/raid1/www/Hosts/bankrupt/TCR_Public/250212.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Wednesday, February 12, 2025, Vol. 29, No. 42
Headlines
12536 CHADRON: Section 341(a) Meeting of Creditors on March 3
13100 YUKON AVENUE: Files Chapter 11 Bankruptcy in California
23ANDME HOLDING: Losses, Liquidity Needs Raise Going Concern Doubt
401 FIFTH HOLDING: April 8, 2025 Public Sale Auction Set
5630 CHESTNUT: U.S. Trustee Unable to Appoint Committee
729-731 MEEKER: Amends Plan to Address Wells Fargo's Concerns
737 N. LA BREA: Seeks to Hire Till Law Group as Bankruptcy Counsel
AERKOMM INC: Appoints Robert McGuire as Director to Fill Vacancy
AKOUSTIS TECHNOLOGIES: Gets Court Okay to Pay Bankruptcy Bonuses
AMARILLO PLATINUM: Plan Exclusivity Period Extended to Feb. 14
AMERICAN TIRE: Judge Authorizes Sale to Lender Group
AMSTED INDUSTRIES: S&P Affirms 'BB' Rating on Sr. Unsecured Notes
ANGELA'S BRIDALS: Seeks Cash Collateral Access
APPLE BIDCO: S&P Affirms 'B' Issuer Credit Rating, Outlook Stable
APPLE CENTRAL: $1.8M Sale to Apple Sun to Fund Plan Payments
ASHLEY SELMAN: Files Emergency Bid to Use Cash Collateral
ATLANTIC HILLS: Unsecureds Will Get 10% of Claims in Plan
ATLAS PACKAGING: Seeks to Tap Keck Legal as Bankruptcy Counsel
BELL CANADA: S&P Rates New USD-Denominated Subordinated Notes 'BB+'
BELLEVUE HOSPITAL: Files Chapter 11 Bankruptcy in Ohio
BIOLASE INC: Seeks to Extend Plan Exclusivity to April 29
BORDER PROPERTIES: Seeks to Tap James & Haugland as Legal Counsel
BOVAN ENTERPRISES: Hires Simen Figura & Parker as Legal Counsel
BROWN FAMILY: Tamara Miles Ogier Named Subchapter V Trustee
CALI MADE: Seeks to Hire Michael Jay Berger as Bankruptcy Counsel
CANVAS SARASOTA: Case Summary & Eight Unsecured Creditors
CAREMAX INC: Dismisses PwC as Auditor
CAREMAX INC: Exits Chapter 11 Bankruptcy
CHESTNUT MED: U.S. Trustee Unable to Appoint Committee
CLEMENTS ELECTRIC: Unsecureds to Get $5K per Month for 36 Months
CYTOPHIL INC: Sec. 341(a) Meeting of Creditors on March 11
DAJMO TRUCKING: Seeks to Extend Plan Filing Deadline to April 2
DEBBIE OUTLAW: Files Chapter 11 Bankruptcy in Texas
DIAMOND ELITE: Seeks to Hire Guidant Law as Bankruptcy Counsel
DIAMOND SCAFFOLD: Panel Taps Michael Moecker as Plan Administrator
DMD FLORIDA: Seeks to Hire GGG Partners as Financial Advisor
DW TRUMP: Unsecureds to be Paid in Full in Sale Plan
ELECTRIC LAST: Judge Recommends Dismissing PIPE Deal Investor Suit
EMERSON4411 LP: Arturo Cisneros Named Subchapter V Trustee
EPIC COMPANIES: Hires Fremstad Law as Special Litigation Counsel
ESCAMBIA OPERATING: To Sell Gulfport Propety to Hau Nguyen
ESSEX TECHNOLOGY: Gets Interim OK to Use Cash Collateral
