/raid1/www/Hosts/bankrupt/TCR_Public/250124.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Friday, January 24, 2025, Vol. 29, No. 23
Headlines
1060 NEPPERHAN AVE: Case Summary & One Unsecured Creditor
11AM INDUSTRIES: Gets Final OK to Use Cash Collateral
139-141 FRANKLIN: Seeks Chapter 11 Bankruptcy Protection in N.Y.
4221-ASSOCIATES AZ: U.S. Trustee Appoints Creditors' Committee
471 AMSTERDAM: Seeks Chapter 11 Bankruptcy Protection in New York
491 BERGEN: Seeks Bankruptcy Protection in New York
A.B.O.D.E. TREATMENT: Begins Subchapter V Bankruptcy Process
ACI WORLDWIDE: S&P Raises ICR to 'BB+' on Sustained Lower Leverage
ADVENTURE COAST: Case Summary & 20 Largest Unsecured Creditors
ADVENTURE COAST: Commences Subchapter V Bankruptcy Process
ALGORHYTHM HOLDINGS: Board to Effect 1-for-200 Stock Reverse Split
ALLIANCE MESA: Fine-Tunes Plan Documents
ALLIED CORP: Reports $780K Net Loss for Quarter Ended Nov. 30
AMERICAN MARICULTURE: Gets Interim OK to Use Cash Collateral
AMERICANN INC: Posts $1.25 Million Net Loss in FY Ended Sept. 30
AMERICANN INC: Reports Net Loss of $1.25M for FY Ended September 30
ARRAY MIDCO: S&P Withdraws 'CCC' Issuer Credit Rating
ATLANTIC HOME: Unsecured Creditors to Split $12K over 3 Years
AURA SYSTEMS: Delays Q3 2024 10-Q Filing Over Unforeseen Challenges
AUTO GLASS: Gets Interim OK to Use Cash Collateral
B.G.P. INC: Case Summary & 20 Largest Unsecured Creditors
BAUDAX BIO: Plan Exclusivity Period Extended to February 16
BAUSCH HEALTH: Brings in Evercore, Proskauer to Advisory Team
BELLY RUBS: Seeks Chapter 11 Bankruptcy Protection in Virginia
BGP WAREHOUSE: Case Summary & Four Unsecured Creditors
BIG LOTS: Plan Exclusivity Period Extended to April 7
BIOMERICA INC: Reduces Net Loss to $950K in Second Quarter
BIOSIG TECHNOLOGIES: Interim CFO Owns 25,000 Common Shares
BIOTACTICS INC: Court OKs Deal on Cash Collateral Access
BLACKFORD ATM: Faces Involuntary Chapter 7 Bankruptcy
BLUM HOLDINGS: Enters LOI to Acquire Cannabis Dispensary for $2MM
BLUM HOLDINGS: Issues $100,000 Promissory Notes to Four Investors
BRICKTON LP: Plan Exclusivity Period Extended to April 18
BROUDY GROUP: Court Extends Use of Cash Collateral Until Feb. 22
CAPELLA HOSPITALITY: Gets OK to Use Cash Collateral Until Feb. 26
CELESTIAL PRODUCTS: Gets OK to Use Cash Collateral Until Feb. 18
CELSIUS NETWORK: Bankruptcy Judge Approves Lawsuit Against Founder
CHIC COUTURE: Unsecureds Will Get 76.6% of Claims over 60 Months
COLD SPRING: Seeks Immediate Appointment of Creditors' Committee
COMMERCIAL FURNITURE: Unsecureds Will Get 27% of Clains in Plan
COMMERCIAL VEHICLE: S&P Lowers ICR to 'B-', Outlook Negative
CONCORDIA ANESTHESIOLOGY: Gets Final OK to Use Cash Collateral
CONTAINER STORE: SEC, DOJ Challenge Proposed Releases
CYTODYN INC: Reports $4.77 Million Net Loss for Second Quarter
CYTTA CORP: Posts Net Loss of $4.26 Million in FY Ended Sept. 30
DR. POWER: Unsecureds to Get Share of Income for 5 Years
DT&T LOGISTICS: Court Extends Use of Cash Collateral Until Feb. 14
DTH 215 VENTURE: Updates Several Secured Claims Pay; Amends Plan
EMCORE CORP: Narrows Net Loss to $31.24M for FY Ended Sept. 30
EMERGENCY HOSPITAL: Court Extends Use of Cash Collateral to Feb. 3
EMINIFX INC: Receiver Returns $100MM to Ponzi Scheme Victims
ENDI PLAZA: Lender Seeks to Prohibit Cash Collateral Access
ENTECCO FILTER: Creditors to Get Proceeds From Liquidation
ENVIROSCENT INC: U.S. Trustee Unable to Appoint Committee
EXPLORE KNOWLEDGE: S&P Lowers Revenue Bonds LT Rating to 'BB'
FILTERX LLC: Seeks to Use Cash Collateral Until Feb. 21
FLYWHEEL ADVANCED: Reports Net Loss of $710K for FY 2024
FOCUS FINANCIAL: S&P Downgrades ICR to 'B', Outlook Stable
FREE SPEECH: Jones Disputes Sandy Hook Families' Bankruptcy Deal
FREE SPEECH: Jones Urges Connecticut Justices to Review Hook Case
FUEL FITNESS: Gets Interim OK to Use Cash Collateral Until Feb. 21
FUEL HOMESTEAD: Gets OK to Use Cash Collateral Until Feb. 21
FUEL REYNOLDA: Gets Interim OK to Use Cash Collateral Until Feb. 21
FUNDIMENSION LLC: Gets OK to Use Cash Collateral Until March 5
GAMECHEST LLC: Case Summary & Six Unsecured Creditors
GENERATIONS ON 1ST: Gets OK to Use Cash Collateral Until Jan. 27
GREEN ENERGY: To Sell 642-Acre Land to Kirk Surry and Kirk Trust
H & H RENTAL: Files Emergency Bid to Use Cash Collateral
HEALTHLYNKED CORP: Names Jeremy Daniel as Chief Financial Officer
HIGHLAND PARK: Gets Interim OK to Use Cash Collateral Until Jan. 31
HIGHLANDS GROUP: Unsecureds Will Get 4% of Claims in Plan
HILLCREST CENTER: Gets Interim OK to Use Cash Collateral
HILMORE LLC: Voluntary Chapter 11 Case Summary
HUBBARD RADIO: Allspring Global Marks $119,329 Loan at 24% Off
INTRUSION INC: Raises $14.5M, Eliminates $10.1M in Preferred Stock
INVITAE CORP: Nixed Asset Buyer Urges Ch. 11 Court to Halt Suit
KCT INC: Seeks Chapter 11 Bankruptcy Protection in New York
KCT INC: Voluntary Chapter 11 Case Summary
KKC RESTAURANTS: Court Extends Use of Cash Collateral Until Feb. 12
LUMIO HOLDINGS: Plan Exclusivity Period Extended to April 2
MARQUIE GROUP: Delays Filing of Form 10-Q for Period Ended Nov. 30
MAWSON INFRASTRUCTURE: Appoints William Regan as CFO
MCCLATCHIE PROPERTY: Starts Subchapter V Bankruptcy Process
MOORE MEDICAL: Gets Interim OK to Use Cash Collateral Until Feb. 6
MR. TORTILLA: Unsecureds Will Get 100% of Claims over 180 Months
NEOLPHARMA INC: Case Summary & 20 Largest Unsecured Creditors
NETCAPITAL INC: Raises $487,000 From Warrant Exercise
NEXTTRIP INC: Widens Net Loss to $2.01 Million in Third Quarter
NMG HOLDING: S&P Withdraws 'B-' Issuer Credit Rating
NORRIS TRAINING: Gets Two-Week Extension to Use Cash Collateral
NORTH CAROLINA PROPERTIES: Gets Interim OK to Use Cash Collateral
NORTHVOLT AB: Still Seeks Investor Commitments Amid Cash Shortage
NOSTRUM LABORATORIES: Creditors to Help Market Co. After Turnover
OPTINOSE INC: Preliminary Q4 FY24 XHANCE Revenue Hits $22.4-Mil.
ORB TERTIUS: Case Summary & Three Unsecured Creditors
ORB TERTIUS: Seeks Chapter 11 Bankruptcy Protection in California
OSTEEN'S LOAD: Gets Interim OK to Use Cash Collateral Until Feb. 19
PARKER ESTATES: Court OKs Continued Use of Cash Collateral
PAVMED INC: Stockholders OKs Debt Exchange at 2025 Special Meeting
PETER F. REILLY: Seeks Chapter 11 Bankruptcy Protection
PROSPECT MEDICAL: Wants Hospital Sale Suit Transferred to Texas
REITER BROTHERS: Files Emergency Bid to Use Cash Collateral
REVA HOSPITALITY: Gets Final OK to Use Cash Collateral
ROCKY MOUNTAIN: Posts $847,000 Net Loss in Fiscal Q3
ROTM LOFTS: Court OKs Continued Use of Cash Collateral
SCHULTE INC: Seeks Continued Cash Collateral Access
SCORPIUS HOLDINGS: Cancels Planned Reverse Stock Split
SEATON INVESTMENTS: Claims to be Paid from Rental Income
SEELOS THERAPEUTICS: U.S. Trustee Appoints Creditors' Committee
SENIOR CHOICE: Asset Sale Proceeds to Fund Plan Payments
SILVER AIRWAYS: Court Extends Use of Cash Collateral Until Jan. 30
SOBR SAFE: Thomas Corley Holds 19.6% Equity Stake
SOFIA BROS: Voluntary Chapter 11 Case Summary
STAR ALLIANCE: Incurs $2.35 Million Net Loss in FY Ended June 30
TIMELINE CONSTRUCTION: Files Emergency Bid to Use Cash Collateral
TREVENA INC: Discontinues OLINVYK Sales for Financial Reasons
TTW TRANSPORT: Updates Unsecured Claims Details; Amends Plan
VERA RESTAURANT: Seeks Chapter 11 Bankruptcy Protection in Florida
WATER GREMLIN: Seeks to Extend Plan Exclusivity to April 25
WILSON CREEK: WC Hydraulics Out as Committee Member
WIMPY'S CALIFORNIA: Seeks to Use Cash Collateral
[*] US Healthcare Bankruptcies Dipped in 2024, Gibbins Reports
[] BOOK REVIEW: The Heroic Enterprise
*********
1060 NEPPERHAN AVE: Case Summary & One Unsecured Creditor
---------------------------------------------------------
Debtor: 1060 Nepperhan Ave LLC
1060 Nepperhan Avenue
Yonkers NY 10703
Business Description: 1060 Nepperhan Ave is a single asset real
estate debtor, as defined in 11 U.S.C.
Section 101(51B).
Chapter 11 Petition Date: January 23, 2025
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 25-22056
Judge: Hon. Sean H Lane
Debtor's Counsel: Mark S. Lichtenstein, Esq.
AKERMAN LLP
1251 Avenue of the Americas, 37th Floor
New York, NY 10020
Tel: (212) 880-3800
Email: mark.lichtenstein@akerman.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Kirk Lewin as managing member.
The Debtor has listed JP Morgan Chase, Attn Cardmember Services,
201 N. Walnut Street, DE1-0153, Wilmington, DE 19801, as its sole
unsecured creditor holding a claim of $24,197.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/CZPHY3I/1060_Nepperhan_Ave_LLC__nysbke-25-22056__0001.0.pdf?mcid=tGE4TAMA
11AM INDUSTRIES: Gets Final OK to Use Cash Collateral
-----------------------------------------------------
11AM Industries, LLC received final approval from the U.S.
Bankruptcy Court for the Northern District of Ohio to use its
secured creditors' cash collateral.
The final order authorized the company to use cash collateral to
pay the expenses set forth in its budget, which shows total
projected expenses of $53,811 for January, $43,867 for February,
and $42,928 for March.
The cash collateral consists of substantially all monies generated
in connection
with the operation of 11AM's businesses except proceeds from the
sales of unencumbered assets.
Secured creditors including the U.S. Small Business Administration,
Fundation Group LLC, Liberis US Inc., Small Business Financial
Solutions, and WebBank were granted replacement liens to the same
extent and with the same validity and priority as their
pre-bankruptcy liens.
About 11AM Industries
11AM Industries LLC, operating under the trade names Zoogari Pets
and Shop11AM, is a pet supply retailer based in Norton, Ohio. The
company operates from its principal location at 4409
Cleveland-Massillon Road.
11AM Industries sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ohio Case No. 24-52038) on December 29,
2024, with $50,000 to $100,000 in assets and $500,000 to $1 million
in liabilities. Frederic Schwieg, Esq., at Schwieg Law, serves as
Subchapter V trustee.
Judge Alan M. Koschik handles the case.
The Debtor is represented by:
Steven Heimberger, Esq.
Roderick Linton Belfance, LLP
50 South Main Street, 10th Floor
Akron, OH 44308
Phone: 330-434-3000
Fax: 330-434-9220
139-141 FRANKLIN: Seeks Chapter 11 Bankruptcy Protection in N.Y.
----------------------------------------------------------------
On January 22, 2025, 139-141 Franklin St Realty Corp. filed
Chapter 11 protection in the U.S. Bankruptcy Court for
the Southern District of New York.
According to court filing, the Debtor reports between $10 million
and $50 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About 139-141 Franklin St Realty Corp.
139-141 Franklin St Realty Corp. is a single asset real estate
debtor, as defined in 11 U.S.C. Section 101(51B).
139-141 Franklin St Realty Corp. sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No.: 25-10094) on
January 22, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $10 million and $50 million.
The Debtor is represented by:
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
4221-ASSOCIATES AZ: U.S. Trustee Appoints Creditors' Committee
--------------------------------------------------------------
The U.S. Trustee for Region 14 appointed an official committee to
represent unsecured creditors in the Chapter 11 case of
4221-Associates AZ, LLC.
The committee members are:
1. Curt R. Brennen
134 S. Paul Road
St. Marys, PA 15857
814-594-8671
brennencurt@gmail.com
2. Pamela O’Leary
613 E. Joseph Road
Saint Marys, PA 15857
814-594-9583
roboleary3@gmail.com
3. Robert Wortman
251 Benzinger Rd.
St. Marys, PA 15857
814-594-5003
robmw1@hotmail.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About 4221-Associates AZ
4221-Associates, AZ, LLC, sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 24-03211) on April
25, 2024. In the petition signed by David E. Slattery, Sr.,
manager, the Debtor disclosed up to $50 million in both assets and
liabilities.
Judge Brenda K. Martin presides over the case.
Michael W. Carmel, Ltd., is the Debtor's bankruptcy counsel.
471 AMSTERDAM: Seeks Chapter 11 Bankruptcy Protection in New York
-----------------------------------------------------------------
On January 22, 2025, 471 Amsterdam Ave Realty Corp. filed Chapter
11 protection in the U.S. Bankruptcy Court for the Southern
District of New York.
According to court filing, the Debtor reports between $10 million
and $50 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About 471 Amsterdam Ave Realty Corp.
471 Amsterdam Ave Realty Corp. is a single asset real estate, as
defined in 11 U.S.C. Section 101(51B).
471 Amsterdam Ave Realty Corp. sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No.: 25-10092) on
January 22, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $10 million and $50 million each.
The Debtor is represented by:
Tracy L. Klestadt, Esq.
Klesdtadt Winters Jureller Southard & Stevens, LLP
200 West 41st Street, 17th Floor
New York, NY 10036
Tel: (212) 972-3000
Email: tklestadt@klestadt.com
491 BERGEN: Seeks Bankruptcy Protection in New York
---------------------------------------------------
On January 22, 2025, 491 Bergen St. Corporation filed Chapter 11
protection in the U.S. Bankruptcy Court for the Southern District
of New York.
According to court filing, the Debtor reports between $10 million
and $50 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About 491 Bergen St. Corporation
491 Bergen St. Corporation is a single asset real estate debtor, as
defined in 11 U.S.C. Section 101(51B).
491 Bergen St. Corporation sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No.: 25-10091) on
January 22, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $10 million and $50 million each.
The Debtor is represented by:
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
A.B.O.D.E. TREATMENT: Begins Subchapter V Bankruptcy Process
------------------------------------------------------------
On January 23, 2025, A.B.O.D.E. Treatment Inc.filed Chapter 11
protection in the U.S. Bankruptcy Court for the Northern District
of Texas.
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 A.B.O.D.E. Treatment Inc.
A.B.O.D.E. Treatment Inc. is operating as Adult Basic Opportunity
Developmental Environment, is a Fort Worth, Texas-based healthcare
services provider. The company operates from facilities at 1301
Bowen Road and 2018 Evans Avenue in Fort Worth.
A.B.O.D.E. Treatment Inc. sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No.
25-40241) on January 23, 2025. In its petition, the Debtor reports
estimated assets up to $50,000 and estimated liabilities between
$500,000 and $1 million.
Honorable Bankruptcy Judge Edward L. Morris handles the case.
The Debtor is represented by Kevin S. Wiley, Sr, Esq., at The Wiley
Law Group, PLLC, in Dallas, Texas.
ACI WORLDWIDE: S&P Raises ICR to 'BB+' on Sustained Lower Leverage
------------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on payment
systems company ACI Worldwide (ACIW) to 'BB+' from 'BB'. At the
same time, S&P raised its issue-level rating on the company's
senior unsecured notes to 'BB' from 'BB-'. S&P's '5' recovery
rating on the notes remains unchanged.
The stable outlook reflects S&P's expectation that ACIW will
maintain S&P Global Ratings-adjusted leverage in the low-2x area
while demonstrating healthy topline growth and margin expansion.
S&P said, "ACIW's new long-term leverage target supports our
expectation for leverage to be sustained around 2x. The upgrade
reflects our revised view that leverage will be sustained in the
low-2x area. The company has maintained leverage below our 3x
upside threshold since fiscal 2021, with recent earnings growth
driving rapid deleveraging. As of the third quarter of 2024, ACIW
reported leverage of 1.6x, partially due to accelerated new
contract signings. This elevated earnings effect likely normalized
in the fourth quarter, while some incremental share repurchases
contributed to modestly higher adjusted debt. We anticipate fiscal
2024 leverage of about 2.0x and expect ACIW will maintain leverage
around this level over the next several years. Management recently
lowered its long-term leverage target to 2.0x from 2.5x, supporting
our updated expectation that leverage is unlikely to increase
significantly from this level. While we don't rule out the
possibility that future merger and acquisition (M&A) activity could
lead to temporarily elevated leverage, we expect such activity to
be infrequent based on the company's focus on organic growth; also,
we believe ACIW would seek rapid deleveraging following a sizable
acquisition. The company's earnings and cash generation support our
expectation for leverage to be sustained in the 2x area.
"ACIW's scale (measured by revenue and EBITDA) is small relative to
most other 'BB+' rated issuers. However, we believe the combination
of management's relatively conservative 2x leverage target and the
expansive scope of its products offset some of the credit risks
that are typical of issuers with smaller scale. ACIW's products
support trillions of dollars in daily transaction activity for its
clients, which include the largest global financial institutions,
as well as global merchants and billers. The company also supports
26 instant payment schemes and ten central infrastructures.
"We expect good business momentum will persist over the next
several years, and expansion to serve mid-tier financial
institutions could provide further upside. ACIW reported healthy
growth in all three segments (Banks, Merchants, Billers) during the
first nine months of 2024. In its strongest performing segment,
Banks, the company reported 30% growth relative to the first nine
months of 2023, as the result of its issuing and acquiring, and
real-time payments businesses. Despite revenue contraction expected
in the fourth quarter, we anticipate full-year 2024 revenue growth
of 9.6%, a meaningful step up from 2.2% in 2023 and 3.7% in 2022.
We attribute the recent accelerating growth to ACIW's focus on
initiatives aligned with customer needs, including real-time
payments. As banks ramp up investments to modernize their
infrastructure and accommodate real-time payments, we think ACI
will continue to generate top-line growth at least in the 5%-7%
range. Competition will remain a key risk, especially with its
real-time payments offering where large, well-capitalized players
like Fiserv Inc., Fidelity National Information Services Inc.
(FIS), and others pursue market dominance. Still, ACIW's
long-tenured client relationships with the largest global banks
position it favorably to grow its share as the industry matures.
"ACIW's Payments Hub platform aims to broaden the company's reach
to mid-tier financial institutions ($50 billion-$250 billion in
assets), with pilot programs expect to begin this year. The
company's primary bank clients are mega-tier institutions (over
$250 billion in assets), who typically have more robust
infrastructure and resources for implementing ACIW's solutions. We
expect the payments hub will ease modernization efforts for its
existing clients and make ACIW's products more accessible to
mid-tier banks by lowering risks and costs of implementation. We
think the company will roll out the hub gradually over the next few
years to minimize disruption risk as it expands to a wider set of
clients and broadens its functionalities. Our forecast for 2025 and
2026 do not incorporate meaningful revenue contributions from the
Payments Hub platform and new mid-tier banking clients.
"We anticipate ACIW will expand margins and strengthen cash flow
over the longer term despite substantial ongoing business
investments. We expect ACIW will maintain ongoing research and
development expenses and growth-related capital expenditures to
support product innovation. Investments will likely be weighted
toward its real-time payments solution and the Payments Hub, though
we also expect ongoing investments to support enhancements of other
products and services, such as its AI-driven fraud prevention
capabilities within its Merchants segment or ACI Speedpay within
its Billers segment. We think ACIW is investing appropriately to
maintain market relevance and gradually improve its competitive
standing, while also expanding its profit margin. We forecast S&P
Global Ratings-adjusted EBITDA margin will expand and approach 30%
by 2026 from 26.2% in 2023, enabled by expanding scale, operational
efficiencies, and pricing. Meanwhile, we think ACIW's cash flow
generation will enable increasing share repurchases after
appropriately reinvesting in the business while maintaining
leverage at management's target levels. We anticipate the company
will report over $200 million of free operating cash flow (FOCF) in
2024 and expect this to grow to more than $250 million by 2026.
"The stable outlook reflects our expectation that ACIW's stable
customer base and their efforts to modernize their payments
infrastructure will support mid- to high- single-digit percent
revenue growth. This, combined with modest EBITDA margin expansion
will likely lead to healthy cash generation that supports the
company's capital allocation priorities, including business
reinvestment and share repurchases."
S&P could lower its rating on ACIW if:
-- S&P expects S&P Global Ratings-adjusted leverage will be
sustained above 2.5x, which could be due to a more aggressive
financial policy or a large leveraging acquisition without
anticipated rapid deleveraging.
-- Customer attrition rises, perhaps because of competitive
pressures, lead to slowing organic revenue growth such that S&P
believes ACIW is losing market share; or
-- Operational missteps result in significant EBITDA margin
compression.
ACIW's relatively modest scale and cash flow generation currently
limit the potential for a higher rating. Still, S&P could raise its
rating on the company if:
-- It significantly grows its scale, perhaps through acquisitions
and with deep expansion to mid-tier banking clients through its
Payments Hub platform while also increasing the breadth of its
offerings;
-- Strong business execution consistently expands profit margins;
-- It demonstrates resilient performance through economic cycles;
and
-- It commits and adheres to financial policies consistent with
maintaining leverage comfortably below 2x.
ADVENTURE COAST: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Adventure Coast, LLC
d/b/a Adventure Coast Manufacturing
d/b/a Adventure Coast Rentals
4163 Emory Street NW
Covington GA 30014
Business Description: Adventure Coast, LLC is an equipment rental
service provider specializing in trailers,
restrooms, showers, generators, and other
production essentials for the film,
broadcast, live events, private events, and
sports industries. With locations across
major cities like Atlanta, Nashville, and
Orlando, the Company provides nationwide
service for everything from large-scale
productions to intimate events. Its
extensive inventory includes talent
trailers, RVs, office trailers, shower
trailers and heavy equipment.
Chapter 11 Petition Date: January 22, 2025
Court: United States Bankruptcy Court
Northern District of Georgia
Case No.: 25-50682
Debtor's Counsel: Benjamin Keck, Esq.
KECK LEGAL, LLC
2801 Buford Highway NE Suite 115
Atlanta, GA 30329
Tel: 470-826-6020
Email: bkeck@kecklegal.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Marcus Cooley as CEO.
A full-text copy of the petition, which includes a list of the
Debtor's 20 largest unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/VFIIPUY/Adventure_Coast_LLC__ganbke-25-50682__0001.0.pdf?mcid=tGE4TAMA
ADVENTURE COAST: Commences Subchapter V Bankruptcy Process
----------------------------------------------------------
On January 22, 2025, Adventure Venture Coast LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the Northern District
of Georgia.
According to court filing, the Debtor reports between $1 million
and $10 million in debt owed to 50 and 99 creditors. The petition
states funds will be available to unsecured creditors.
About Adventure Venture Coast LLC
Adventure Venture Coast LLC operates as a specialized equipment
rental provider serving the entertainment industry from locations
in Atlanta and Nashville. The company provides trailers,
generators, restroom facilities, and production equipment for film
studios, live events, and festivals.
Adventure Venture Coast LLC sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No.
25-50682) on January 22, 2025. In its petition, the Debtor reports
estimated assets and liabilities between $1 million and $10 million
each.
The Debtor is represented by Benjamin R. Keck, Esq., at Keck Legal,
LLC, in Atlanta, Georgia.
ALGORHYTHM HOLDINGS: Board to Effect 1-for-200 Stock Reverse Split
------------------------------------------------------------------
Algorhythm Holdings, Inc., filed a Form 8-K with the Securities and
Exchange Commission, disclosing that on Jan. 14, 2025, the
Company's Board of Directors determined to effect a reverse stock
split of the Company's common stock at a 1-for-200 ratio and
approved the filing of a Certificate of Amendment to the
Certificate of Incorporation, as amended, of the Company, to effect
the Reverse Split and to increase the Company's authorized shares
of common stock from 100,000,000 to 800,000,000.
The Certificate of Amendment was filed with the Secretary of State
of Delaware on Jan. 14, 2025. The reverse stock split has not yet
taken effect in the public markets.
Algorhythm Holdings previously held its annual stockholder meeting
on Jan. 13, 2025, at which stockholders voted to authorize the
Company's Board of Directors to effect a reverse stock split of the
outstanding shares of common stock within one year of Jan. 13,
2025, at a specific ratio within a range of 1-for-10 to a maximum
of a 1-for-250, and to amend the Company's Certificate of
Incorporation, as amended, to increase the number of authorized
common stock from 100,000,000 to 800,000,000 shares.
About Algorhythm Holdings
Algorhythm Holdings, Inc., f/k/a The Singing Machine Company, Inc.
-- http://www.singingmachine.com/-- is a holding company for an AI
enabled software logistics business operated through its SemiCab
Holding subsidiary and a home karaoke consumer products company
that designs and distributes karaoke products globally to retailers
and ecommerce partners through its Singing Machine subsidiary. The
Company's operations include its wholly owned subsidiaries, SMC
Logistics, Inc., SMC-Music, Inc., SMC (HK) Limited, MICS
Hospitality Holdings, Inc., MICS Hospitality Management, LLC, MICS
Nomad, LLC, and SemiCab Holdings, LLC. Singing Machine is
primarily engaged in the development, marketing, and sale of
consumer karaoke audio equipment, accessories, and musical
recordings.
"As of September 30, 2024, the Company had cash on hand of
approximately $621,000 and deficit working capital of approximately
$2,082,000 which is not sufficient to fund the Company's planned
operations through one year after the date the consolidated
financial statements are issued. The Company has a recent history
of recurring operating losses and decreases in working capital.
These factors create substantial doubt about the Company's ability
to continue as a going concern for at least one year after the date
that the Company's audited consolidated financial statements are
issued," Algorhythm Holdings stated in its Quarterly Report on Form
10-Q for the period ended Sept. 30, 2024.
ALLIANCE MESA: Fine-Tunes Plan Documents
----------------------------------------
Alliance Mesa Cardio, LLC, submitted a Disclosure Statement
describing Third Amended Plan of Reorganization.
The Debtor will make payments due to the Class 1 Creditor under the
Plan from the Reserve Account until the Real Property is leased,
refinanced or sold. The post-Confirmation management of the Debtor
shall continue to be performed by Highpoint Property Management
LLC.
The Plan provides that all Allowed Secured and General Unsecured
Claims will be paid in full with interest, with the remaining
ongoing concern value available for distribution to Equity Interest
Holders. The Debtor believes that all creditors will be paid in
full under a hypothetical Chapter 7 liquidation but that the
ultimate distributions to Class 4 Equity Interests will be much
higher under the Plan than they would be in a hypothetical Chapter
7 liquidation.
Under this Plan the Reorganized Debtor will market the Property for
sale during the term of the Plan. The Debtor will also seek to
refinance the BOK Financial Loan, and will use the proceeds of such
sale or refinancing to pay all Allowed Claims, Allowed
Administrative Expenses, and Allowed Fee Claims in full in Cash.
Until the sale or refinancing occurs the Debtor will make the
payments, to be funded from the Reserve Account.
Like in the prior iteration of the Plan, Class 2 General Unsecured
Claimants shall be paid in full in Cash on the Effective Date,
including post-petition interest at the Federal Judgment Interest
Rate of 5.12% per annum.
Class 4 shall consist of Equity Interests in the Debtor. Class 4
Interests shall be retained by their owners but shall receive no
dividends or other distributions on these Interests until Classes 1
to 3 are indefeasibly paid in full pursuant to this Plan.
Furthermore, the filing of this Plan shall constitute the notice to
the Holders of Allowed Equity Interests under Section 8.2 of the
Debtor's Operating Agreement of the need for Additional Capital
Contributions in an amount to be determined by the Manager on or
before the Effective Date.
The Debtor currently has the Real Property listed for sale at
$5,000,000. Although to date the sale listing has not generated
sufficient interest, the Lease of the Real Property will enhance
the marketability of the Real Property. The Debtor will continue to
market the Property for sale during the term of the Plan.
The Debtor is currently seeking to refinance the BOK Financial
Loan. Now that the Debtor has a Lease of the Real Property, the
Debtor's ability to obtain refinancing of the BOK Financial Loan is
also enhanced. The Debtor will continue to seek to refinance the
BOK Financial Loan. The BOK Financial Loan will be refinanced by no
later than June 30, 2025.
To the extent necessary to implement this Plan and to pay all
expenses and distributions provided for hereunder, the manager of
the Debtor shall require Equity Interest Holders to make Additional
Capital Contributions under the terms provided therefore in Section
8.2 of the Debtor's Operating Agreement dated March 12, 2018, by no
later than March 1, 2025. The Additional Capital Contributions will
total approximately $670,000.
A full-text copy of the Disclosure Statement dated January 17, 2025
is available at https://urlcurt.com/u?l=6CCyjp from
PacerMonitor.com at no charge.
Counsel to the Debtor:
David A. Warfield, Esq.
Thompson Coburn LLP
One U.S. Bank Plaza, Suite 2700
St. Louis, MO 63101
Telephone: (314) 552-6079
Facsimile: (314) 552-7000
Email: dwarfield@thompsoncoburn.com
bhockett@thompsoncoburn.com
About Alliance Mesa Cardio
Alliance Mesa Cardio, LLC is a single asset real estate debtor (as
defined in 11 U.S.C. Section 101(51B)).
Alliance Mesa Cardio sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-08848) on June 15,
2024, with $1 million to $10 million in both assets and
liabilities. Ben Reinberg, sole member of Alliance Mesa Cardio
Manager, LLC, signed the petition.
Judge Janet S. Baer oversees the case.
The Debtor is represented by David A. Warfield, Esq., at Thompson
Coburn, LLP.
ALLIED CORP: Reports $780K Net Loss for Quarter Ended Nov. 30
-------------------------------------------------------------
Allied Corp. filed its Quarterly Report on Form 10-Q with the
Securities and Exchange Commission, reporting a net loss of
$780,290 on sales of $27,669 for the three months ended Nov. 30,
2024. This compares to a net loss of $836,673 on sales of $19,039
for the same period a year ago.
As of Nov. 30, 2024, the Company had $1.95 million in total assets,
$9.59 million in total liabilities, and a total stockholders'
deficit of $7.64 million.
"The Company incurred a net loss for the three months ended
November 30, 2024 of $780,290, has generated minimal revenue and as
at November 30, 2024 has a working capital deficit of $8,874,738.
These factors raise substantial doubt regarding the Company's
ability to continue as a going concern. The Company's ability to
continue as a going concern is dependent upon the Company's ability
to raise sufficient financing to develop a profitable business.
