------------------------- Vroom, Inc., a leading automotive finance company and a data, AI-powered analytics and digital services platform supporting the automotive industry, provided an update on trading of the Company's common stock and warrants following the Company's emergence from its prepackaged Chapter 11 case on January 14, 2025. -- All post-emergence shares of common stock and warrants, reflecting the previously announced conversion ratio, were delivered by January 15th and should be visible in shareholder brokerage accounts. -- Vroom is working to resume trading on a national securities exchange. While an estimated opening date is currently not available, the Company is working expeditiously to relist the VRM ticker as soon as possible. About Vroom Inc. Vroom, Inc. (NASDAQ: VRM) is a parent company of United Auto Credit Corporation and CarStory. Previously, it was a used car retailer and e-commerce company that let consumers buy, sell, and finance cars online. Vroom ceased e-commerce automotive sales operations in January 2024. Vroom Inc. sought relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-90571) on Nov. 13, 2024. In the petition filed by CEO Thomas Shortt, the Debtor reported total assets of $43,807,067 and total debt of $304,615,138 as of Sept. 30, 2024. Bankruptcy Judge Christopher M. Lopez oversees the case. Porter Hedges LLP, led by John F. Higgins, serves as the Debtor's bankruptcy counsel. Latham Watkins LLP serves as the Debtor's corporate, finance, tax, and securities counsel. Stout Risius Ross, LLC, serves as the Debtor's financial advisor. Deloitte Touche Tohmatsu Limited serves as the Debtor's tax consultant. The Overture Group, LLC, serves as the Debtor's compensation consultant. Verita Global is the Debtor's noticing and solicitation agent. VROOM INC: Professional Fee Claim Deadline Set for February 13 -------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Texas set Feb. 13, 2025, as deadline to file requests for payment of professional fee claims, including professional fee claims incurred during the period from the filing of Chapter 11 petition of Vroom Inc. and its debtor-affiliates through the confirmation date. The Debtors' Chapter 11 prepackaged Chapter 11 plan of reorganization became effective on Jan. 14, 2025. About Vroom Inc. Vroom, Inc. (NASDAQ: VRM) is a parent company of United Auto Credit Corporation and CarStory. Previously, it was a used car retailer and e-commerce company that let consumers buy, sell, and finance cars online. Vroom ceased e-commerce automotive sales operations in January 2024. Vroom Inc. sought relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-90571) on Nov. 13, 2024. In the petition filed by CEO Thomas Shortt, the Debtor reported total assets of $43,807,067 and total debt of $304,615,138 as of Sept. 30, 2024. Bankruptcy Judge Christopher M. Lopez oversees the case. Porter Hedges LLP, led by John F. Higgins, serves as the Debtor's bankruptcy counsel. Latham Watkins LLP serves as the Debtor's corporate, finance, tax, and securities counsel. Stout Risius Ross, LLC, serves as the Debtor's financial advisor. Deloitte Touche Tohmatsu Limited serves as the Debtor's tax consultant. The Overture Group, LLC, serves as the Debtor's compensation consultant. Verita Global is the Debtor's noticing and solicitation agent. VROOM INC: Pursues National Securities Exchange Reinstatement ------------------------------------------------------------- Jim Silver of Bloomberg News reports that Vroom is actively working to relist on a national securities exchange after completing its Chapter 11 proceedings. While the estimated opening date has not been announced, all post-emergence common shares and warrants were issued on January 15, 2025, the report says. About Vroom Inc. Vroom, Inc. (NASDAQ: VRM) is a parent company of United Auto Credit Corporation and CarStory. Previously, it was a used car retailer and e-commerce company that let consumers buy, sell, and finance cars online. Vroom ceased e-commerce automotive sales operations in January 2024. Vroom Inc. sought relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-90571) on Nov. 13, 2024. In the petition filed by CEO Thomas Shortt, the Debtor reported total assets of $43,807,067 and total debt of $304,615,138 as of Sept. 30, 2024. Bankruptcy Judge Christopher M. Lopez oversees the case. Porter Hedges LLP, led by John F. Higgins, serves as the Debtor's bankruptcy counsel. Latham Watkins LLP serves as the Debtor's corporate, finance, tax, and securities counsel. Stout Risius Ross, LLC, serves as the Debtor's financial advisor. Deloitte Touche Tohmatsu Limited serves as the Debtor's tax consultant. The Overture Group, LLC, serves as the Debtor's compensation consultant. Verita Global is the Debtor's noticing and solicitation agent. WATER'S EDGE: Seeks to Hire Gray Gray & Gray as Accountant ---------------------------------------------------------- Water's Edge Limited Partnership seeks approval from the U.S. Bankruptcy Court for the District of Massachusetts to employ Gray, Gray & Gray, LLP as accountant. The firm will render these services: (a) prepare federal and state tax returns; (b) provide bookkeeping services necessary to assist the Debtor by, among other things, recording all financial transactions and reconciling all transactions with bank statements; (c) adjust books and records annually or as may be required; (d) file annual reports; (e) provide tax advice as requested by the Debtor; and (f) provide such other services as may be requested by the Debtor. The firm's hourly rates range from $110 to $710. In addition, the firm will seek reimbursement to expenses incurred. Bradford Carlson, a partner at Gray, Gray & Gray, 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: Bradford Carlson Gray, Gray & Gray, LLP 150 Royall St., Ste. 102 Canton, MA 02021 Telephone: (781) 407-0300 About Water's Edge Limited Partnership Water's Edge Limited Partnership is primarily engaged in renting and leasing real estate properties. Water's Edge Limited Partnership sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 24-12445) on December 5, 2024. In the petition filed by Evelyn M. Carabetta, authorized representative, the Debtor reports estimated assets and liabilities between $10 million and $50 million each. Honorable Bankruptcy Judge Christopher J. Panos handles the case. The Debtor tapped David Frye, Esq., at Russo, Frye & Associates, LLP as counsel; Verdolino & Lowey, PC as financial advisor; and Bradford Carlson at Gray, Gray & Gray, LLP as accountant. WELLPATH HOLDINGS: Seeks Executive Bonus Plan Court Approval ------------------------------------------------------------ Randi Love of Bloomberg Law reports that Wellpath Holdings Inc., a struggling prison health-care provider, is seeking approval from a bankruptcy court to allocate up to $4.6 million in incentive bonuses to 12 executives, contingent upon meeting specific performance targets. In a January 17, 2025 filing with the U.S. Bankruptcy Court for the Southern District of Texas, Wellpath explained that the incentive program is vital as the senior management team is key to the company's restructuring and ongoing operations. The company, one of the largest providers of health care in U.S. prisons and jails, filed for Chapter 11 bankruptcy in November 2024, according to Bloomberg Law. About Wellpath Holdings, Inc. Wellpath Holdings, Inc. f/k/a CCS-CMGC Holdings, Inc., is a provider of medical and mental healthcare in jails, prisons, and inpatient and residential treatment facilities. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 24-90533) on November 11, 2024, with $1 billion to $10 billion in assets and liabilities. Timothy Dragelin, chief restructuring officer and chief financial officer, signed the petitions. The Debtor tapped Marcus A. Helt, Esq. at McDERMOTT WILL & EMERY LLP as bankruptcy counsel; FTI CONSULTING, INC. as financial advisor; and LAZARD FRERES & CO. LLC and MTS PARTNERS, LP as investment bankers. WILSON CREEK: Seeks to Hire Ordinary Course Professionals --------------------------------------------------------- Wilson Creek Energy, LLC and its affiliates seek approval from the U.S. Bankruptcy Court for the Western District of Pennsylvania to employ non-bankruptcy professionals in the ordinary course of business. The Debtors need ordinary course professionals (OCPs) to perform services for matters unrelated to these Chapter 11 cases. The Debtors seek to pay OCPs 100 percent of the fees and expenses incurred. The Debtors do not believe that any of the ordinary course professionals have an interest materially adverse to them, their estates, creditors, or other parties in interest in connection with the matter upon which they are to be engaged. The OCPs' include: -- Gregg M. Rosen Law Office of Gregg M. Rosen 765 Crandon Blvd., Apt. 604 Key Biscayne, FL 33149 -- Coulter & Justus PC 9717 Cogdill Road, Suite 201 Knoxville, TN 37932 About Wilson Creek Energy Through their U.S.-based operating subsidiaries, the Debtors supply premium-quality metallurgical coal, an essential ingredient in steel production. The Debtors' core business involves the mining, production, and supply of premium-quality metallurgical coal, which is sold to both domestic and international steel and coke producers. The sources of the Debtors' metallurgical coal include: (i) coal that the Debtors produce, and (ii) coal that the Debtors purchase from third parties, which they then enhance through value-added services such as storing, washing, blending, and loading, making the coal suitable for sale. The Debtors' headquarters is located in Friedens, Somerset County, Pennsylvania. All of the Debtors' physical assets, mining operations, and employees are based in Somerset County, Pennsylvania, and Garrett County, Maryland. Wilson Creek Energy, LLC and its affiliates sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Pa. Lead Case No. 25-70001) on January 6, 2025. In the petitions signed by Kevin M. Harrigan in his capacity as president and chief executive officer, Wilson Creek Energy disclosed estimated assets of $50 million to $100 million and total estimated liabilities of $10 million to $50 million. Judge Jeffery A. Deller presides over the cases. The Debtors tapped Raines Feldman Littrell LLP as bankruptcy counsel; Stikeman Elliott LLP as Canadian insolvency counsel; Pricewaterhousecoopers LLP as Canadian information officer; and BDO USA as financial advisors and consultants. Omni Agent Solutions, Inc. is the Debtors' claims & noticing agent. WILSON CREEK: Seeks to Hire Raines Feldman Littrell as Counsel -------------------------------------------------------------- Wilson Creek Energy, LLC and its affiliates seek approval from the U.S. Bankruptcy Court for the Western District of Pennsylvania to employ Raines Feldman Littrell LLP as counsel. The firm will provide these services: (a) advise the Debtors with respect to their powers and duties; (b) advise and consult on the conduct of these Chapter 11 cases; (c) attend meetings and negotiating with representatives of creditors and other parties in interest; (d) take all necessary actions to protect and preserve the Debtors' estates; (e) prepare pleadings in connection with these Chapter 11 cases; (f) represent the Debtors in connection with obtaining authority to continue using cash collateral and postpetition financing; (g) advise the Debtors in connection with any potential sale of assets; (h) appear before the court and any appellate courts to represent the interests of the Debtors' estates; (i) take 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 (j) perform all other necessary legal services for the Debtprs in connection with the prosecution of these Chapter 11 cases. The firm will be paid at these hourly rates: Partners, Counsel and Associates $425 - $875 Paraprofessionals $315 - $375 In addition, the firm will seek reimbursement for expenses incurred. The firm received an advance payment retainer of $20,000 from the Debtor. Michael Roeschenthaler, Esq., a partner at Raines Feldman Littrell, also provided the following in response to the request for additional information set forth in Section D of the Revised U.S. Trustee Guidelines: Question: Did Raines agree to any variations from, alternatives to Raines' standard billing arrangements for this engagement? Answer: No. Question: Do any of the Raines professionals in the engagement vary their rate based on the geographical location of the Debtors' Chapter 11 cases? Answer: No. Question: If Raines has represented the Debtors in the 12 months prepetition, disclose Raines' billing rates and material financial terms for the prepetition engagement, including any adjustments during the 12 months prepetition. If Raines' billing rates and materials financial terms have changed postpetition explain the differences and the reasons for the difference. Answer: Raines' implements incremental adjustments to the hourly rates of its professionals at the beginning of each calendar year. Raines current hourly rates currently range from $425 - $825 for partners, counsel and associates. These rates reflect the 2025 rate changes. In 2024, the rates ranges were $415 - $825. Question: Have the Debtors approved Raines' budget and staffing plan, and, if so, for what budget period? Answer: The proposed budget for professional fees is set forth in the budget that has been approved by the client and the Court in connection with the Interim Modified Order Granting Debtors' Emergency Motion for Entry of Interim and Final Orders (I) Authorizing the Debtors to Obtain Post-Petition Financing, (II) Authorizing the Debtors to Use Cash Collateral, (III) Granting Liens and Providing Superpriority Administrative Expense Status, (IV) Approving Adequate Protection, (V) mOdifying the Automatic Stay, (VI) Scheduling a Final Hearing, and (VII) Granting Related Relief. Mr. Roeschenthaler 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 J. Roeschenthaler, Esq. Raines Feldman Littrell LLP 11 Stanwix Street, Suite 1100 Pittsburgh, PA 15222 Telephone: (412) 899-6462 Email: mroeschenthaler@raineslaw.com About Wilson Creek Energy Through their U.S.