EXPRESS MOBILE: Seeks to Hire Thompson Law Group as Legal Counsel
FIRST EMANUEL: Taps Heller Draper & Horn as Bankruptcy Counsel
FIRSTOX LABORATORIES: Taps Crocker & Crocker as Bankruptcy Counsel
FWR LLC: Christine Brimm Named Subchapter V Trustee
GEN DIGITAL: S&P Affirms 'BB' ICR Following Launch of MoneyLion
GETTY IMAGES: Moody's Affirms B1 CFR & Rates New Sec. Term Loan Ba3
GRITSTONE BIO: Seeks to Extend Plan Exclusivity to May 8
HELIUS MEDICAL: To Seek OK of Inducement Warrants Offer at Meeting
HIGHLINE AFTERMARKET: Moody's Rates New First Lien Loans 'B2'
HOSPITAL FOR SPECIAL: Seeks to Extend Plan Exclusivity to May 6
HYPERSCALE DATA: Issues $1.9M Convertible Note to Orchid Finance
IKON WEAPONS: Court OK's Gas Masks, Equipment Sale to Kenny Lewis
IM3NY LLC: Hires Hilco Corporate Finance as Investment Banker
IM3NY LLC: Seeks to Hire Chipman Brown Cicero & Cole as Counsel
IM3NY LLC: Seeks to Hire Novo Advisors as Financial Advisor
INKWELL PRODUCTIONS: Seeks to Hire Anthony & Parters as Counsel
INKWELL PRODUCTIONS: Taps Schwack Garbutt & Assoc. as Accountant
JANE STREET: $300MM Notes Upsize No Impact on Moody's 'Ba1' Rating
JJ BADA: Gets Interim OK to Use Cash Collateral Until March 4
JM GROVE: Files Emergency Bid to Use Cash Collateral
KND HOSPITALITY: Seeks to Extend Plan Filing Deadline
KUT AUTO: Case Summary & 12 Unsecured Creditors
LE CONTE: Gets Interim OK to Use Cash Collateral
LGGD PROPERTIES: Taps Pakis Giotes Burleson & Deaconson as Counsel
LIBERATED BRANDS: Seeks to Tap Stretto as Claims and Noticing Agent
LILLY INDUSTRIES: Seeks to Hire Parsons Behle & Latimer as Counsel
LITTLE DOLLAR: Todd Hennings Named Subchapter V Trustee
LITTLE MINT: Hires Country Boys Auction & Realty as Auctioneer
LOGAN VILLAGE: Seeks to Hire KC Cohen as Bankruptcy Counsel
LOGIX HOLDING: Moody's Withdraws 'Caa3' Corporate Family Rating
MAJESTIC OAK: Court OK's Development Property Sale in Brevard
MARATHON DEVELOPMENT: Seeks to Hire LSS Law as Bankruptcy Counsel
MARIANAS PROPERTIES: Plan Exclusivity Period Extended to April 10
MARK'S POOL: Leona Mogavero Named Subchapter V Trustee
MOGA TRANSPORT: Unsecured Creditors Will Get 100% over 60 Months
MONTGOMERY TREE: Plan Exclusivity Period Extended to Feb. 26
MORANS AUTO: Gets Interim OK to Use Cash Collateral
MOUNTAIN SPORTS: Plan Exclusivity Period Extended to April 18
MP PPH: Liquidating Trustee Hires Arthur Lander as Accountant
MS FREIGHT: Seeks to Use Cash Collateral
NATUS MEDICAL: S&P Alters Outlook to Stable, Affirms 'B' ICR
NB STRANDS: Unsecured Creditors to be Paid in Full in Plan
NEW JERSEY ORTHOPAEDIC: Case Summary & 20 Top Unsecured Creditors
NORTHERN HOSPITAL: S&P Cuts 2017 Bond Rating to 'B', On Watch Neg.