Management intends on financing its operations and future
development activities largely from the sale of equity securities
and debt financing with some additional funding from other
traditional financing sources, including related party loans until
such time that funds provided by future planned operations are
sufficient to fund working capital requirements," the Company
stated in the Quarterly Report.
The full text of the Form 10-K is available at no cost at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1575295/000147793225000245/alid_10q.htm
About Allied Corp
Allied Corp., a Nevada corporation, based in Kelowna, British
Columbia, Canada, is an international medical cannabis production
company with a mission to address today's medical issues by
researching, creating and producing targeted cannabinoid health
solutions. Allied uses what it considers to be an
evidence-informed scientific approach to make this mission
possible, through cutting-edge pharmaceutical research and
development, innovative plant-based production and unique
development of therapeutic products. Allied focuses on the
development of Colombian produced medicinal cannabis for patients
with conditions potentially suitable for treatment. Such conditions
include anxiety, insomnia, anorexia, chronic pain, epilepsy,
chemotherapy-induced nausea and vomiting, post-traumatic stress
disorder (PTSD), Parkinson's disease, Tourette's syndrome,
irritable bowel syndrome (IBS) and spasticity associated with
multiple sclerosis (MS) and spinal cord injury (SCI).
The Woodlands, TX-based M&K CPAS, PLLC, the Company's auditor since
2022, issued a "going concern" qualification in its report dated
Dec. 16, 2024, citing that the Company has suffered net losses from
operations, has a net capital deficiency, and has minimal revenue,
which raises substantial doubt about its ability to continue as a
going concern.
AMERICAN MARICULTURE: Gets Interim OK to Use Cash Collateral
------------------------------------------------------------
American Mariculture, Inc. and its affiliates received interim
approval from the U.S. Bankruptcy Court for the Middle District of
Florida, Fort Myers Division, to use the cash collateral of their
lenders.
The companies intend to use the cash collateral of Cargill
Financial Services International, Inc., the National Oceanic and
Atmospheric Administration, and the U.S. Small Business
Administration to pay operating expenses and the costs of
administering their Chapter 11 cases.
The companies' budget shows total projected expenses of $313,109
for the next four weeks.
As of Jan. 8, the companies had cash of approximately $47,000,
inventory and accounts
receivable, which are deemed uncollectable and having no value.
As adequate protection, the lenders will be granted a post-petition
lien on the cash collateral and all other post-petition assets to
the same extent and with the same validity and priority as their
pre-bankruptcy lien.
To the extent such protection is insufficient to protect the
lenders from any diminution in value of their pre-bankruptcy liens
on the cash collateral, the lenders will be granted an
administrative priority claim.
A final hearing is scheduled for Feb. 12.
Cargill can be reached through:
Brian Sikes '
President
Cargill Financial Services International, Inc.
Fax No. (952) 984-3905
-- and --
Will Brunnquell, Esq.
In-House Counsel
Cargill Financial Services International, Inc.
Will_brunnquell@cargill.com
About American Mariculture Inc.
American Mariculture Inc. is a food production company located at
9703 Stringfellow Road, Saint James City, Fla.
American Mariculture sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-00022) on January 8,
2025. In its petition, the Debtor reported assets between $1
million and $10 million and liabilities between $10 million and $50
million.
Judge Caryl E. Delano handles the case.
The Debtor is represented by:
Scott A. Stichter
Stichter, Riedel, Blain & Postler, P.A.
Tel: 813-229-0144
Email: sstichter.ecf@srbp.com
AMERICANN INC: Posts $1.25 Million Net Loss in FY Ended Sept. 30
----------------------------------------------------------------
Americann, Inc. filed with the Securities and Exchange Commission
its Annual Report on Form 10-K disclosing a net loss of $1,254,329
on $1,274,810 of rental income for the year ended Sept. 30, 2024,
compared to a net loss of $94,755 on $2,552,200 of rental income
for the year ended Sept. 30, 2023.
The Company had an accumulated deficit of $21,107,773 and
$19,853,444 at September 30, 2024 and 2023, respectively. These
matters, among others, raise substantial doubt about the Company's
ability to continue as a going concern.
While the Company is attempting to increase operations and generate
additional revenues, the Company's cash position may not be
significant enough to support the Company's daily operations.
Management intends to raise additional funds through the sale of
its securities.
Management believes that the actions presently being taken to
further implement its business plan and generate additional
revenues provide the opportunity for the Company to continue as a
going concern. While the Company believes in the viability of its
strategy to generate additional revenues and in its ability to
raise additional funds, there can be no assurances to that effect.
The ability of the Company to continue as a going concern is
dependent upon the Company's ability to further implement its
business plan and generate additional revenues.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/yb9fk75v
About AmeriCann
Headquartered in Denver, Colorado, Americann, Inc. (OTCQB:ACAN)
designs, develops, leases and operates state-of-the-art cannabis
cultivation, processing and manufacturing facilities. The
Company's business plan is based on the continued growth of the
regulated marijuana market in the United States.
As of Sept. 30, 2024, the Company had $14,063,167 in total assets,
$9,610,139 in total liabilities, and $4,453,028 in total
stockholders' equity.
AMERICANN INC: Reports Net Loss of $1.25M for FY Ended September 30
-------------------------------------------------------------------
AmeriCann, Inc., filed its Annual Report on Form 10-K with the
Securities and Exchange Commission, reporting a net loss of $1.25
million on rental income of $1.27 million for the year ended Sept.
30, 2024. This compares to a net loss of $94,755 on rental income
of $2.55 million for the year ended Sept. 30, 2023.
As of Sept. 30, 2024, the Company had $14.06 million in total
assets, $9.61 million in total liabilities, and $4.45 million in
total stockholders' equity.
The Company had an accumulated deficit of $21,107,773 and
$19,853,444 at September 30, 2024 and 2023, respectively, and had a
net loss of $1,254,329 and $94,755 for the years ended Sept. 30,
2024 and 2023, respectively. The Company indicated that these
matters, among others, raise substantial doubt about its ability to
continue as a going concern.
"While the Company is attempting to increase operations and
generate additional revenues, the Company's cash position may not
be significant enough to support the Company's daily operations.
Management intends to raise additional funds through the sale of
its securities," AmeriCann stated in the report.
"Management believes that the actions presently being taken to
further implement its business plan and generate additional
revenues provide the opportunity for the Company to continue as a
going concern. While the Company believes in the viability of its
strategy to generate additional revenues and in its ability to
raise additional funds, there can be no assurances to that effect.
The ability of the Company to continue as a going concern is
dependent upon the Company's ability to further implement its
business plan and generate additional revenues," it added.
The full text of the Form 10-K is available at no cost at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1508348/000143774925001189/acan20240930_10k.htm
About AmeriCann
Headquartered in Denver, CO, Americann, Inc. (OTCQB:ACAN) designs,
develops, leases and operates state-of-the-art cannabis
cultivation, processing and manufacturing facilities. The
Company's business plan is based on the continued growth of the
regulated marijuana market in the United States. AmeriCann
utilizes advanced greenhouse technology, which outperforms the
current industry standard of growing cannabis in warehouse
facilities under artificial lighting.
ARRAY MIDCO: S&P Withdraws 'CCC' Issuer Credit Rating
-----------------------------------------------------
S&P Global Ratings withdrew all its ratings on Array Midco Corp.,
including the 'CCC' issuer credit rating and the 'CCC' issue-level
rating and '3' recovery rating on its term loan, at the issuer’s
request. At the time of the withdrawal, its rating outlook on Array
was negative.
ATLANTIC HOME: Unsecured Creditors to Split $12K over 3 Years
-------------------------------------------------------------
Atlantic Home FL, LLC, filed with the U.S. Bankruptcy Court for the
Southern District of Florida a Plan of Reorganization dated January
16, 2025.
The Debtor is a Florida company organized by Articles of
Organization filed with the Florida Secretary of State on February
22, 2021.
The Debtor is general contractor that works on residential and
small commercial properties in the West Palm Beach area. The
Debtor's principal place of business is located at 9 South Plaza
Real, Boca Raton, FL, 33432, in a leased studio.
This Plan provides for: 2 classes of secured claims; and 1 class of
unsecured claims.
Class 3 consists of the Allowed Unsecured Claims against the
Debtor. This Class is Impaired.
* Consensual Plan Treatment: The liquidation value or amount
that unsecured creditors would receive in a hypothetical chapter 7
case is approximately $0.00. Accordingly, the Debtor proposes to
pay unsecured creditors a pro rata portion of $12,000.00. Payments
will be made in equal quarterly payments of $1,000.00. Payments
shall commence on the fifteenth day of the month, on the first
month that begins more than fourteen days after the Effective Date
and shall continue quarterly for eleven additional quarters.
Pursuant to Section 1191 of the Bankruptcy Code, the value to be
distributed to unsecured creditors is greater than the Debtor's
projected disposable income to be received in the 3-year period
beginning on the date that the first payment is due under the plan.
Holders of Class 3 claims shall be paid directly by the Debtor.
* Nonconsensual Plan Treatment: The liquidation value or
amount that unsecured creditors would receive in a hypothetical
chapter 7 case is approximately $0.00. Accordingly, Debtor proposes
to pay unsecured creditors a pro rata portion of its Disposable
Income. If the Debtor remains in possession, plan payments shall
include the Subchapter V Trustee's administrative fee which will be
billed hourly at the Subchapter V Trustee's then current allowable
blended rate. Plan Payments shall commence on the fifteenth day of
the month, on the first month that is ninety days after the
Effective Date and shall continue quarterly for eleven additional
quarters. The initial estimated quarterly payment shall be $0.00;
however, the Debtor may have disposable income during the life of
the Plan depending on future business.
The Plan contemplates that the Reorganized Debtor will continue to
operate the Debtor's business.
Except as explicitly set forth in this Plan, all cash in excess of
operating expenses generated from operation until the Effective
Date will be used for Plan Payments or Plan implementation, cash on
hand as of Confirmation shall be available for Administrative
Expenses.
A full-text copy of the Plan of Reorganization dated January 16,
2025 is available at https://urlcurt.com/u?l=Scg08Q from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Kevin Comer, Esq.
Comer Law Firm
2135 1/2 2nd Avenue North
St. Petersburg, FL 33713
Tel: (727) 729-2719
Email: kevin@comer.work
About Atlantic Home FL, LLC
Atlantic Home FL, LLC is a general contractor that works on
residential and small commercial properties in the West Palm Beach
area.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-20795) on Oct. 18,
2024, with up to $50,000 in assets and up to $1 million in
liabilities.
Judge Mindy A. Mora presides over the case.
Kevin Comer, Esq., is the Debtor's legal counsel.
AURA SYSTEMS: Delays Q3 2024 10-Q Filing Over Unforeseen Challenges
-------------------------------------------------------------------
Aura Systems, Inc., filed a 12b-25 with the Securities and Exchange
Commission, notifying it will be unable to file its Quarterly
Report on Form 10-Q for the three months ended Nov. 30, 2024 by the
prescribed due date because the Company requires additional time to
finalize its financial statements. The Company said 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
Headquartered in Lake Forest, CA, Aura Systems Inc. --
www.aurasystems.com -- has innovated and commercialized the
technology for Axial Flux Induction electric motors and generators.
Aura's axial flux induction motor technology ("AAFIM") provides an
industrial solution that does not use any permanent magnets, no
rare earth elements, is smaller and lighter, uses significant less
materials (just copper and steel), very high efficiency,
significantly less copper, highly reliably, very robust, and no
scheduled maintenance.
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.
AUTO GLASS: Gets Interim OK to Use Cash Collateral
--------------------------------------------------
Auto Glass 2020 LLC received interim approval from the U.S.
Bankruptcy Court for the District of Arizona to use cash collateral
and provide adequate protection.
The Debtor requires the use of cash collateral to pay operating
expenses such as payroll including compensation to personnel, rent,
utilities, vehicle payments, and materials, goods and supplies.
The Debtor believes and asserts that all of its cash collateral is
secured by a security interest in favor of the U.S. Small Business
Administration pursuant to a UCC-1 filed with the Arizona Secretary
of State on July 13, 2020, as Instrument No. 2020-005-2165-3. SBA
is owed approximately $461,868 which is significantly less than the
amount of Debtor's cash collateral existing as of the Petition
Date.
Other parties may claim an interest in the Debtor's cash collateral
including Black Olive Capital, Overnight Capital, and Emmy Capital
Group, LLC.
The Debtor believes that the SBA has a first lien position on the
collateral.
SBA will be provided with adequate protection by granting it a
replacement lien on all receivables and receipts generated
post-petition, to the same nature, extent and priority of its
pre-petition lien. In addition, SBA will receive a monthly payment
of $2,268.
About Auto Glass 2020 LLC
Auto Glass 2020 LLC is a windshield replacement and window tinting
company operating out of two locations located on the east and west
side of metropolitan Phoenix, Arizona.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 2:25-bk-00374-MCW) on
January 16, 2025. In the petition signed by Kristy LeSueur,
manager, the Debtor disclosed up to $1 million in assets and up to
$10 million in liabilities.
Judge Madeleine C. Wanslee oversees the case.
Alan A. Meda, Esq., at Burch & Cracchiolo, P.A., represents the
Debtor as legal counsel.
B.G.P. INC: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: B.G.P., Inc.
DBA Peltz Shoes
4525 140th Ave. N., Suite 900
Clearwater, FL 33762
Chapter 11 Petition Date: January 23, 2025
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 25-00412
Judge: Hon. Roberta A Colton
Debtor's Counsel: Scott A. Stichter, Esq.
STICHTER, RIEDEL, BLAIN & POSTLER, P.A.
110 E. Madison St.
Suite 200
Tampa, FL 33602
Tel: (813) 229-0144
E-mail: sstichter@srpb.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Gary S. Peltz as president.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/D3JSG7I/BGP_Inc__flmbke-25-00412__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Clarks $1,330,178
PO Box 415388
Boston, MA 02241-5388
2. Skechers USA $991,005
P.O. Box 74008181
Chicago, IL 60674-8181
3. New Balance $953,257
PO Box 415206
Boston, MA 02241-5206
4. Wolverine Worldwide Inc $691,992
25759 Network Place
Chicago, IL 60673-1257
5. Caleres, Inc. $462,585
PO Box 281777
Atlanta, GA 30384
6. Wells Fargo Bank $361,686
Attn: Marc Fisher
PO Box 712683
Philadelphia, PA 19171-2683
7. Taos Footwear $313,298
18701 S Figueroa St.
Gardena, CA 90248
8. Deckers Outdoor Corp $290,886
P.O. Box 8424
Pasadena, CA 91109-8424
9. Brooks $211,166
P.O Box 94353
Seattle, WA 98124-6653
10. Aldo US Inc. $185,522
1209 Orange Street
Wilmington, DE 19801
11. Cole Haan $152,457
PO Box 6007
Boston, MA 02212
12. Eastman Footwear $149,985
PO Box 1036
Charlotte, NC 28201-1036
13. On Inc $133,705
P.O. Box 734250
Chicago, IL 60673-4250
14. FitFlop $93,824
PO Box 347394
Pittsburgh, PA 15251
15. Phoenix Footwear $73,495
2236 Rutherford Road, #113
Carlsbad, CA 92008
16. Naot $72,799
80 Ruland Road, Suite 2
Melville, NY 11747
17. Dansko $66,575
33 Federal Road
West Grove, PA 19390
18. Genesco, Inc. $64,721
4008 Reliable Parkway
Chicago, IL 60686
19. Footwear Unlimited Inc $64,095
99 Larkin Williams Ind. Ct
Fenton, MO 63026
20. ASICS $60,515
PO Box 827483
Philadelphia, PA 19182
BAUDAX BIO: Plan Exclusivity Period Extended to February 16
-----------------------------------------------------------
Judge Ashely M. Chan of the U.S. Bankruptcy Court for the Eastern
District of Pennsylvania extended Baudax Bio, Inc.'s exclusive
periods to file a plan of reorganization and obtain acceptance
thereof to February 16 and April 17, 2025, respectively.
As shared by Troubled Company Reporter, the Debtor explains that it
would be premature (at best), as well as a waste of time, effort
and resources, including judicial resources, to require the Debtor
to file a plan by December 18, 2024 to maintain its right to
exclusivity.
The Debtor asserts that it should be afforded a full and fair
opportunity to negotiate, propose, and seek acceptances to a
confirmable plan of reorganization. The Debtor believes that the
extension of the exclusive periods is warranted and appropriate
under the circumstances and should be granted.
Moreover, it is submitted that, particularly in light of the
anticipated liquidation plan to be proposed by the Debtor, the
extension requested will not prejudice the legitimate interests of
any creditor and will likely afford parties in interest an
opportunity to pursue to fruition the beneficial objectives of a
consensual reorganization.
Baudax Bio, Inc., is represented by:
David B. Smith, Esq.
Nicholas M. Engel, Esq.
SMITH KANE HOLMAN, LLC
112 Moores Road, Suite 300
Malvern, PA 19355
Telephone: (610) 407-7215
Facsimile: (610) 407-7218
Email: dsmith@skhlaw.com
About Baudax Bio, Inc.
Baudax Bio, Inc. is a biotechnology company focused on developing T
cell receptor therapies utilizing human regulatory T cells, as well
as a portfolio of clinical stage neuromuscular blocking agents and
an associated reversal agent.
Baudax Bio, Inc., filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. E.D. Pa. Case No.
24-10583) on February 22, 2024, listing up to $50,000 in assets and
$10 million to $50 million in liabilities. The petition was signed
by Gerri Henwood as chief executive officer.
Judge Magdeline D. Coleman presides over the case.
David B. Smith, Esq., at SMITH KANE HOLMAN, LLC, is the Debtor's
counsel.
BAUSCH HEALTH: Brings in Evercore, Proskauer to Advisory Team
-------------------------------------------------------------
Reshmi Basu, Ike Swetlitz, and Jill R. Shah of Bloomberg News
report that Bausch Health Cos Inc. is reorganizing its advisory
team as part of its ongoing efforts to address approximately $20
billion in debt and finalize a critical asset sale.
The company, aiming to sell its profitable eye-care division Bausch
+ Lomb and refinance its debt, has brought on Evercore Inc. as
financial advisors, according to sources familiar with the
situation. It has also replaced its longtime legal counsel, White &
Case LLP, with Proskauer Rose LLP, according to report.
About Bausch Health Companies Inc.
Bausch Health Companies Inc. develops drugs for unmet medical
needs
in central nervous system disorders, eye health, and
gastrointestinal diseases, as well as contact lenses, intraocular
lenses, ophthalmic surgical equipment, and aesthetic devices.
As of March 31, 2024, the Company had $26.91 billion in total
assets, $27.09 billion in total liabilities, and $174 million in
total deficit.
* * *
In April 2024, S&P Global Ratings raised its issuer credit rating
on Bausch Health Cos. Inc. to 'CCC+' from 'CCC'. S&P also raised
its issue-level ratings on the senior secured debt to 'B-' from
'CCC+', and its ratings on the second-lien notes and unsecured
notes to 'CCC' from 'CCC-'.
The negative outlook reflects the risk that Bausch Health could
pursue distressed exchanges as it approaches its sizable debt
maturities.
In September 2024, Fitch Ratings has affirmed Bausch Health
Companies' (BHC) and Bausch Health America's (BHA) (collectively:
Bausch Health) Long-Term Issuer Default Ratings (IDRs) at 'CCC'
and
first-lien debt at 'B'/'RR1'. Fitch has also affirmed BHC's
second-lien debt at 'CC'/'RR6' and Bausch Health's unsecured debt
at 'C'/'RR6'.
The 'CCC' IDRs reflect BHC's elevated refinancing risk amid the
following two key uncertainties: when and to what degree does
competition impact BHC's XIFAXAN product, and whether and when the
company completes its separation of Bausch + Lomb Corporation
(BLCO). The BLCO separation would reduce diversification and
likely
increase leverage.
BELLY RUBS: Seeks Chapter 11 Bankruptcy Protection in Virginia
--------------------------------------------------------------
On January 23, 2025, Belly Rubs Pet Care LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the Eastern District
of Virginia.
According to court filing, the Debtor reports between $100,000
and $500,000 in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About Belly Rubs Pet Care LLC
Belly Rubs Pet Care LLC is operating from Ashburn, Virginia,
provides pet care services from its location at Junction Plaza.
Belly Rubs Pet Care LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Va. Case No. 25-10145) on January 23,
2025. In its petition, the Debtor reports estimated assets between
$50,000 and $100,000 and estimated liabilities between $100,000 and
$500,000.
The Debtor is represented by:
James P Campbell, Esq.
Campbell Flannery, P.C. 1602 Village Market Boulevard #225
Leesburg, VA 20175
Telephone: (703) 771-8344
Facsimile: (703) 777-1485
Email: jcampbell@campbellflannery.com
BGP WAREHOUSE: Case Summary & Four Unsecured Creditors
------------------------------------------------------
Debtor: BGP Warehouse Indiana, LLC
4525 140th Ave. N., Suite 900
Clearwater, FL 33762
Chapter 11 Petition Date: January 23, 2025
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 25-00413
Judge: Hon. Roberta A Colton
Debtor's Counsel: Scott A. Stichter, Esq.
STICHTER, RIEDEL, BLAIN & POSTLER, P.A.
110 E. Madison St., Suite 200
Tampa, FL 33602
Tel: (813) 229-0144
E-mail: sstichter@srbp.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Gary S. Peltz as manager.
A copy of the Debtor's list of four unsecured creditors is
available for free on PacerMonitor at:
https://www.pacermonitor.com/view/EOLW7TA/BGP_Warehouse_Indiana_LLC__flmbke-25-00413__0002.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/EB3SYMI/BGP_Warehouse_Indiana_LLC__flmbke-25-00413__0001.0.pdf?mcid=tGE4TAMA
BIG LOTS: Plan Exclusivity Period Extended to April 7
-----------------------------------------------------
Judge J. Kate Stickles of the U.S. Bankruptcy Court for the
District of Delaware extended Big Lots, Inc. and certain of its
affiliates' exclusive periods to file a plan of reorganization and
obtain acceptance thereof to April 7 and June 6, 2025,
respectively.
As shared by Troubled Company Reporter, the Debtors explain that
given the size and complexity of these Chapter 11 Cases,
terminating exclusivity would be detrimental to an efficient
resolution of these cases. While no other party has yet suggested
they would be willing or able to propose a plan, terminating
exclusivity could create a situation where the Debtors' estates are
saddled with multiple and competing plans.
Specifically, now that the GBRP Sale has closed, and in order to
determine the most value-maximizing path forward for all
stakeholders, the Debtors need sufficient time to reconcile claims
asserted by trade creditors and other administrative claimants and
determine how best to maximize and distribute the remaining estate
assets. Determining such a process will take time and will likely
have a substantial impact on the terms of any chapter 11 plan
proposed by the Debtors.
The Debtors believe that all parties may benefit from an orderly
process set forth in a chapter 11 plan, and the Debtors will
endeavor to garner support for a plan if one is pursued,
notwithstanding the likelihood that accrued administrative expense
creditors will not receive a full recovery. There is potentially
significant upside to the Excluded Assets, and the Debtors should
have the opportunity to explore a plan around distributing the
liquidated value of such Excluded Assets even if it contemplates
impairment of administrative claims.
Counsel to the Debtors:
Robert J. Dehney, Sr., Esq.
Sophie Rogers Churchill, Esq.
Andrew R. Remming, Esq.
Tamara K. Mann, Esq.
Casey B. Sawyer, Esq.
MORRIS, NICHOLS, ARSHT & TUNNELL LLP
1201 N. Market Street, 16th Floor
Wilmington, DE 19801
Tel: (302) 658-9200
Email: rdehney@morrisnichols.com
aremming@morrisnichols.com
tmann@morrisnichols.com
srchurchill@morrisnichols.com
csawyer@morrisnichols.com
- and -
Brian M. Resnick, Esq.
Adam L. Shpeen, Esq.
Stephen D. Piraino, Esq.
Ethan Stern, Esq.
DAVIS POLK & WARDWELL LLP
450 Lexington Avenue
New York, NY 10017
Tel: (212) 450-4000
Email: brian.resnick@davispolk.com
adam.shpeen@davispolk.com
stephen.piraino@davispolk.com
ethan.stern@davispolk.com
About Big Lots
Big Lots (NYSE: BIG) -- http://www.biglots.com/-- is one of the
nation's largest closeout retailers focused on extreme value,
delivering bargains on everything for the home, including
furniture, decor, pantry and more.
On Sept. 9, 2024, Big Lots, Inc. and each of its subsidiaries
initiated voluntary Chapter 11 proceedings (Bankr. D. Del. Lead
Case No. 24-11967). The case is being administered by the Honorable
J. Kate Stickles.
Davis Polk & Wardwell LLP is serving as legal counsel, Guggenheim
Securities, LLC is serving as financial advisor, AlixPartners LLP
is serving as restructuring advisor, and A&G Real Estate Partners
is serving as real estate advisor to the Company. Kroll is the
claims agent.
Kirkland & Ellis is serving as legal counsel to Nexus Capital
Management LP.
PNC Bank, National Association, the DIP ABL Agent and Prepetition
ABL Agent, is represented by Choate, Hall & Stewart, LLP; and Blank
Rome, LLP. 1903P Loan Agent, LLC, the DIP Term Agent, and the
Prepetition Term Loan Agent are represented by Otterbourg, P.C. and
Richards, Layton & Finger, P.A.
BIOMERICA INC: Reduces Net Loss to $950K in Second Quarter
----------------------------------------------------------
Biomerica, Inc., filed its quarterly report on Form 10-Q with the
Securities and Exchange Commission, disclosing a net loss of
$950,000 on net sales of $1.64 million for the three months ended
Nov. 30, 2024. This compares to a net loss of $1.51 million on net
sales of $1.57 million for the three months ended Nov. 30, 2023.
For the six months ended Nov. 30, 2024, the Company reported a net
loss of $2.27 million on net sales of $3.44 million, compared to a
net loss of $2.64 million on net sales of $3.28 million for the
same period a year ago.
As of Nov. 30, 2024, the Company had $7.27 million in total assets,
$2.16 million in total liabilities, and $5.11 million in total
shareholders' equity.
Biomerica said that "Management has analyzed the Company's cash
flow requirements through February 2026 and beyond. Based on this
analysis, we believe our current cash and cash equivalents are
insufficient to meet our operating cash requirements and strategic
growth objectives for the next twelve months.
"To address our capital needs and sustain operations beyond the
next year, we are actively pursuing strategies to increase sales,
reduce expenses, sell non-core assets, seek additional financing
through debt or equity, and seek other strategic alternatives.
While we are committed to these plans, there is no assurance that
these efforts will be successful or sufficient to meet our capital
requirements.
"As part of our efforts to reduce costs, we are executing
significant cost-cutting measures to extend our cash runway and
work towards increasing revenues to cover overhead costs. These
measures included a workforce reduction of nearly 15% in July 2024
and a substantial reduction in other operating expenses.
Additionally, we have successfully raised $567,000 in net proceeds
from the May 2024 ATM offering, providing additional liquidity to
support our operations.
"These factors raise substantial doubt about the Company's ability
to continue as a going concern. Our future viability depends on
the successful execution of our strategic plans, securing
additional financing, and achieving profitable operations."
The full text of the Form 10-Q is available at no cost at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/73290/000149315225002209/form10-q.htm
About Biomerica
Headquartered in Irvine, CA, Biomerica, Inc. is a global biomedical
technology company that develops, patents, manufactures and markets
advanced diagnostic and therapeutic products. The Company's
diagnostic test kits are utilized in the analysis of blood, urine,
nasal, or fecal samples for the diagnosis of various diseases, food
intolerances, and other medical conditions. These kits also
measure levels of specific hormones, antibodies, antigens, and
other substances, which may exist in the human body at extremely
low concentrations. The Company's products are designed to enhance
health and well-being while reducing overall healthcare costs.
Irvine, California-based Haskell & White LLP, the Company's auditor
since 2022, issued a "going concern" qualification in its report
dated Aug. 28, 2024, citing that the Company has experienced
recurring losses and negative cash flows from operations and has an
accumulated deficit and limited liquid resources. These matters
raise substantial doubt about the Company's ability to continue as
a going concern.
BIOSIG TECHNOLOGIES: Interim CFO Owns 25,000 Common Shares
----------------------------------------------------------
BioSig Technologies, Inc.'s Interim CFO, Ferdinand Groenewald,
disclosed in a Form 3 filing with the U.S. Securities and Exchange
Commission that as of January 13, 2025, he beneficially owned
25,000 shares of common stock granted under the Company's 2023
Long-Term Incentive Plan.
A full-text copy of Mr. Groenewald's SEC Report is available at:
https://tinyurl.com/4whd448r
About BioSig Technologies
Westport, Conn.-based BioSig Technologies, Inc. was initially
incorporated on February 24, 2009, under the laws of the State of
Nevada and subsequently re-incorporated in the state of Delaware in
2011. The Company is principally devoted to improving the standard
of care in electrophysiology with its PURE EP System's enhanced
signal acquisition, digital signal processing, and analysis during
ablation of cardiac arrhythmias.
As of September 30, 2024, the Company had $1.4 million in total
assets, $1.7 million in total liabilities, $105,000 in Commitments
and contingencies, and $388,000 in total deficit.
As of September 30, 2024, the Company had cash of $0.6 million and
working capital deficit of $0.9 million. During the nine months
ended September 30, 2024, the Company used net cash in operating
activities of $4.3 million. These balances create a liquidity
concern, which in turn raises substantial doubt about the Company's
ability to continue as a going concern.
BIOTACTICS INC: Court OKs Deal on Cash Collateral Access
--------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
approved a stipulation between Biotactics, Inc. and the CDC Small
Business Finance authorizing the company to use its secured
creditor's cash collateral.
The stipulation allows the company to use cash collateral until
April 30 for payment of
post-petition expenses.
As protection, CDC will receive replacement lien on all
post-petition assets and revenues of Biotactics to the same extent
and with the same priority and validity as its pre-bankruptcy lien.
Moreover, Biotactics will pay CDC $1,422 per month as additional
protection.
About Biotactics Inc.
Biotactics, Inc. sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-12038) on
Dec. 6, 2024, with up to $500,000 in assets and up to $1 million in
liabilities. Howard Andrew Maltby, president of Biotactics, signed
the petition.
Judge Victoria S. Kaufman oversees the case.
The Debtor is represented by:
Michael Jay Berger, Esq.
Law Offices of Michael Jay Berger
9454 Wilshire Blvd., 6th Floor
Beverly Hills, CA 90212
Telephone: (310) 271-6223
Facsimile: (310) 271-9805
Email: Michael.Berger@bankruptcypower.com
BLACKFORD ATM: Faces Involuntary Chapter 7 Bankruptcy
-----------------------------------------------------
Yun Park of Law360 reports that Silverview Credit Partners LP has
filed an involuntary Chapter 7 petition in Delaware bankruptcy
court against Blackford ATM Ventures, a Pennsylvania-based operator
of ATMs, alleging $28.6 million in loan defaults.
About Blackford ATM Ventures
Blackford ATM Ventures is an ATM operator based in Pennsylvania.
Silverview Credit Partners LP sought involuntary Chapter 7 petition
against Blackford under the U.S. Bankruptcy Code (Bankr. D. Del.
Case No. 25-10112) on January 21, 2025.
Honorable Bankruptcy Judge Mary F. Walrath handles the case.
BLUM HOLDINGS: Enters LOI to Acquire Cannabis Dispensary for $2MM
-----------------------------------------------------------------
Blum Holdings, Inc. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that the Company entered
into a non-binding letter of intent with a third-party seller.
The Letter of Intent outlines the general terms and conditions of a
proposed transaction pursuant to which the Company, via a newly
formed subsidiary Blum Acquisition Co., will acquire 100% of the
common stock of Seller. Seller owns and operates a licensed
cannabis dispensary in Northern California. The total consideration
for the Proposed Transaction shall be $2,000,000 comprised of:
(i) $1,300,000 payable in cash at closing,
(ii) $200,000 payable in cash or stock at the Seller's election
subject to earn-outs, and
(iii) $500,000 payable in shares of the Company's Common Stock
at a per share price of $1.90, which shall be issued at closing and
held in escrow, subject to a 12-month holdback. In addition,
performance-based bonus awards shall be payable in cash or stock as
mutually agreed based on milestone requirements for 2025.
The Proposed Transaction structure is yet to be determined based on
the due diligence findings as well as business, legal, tax,
accounting and other considerations. Each of the parties'
obligations to close the Proposed Transaction will be subject to
customary conditions and other conditions agreed to by the parties
to be included in the definitive agreements for the Proposed
Transaction, including but not limited to the receipt of all
necessary approvals and consents required by each party to complete
the Proposed Transaction.