-based operating subsidiaries, the Debtors supply premium-quality metallurgical coal, an essential ingredient in steel production. The Debtors' core business involves the mining, production, and supply of premium-quality metallurgical coal, which is sold to both domestic and international steel and coke producers. The sources of the Debtors' metallurgical coal include: (i) coal that the Debtors produce, and (ii) coal that the Debtors purchase from third parties, which they then enhance through value-added services such as storing, washing, blending, and loading, making the coal suitable for sale. The Debtors' headquarters is located in Friedens, Somerset County, Pennsylvania. All of the Debtors' physical assets, mining operations, and employees are based in Somerset County, Pennsylvania, and Garrett County, Maryland. Wilson Creek Energy, LLC and its affiliates sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Pa. Lead Case No. 25-70001) on January 6, 2025. In the petitions signed by Kevin M. Harrigan in his capacity as president and chief executive officer, Wilson Creek Energy disclosed estimated assets of $50 million to $100 million and total estimated liabilities of $10 million to $50 million. Judge Jeffery A. Deller presides over the cases. The Debtors tapped Raines Feldman Littrell LLP as bankruptcy counsel; Stikeman Elliott LLP as Canadian insolvency counsel; Pricewaterhousecoopers LLP as Canadian information officer; and BDO USA as financial advisors and consultants. Omni Agent Solutions, Inc. is the Debtors' claims & noticing agent. WOM SA: Plan Exclusivity Period Extended to March 21 ---------------------------------------------------- Judge Karen B. Owens of the U.S. Bankruptcy Court for the District of Delaware extended WOM SA and its affiliates' exclusive periods to file a plan of reorganization and obtain acceptance thereof to March 21, 2025 and May 20, 2025, respectively. As shared by Troubled Company Reporter, Debtors claim that the Company's business also involves a variety of stakeholders including suppliers, customers, financial creditors, and governmental regulators. The Debtors operate or franchise over 200 stores throughout Chile and employ approximately 7,000 employees and independent contractors. These facts further demonstrate the complexity and size of these Chapter 11 Cases, and the Debtors must work through the myriad issues that a business of this scale faces when rebuilding its operations through the chapter 11 process. The Debtors believe that, in light of the progress made in these Chapter 11 Cases, it is reasonable to request an additional extension of the Exclusive Periods to allow the Debtors more time to negotiate key documents with their stakeholders and solicit votes on the Plan in order to ensure an efficient exit from chapter 11. Granting the requested extensions will facilitate the Debtors' efforts by providing the Debtors with a full and fair opportunity to continue these efforts without the distraction of competing plans. The Debtors assert that they have obtained support for the Plan from the AHG and the Committee pursuant to the PSA. An extension of the Exclusivity Periods would provide the Debtors with more time to prosecute the Plan, negotiate key Plan documents, and reach consensus with other constituencies, which would advance the prospect of a fully consensual Plan confirmation hearing. The Debtors further assert that the extension is not sought for the purpose of pressuring creditors. Rather, the Debtors will use any extension granted by this Court to work to obtain consensus support to solicit the Plan and draft key documents for the reorganization transactions. Further, the Debtors consulted with and provided certain key constituents, including the AHG and the Committee, with an opportunity to review and comment on the Debtors' second request for an extension of the Exclusivity Periods prior to filing this Motion. Co-Counsel to the Debtors: John K. Cunningham, Esq. Richard S. Kebrdle, Esq. WHITE & CASE LLP Southeast Financial Center 200 South Biscayne Boulevard, Suite 4900 Miami, Florida 33131 Tel: (305) 371-2700 Email: jcunningham@whitecase.com rkebrdle@whitecase.com - and - Philip M. Abelson, Esq. Andrew Zatz, Esq. Samuel P. Hershey, Esq. Andrea Amulic, Esq. Lilian Marques, Esq. Claire Tuffey, Esq. 1221 Avenue of the Americas New York, NY 10020 Phone: (212) 819-8200 Email: philip.abelson@whitecase.com azatz@whitecase.com sam.hershey@whitecase.com andrea.amulic@whitecase.com lilian.marques@whitecase.com claire.tuffey@whitecase.com Co-Counsel to the Debtors: John H. Knight, Esq. Amanda R. Steele, Esq. Brendan J. Schlauch, Esq. RICHARDS, LAYTON & FINGER, P.A. One Rodney Square 920 North King Street Wilmington, Delaware 19801 Tel: (302) 651-7700 Email: knight@rlf.com steele@rlf.com schlauch@rlf.com About WOM SA WOM is a Chilean telecommunications provider, focused on offering mobile voice, data, and broadband services, along with a rapidly expanding "Fiber to the Home" broadband offering, to consumers and businesses in Chile. Since the acquisition of Nextel Chile in 2015 through Novator Partners LLP's investment vehicle NC Telecom AS, WOM has expanded from having virtually no market share to establishing itself as the second-largest mobile network operator in Chile. WOM sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-10628) on April 1, 2024. In the petition filed by Timothy O'Connoer, as independent director, the Debtor reports estimated assets and liabilities between $1 billion and $10 billion each. The Honorable Bankruptcy Judge Karen B. Owens oversees the case. The Debtors tapped White & Case, LLP as general bankruptcy counsel; Richards, Layton & Finger, P.A. as local bankruptcy counsel; Riveron Consulting, LLC as financial advisor; and Rothschild & Co US Inc. as investment banker. Kroll Restructuring Administration, LLC is the claims agent. YELLOW CORP: Settles Worker Layoff Disputes Ahead of Union Trial ---------------------------------------------------------------- Angelica Serrano-Roman of Bloomberg Law reports that Yellow Corp. has reached a tentative settlement with two