NORTHLANDS ORTHOPAEDIC: Case Summary & Four Unsecured Creditors
NUTRACAP HOLDINGS: Hires Interactive Accountants as Accountant
ORTLEY BEACH: Hires Broege Nueman Fischer & Shaver as Counsel
PETROQUEST ENERGY: Seeks to Extend Plan Exclusivity to June 11
PHRG INTERMEDIATE: Moody's Assigns 'B2' CFR, Outlook Stable
PHUNWARE INC: Appoints Jeremy Krol to Chief Operating Officer Role
POET TECHNOLOGIES: Signs Deal to Develop Optical Engine for HFT
PRESSURE BIOSCIENCES: Reports $7.75 Million Net Loss for Q2 2024
PRIME HARVEST: Seeks to Sell Red River Farm
PROMENADE NORTH: Court Extends Cash Collateral Access to Feb. 28
R2O GROUP: Voluntary Chapter 11 Case Summary
RE WEALTH: Seeks Cash Collateral Access
RED CLOAK: Seeks to Extend Plan Filing Deadline to May 1
SAFE & GREEN: Inks Deal With NAHD to Merge With Olenox, Machfu
SAFE & GREEN: Merger With New Asia Holdings Boosts Equity by $60MM
SALT GROUP: Voluntary Chapter 11 Case Summary
SHARKY'S LLC: Jarrod Martin Named Subchapter V Trustee
SILVERBILLS INC: Unsecureds Will Get 0.77% of Claims in Plan
SIYATA MOBILE: Updates on Upcoming Press Conference
SKY GARDENS: Seeks Approval to Hire Seese PA as Bankruptcy Counsel
SNAP INC: S&P Assigns 'B+' Issuer Credit Rating, Outlook Stable
SOUTH REGENCY: Case Summary & 20 Largest Unsecured Creditors
SPHERE 3D: CEO Patricia Trompeter Takes Leave; CFO Named Acting CEO
STONEYBROOK FAMILY: Jerrett McConnell Named Subchapter V Trustee
TBB COPPELL: Seeks Chapter 11 Bankruptcy Protection in Texas
TEMPLETON REAGAN: Seeks to Hire McBryan as Bankruptcy Counsel
TEMPLETON REAGAN: Taps Premier Sotheby's International as Broker
TEXAS WHEEL: Seeks to Hire The Lane Law Firm as Bankruptcy Counsel
TONIX PHARMACEUTICALS: Posts $126.6M Loss in Prelim 2024 Results
TONIX PHARMACEUTICALS: Terminates Loan Agreement With $9.6M Payoff
TPT GLOBAL: Reports Improvement to $1.94M Net Income in Q3 2024
TREES CORP: Promotes Mikayla Gilbert to Chief Financial Officer
TREES CORP: Signs $1.75 Million Deal to Acquire Chronic Therapy
TREVENA INC: Board Reshuffles, Katrine Sutton Becomes Consultant
TURNING POINT: S&P Affirms 'B+' Rating on $300MM Sr. Secured Notes
TWENTY EIGHT: Jeffrey Piampiano Named Subchapter V Trustee
UNLIMITED ENTERPRISES: Gary Murphey Named Subchapter V Trustee
VIEWBIX INC: Cancels Reincorporation From Delaware to Nevada
WCG INTERMEDIATE: S&P Alters Outlook to Positive, Affirms 'B-' ICR
WELLPATH HOLDINGS: Creditors Object to Executive Bonuses
WHICH WHICH: Asset Auction Set to Close on February 11
WHITESTONE UPTOWN: To Sell Office Property to Bradford Property
WW INTERNATIONAL: Borrows $121.3MM Under Revolving Credit Facility
*********
12536 CHADRON: Section 341(a) Meeting of Creditors on March 3
-------------------------------------------------------------
On February 4, 2025, 12536 Chadron Avenue Hawthorne 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 $10 million
and $50 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
A meeting of creditors under Section 341(a) to be held on March
3,2025 at 09:30 AM at UST-LA2, TELEPHONIC MEETING. CONFERENCE
LINE:1-866-816-0394, PARTICIPANT CODE:5282999.
About 12536 Chadron Avenue Hawthorne LLC
12536 Chadron Avenue Hawthorne LLC is a single asset real estate
debtor, as defined in 11 U.S.C. Section 101(51B).
12536 Chadron Avenue Hawthorne LLC sought relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10883 on
February 4, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $10 million and $50 million each.
Honorable Bankruptcy Judge Vincent P. Zurzolo handles the case.
The Debtor is represented by:
Matthew A. Lesnick, Esq.
LESNICK PRINCE PAPPAS & ALVERSON LLP
315 W. Ninth St., Suite 705
Los Angeles, CA 90015
Tel: (213) 493-6496
Fax: (213) 493-6596
E-mail: matt@lesnickprince.com
13100 YUKON AVENUE: Files Chapter 11 Bankruptcy in California
-------------------------------------------------------------
On February 4, 2025, 13100 Yukon Avenue, Hawthorne 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 $10 million
and $50 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About 13100 Yukon Avenue, Hawthorne LLC
13100 Yukon Avenue, Hawthorne LLC is a single asset real estate
debtor, as defined in 11 U.S.C. Section 101(51B).