About Blum Holdings
Blum Holdings, Inc., headquartered in Santa Ana, California, is a
cannabis company engaged in retail and distribution across
California. The company focuses on providing high-quality medical
and adult-use cannabis products and is known for its Korova brand,
which offers high-potency products in various categories. Blum
Holdings operates several dispensaries, including Blum OC in Orange
County, and locations under The Spot and Blum brands in Santa Ana,
Oakland, and San Leandro.
Costa Mesa, California-based Marcum LLP, the company's auditor
since 2018, issued a "going concern" qualification in its report
dated April 15, 2024. The report indicated a significant working
capital deficiency, substantial losses, and the need for additional
funds to meet obligations and sustain operations, raising
substantial doubt about Blum Holdings' ability to continue as a
going concern.
BLUM HOLDINGS: Issues $100,000 Promissory Notes to Four Investors
-----------------------------------------------------------------
Blum Holdings, Inc. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that on January 8, 2025, it
executed and delivered Unsecured Promissory Notes in the aggregate
principal amount of $100,000 amongst four separate investors.
The Notes have a maturity date of December 30, 2026 with no
interest accruing except for default interest and no prepayment
penalty.
The Notes are convertible at the Lenders' individual election into
a convertible promissory note that shall include an automatic
conversion into the shares of capital stock issued by Blum in its
next bona fide equity financing with proceeds to Blum of at least
$10,000,000 or such lesser amount as approved by Lenders at a
conversion price equal to the lesser of (x) 85% of the lowest price
paid by the cash investors in such financing and (y) the price
represented by a $30,000,000 pre-money valuation of Blum. The
Company shall grant the Lenders warrants to purchase, in the
aggregate, up to 7,812 shares of the Company's Common Stock, at an
exercise price of $0.64 per share.
A full text copy of the Form of Unsecured Promissory Note is
available at:
https://tinyurl.com/4bynm4x5
About Blum Holdings
Blum Holdings, Inc., headquartered in Santa Ana, California, is a
cannabis company engaged in retail and distribution across
California. The company focuses on providing high-quality medical
and adult-use cannabis products and is known for its Korova brand,
which offers high-potency products in various categories. Blum
Holdings operates several dispensaries, including Blum OC in Orange
County, and locations under The Spot and Blum brands in Santa Ana,
Oakland, and San Leandro.
Costa Mesa, California-based Marcum LLP, the company's auditor
since 2018, issued a "going concern" qualification in its report
dated April 15, 2024. The report indicated a significant working
capital deficiency, substantial losses, and the need for additional
funds to meet obligations and sustain operations, raising
substantial doubt about Blum Holdings' ability to continue as a
going concern.
As of September 30, 2024, Blum Holdings had $38.7 million in total
assets, $66.2 million in total liabilities, and $27.5 million in
total mezzanine equity and stockholders' deficit.
BRICKTON LP: Plan Exclusivity Period Extended to April 18
---------------------------------------------------------
Judge Christopher D. Jaime of the U.S. Bankruptcy Court for the
Eastern District of California extended Brickton LP's exclusive
periods to file a plan of reorganization and obtain acceptance
thereof to April 18 and June 17, 2025, respectively.
As shared by Troubled Company Reporter, the Debtor claims that
there are several factors that require special attention in this
case. The Property was built specifically to serve as an RCFE and
has been continuously maintained as an RCFE. Further, the decisions
made in this bankruptcy case could also have a significant impact
on the elderly residents of the Property. Each of these factors
must be carefully weighed by Debtor in formulating its Plan of
Reorganization and, therefore, support the requested extensions.
The Debtor asserts that there is significant equity in the
Property, above and beyond the Loans owed to Stearns Bank. There
are also very few other creditors other than Stearns Bank. These
factors weigh heavily in favor of a reasonable prospect of a viable
plan. Debtor simply needs some additional time to weigh the options
and carefully draft its plan to capture that value.
The Debtor further asserts that it does not believe the requested
extensions pressure the creditors in any way. As noted, Stearns
Bank, is significantly oversecured. Further, the concerns raised by
Stearns Bank to date in this bankruptcy, namely, an alleged
conflict of interest of Debtor's president Mr. Matkovich in the
Debtor's relationship with its lessee Cameo RCFE, will be addressed
by the Court's decision in the pending Trustee Motion. Stearns Bank
has more than amply stood up for itself and applied its own
pressure during the short pendency of this Chapter 11 case.
Brickton LP is represented by:
Stephen D. Finestone, Esq.
Kimberly S. Fineman, Esq.
Finestone Hayes LLP
456 Montgomery Street, Suite 1300
San Francisco, CA 94104
Tel: (415) 421-2624
Fax: (415) 398-2820
Email: sfinestone@fhlawllp.com
About Brickton LP
Brickton LP, filed a Chapter 11 bankruptcy petition (Bankr. E.D.
Cal. Case No. 24-23724) on August 21, 2024, disclosing under $1
million in both assets and liabilities. The Debtor is represented
by Finestone Hayes LLP.
BROUDY GROUP: Court Extends Use of Cash Collateral Until Feb. 22
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Texas granted
Broudy Group, Inc. interim authority to use cash collateral until
Feb. 22.
Broudy Group was authorized to use cash collateral to pay operating
expenses set forth in its six-week budget.
The budget shows total projected expenses of $797,700 from Jan. 12
to 18; $1,043,334.98 from Jan. 19 to 25; $742,287.85 from Jan. 26
to Feb 1; $776,700 from Feb. 2 to 8; $797,700 from Feb. 9 to 15;
and $776,700 from Feb. 16 to Feb 22.
A final hearing is scheduled for Feb. 2.
About Broudy Group
Broudy Group Inc. is an automobile dealer in Celina, Texas.
Broudy Group sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. E.D. Texas Case No. 24-42463) on Oct. 18, 2024, with
$1 million to $10 million in both assets and liabilities. Carey E.
Broudy, president and director, signed the petition.
Judge Brenda T. Rhoades oversees the case.
The Debtor is represented by:
Howard Marc Spector, Esq.
Spector & Cox, PLLC
Tel: 214-365-5377
Email: hspector@spectorcox.com
CAPELLA HOSPITALITY: Gets OK to Use Cash Collateral Until Feb. 26
-----------------------------------------------------------------
Capella Hospitality, LLC and its affiliates received interim
approval from the U.S. Bankruptcy Court for the Northern District
of Georgia to use cash collateral to pay their operating expenses.
The interim order signed by Judge James Sacca authorized the
companies to use cash collateral from Jan. 14 to Feb. 26.
As adequate protection, lenders Georgia's Own Credit Union and
Bhakta Hospitality, LLC were granted replacement liens on the
companies' post-petition property of a similar nature, except
avoidance actions.
In addition, Georgia's Own Credit Union will receive a monthly
payment of $15,561.55 from Capella Hospitality; $1,742 from 1st
Place Hospitality, LLC; $8,916.33 from 1st Haven Apartments, LLC;
and $12,964.83 from 1st Place Decatur Hospitality, LLC.
The final hearing is scheduled for Feb. 26.
Georgia's Own Credit Union can be reached through its counsel:
Harris B. Winsberg, Esq.
Parker, Hudson, Rainer & Dobbs, LLP
303 Peachtree Street, N.E., Suite 3600
Atlanta, GA 30308
Telephone: (404) 523‑5300
Facsimile: (404) 522-8409
hwinsberg@phrd.com
Bhakta Hospitality can be reached through its counsel:
Michael R. Wing, Esq.
Robinson Franzman, LLP
191 Peachtree Street NE, Suite 2600
Atlanta, GA 30303
Telephone: (404) 255-2503
Email: michael@rfllplaw.com
About Capella Hospitality
Capella Hospitality, LLC operates hotels and motels in Alpharetta,
Ga.
Capella Hospitality and its affiliates, 1st Place Decatur
Hospitality, LLC, 1st Haven Apartments, LLC and 1st Place
Hospitality, LLC, filed Chapter 11 petitions (Bankr. N.D. Ga. Lead
Case No. 24-21224) on September 30, 2024. At the time of the
filing, Capella Hospitality reported $1 million to $10 million in
both assets and liabilities.
Judge James R. Sacca oversees the cases.
The Debtors are represented by:
William A. Rountree, Esq.
Rountree Leitman Klein & Geer, LLC
2987 Clairmont Road Suite 350
Atlanta, GA 30329
Tel: 404-584-1238
Email: wrountree@rlkglaw.com
CELESTIAL PRODUCTS: Gets OK to Use Cash Collateral Until Feb. 18
----------------------------------------------------------------
Celestial Products USA, LLC received interim approval from the U.S.
Bankruptcy Court for the Northern District of Texas, Fort Worth
Division, to use cash collateral until Feb. 18.
The Debtor depends on the use of cash collateral for the production
of its tamales including constant purchases of new food supplies,
other materials, payroll and general operating expenses. Revenue is
generated through the Debtor's online retail businesses selling
tamales throughout the US.
The U.S. Small Business Administration and C T Corporation System
assert an interest in the Debtor's cash collateral.
Both were granted replacement liens on all post-petition cash
collateral and other property of the Debtor to the same extent and
with the same priority as their pre-bankruptcy liens.
The final hearing is scheduled for Feb. 18, with objections due by
Feb. 14.
About Celestial Products USA LLC
Celestial Products USA LLC sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-40153-mxm11)
on January 16, 2025. In the petition signed by Jose Felix Silva,
owner, the Debtor disclosed up to $50,000 in assets and up to $10
million in liabilities.
Judge Mark X. Mullin oversees the case.
Robert C Lane, Esq., at The Lane Law Firm, represents the Debtor as
legal counsel.
CELSIUS NETWORK: Bankruptcy Judge Approves Lawsuit Against Founder
------------------------------------------------------------------
Rick Archer of Law360 reports that a New York bankruptcy judge has
authorized a lawsuit against Celsius Network founder and former CEO
Alex Mashinsky, accusing him of causing billions in damages to the
bankrupt cryptocurrency lender following his guilty plea to federal
fraud charges.
About Celsius Network
Celsius Network LLC -- http://www.celsius.network/-- is a
financial services company that generates revenue through
cryptocurrency trading, lending, and borrowing, as well as by
engaging in proprietary trading.
Celsius helps over a million customers worldwide to find the path
towards financial independence through a compounding yield service
and instant low-cost loans accessible via a web and mobile app.
Celsius has a blockchain-based fee-free platform where membership
provides access to curated financial services that are not
available through traditional financial institutions.
The Celsius Wallet claims to be one of the only online crypto
wallets designed to allow members to use coins as collateral to get
a loan in dollars, and in the future, to lend their crypto to earn
interest on deposited coins (when they're lent out).
Crypto lenders such as Celsius boomed during the COVID-19 pandemic,
drawing depositors with high interest rates and easy access to
loans rarely offered by traditional banks. But the lenders'
business model came under scrutiny after a sharp sell-off in the
crypto market spurred by the collapse of major tokens terraUSD and
luna in May 2022.
New Jersey-based Celsius froze withdrawals in June 2022, citing
"extreme" market conditions, cutting off access to savings for
individual investors and sending tremors through the crypto
market.
The list of major crypto firms that have filed for bankruptcy
protection in 2022 now includes Celsius Network, Three Arrows
Capital and Voyager Digital.
Celsius Network, LLC and its subsidiaries sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case
No. 22-10964) on July 14, 2022. In the petition filed by CEO Alex
Mashinsky, the Debtors estimated assets and liabilities between $1
billion and $10 billion.
The Debtors tapped Kirkland & Ellis, LLP and Kirkland & Ellis
International, LLP as bankrupty counsels; Fischer (FBC & Co.) as
special counsel; Centerview Partners, LLC as investment banker; and
Alvarez & Marsal North America, LLC as financial advisor. Stretto
is the claims agent and administrative advisor.
On July 27, 2022, the U.S. Trustee appointed an official committee
of unsecured creditors. The committee tapped White & Case, LLP as
its bankruptcy counsel; Elementus Inc. as its blockchain forensics
advisor; M3 Advisory Partners, LP as its financial advisor; and
Perella Weinberg Partners, LP as its investment banker.
Shoba Pillay, Esq., is the examiner appointed in the Debtors'
Chapter 11 cases. Jenner & Block, LLP and Huron Consulting
Services, LLC, serve as the examiner's legal counsel and financial
advisor, respectively.
* * *
On November 9, 2023, the Bankruptcy Court entered the Findings of
Fact, Conclusions of Law, and Order Confirming the Modified Joint
Chapter 11 Plan of Celsius Network LLC and Its Debtor Affiliates.
The Effective Date of the Plan occurred January 31, 2024.
CHIC COUTURE: Unsecureds Will Get 76.6% of Claims over 60 Months
----------------------------------------------------------------
Chic Couture Online, LLC, filed with the U.S. Bankruptcy Court for
the Southern District of Florida a Plan of Reorganization dated
January 16, 2025.
The Debtor is an online clothing and accessories retailer. The
company sells women's clothing and accessories from its website. It
has been in business since 2015.
This Plan provides for two classes of priority unsecured claims,
and one class of general unsecured claims. This Plan also provides
for the payment of administrative claims.
The Debtor's ability to fully fund the plan and make payments is
dependent on the company's future income.
Class 1 consists of the unsecured priority claim of the Internal
Revenue Service. The IRS has a priority amount of $558.25. The
Debtor will pay $558.25 on the effective date. This Class is
unimpaired.
Class 2 consists of the unsecured priority claim of the Florida
Department of Revenue. Florida DOR has a priority claim in the
amount of $16,941.00. The Debtor will pay $282.25 per month for 60
months in full satisfaction of this claim. This class is impaired.
Class 3 consists of general unsecured creditors. The filed
undisputed general unsecured claims total approximately
$313,180.35. The unsecured creditors will be share in the pro rata
distribution of $4,000.00 per month for 60 months. The creditors
will receive approximately 76.6% of their claim. This class is
impaired.
The owners of the Debtor shall retain all property of the estate.
A full-text copy of the Plan of Reorganization dated January 16,
2025 is available at https://urlcurt.com/u?l=8R9AHr from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Brian K. McMahon, Esq.
Brian K. McMahon, PA
1401 Forum Way, 6th Floor
West Palm Beach, FL 33401
Tel: (561) 478-2500
Fax: (561) 478-3111
Email: brian@bkmbankruptcy.com
About Chic Couture Online
Chic Couture Online, LLC, a company in Lauderdale Lakes, Fla., owns
and operates an online retail shop specializing in women's clothing
and accessories.
Chic Couture Online sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-20940) on October 22,
2024, with $100,001 to $500,000 in assets and $1 million to $10
million in liabilities. Johane Porsenna, president of Chic Couture
Online, signed the petition.
Judge Peter D. Russin oversees the case.
Brian K. McMahon, Esq., at Brian K. McMahon, PA, represents the
Debtor as legal counsel.
COLD SPRING: Seeks Immediate Appointment of Creditors' Committee
----------------------------------------------------------------
Cold Spring Acquisition, LLC filed a motion seeking the immediate
appointment of an official committee that will represent unsecured
creditors in its Chapter 11 case.
The move came after the U.S. Trustee for Region 2, which oversees
the company's bankruptcy case, allegedly refused to appoint a
committee and failed to file a notice of inability to appoint a
committee after the deadline to file applications for committee
membership expired.
"The [U.S. Trustee] has refused to appoint a creditors' committee
in the nearly three weeks that have elapsed since the petition
date," Schuyler Carroll, Esq., the company's attorney, said.
"The [U.S. Trustee] has repeatedly complained that [Cold Spring
Acquisition] is rushing forward before a committee can be
appointed," Mr. Carroll said in the motion filed with the U.S.
Bankruptcy Court for the Southern District of New York.
Mr. Carroll said the U.S. Trustee's refusal "raises due process
concerns," pointing out that objections to the motion to appoint an
independent Chapter 11 trustee are due in days.
"There is simply no way a committee could meaningfully weigh in if
not appointed immediately," the attorney said.
About Cold Spring Acquisition
Cold Spring Acquisition, LLC operates a skilled nursing and
rehabilitation facility in Woodbury, N.Y. In particular, the
senior care facility provides hospice, dementia care, medical needs
and rehabilitation care, and runs a senior day program.
Cold Spring Acquisition filed Chapter 11 petition (Bankr. S.D. N.Y.
Case No. 25-22002) on January 2, 2025, with $1 million to $10
million in assets and $50 million to $100 million in liabilities.
Judge Sean H. Lane oversees the case.
The Debtor is represented by:
Schuyler G. Carroll, Esq.
Russell E. Potter, Esq.
Thomas A. Whittington, Esq.
Manatt, Phelps & Phillips, LLP
7 Times Square
New York, NY 10036
Tel: (212) 790-4500
scarroll@manatt.com
rpotter@manatt.com
twhittington@manatt.com
COMMERCIAL FURNITURE: Unsecureds Will Get 27% of Clains in Plan
---------------------------------------------------------------
Commercial Furniture Services, LLC, filed with the U.S. Bankruptcy
Court for the Eastern District of Tennessee a Plan of
Reorganization dated January 16, 2025.
The Debtor is a Tennessee limited liability company founded in
2011. Debtor's primary business is the installation and sale of
commercial furniture in Tennessee and Georgia.
The Debtor's principal place of business is located at 100 W MLK
Blvd., STE 618, Chattanooga, TN 37402. Debtor also operates its
business from a leased warehouse space at 1 Andrew Drive,
Stockbridge, GA 30281 ("Stockbridge Warehouse").
This Plan deals with all property of Debtor and provides for
treatment of all Claims against Debtor and its property.
The Debtor's financial projections demonstrate that it will
generate sufficient income to meet the required Plan payments. The
Debtor projects an average monthly gross income of $211,423.45 and
average monthly operating costs of $174,556.28 based on historical
performance and anticipated post-confirmation operations. The
projected net cash flow will allow for timely payments to creditors
under the Plan while maintaining necessary working capital.
As part of the restructuring strategy, the Debtor is requesting
Debtor-in-Possession (DIP) Financing in the amount of $90,000.00,
which will provide the necessary liquidity to sustain operations
and fund Plan payments. The DIP Financing will be secured by the
factoring of current accounts receivable, and the loan terms will
allow the Debtor to meet is financial obligations while preserving
cash flow for business operations.
Class 5 shall consist of general unsecured claims not otherwise
specifically classified in the Plan. The Debtor will pay the
Holders of Class 5 general unsecured claims in monthly payments
prorate commencing on the eighth day of the eleventh month
following the Effective Date and continuing monthly thereafter for
a total of forty payments. The Unsecured Distributions shall equal
twenty-seven percent. The total Unsecured Distributions shall be
$151,968.24.
Notwithstanding anything else in this document to the contrary, (i)
to the extent that any additional general unsecured creditor's
proof of claim is deemed timely filed, such proof of claim shall
share in the distribution in this case and the projected
distributions shall be reduced accordingly, and (ii) any claim
listed shall be reduced by any payment received by the creditor
holding such claim from any third party or other obligor, and
Debtor's obligations hereunder shall be reduced accordingly. No
Holders of Class 5 General Unsecured Claims shall receive more than
the amount of the Class 5 General Unsecured Claims.
The Claims of the Class 5 Creditors are Impaired by the Plan and
the holders of Class 5 Claims are entitled to vote to accept or
reject the Plan.
Class 6 shall consist of administrative convenience unsecured
claims, including deficiency claims pursuant to Bankruptcy Code
sections 506 and 522(f) or otherwise, that are less than or equal
to $2,000.00. Holders of Allowed Class 6 Claims shall be paid a
one-time payment of $1,260.45 on the fifteenth day of the eleventh
month following the Effective Date in an amount equal to their
Allowed Claim. The Claims of the Class 6 Creditors are Impaired by
the Plan.
Class 8 consists of the equity interests. Jim McMenimen and
Blacksmith Management Services, Inc. shall retain their ownership
interests in the shares in Debtor. Notwithstanding anything to the
contrary in this Plan or in Debtor's organizational documents,
Debtor shall be authorized make distributions to any owners in the
amount of actual taxes attributable to Debtor, in proportion to the
member's ownership interests, and required to be paid by such
owner.
After the Confirmation Date, Debtor is authorized to sell or
refinance its assets free and clear of liens, claims and
encumbrances as set forth herein (the "Sale Procedures"). In the
event the applicable assets are subject to secured claims, Debtor
is authorized to sell or refinance such property free and clear of
liens, claims and encumbrances on the following terms:
* If selling or refinancing the entire property, Debtor may
sell or refinance such property for any amount (a release amount)
that is at least equal the outstanding amount of Allowed Secured
Claims securing such property; and
* If selling or refinancing a portion of the property, such as
a lot or portion of the acreage, Debtor may sell or refinance such
property for any amount (a release amount) that is at least equal
to the outstanding amount of Allowed Secured Claims securing such
property.
The source of funds for the payments pursuant to the Plan will be
the continued operations of Debtor and future projects.
A full-text copy of the Plan of Reorganization dated January 16,
2025 is available at https://urlcurt.com/u?l=9aLNIQ from
PacerMonitor.com at no charge.
The firm can be reached through:
Stephan R. Wright, Esq.
Braxton B. Markle, Esq.
Wright, Cortesi & Gilbreath
2030 Hamilton Place Blvd., Ste. 240
Chattanooga, TN 37421
Telephone: (423) 826-6919
Facsimile: (423) 826-6929
Email: swright@wcglegal.com
About Commercial Furniture Services
Commercial Furniture Services, LLC offers office furniture
installation, asset management (safe storage) and logistics
services.
Commercial Furniture Services filed its voluntary petition for
Chapter 11 protection (Bankr. E.D. Tenn. Case No. 24-12642) on Oct.
18, 2024. In the petition signed by Jim McMenimen, co-managing
member, the Debtor disclosed up to $500,000 in assets and up to $10
million in liabilities.
Wright, Cortesi & Gilbreath serves as the Debtor's counsel.
COMMERCIAL VEHICLE: S&P Lowers ICR to 'B-', Outlook Negative
------------------------------------------------------------
S&P Global Ratings lowered its rating on Commercial Vehicle Group
Inc. (CVG) to 'B-' from 'B' because it expects free operating cash
flow (FOCF) will remain negative through 2025 and leverage will be
elevated at around 6x in 2024.
The negative outlook reflects S&P's view that end-market demand
will remain subdued, delaying leverage improvement and further
constraining liquidity.
Unexpected weakness in commercial vehicle markets and operational
challenges have significantly pressured CVG's financial position.
S&P said, "We downgraded CVG based on its weaker than expected
liquidity position in 2024, and the potential that further pressure
could emerge in 2025. Weaker than expected demand from commercial
vehicle customers is primarily responsible. Much lower revenue and
earnings resulted in a large FOCF deficit in 2024 and reduced
available cash and credit availability. We now believe this could
continue into 2025. In our view, additional strain on its liquidity
position is likely in absence of a rebound in market conditions
that we do not expect until at least 2H 2025."
Due to planned restructuring CVG exited from businesses that it
considered to be non-core. It expects to benefit from reduced
exposure to the cyclicality of class 8 vehicle production in the
future. The company completed the sale of several businesses in
2024, including FinishTek, cab structures, First Source
Electronics, and a production facility with gross proceeds from
these sales totaling between $45 million to $50 million (not
including additional compensation from earn-out agreements). The
company used a portion of proceeds toward debt repayment.
Pro forma for the divestitures we now assume its adjusted
debt-to-EBITDA ratio at around 6x in 2024, which is no longer
commensurate with the previous rating. S&P said, "We expect
softness in demand will largely continue into 2025. In our view,
there is growing risk to the company's liquidity position that will
need to be addressed."
CVG's liquidity will be constrained in 2025. S&P said, "We expect
negative reported FOCF in 2024 (previously positive $9 million to
$15 million) and forecast reported FOCF between breakeven and
negative $5 million in 2025 (previously positive $20 million). The
weaker cash flow forecast is due to the persistently weak freight
demand environment that we expect will cause carriers to delay
capital expenditure in the first half of 2025 (which would lead to
reduced demand in the vehicle solutions and aftermarket and
accessories segments) before improving in the second half of the
year. Based on our updated cash flow estimates, we believe the
company is at an elevated risk of breaching its maximum leverage
covenant in 2025. Accordingly, we view CVG's liquidity as less than
adequate."
S&P said, "We forecast the company will likely breach its maximum
leverage covenant in 2025 after the step downs, absent additional
covenant relief, asset sales, working capital inflows, or material
improvement in end market demand, beyond some anticipated recovery
in commercial vehicle production in the second half of 2025. We
assume CVG would seek alternative sources of liquidity to avoid or
cure a covenant breach however, we do not include this in our
base-case assumptions.
"We believe future covenant relief is possible; the company amended
its credit agreement in December 2024 to avoid breaching the
maximum leverage covenant due to weaker demand across the business
further compounded by near-term restructuring charges. We expect
this amendment will provide some near-term covenant relief (maximum
leverage was increased to 4.25x from 3x, with multiple step downs
to 3x by the fourth quarter of 2025). At the same time, the company
reset the pricing grid. The highest pricing tier is now higher by
50 basis points (bps) at 3.25% for the company's first-lien term
loan and revolving credit facilities. As such, we do not expect
material improvement in FOCF from interest savings. We estimate the
amendment is leverage neutral with its first-lien term loan being
reduced to $85 million through repayment, offset by a draw on its
revolving credit facility (with commitments reduced to $125
million)."
Leverage will be elevated above historical levels in 2024 and 2025
as demand weakens across the business. Pro forma for the
divestitures we forecast revenue decline of 14%-15% in 2024
(estimated revenue decline of 5%-7% based on previous assumptions
pro forma for divestitures) and continued revenue decline between
2%-7% in 2025 (previous revenue growth of approximately 10%-13% pro
forma for divestitures). In 2024 demand from commercial vehicle
customers was worse than expected with carriers delaying capital
expenditure due to the weaker freight demand environment, which
affected the vehicle solutions (VS) and aftermarket and accessories
(AA) segments. Additionally, weaker commodity prices and housing
starts reduced demand from CVG's customers in the construction and
agriculture end markets. Lastly, the expected ramp up of recent
wins in electrical systems (ES) was also delayed. S&P expects this
softness in demand will largely continue into 2025.
S&P said, "We expect S&P Global Ratings-adjusted EBITDA margin will
contract nearly 400 basis points (bps) to the low-4% area in 2024
(previous mid-7% area) largely because of weaker demand and
restructuring charges. We forecast EBITDA margin improves 100-200
bps in 2025 (previous 8%-9%) largely as restructuring charges
incurred in 2024 roll off, foreign exchange headwinds subsist, and
business mix improves. S&P Global Ratings-adjusted debt to EBITDA
is, accordingly, higher than historical levels at nearly 6x in 2024
improving to the low-4x area in 2025. Our assessment of CVG's
financial risk profile worsened one category to aggressive from
significant."
Demand across CVG's end markets remain uncertain into 2025. North
American class 8 vehicle production continues to be volatile. S&P
believes production in 2024 was around 315,000--slightly better
than earlier forecasts (still lower compared to 340,000 in 2023).
S&P expects 2025 production will be lower, before improving
materially in 2026. The increase in 2026 is largely due to
anticipated pre-buys from EPA regulation limiting vehicle emissions
beginning in 2027.
Higher interest rates, with lower agriculture commodity prices,
housing starts, and commercial real estate developments reduced
demand from CVG's customers in construction and agriculture end
markets in 2024. S&P said, "We believe some of these headwinds will
persist into 2025. Further, we view demand weakening and margin
pressure as a result of tariffs on imports from Mexico as a
potential risk. Should demand decline beyond our current
expectations for 2025 due to any combination of these factors it
would place further pressure on the company's already constrained
liquidity."
S&P said, "The negative outlook reflects the risk that we could
lower the rating on CVG over the next 12 months if the company's
liquidity significantly deteriorated such that we believed the
company faces heightened liquidity risk or if we believed the
capital structure could become unsustainable.
"We could lower our rating if EBITDA margin remains flat over the
next 12 months or working capital needs increased beyond our
expectations, causing FOCF deficits for multiple quarters such that
liquidity deteriorates further, increasing the risk of a future
funding shortfall."
This could occur if:
-- North American class 8 production worsened beyond current
expectations in 2025;
-- Demand from CVG's customers in construction and agriculture
remained weak; or
-- CVG is unable to realize the full benefit of recent
restructuring efforts due to continued operating inefficiencies or
amplified supply chain disruption.
S&P could revise its outlook to stable if:
-- EBITDA margins improved such that the company were able to
generate at least break-even free cash flow on a sustained basis,
and S&P saw a path to further cash flow improvement; and
-- S&P expected the company would have a path to refinance its
debt facilities due May 2027.
CONCORDIA ANESTHESIOLOGY: Gets Final OK to Use Cash Collateral
--------------------------------------------------------------
Concordia Anesthesiology, Inc. received final approval from the
U.S. Bankruptcy Court for the Northern District of Georgia to use
cash collateral.
The final order authorized the company to use cash collateral to
pay the expenses set forth in its budget. The budget projects total
operational expenses of $10,490,852.53 for the period from November
2024 to October 2025.
As adequate protection, lenders were granted a replacement lien on
all property acquired by the company after the petition date that
is the same or similar nature, kind, or character as their
respective pre-bankruptcy collateral.
Concordia Anesthesiology was ordered to make monthly adequate
protection payments to the Internal Revenue Service in the amount
of $2,503.83 through the date of entry of an order confirming its
plan of reorganization.
The occurrence of certain events, such as the conversion or
dismissal of the Chapter 11 case, the appointment of an examiner or
trustee, or the company's failure to comply with the final order,
will constitute an "event of fefault" and may result in the
termination of the company's right to use cash collateral.
About Concordia Anesthesiology
Gainesville-based Concordia Anesthesiology, Inc. filed its
voluntary Chapter 11 petition (Bankr. N.D. Ga. Case No. 24-21106)
on Sept. 10, 2024, with $100,000 to $500,000 in assets and $1
million to $10 million in liabilities. The petition was signed by
Jarrod D. Huey, M.D. as chief executive officer and president.
Judge James R. Sacca oversees the case.
The Debtor is represented by:
Angelyn M. Wright, Esq.
The Wright Law Alliance, P.C.
Tel: 404-373-9933
Email: twlopc@earthlink.net
CONTAINER STORE: SEC, DOJ Challenge Proposed Releases
-----------------------------------------------------
Angelica Serrano-Roman of Bloomberg Law reports that the Justice
Department's bankruptcy watchdog and the Securities and Exchange
Commission opposed the Container Store's reorganization plan,
claiming it unlawfully includes nonconsensual legal protections for
third parties.
In objections filed with the U.S. Bankruptcy Court for the Southern
District of Texas, the agencies argued the plan improperly grants
sweeping litigation releases to several nonbankrupt entities
without creditor consent, violating the U.S. Supreme Court's 2023
ruling in Harrington v. Purdue Pharma.
About Container Store Group Inc.
Container Store Group Inc. is a company renowned for for selling
closet organizers and storage solutions.
Container Store Group Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Tex.) on December 22, 2024. In
its petition, the Debtor reports assets and liabilities between
$100 million and $500 million.
Judge: Hon. Alfredo R Perez
Debtors' Legal Counsel is Timothy A. ("Tad") Davidson II, Esq.,
Ashley L. Harper, Esq., and Philip M. Guffy, Esq., at HUNTON
ANDREWS KURTH LLP, in Houston, Texas.
Debtors' Legal Counsel is George A. Davis, Esq., Hugh Murtagh,
Esq., Tianjiao (TJ) Li, Esq., and Jonathan J. Weichselbaum, Esq.,
at LATHAM & WATKINS LLP, in New York, and Ted A. Dillman, Esq., in
LATHAM & WATKINS LLP, in Los Angeles, California.
Debtors' Investment Banker is HOULIHAN LOKEY CAPITAL, INC.
Debtors' Claims, Noticing & Solicitation Agent is VERITA GLOBAL
(Previously KURTZMAN CARSON CONSULTANTS LLC).
CYTODYN INC: Reports $4.77 Million Net Loss for Second Quarter
--------------------------------------------------------------
CytoDyn Inc. filed its quarterly report on Form 10-Q with the
Securities and Exchange Commission, disclosing a net loss of $4.77
million for the three months ended Nov. 30, 2024, compared to a net
loss of $9.56 million for the three months ended Nov. 30, 2023.