groups seeking damages for laid-off workers, allowing its bankruptcy trial to shift focus to union-related claims. At the start of proceedings in the U.S. Bankruptcy Court for the District of Delaware on January 21, 2025, Yellow announced agreements with parties involved in the Moore and Coughlen lawsuits, the report relates. The company stated that settlement details are being finalized and will remain confidential until the trial ends and a motion for approval is filed. The trial will now address Yellow's compliance with the Worker Adjustment and Retraining Notification (WARN) Act during the layoffs, according to Bloomberg Law. About Yellow Corporation Yellow Corporation -- http://www.myyellow.com/-- operates logistics and less-than-truckload (LTL) networks in North America, providing customers with regional, national, and international shipping services throughout. Yellow's principal office is in Nashville, Tenn., and is the holding company for a portfolio of LTL brands including Holland, New Penn, Reddaway, and YRC Freight, as well as the logistics company Yellow Logistics. Yellow Corporation and 23 affiliates concurrently filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 23-11069) on August 6, 2023, before the Hon. Craig T. Goldblatt. As of March 31, 2023, Yellow Corporation had $2,152,200,000 in total assets against $2,588,800,000 in total liabilities. The petitions were signed by Matthew A. Doheny as chief restructuring officer. The Debtors tapped Kirkland & Ellis, LLP as restructuring counsel; Pachulski Stang Ziehl & Jones, LLP as Delaware local counsel; Kasowitz, Benson and Torres, LLP as special litigation counsel; Goodmans, LLP as special Canadian counsel; Ducera Partners, LLC, as investment banker; and Alvarez and Marsal as financial advisor. Epiq Bankruptcy Solutions is the claims and noticing agent. Milbank LLP serves as counsel to certain investment funds and accounts managed by affiliates of Apollo Capital Management, L.P. while White & Case, LLP and Arnold & Porter Kaye Scholer, LLP serve as counsels to Beal Bank USA and the U.S. Department of the Treasury, respectively. On Aug. 16, 2023, the U.S. Trustee for Region 3 appointed an official committee of unsecured creditors in the Chapter 11 cases. The committee tapped Akin Gump Strauss Hauer & Feld, LLP and Benesch, Friedlander, Coplan & Aronoff, LLP as counsels; Miller Buckfire as investment banker; and Huron Consulting Services, LLC, as financial advisor. ZOLLEGE PBC: Saratoga Marks $1.4MM Loan at 24% Off -------------------------------------------------- Saratoga Investment Corp has marked its $1,461,250 loan extended to Zollege PBC to market at $1,103,390 or 76% of the outstanding amount, according to a disclosure contained in Saratoga's Amended Form 10-Q for the Quarterly period ended November 30, 2024, filed with the Securities and Exchange Commission. Saratoga is a participant in a First Lien Term Loan to Zollege PBC. The Loan accrues interest at a rate of 4.84% Payment In Kind) per annum. The loan matures on August 9, 2027. Saratoga said the Loan was on non-accrual status as of November 30, 2024. Saratoga Investment Corp is a non-diversified closed-end management investment company incorporated in Maryland that has elected to be treated and is regulated as a business development company under the Investment Company Act of 1940, as amended. Saratoga is led by Christian L. Oberbeck, Founder, Chief Executive Officer; and Henri J. Steenkamp, Chief Financial Officer and Chief Compliance Officer. The Fund can be reach through: Christian L. Oberbeck Saratoga Investment Corp 535 Madison Avenue New York, NY 10022 Tel. No.: (212) 906-7800 Zollege PBC operates as a tech-enabled apprenticeship and education company that offers vocational training programs such as dental assistant, medical assistant, nurse, software developer, and cybersecurity specialist programs. [*] AIRA Awards 2024 CIRA and CDBV Certifications to Members ------------------------------------------------------------ Rendering financial advisory services in the business turnaround, restructuring and bankruptcy practice areas requires both special knowledge and extensive relevant experience. In 1992, AIRA established the Certified Insolvency and Restructuring Advisor (CIRA) program to recognize by public awareness and certification those individuals who possess a high degree of knowledge and proficiency across a spectrum of functions related to serving clients in situations involving distressed and/or insolvent entities. Such expertise includes accounting, operations, strategic, taxation, and finance issues related to business insolvency and bankruptcy. Having completed the requirements for certification in 2024, AIRA has awarded the following AIRA members CIRA certification: Matthew Altman M3 Partners, LP New York, NY Caitlin Appling FTI Consulting, Inc. New York, NY Ryan Belden Stapleton Group Solano Beach, CA Russell Brooks FTI Consulting, Inc. Glen Allen, VA Angela Castillo Zuleta FTI Consulting, Inc. Atlanta, GA Cherie Chow FTI Consulting, Inc. Los Angeles, CA Matthew Christensen Johnson May PLLC Boise, ID Lauren Dombrowski M3 Partners, LP New York, NY Matthew Flahive Stapleton Group, part of JS San Diego, CA Held Milosz Gawlik Focus Management Group USA Inc. Chicago, IL James Goodyear FTI Consulting, Inc. Dallas, TX Hyoseob Joo KPMG LLP Detroit, MI Michelle Kainen Office of the U.S. Trustee San Diego, CA Mark Kennedy EY Parthenon Atlanta, GA Andrew Kim Sumitomo Mitsui Banking Corp. New York, NY David Kiyosaki FTI Consulting, Inc. Denver, CO Joshua Korn Oliver Wyman New York, NY Daniel Lewis Maranon Capital Chicago, IL Chandler Lidia D.R. Payne & Associates, Inc. Oklahoma City, OK Catherine Moran FTI Consulting, Inc. Denver, CO Robert Nowlin Ankura Lake Forest, IL Bryant Oberg BNENDS, LLC Ventura, CA Rajat Prakash Executive in Transition Spring, TX Azra Raza Ankura Houston, TX Adnan Riaz Tarbela Capital Ridgewood, NJ Rodrigo Rodriguez Martinez Huron Consulting Group Chicago, IL Alejandra Rueda Espinosa FTI Consulting, Inc. Sao Paulo, SP Terrance Ward Solic Capital Chicago, IL Charles Winn Huron Consulting Group Austin, TX. Additionally, in 2004, AIRA launched the Certification in Distressed Business Valuation (CDBV) program to train and accredit professionals in the highly specialized area of distressed asset valuation including the valuation of distressed and insolvent companies. The CDBV program requires the successful completion of an intensive three-part course of study and uniform written examination and demonstration of practical knowledge by case experience and references. Having completed the requirements for certification in 2024, AIRA has awarded the following AIRA members the CDBV certification: Ernesto Solis Fix Partners