13100 Yukon Avenue, Hawthorne LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. C.D. Case No.: 25-10881) on
February 4, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $10 million and $50 million each.
Honorable Bankruptcy Judge Julia W. Brand handles the case.
The Debtor is represented by:
Matthew A. Lesnick, Esq.
LESNICK PRINCE PAPPAS & ALVERSON LLP
315 W. Ninth St., Suite 705
Los Angeles CA 90015
Tel: (213) 493-6496
E-mail: matt@lesnickprince.com
23ANDME HOLDING: Losses, Liquidity Needs Raise Going Concern Doubt
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23andMe Holding Co. disclosed in a Form 10-Q Report filed with the
U.S. Securities and Exchange Commission for the quarterly period
ended December 31, 2024, that there is substantial doubt about its
ability to continue as a going concern.
According to 23andMe, it has incurred significant operating losses
as reflected in its accumulated deficit and negative cash flows
from operations.
The Company reported a net loss for the three months ended December
31, 2024 of $53 million as compared to $278 million for the three
months ended December 31, 2023. Net loss for the nine months ended
December 31, 2024 was $181.5 million as compared to $457.9 million
for the nine months ended December 31, 2023.
Total revenue increased by $15.5 million for the three months ended
December 31, 2024 as compared to the three months ended December
31, 2023. For the nine months ended December 31, 2024, total
revenue decreased by $10.9 million as compared to the nine months
ended December 31, 2023.
As of December 31, 2024, the Company had an accumulated deficit of
$2.4 billion, and unrestricted cash and cash equivalents of $79.4
million. The Company will need additional liquidity to fund its
necessary expenditures and financial commitments for the next 12
months The Company has determined that, as of February 6, 2025,
there is substantial doubt about the Company's ability to continue
as a going concern.
To improve its financial condition and liquidity position, the
Company is attempting to raise additional capital. In addition, the
Company is working to implement cost-cutting measures, including
further reducing operating expenses, negotiating terminations of
the Company's long-term real estate leases, and attempting to reach
a settlement covering all U.S. customers affected by the Cyber
Incident as well as to resolve non-U.S. litigation and ongoing
investigations from various governmental agencies arising from the
Cyber Incident. To reduce the Company's operating costs, during the
three months ended December 31, 2024, the Company's Board of
Directors approved the November 2024 Reduction in Force, which
represented a reduction of approximately 40% of the Company's
workforce and included the closing of substantially all operations
in the Company's former Therapeutics operating segment, and the
ceasing of additional investment in the Company's two clinical
trials beyond their respective current stages of development. The
Company's ability to continue as a going concern, however, is
contingent upon the Company's ability to successfully implement
steps, and if the Company fails to do so and/or is unable to raise
sufficient capital or consummate a strategic transaction, it would
be forced to modify or cease operations, liquidate assets, or
pursue bankruptcy proceedings. While the Company believes in the
viability of its strategy, there are numerous risks and
uncertainties that may prevent, and there can be no assurances
regarding, the successful implementation of the Company's
operational and financial plans and/or the consummation of any
transactions.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/ycxv5v5u
About 23andMe
Headquartered in South San Francisco, California, 23andMe --
www.23andMe.com -- is a genetics-led consumer healthcare and
biopharmaceutical company empowering a healthier future. The
Company is dedicated to helping people access, understand, and
benefit from the human genome. The Company is dedicated to
empowering customers to optimize their health by providing
consumers direct access to their genetic information, personalized
reports, actionable insights, and digital access to affordable
healthcare professionals through the Company's telehealth platform,
Lemonaid Health, Inc.
As of December 31, 2024, the Company has $277.4 million in total
assets, $214.7 million in total liabilities, and $62.7 million in
total stockholders' equity.
401 FIFTH HOLDING: April 8, 2025 Public Sale Auction Set
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In accordance with applicable provisions of the Uniform Commercial
Code as enacted in the State of New York, by virtue of certain
events of default under that certain mezzanine loan agreement dated
as of Dec. 24, 2014, between 401 Fifth Holding LLC ("Debtor") and
393 Fifth Funding LLC ("secured party"), secured party will offer
for sale at public auction all of the secured party's right, title
and interest in and to (a) 100% of the limited liability company
interest in 401 Fifth LLC, and (b) certain related rights and
property relating to the interests owned by the Debtor.