For the six months ended Nov. 30, 2024, the Company reported net
income of $14.46 million, compared to a net loss of $21.13 million
for the six months ended Nov. 30, 2023.
As of Nov. 30, 2024, the Company had $24.88 million in total
assets, $114.27 million in total liabilities, and a total
stockholders' deficit of $89.39 million.
CydoDyn stated that "As presented in the accompanying consolidated
financial statements, the Company had losses for all periods
presented, except for the six months ended November 30, 2024. The
Company has an accumulated deficit of approximately $877.1 million
as of November 30, 2024. These factors, among others...raise
substantial doubt about the Company's ability to continue as a
going concern.
"The Company's continuance as a going concern is dependent upon its
ability to obtain additional operating capital, complete the
development of its product candidate, leronlimab, obtain approval
to commercialize leronlimab from regulatory agencies, continue to
outsource manufacturing of leronlimab, and ultimately generate
revenues and attain profitability. The Company plans to continue
to engage in research and development activities related to
leronlimab and a new or modified longer-acting therapeutic for
multiple indications and expects to incur significant research and
development expenses in the future, primarily related to its
regulatory compliance, including performing additional pre-clinical
and clinical studies in various indications, and seeking regulatory
approval for its product candidate for commercialization. These
research and development activities are subject to significant
risks and uncertainties. The Company intends to finance its future
development activities and its working capital needs primarily from
the sale of equity and debt securities, combined with additional
funding from other sources. However, there can be no assurance
that the Company will be successful in these endeavors."
The full text of the Form 10-Q is available at no cost at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1175680/000155837025000207/cydy-20241130x10q.htm
About CytoDyn
Headquartered in Vancouver, Washington, CytoDyn Inc. --
www.cytodyn.com -- is a clinical stage biotechnology company
focused on the clinical development and potential commercialization
of its product candidate, leronlimab, which is being studied for
oncology and inflammation, as well as other potential indications,
including but not limited to HIV and Metabolic
dysfunction-associated steatohepatitis (MASH).
Hartford, CT-based Marcum LLP, the Company's auditor since 2024,
issued a "going concern" qualification in its report dated Aug. 15,
2024, citing that the Company has a significant working capital
deficiency, has incurred significant losses and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
CYTTA CORP: Posts Net Loss of $4.26 Million in FY Ended Sept. 30
----------------------------------------------------------------
Cytta Corp. filed its Annual Report on Form 10-K with the
Securities and Exchange Commission, reporting a net loss of $4.26
million on revenues of $4,492 for the year ended Sept. 30, 2024.
This compares to a net loss of $4.73 million on revenues of $30,059
for the year ended Sept. 30, 2023.
As of Sept. 30, 2024, the Company had $2.18 million in total
assets, $2.41 million in total liabilities, and a total
stockholders' deficit of $237,444.
Hackensack, New Jersey-based Prager Metis CPAs, LLC, the Company's
auditor since 2020, issued a "going concern" qualification in its
report dated Jan. 14, 2025. The report cites that the Company had
an accumulated deficit of $36,867,892 and has generated losses
since inception. These factors, among others, raise substantial
doubt about the Company's ability to continue as a going concern.
The full text of the Form 10-K is available at no cost at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1383088/000147793225000239/cyca_10k.htm
About Cytta Corp
Cytta Corp., headquartered in Las Vegas, Nevada, has focused on
developing and marketing advanced streaming and integrated
communication products, using technology based upon the SUPR
(Superior Utilization of Processing Resources) video compression
codec/algorithm and its IGAN (Incident Global Area Network)
incident command proprietary software solutions. Cytta currently
develops, markets, and distributes proprietary video streaming
products and services that improve how video is streamed, consumed,
transferred, and stored in enterprise environments.
DR. POWER: Unsecureds to Get Share of Income for 5 Years
--------------------------------------------------------
Dr. Power Washers, Inc., filed with the U.S. Bankruptcy Court for
the Eastern District of Texas a Plan of Reorganization.
Power Washers operates a pressure washing business that specializes
in the cleaning of restaurant kitchen hood exhaust systems over a
multi-state area that covers most of the southern United States. It
has been in business for over 17 years.
Power Washers has filed this bankruptcy with the intent to
reorganize after the covid pandemic negatively affected the health
of the restaurant industry.
Power Washers has debts of approximately $857,789.00.
The Plan provides for reorganization and restructuring of the
Debtor's financial obligations.
Class 5 consists of General Unsecured Creditors. The Debtor will
pay the projected disposable income for sixty months following the
Effective Date to creditors in this class with allowed claims in
the amount set forth on the projections with this plan. Said
amounts will be paid quarterly starting quarterly with the full
calendar quarter after the Effective Date.
Class 6 consists of the holder of Allowed interests in the Debtor.
The holder of an allowed Class 6 interest shall retain their
interest in the Reorganized Debtor.
The Plan provides for a distribution to Creditors in accordance
with the terms of the Plan from the Debtor over the course of five
years from the Debtor's continued business operations.
A full-text copy of the Plan of Reorganization dated January 16,
2025 is available at https://urlcurt.com/u?l=apgDLT from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Gordon Mosley, Esq.
4411 Old Bullard Road, Suite 602
Tyler, TX 75703
Telephone: (903) 534-5396
Facsimile: (903) 581-4038
Email: gmosley@suddenlinkmail.com
About Dr. Power Washers
Dr. Power Washers, Inc., operates a pressure washing business that
specializes in the cleaning of restaurant kitchen hood exhaust
systems over a multi-state area that covers most of the southern
United States.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Texas Case No. 24-60627) on Oct. 14,
2024, listing under $1 million in both assets and liabilities.
Judge Joshua P. Searcy oversees the case.
Gordon Mosley, Esq. represents the Debtor as legal counsel.
DT&T LOGISTICS: Court Extends Use of Cash Collateral Until Feb. 14
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division extended DT&T Logistics Inc.'s authority to use
cash collateral from Jan. 17 to Feb. 14.
The bankruptcy court approved the use of cash collateral to pay the
company's expenses in accordance with its budget and the terms of
the court's previous order entered on Aug. 6, 2024.
The budget shows total projected expenses of $262,000 for a 30-day
period.
A status hearing is set for Feb. 12.
About DT&T Logistics
DT&T Logistics Inc. operates in the trucking industry.
DT&T Logistics filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-08667) on June
12, 2024, with $500,000 to $1 million in assets and $1 million to
$10 million in liabilities. Robert Handler of Commercial Recovery
Associates, LLC serves as Subchapter V trustee.
Judge Deborah L. Thorne handles the case.
The Debtor is represented by:
Saulius Modestas, Esq.
Modestas Law Offices, P.C.
Tel: 312-251-4460
Email: smodestas@modestaslaw.com
DTH 215 VENTURE: Updates Several Secured Claims Pay; Amends Plan
----------------------------------------------------------------
DTH 215 Venture, LLC, submitted a Second Amended Disclosure
Statement describing Second Amended Plan of Reorganization dated
January 17, 2025.
The Plan was strategically crafted to optimize the value of the
Debtor's current assets and to complete construction of the
Debtor's Project as quickly and efficiently as possible to increase
the value of the Project and generate future reoccurring revenue.
The Debtor has also considered the public impact of its Project on
the Henderson community. Debtor is proposing a Plan that will
provide a positive outcome for the community in a relatively short
amount of time while simultaneously enhancing the Project's value.
The Class 1 secured claim of ACRES in the amount allowed by
agreement as part of the DIP Facility (currently estimated by ACRES
at $39,084,737.12) shall be paid as follows: ACRES will retain its
liens as they existed on the Petition Date, except that the
priority of such prepetition liens are modified by the DIP Facility
liens which will be perfected in a senior priority position to
ACRES' Class 1 Claim.
ACRES' Class 1 claim will be modified by agreement between the
Debtor and ACRES (and still subject to finalization of terms) so
that accrued pre-petition interest calculated at the contract non
default rate is expected to be paid as an adequate protection
payment upon closing of the DIP Facility. The Class 1 claim shall
then continue to accrue post-petition pendency and
post-confirmation interest at the current non-default contract rate
under the Construction Loan, with such monthly accrued interest to
be paid to ACRES as adequate protection payments from advances to
the Debtor under the DIP Facility until the Maturity Date.
The Class 3A through Class 3DD allowed secured claims will retain
their lien rights as they existed on the Petition Date and shall be
paid from DIP Facility proceeds on the Closing Date as set forth in
the Settlement Agreement with Gillett. Specifically, the Settlement
Agreement provides that Debtor will pay Gillett the Contractor
Payment of $10,839,222.97 (less a retainage of $234,032.52 subject
to retainage provisions in the Construction Contract) in full
satisfaction of all previous work provided by Gillett and its
subcontractors.
Prior to the Closing Date and subject to payment of the Contractor
Payment from the DIP Facility, Gillett will be responsible for
obtaining from its subcontractors all lien, claim, and lis pendens
releases and dismissals of any litigation against the Debtor and
the Project. Pursuant to the DIP Order and Gillett Settlement
Order, upon payment from the DIP Facility, all Class 3A through 3DD
Claims shall be deemed satisfied and their claims against the
Debtor and Project deemed withdrawn and expunged. Accordingly,
Class 3A through Class 3DD allowed secured claims of mechanic's
lienholders are unimpaired under the Plan.
Like in the prior iteration of the Plan, the Class 4 general
unsecured claims of trade creditors with individual claims of less
than $20,000 each will accrue interest at 4% per annum from the
Petition Date until paid in full. For administrative convenience,
the Debtor shall pay the allowed Class 4 claims in one lump sum
from operating revenues or new loan proceeds on or before March 1,
2026. If the Debtor sells the Project, the Debtor shall pay allowed
Class 4 claims on a prorate basis with Class 5 claims from the net
sale proceeds remaining after payment of all allowed secured and
higher priority claims. Remaining unpaid Class 4 claim amounts, if
any, shall be discharged to the extent allowed under the Bankruptcy
Code.
The Class 5 allowed general unsecured claims will accrue interest
at 4% per annum from the Petition Date until paid in full and shall
be paid by the Debtor in quarterly installments of $200,000
starting January 1, 2027, and continuing on the first day of each
calendar quarter thereafter until paid in full, with each quarterly
payment to be distributed on a pro rata basis among all allowed
Class 5 claims. If the Debtor sells the Project, the Debtor shall
pay allowed Class 5 claims on a prorata basis with Class 4 claims
from the net sale proceeds remaining after payment of all allowed
secured and higher priority claims.
The Debtor intends to fund its Plan and ongoing construction and
business operations from a combination of the DIP Facility, leasing
revenues, permanent financing, and/or sale proceeds.
A full-text copy of the Second Amended Disclosure Statement dated
January 17, 2025 is available at https://urlcurt.com/u?l=Xkuea6
from PacerMonitor.com at no charge.
Attorneys for the Debtor:
Stephen R. Harris, Esq.
Harris Law Practice LLC
850 E. Patriot Blvd., Suite F
Reno, NV 89511
Tel: (775) 786-7600
About DTH 215 Venture, LLC
DTH 215 Venture is the owner of certain real property located at
215 S. Water Street, Henderson, Nevada 89015-7226.
DTH 215 Venture, LLC in Dexter, MO, filed its voluntary petition
for Chapter 11 protection (Bankr. D. Nev. Case No. 24-12829) on
June 5, 2024, listing as much as $50 million to $100 million in
both assets and liabilities. Natalie Riley as authorized agent,
signed the petition.
Judge Natalie M Cox oversees the case.
HARRIS LAW PRACTICE LLC serves as the Debtor's legal counsel.
EMCORE CORP: Narrows Net Loss to $31.24M for FY Ended Sept. 30
--------------------------------------------------------------
EMCORE Corporation filed its Annual Report on Form 10-K with the
Securities and Exchange Commission, disclosing a net loss of $31.24
million on revenue of $85.90 million for the year ended Sept. 30,
2024. This compares to a net loss of $75.36 million on revenue of
97.72 million for the year ended Sept. 30, 2023.
As of Sept. 30, 2024, the Company had $93.91 million in total
assets, $43.75 million in total liabilities, and $50.17 million in
total shareholders' equity.
Melville, New York-based CohnReznick LLP, the Company's auditor
since 2024, issued a "going concern" qualification in its report
dated Jan. 14, 2025. The report cites that the Company has
suffered recurring losses from operations that raise substantial
doubt about its ability to continue as a going concern.
The full text of the Form 10-K is available at no cost at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/808326/000080832625000007/emkr-20240930.htm
EMCORE Corporation
Headquartered in Budd Lake, New Jersey, EMCORE Corporation --
(www.emcore.com -- is a provider of sensors and navigation systems
for the aerospace and defense market. The Company leverages
industry-leading Photonic Integrated Chip ("PIC") and Quartz Micro
Electro-Mechanical System ("QMEMS") chip-level technology to
deliver state-of-the-art component and system-level products across
its end-market applications. Over the last six years, EMCORE has
expanded its scope and portfolio of inertial sensor products
through the acquisitions of Systron Donner Inertial, Inc. in June
2019, the Space and Navigation business of L3Harris Technologies,
Inc. in April 2022, and the Fiber Optic Gyroscope and Inertial
Navigation Systems business of KVH Industries, Inc. in August 2022.
The Company's multi-year transition from a broadband company to an
inertial navigation company has now been completed following the
sales of (i) its cable TV, wireless, sensing and defense
optoelectronics business lines in October 2023 and (ii) its chips
business line and indium phosphide wafer fabrication operations in
April 2024.
EMERGENCY HOSPITAL: Court Extends Use of Cash Collateral to Feb. 3
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas,
Houston Division authorized Emergency Hospital Systems, LLC to use
cash collateral for the period from Jan. 14 to Feb. 3.
The interim order authorized the company to use the cash collateral
only for the purposes and in the amounts set forth in its budget.
Pre-bankruptcy lenders, including RDFCB Acquisition, LLC, were
granted replacement liens on the company's property, with the same
validity and priority as their pre-bankruptcy liens.
As additional protection, the court approved the payment of
$26,666.67 to RDFCB on Jan. 21 and 28, and on Feb. 4. The court
also ordered Emergency Hospital Systems to maintain insurance on
its property, including the pre-bankruptcy collateral of RDFCB.
The next hearing is set for Feb. 3.
About Emergency Hospital Systems
Emergency Hospital Systems LLC, doing business as Cleveland
Emergency Hospital, is a system of regional hospitals serving the
communities of The Woodlands, Porter, and Deerbrook, Cleveland.
These facilities support each other with respect to the services
they provide and are united under a common objective to provide
quality healthcare professionally and compassionately.
Emergency Hospital Systems sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Texas Case No. 24-34683) on
October 3, 2024, with $10 million to $50 million in both assets and
liabilities. Rafael Delaflor, operating officer, signed the
petition.
Judge Eduardo V. Rodriguez oversees the case.
The Debtor is represented by:
Kenna M Seiler
Attorney At Law
Tel: 281-419-7770
Email: kseiler@srg-law.com
Megan Bibb Rapp
Kean Miller LLP
Tel: 832-494-1711
Email: megan.rapp@keanmiller.com
EMINIFX INC: Receiver Returns $100MM to Ponzi Scheme Victims
------------------------------------------------------------
Federal Judge Valerie Caproni in New York on Jan. 21 approved the
EminiFX receiver's distribution plan that would partially refund
the losses of the roughly 35,000 investors in the Ponzi scheme run
by EminiFX founder Eddy Alexandre.
Otterbourg partner David Castleman, the court-appointed receiver of
the purported cryptocurrency and foreign exchange trading platform,
one of the largest Ponzi schemes in the last few years as well as
one of the top recoveries, will make an initial distribution of
$100 million to investors, who were promised weekly investment
returns of at least 5%.
The average initial distribution for the EminiFX investors, most of
whom are from the Haitian community, is roughly $3,000, reflecting
a 45% recovery for investors who invested more than $1,000.
Additional distributions may be made over the following years as
funds are released from reserves. This is welcome news for a
community that's been hard hit. In fact, an estimated 1%-3% of the
Haitian population in the United States are claimants, following
investments that were made in late 2021 and early 2022.
EminiFX founder Eddy Alexandre is currently serving a nine-year
prison sentence for the fraud he committed.
In his email to investors, the receiver noted that, "My total
budget for the first distribution is $100 million. This
distribution is the majority of the assets currently in the
Receivership, and those funds are going to investors in EminiFX as
a partial refund of their investments. Because you have a verified
claim as an EminiFX investor, you will be receiving a share of this
amount, using the above calculation. I have listened to the
feedback we have received from EminiFX investors. I want all
investors to know -- regardless of what they may have heard -- that
returning money to EminiFX investors is the primary goal of our
entire team and of this Receivership."
Commodity Futures Trading Commission sued Eddy Alexandre and
EminiFX, Inc. in 2022, alleging the company operated as a Ponzi
scheme. The Court appointed David Castleman as equity receiver to
oversee "all customer funds and property and other assets traceable
to customers in the possession of or under the control of Eddy
Alexandre.”
In her order dated Jan. 21, Judge Caproni approved the receiver's
proposal to use the Rising Tide method of distribution. The Rising
Tide method treats any pre-Receivership withdrawals as the
equivalent of Receivership distributions. That is, if any of the
money an investor contributed to their EminiFX account made its way
back to them, it is treated as recovered; it makes no difference
whether the money is returned due to a payout from the Receiver or
a voluntary withdrawal the investor made from their account at some
point before the Receivership was established.
The case is, COMMODITY FUTURES TRADING COMMISSION, Plaintiff,
-against- EDDY ALEXANDRE, EMINIFX, INC., Defendants, 22-CV-3822
(VEC)(S.D.N.Y.).
ENDI PLAZA: Lender Seeks to Prohibit Cash Collateral Access
-----------------------------------------------------------
Creditor Fannie Mae asked the U.S. Bankruptcy Court for the
Southern District of New York to prohibit Endi Plaza LLC from using
cash collateral.
The cash collateral consists of the rents generated from an
apartment complex commonly known as ENDI Apartments that is subject
to a mortgage in favor of Fannie Mae.
The Debtor admitted that it is a special purpose entity created
only for the purpose of owning and operating the ENDI Apartments.
The Creditor asserted that this case is only the latest in a series
of questionable strategies the Debtor has employed to delay and
frustrate Fannie Mae's enforcement of its rights to these assets.
The Rents are not the Debtor's property and thus cannot be used as
cash collateral. Additionally, the Debtors have failed to establish
or even seek approval for the use of any other collateral, and
Fannie Mae does not and will not agree to any such use.
Prior to the Petition Date, the Debtor executed and delivered to
Greystone Servicing Company LLC, a Multifamily Note in the original
principal amount of $51.8 million.
On March 31, 2023, Greystone executed an Assignment of Collateral
Agreements and Other Loan Documents. Pursuant to the Assignment,
Greystone assigned its interest in the Loan Documents and related
documents executed in connection with the Loan to Fannie Mae.
Fannie Mae perfected its security interest in the Personal Property
by causing a UCC-1 Financing Statement to be filed with the
Minnesota Secretary of State on April 3, 2023, file number
1384401900748.
The Debtor is in default if it does not make payments when due
under the Note, the Loan Agreement, or any other Loan Documents.
In several letters, Fannie Mae notified the Debtor that it remained
in default, that Fannie Mae exercised its right to accelerate the
indebtedness and demanded immediate payment in full, that the
Debtor's license to collect the Rents was revoked and terminated,
and that Fannie Mae was entitled to all Rents.
The Debtor failed to pay the principal balance of the Loan, accrued
interest, and all other indebtedness due and owing pursuant to the
Loan Documents following delivery of the Payment Default Notice,
the Acceleration Notice, and the Transfer Default Notice. The
Debtor also refused to turn over any Rents despite Fannie Mae's
three demands and the plain language expressly stated in the
Mortgage.
As of January 16, 2025, the Debtor was indebted to Fannie Mae
pursuant to the Loan Documents in the amount of $55.2 million.
Fannie Mae believes the Debtor has improperly used the Rents from
and after the Commencement Date without any legal entitlement,
Fannie Mae's consent, or any Court approval. Moreover, the Debtor
has failed to turn over Rents as requested by Fannie Mae multiple
times.
Fannie Mae, as creditor, is represented by:
Kieran M. Corcoran, Esq
100 Wall Street, Suite 201
New York, NY 10005
Phone: (646) 883-7471
Email:kieran.corcoran@stinson.com
and
Nicholas Zluticky, Esq
1201 Walnut, Suite 2900
Kansas City, MO 64106
Phone: (816) 842-8600
Fax: (816) 691-3495
Email: nicholas.zluticky@stinson.com
A copy of the motion is available at https://urlcurt.com/u?l=8171SP
from PacerMonitor.com.
About Endi Plaza LLC
Endi Plaza LLC owns a mixed used residential apartment and
commercial complex located at 2120 London Road, Duluth, Minnesota,
known as "Endi Apartments" containing 142 apartments and 13,876
square feet of retail space and relating parking.
Endi Plaza LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-23068) on December 9,
2024. In the petition filed by Josh Steiner, as restructuring
officer, the Debtor reports estimated assets and liabilities
between $50 million and $100 million each.
Honorable Bankruptcy Judge Sean H. Lane handles the case.
The Debtor is represented by Kevin Nash,Esq. at Goldberg Weprin
Finkel Goldstein LLP.
ENTECCO FILTER: Creditors to Get Proceeds From Liquidation
----------------------------------------------------------
Entecco Filter Technology, Inc. filed with the U.S. Bankruptcy
Court for the Middle District of North Carolina a Disclosure
Statement describing Chapter 11 Plan dated January 17, 2025.
The Debtor is an environmental technology company that specializes
in air purification and manufactures highly effective and efficient
filter products, using them to create turnkey systems for dust
removal, exhaust gas purification, and ventilation in virtually
every industry.
The Debtor intends to fund the Plan with (i) the Available Cash
from a Court-approved Sale of its business as a going concern; and
(ii) any other assets of the Debtor that are not sold as part of
the Sale, including but not limited to the Chapter 5 Actions
(collectively, the "Distribution Assets").
The Debtor is in the process of employing an appraiser to value the
Debtor's physical assets. When such appraisal is available, the
Debtor intends to supplement and/or amend this Disclosure Statement
to provide a liquidation analysis that will show the funds the
Debtor submits would be available for distribution to creditors in
a hypothetical Chapter 7 liquidation. The Debtor posits that a Sale
of its business as a going concern will generate more funds than
would be distributed to creditors in a hypothetical Chapter 7
liquidation.
As the Plan primarily relies on the liquidation of the Debtor's
assets, the Debtor believes that the Debtor will be able to meet
its obligations under the Plan.
Class 4 is comprised of Allowed General Unsecured Claims and
deficiency Claims scheduled or as otherwise approved by the Court.
At this time, the Schedules include General Unsecured Claims in the
amount of $3,618,324.84 (for which no Proof of Claim has yet been
filed). At this time, Creditors have filed Proofs of Claim for
General Unsecured Claims in the amount of $7,225,816.64. The Debtor
intends to object to many of these Claims. Additionally, the
deadline for filing Claims has not yet passed. Accordingly, the
Debtor is unable to provide an accurate estimate of the total
amount of General Unsecured Claims at this time.
Each Holder of a Class 4 Claim shall be paid, in full and final
satisfaction of such Claim, a Pro Rata share of the Remaining
Available Cash and any other assets of the Debtor that are not sold
as part of the Sale, including but not limited to the Chapter 5
Actions. No Class 4 Claim shall be entitled to any interest. Class
4 Claims are impaired under the Plan.
The Class 5 Interests shall be cancelled and extinguished as of the
Effective Date of the Plan, and the holders of such Interests shall
receive no distribution or recovery under the Plan unless all
Allowed Claims are paid in full. All proceeds from the Sale of the
Debtor's business shall be used to satisfy Claims of Creditors and
Holders of Claims in accordance with the treatment provisions of
this Plan.
The Debtor shall fund the Plan with (i) the Available Cash from the
Court-approved Sale of its business as a going concern; and (ii)
any other assets of the Debtor that are not sold as part of the
Sale, including but not limited to the Chapter 5 Actions
(collectively, the "Distribution Assets"). In the event that the
Distribution Assets are not fully liquidated as of the Effective
Date of the Plan, the Liquidating Debtor (or the Committee in the
case of Chapter 5 Actions and other causes of action) shall
liquidate such assets as soon as reasonably practicable after the
Effective Date of the Plan.
A full-text copy of the Disclosure Statement dated January 17, 2025
is available at https://urlcurt.com/u?l=HYOYgi from
PacerMonitor.com at no charge.
Bankruptcy Counsel for the Debtor:
Jennifer B. Lyday, Esq.
James Lanik, Esq.
Kylie Hamilton, Esq.
WALDREP WALL BABCOCK & BAILEY PLLC
3600 Glenwood, Suite 210
Raleigh, NC 27612
Telephone: (919) 589-7985
Email: notice@waldrepwall.com
About Entecco Filter Technology
Entecco Filter Technology, Inc., is a Delaware-based environmental
technology company, specializing in air purification systems and
filter products used in various industries.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D.N.C. Case No. 24-50707) with $1 million
to $10 million in both assets and liabilities. James David
Edgerton, president and chief executive officer, signed the
petition.
James C. Lanik, Esq., at Waldrep Wall Babcock & Bailey, PLLC,
serves as the Debtor's legal counsel.
ENVIROSCENT INC: U.S. Trustee Unable to Appoint Committee
---------------------------------------------------------
The U.S. Trustee for Region 21 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Enviroscent Inc.
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
EXPLORE KNOWLEDGE: S&P Lowers Revenue Bonds LT Rating to 'BB'
-------------------------------------------------------------
S&P Global Ratings lowered its long-term rating to 'BB' from 'BB+'
on the Public Finance Authority, Wis.' series 2012 school revenue
bonds, issued for Explore Knowledge Foundation, Nev. The outlook is
stable.
"The rating action reflects our view of the school's trend of
enrollment declines and weak financial performance in fiscal 2024,
which has led to less than 1x lease-adjusted maximum annual debt
service coverage and softened liquidity," said S&P Global Ratings
credit analyst John Miceli. "We expect financial results to improve
in fiscal 2025, with at least balanced operating results and
stronger coverage," Mr. Miceli added.
S&P said, "The stable outlook reflects our opinion that during the
outlook period, the school will work toward stabilizing enrollment,
generate balanced operating results on a full-accrual basis, and
sustain its cash position in line with the rating given the
school's limited plans to spend down cash and expectations to
return to at least break-even operations."
FILTERX LLC: Seeks to Use Cash Collateral Until Feb. 21
-------------------------------------------------------
Filterx LLC asked the U.S. Bankruptcy Court for the Middle District
of Tennessee for authority to use cash collateral and provide
adequate protection through February 21.
Based on its review of the UCC-1 financing statements of record
with the Tennessee Secretary of State, it is believed that at least
one party may assert an interest in the Debtor's cash collateral.
On June 28, 2020, a UCC-1 financing statement, Document No.
432772726, was filed in favor of the U.S. Small Business
Administration, asserting a blanket lien on all of the Debtor's
assets for a stated maximum indebtedness of $0.00. The outstanding
balance of obligation underlying this financing statement is
believed to be $47,800.
On April 3, 2023, a UCC-1 financing statement, Document No.
438245383, was filed in favor of Sumner Bank & Trust, asserting a
lien against specifically identified equipment, accounts
receivable, inventory, general intangibles, and contracts. The
financing statement has a stated maximum indebtedness of $321,645.
By way of merger, Sumner Bank and Trust later became Edmondton
State Bank. The outstanding balance of obligation underlying this
financing statement is believed to be $277,633.
On December 30, 2024, a UCC-1 financing statement, Document No.
441318565, was filed in favor of Daryl Holt asserting a lien
against all equipment, furniture and fixtures, accounts
receivables, inventory, general intangibles, contracts, and Founder
Class A Membership Interest Units converted to Investor Class B
Member Units valued at $100 per Membership Unit, divided by the
principal balance and the accrued interest owing on the note. The
financing statement has a stated maximum indebtedness of $0.
On January 6, 2025, a UCC-1 financing statement, Document No.
441350118, was filed in favor of Steve Fann, asserting a lien
against all equipment, furniture and fixtures, accounts
receivables, inventory, general intangibles, contracts, and Founder
Class A Membership Interest Units converted to Investor Class B
Member Units valued at $100 dollars per Membership Unit, divided by
the principal balance and the accrued interest owing on the note.
The financing statement has a stated maximum indebtedness of $0.
The Debtor disputes that Daryl Holt or Steve Fann have any lien on
cash collateral. The Debtor is not aware of any security agreement
between it and Daryl Holt or Steve Fann.
As for adequate protection, the Cash Collateral Lienholders will be
granted a replacement lien in accordance with 11 U.S.C. sections
361(2) and 552(b) against future receivables, plus the required
positive balance maintained in the DIP Account, to the same extent
and in the same order of priority as existed under applicable law
as of the Petition Date. Any such replacement lien will be to the
same extent and with the same validity and priority as the Cash
Collateral Lienholder's pre-petition lien, without the need to file
or execute any document as may otherwise be required under
applicable non-bankruptcy law.
A copy of the motion is available at https://urlcurt.com/u?l=JW1huy
from PacerMonitor.com.
About Filterx LLC
Filterx LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Tenn. Case No. 3:25-bk-00186) on
January 16, 2025. In the petition signed by Harry Hoover, managing
member, the Debtor disclosed up to $1 million in both assets and
liabilities.
Judge Nancy B. King oversees the case.
Henry E. Hildebrand, IV, Esq., at Dunham Hildebrand Payne Waldron,
PLLC, represents the Debtor as legal counsel.
FLYWHEEL ADVANCED: Reports Net Loss of $710K for FY 2024
--------------------------------------------------------
Flywheel Advanced Technology, Inc., reported a net loss of $710,088
on net revenue of $0 for the year ended Sept. 30, 2024, compared to
a net loss of $1.08 million on net revenue of $0 for the year ended
Sept. 30, 2023, according to its Annual Report on Form 10-K filed
with the Securities and Exchange Commission.
As of Sept. 30, 2024, the Company had $5.43 million in total
assets, $824,253 in total liabilities, and $4.60 million in total
stockholders' equity.
Irvine, CA-based BCRG Group, the Company's auditor since 2024,
issued a "going concern" qualification in its report dated Jan. 14,
2025. The report highlights that the Company's significant
operating losses raise substantial doubt about its ability to
continue as a going concern.
The full text of the Form 10-K is available at no cost at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1492617/000149315225002097/form10-k.htm
About Flywheel Advanced
Headquartered in Carson City, NV, Flywheel Advanced Technology,
Inc. (formerly known as Pan Global Corp.) and its subsidiaries were
formed to provide Internet of Things ("IoT") solutions and services
to assist its clients to build applications using available IoT
devices, sensors, frameworks, and platforms; integrate hardware and
software solutions with clients existing landscape; or implement
new IoT solutions for enterprises.
FOCUS FINANCIAL: S&P Downgrades ICR to 'B', Outlook Stable
----------------------------------------------------------
S&P Global Ratings lowered its rating on Focus Financial Partners
Inc. (Focus) to 'B' from 'B+'. At the same time, S&P lowered its
rating on the company's secured debt to 'B' from 'B+'. S&P's
recovery rating on the company's secured debt remains '3',
indicating its expectation for a meaningful (50%) recovery in a
simulated default scenario.
The outlook is stable, indicating S&P's expectation that Focus will
operate with weighted average adjusted debt to adjusted EBITDA of
6x-8x during the next 12 months, per S&P's calculations, while
continuing to acquire wealth managers and the full economics of
current partner firms.
Focus's proposed debt issuance brings gross reported debt to $4.85
billion, and raises S&P-adjusted debt to EBITDA to 7.6x over the 12
months ended Sept. 30, 2024, on a pro forma basis.
S&P expects proceeds will be used to fund an $816 million
distribution to shareholders. This follows a $547 million
debt-funded distribution to shareholders in August 2024.
Over half of management-adjusted EBITDA is attributable to partner
firms in which Focus has bought out full economic ownership (pro
forma for buyouts closed through December 2024). The company uses
equity as a significant component of management agreement buyout
considerations, lowering upfront cash outlay and aligning interest
between Focus and partner firms. S&P believes that the benefit of
using equity consideration is negated somewhat by the debt-funded
distributions to shareholders.