Santiago, Chile Ara Stepanyan The Brattle Group Boston, MA Katerina Yovchev Sumitomo Mitsui Banking Corporation New York, NY About AIRA The Association of Insolvency and Restructuring Advisors (AIRA) is a nonprofit professional association serving financial advisors, accountants, crisis managers, business turnaround consultants, lenders, investment bankers, attorneys, trustees, and other individuals involved in the fields of business turnaround, restructuring, insolvency and bankruptcy. AIRA's mission is to (i) Unite and support professionals providing business turnaround, restructuring and bankruptcy services, and (ii) Develop, promote and maintain professional standards of practice, including a professional certification through the CIRA and Certification in Distressed Business Valuation (CDBV) programs. For additional information on AIRA, visit www.aira.org. For additional conference and program information, visit https://aira.org/conference. [*] Chicago Mixed-Use Property Up for Auction Feb. 19 ----------------------------------------------------- A court-ordered real estate auction will take place on Feb. 19, 2025, for the sale of a mixed-used commercial & residential building at 6422 N. Sheridan Road, Chicago, Illinois. Suggested opening bid is $14,500,000. The property was valued in excess of $20,000,000. Further information regarding the sale, contact, Rick Levin & Associates Inc., Tel: 312-440-2000. [*] Jeffrey Ramsay Joins Paul Hastings' Finance Practice in N.Y. ---------------------------------------------------------------- In a move that strategically enhances its Investment Grade Finance practice, Paul Hastings LLP on Jan. 22, 2025 announced that capital markets attorney Jeffrey Ramsay has joined as a partner in the firm's New York office. Joining from Davis Polk, where he practiced for more than 20 years, Ramsay has extensive experience in capital markets transactions and financings, with a focus on investment-grade and high-yield debt offerings as well as equity and equity-linked deals, including IPOs, follow-ons, block trades, liability management and debt restructuring matters. "Jeff adds significant bench strength and depth to our strong Investment Grade Finance practice," said Global Finance partner Morgan Bale. "His wide experience and deep market knowledge further position us to expand our representation of leading investment and commercial banks, corporate clients and asset managers on some of the largest and highest-profile event-driven financings and corporate transactions." In addition to his transactional work, Ramsay is a trusted advisor to investment banking clients on securities law and corporate clients on corporate governance, SEC compliance, and general corporate matters. His industry expertise spans life sciences, technology, financial services, energy, entertainment, consumer products and industrials. Ramsay has advised banks, including Barclays, Bank of America Securities, J.P. Morgan, Morgan Stanley, TD Securities and Wells Fargo Securities, and completed investment-grade debt offerings for The Cigna Group, Medtronic and TD Bank, high-yield debt offerings for Chobani and WMG Acquisition, and IPOs for Royalty Pharma and Warner Music Group. "Paul Hastings has built premier teams across practices, including in the investment-grade bond and loan markets," said Ramsay. "I could not be more excited to join the firm and look forward to introducing its leading corporate and finance platform to my existing client relationships while contributing to its impressive growth." Ramsay's arrival bolsters a strong team led by Bale-who joined in 2022-which is focused on investment grade finance. Combining Paul Hastings' existing investment grade client base with Ramsay's practice reinforces the firm's place among the top players in investment grade transactions. The firm's capital markets and global finance practices have seen significant gains in market share and synergistic growth with the addition of more than 40 partners in the last two years across the firm's global footprint. Notable investment-grade transactions over the past year include the firm's representation of banks and financing sources on financings for Verizon's pending $20 billion acquisition of Frontier Communications, Occidental Petroleum's $12 billion acquisition of CrownRock, ONEOK's $6 billion combined acquisitions of EnLink and Medallion Midstream and Sixth Street Partners' pending $5.1 billion acquisition of Enstar Group Limited. Paul Hastings' Investment Grade Finance practice advises leading global banks, financial institutions and corporations on their most significant investment-grade financing matters, from acquisition and other event-driven financings, bridge financings, revolving facilities and other syndicated lending to debt and equity securities offerings. The firm was recently named "Banking Law Firm of the Year" at the Chambers USA Awards 2024 and is Band 1-ranked for Banking & Finance and ranked in the top 10 for US IPOs, US Equity Offerings, US High-Yield Corporate Bonds, US Loans, US Leveraged Finance and US Leveraged Loans by deal count in Bloomberg's FY2024 league tables. About Paul Hastings With widely recognized elite teams in finance, mergers & acquisitions, private equity, restructuring and special situations, litigation, employment, and real estate, Paul Hastings is a premier law firm providing intellectual capital and superior execution globally to the world's leading investment banks, asset managers, and corporations. For more information, visit http://www.paulhastings.com [*] Otterbourg Appoints Six New Equity Members ---------------------------------------------- Otterbourg P.C. announced the election of six new equity members, the most the firm has ever promoted in one year. The new Shareholders are David Castleman, Pauline McTernan, Nicholas Palazzolo, Michael Regina, Michael Rich and Lena Surilov. In addition, Otterbourg has named Gabriela Leon, Michael Maizel and Michael Pantzer to counsel. The large class is a testament to the firm's success across multiple industries in New York. "We applaud these nine outstanding attorneys for their well-deserved promotions, which recognize the excellent service they have provided to our clients over the years," said Richard L. Stehl, Otterbourg's chairman. "Their individual talents and dedication to the firm add tremendous value and does not go unnoticed. I look forward to their continued success and growth in these new roles." New Members: David Castleman – Restructuring & Bankruptcy, Litigation, and Privacy & Cybersecurity Mr. Castleman focuses primarily on federal equity receiverships and complex litigation in state and federal courts and serves as Receiver in the Southern District of New York over a $250 