The public sale will take place on April 8, 2025, at 2:00 p.m. New
York Time at the offices of Meister Seeliq & Fein PLLC, 125 Park
Avenue, 7th Floor, New York, New York 10017, with access afforded
in person and remotely via the link below or by any other web-based
video conferencing program selected by the secured party.
Virtual bidding will be made available via zoom, meeting link:
https://bit.ly/393401Fifth (URL is case sensitive), Meeting ID: 865
0988 5400; Passcode: 494111; Dial-In: +1 (646) 931-3860; Find your
local dial-in number https://us06web.zoom.us/u/kcZzGdqxom.
Mannion Auction LLC, under the direction of Matthew D. Mannion,
will conduct the sale in respect of the indebtedness with an unpaid
principal balance as of Jan. 21, 2025 in the approximate amount of
$32,799,499.96, together with interest thereon and other sums due
under the mezzanine loan agreement, subject to all additional
costs, fees and disbursements permitted by law. The secured party
reserves the right to bid including by credit bid.
The collateral will be sold to the highest qualified bidder;
provided, however, that secured party reserves the right to cancel
the sale in its entirety, or to adjourn the sale to a future date.
Interested parties who intend to bid on the collateral must contact
secured party's UCC broker, Newmark at c/o Brock Cannon, Tel: (212)
372-2066, Email: brock.cannon@nmrk.com, to receive the terms of
public sale and bidding instructions. Upon execution of a standard
confidentiality and non-disclosure agreement, additional
documentation and information will be made available.
5630 CHESTNUT: U.S. Trustee Unable to Appoint Committee
-------------------------------------------------------
The U.S. Trustee for Region 3 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of 5630 Chestnut OZB, LLC.
About 5630 Chestnut OZB
5630 Chestnut OZB, LLC owns the property located at 5630 Chestnut
Street, Philadelphia, Pa., with a comparable sale value of $2
million.
5630 Chestnut OZB sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Pa. Case No. 25-10175) on January 15,
2025. In its petition, the Debtor reported total assets of $2
million and total liabilities of $53,486.
Honorable Bankruptcy Judge Patricia M. Mayer handles the case.
The Debtor is represented by John Everett Cook, Esq., at The Law
Offices of Everett Cook, PC.
729-731 MEEKER: Amends Plan to Address Wells Fargo's Concerns
-------------------------------------------------------------
729-731 Meeker Group LLC submitted a First Amended Disclosure
Statement for First Amended Plan of Liquidation dated January 29,
2025.
The Debtor owns the real property and improvements thereon located
at 729-731 Meeker Avenue, Brooklyn, New York 11222 (the
"Property"). The Property is a multi-family property. The Debtor
will endeavor to make sure that the Property is in compliance with
DHCR registration requirements.
On October 2, 2024, the Debtor filed its initial plan of
liquidation (the "Initial Plan") and disclosure statement (the
"Initial Disclosure Statement") with this Court. On January 15,
2025, Wells Fargo filed an objection to the Disclosure Statement
and cross motion for modification of the automatic stay (the "Cross
Motion"). The Debtor has filed the Plan and this Disclosure
Statement to address the objection interposed by Wells Fargo to its
Disclosure Statement and make additional modifications to the
Initial Plan and Initial Disclosure Statement.
On November 13, 2024, Wells Fargo commenced an adversary proceeding
entitled Wells Fargo Bank, National Association, as Trustee etc. v.
729-731 Meeker Group LLC, 81 Stockholm Group LLC, 467 Central
Avenue LLC, 346 Grand LLC, 80 NY Ave LLC, Gold Management Realty
LLC, and Mendel Gold (Adv. Proc. 1−24−01101−jmm) (the
"Adversary Proceeding"). In the Adversary Proceeding, Wells Fargo
seeks to extend the Debtor's chapter 11 case to include the
Borrowers. On January 15, 2025, the Debtor filed an answer in the
Adversary Proceeding. On January 21, 2025, 346 Grand LLC, 467
Central Avenue LLC, 80 NY Ave LLC, 81 Stockholm Group LLC, Mendel
Gold, Gold Management Realty LLC filed an answer in the Adversary
Proceeding, and based upon their answer, the nonDebtor Borrowers
oppose being involuntarily forced into a title 11 case, which is
part of the relief sought against them by Wells Fargo in the
Adversary Proceeding.