S&P said, "While Focus's business is highly cash flow generative
and could lower leverage quickly, we anticipate that the company
will continue to issue debt to acquire RIAs or fund distributions
to its shareholders. As such, we expect S&P-adjusted debt to EBITDA
to be 6x-8x and EBITDA interest coverage at 2x-3x, excluding
management agreement buyout expense. We expect leverage including
the cash portion of buyout expense to be higher and more variable
given the lumpy nature of the buyouts, at 8x-10x as calculated by
S&P over the next 12 months.
"We continue to view Focus as stronger than RIA aggregator peers
like Hightower and Mariner Wealth, both of which operate with
weaker credit metrics. Focus operates with greater scale and has
the opportunity to acquire EBITDA from partner firms at attractive
cash multiples. However, we expect the three firms to compete for
similar external RIA acquisitions.
"We view Focus as in line with Edelman Financial, which operates
with similar credit metrics. Edelman is smaller by assets under
advisement and EBITDA (excluding Focus's management agreement
buyout expense), but also less acquisitive, and has a strong market
position in managed accounts in addition to retail wealth
management.
"In our view, Focus has adequate liquidity sources to cover modest
liquidity needs in the next 12 months. Principal liquidity sources
include cash on the balance sheet, the unused portion of the $925
million revolving credit facility (undrawn as of Dec. 31, 2024),
and adjusted cash flow from operations. Principal liquidity uses
include discretionary capital deployment for acquisitions,
contingent and deferred payments, minimal capital expenditures, and
term loan amortization.
"The stable outlook indicates S&P Global Ratings' expectation that
Focus will operate with weighted average adjusted debt to EBITDA of
6x-8x during the next 12 months while continuing to acquire wealth
managers and the full economics of current partner firms. We expect
buyouts and other strategic initiatives aimed at centralizing
operations to improve Focus' operating efficiency.
"We could lower the ratings if Focus operates with adjusted debt to
EBITDA above 8x or adjusted EBITDA interest coverage below 2x on a
sustained basis, per our calculations. This could occur if the
company incurs significant one-time costs from its strategic
changes, growth strains margins, or if Focus issues further debt
without commensurate earnings growth. We could also lower the
ratings if we view Focus's competitive advantage as weakening
compared with those of wealth management peers."
Although unlikely over the 12 months rating period, we could raise
the ratings in the longer term if the company operates with S&P
Global Ratings-adjusted debt to EBITDA comfortably below 5x on a
sustained basis while the business continues to grow.
FREE SPEECH: Jones Disputes Sandy Hook Families' Bankruptcy Deal
----------------------------------------------------------------
Randi Love of Bloomberg Law reports that right-wing conspiracy
theorist Alex Jones criticized a proposed settlement between
families of Sandy Hook Elementary School shooting victims and his
bankruptcy trustee as "pure codswallop," alleging it is intended to
block his appeal of the families' substantial court judgment.
Bankruptcy trustee Chris Murray proposed a settlement to allocate
proceeds from the liquidation of Jones' assets among the families.
However, Jones argued in a court filing on Tuesday, January 21,
2025, that the agreement's primary goal is to halt his challenge of
a Connecticut state court ruling awarding nearly $1 billion to the
families, leaving the judgment unexamined.
About Free Speech Systems
Free Speech Systems LLC is a broadcast media production and
distribution company that provides broadcasting aural programs by
radio to the public. Free Speech Systems is a family-run business
founded by Alex Jones.
FSS is presently engaged in the business of producing and
syndicating Jones' radio and video talk shows and selling products
targeted to Jones' loyal fan base via the Internet. Today, FSS
produces Alex Jones' syndicated news/talk show (The Alex Jones
Show) from Austin, Texas, which airs via the Genesis Communications
Network on over 100 radio stations across the United States and via
the internet through websites including Infowars.com.
Due to the content of Alex Jones' shows, Jones and FSS have faced
an all-out ban of Infowars from mainstream online spaces. Shunning
from financial institutions and banning Jones and FSS from major
tech companies began in 2018.
Conspiracy theorist Alex Jones has been sued by victims' family
members over Jones' lies that the 2012 Sandy Hook Elementary School
shooting was a hoax.
Jones' InfoW LLC and affiliates, IWHealth, LLC and Prison Planet
TV, LLC, filed petitions under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 22-60020) on April
18, 2022.
FREE SPEECH: Jones Urges Connecticut Justices to Review Hook Case
-----------------------------------------------------------------
Aaron Keller of Law360 Bankruptcy Authority reports that Infowars
host Alex Jones has appealed to Connecticut's highest court to
review a $1.44 billion judgment for labeling the Sandy Hook school
massacre a "hoax."
He argues that the trial judge violated both state and federal
constitutions by bypassing causation, proceeding directly to a
default liability judgment, and imposing damages without sufficient
evidence, the report states.
About Free Speech Systems
Free Speech Systems LLC is a broadcast media production and
distribution company that provides broadcasting aural programs by
radio to the public. Free Speech Systems is a family-run business
founded by Alex Jones.
FSS is presently engaged in the business of producing and
syndicating Jones' radio and video talk shows and selling products
targeted to Jones' loyal fan base via the Internet. Today, FSS
produces Alex Jones' syndicated news/talk show (The Alex Jones
Show) from Austin, Texas, which airs via the Genesis Communications
Network on over 100 radio stations across the United States and via
the internet through websites including Infowars.com.
Due to the content of Alex Jones' shows, Jones and FSS have faced
an all-out ban of Infowars from mainstream online spaces. Shunning
from financial institutions and banning Jones and FSS from major
tech companies began in 2018.
Conspiracy theorist Alex Jones has been sued by victims' family
members over Jones' lies that the 2012 Sandy Hook Elementary School
shooting was a hoax.
Jones' InfoW LLC and affiliates, IWHealth, LLC and Prison Planet
TV, LLC, filed petitions under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 22-60020) on April
18, 2022.
FUEL FITNESS: Gets Interim OK to Use Cash Collateral Until Feb. 21
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of North
Carolina, Raleigh Division, extended Fuel Fitness, LLC's authority
to use cash collateral to fund its operations.
The interim order authorized the company to use cash collateral for
the period from Jan. 22 to Feb. 21 pursuant to its monthly budget,
with a 10% variance.
The budget shows total projected expenses of $67,338 for the
interim period.
Live Oak Banking Company and all other lien creditors were granted
a continuing post-petition security interest in and lien on all
personal property of the company to the same extent and with the
same priority as their pre-bankruptcy liens.
As additional protection, Live Oak Banking Company will receive
payment of $5,000 on or before Feb. 15.
The next hearing is set for Feb. 11.
Live Oak Banking can be reached through its counsel:
William Walt Pettit, Esq.
Hutchens Law Firm
6230 Fairview Road, Suite 315
Charlotte, NC 28210
Phone: (704) 362-9255
walt.pettit@hutchenslawfirm.com
About Fuel Fitness
Fuel Fitness, LLC, a company in Raleigh, N.C., filed a petition
under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr.
E.D.N.C. Case No. 24-03698) on Oct. 22, 2024, with up to $100,000
in assets and up to $10 million in liabilities. Christopher Shawn
Stewart, member-manager, signed the petition.
Judge Joseph N. Callaway oversees the case.
The Debtor is represented by:
Philip Sasser
Sasser Law Firm
Tel: 919-319-7400
Email: philip@sasserbankruptcy.com
FUEL HOMESTEAD: Gets OK to Use Cash Collateral Until Feb. 21
------------------------------------------------------------
Fuel Homestead, LLC received third interim approval from the U.S.
Bankruptcy Court for the Eastern District of North Carolina, to use
cash collateral.
The third interim order authorized the company to use cash
collateral for operational expenses from Jan. 22 to Feb. 21, 2025,
with a 10% variance.
The budget shows total projected expenses of $92,940 for the
period.
Live Oak Banking Company and all other secured creditors were
granted a continuing post-petition security interest in and lien on
all personal property of the company to the same extent and with
the same priority as their pre-bankruptcy liens.
As additional protection, Live Oak Banking Company will receive
payment in the amount of $5,000 on or before Feb. 15.
The next hearing is set for Feb. 11.
Live Oak Banking Company can be reached through its counsel:
William Walt Pettit, Esq.
Hutchens Law Firm
6230 Fairview Road, Suite 315
Charlotte, NC 28210
(704) 362-9255
walt.pettit@hutchenslawfirm.com
About Fuel Homestead
Fuel Homestead, LLC, a company in Raleigh, N.C., sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. N.C. Case
No. 24-03699) on October 22, 2024, with up to $100,000 in assets
and up to $10 million in liabilities. Christopher Shawn Stewart,
member-manager, signed the petition.
Judge Joseph N. Callaway oversees the case.
The Debtor is represented by:
Philip Sasser, Esq.
Sasser Law Firm
Tel: 919-319-7400
Email: philip@sasserbankruptcy.com
FUEL REYNOLDA: Gets Interim OK to Use Cash Collateral Until Feb. 21
-------------------------------------------------------------------
Fuel Reynolda, LLC received a 30-day extension from the U.S.
Bankruptcy Court for the Eastern District of North Carolina,
Raleigh Division, to use cash collateral to fund its operations.
The interim order authorized the company to use cash collateral for
the period from Jan. 22 to Feb. 21 pursuant to its monthly budget,
with a 10% variance.
The budget shows total projected expenses of $84,445 for the
interim period.
Live Oak Banking Company and all other lien creditors were granted
a continuing post-petition security interest in and lien on all
personal property of the company to the same extent and with the
same priority as their pre-bankruptcy liens.
As additional protection, Live Oak Banking Company will receive
payment of $5,000 on or before Feb. 15.
The next hearing is set for Feb. 11.
Live Oak Banking Company can be reached through its counsel:
William Walt Pettit, Esq.
Hutchens Law Firm
6230 Fairview Road, Suite 315
Charlotte, NC 28210
(704) 362-9255
walt.pettit@hutchenslawfirm.com
About Fuel Reynolda
Fuel Reynolda, LLC -- https://fuelfitnessclubs.com/about/ -- doing
business as Fuel Fitness, is a fitness center that offers the best
free weights, strength training/cardio equipment, group fitness
classes, personal training, childcare, recovery studio and smoothie
bar.
Fuel Reynolda sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 24-03700) on October
22, 2024, with $100,000 to $500,000 in assets and $1 million to $10
million in liabilities. Christopher Shawn Stewart, member-manager,
signed the petition.
Judge Joseph N. Callaway oversees the case.
The Debtor is represented by:
Philip Sasser
Sasser Law Firm
Tel: 919-319-7400
Email: philip@sasserbankruptcy.com
FUNDIMENSION LLC: Gets OK to Use Cash Collateral Until March 5
--------------------------------------------------------------
Fundimension, LLC received interim approval from the U.S.
Bankruptcy Court for the Southern District of Florida to use cash
collateral until March 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. 9 only.
The second interim order signed by Judge Corali Lopez-Castro
authorized the company to use cash collateral to pay post-petition
expenses set forth in its budget, with a 10% variance.
Fundimension was ordered to make monthly payments of $2,659.30 to
West Town Bank & Trust Company and $4,792.13 to LEAF Capital
Funding, LLC as adequate protection.
In addition, West Town will be granted a replacement lien on
Fundimension's post-petition cash collateral, including accounts
receivable, to the extent of any post-petition usage of cash
collateral during the interim period and to the same extent,
validity, and priority as its pre-bankruptcy lien.
A final hearing is scheduled for March 5.
West Town Bank & Trust Company can be reached through its counsel:
Lauren M. Reynolds, Esq.
Winderweedle, Haines, Ward & Woodman, P.A.
329 North Park Avenue, Second Floor
Winter Park, FL 32789
P.O. Box 880
Winter Park, FL 32790-0880
Phone: (407) 423-4246
Fax: (407) 645-3728
Email: Lreynolds@whww.com
About FunDimension LLC
FunDimension LLC offers a wide range of attractions including
arcade games, laser tag, bumper cars, duckpin bowling, rock
climbing, virtual reality, and an e-gaming.
FunDimension sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. S.D. Fla. Case No. 24-20351) on October 4, 2024, with
total assets of $514,619 and total liabilities of $1,773,782. Joyce
Alarcon-Frohman, managing partner, signed the petition.
Judge Corali Lopez-Castro oversees the case.
The Debtor is represented by:
Chad Van Horn, Esq.
Van Horn Law Group, P.A.
500 NE 4th Street, Suite 200
Fort Lauderdale, FL 33301
Tel: (954) 765-3166
Email: chad@cvhlawgroup.com
GAMECHEST LLC: Case Summary & Six Unsecured Creditors
-----------------------------------------------------
Debtor: Gamechest, LLC
7306 Overland Park Blvd
Jacksonville, FL 32244
Chapter 11 Petition Date: January 23, 2025
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 25-00215
Judge: Hon. Jacob A Brown
Debtor's Counsel: Thomas Adam, Esq.
ADAM LAW GROUP, PA
2258 Riverside Ave
Jacksonville, FL 32204
E-mail: tadam@adamlawgroup.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Hoanglong Ly as member.
A full-text copy of the petition, which includes a list of the
Debtor's six unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/D4XNS3Y/Gamechest_LLC__flmbke-25-00215__0001.0.pdf?mcid=tGE4TAMA
GENERATIONS ON 1ST: Gets OK to Use Cash Collateral Until Jan. 27
----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of North Dakota granted
Generations on 1st, LLC and Parkside Place, LLC interim
authorization to use cash collateral to pay operating expenses.
The interim order authorized each company to use up to $1,500 in
cash deposited in its accounts from Jan. 6 to 27 in accordance with
the budget.
A final hearing is set for Jan. 28.
About Generations on 1st and Parkside Place
Generations on 1st, LLC, a company in Fargo, N.D., and its
affiliate Parkside Place, LLC filed Chapter 11 petitions (Bankr. D.
N.D. Lead Case No. 25-30002) on January 6, 2025. In their
petitions, Generations on 1st reported total assets of $13,567,037
and total liabilities of $12,137,102 while Parkside Place reported
$7,221,882 in assets and $5,599,522 in liabilities.
Judge Shon Hastings handles the cases.
The Debtors are represented by:
Maurice VerStandig, Esq.
The Dakota Bankruptcy Firm
1630 1st Avenue N, Suite B PMB 24
Fargo, ND 58102-4246
Tel: 701-394-3215
Email: mac@dakotabankruptcy.com
GREEN ENERGY: To Sell 642-Acre Land to Kirk Surry and Kirk Trust
----------------------------------------------------------------
Green Energy Partners LLC seeks permission from the U.S. Bankruptcy
Court for the Eastern District of Virginia, Richmond Division, to
sell its Property.
The Debtor is a real estate development limited liability company
focused on creating carbon free data centers using small modular
nuclear reactors and generating hydrogen for carbon free hydrogen
combustion engines.
The Debtor entered into a Sales Contract with Kirk Surry LLC and
Kirk Trust Properties LLC for the purchase of 642 acres of
unimproved land in Surry County, Virginia for an original purchase
price of $12,000,000.
The Debtor's Property is subject to easements in favor of Dominion
Energy for two sets of high-voltage electric transmission lines,
and an easement for a 32-inch natural gas pipeline owned by TC
Energy. The Property is located adjacent to the Dominion Energy
nuclear energy.
The contract terms permitted the Debtor to rezone the Property for
data centers, small nuclear reactors, and hydrogen production and
since the ratification of the contract on September 2, 2022, GEP
has expended approximately $2,750,000 in furtherance of its
rezoning application and the evaluation of the legal and
engineering elements necessary to construct a data center and small
nuclear reactors campus for the production of hydrogen.
The Assignor entered into a settlement agreement with certain
parties to the Cobham Bay Case which appealed the zoning approval
and agreed to pursue the rezoning of the 248 acres of land adjacent
(AA) adjacent to the Property and upon the successful completion of
such rezoning, purchase the property.
The Cobham Settlement has resolved the appeal to the rezoning
approval on conditions that an easement and restrictive convent be
recorded among the land records at closing on the Real Property and
certain obligations for the Debtor to file rezoning application of
the adjacent property to the emerging technologies district.
The Debtor executes an Assignment and Assumption Agreement in which
the Debtor, as Assignor, and Surry Green Energy Center LLC as
Assignee. From the proceeds of the $25,000,000 initial payment in
the AA, approximately $16,000,000 will be used to complete the
purchase of the unimproved land, and the remaining funds will be
first be used to satisfy the creditors of the Debtor, and pay the
U.S. Trustee fees.
The Debtor submits that the AA is justified by sound business
reasons and is in the best interest of the Debtor and its estate.
About Green Energy Partners LLC
Green Energy Partners LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. Va. Case No. 24-33634) on Sept.
29, 2024. In the petition filed by Mark E. Andrews, as manager, the
Debtor estimated assets between $10 million and $50 million and
estimated liabilities between $1 million and $10 million.
The Debtor is represented by James P. Campbell, Esq., at Campbell
Flannery, P.C.
H & H RENTAL: Files Emergency Bid to Use Cash Collateral
--------------------------------------------------------
H & H Rental Broker, Inc. asked the U.S. Bankruptcy Court for the
Eastern District of North Carolina, Raleigh Division, for authority
to use cash collateral for its operations.
The Debtor has found a recorded assignment of leases and rents in
favor of MMG Investments, VI, LLC and BB&T.
The Debtor believes that it will likely collect future rents that
will constitute post-petition cash collateral of these lenders and
that the lenders are adequately protected by the fair market value
of the real property subject to the lender's lien without the need
for further encumbrance of the Debtor's cash.
A court hearing is scheduled for Jan. 27.
A copy of the motion is available at https://urlcurt.com/u?l=sE9qcJ
from PacerMonitor.com.
About H & H Rental Broker, Inc.
H & H Rental Broker, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. N.C. Case No. 25-00105-5) on
January 9, 2025. In the petition signed by Tonya Hanks, president,
the Debtor disclosed up to $1 million in assets and up to $50,000
in liabilities.
JM Cook, Esq., at J.M. Cook, P.A., represents the Debtor as legal
counsel.
HEALTHLYNKED CORP: Names Jeremy Daniel as Chief Financial Officer
-----------------------------------------------------------------
HealthLynked Corp. (OTCQB: HLYK) announced the appointment of
Jeremy Daniel as its new Chief Financial Officer, effective
immediately. With an impressive career spanning over two decades,
Mr. Daniel brings exceptional expertise in financial management,
strategic planning, and organizational development.
As CFO, Jeremy will oversee HealthLynked's financial strategy and
operations, driving growth, operational efficiency, and shareholder
value. His appointment underscores HealthLynked's commitment to
strengthening its executive leadership as the company continues to
innovate and expand its healthcare technology solutions. The
Company and Mr. Daniel have agreed that Mr. Daniel will work two
days per week and his base salary will be $66,000 per year.
Jeremy Daniel has built a stellar reputation as a results-driven
executive in diverse industries including healthcare,
biotechnology, and finance. Most recently, he served as CFO for
Innoveren Scientific, a publicly traded biotech firm, where he
successfully led acquisitions, improved financial systems, and
implemented strategic initiatives that fueled the company's growth
and operational success. His achievements include raising over
$100M in funding through public and private equity markets and
executing pivotal mergers and acquisitions.
Michael Dent, M.D., CEO of HealthLynked, shared his enthusiasm for
the appointment: "Jeremy's extensive experience and proven
leadership in financial operations and strategic planning make him
an outstanding addition to the HealthLynked team. His track record
of optimizing financial performance and supporting organizational
growth aligns perfectly with our vision to revolutionize healthcare
through technology."
On accepting the position, Mr. Daniel expressed his excitement
about the opportunity to contribute to HealthLynked's mission:
"Joining HealthLynked at this transformative time is a true honor.
I am excited to leverage my experience to enhance financial
strategies, foster innovation, and support the company's efforts in
improving patient outcomes and healthcare connectivity."
With a career that has included roles as CFO for Regenerative
Medicine Solutions and controller for Omnicare, Mr. Daniel is
well-versed in leading financial systems in compliance with GAAP
and SEC regulations. A Certified Public Accountant (CPA) and holder
of an MBA from Xavier University, his credentials position him to
lead with precision and integrity.
Departure of Chief Financial Officer
Effective January 15, 2025, David Rosal tendered his resignation as
Chief Financial Officer of the Company. Mr. Rosal's resignation is
not a result of any disagreement between himself and the Company,
its management, the Company's Board of Directors or any committee
of the Board. The Company appreciates Mr. Rosal's diligent service
as Chief Financial Officer.
About HealthLynked Corp.
Naples, Fla.-based HealthLynked Corp. was incorporated in the State
of Nevada on August 4, 2014. It operates a cloud-based patient
information network and record archiving system in the United
States and currently operates through three distinct divisions: the
Health Services Division, the Digital Healthcare Division, and the
Medical Distribution Division.
New York, N.Y.-based RBSM LLP, the Company's auditor since 2014,
issued a "going concern" qualification in its report dated April 1,
2024, citing that the Company has recurring losses from operations,
limited cash flow, and an accumulated deficit. These conditions
raise substantial doubt about the Company's ability to continue as
a going concern.
As of June 30, 2024, HealthLynked had $3,859,664 in total assets,
$4,284,243 in total liabilities, and $424,579 in total
shareholders' deficit.
HIGHLAND PARK: Gets Interim OK to Use Cash Collateral Until Jan. 31
-------------------------------------------------------------------
The U.S. Bankruptcy Court for the District of New Jersey granted
Highland Park Apts LLC's motion to use cash collateral on an
interim basis to fund its operations.
The interim order approved the use of cash collateral during the
period from Jan. 14 to 31, unless a final order is entered
extending the company's right to use cash collateral.
X-Caliber Funding LLC, the pre-bankruptcy lender, will be provided
with adequate protection in the form of replacement liens on the
pre-bankruptcy collateral and estate property of Highland Park
Apts.
To the extent that such liens do not adequately protect the
diminution in value of X-Caliber's interests in the cash
collateral, the lender will be granted an allowed superpriority
administrative expense claim, senior to all other administrative
expenses.
A final hearing is scheduled for Feb. 4.
About Highland Park Apts
About Highland Park Apts
Highland Park Apts, LLC is a Single Asset Real Estate debtor (as
defined in 11 U.S.C. Section 101(51B)).
Highland Park Apts sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. N.J. Case No. 24-22119) on December 10,
2024. In the petition filed by Elizabeth A. LaPuma, as independent
fiduciary, the Debtor reported $1 million to $10 million in both
assets and liabilities.
Judge Michael B. Kaplan handles the case.
The Debtor is represented by:
Kenneth Alan Rosen, Esq.
Ken Rosen Advisors PC
80 Central Park West
New York, NY 10023
Tel: (973) 493-4955
Email: Ken@kenrosenadvisors.com
HIGHLANDS GROUP: Unsecureds Will Get 4% of Claims in Plan
---------------------------------------------------------
The Highlands Group LLC, filed with the U.S. Bankruptcy Court for
the Western District of Pennsylvania a Disclosure Statement to
accompany Chapter 11 Plan dated January 17, 2025.
The Debtor operates a nine-hole golf course, tennis center. and a
bar/restaurant ("golf course complex") on approximately 180 acres
of owned land.
The golf course complex was purchased as a rehab project and, over
the years, various loans and other debts were incurred in order to
rehab the facilities as well as continue to operate. Eventually,
the debt burden became too cumbersome and the Debtor was forced to
file for relief.
Simultaneous with the Plan, the Debtor will file a motion to sell
approximately eighty-five acres of the Debtor's real property to
"Charles M. Conzatti Jr. Trust" for an initial offer of $400,000.00
pursuant to a sales agreement signed by the Debtor on December 28,
2024. The proposed sale will be advertised and higher and/or better
offers will be accepted at hearing on sale.
As detailed in the Plan, the proceeds of the sale will go to pay
Class 4 real estate taxes owed on the entirety of the Debtor's real
property, as well as a large portion of the Class 2 claim of 1st
Summit Bank pursuant to their first lien position on the Debtor's
real property. The acreage to be sold is currently vacant and
unused and will not interrupt the Debtor's business operations.
Other classes of creditors will be paid through the ongoing
revenues of the Debtor’s golf course complex business.
Class 6 consists of Priority Unsecured Claims. Class 6 priority
unsecured claims will be amortized and paid over a period of 60
months at statutory interest. Class 6 is not impaired by the Plan.
Class 7 consists of General Unsecured Creditors. The General
Unsecured Creditors of the Debtor will receive approximately four
(4%) of their Allowed Claims pursuant to the Plan. Class 7 is
impaired by the Plan. All Plan payments to general unsecured
creditors will be made from the ongoing revenue of the Debtor's
business from normal business operations.
The allowed unsecured claims total $684,258.09.
Class 8 consists of Equity Security Holders. The equity security
holders will not change as result of the Plan and Brian Durham will
continue to own 100% of the Debtor. Class 8 is not impaired by the
Plan.
A full-text copy of the Disclosure Statement dated January 17, 2025
is available at https://urlcurt.com/u?l=nV4CEO from
PacerMonitor.com at no charge.
The Highlands Group LLC is represented by:
Christopher M. Frye
Steidl and Steinberg, P.C.
2830 Gulf Tower, 707 Grant Street,
Pittsburgh, PA 15219
Telephone: (412)391-8000
Facsimile: (412) 391-0221
Email: chris.frye@steidl-steinberg.com
About Highlands Group LLC
The Highlands Group LLC in Johnstown, PA, filed its voluntary
petition for Chapter 11 protection (Bankr. W.D. Pa. Case No.
24-70160) on April 22, 2024, listing as much as $1 million to $10
million in both assets and liabilities. Brian C. Durham as member,
signed the petition.
STEIDL & STEINBERG, P.C., serves as the Debtor's legal counsel.
HILLCREST CENTER: Gets Interim OK to Use Cash Collateral
--------------------------------------------------------
The U.S. Bankruptcy Court for the District of Minnesota granted
Hillcrest Center, LLC's motion to use cash collateral and provide
adequate protection to MinnWest Bank.
The order authorized the company to use cash collateral for a
26-week period as outlined in the projections filed with the
bankruptcy court.
As adequate protection, MinnWest Bank was granted replacement liens
with the same priority and effect as its pre-bankruptcy interest.
MinnWest Bank can be reached through its counsel:
Cynthia L. Hegarty, Esq.
Winthrop & Weinstine, P.A.
225 South Sixth Street, Suite 3500
Minneapolis, MN 55402
Telephone: (612) 604-6400
Facsimile: (612) 604-6800
chegarty@winthrop.com
About Hillcrest Center
Hillcrest Center, LLC is a Single Asset Real Estate debtor (as
defined in 11 U.S.C. Section 101(51B)).
Hillcrest Center sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Minn. Case No. 24-33279) on December 12,
2024, with total assets of $8,181,056 and total liabilities of
$6,256,577. Rosemary Kortgard, managing member, signed the
petition.
Judge William J. Fisher handles the case.
The Debtor is represented by:
Kenneth Edstrom, Esq.
Sapientia Law Group
120 S 6th St Ste 100
Minneapolis MN 55402
Tel: (612) 756-7100
Email: kene@sapientialaw.com
HILMORE LLC: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: Hilmore, LLC
312 South Beverly Drive, Unit 3602
Beverly Hills, CA 90210
Business Description: Hilmore 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
Central District of California
Case No.: 25-10481
Debtor's Counsel: Raymond H. Aver, Esq.
LAW OFFICES OF RAYMOND H. AVER, A PROFESSIONAL
CORPORATION
11849 West Olympic Boulevard, Suite 204
Los Angeles, CA 90064
Tel: (310) 571-3511
Email: ray@averlaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Sharokh Javidzad as manager.
The Debtor stated in the petition it has no unsecured creditors.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/3VLJPHA/Hilmore_LLC__cacbke-25-10481__0001.0.pdf?mcid=tGE4TAMA
HUBBARD RADIO: Allspring Global Marks $119,329 Loan at 24% Off
--------------------------------------------------------------
Allspring Global Dividend Opportunity Fund (EOD) has marked its
$119,329 loan extended to Hubbard Radio LLC to market at $90,690 or
76% of the outstanding amount, according to the Allspring Global's
Form N-CSR for the fiscal period ended October 31, 2024, filed with
the U.S. Securities and Exchange Commission.
EOD is a participant in a Loan to Hubbard Radio LLC. The loan
accrues interest at a rate of 9.19%, (U.S. SOFR 1 Month+4.50%) per
annum. The loan matures on September 30, 2027.
Allspring Global Dividend Opportunity Fund was organized as a
statutory trust under the laws of the state of Delaware on December
21, 2006 and is registered as a diversified closed-end management
investment company under the Investment Company Act of 1940, as
amended.
Allspring Global is led by Andrew Owen, Principal Executive
Officer; and Jeremy DePalma, Principal Financial Officer. The Fund
can be reached through:
Matthew Prasse
Allspring Funds Management, LLC
1415 Vantage Park Drive, 3rd Floor
Charlotte, NC 28203
Tel: (857) 776-4824
Formed in 2011, Hubbard Radio, LLC is a family controlled and
privately held media company that owns and operates radio stations
in seven of top 30 markets, including Chicago, Washington, D.C.,
Minneapolis/St. Paul, St. Louis, Cincinnati, Seattle, and Phoenix.
Hubbard also operates 2060 Digital, LLC, a national digital
marketing agency based in Cincinnati, OH. Headquartered in St.
Paul, MN, the company is affiliated with Hubbard Broadcasting Inc.,
a television and radio broadcasting company that was started in
1923.
INTRUSION INC: Raises $14.5M, Eliminates $10.1M in Preferred Stock
------------------------------------------------------------------
Intrusion Inc. provided an update on recent actions taken that
resulted in $14.5 million in proceeds to the Company and the
elimination of $10.1 million notional value of all Series A
Preferred Stock. These actions strengthen the Company's financial
position and ensure that Intrusion has sufficient capital to fund
its operations and eliminates the need for the Company to raise
additional capital in calendar year 2025.
Recent Highlights:
* Received $0.3 million from the Company's Warrant Inducement
Plan on December 27, 2024, through the exercise of 369 thousand
warrants to purchase shares of the Company's common stock.
* Received $1.7 million from draws on the previously announced
Standby Equity Purchase Agreement (SEPA) with Streeterville
Capital, LLC.
* Sold approximately $5 million of common stock pursuant to
the ATM program during the fourth quarter of 2024.
* Closed a registered direct offering on January 7, 2025,
resulting in gross proceeds of approximately $7.5 million.
* Executed a series of transactions exchanging 9,025 shares of
Series A Preferred Stock with a notional value of $9.9 million for
3,454 thousand shares of common stock.
As previously noted, the Company intends to use the net proceeds
from these actions for general corporate purposes, which may
include, but is not limited to, the repayment of existing
indebtedness, working capital, capital expenditures, acquisitions,
and other investments.
"We are well positioned going into 2025 with sufficient cash to
fund our operations through 2025; very little debt, and no
remaining Series A Preferred," said Tony Scott, CEO of Intrusion.
"With this improved financial flexibility, we are now able to
dedicate our full attention to expanding our customer base and
advancing our journey towards sustainable growth and
profitability."
About Intrusion
Headquartered in Plano, Texas, Intrusion Inc. offers businesses of
all sizes and industries products and services that leverage the
Company's exclusive threat intelligence database of over 8.5
billion IP addresses and domain names. After many years of
gathering intelligence and providing its INTRUSION TraceCop and
Savant solutions exclusively to government entities, the Company
released its first commercial product in 2021, the INTRUSION
Shield. INTRUSION Shield was designed to allow businesses to
incorporate a Zero Trust, reputation-based security solution into
their existing infrastructure to observe traffic flow and instantly
block known malicious or unknown connections from both entering or
exiting a network, making it an ideal solution for protecting from
Zero-Day and ransomware attacks.
As of September 30, 2024, the Company had cash and cash equivalents
of $1.1 million and a working capital deficit of $1 million. In
addition, the Company has incurred net operating losses during the
last four years. These conditions raise substantial doubt about the
Company's ability to continue as a going concern within the next 12
months from September 30, 2024.
As of September 30, 2024, Intrusion had $7.4 million in total
assets, $4.8 million in total liabilities, and $2.6 million in
total shareholders' equity.
INVITAE CORP: Nixed Asset Buyer Urges Ch. 11 Court to Halt Suit
---------------------------------------------------------------
Emily Lever of Law360 reports that Natera, a genetic testing
company, has filed an adversary lawsuit against its competitor
Invitae, which sought bankruptcy protection in 2025, asking a New
Jersey bankruptcy judge to prevent Invitae's Chapter 11 plan
administrator from pursuing payments under a terminated contract.
About Invitae Corp.
Invitae Corporation is a medical genetics company that is in the
business of delivering genetic testing services, digital health
solutions, and health data services that support a lifetime of
patient care and improved outcomes.