million alleged Ponzi scheme. He serves as vice-chair of the ABA's Business Bankruptcy Committee's Derivatives and Digital Assets Subcommittee and co-chair of the Amicus Committee of the National Association of Federal Equity Receivers, and he is a member of the Federal Bar Council and the Wall Street Blockchain Alliance. Mr. Castleman earned his J.D., cum laude, from the University of Pennsylvania Law School and his A.B., cum laude, from Dartmouth College. Pauline McTernan – Litigation, Restructuring Ms. McTernan represents corporations, governmental agencies, financial institutions and entrepreneurs in a wide range of commercial litigation, class action and bankruptcy matters. She has advised clients on disputes involving a diverse array of issues, including breach of contract, fraud, entitlement to tax refunds, lender liability, mass torts, and employment and corporate governance matters. Ms. McTernan earned her J.D., cum laude, from New York University and her B.A. from the University of Wisconsin-Madison. Nicholas Palazzolo – Banking & Finance Mr. Palazzolo represents banks, commercial finance companies and other institutional lenders in connection with the structuring and documentation of loan transactions. He earned his J.D., magna cum laude, from Brooklyn Law School and his B.S. from Binghamton University. Michael Regina – Banking & Finance Mr. Regina represents banks, commercial finance companies, factors, and other institutional lenders in connection with the structuring and documentation of loan transactions, including asset-based loans, term loans and other structured finance transactions, as well as portfolio acquisitions and dispositions. He also has expertise with syndicated and single lender transactions, as well as multicurrency and cross border transactions. Mr. Regina earned his J.D. summa cum laude from the University of Miami School of Law and his B.A., magna cum laude, from Monmouth University. Michael Rich – Banking & Finance, and Real Estate Mr. Rich represents banks, hedge funds, private equity funds, commercial finance companies and other institutional lenders in connection with the structuring and documentation of lease and loan transactions, including asset-based, cash flow and structured finance transactions, and portfolio acquisitions and dispositions. Mr. Rich also represents buyers and sellers, whether individuals, joint ventures, or funds in connection with purchase and sale transactions, throughout the country – some including a single property, and others a large portfolio. He earned his J.D., magna cum laude, from St. John's University School of Law and his B.A., summa cum laude, from St. John's University. Lena Surilov – Banking & Finance Ms. Surilov represents financial institutions and other commercial finance companies in structuring, negotiating, and documenting domestic and cross-border complex debt financing transactions, with a focus on asset-based financing. She also represents single lenders and syndicates in revolving credit facilities, term loans, refinancings, acquisition financing, lender finance transactions, debtor-in-possession and bankruptcy exit credit financing transactions. Ms. Surilov works with companies in a variety of industries, including retail, manufacturing, technology, financial services, healthcare and service. She earned her J.D. from Boston College Law School, her M.B.A from Boston College Carroll School of Management and her B.A. from Wesleyan University. New Counsel: Gabriela Leon – Litigation Ms. Leon focuses her practice on representing businesses and entrepreneurs in high-stakes litigation and arbitration. She earned her J.D. from Cornell Law School and her B.A. from Cornell University. Michael Maizel – Restructuring & Bankruptcy Mr. Maizel represents debtors, official and ad hoc creditors' committees, and secured and unsecured creditors in all aspects of complex chapter 11 bankruptcy cases. He also represents receivers and other court-appointed fiduciaries and provides legal support in mediation. Mr. Maizel served as Law Clerk to U.S. Bankruptcy Judge Nancy Lord. He earned his J.D. from Benjamin N. Cardozo School of Law, and his M.A. and B.A. from Tulane University. Michael Pantzer – Restructuring & Bankruptcy Mr. Pantzer's practice focuses on the representation of debtors, creditors, fiduciaries, and other parties in interest in commercial bankruptcy cases and other insolvency matters. He served as Law Clerk to U.S. Bankruptcy Judge Alan Trust. Mr. Pantzer earned his J.D., magna cum laude, from the University at Buffalo School of Law, his M.B.A. from the University at Buffalo School of Management, and his B.A. from University of Hawaii at Manoa. About Otterbourg P.C. Otterbourg P.C. offers clients a unique combination of legal insight and practical solutions and is known for its integrity, stability and business knowledge. The firm regularly represents clients in matters of national and international scope, including institutional lenders and creditors such as banks, asset-based lenders, hedge funds and private equity firms. The firm's practice includes domestic and cross-border financings, litigation and alternative dispute resolutions, mergers and acquisitions and other corporate transactions, real estate, restructuring and bankruptcy proceedings, and trusts and estates. [*] Proskauer Reports Private Credit Defaults Rose in 4Q 2024 ------------------------------------------------------------- Rene Ismail of Bloomberg Law reports that the private credit default rate rose to 2.67% in the fourth quarter, up from 1.95% in the previous three-month period, according to a report released Monday, January 20, 2025, by law firm Proskauer Rose LLP. The overall default rate remains relatively steady compared to the 2.71% reported in mid-2024, the report says. For companies with EBITDA below $25 million, the default rate decreased to 1.8% from 2% in the third quarter, while the default rate for companies with EBITDA above $50 million increased to 1.7% from 0.8% in Q3, the report states. [*] Rion Vaughan Joins Rubin and Rudman as Bankruptcy Partner ------------------------------------------------------------- Rubin and Rudman announced that Rion M. Vaughan has joined the firm as a partner in the Bankruptcy and Creditors' Rights practice group. With extensive experience in insolvency, distressed asset transactions, and complex commercial litigation, Vaughan adds a multidimensional perspective to the firm's accomplished team of bankruptcy attorneys. Vaughan represents clients in formal and out-of-court insolvency proceedings, including Chapter 11 reorganizations and liquidations, distressed asset sales, and bankruptcy litigation. His practice spans several key areas, including bankruptcy restructuring, distressed