The Debtor intends to file a motion with this Court seeking entry
of an order authorizing and approving bidding procedures for an
auction sale of the Property, free and clear of all monetary liens,
claims and Encumbrances, with such monetary liens, claims and
encumbrances to attach to the proceeds of sale; and approving the
bidding procedures for the Property. The proposed auction sale will
be subject to extensive marketing and subject to higher and better
bids. The Debtor intends to receive the highest and best price for
its sole asset, so that it may maximize return to creditors of its
estate.
Class 2 consists of the Wells Fargo Secured Claim in the filed
amount of $34,577,914.60. Subject to the provisions of Article 7 of
the Plan, with respect to Disputed Claims, in full satisfaction,
release and discharge of the Class 2 Wells Fargo Secured Claim,
Wells Fargo shall receive the following treatment: (i) to the
extent any Cash from the Sale Proceeds is remaining after payment
of Administrative Claims, Professional Fee Claims, Non Tax Priority
Claims, Priority Tax Claims, Class 1 Claims and Class 1 Claims, on
the Effective Date, or as soon as possible after the Wells Fargo
Secured Claim becomes an Allowed Claim, Wells Fargo shall either
receive : (a) the Disbursing Agent remaining Cash, if any, up to
the full amount of its Allowed Secured Claim, inclusive of
postpetition interest, attorneys fees, costs and expenses under 11
U.S.C. Section 506(b) or (b) title to the Property through its
right to credit bid.
Class 3 consists of General Unsecured Claims. The allowed unsecured
claims total $577,326.45. Subject to the provisions of Article 7 of
the Plan with respect to Disputed Claims, in full satisfaction,
release and discharge of Class 3 General Unsecured Claims, the
holder of such Claims shall receive the following treatment: on the
Effective Date, or as soon as possible after such Claims become
Allowed Claims, each holder of a Class 3 General Unsecured Claim
shall receive from the Disbursing Agent, unless otherwise agreed in
writing between the Debtor and the holder of such Claim, its Pro
Rata payment of $5,000 from the Unsecured Creditor Fund and the
remaining Cash from the Sale Proceeds after payment of Statutory
Fees, Administrative Claims, Professional Fee Claims, Non Tax
Priority Claims, Priority Tax Claims, Class 1 Claims, and Class 2
Claims.
The Sale Transaction will be implemented pursuant to sections 363
and 1123(a)(5)(D) of the Bankruptcy Code. The sale of the Property
to be conducted by public auction in accordance with the Bid
Procedures, at which auction Wells Fargo shall be entitled to a
credit bid to the extent permitted by the Terms and Conditions of
Sale. Payments under the Plan will be paid from the Sale Proceeds
and any Cash of the Debtor.
The Sale Transaction will be implemented pursuant to the Bid
Procedures. Prior to or on or about the Effective Date, the
Property shall be sold to the Purchaser, free and clear of all
Liens, Claims and encumbrances (except permitted encumbrances as
determined by the Purchaser), with any such Liens, Claims and
encumbrances to attach to the Sale Proceeds and disbursed in
accordance with the provisions of the Plan. Except as set forth
elsewhere in the Plan, all distributions to be made on the
Effective Date shall be transferred to the escrow account of the
Disbursing Agent at the closing of the Sale Transaction.
A full-text copy of the First Amended Disclosure Statement dated
January 29, 2025 is available at https://urlcurt.com/u?l=5zUlGl
from PacerMonitor.com at no charge.
About 729-731 Meeker Group LLC
729-731 Meeker Group LLC is a Single Asset Real Estate debtor (as
defined in 11 U.S.C. Section 101(51B)).
729-731 Meeker Group LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-42846) on July 9,
2024. In the petition filed by Mitchell Steiman, as vice president
of restructuring, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
The Honorable Bankruptcy Judge Jil Mazer-Marino handles the case.
The Debtor is represented by:
Joel M. Shafferman, Esq.
SHAFFFERMAN & FELDMAN LLP
137 Fifth Avenue
9th Floor
New York, NY 10010
Tel: (212) 509-1802
Email: shaffermanjoel@gmail.com
737 N. LA BREA: Seeks to Hire Till Law Group as Bankruptcy Counsel
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737 N. La Brea LLC seeks approval from the U.S. Bankruptcy Court
for the Central District of California to employ Till Law Group as
general bankrupty counsel.