Invitae Corp. and five of its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.J. Lead Case No.
24-11362) on Feb. 13, 2024. In the petition filed by Ana Schrank,
chief financial officer, disclosed $535,115,000 in assets against
$1,618,519,000 in debt.
Judge Michael B. Kaplan oversees the case.
Kirkland & Ellis LLP and Kirkland & Ellis International LLP are the
Debtors' bankruptcy counsel and Cole Schotz, P.C. is the Debtors'
co-bankruptcy counsel. Moelis & Company LLC is the Debtors'
investment banker. FTI Consulting Inc is the Debtors' restructuring
advisor. Kurtzman Carson Consultants LLC is the Debtors's notice
and claims agent. Deloitte Touche Tohmatsu Limited serves as the
Debtors' tax advisor.
* * *
This concludes the Troubled Company Reporter's coverage of Invitae
Corporation until facts and circumstances, if any, emerge that
demonstrate financial or operational strain or difficulty at a
level sufficient to warrant renewed coverage.
KCT INC: Seeks Chapter 11 Bankruptcy Protection in New York
-----------------------------------------------------------
On January 23, 2025, KCT Inc. filed Chapter 11 protection in the
U.S. Bankruptcy Court for the Southern District of New York.
According to court filing, the Debtor reports between $10 million
and $50 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About KCT Inc.
KCT Inc. is a single asset real estate corporation headquartered at
1060 Nepperhan Avenue in Yonkers, New York.
KCT Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. S.D.N.Y. Case No. 25-22055) on January 23, 2025. In its
petition, the Debtor reports estimated assets between $1 million
and $10 million and estimated liabilities between $10 million and
$50 million.
Honorable Bankruptcy Judge Sean H. Lane handles the case.
The Debtor is represented by Mark S. Lichtenstein, Esq., at Akerman
LLP, in New York.
KCT INC: Voluntary Chapter 11 Case Summary
------------------------------------------
Debtor: KCT, Inc.
1030 Nepperhan Avenue
Yonkers NY 10703
Business Description: KCT, Inc. is a single asset real estate
debtor, as defined in 11 U.S.C. Section
101(51B).
Chapter 11 Petition Date: January 23, 2025
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 25-22055
Judge: Hon. Sean H Lane
Debtor's Counsel: Mark S. Lichtenstein, Esq.
AKERMAN LLP
1251 Avenue of the Americas, 37th Floor
New York NY 10020
Tel: (212) 880-3800
E-mail: mark.lichtenstein@akerman.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Kirk Lewin as owner.
The Debtor stated in the petition it has no unsecured creditors.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/URHY7RY/KCT_Inc__nysbke-25-22055__0001.0.pdf?mcid=tGE4TAMA
KKC RESTAURANTS: Court Extends Use of Cash Collateral Until Feb. 12
-------------------------------------------------------------------
KKC Restaurants, Inc. received second interim approval from the
U.S. Bankruptcy Court for the Southern District of Florida, West
Palm Beach Division, to use cash collateral.
The second interim order approved the use of cash collateral from
Jan. 8 to Feb. 12 to pay the expenses set forth in the company's
budget, including an estimated monthly payment of $1,587 for liquor
liability insurance.
KKC Restaurants was ordered to provide adequate protection to
claimants with an interest in the cash collateral in the form of
replacement liens with the same validity, priority, and extent as
their pre-bankruptcy liens.
The next hearing is scheduled for Feb. 12.
About KKC Restaurants, Inc.
KKC Restaurants, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-22845-MAM) on
December 9, 2024, with up to $50,000 in assets and up to $1 million
in liabilities. Bobby Jo McKellar, president of KKC Restaurants,
signed the petition.
Judge Erik P. Kimball oversees the case.
The Debtor tapped The Fox Law Corporation, Inc. as general
bankruptcy counsel and Shraiberg Page P.A. as local counsel.
LUMIO HOLDINGS: Plan Exclusivity Period Extended to April 2
-----------------------------------------------------------
Judge J. Kate Stickles of the U.S. Bankruptcy Court for the
District of Delaware extended Lumio Holdings, Inc., and Lumio HX,
Inc.'s exclusive periods to file a plan of reorganization and
obtain acceptance thereof to April 2 and June 2, 2025,
respectively.
As shared by Troubled Company Reporter, the Debtors spent a
significant portion of these chapter 11 cases pursuing a
successful, value maximizing sale of their assets. That process
involved, among other things, the successful negotiation of two
separate settlements with the Committee and the Debtors' DIP
Lender, the negotiation of two asset purchase agreements, and
achieving approval of the Sale following a two-day contested
hearing.
The Debtors cite that the results of the Debtors' diligent efforts
put these chapter 11 cases on a path toward a successful resolution
to deliver recoveries to their stakeholders through the Combined
Disclosure Statement and Plan. And with the Interim Hearing
scheduled for later this week and the Combined Hearing just weeks
away, the Debtors hope to achieve confirmation of the Plan by early
February.
Consequently, the requested extension is reasonable and is
consistent with the efficient prosecution of these chapter 11 cases
as it will provide the Debtors the time necessary to obtain
confirmation of their Combined Disclosure Statement and Plan and
maximize the value of their estates for the benefit of their
stakeholders.
Counsel to the Debtors:
Robert J. Dehney, Sr., Esq.
Matthew B. Harvey, Esq.
Matthew O. Talmo, Esq.
Scott D. Jones, Esq.
Morris, Nichols, Arsht & Tunnell LLP
1201 North Market Street, 16th Floor
PO Box 1347
Wilmington, DE 19899-1347
Tel: (302) 351-9353
Fax: (302) 658-3989
Email: rdehney@morrisnichols.com
About Lumio Holdings
Lumio Holdings, Inc., is a privately-held residential solar
provider in Lehi, Utah, which is fully vertically integrated with a
full suite of photovoltaic solar system sales, installation and
operations.
Lumio Holdings and Lumio HX, Inc. filed Chapter 11 petitions
(Bankr. D. Del. Lead Case No. 24-11916) on Sept. 3, 2024. Jeffrey
T. Varsalone, chief restructuring officer, signed the petitions.
At the time of the filing, the Debtors reported $100 million to
$500 million in both assets and liabilities.
Judge J. Kate Stickles oversees the cases.
The Debtors tapped Morris, Nichols, Arsht & Tunnell, LLP, Houlihan
Lokey Capital, Inc. and C Street Advisory Group as legal counsel,
investment Banker and strategic communications advisor,
respectively. Stretto, Inc. is the claims and noticing agent and
administrative advisor.
MARQUIE GROUP: Delays Filing of Form 10-Q for Period Ended Nov. 30
------------------------------------------------------------------
Marquie Group, Inc. submitted a Form 12b-25 to the Securities and
Exchange Commission, indicating a delay in filing its Quarterly
Report on Form 10-Q for the period ending Nov. 30, 2024. The
Company noted that the financial information required for the Form
10-Q cannot be analyzed and finalized in time.
About Marquie Group Inc.
The Marquie Group, Inc. -- www.themarquiegroup.com -- is an
emerging direct-to-consumer firm specializing in marketing, product
development, and media, with a focus on a dynamic radio and digital
network. The Company crafts and promotes top-tier health and
beauty solutions that enrich lives, showcased through engaging
radio content for its audience.
Lagos, Nigeria-based Olayinka Oyebola & Co., the Company's auditor
since 2024, issued a "going concern" qualification in its report
dated Sept. 3, 2024. The report highlights that at May 31, 2024,
the Company suffered an accumulated deficit of $14,863,486 and a
net loss of $165,456. These factors raise substantial doubt
regarding the Company’s ability to continue as a going concern.
MAWSON INFRASTRUCTURE: Appoints William Regan as CFO
----------------------------------------------------
Mawson Infrastructure Group Inc. announced it has appointed William
C. Regan as the Company's chief financial officer effective Jan.
17, 2025.
Rahul Mewawalla, CEO and president, said, "I am excited to have
Bill as our Chief Financial Officer and look forward to his future
accomplishments. We have also hired other leaders from companies
such as Amazon Web Services and Apple, as we continue to transform
the company and provide enterprise-class digital infrastructure
platforms and compute solutions. I thank Sandy for his many
contributions during his tenure. As a company, we have driven
robust year-on-year and monthly revenue growth across our digital
colocation business, acquired and signed several enterprise-grade
customers, built what has become one of the largest digital
colocation businesses amongst our publicly-traded peers, expanded
into new market offerings such as AI and high-performance
computing, enhanced our strategic, technological and operational
capabilities, and were featured in the Financial Times, Reuters,
Newsweek, Forbes, Fast Company amongst others for our strategic and
innovative approach to digital infrastructure."
Mr. Regan joined the Company in 2024 as deputy chief financial
officer. Mr. Regan has 40 years of finance and accounting
experience, including 25 years at public companies and 10 years at
technology companies. Mr. Regan has previously held multiple CFO
and senior finance positions, including at Everything Blockchain,
Inc., Rentech, Inc., National Golf Properties, Inc., Digital
Insight Corporation and DTS Digital Cinema. Mr. Regan holds a
Bachelor's degree in Business Administration - Accounting from
California State Polytechnic University, Pomona and is a Certified
Public Accountant (inactive).
William "Sandy" Harrison has stepped down from his role as chief
financial officer to spend more time with his family, and, for a
period of time, Mr. Harrison will continue to serve the Company as
a senior advisor.
About Mawson Infrastructure
Mawson Infrastructure Group (NASDAQ: MIGI) is a technology company
that offers digital infrastructure platforms for artificial
intelligence (AI), high-performance computing (HPC) and digital
assets. The Company's digital infrastructure platforms can be used
to operate computing resources for a number of applications, and
are offered across artificial intelligence (AI), high-performance
computing (HPC), digital assets, and other computing applications.
The Company's innovation, technology, and operational expertise
enables it to operate and optimize digital infrastructure to
accelerate the digital economy. The Company has a strategy to
prioritize the usage of carbon-free energy sources, including
nuclear energy, to power its digital infrastructure platforms and
computational machines. For more information, visit
https://www.mawsoninc.com
On Dec. 4, 2024, an involuntary Chapter 11 case was filed against
the Company by alleged creditors W Capital Advisors Pty Ltd,
Marshall Investments MIG Pty Ltd, and Rayra Pty Ltd. in the U.S.
Bankruptcy Court for the District of Delaware (Bankr. D. Del. Case
No. 24-12726). Judge Mary F. Walrath presides over the case.
The petitioning creditors are represented by Robert J. Dehney, Sr.,
Esq., of Morris, Nichols, Arsht & Tunnell LLP.
MCCLATCHIE PROPERTY: Starts Subchapter V Bankruptcy Process
-----------------------------------------------------------
On January 22, 2025, McClatchie Property Management LLC filed
Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern
District of Virginia.
According to court filing, the Debtor reports between $100,000
and $500,000 in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About McClatchie Property Management
McClatchie Property Management LLC is a Richmond, Virginia-based
property management and lawn care services provider.
McClatchie Property Management LLC sought relief under Subchapter V
of Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Va. Case No.
25-30237) on January 22, 2025. In its petition, the Debtor reports
estimated assets and liabilities between $100,000 and $500,000.
The Debtor is represented by:
Paula S. Beran, Esq.
Tavenner & Beran, PLC
20 North Eighth Street, Second Floor
Richmond, VA 23219
Phone: 804-783-8300
Fax: 804-783-0178
MOORE MEDICAL: Gets Interim OK to Use Cash Collateral Until Feb. 6
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida,
Orlando Division granted Moore Medical Group, Inc.'s motion to use
cash collateral on an interim basis until Feb. 6.
The company requires the use of cash collateral to pay its
expenses, including payments to the Subchapter V trustee.
As adequate protection, the U.S. Small Business Administration and
other secured creditors will have post-petition liens on cash
collateral to the same extent and with the same validity and
priority as their pre-bankruptcy liens.
As additional protection, Moore Medical Group was ordered to
maintain insurance coverage for its property in accordance with the
obligations under its loan agreement with the SBA.
The next hearing is set for Feb. 6.
About Moore Medical Group
Moore Medical Group, Inc., a company in Lake Mary, Fla., filed a
petition under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. M.D. Fla. Case No. 24-05162) on Sept. 24, 2024, listing
$481,336 in assets and $2,762,511 in liabilities. L. Todd Budgen,
Esq., a practicing attorney in Longwood, Fla., serves as Subchapter
V trustee.
Judge Grace E. Robson oversees the case.
The Debtor is represented by:
Katelyn M. Vinson, Esq.
Jennis Morse
Tel: 813-229-2800
Email: kvinson@jennislaw.com
MR. TORTILLA: Unsecureds Will Get 100% of Claims over 180 Months
----------------------------------------------------------------
Mr. Tortilla, Inc. filed with the U.S. Bankruptcy Court for the
Central District of California a Disclosure Statement describing
Chapter 11 Plan of Reorganization dated January 17, 2025.
Genesis, the firm appointed by the creditors' committee, was unable
to secure a buyer for Mr. Tortilla. They sought $5 million for a
full sale but were unsuccessful. The only potential buyer, Eric
Donnelly, was introduced to Genesis by the Debtor's principals who
complied with every request made by Genesis and the Committee.
Eric Donnelly was already familiar with Mr. Tortilla prior to the
involvement by Genesis and the Committee. Despite initial progress,
his interest waned after a conversation in which Mr. Donnelly was
misled into believing the Debtor had not paid its employees even
though Lyneer Staffing Solutions, LLC had kept them paid. Pivoting,
Genesis introduced the debtor to New Mill Holdings, an auctioneer
for sales of Machinery. The Debtor's machinery is antiquated and
lacks automation, the debtor shared information and photographs
with New Mill Holdings and they opted not to pursue as it was not
worth their time.
The Debtor is confident that a reorganization is quite feasible as
it has secured key retail partnerships for 2025. The Debtor's plan
is built on strategic growth through partnerships with major
retailers.
The Debtor has prepared Financial Projections which demonstrate
that the Debtor can afford to propose a feasible Chapter 11 plan of
reorganization, which pays secured creditors 100% of the value of
their assets over 84 months with interest and 100% of their
unsecured claims, including the portion of the claims of the
secured creditors that exceeds the value of their collateral, over
15 years.
Class 30 consists of All General Unsecured Claims Other than Claims
in Convenience class. Allowed general unsecured claims shall
receive a total of 100% of the amount of their claims over 180
months from the Effective Date in full satisfaction of their
claims, commencing at the end of the first calendar quarter after
the Effective. Payments will increase over time as administrative,
secured and priority claims are paid off or where the Debtor
projects higher net income as specifically set forth in the chart
attached at the end of the Chapter 11 plan. This Class is
impaired.
Class 31 consists of all Allowed General Unsecured Claims in the
amount of $1,000 or less OR as to which its holder elects to
receive $500 in full satisfaction thereof ("Convenience Class").
The Debtor will pay 100% of such claims on the Effective Date.
It is projected that on the Effective Date, the Debtor will have
approximately no less than $115,000 on the Effective Date. The
amount available as of the Effective Date may be less than $115,000
by an amount equal to allowed administrative amounts paid before
the Effective Date order, which will reduce the amounts due on the
Effective Date by a corresponding amount.
A full-text copy of the Disclosure Statement dated January 17, 2025
is available at https://urlcurt.com/u?l=CL6vxt from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Giovanni Orantes, Esq.
The Orantes Law Firm, PC
3435 Wilshire Blvd., Suite 2920
Los Angeles, CA 90010
Tel: (213) 389-4362
Fax: (877) 789-5776
Email: go@gobklaw.com
About Mr. Tortilla, Inc.
Mr. Tortilla, Inc., operates bakeries and tortilla manufacturing
business in San Fernando, Calif.
The Debtor filed a Chapter 11 petition (Bankr. C.D. Cal. Case No.
24-10228) on Feb. 14, 2024, with $1 million to $10 million in
assets and $10 million to $50 million in liabilities. Anthony
Alcazar, president, signed the petition.
Judge Victoria S. Kaufman oversees the case.
Michael Jay Berger, Esq., at the Law Offices of Michael Jay Berger,
is the Debtor's bankruptcy counsel.
NEOLPHARMA INC: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Neolpharma Inc.
99 Jardines St.
Caguas, PR 00725
Business Description: Neolpharma Inc. is a privately-held company
that specializes in the manufacturing of
pharmaceutical products.
Chapter 11 Petition Date: January 22, 2025
Court: United States Bankruptcy Court
District of Puerto Rico
Case No.: 25-00188
Debtor's Counsel: Carmen D. Conde Torres, Esq.
C. CONDE & ASSOC.
254 San Jose Street
5th Floor
San Juan, PR 00901-1523
Tel: 787-729-2900
Fax: 787-729-2203
E-mail: condecarmen@condelaw.com
Total Assets: $29,049,165
Total Liabilities: $21,068,886
The petition was signed by Marco A. Monrouzeau Bonilla as
authorized representative.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/TW2QSYA/NEOLPHARMA_INC__prbke-25-00188__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Luma Energy, LLC Utilities $5,336,741
PO Box 363508
San Juan, PR
00936-3508
2. Autoridad Acueductos Y Utilities $817,051
Alcantarillados
PO Box 70101
San Juan, PR
00936-8101
3. David Kivett Lawsuit $537,052
c/o Brian C. Legrow
717 Constitution Drive
Suite 201
Exton, PA 19341
4. Empire Gas Company, Inc. Propane $493,738
PO Box 363651 Agreement
San Juan, PR 00936
5. Transfuel, LLC Diesel Agreement $455,400
PO Box 711
Mayaguez, PR 00681
6. Crowley LNG Natural Gas $378,218
Puerto Rico, LLC Agreement
c/o Fast Solutions, LLC
Citi Tower
252 Ponce De Leon Avenue
Floor 20
San Juan, PR 00918
7. ECDC Consulting Professional $140,699
Group, LLC Services
PO Box 1343 Production
Trujillo Alto, PR Development
00977
8. Peerless Oil & Lawsuit $129,212
Chemicals, Inc.
Firm Delivery 671
Rd 337
Penuelas, PR
00624-7513
9. Fisher Scientific Lab Material $118,845
PO Box 3648
Boston, MA
00241-3648
10. Alcami Corporation Raw Material $109,128
PO Box 603059 Production
Charlotte, NC
28260-3059
11. Technical Support & Maintenance $96,740
Services, LLC Services
Parque Las Haciendas
Calle Otoau F-11
Caguas, PR 00725
12. MCS Health Medical Plan $88,228
Management Options, Inc. Temination
MCS Laza Suite 160
255 Ponce de Leon Avenue
Hato Rey, PR 00180
13. MM Packaging Packaging $76,809
PO Box 999 Materials
Guaynabo, PR 00969
14. Plan De Salud Agreement $69,415
Menonita Medical Plan
PO Box 364668
San Juan, PR 00936
15. Ernesto Lopez & Professional $59,817
Associates, Inc. Services
898 Munoz Rivera
Ave, Suite 204
San Juan, PR 00927
16. Image Direct-Ideess, Inc. Service $58,696
Suite 140 PMB 458 Provider
Caguas, PR 00725
17. Capsugel Manufacturing Capsul $49,588
PO Box 640091 Provider
500 First Ave.
Pittsburgh, PA
15264-0091
18. Motion Inc. Equipment $47,364
Carretera 2 Km. Provider
16.60
Bo. Candelaria
Toa Baja, PR 00950
19. Beckman Coulter, Inc. Supplies & $43,636
481 California Ave. Equipment
Grants Pass, OR 94526 Provider
20. PVSR Corporation Lawsuit $43,597
PO Box 1548
Vega Baja, PR
00694-1548
NETCAPITAL INC: Raises $487,000 From Warrant Exercise
-----------------------------------------------------
Netcapital, Inc. disclosed in a Form 8-K Report filed with the U.S.
Securities and Exchange Commission that on January 9, 2025, it
entered into inducement offer letter agreements with certain
investors that hold certain outstanding warrants to purchase up to
an aggregate of 270,861 shares of the Company's common stock, par
value $0.001 per share, originally issued to the Participating
Holders in December 2023 and May 2024. The Existing Warrants had an
exercise price of $10.85 per share.
Pursuant to the Inducement Letters, the Participating Holders
agreed to exercise for cash the Existing Warrants at a reduced
exercise price of $1.80 per share in partial consideration for the
Company's agreement to issue in a private placement:
(x) new Series A-5 Common Stock purchase warrants to purchase
up to 361,148 shares of Common Stock and
(y) new Series A-6 Common Stock Purchase Warrants to purchase
up to 180,574 shares of Common Stock.
The New Warrants are exercisable beginning on July 13, 2025, with
such warrants expiring on:
(i) the 5-year anniversary of the Initial Exercise Date for
the Series A-5 Warrants and
(ii) the 18-month anniversary of the Initial Exercise Date for
the Series A-6 Warrants.
The closing of the transactions contemplated pursuant to the
Inducement Letters occurred on January 13, 2025. The Company
received aggregate gross proceeds of approximately $487,000 from
the exercise of the Existing Warrants by the Holders, before
deducting placement agent fees and other expenses payable by the
Company. The Company intends to use the net proceeds for general
corporate purposes.
The Company engaged H.C. Wainwright & Co., LLC to act as its
exclusive agent in connection with the transactions and paid H.C.
Wainwright a cash fee equal to 7.5% of the aggregate gross proceeds
from the exercise of the Existing Warrants at the reduced exercise
price. In addition, the Company:
(i) paid H.C. Wainwright a management fee of $4,876, and
(ii) reimbursed H.C. Wainwright for its non-accountable
expenses in the amount of $15,000. The Company also issued to H.C.
Wainwright or its designees placement agent warrants to purchase up
to 20,315 shares of Common Stock.
The Placement Agent Warrants have the same terms as the New
Warrants, except that the Placement Agent Warrants have an exercise
price equal to $2.25 per share and expire on July 15, 2030.
The original sale or resale of the shares of Common Stock
underlying the Existing Warrants have been registered pursuant to
an existing registration statement on Form S-1, as amended (File
Nos. 333-282590) declared effective by the Securities and Exchange
Commission on December 20, 2024.
Terms of the New Warrants
and Placement Agent Warrants
* Duration and Exercise Price
Each New Warrant has an exercise price equal to $2.07 per share.
The Placement Agent Warrants have an exercise price equal to $2.25
per share. The New Warrants are not exercisable until the Initial
Exercise Date, and the New Warrants expire on the:
(i) 5-year anniversary of the Initial Exercise Date for the
Series A-5 Warrants and
(ii) the 18-month anniversary of the Initial Exercise Date for
the Series A-6 Warrants.
The Placement Agent Warrants are not exercisable until the Initial
Exercise Date and expire on the July 15, 2030. The exercise price
and number of New Warrant Shares and Placement Agent Warrant Shares
issuable upon exercise of the New Warrants or Placement Agent
Warrants are subject to appropriate adjustment in the event of
stock dividends, stock splits, subsequent rights offerings, pro
rata distributions, reorganizations, or similar events affecting
the Common Stock and the exercise price.
* Exercisability
The New Warrants and Placement Agent Warrants are exercisable, at
the option of each holder, respectively, in whole or in part, by
delivering a duly executed exercise notice accompanied by payment
in full for the number of shares of Common Stock purchased upon
such exercise. A holder or PA Warrant Holder (together with their
affiliates) may not exercise any portion of their New Warrants or
Placement Agent Warrants to the extent that the holder or PA
Warrant Holder would own more than 4.99% (or, at the election of
the holder or H.C. Wainwright, 9.99%) of the outstanding Common
Stock immediately after exercise, except that upon prior notice
from the holder or H.C. Wainwright to the Company, the holder or PA
Warrant Holder may increase or decrease the amount of ownership of
outstanding stock after exercising their New Warrants or Placement
Agent Warrants, as applicable, up to 9.99% of the number of shares
of Common Stock outstanding immediately after giving effect to the
exercise, as such percentage ownership is determined in accordance
with the terms of the New Warrants and Placement Agent Warrants,
provided that any increase will not be effective until 61 days
following notice to the Company.
* Cashless Exercise
If, at the time a holder exercises its New Warrants, or a PA
Warrant Holder exercises its Placement Agent Warrants, a
registration statement registering the resale of the New Warrant
Shares and Placement Agent Warrants Shares by the holder and the PA
Warrant Holder, respectively, under the Securities Act of 1933, as
amended, is not then effective or available, then in lieu of making
the cash payment otherwise contemplated to be made upon such
exercise in payment of the aggregate exercise price, the holder or
the PA Warrant Holder may elect instead to receive upon such
exercise (either in whole or in part), the net number of shares of
Common Stock determined according to a formula set forth in the New
Warrants and Placement Agent Warrants.
* Rights as a Stockholder
Except as otherwise provided in the New Warrants and Placement
Agent Warrants, or by virtue of the holder's or PA Warrant Holder's
ownership of shares of Common Stock, such holder or PA Warrant
Holder does not have the rights or privileges of a holder of Common
Stock, including any voting rights, until such holder exercises
such holder's New Warrants or such PA Warrant Holder exercises such
Placement Agent Warrants. The New Warrants and Placement Agent
Warrants provide that the holders of the New Warrants and the PA
Warrant Holder have the right to participate in certain
distributions or dividends paid on shares of Common Stock.
* Fundamental Transactions
If at any time the New Warrants and Placement Agent Warrants are
outstanding, the Company, either directly or indirectly, in one or
more related transactions, effects a Fundamental Transaction, a
holder of New Warrants and the PA Warrant Holder is entitled to
receive the number of shares of Common stock of the successor or
acquiring corporation, or of the Company if the Company is the
surviving corporation, and any additional consideration receivable
as a result of the Fundamental Transaction by such holder of the
number of shares of Common Stock for which the New Warrants and
Placement Agent Warrants are exercisable immediately prior to the
Fundamental Transaction. As an alternative, the holder or H.C.
Wainwright may, at their option, in the event of a Fundamental
Transaction, exercisable at any time concurrently with, or within
30 days after, the consummation of the Fundamental Transaction (or,
if later, the date of the public announcement of the applicable
fundamental transaction), cause the Company to purchase the
unexercised portion of the New Warrants or Placement Agent Warrants
from the holder or the PA Warrant Holder, respectively, by paying
to the holder or the PA Warrant Holder, as applicable, an amount of
cash equal to the Black Scholes Value (as defined in the New
Warrants and Placement Agent Warrants) of the remaining unexercised
portion of the New Warrants or Placement Agent Warrants on the date
of the consummation of such Fundamental Transaction.
* Waivers and Amendments
The New Warrants and Placement Agent Warrants may be modified or
amended, or the provisions of the New Warrants or Placement Agent
Warrants waived, with the Company's, the holder's or the PA Warrant
Holder's (as applicable) written consent.
The offer and sale of the New Warrants, the Placement Agent
Warrants, the New Warrant Shares and the Placement Agent Warrant
Shares have not been registered under the Securities Act and were
offered pursuant to the exemption from registration provided in
Section 4(a)(2) under the Securities Act.
On January 9, 2025, the board of the directors of the Company
agreed to reduce the exercise price for the Existing Warrants to
$1.80 per share.
About Netcapital Inc.
Headquartered in Boston, Mass., Netcapital Inc. --
www.netcapital.com -- is a fintech company with a scalable
technology platform that allows private companies to raise capital
online and provides private equity investment opportunities to
investors. The Company's consulting group, Netcapital Advisors,
provides marketing and strategic advice and takes equity positions
in select companies. The Company's funding portal, Netcapital
Funding Portal, Inc. is registered with the U.S. Securities &
Exchange Commission (SEC) and is a member of the Financial Industry
Regulatory Authority (FINRA), a registered national securities
association.
Spokane, Washington-based Fruci & Associates II, PLLC, the
Company's auditor since 2017, issued a "going concern"
qualification in its report dated July 29, 2024, citing that the
Company has negative working capital, net operating losses, and
negative cash flows from operations. These factors, among others,
raise substantial doubt about the Company's ability to continue as
a going concern.
Netcapital reported a net loss of $4.99 million for the year ended
April 30, 2024, compared to net income of $2.95 million for the
year ended April 30, 2023. As of July 31, 2024, Netcapital had
$41.44 million in total assets, $3.93 million in total liabilities,
and $37.51 million in total stockholders' equity.
NEXTTRIP INC: Widens Net Loss to $2.01 Million in Third Quarter
---------------------------------------------------------------
NextTrip, Inc., filed its Quarterly Report on Form 10-Q with the
Securities and Exchange Commission, reporting a net loss of $2.01
million on revenue of $74,635 for the three months ended Nov. 30,
2024. This compares to a net loss of $1.31 million on revenue of
$205,789 for the three months ended Nov. 30, 2023.
For the nine months ended Nov. 30, 2024, the Company reported a net
loss of $5.52 million on revenue of $417,926, compared to a net
loss of $3.56 million on revenue of $253,014 for the same period a
year ago.
As of Nov. 30, 2024, the Company had $4.98 million in total assets,
$6.39 million in total liabilities, and a total stockholders'
deficit of $1.42 million.
NextTrip stated that "The Company currently does not have
sufficient cash and working capital to fund its operations and will
require additional funding in the public or private markets in the
near-term to be able to continue operations. The Company currently
has no understanding or agreement to obtain such funding, and there
is no assurance that we will be successful in obtaining additional
funding. If we fail to obtain sufficient funding when needed, we
will be forced to delay, scale back or eliminate all or a portion
of our commercialization efforts and operations. As a result,
there is substantial doubt about our ability to continue as a going
concern."
The full text of the Form 10-Q is available at no cost at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/788611/000149315225002136/form10-q.htm
About NextTrip, Inc.
Headquartered in Santa Fe, NM, NextTrip, Inc. -- www.nexttrip.com
-- is an early-stage, technology-driven travel company building
next-generation solutions to power the travel industry. With a
suite of brands, including NextTrip Vacations, Travel Magazine, and
Compass.TV, the Company aims to inspire and empower travel while
curating personalized experiences for both leisure and business
travelers. The Company's proprietary NXT2.0 booking engine offers
extensive inventory, supporting both travelers and distributors
with a platform for efficient trip planning and booking.
Salt Lake City, Utah-based Haynie & Company, the Company's auditor
since 2024, issued a "going concern" qualification in its report
dated Sept. 4, 2024. The report cites that the Company has
suffered recurring losses from operations and has a negative
working capital that raise substantial doubt about its ability to
continue as a going concern.
NMG HOLDING: S&P Withdraws 'B-' Issuer Credit Rating
----------------------------------------------------
S&P Global Ratings withdrew all of its ratings on NMG Holding Co.
Inc., including the 'B-' issuer credit rating and 'B-' issue-level
rating and '3' recovery rating on its senior secured notes that
were repaid following its acquisition by Saks Global Enterprises
LLC, at the issuer's request. At the time of the withdrawal, our
outlook on NMG was stable.
NORRIS TRAINING: Gets Two-Week Extension to Use Cash Collateral
---------------------------------------------------------------
Norris Training Systems, LLC and affiliates received approval from
the U.S. Bankruptcy Court for the Western District of Texas, Austin
Division, to use cash collateral and provide adequate protection
for an additional two weeks to allow them to continue to operate
their business while working towards the prosecution and
confirmation of a plan of reorganization.
The order authorized the Debtors to use cash collateral solely for
the two-week period from January 19 to February 3.
The Debtors and Modern Bank have previously agreed to extend the
cash collateral period through the week of January 19, 2025. In the
weeks since the Final Cash Collateral Order was entered, the
Debtors have been negotiating with their landlords and Lender to
formulate a consensual plan of reorganization.
The Debtors have continuously complied with the terms of the Final
Cash Collateral Order, including delivering timely variance reports
to the Lender and using the cash collateral only for permitted
uses. The Debtors are confident they will continue to be in
compliance.
Modern Bank, as lender, is represented by:
Alex R. Rovira, Esq.
Troutman Pepper Hamilton Sanders LLP
875 Third Avenue New York, NY 10022
Telephone: (212) 704-6095
Fax: (212) 704-6288
Email: alex.rovira@troutman.com
About Norris Training
Systems
Norris Training Systems, LLC and its affiliates own and operate
general rental centers. Catering by Norris is a premium catering
Company in Houston and San Antonio. The Debtors also host meetings,
conferences, training programs, and/or trade shows.
Norris Training Systems, LLC and its affiliates filed their
voluntary petitions for relief under Chapter 11 of the Bankruptcy
Code (Bankr. W.D. Tex. Lead Case No. 24-10807) on July 10, 2024.