financing, M&A transactions, and bankruptcy litigation in both state and federal courts. Before joining Rubin and Rudman, Vaughan was an attorney at Ruberto, Israel & Weiner, P.C., where he led clients through complex Chapter 11 reorganizations, including representing six debtor entities in a successful -- 363 sale and confirmation of a plan of distribution under Subchapter V in Delaware bankruptcy court. He also played an instrumental role in guiding a Boston-based cement company through a successful reorganization that preserved over 30 jobs. Vaughan's expertise in distressed asset sales includes his representation of the purchaser of distressed hotel loans in a transaction that resulted in full reimbursement of attorney's fees and title to the mortgaged property. His experience also extends to high-stakes litigation, including the prosecution and defense of avoidance claims in bankruptcy court, and his successful recovery of misappropriated investor funds in a massive Ponzi scheme case. "We are delighted to welcome Rion to our team," said John J. McGivney, managing partner at Rubin and Rudman. "His deep expertise in distressed asset transactions and bankruptcy restructuring, paired with his hands-on experience in high-stakes bankruptcy litigation, makes him a perfect fit for our growing practice." Vaughan earned his J.D., cum laude, from Boston College Law School in 2013 and his B.A., magna cum laude, from Stonehill College in 2009. About Rubin and Rudman LLP Founded over a century ago, Rubin and Rudman is a full-service law firm with over 90 lawyers in Boston, Massachusetts. With a diverse mix of practices, Rubin and Rudman serves national and international companies, including large public companies and closely held businesses; real estate developers; biotechnology, pharmaceutical and medical device makers; regulated industries, public entities and municipalities; insurance companies and their insureds; educational and other institutions; non-profit organizations; families and high net worth individuals. Rubin and Rudman also has suburban offices in Andover and Woburn, Massachusetts. Web: www.rubinrudman.com. [^] Recent Small-Dollar & Individual Chapter 11 Filings ------------------------------------------------------- In re Pacific Holdings Northwest LLC Bankr. N.D. Ga. Case No. 24-62736 Chapter 11 Petition filed December 2, 2024 See https://www.pacermonitor.com/view/CGXPAYY/Pacific_Holdings_Northwest_LLC__ganbke-24-62736__0001.0.pdf?mcid=tGE4TAMA Filed Pro Se In re The Kelvin Special LLC Bankr. N.D. Ga. Case No. 25-50209 Chapter 11 Petition filed January 7, 2025 Filed Pro Se In re Jessica Danielle Escott Bankr. N.D. Ala. Case No. 25-00099 Chapter 11 Petition filed January 14, 2025 In re Shahram Jeff Javidzad Bankr. C.D. Cal. Case No. 25-10248 Chapter 11 Petition filed January 14, 2025 In re Amy Anne Corpus Bankr. E.D. Cal. Case No. 25-10088 Chapter 11 Petition filed January 14, 2025 represented by: Peter L. Fear, Esq. In re Linh Tran Bankr. N.D. Cal. Case No. 25-50040 Chapter 11 Petition filed January 14, 2025 represented by: Arasto Farsad, Esq. In re Keith Michael Cyzen Bankr. N.D. Ill. Case No. 25-00504 Chapter 11 Petition filed January 14, 2025 represented by: Baldo Chavez, Esq. In re Chicken Shack, LLC Bankr. N.D. Fla. Case No. 25-40014 Chapter 11 Petition filed January 14, 2025 See https://www.pacermonitor.com/view/4RG5X4I/Chicken_Shack_LLC__flnbke-25-40014__0001.0.pdf?mcid=tGE4TAMA represented by: Byron W. Wright III, Esq. BRUNER WRIGHT, P.A. Email: twright@brunerwright.com In re Apples Tree Top Liquors, LLC Bankr. S.D. Ind. Case No. 25-90025 Chapter 11 Petition filed January 14, 2025 See https://www.pacermonitor.com/view/LZHCK4I/Apples_Tree_Top_Liquors_LLC__insbke-25-90025__0001.0.pdf?mcid=tGE4TAMA represented by: Michael McClain, Esq. MCCLAIN LAW GROUP, PLLC Email: mmcclain@mcclainlawgroup.com In re Personal Lawn Care LLC Bankr. D. Kan. Case No. 25-20033 Chapter 11 Petition filed January 14, 2025 See https://www.pacermonitor.com/view/DU2T5KQ/Personal_Lawn_Care_LLC__ksbke-25-20033__0001.0.pdf?mcid=tGE4TAMA represented by: George J Thomas, Esq. PHILLIPS & THOMAS LLC Email: geojthomas@gmail.com In re 1Monark, LLC Bankr. D. Mass. Case No. 25-40042 Chapter 11 Petition filed January 14, 2025 See https://www.pacermonitor.com/view/LXSDSBY/1Monark_LLC__mabke-25-40042__0001.0.pdf?mcid=tGE4TAMA represented by: Matthew T. Desrochers, Esq. LAW OFFICE OF MATTHEW T. DESROCHERS Email: matthewtdesrochers@gmail.com In re 11702 Ave LLC Bankr. E.D.N.Y. Case No. 25-40188 Chapter 11 Petition filed January 14, 2025 See https://www.pacermonitor.com/view/SM55QFA/11702_Ave_LLC__nyebke-25-40188__0001.0.pdf?mcid=tGE4TAMA Filed Pro Se In re 564 Ashford Street Inc. Bankr. E.D.N.Y. Case No. 25-40185 Chapter 11 Petition filed January 14, 2025 See https://www.pacermonitor.com/view/N3BRCRQ/564_Ashford_Street_Inc__nyebke-25-40185__0001.0.pdf?mcid=tGE4TAMA Filed Pro Se In re MPJimbos LLC Bankr. E.D.N.Y. Case No. 25-40198 Chapter 11 Petition filed January 14, 2025 See https://www.pacermonitor.com/view/3OGGERI/MPJIMBOS_LLC__nyebke-25-40198__0001.0.pdf?mcid=tGE4TAMA represented by: Lawrence Morrison, Esq. MORRISON TENENBAUM PLLC Email: lmorrison@m-t-law.com In re 12 Ross LLC Bankr. S.D.N.Y. Case No. 25-22027 Chapter 11 Petition filed January 14, 2025 See https://www.pacermonitor.com/view/5PAXV4Q/12_Ross_LLC__nysbke-25-22027__0001.0.pdf?mcid=tGE4TAMA Filed Pro Se In re Ancarlo Brothers Inc. Bankr. D.P.R. Case No. 25-00089 Chapter 11 Petition filed January 14, 2025 See https://www.pacermonitor.com/view/2RKDBMQ/ANCARLO_BROTHERS_INC__prbke-25-00089__0001.0.pdf?mcid=tGE4TAMA represented by: Hector Eduardo Pedrosa Luna, Esq. THE LAW OFFICES OF HECTOR EDUARDO PEDROSA LUNA Email: hectorpedrosa@gmail.com In re Sky Rock Trucking LLC Bankr. E.D. Tex. Case No. 25-40105 Chapter 11 Petition filed January 14, 2025 See https://www.pacermonitor.com/view/AZE7B3Y/Sky_Rock_Trucking_LLC__txebke-25-40105__0001.0.pdf?mcid=tGE4TAMA represented by: C. Daniel Herrin, Esq. HERRIN LAW, PLLC Email: ecf@herrinlaw.com In re Say Yes of Birmingham LLC Bankr. N.D. Ala. Case No. 25-00115 Chapter 11 Petition filed January 15, 2025 See https://www.pacermonitor.com/view/JAPFV7I/Say_Yes_of_Birmingham_LLC__alnbke-25-00115__0001.0.pdf?mcid=tGE4TAMA Filed Pro Se In re Megna Hospitality Investments, Inc. Bankr. C.D. Cal. Case No. 25-10069 Chapter 11 Petition filed January 15, 2025 See https://www.pacermonitor.com/view/7FSMDMQ/Megna_Hospitality_InvestmentsInc__cacbke-25-10069__0001.0.pdf?mcid=tGE4TAMA represented by: Michael Kwasigroch, Esq. LAW OFFICES OF MICHAEL D. KWASIGROCH Email: attorneyforlife@aol.com In re Parlor Restaurant and Lounge, LLC Bankr. D.D.C. Case No. 25-00021 Chapter 11 Petition filed January 15, 2025 See