The petitions were signed by David Norris as president. The
Debtors estimated $10 million to $50 million in both assets and
liabilities.
Judge Shad Robinson presides over the case.
Jennifer F. Wertz, Esq., at JACKSON WALKER LLP, is the Debtor's
counsel.
NORTH CAROLINA PROPERTIES: Gets Interim OK to Use Cash Collateral
-----------------------------------------------------------------
North Carolina Properties, LLC received interim approval from the
U.S. Bankruptcy Court for the Northern District of Ohio, Eastern
Division, to use cash collateral until Feb. 15.
The Debtor requires the use of cash collateral to pay its regular
daily expenses including utilities, and its other costs of doing
business.
As adequate protection, lenders CV3, LLC and Monica M. Martines, as
Trustee of the Monica M. Martines Trust Dated January 8, 1997, were
granted post-petition replacement liens on all of the Debtor's
assets to the same extent and with the same validity and priority
as their pre-bankruptcy liens.
The Debtor was formed in 2021 by Andrew Martines and Stacy
Sternen-Martines to invest in real estate, specifically focusing on
Federal Opportunity Zone properties. They acquired several
properties in West Jefferson, North Carolina, including one they
redeveloped into a short-term rental. In 2023, the Martines formed
Marketing Solutions Direct, Inc. (MSD), an advertising franchise,
and secured a significant loan from Pinnacle Bank to finance the
acquisition. However, MSD began experiencing significant cash
losses due to declining revenues and increased costs. This led to
difficulties in repaying the loan, and Pinnacle Bank eventually
transferred the loan to their Special Assets Group and demanded
immediate repayment. Faced with this situation, the Debtor filed
for Chapter 11 bankruptcy as they believe it's the only way to
restructure their debts and save their business.
The Debtor entered into a credit agreement with its primary
prepetition lender, CV3 Financial Services, LLC. The Debtor
executed: (i) a loan agreement and security agreement; (ii) a
secured note; (iii) and a deed of trust, assignment of rents,
fixture filing, and security agreement, with CV3 on or about August
12, 2024, under which the Debtor borrowed approximately $600,000
from CV3.
To secure its prepetition obligations to CV3, the Debtor granted to
CV3 a security interest in the Debtor's property.
A copy of the motion is available at https://urlcurt.com/u?l=cecWB8
from PacerMonitor.com.
About North Carolina Properties LLC
North Carolina Properties LLC is an Ohio-based real estate company
headquartered in Akron.
North Carolina Properties LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Ohio Case No. 25-50059) on
January 15, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Alan M. Koschik handles the case.
The Debtor is represented by Anthony J. DeGirolamo, Esq., in
Canton, Ohio.
NORTHVOLT AB: Still Seeks Investor Commitments Amid Cash Shortage
-----------------------------------------------------------------
Wilfried Eckl-Dorna and Giulia Morpurgo of Bloomberg Law reports
that Northvolt AB is still working to secure investor commitments
to support its exit from Chapter 11 bankruptcy, according to
sources familiar with the matter.
The Swedish battery maker faces dwindling cash reserves as
potential investors remain cautious, waiting for others to take the
lead in ongoing funding discussions, the sources said, speaking on
condition of anonymity due to the confidential nature of the talks,
according to Bloomberg Law.
"Many parties have shown interest in Northvolt's financing
process," a company spokesperson said. "The company and its
advisers are actively conducting due diligence and engaging in
productive discussions with both strategic and financial
stakeholders."
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.
NOSTRUM LABORATORIES: Creditors to Help Market Co. After Turnover
-----------------------------------------------------------------
Ben Zigterman of Law360 Bankruptcy Authority reports that the
official committee of unsecured creditors in Nostrum Laboratories
Inc.'s Chapter 11 case has sought approval from a New Jersey
bankruptcy judge for expanded authority to assist investment bank
Raymond James in locating a buyer for the company's assets.
About Nostrum Laboratories
Nostrum Laboratories Inc. operates as a pharmaceutical company. The
Company offers sucralfate, and theophylline extended release (ER)
tablets, as well as piroxicam capsules, and carbamazepine ER
capsules.
Nostrum Laboratories Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 24-19611) on Sept. 30,
2024. In the petition filed by James Grainer, as chief financial
officer, the Debtor estimated assets between $50,000 and $100,000
and estimated liabilities between $10 million and $50,000.
The Honorable Bankruptcy Judge John K. Sherwood handles the case.
The Debtor is represented by David L. Bruck, Esq. at Greenbaum,
Rowe, Smith, et al.
OPTINOSE INC: Preliminary Q4 FY24 XHANCE Revenue Hits $22.4-Mil.
----------------------------------------------------------------
Optinose (NASDAQ:OPTN) announced preliminary unaudited XHANCE
(fluticasone propionate) net product revenue of $22.4 million for
the three months ended December 31, 2024.
"Our preliminary unaudited fourth quarter net product revenue of
$22.4 million is in line with our prior guidance and demonstrates a
sustained growth in XHANCE prescriptions through the fourth quarter
of 2024" stated CEO Ramy Mahmoud. "For prescriptions, we estimate
an approximately 20% sequential growth rate from third quarter to
fourth quarter 2024, which is encouraging as we continue to focus
on commercial execution and continued growth in the year ahead. We
look forward to reporting full financial results for fourth quarter
2024 and corporate updates in March."
The fourth quarter net product revenue and prescription growth rate
included in this press release are preliminary results based on the
information available to the Company at this time. Actual results
may vary materially from the preliminary results presented in this
press release due to the completion of the Company's financial
closing procedures, review adjustments and other developments or
information that may arise between now and the time the Company's
financial results for fourth quarter 2024 are finalized.
Additionally, the preliminary results have not been audited or
reviewed by the Company's independent registered public accounting
firm. Accordingly, you should not place undue reliance on this
preliminary data. The Company expects to report full financial
results for the fourth quarter of 2024 and corporate updates in
March.
About OptiNose Inc.
Yardley, Pa.-based OptiNose, Inc. is a specialty pharmaceutical
company focused on the development and commercialization of
products for patients treated by ear, nose and throat (ENT) and
allergy specialists.
Philadelphia. Pa.-based Ernst & Young LLP, the Company's auditor
since 2016, issued a "going concern" qualification in its report
dated March 7, 2024, citing that the Company has incurred recurring
losses from operations, has a working capital deficiency and
expects to not be in compliance with certain debt covenants, and
has stated that substantial doubt exists about the Company's
ability to continue as a going concern.
As of September 30, 2024, OptiNose had $131.02 million in total
assets, $172.12 million in total liabilities, and $41.1 million in
total shareholders' deficit.
ORB TERTIUS: Case Summary & Three Unsecured Creditors
-----------------------------------------------------
Debtor: Orb Tertius LLC
6224 W. Manchester Ave.
Los Angeles, CA 90059
Business Description: Orb Tertius is primarily engaged in the
retail sale of prepared food and drinks for
on-premise or immediate consumption.
Chapter 11 Petition Date: January 22, 2025
Court: United States Bankruptcy Court
Central District of California
Case No.: 25-10482
Judge: Hon. Deborah J Saltzman
Debtor's Counsel: Matthew D. Resnik, Esq.
RHM LAW LLP
17609 Ventura Blvd., Suite 314
Encino, CA 91316
Tel: (818) 285-0100
Fax: (818) 855-7013
Email: matt@rhmfirm.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Milton Sznaider as managing member.
A full-text copy of the petition, which includes a list of the
Debtor's three unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/XHOJR2Y/Orb_Tertius_LLC__cacbke-25-10482__0001.0.pdf?mcid=tGE4TAMA
ORB TERTIUS: Seeks Chapter 11 Bankruptcy Protection in California
-----------------------------------------------------------------
On January 23, 2025, ORB Tertius 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 ORB Tertius LLC
ORB Tertius LLC is a Los Angeles-based food services company,
operates from its location at 6224 W. Manchester Ave.
ORB Tertius LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10482) on January
23, 2025. In its petition, the Debtor reports estimated assets
between $100,000 and $500,000 and estimated liabilities between $1
million and $10 million.
Honorable Bankruptcy Judge Deborah J. Saltzman handles the case.
The Debtor is represented by:
Matthew D. Resnik, Esq.
Rhm Law LLP17609 Ventura Boulevard, Suite 314
Encino, CA 91316
Tel: (818) 285-0100
Fax: (818) 855-7013
Email: nina@rhmfirm.com
OSTEEN'S LOAD: Gets Interim OK to Use Cash Collateral Until Feb. 19
-------------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida,
Orlando Division granted Osteen's Load and Go, LLC interim
authorization to use cash collateral until Feb. 19.
The company intends to use all funds that might be considered cash
collateral to pay its operating expenses and costs associated with
administering its Chapter 11 case.
The company's budget shows total monthly operating expenses of
$92,118.04 for January and for February.
As of the petition date, Osteen's had $12,823.96 of cash in deposit
accounts.
As adequate protection, the U.S. Small Business Administration, a
secured creditor, was granted a post-petition lien on cash
collateral to the same extent and with the same validity and
priority as its pre-bankruptcy lien.
The next hearing will be held on Feb. 19.
About Osteen's Load and Go
Osteen's Load and Go, LLC is a dumpster rental service provider
serving residential and commercial customers.
Osteen's sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. M.D. Fla. Case No. 24-06079) on November 7, 2024, with
$100,001 to $500,000 in assets and $1 million to $10 million in
liabilities. Larry Osteen, manager, signed the petition.
Judge Tiffany P. Geyer oversees the case.
The Debtor is represented by:
Jeffrey Ainsworth, Esq.
BransonLaw, PLLC
1501 E. Concord Street
Orlando, FL 32803
Tel: 407-498-6834
Email: jeff@bransonlaw.com
PARKER ESTATES: Court OKs Continued Use of Cash Collateral
----------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Pennsylvania
issued an interim order allowing Parker Estates, LLC and its
affiliates to continue to use cash collateral until Feb. 12.
The interim order authorized the companies to use the cash
collateral only for payments set forth in their projected budget
and prohibited the companies from disposing of any assets outside
the ordinary course of business.
As adequate protection, pre-bankruptcy secured lenders were granted
replacement liens on and security interests in the companies'
property.
The final hearing is scheduled for Feb. 12.
About Parker Estates LLC
Parker Estates, LLC filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. E.D. Pa. Case No. 24-11539) on May
6, 2024, with $500,001 to $1 million in assets and $100,001 to
$500,000 in liabilities.
Judge Ashely M. Chan presides over the case.
The Debtor is represented by:
Ronald S. Gellert, Esq.
Gellert Seitz Busenkell & Brown, LLC
Tel:302-425-5806
Email: rgellert@gsbblaw.com
PAVMED INC: Stockholders OKs Debt Exchange at 2025 Special Meeting
------------------------------------------------------------------
PAVmed Inc. held a special meeting of stockholders on January 15,
2025. Stockholders representing approximately 53.8% of the shares
outstanding and entitled to vote were present in person or by
proxy. At the 2025 Special Meeting, the stockholders approved all
the matters considered.
Proposals:
1. (i) A proposal to approve, for the purposes of Listing Rule
5635 of The Nasdaq Stock Market LLC, the issuance of shares of the
Company's common stock upon conversion of the Series C Convertible
Preferred Stock of the Company pursuant to the Certificate of
Designations for such Series C Preferred Stock, which shares of
Series C Preferred Stock are to be issued by the Company under the
Exchange Agreement, dated as of November 15, 2024.
(ii) A proposal to approve, for the purposes of Listing Rule
5635 of Nasdaq, the issuance of shares of the Company's common
stock upon conversion of the Series C Preferred Stock of the
Company pursuant to the Certificate of Designations, which shares
of Series C Preferred Stock are to be issued by the Company under
the Securities Purchase Agreement, dated as of November 20, 2024.
A fuller description of the transactions is set forth on pages 6 to
10 of the Company's definitive proxy statement on Schedule 14A
filed with the Securities and Exchange Commission on December 6,
2024.
The Company expects to consummate the exchange of debt for Series C
Preferred Stock pursuant to the Debt Exchange Agreement and the
sale of Series C Preferred Stock pursuant to the Securities
Purchase Agreement as promptly as practicable, and in any event
prior to January 31, 2025.
2. A proposal to approve an amendment to the Company's certificate
of incorporation, as amended, to increase the total number of
shares of common stock the Company is authorized to issue by
200,000,000 shares, from 50,000,000 shares to 250,000,000 shares.
A fuller description of the amendment to the Certificate of
Incorporation is set forth on pages 11 to 12 of the Definitive
Proxy Statement.
A certificate of amendment reflecting the amendment to the
Certificate of Incorporation was filed with the Delaware Secretary
of State on January 15, 2025 and became effective on such date.
Because each of the foregoing proposals was approved, the
adjournment proposal was not presented.
About PAVmed
PAVmed Inc. is a diversified commercial-stage medical technology
company operating in the medical device, diagnostics, and digital
health sectors. Its subsidiary, Lucid Diagnostics Inc. (NASDAQ:
LUCD), is a commercial-stage cancer prevention medical diagnostics
company that markets the EsoGuard Esophageal DNA Test and EsoCheck
Esophageal Cell Collection Device -- the first and only commercial
tools for widespread early detection of esophageal precancer to
mitigate the risks of esophageal cancer deaths. Its other
subsidiary, Veris Health Inc., is a digital health company focused
on enhanced personalized cancer care through remote patient
monitoring using implantable biologic sensors with wireless
communication along with a custom suite of connected external
devices. Veris is concurrently developing an implantable
physiological monitor, designed to be implanted alongside a
chemotherapy port, which will interface with the Veris Cancer Care
Platform.
New York, NY-based Marcum LLP, the Company's auditor since 2019,
issued a "going concern" qualification in its report dated March
25, 2024, citing that the Company has a significant working capital
deficiency, has incurred significant losses, and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
As of June 30, 2024, PAVmed had $39.41 million in total assets,
$58.06 million in total liabilities, and a total stockholders'
deficit of $18.64 million.
PETER F. REILLY: Seeks Chapter 11 Bankruptcy Protection
-------------------------------------------------------
On January 22, 2025, Peter F. Reilly Storage Inc. filed Chapter 11
protection in the U.S. Bankruptcy Court for the Southern District
of New York.
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 Peter F. Reilly Storage Inc.
Peter F. Reilly Storage Inc. is a New York-based storage company
operating at 475 Amsterdam Ave., New York.
Peter F. Reilly Storage Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-10096) on
January 22, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $500,000 and $1 million each.
The Debtor is represented by:
Christopher J. Reilly, Esq.
Klestadt Winters Jureller Southard & Stevens, LLP
200 West 41st Street, 17th Floor
New York, NY 10036
Phone: 212-972-3000
Fax: 212-972-2245
PROSPECT MEDICAL: Wants Hospital Sale Suit Transferred to Texas
---------------------------------------------------------------
Rick Archer of Law360 reports that Prospect Medical Holdings, a
national hospital chain, told a Connecticut federal judge on
January 22, 2025, that its recent Texas bankruptcy filing justifies
moving a lawsuit over a failed $435 million sale of its Connecticut
hospitals to Texas.
About Prospect Medical Holdings
Prospect Medical Holdings owns Roger Williams Medical Center, Our
Lady of Fatima Hospital, and several other healthcare facilities.
Prospect Medical Holdings sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 25-80002) on
January 11, 2025. In the petition filed by Paul Rundell, as chief
restructuring officer, the Debtor reports estimated assets and
liabilities between $1 billion and $10 billion each.
Honorable Bankruptcy Judge Stacey G. Jernigan handles the case.
The Debtors' General Bankruptcy Counsel is Thomas R. Califano,
Esq., and Rakhee V. Patel, Esq., at Sidley Austin LLP, in Dallas,
Texas, and William E. Curtin, Esq., Patrick Venter, Esq., and Anne
G. Wallice, Esq., at Sidley Austin LLP, in New York.
The Debtors' Financial Advisor is ALVAREZ & MARSAL NORTH AMERICA,
LLC.
The Debtors' Investment Banker is HOULIHAN LIKEY, INC.
The Debtors' Claims, Noticing & Solicitation Agent is OMNI AGENT
SOLUTIONS, INC.
REITER BROTHERS: Files Emergency Bid to Use Cash Collateral
-----------------------------------------------------------
Reiter Brothers, Inc. asked the U.S. Bankruptcy Court for the
Southern District of Florida, Fort Lauderdale Division, for
authority to use cash collateral and provide adequate protection.
The Debtor requires the use of cash collateral to meet current
obligations or acquire goods and services necessary for their
day-to-day operations. Additionally, the Debtor has to make payroll
payments by January 24, 2025.
The parties that assert interest in the cash collateral are the
U.S. Small Business Administration, Fox Funding Group, LLC, and
Fundomate Technologies, Inc.
As adequate protection for the use of cash collateral, the
Claimants will be granted replacement liens on all post-petition
property that is of the same nature and type of each Claimant's
pre-petition collateral, payments of insurance, and later when the
claims are clarified and allowed, cash payments: monthly payments
at a reasonable interest rate.
A copy of the motion is available
at https://urlcurt.com/u?l=o0Ry37 from PacerMonitor.com.
About Reiter Brothers Inc.
Reiter Brothers Inc. is a Hollywood, Florida-based furniture
manufacturer operating as Vannucchi Brothers.
Reiter Brothers filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-10190) on January
9, 2025, with $50,000 to $100,000 in assets and $500,000 to $1
million in liabilities.
Judge Scott M. Grossman oversees the case.
Stiberman Law, P.A. is the Debtor's legal counsel.
REVA HOSPITALITY: Gets Final OK to Use Cash Collateral
------------------------------------------------------
Reva Hospitality Wylie, LLC received final approval from the U.S.
Bankruptcy Court for the Northern District of Texas to use its
secured lenders' cash collateral to pay operating expenses.
The final order authorized the company to use the cash collateral
of Louisiana National Bank and the U.S. Small Business
Administration from Dec. 30, 2024 until confirmation of its Chapter
11 plan or entry of a court order modifying, restricting, or
terminating its authority to use the collateral.
As adequate protection, the lenders were granted post-petition
liens co-extensive with their pre-bankruptcy liens on all property
currently owned or to be acquired by the company.
As additional protection, Reva was ordered to make monthly payments
of $46,134.90 to Louisiana National Bank, to be applied to debt
service.
Reva is prohibited from paying wages or salaries to insiders
without prior written approval from the secured lenders.
Louisiana National Bank can be reached through its counsel:
Steven T. Holmes, Esq.
Cavazos Hendricks Poirot, PC
Suite 570, Founders Square
900 Jackson Street
Dallas, TX 75202
Direct Dial: (214) 573-7305
Fax: (214) 573-7399
Email: sholmes@chfirm.com
About Reva Hospitality Wylie
Reva Hospitality Wylie, LLC, doing business as Holiday Inn Express
Wylie, filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. N.D. Texas Case No. 24-30973) on April 1,
2024, with $1 million to $10 million in both assets and
liabilities. Mehul Gajera, manager, signed the petition.
Judge Scott W. Everett oversees the case.
The Debtor is represented by:
Joyce W. Lindauer, Esq.
Joyce W. Lindauer Attorney, PLLC
Tel: 972-503-4033
Email: joyce@joycelindauer.com
ROCKY MOUNTAIN: Posts $847,000 Net Loss in Fiscal Q3
----------------------------------------------------
Rocky Mountain Chocolate Factory, Inc. filed with the U.S.
Securities and Exchange Commission its Quarterly Report on Form
10-Q reporting a net loss of $847,000 on $7.9 million of total
revenues for the three months ended November 30, 2024, compared to
a net loss of $757,000 on $7.7 million of total revenues for the
three months ended November 30, 2023.
For the nine months ended November 30, 2024, the Company reported a
net loss of $3.2 million on $20.7 million of total revenues,
compared to a net loss of $2.6 million on $20.7 million of total
revenues for the same period in 2023.
As of November 30, 2024, the Company had $21.6 million in total
assets, $11.8 million in total liabilities, and $9.8 million in
total shareholders' equity.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/ms39s94a
About Rocky Mountain Chocolate Factory
Durango, Colo.-based Rocky Mountain Chocolate Factory, Inc. is an
international franchisor, confectionery producer, and retail
operator. Founded in 1981, the Company produces an extensive line
of premium chocolate candies and other confectionery products.
As of August 31, 2024, Rocky Mountain Chocolate Factory had $21.1
million in total assets, $10.6 million in total liabilities, and
$10.5 million in total shareholders' equity.
Going Concern
In accordance with ASC 205-40, Going Concern, the Company's
management has evaluated whether there are conditions and events,
considered in the aggregate, that raise substantial doubt about the
Company's ability to continue as a going concern within one year
after the date the accompanying financial statements were issued.
During the nine months ended November 30, 2024, the Company
incurred a net loss of $3.2 million and used cash in operating
activities of $7.8 million. Although the Company paid off the
outstanding debt with Wells Fargo at maturity through the issuance
of a $6.0 million note payable, the Company still has incurred
losses and used cash from operating activities. These factors raise
substantial doubts about the Company's ability to continue as a
going concern within the next 12 months.
ROTM LOFTS: Court OKs Continued Use of Cash Collateral
------------------------------------------------------
The ROTM Lofts, LLC received second interim approval from the U.S.
Bankruptcy Court for the District of Maine to continue to use its
cash collateral to pay its operating expenses.
The second interim order authorized the company to provide adequate
protection to pre-bankruptcy lienholders, including Accelerated
Capital Partners, LLC, in the form of replacement liens on all
assets of the company and its estate, with the same priority as
their pre-bankruptcy liens.
ROTM is prohibited from making payments to Northeast Asset
Management or any other insider of the company for maintenance and
repairs.
The next hearing is scheduled for March 13.
About The ROTM Lofts
The ROTM Lofts, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Maine Case No. 24-10257) on November 21,
2024. In the petition signed by Geoffrey Houghton, manager and
authorized party, the Debtor disclosed up to $10 million in both
assets and liabilities.
Judge Michael A. Fagone oversees the case.
The Debtor is represented by:
Adam R. Prescott, Esq.
Bernstein Shur Sawyer & Nelson, PA
Tel: 207-228-7145
Email: aprescott@bernsteinshur.com
SCHULTE INC: Seeks Continued Cash Collateral Access
---------------------------------------------------
Schulte, Inc. asked the U.S. Bankruptcy Court for the District of
New Hampshire for authority to use up to $489,879 of cash
collateral and provide adequate protection for the period from
February 1 to April 30.
The Debtor requires the use of cash collateral to pay post-petition
operating costs and expenses projected to be incurred in the
ordinary course of business, including Taxes and the Adequate
Protection Payments.
The U.S. Small Business Administration holds a first priority
Record Lien on cash collateral resulting from the Debtor's ordinary
course business operations.
On the first day of the Use Term, Debtor expects to have Beginning
Cash of $76,611. The Debtor projects the receipt of $477,161 during
the Use Period. The Debtor has paid the approved fees, costs and
expenses of the Subchapter V Trustee and Debtor’s Financial and
Tax Consultant and a small part of those approved for Debtor’s
Counsel. Debtor expects cash to decrease slightly from $76,611 on
the first day of the Use Term to $63,893 at the end of the Use
Term. In this regard, however, Debtor plans to pay (a) $800 and
$104,290 to SBA and Equipment Secured Creditors in adequate
protection payments, (b) $52,744 to professionals on account of
approved interim fee and expense applications and (c) $36,248 into
its Working Capital Reserve.
The Debtor also asked for permission to provide SBA with a monthly
adequate protection payment in the amount of $329 and Caterpillar
Financial Services Corporation, First Citizens Bank & Trust,
Mitsubishi HC Capital America, Inc., Volvo Financial Services and
Wells Fargo.
Each record lienholder that holds or claim to hold a valid and
enforceable, perfected record lien on the collateral will be
granted a binding, enforceable and automatically perfected
replacement lien or liens on the Debtor’s post-petition
property.
A court hearing is set for Jan. 29.
A copy of the motion is available at https://urlcurt.com/u?l=OIyHo6
from PacerMonitor.com.
About Schulte Inc.
Schulte Inc., a company in Newton, N.H., filed its voluntary
Chapter 11 petition (Bankr. D.N.H. Case No. 24-10225) on April 8,
2024, with $1 million to $10 million in both assets and
liabilities.
Judge Bruce A. Harwood oversees the case.
William S. Gannon, PLLC serves as the Debtor's legal counsel.
The U.S. Small Business Administration is represented by:
Michael McCormack, Esq.
U.S. Attorney's Office
53 Pleasant Street Concord, NH 03301
Tel: (603) 225-1552
Email: michael.mccormack2@usdoj.gov
SCORPIUS HOLDINGS: Cancels Planned Reverse Stock Split
------------------------------------------------------
Scorpius Holdings, Inc., confirmed in a press release on January 17
that it will not proceed with the planned 1-for-20 reverse stock
split of its common stock, which had been previously announced on
January 16.
About Scorpius Holdings
Headquartered in Morrisville, NC, Scorpius Holdings, Inc. --
http://www.scorpiusbiologics.com/-- is an integrated contract
development and manufacturing organization (CDMO) focused on
rapidly advancing biologic programs to the clinic and beyond.
Scorpius offers a broad array of analytical testing, process
development, and manufacturing services to pharmaceutical and
biotech companies at its state-of-the-art facilities in San
Antonio, TX. With an experienced team and new, purpose-built U.S.
facilities, Scorpius is dedicated to transparent collaboration and
flexible, high-quality biologics biomanufacturing.
Raleigh, North Carolina-based BDO USA, P.C., the Company's auditor
since 2012, issued a "going concern" qualification in its report
dated April 26, 2024, citing that the Company has suffered
recurring losses from operations and has not generated significant
revenue or positive cash flows from operations. These factors
raise substantial doubt about the Company's ability to continue as
a going concern.
SEATON INVESTMENTS: Claims to be Paid from Rental Income
--------------------------------------------------------
Broadway Avenue Investments LLC, SLA Investments LLC, Negev
Investments LLC, Alan Gomperts, Daniel Halevy, and Susan Halevy,
debtor affiliates of Seaton Investments LLC, submitted a Disclosure
Statement and Plan of Reorganization dated January 16, 2025.
The Corporate Debtors are organized as LLCs. The Debtors conducted
100% of its business activity in California since 1983. Before this
case was commenced on March 19, 2024 (Corporate Debtors) and March
18 (Individual Debtors), the Debtor, was in the business of
developing real estate.
These Bankruptcy Cases present two real estate investments that
require a restructuring to address defaults on their senior loans:
(1) the buildings at 440 Seaton Street, Los Angeles, CA, 90013 (the
"Seaton Building"), and 421 Colyton Street, Los Angeles, CA, 90013
(the "Colyton Building"), which together are operated as an
economic unit (the "Seaton/Colyton Buildings") and are owned by
Debtors Seaton and Colyton, respectively; and (2) the building at
737 S. Broadway, Los Angeles, CA, 90014 (the "Broadway Building"),
owned by Debtor Broadway.
Archway has commenced an action against the Individual Debtors
where it has sought prejudgment writs of attachment against Daniel
Halevy and Alan Gomperts. Archway has also commenced foreclosure
proceedings against the properties owned by the Individual Debtors,
SLA, and Negev to recover on their guarantees and collateral. KDM
has commenced an action against Seaton and Colyton for appointment
of a receiver.
Seaton and Colyton have agreed with KDM on terms to resolve KDM's
debt and to allow the Seaton and Colyton bankruptcy cases to be
dismissed. Broadway is projecting to confirm a whole-building lease
with financing that will drive cash flow to allow for plan
confirmation and increase property values immediately.
The Plan calls for Class 4 secured claims to receive regular
interest payments during the course of the Plan followed by a
balloon payment at the end of year 3. In order to make the balloon
payment and complete Plan payments, Debtors will need to refinance
or sell those properties that secure loans with projected balloon
payments. How easily Debtors will be able to do this depends upon a
multitude of micro and macro-economic factors such as the value of
the properties and the strength of the applicable real estate
market.
The allowed unsecured claims against Broadway total $380,000 and
creditors will receive a distribution of 100% of their allowed
claims.
The allowed unsecured claims against SLA total $62,000 and
creditors will receive a distribution of 100% of their allowed
claims.
The allowed unsecured claims against Negev total $1,680 and
creditors will receive a distribution of 100% of their allowed
claims.
The allowed unsecured claims against A. Gomperts total $1,868 and
creditors will receive a distribution of 100% of their allowed
claims.
The allowed unsecured claims against D. Halevy total $166,000 and
creditors will receive a distribution of 100% of their allowed
claims.
The allowed unsecured claims against S. Halevy
Under the Plan, Shareholders simply retain their shares of stock.
The Debtors ability to generate income is tied to rents on
commercial properties, single family homes, and apartments. If the
Debtors were to lose tenants or not lease up space on the timeline
projected, such circumstances could have a negative impact on the
implementation of the Plan. The Debtors’ Plan accounts for
regular business and economic fluctuations that can cause rental
income to fluctuate.
A full-text copy of the Disclosure Statement dated January 16, 2025
is available at https://urlcurt.com/u?l=3D7mPG from
PacerMonitor.com at no charge.
Counsel for Broadway Avenue Investments, LLC, SLA Investments, LLC,
Negev Investments, LLC:
Daniel J. Weintraub, Esq.
Weintraub Zolkin Talerico & Selth LLP
11766 Wilshire Boulevard, Suite 450
Los Angeles, CA 90025
Tel: (310) 207-1494
Fax: (310) 442-0660
Email: dzolkin@wztslaw.com
Counsel to Debtors Alan Gomperts, Daniel Halevy, and Susan Halevy:
Zev Shechtman, Esq.
Saul Ewing LLP
1888 Century Park East, Suite 1500
Los Angeles, CA 90067
Telephone: (310) 255-6100
Facsimile: (310) 255-6200
Email: Zev.Shechtman@saul.com
About Seaton Investments
Seaton Investments, LLC, is a Single Asset Real Estate debtor (as
defined in 11 U.S.C. Section 101(51B)).
Seaton Investments filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No.
24-12079) on March 19, 2024, listing $10 million to $50 million in
both assets and liabilities. The petition was signed by Alan D.
Gomperts as managing member.
Judge Vincent P. Zurzolo presides over the case.
Derrick Talerico, Esq., at Weintraub Zolkin Talerico & Selth, LLP,
is the Debtor's legal counsel.
SEELOS THERAPEUTICS: U.S. Trustee Appoints Creditors' Committee
---------------------------------------------------------------
The U.S. Trustee for Region 2 appointed an official committee to
represent unsecured creditors in the Chapter 11 case of Seelos
Therapeutics Inc.
The committee members are:
1. Syneos Health
1030 Sync Street
Morrisville, NC 27569
Attn: Wesley Roberts, Esq.
984-710-8555
wesley.roberts@syneoshealth.com
2. Altasciences Clinical Los Angeles Inc.
Altasciences Professional Los Angeles, P.C.
5630 Cerritos Avenue
Cypress, CA 90630
Attn: Mariano Rodriguez
438-468-6373
mrodriguez@altasciences.com
3. The General Hospital Corporation
d/b/a Massachusetts General Hospital
55 Fruit Street
Boston, MA 02114
Attn: Allison Lennon, Esq.
617-726-2000
alennon2@mgb.or
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Seelos Therapeutics Inc.
Seelos Therapeutics Inc., a publicly traded biopharmaceutical
company in New York.
Seelos Therapeutics Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-11987) on November 16,
2024. In its petition, the Debtor reports estimated liabilities
between $10 million and $50 million.
The Debtor is represented by:
Gabriel Del Virginia, Esq.
Law Offices of Gabriel Del Virginia
30 Wall Street,
12th Floor
New York, NY 10005
P: 212-371-5478
Fax: 212-371-0460
SENIOR CHOICE: Asset Sale Proceeds to Fund Plan Payments
--------------------------------------------------------
Senior Choice, Inc., filed with the U.S. Bankruptcy Court for the
Western District of Pennsylvania a Disclosure Statement to
accompany Chapter 11 Plan of Liquidation dated January 17, 2025.
The Debtor is a Pennsylvania nonprofit corporation that previously
provided housing, healthcare and other related services to elderly
residents through the operation of nursing, personal care and
independent living facilities.
The Debtor formerly owned and operated three senior living
facilities in Indiana (Beacon Ridge), Somerset (The Patriot) and
Johnstown (The Atrium), Pennsylvania. Leading up to the filing,
Senior Choice faced significant operational headwinds and staffing
shortages, both caused by the COVID-19 pandemic, as well as
increased wages, inflation and a cash shortage once governmental
COVID funding that Senior Choice had received was exhausted. In
addition, the Debtor faced significant financial hardship at The
Atrium, which was caused by low reimbursement rates and
disproportionate amounts of free-care provided to residents.