https://www.pacermonitor.com/view/XL5FJ4Y/Parlor_Restaurant_and_Lounge_LLC__dcbke-25-00021__0001.0.pdf?mcid=tGE4TAMA represented by: Moqadas Islam, Esq. MI LAW FIRM Email: islam.moqadas@gmail.com In re Michele Duke-Reuter and Thomas J Reuter Bankr. M.D. Fla. Case No. 25-00122 Chapter 11 Petition filed January 15, 2025 represented by: Thomas Adam, Esq. In re Commodities International Real Estate, LLC Bankr. D. Md. Case No. 25-10378 Chapter 11 Petition filed January 15, 2025 See https://www.pacermonitor.com/view/LZCZONY/Commodities_International_Real__mdbke-25-10378__0001.0.pdf?mcid=tGE4TAMA represented by: Charles E Walton, Esq. WALTON LAW GROUP Email: cwalton@cwaltonlaw.com In re TV Transport, Inc. Bankr. D. Nev. Case No. 25-10207 Chapter 11 Petition filed January 15, 2025 See https://www.pacermonitor.com/view/S5R3FRA/TV_Transport_Inc__nvbke-25-10207__0001.0.pdf?mcid=tGE4TAMA represented by: Charles ("CJ") E. Barnabi Jr., Esq. THE BARNABI LAW FIRM, PLLC Email: cj@barnabilaw.com In re 362 Deauville Blvd LLC Bankr. E.D.N.Y. Case No. 25-70182 Chapter 11 Petition filed January 15, 2025 See https://www.pacermonitor.com/view/CSRC3UA/362_Deauville_Blvd_LLC__nyebke-25-70182__0001.0.pdf?mcid=tGE4TAMA represented by: Julio E. Portilla, Esq. JULIO E. PORTILLA Email: jp@julioportillalaw.com In re RCL 106 Bankr. E.D.N.Y. Case No. 25-40217 Chapter 11 Petition filed January 15, 2025 See https://www.pacermonitor.com/view/Y2U6NTQ/RCL_106__nyebke-25-40217__0001.0.pdf?mcid=tGE4TAMA Filed Pro Se In re Tree Town LLC Bankr. W.D.N.Y. Case No. 25-20040 Chapter 11 Petition filed January 15, 2025 See https://www.pacermonitor.com/view/HWYG7QA/Tree_Town_LLC__nywbke-25-20040__0001.0.pdf?mcid=tGE4TAMA represented by: Mike Krueger, Esq. MCCONVILLE CONSIDINE COOMAN AND MORIN PC Email: mkrueger@mccmlaw.com In re Chestnut Med LP Bankr. E.D. Pa. Case No. 25-10176 Chapter 11 Petition filed January 15, 2025 See https://www.pacermonitor.com/view/JKLNMUY/Chestnut_Med_LP__paebke-25-10176__0001.0.pdf?mcid=tGE4TAMA represented by: John Everett Cook, Esq. THE LAW OFFICES OF EVERETT COOK PC Email: bankruptcy@everettcooklaw.com In re James Robert Barchiesi Bankr. M.D. Pa. Case No. 25-00094 Chapter 11 Petition filed January 15, 2025 represented by: Robert Barchiesi, Esq. In re Wrestling Collector Shop, LLC Bankr. S.D. Tex. Case No. 25-30276 Chapter 11 Petition filed January 15, 2025 See https://www.pacermonitor.com/view/ARA7KKI/Wrestling_Collector_Shop_LLC__txsbke-25-30276__0001.0.pdf?mcid=tGE4TAMA represented by: Reese Baker, Esq. BAKER & ASSOCIATES Email: courtdocs@bakerassociates.net In re Tandem Catering & Events, Inc. Bankr. W.D. Wash. Case No. 25-10117 Chapter 11 Petition filed January 15, 2025 See https://www.pacermonitor.com/view/HUY3TEI/Tandem_Catering__Events_Inc__wawbke-25-10117__0001.0.pdf?mcid=tGE4TAMA represented by: Jennifer L. Neeleman, Esq. NEELEMAN LAW GROUP, P.C. Email: courtmail@expresslaw.com In re Samuel Dean Johnson and Lois M. Johnson Bankr. S.D. Miss. Case No. 25-00133 Chapter 11 Petition filed January 16, 2025 represented by: Craig Geno, Esq. In re Richard Kyle Mars Bankr. S.D. Miss. Case No. 25-00136 Chapter 11 Petition filed January 16, 2025 In re 10733 Van Wyck EXPY LLC Bankr. E.D.N.Y. Case No. 25-40248 Chapter 11 Petition filed January 16, 2025 See https://www.pacermonitor.com/view/MNZ7HUY/10733_Van_Wyck_EXPY_LLC__nyebke-25-40248__0001.0.pdf?mcid=tGE4TAMA Filed Pro Se In re Joseph Gantz Bankr. S.D.N.Y. Case No. 25-22038 Chapter 11 Petition filed January 16, 2025 represented by: H. Bronson, Esq. In re Lisbon Concrete Corporation Bankr. E.D.N.C. Case No. 25-00173 Chapter 11 Petition filed January 16, 2025 See https://www.pacermonitor.com/view/TWYKPEI/Lisbon_Concrete_Corporation__ncebke-25-00173__0001.0.pdf?mcid=tGE4TAMA represented by: Danny Bradford, Esq. PAUL D. BRADFORD, PLLC Email: dbradford@bradford-law.com In re Filterx LLC Bankr. M.D. Tenn. Case No. 25-00186 Chapter 11 Petition filed January 16, 2025 See https://www.pacermonitor.com/view/UXZMZCY/Filterx_LLC__tnmbke-25-00186__0001.0.pdf?mcid=tGE4TAMA represented by: Henry E. ("Ned") Hildebrand, IV, Esq. DUNHAM HILDEBRAND PAYNE WALDRON, PLLC Email: ned@dhnashville.com In re Mark Anthony Coomes Bankr. S.D. Va. Case No. 25-50003 Chapter 11 Petition filed January 16, 2025 represented by: Paul Roop, Esq. In re Samantha L. Shaver Bankr. W.D. Ark. Case No. 25-70071 Chapter 11 Petition filed January 17, 2025 represented by: Donald A. Brady Jr., Esq. In re Morans Auto Connection, LLC Bankr. M.D. Fla. Case No. 25-00151 Chapter 11 Petition filed January 17, 2025 See https://www.pacermonitor.com/view/2CM3HOA/Morans_Auto_Connection_LLC__flmbke-25-00151__0001.0.pdf?mcid=tGE4TAMA represented by: Thomas Adam, Esq. ADAM LAW GROUP, PA Email: tadam@adamlawgroup.com In re Logan Village Mall, LLC Bankr. S.D. Ind. Case No. 25-00252 Chapter 11 Petition filed January 17, 2025 See https://www.pacermonitor.com/view/WGZJSHI/Logan_Village_Mall_LLC__insbke-25-00252__0001.0.pdf?mcid=tGE4TAMA represented by: KC Cohen, Esq. KC COHEN, LAWYER, PC Email: kc@esoft-legal.com In re Kushal B. Shukla Bankr. D.N.J. Case No. 25-10533 Chapter 11 Petition filed January 17, 2025 represented by: Melinda Middlebrooks, Esq. In re Philip Andrew Keithahn Bankr. D. S.D. Case No. 25-40010 Chapter 11 Petition filed January 17, 2025 represented by: Timothy Rahn, Esq. In re We Be Book'N, LLC Bankr. W.D. Wash. Case No. 25-10139 Chapter 11 Petition filed January 17, 2025 See https://www.pacermonitor.com/view/UMCGGPY/We_Be_BookN_LLC__wawbke-25-10139__0001.0.pdf?mcid=tGE4TAMA represented by: Jennifer L. Neeleman, Esq. NEELEMAN LAW GROUP, P.C. E-mail: courtmail@expresslaw.com In re BRC Capital, LLC Bankr. N.D. Ill. Case No. 25-00789 Chapter 11 Petition filed January 20, 2025 See https://www.pacermonitor.com/view/JE7677Y/BRC_Capital_LLC__ilnbke-25-00789__0001.0.pdf?mcid=tGE4TAMA represented by: Konstantine Sparagis, Esq. LAW OFFICES OF KONSTANTINE SPARAGIS E-mail: gus@atbankruptcy.com In re Anthony M Sclafani Bankr. E.D. Pa. Case No. 25-10235 Chapter 11 Petition filed January 20, 2025 represented by: Anthony Richardson, Esq. In re Lukitas, Inc. Bankr. S.D. Tex. Case No. 25-30321 Chapter 11 Petition filed January 20, 2025 See https://www.pacermonitor.com/view/ISAYOCI/Lukitas_Inc__txsbke-25-30321__0001.0.pdf?mcid=tGE4TAMA represented by: Vicky M. Fealy, Esq. THE FEALY LAW FIRM, PC E-mail: vfealy@fealylawfirm.com In re Casa Garcia's Co. Bankr. S.D. W.Va. Case No. 25-20007 Chapter 11 Petition filed January 20, 2025 See https://www.pacermonitor.com/view/ORTT6JQ/Casa_Garcias_Co__wvsbke-25-20007__0001.0.pdf?mcid=tGE4TAMA represented by: Andrew S. Nason, Esq. PEPPER AND NASON E-mail: ryand@peppernason.com ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. 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