The Debtor and its professionals filed this case only after taking
steps to ensure that this bankruptcy case would be successful
(i.e., (i) The Atrium building on Main Street in Johnstown would be
sold to a third party, which would hopefully benefit the community;
(ii) Beacon Ridge would be sold as a going concern to a third
party, which would maintain jobs and high-quality service for
residents and their families in Indiana; and (iii) The Patriot
would be sold as a going concern to a third party, which would
maintain jobs and high-quality service for residents and their
families in Somerset).
The Debtor and its professionals kept the Indenture Trustee
informed of their efforts in this regard every step along the way,
including the pre-Petition Date closure of the Atrium facility,
efforts in identifying buyers for each facility, the negotiations
concerning the respective purchase and sale agreements, and the
anticipated commencement of the chapter 11 case.
Prior to the filing, the Debtor and its professionals worked
diligently to stay current with all of its taxes, utility payments,
trade debt, and nursing home assessment payments. Additionally, the
Debtor negotiated with buyers of both operating facilities (Beacon
Ridge and The Patriot) resulting in the buyers assuming $75,000 and
$50,000 of unpaid prepetition trade debt attributable to each of
the respective facilities.
As a result, the Debtor files its Plan and Disclosure Statement
with (i) limited, if any remaining unsecured claims (which to the
extent there are any remaining unsecured claims, the Debtor
anticipates a satisfactory distribution thereto from a non
objectionable carve-out by the Indenture Trustee), (ii) no post
petition administrative claims and (iii) no tax claims. Because of
the efforts of the Debtor and its professionals, all allowed trade
claims, all tax claims and all administrative claims will have been
satisfied.
Additionally, all postpetition medical assessment payments due and
owing to the Commonwealth of Pennsylvania have been paid in full.
Finally, and very significantly, the Indenture Trustee will receive
millions of dollars more than originally anticipated. By any
account, this chapter 11 case was a success.
Upon further review of the Schedules and the Debtor's books and
records, the Debtor has determined that several persons listed on
the Schedules should not have been listed. Accordingly, the Debtor
has filed a motion to amend its Schedules to correct same. As a
result of these efforts, the Debtor anticipates that there will be
no unpaid unsecured claims, except for the deficiency claim held by
the Indenture Trustee. The Debtor has negotiated a carve-out of up
to $25,000 for distribution to general unsecured claims (excluding
the unsecured deficiency claim held by the Indenture Trustee), if
any.
On the Effective Date, the Debtor's cash on hand and professional
fee retainers will be used to satisfy administrative claims,
including professional fee allowances and general unsecured, as the
case may be, with any remaining cash on hand and accounts
receivable to be distributed to the Indenture Trustee thereafter
pursuant to the Plan.
The Debtor's management company, Affinity Health Services, LLC
provided essential operational, financial and other support and
management services to the Debtor prior to the Petition Date and
throughout the instant proceedings. In an effort to streamline the
Debtor's remaining obligations and responsibilities, Affinity has
agreed to provide ongoing services through the closure of this case
and dissolution of the Debtor.
A full-text copy of the Disclosure Statement dated January 17, 2025
is available at https://urlcurt.com/u?l=Jyb3Af from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Morris S. Bauer, Esq.
DUANE MORRIS, LLP
One Riverfront Plaza
1037 Raymond Boulevard, Suite 1800
Newark, NJ 07102-5429
Tel: (973) 424-2037
Email: msbauer@duanemorris.com
About Senior Choice Inc.
Senior Choice, Inc., operates as a non-profit organization. It
provides inpatient nursing and rehabilitative services to patients
who requires continuous health care.
Senior Choice filed a Chapter 11 petition (Bankr. W.D. Pa. Case No.
24-70040) on Feb. 8, 2024, with $1 million to $10 million in assets
and $10 million to $50 million in liabilities.
Judge Jeffery A Deller presides over the case.
The Debtor tapped Duane Morris, LLP as bankruptcy counsel; Nye,
Stirling, Hale, Miller & Sweet, LLP as conflicts counsel and
co-counsel with Duane Morris; and FTI Consulting, Inc. as financial
advisor.
SILVER AIRWAYS: Court Extends Use of Cash Collateral Until Jan. 30
------------------------------------------------------------------
Silver Airways, LLC and Seaborne Virgin Islands, Inc. received
interim approval from the U.S. Bankruptcy Court for the Southern
District of Florida, Fort Lauderdale Division, to use cash
collateral until Jan. 30, marking the second extension since the
companies' Chapter 11 filing.
The court previously issued an interim order, allowing the
companies to access the cash collateral of secured lenders until
Jan. 14 only.
Secured lenders, including Brigade Agency Services, LLC, Argent
Funding, LLC, and Volant SVI Funding, LLC were granted replacement
liens on personal property of the companies junior and subordinate
to the carve-out.
As additional protection, secured lenders will be granted a
superpriority administrative expense claim in the amount of any
diminution in the value of their cash collateral.
The next hearing is scheduled for Jan. 30.
Brigade can be reached through its counsel:
Frank P. Terzo, Esq.,
Nelson Mullins Riley & Scarborough, LLP
100 S.E. 3rd Avenue, Suite 2700
Fort Lauderdale, FL 33394
Telephone: 954-764-7060
Fax: 954-761-8135
Email: frank.terzo@nelsonmullins.com
Argent Funding and Volant can be reached through their counsel:
Regina Stango Kelbon, Esq.
Blank Rome, LLP
1201 N. Market Street, Suite 800
Wilmington, DE 19801
Phone: +1.302.425.6400
Fax: +1.302.425.6464
regina.kelbon@blankrome.com
About Silver Airways
Silver Airways, LLC is a regional U.S. airline operating flights
between gateways in Florida, the Southeast and The Bahamas. The
Silver Airways fleet is comprised of modern, state of the art
aircraft with reliable, fuel-efficient turbo-prop engines.
In the summer of 2018, Silver completed the acquisition of Seaborne
Airlines, a San Juan, Puerto Rico-based air carrier serving
destinations throughout Puerto Rico, the U.S. Virgin Islands, and
other countries in the Caribbean. Seaborne provides connections
throughout the Caribbean via the carrier's hub in San Juan, while
also serving as the most critical link between St. Croix and St.
Thomas with the carrier's seaplane operation.
Silver Airways and Seaborne Virgin Islands, Inc. filed Chapter 11
petitions (Bankr. S.D. Fla. Lead Case No. 24-23623) on December 30,
2024. At the time of the filing, Silver Airways reported $100
million to $500 million in assets and liabilities while Seaborne
reported $1 million to $10 million in assets and liabilities.
Judge Peter D. Russin oversees the cases.
The Debtors are represented by:
Brian P. Hall, Esq.
Tel: 404-815-3537
Email: bhall@sgrlaw.com
SOBR SAFE: Thomas Corley Holds 19.6% Equity Stake
-------------------------------------------------
Thomas John Corley disclosed in a Schedule 13G/A filed with the
U.S. Securities and Exchange Commission that as of January 15,
2025, he beneficially owned 460,000 shares of SOBR Safe, Inc.'s
common stock, representing 19.6% of the 2,3407,33 outstanding
shares as reported on the S1/A filed December 10, 2024.
Mr. Corley may be reached at:
132 Washington Place
State College, PA 16801
A full-text copy of Mr. Corley's SEC Report is available at:
https://tinyurl.com/4feeypx5
About SOBR Safe, Inc.
SOBR Safe, Inc. provides non-invasive technology to quickly and
humanely identify the presence of alcohol in individuals. These
technologies are integrated within the Company's robust and
scalable data platform, which produces statistical and measurable
user and business data. The Company's mission is to save lives,
increase productivity, create significant economic benefits, and
positively impact behavior. To this end, SOBR Safe has developed
the scalable, patent-pending SOBRsafe software platform for
non-invasive alcohol detection and identity verification.
As of June 30, 2024, SOBR Safe had $5,122,244 in total assets,
$1,431,746 in total liabilities, and $3,690,498 in total
stockholders' equity.
Littleton, Colorado-based Haynie and Company, the Company's auditor
since 2023, issued a "going concern" qualification in its report
dated March 29, 2024, citing that the Company has incurred
recurring losses from operations and has limited cash liquidity and
capital resources to meet future capital requirements.
Management believes that cash balances of approximately $2,800,000
and positive working capital of approximately $1,900,000 as of
December 31, 2023, do not provide adequate capital for operating
activities for the next twelve months after the issuance of these
financial statements. However, management believes that actions
currently being taken to generate product and service revenues,
along with plans to access capital sources and implement expense
reduction tactics, provide the opportunity for the Company to
continue as a going concern. These plans are contingent upon the
successful execution of these actions. As such, substantial doubt
about the entity's ability to continue as a going concern has not
been alleviated as of December 31, 2023, according to the Company's
Annual Report for the year ended December 31, 2023.
SOFIA BROS: Voluntary Chapter 11 Case Summary
---------------------------------------------
Debtor: Sofia Bros., Inc.
475 Amsterdam Ave.
New York, NY 10024
Chapter 11 Petition Date: January 22, 2025
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 25-10095
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: $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/ZOQLR5I/Sofia_Bros_Inc__nysbke-25-10095__0001.0.pdf?mcid=tGE4TAMA
STAR ALLIANCE: Incurs $2.35 Million Net Loss in FY Ended June 30
----------------------------------------------------------------
Star Alliance International Corp. filed its Annual Report on Form
10-K with the Securities and Exchange Commission, reporting a net
loss of $2.35 million for the year ended June 30, 2024, compared to
a net loss of $11.17 million for the year ended June 30, 2023.
As of June 30, 2024, the Company had $704,714 in total assets,
$2.70 million in total liabilities, and a total stockholders'
deficit of $2 million.
Henderson, Nevada-based Bush & Associates CPA LLC, the Company's
auditor since 2024, issued a "going concern" qualification in its
report dated Jan. 14, 2025, 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.
The full text of the Form 10-K is available at no cost at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1614556/000168316825000339/star_i10k-063024.htm
About Star Alliance
Headquartered in Las Vegas, NV, Star Alliance International Corp is
an exploration-stage company focused on acquiring and developing
gold and other mining properties worldwide. It also emphasizes the
use of environmentally safe technologies in both the mining
industry and other business sectors. As of Jan. 14, 2025 (the date
of its Annual Report), the company has not yet commenced its mining
operations but anticipates beginning them in 2024. Additionally,
the company is exploring acquisitions of assets or majority
interests in companies related to artificial intelligence
technology and proprietary software technology in the fintech
sector.
TIMELINE CONSTRUCTION: Files Emergency Bid to Use Cash Collateral
-----------------------------------------------------------------
Timeline Construction, LLC asked the U.S. Bankruptcy Court for the
Southern District of Texas, Houston Division, for authority to use
cash collateral and provide adequate protection.
The Debtor requires the use of cash collateral to meet regular
expenses needed to continue its business operations. Most of these
funds are for payroll and vendor payments.
There are four creditors that claim liens on the Debtor's assets by
UCC1 Financing Statements. Two of the financing statements were
filed by CT Corporation System, each as representative for an
undisclosed party. The other creditors are the U.S. Small
Administration and BOKF, NA dba Bank of Texas.
As adequate protection for the use of cash collateral, the Debtor
will agree, with Court approval, to grant replacement liens to all
lienholders equal to those validly held pre-petition.
The adequate protection payment will be applied to the amount owed
the creditor. Any payments made in excess of a creditor's approved
claim or to an unsecured party may be subject to turnover in the
future under 11 U.S.C. section 549(a)(2)(A).
BOKF, NA dba Bank of Texas may be reached at:
PO Box 29775
Dallas, TX 75229-9775.
CT Corporation System may be reached at:
330 N Brand Blvd, Suite 700 SPRS
Glendale, California 91203.
A copy of the motion is available at https://urlcurt.com/u?l=afdmSN
from PacerMonitor.com.
About Timeline Construction LLC
Timeline Construction LLC operates as a full-service construction
company based in Houston, Texas, specializing in high-end
residential and commercial construction, build-outs, remodeling,
and renovations.
Timeline Construction LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-30212) on
January 10, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $10 million and $50 million each.
Thomas F. Jones, III, Esq., at Law Office of Thomas F Jones III
represents the Debtor as counsel.
TREVENA INC: Discontinues OLINVYK Sales for Financial Reasons
-------------------------------------------------------------
Trevena, Inc. disclosed in a Form 8-K Report filed with the U.S.
Securities and Exchange Commission that it discontinued sale of the
remaining dosage strengths (1 mg/mL and 2 mg/2 mL) of OLINVYK
(oliceridine) injection,effective December 31, 2024.
The decision was made for business and financial reasons and was
not due to any issues with the efficacy or safety of the product.
In addition, it was a decision made by Trevena and was not prompted
by a request from FDA.
About Trevena
Headquartered in Chesterbrook, Pa., Trevena, Inc. is a
biopharmaceutical company focused on developing and commercializing
novel medicines for patients affected by central nervous system, or
CNS, disorders. The Company's product, OLINVYK (oliceridine)
injection, was approved by the United States Food and Drug
Administration in August 2020. The Company initiated commercial
launch of OLINVYK in the first quarter of 2021.
Philadelphia, Pa.-based Ernst & Young LLP, the Company's auditor
since 2007, issued a "going concern" qualification in its report
dated April 1, 2024, citing that the Company has suffered recurring
losses from operations and has stated that substantial doubt exists
about the Company's ability to continue as a going concern.
As of September 30, 2024, Trevena had $19.2 million in total
assets, $42.5 million in total liabilities, and $23.3 million in
total stockholders' deficit.
TTW TRANSPORT: Updates Unsecured Claims Details; Amends Plan
------------------------------------------------------------
TTW Transport, Inc., submitted a Revised Third Amended Disclosure
Statement describing Chapter 11 Plan of Reorganization dated
January 17, 2025.
This proposed Chapter 11 Plan is a plan of liquidation.
Essentially, that means if the Court approves the Plan Proponent
proposed herein, all of the Debtor's assets will be monetized for
the benefit of all creditors to be paid pursuant to the priorities
of the Bankruptcy Code.
Furthermore, the assets to be monetized would include the net
proceeds from the three Avoidance Adversary Proceedings noted
herein, along with the net funds held in the Debtor's DIP account
maintained at Wells Fargo Bank. The Effective Date of the proposed
Plan is the first Business Day that is 15 calendar days after the
entry of the Confirmation Order, provided there has been no order
staying the effectiveness of the Confirmation Order ("Effective
Date").
As required by the Bankruptcy Code, the Plan classifies claims and
interests in various classes according to their right to priority.
The Plan states whether each class of claims or interests is
impaired or unimpaired. The Plan provides the treatment each class
will receive.
Priority tax claims are certain unsecured income, employment, and
other taxes described by Section 507(a)(8) of the Bankruptcy Code.
The Franchise Tax Board has filed a $3,664.85 Priority Claim. To
the extent that the Debtor does have an obligation under Section
507(a)(8) of the Bankruptcy Code, such claims will either be paid
in full on the Effective Date, or will be paid in full no more than
five years after the Petition Date.
Class 1 consists of Allowed General Unsecured Claims. After
liquidation of all the Debtor's assets, holders of Allowed Claims
will be paid their Allowed Claim. The Disbursing Agent reserves the
right to object to any and all claims in this class. The allowed
unsecured claims total $659,294.07 (as reflected on the Debtor's
Claims Docket as of January 10, 2025). This Class is impaired.
Class 2 consists of the Debtor's equity holders, comprised of Mr.
Ruben Dominguez. Any net estate assets will be distributed to the
Corporate Debtor's equity holder.
The Plan will be funded through the liquidation of property of the
Estate, including funds held in the Debtor's DIP Account, along
with the net proceeds from the Avoidance Litigation. The Disbursing
Agent may abandon any property of the Estate by complying with the
procedures in the Local Bankruptcy Rules.
A full-text copy of the Revised Third Amended Disclosure Statement
dated January 17, 2025 is available at
https://urlcurt.com/u?l=mP0QR8 from PacerMonitor.com at no charge.
Counsel for the Debtor:
Thomas J. Polis, Esq.
Polis & Associates, a Professional Law Corporation
19800 MacArthur Boulevard, Suite 1000
Irvine, CA 92612-2433
Telephone: (949) 862-0040
Facsimile: (949) 862-0041
E-mail: tom@polis-law.com
About TTW Transport Inc.
TTW Transport, Inc., is part of the general freight trucking
industry.
TTW Transport filed its voluntary petition for relief under Chapter
11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 24 10559) on
March 6, 2024, listing $4,368,589 in total assets and $1,044,059 in
total liabilities. The petition was signed by Jonathan Witkin as
direct of finance.
Judge Scott C Clarkson presides over the case.
Thomas J. Polis, at POLIS & ASSOCIATES, APLC, is the Debtor's
counsel.
VERA RESTAURANT: Seeks Chapter 11 Bankruptcy Protection in Florida
------------------------------------------------------------------
On January 22, 2025, Vera Restaurant 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 $100,000
and $500,000 in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About Vera Restaurant Inc.
Vera Restaurant Inc. was founded by restaurateurs with diverse
backgrounds but a common joy for delivering elevated experiences
through food, drinks, and music.
Vera Restaurant Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-10623) on January
22, 2025. In its petition, the Debtor reports estimated assets
between $50,000 and 100,000 and estimated liabilities between
$100,000 and $500,000.
Honorable Bankruptcy Judge Laurel M. Isicoff handles the case.
WATER GREMLIN: Seeks to Extend Plan Exclusivity to April 25
-----------------------------------------------------------
Water Gremlin Company and 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 25 and June 27, 2025, respectively.
Factors to the facts and circumstances of these chapter 11 cases
demonstrate that good cause exists to extend the Debtors' Exclusive
Periods include:
* First, the complexity of the Debtors' Chapter 11 Cases
warrant an extension of the Exclusivity Periods. The multitude of
tort claims, the various Sales of the Debtors' assets to multiple
buyers, the involvement of governmental regulators in the sale
order process, and the myriad of reporting obligations with respect
to local, state, and federal regulatory agencies that the Debtors
complied with through the Sales lends to the complexity of these
Chapter 11 Cases.
* Second, during the course of these Chapter 11 Cases, the
Debtors continue to make substantial progress in engaging with
their stakeholders and administering these Chapter 11 Cases. The
Debtors have obtained and paid off post-petition financing; engaged
in a robust sale and marketing process and closed on three Sales of
the assets of the various Debtor entities to maximize the value of
their estates; set their various Bar Dates; rejected various
executory contracts and leases while assigning others to the new
owners of the Debtors' sold assets; participated in a mediation
session with the Parties; and have substantially completed their
claims reconciliation analysis.
* Third, negotiations between the Parties after the mediation
session have resulted in a term sheet memorializing a global
settlement with the Committee and other stakeholders of the
treatment of various claims asserted against the Debtors. The
Debtors are currently in the process of preparing a chapter 11 plan
and disclosure statement based on such term sheet. Thus, the
Debtors' substantial progress administering these Chapter 11 Cases
weighs in favor of an extension of the Exclusivity Periods.
* Fourth, the Debtors have paid their post-petition debts in
the ordinary course or as otherwise provided by Court order.
* Fifth, the Debtors' request for a further extension of the
Exclusivity Periods comes approximately 15 months after the
Petition Date, a reasonable period of time in a chapter 11 given
what the Debtors have already achieved. The Debtors are already in
the process of drafting its chapter 11 plan and related documents
and should be given the opportunity to propose a consensual plan
with such efforts underway.
* Lastly, the Debtors are not seeking an extension of the
Exclusivity Periods to pressure or prejudice any of their
stakeholders. The Debtors have been diligently moving these Chapter
11 Cases forward and are so close to achieving a global resolution
for many of their unliquidated claims. Accordingly, the relief
requested herein is without prejudice to the Debtors' creditors and
will benefit the Debtors' estates, their creditors, and all other
key parties in interest.
Counsel for the Debtors:
DORSEY & WHITNEY (DELAWARE) LLP
Eric Lopez Schnabel, Esq.
Alessandra Glorioso, Esq.
300 Delaware Avenue, Suite 1010
Wilmington, Delaware 19801
Telephone: (302) 425-7171
Email: schnabel.eric@dorsey.com
glorioso.alessandra@dorsey.com
-and-
Eric Lopez Schnabel, Esq.
Michael Galen, Esq.
Courina Yulisa, Esq.
Laura Goforth, Esq.
Dorsey & Whitney LLP
51 West 52nd Street
New York, NY 10019
Tel: (212) 415-9200
Fax: (212) 953-7201
Email: schnabel.eric@dorsey.com
About Water Gremlin Company
Water Gremlin Company is the world's technological and market
leader in battery terminals. It was founded in 1949 as a
manufacturer of recreational fishing products. In 1970, the Debtor
expanded to battery terminal production. Water Gremlin uses custom
engineering, design, and automation to deliver consistent quality
solutions for industries like automotive, agriculture, commercial
trucking, marine, telecommunications, recreation, and military and
government operations.
Water Gremlin and its affiliates filed Chapter 11 petitions (Bankr.
D. Del. Lead Case No. 23-11775) on Oct. 27, 2023. At the time of
the filing, Water Gremlin reported $10 million to $50 million in
both assets and liabilities.
Judge Laurie Selber Silverstein oversees the cases.
The Debtors tapped Alessandra Glorioso, Esq., at Dorsey & Whitney
(Delaware) LLP as bankruptcy counsel; Intrepid Investment Bankers,
LLC as investment banker; Riveron RTS, LLC as financial advisor.
Kekst CNC and Padilla provide public relations services to the
Debtors.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee is represented by Norman Pernick, Esq.
WILSON CREEK: WC Hydraulics Out as Committee Member
---------------------------------------------------
The U.S. Trustee for Region 3 disclosed in a notice that as of Jan.
21, these creditors are the remaining members of the official
committee of unsecured creditors in the Chapter 11 cases of Wilson
Creek Energy, LLC and its affiliates:
1. Tijon Company, Inc.
Mr. David Kostryk
110 Entry Road
Aultman, PA 15713
dkostryk@tijonusa.com
Tel: (724) 388-1247
2. Joy Global Underground Mining, LLC
Ms. Kelly Smith
220 Simko Boulevard
Charleroi, PA 15022
kelly.smith@global.komatsu
Tel: (724) 873-4375
WC Hydraulics, LLC was previously identified as member of the
creditors committee. Its name no longer appears in the new
notice.
About Wilson Creek Energy
Through their U.S.-based operating subsidiaries, Wilson Creek
Energy, LLC and its affiliates 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' headquarter is located in Friedens, Somerset County,
Pa. All the Debtors' physical assets, mining operations and
employees are based in Somerset County, Pa., and Garrett County,
Md.
Wilson Creek Energy and 10 affiliates filed Chapter 11 petitions
(Bankr. W.D.PA Lead Case No. 25-70001) on January 6, 2025. At the
time of the filing, Wilson Creek Energy reported $50 million to
$100 million in assets and $10 million to $50 million in
liabilities.
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; BDO
USA as financial advisor and consultant; and
PricewaterhouseCoopers, LLP as Canadian information officer. Omni
Agent Solutions, Inc. serves as the Debtors' claims and noticing
agent.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
WIMPY'S CALIFORNIA: Seeks to Use Cash Collateral
------------------------------------------------
Wimpy's California Delta Resort, LLC asked the U.S. Bankruptcy
Court for the Eastern District of California, Sacramento, for
authority to use cash collateral and provide adequate protection.
In 2020 the Covid Pandemic hit which caused the rental market, and
vacation travel markets to greatly decline.
During this time, Wimpy's fell behind on the property taxes, which
caused the senior lien holder to call the notice, and is pending
foreclosure, and a judgment by Performance Food Group.
Wimpy's operations, which consist of: (1) RV spaces, (2) vacation
spaces, vehicle spaces, and a restaurant are managed by, Nancy A.
Goodie, who is also responsible for marketing, and administration
duties. The primary reasons for this bankruptcy filing is due to
the refusal of over $109,000 in rents that have not been collected,
and the Covid effects on the restaurant.
The Debtor requires the use of cash collateral to operate and
maintain the business and pay critical expenses during the pendency
of the case.
The Debtor also seeks to grant replacement liens to the extent cash
collateral is actually declared, and/or used. The Debtor is unaware
of any creditors having liens or security interests in the subject
cash collateral.
A hearing on the matter is set for Feb. 3.
A copy of the motion is available at https://urlcurt.com/u?l=sKFSBI
from PacerMonitor.com.
About Wimpy's California Delta Resort,
LLC
Wimpy's California Delta Resort, LLC is a Single Asset Real Estate
debtor (as defined in 11 U.S.C. Section 101(51B)).
Wimpy's California Delta Resort sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. E.D. Calif. Case No. 24-25338) on
November 23, 2024, with $1 million to $10 million in both assets
and liabilities. Nancy A. Goodie, president and shareholder, signed
the petition.
Judge Fredrick E. Clement handles the case.
The Debtor is represented by Peter G. Macaluso, Esq. at Law Office
of Peter G. Macaluso.
[*] US Healthcare Bankruptcies Dipped in 2024, Gibbins Reports
--------------------------------------------------------------
Caroline Hudson of Modern Healthcare reports that in 2024, Chapter
11 bankruptcy filings in the healthcare sector decreased
significantly compared to 2023, although the overall number
remained historically high.
A total of 57 healthcare companies with liabilities exceeding $10
million filed for bankruptcy protection, according to a report from
Gibbins Advisors. This marked the second-highest total since 2019,
down from 79 filings in 2023.
Pharmaceutical companies led the filings with 14, followed by 11
senior care companies and 10 clinics and physician practices.
Clinics and physician practices saw their highest number of filings
in six years.
Five hospital groups filed for bankruptcy in 2024, down from 12 the
previous year. Notably, Steward Health Care, which involved more
than 30 hospitals, represented the largest hospital bankruptcy in
decades.
Experts cited ongoing economic pressures such as low reimbursement
rates and rising labor costs as significant factors contributing to
the high number of filings, especially in hospitals and health
systems struggling with thin operating margins.
John Rowland, former chair of the corporate restructuring and
bankruptcy group at Baker Donelson, described the hospital sector
as "profoundly unstable" and noted that there would be
opportunities for non-traditional lenders to acquire distressed
assets.
A growing divide between large provider groups in fast-growing
markets and smaller groups in rural areas with higher
government-insured patient populations was also highlighted.
Rowland remarked, "There's going to be a bunch of winners and
losers, and the stronger players will likely do well over the next
five years."
However, large size does not always guarantee financial stability.
The report showed a notable increase in bankruptcy filings among
companies with liabilities between $100 million and $500 million,
from zero in the third quarter to eight in the fourth quarter.
Clare Moylan, principal at Gibbins Advisors, pointed out that while
large company stakeholders had been more flexible during the
COVID-19 pandemic by offering debt repayment waivers and
extensions, "the COVID excuse is over," and these stakeholders are
now focused on finding long-term solutions.
High levels of debt, particularly in private equity-backed
companies, remain a major factor behind the filings. For instance,
Steward Health Care listed over $600 million in debts owed to its
top unsecured creditors. Wendy Marcari, an attorney at Epstein
Becker Green, explained that "many of these companies are highly
levered," and use financing to pay dividends to owners, ultimately
leading to the need for bankruptcy or other forms of
restructuring.
Prospect Medical Holdings, another private equity-backed company,
filed for bankruptcy in January 2025.
Private equity in healthcare continues to face significant
scrutiny. A recent report from the Biden Health and Human Services
Department and federal regulators criticized private equity's
impact, citing facility closures and reduced care quality. In
January, the Senate Budget Committee also released a report
accusing private equity firms of prioritizing profits over patient
care, weakening hospitals' financial health.
Experts predict that 2025 may be another tough year for healthcare
companies, especially those in the middle market. Moylan expects
continued challenges for smaller companies competing with larger
entities that benefit from economies of scale.
Chad Sukurs, attorney at Hall Render, noted that interest rates
will play a key role in future bankruptcy filings. With the Federal
Reserve lowering its benchmark rate three times from September to
December 2024 and further reductions expected in 2025, lower rates
could ease access to capital, increase refinancing opportunities,
and boost valuations for companies looking to sell.
Rowland also flagged potential risks for medical equipment
suppliers and other ancillary healthcare businesses. As demand for
medical supplies from the pandemic era fades, these companies may
face challenges in managing their resources.
[] BOOK REVIEW: The Heroic Enterprise
-------------------------------------
The Heroic Enterprise: Business and the Common Good
Author: John Hood
Publisher: Beard Books (reprint of book published by The Free
Press/Division of Simon and Schuster in 1996).
Paperback: 266 pages
List Price: $34.95
Order your copy at https://bit.ly/3awLUV3
Hood writes as a counterbalance to ideas that business should be
expected to contribute to the common good along the lines of
charities, say, or public health. He writes too against the highly
partisan, pernicious perspective that business activity is
antisocial and disruptive which at times gains some degree of
credibility.
Critiques of business have been around as long as commerce and
business have been around. These come usually from religious or
political zealots seeking dictatorial hold over all significant
kinds of human activity and enterprise. In this work, Hood aims to
counterbalance latter-day versions of such critiques arising in
American society. The counterculture, antiestablishment 1960s was
a time when such critiques were particularly strong. They have
moderated since, yet remain a persistent chorus which influences
politics and imagery and public affairs of business.
Hood does not aim to stifle or eliminate debate about the effects
of business on society or how business should engage in business.
What he aims for is dismissing once and for all myopic and almost
utopian conceptions about business and related erroneous purposes
and values of it. Such conceptions are worrisome to
businesspersons not because they believe they have any foundation,
but because they waste resources and energy in having to
continually correct them so business can function properly. And to
the extent such myopic conceptions are believed or entertained by
the public, they hamper the public and politicians in working out
policies by which the greatest benefits of business can be reaped
by society.
The author clarifies the place and role of business by contrasting
business with other parts of society. A standard, self-evident
tenet of sociologists going back to the time of Plato is that
society is made up of different parts fulfilling different roles
for the varied needs of society and so that a society will
function
smoothly and survive. Business is distinguished from government
and philanthropy. "Businesses exist to make and sell things,
whereas by contrast "governments exist to take and protect things
[and] charities exist to give things away." The social
responsibility for each category of institution is inherent in its
purposes and activities. For example, businesses alone cannot
solve environmental problems. Whatever problems which can be
attached to business are related to government policies and
business's operations to satisfy consumer interests. Hence,
business alone cannot solve environmental problems, and should not
be expected to. Critics requiring that business solve
environmental problems without similarly requiring changes in
government policies and consumer interests are shortsightedly and
unreasonably tarnishing business while not making any relevant or
productive arguments for dealing with environmental problems.
In elucidating business's proper place in and contributions to
society, Hood is not unmindful that some businesses fail to fulfill
their role in good faith and beneficially. But instead of
criticizing business fundamentally, he proffers questions critics
can ask before targeting particular businesses. Two of these are
"Are corporations obtaining their profits through force or fraud?"
and "Are corporations putting investments at their disposal to the
most economically productive use?" Hood's perspective in support
of business against unfair and irrelevant criticisms is based on
the acknowledgment that business is operating productively, for the
common good, and is open to cooperative activities with other parts
of society in trying to resolve common problems.
"The Heroic Enterprise" is not an argument for business -- for as a
fundamental aspect of any society, business does not need an
argument to justify it. The book mostly takes the approach of
reviewing why business is necessary and therefore must be
naturally, easily accepted -- namely, because of the manifold
benefits business provides for society and because it along with
good government and respectable morals has been a primary engine
for the betterment of human life.
John Hood has much experience in the media and communication as a
syndicated columnist, TV commentator, and radio host. Author of
seven nonfiction books on subjects as business, advertising, public
policy, and political history, and many articles for national
publications such as the Wall Street Journal, Hood is President of
the John William Pope Foundation, a Raleigh, N.C.-based grantmaker
that supports public policy organizations, educational
institutions, arts and cultural programs, and humanitarian relief
in North Carolina and beyond. Hood also serves on the board of the
John Locke Foundation, the state policy think tank he helped found
in 1989 and led as its president for more than two decades. He
teaches at Duke University's Sanford School of Public Policy.
*********
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
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however, be complete or accurate. The Monday Bond Pricing table
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are not intended to reflect actual trades. Prices for actual
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Each Tuesday edition of the TCR contains a list of companies with
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*********
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