The firm will render these services:
(a) advise the Debtor regarding its powers and duties;
(b) represent the Debtor in proceedings or hearings before
this court unless it is represented in such proceeding or hearing
by other special counsel;
(c) attend meetings and negotiate with creditors and other
parties-in-interest;
(d) take necessary actions to protect and preserve the
estate;
(e) prepare all legal papers on behalf of the Debtor that are
necessary to the administration of this bankruptcy case;
(f) represent the Debtor in connection with any proceedings
relating to dispositions and use of assets;
(g) advise and assist the Debtor in connection with the
preparation, confirmation, and consummation of a plan of
reorganization.
The firm's counsel will be paid at these hourly rates:
James Till, Partner $795
Mike Neue, Senior Counsel $795
John Schafer, Counsel $750
Myrtle John, Bnakruptcy Paralegal $375
Martha Araki, Bankruptcy Paralegal $350
Prior to the petition date, the firm received $35,000 from the
Debtor. The firm will also receive payment from a third party in
the amount of $5,000 on February 3, 2025 and $25,000 on February
17, 2025.
Mr. Till disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
James E. Till, Esq.
Till Law Group
120 Newport Center Drive
Newport Beach, CA 92660
Telephone: (94() 524-4999
Email: james.till@till-group.com
About 737 N. La Brea LLC
737 N. La Brea LLC operates in the real estate sector.
737 N. La Brea LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10567) on January 27,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $10 million and $50 million each.
Honorable Bankruptcy Judge Barry Russell handles the case.
James E. Till, Esq., at Till Law Group represents the Debtor as
counsel.
AERKOMM INC: Appoints Robert McGuire as Director to Fill Vacancy
----------------------------------------------------------------
Aerkomm Inc. filed a Form 8-K with the Securities and Exchange
Commission to disclose that at a meeting held on Feb. 3, 2025, the
Board appointed Mr. Robert McGuire as an independent member,
effective immediately, to fill one of the vacancies created by the
recent resignations of independent directors Mr. Colin Lim and Mr.
Raymond Choy.
Mr. McGuire has more than 35 years of experience as an
international business manager in industrial companies and as an
entrepreneur, having been based in Japan for much of his career.
Mr. McGuire served as President of Lord Corporation's Japan
subsidiary, a global leader in specialty chemicals, from 2013 to
2018. Prior to that, he was President of Owens Illinois' China
subsidiary, a leader in the glass industry, from 2011 to 2013,
overseeing more than 4,000 employees. He also held the roles of
Vice President and later President of Sekisui-Fuller, a joint
venture between HB Fuller and Sekisui Chemical in Japan and China,
from 2005 to 2010. Earlier in his career, he was President of HB
Fuller's Japan subsidiary and held positions with Donaldson Company
and Deere & Company. Following a successful career managing the
Japan and China operations of industrial manufacturers, Mr. McGuire
focused on establishing his own companies, including McGuire
Specialty Chemical, which he founded in 2019 and where he is
currently the President, and Solar Power Partners, which he founded
in Japan in February 2018 and where he is currently the President,
and in residential and hospitality real estate investments in
Japan, the United States and Thailand.
Mr. McGuire earned his MBA from the University of Minnesota in 1994
and his B.A. in International Management from Gustavus Adolphus
College in 1987. Mr. McGuire is fluent in speaking, reading and
writing Japanese and has a working knowledge of Mandarin.
The Company stated there are no arrangements or understandings
between Mr. McGuire and any other persons pursuant to which he was
elected as a director. There is no family relationship that exists
between Mr. McGuire and any directors or executive officers of the
Company. In addition, there has been no transaction, nor is there
any currently proposed transaction between Mr. McGuire and the
Company, that would require disclosure under Item 404(a) of
Regulation S-K.
Also at this Meeting, the Board took the following additional
actions:
* Appointed Mr. McGuire as a member and Chairman of the
Company's Compensation Committee (this position formerly held by
Mr. Colin Lim);
* Appointed Louis Giordimaina as the interim Chairman of the
Board (this position formerly held by Mr. Jeffrey Wun); and
* Appointed Richmon Akumiah as Chairman of the Company's Audit
Committee (this position formerly held by Mr. Raymond Choy).
About Aerkomm
Headquartered in Nevada, USA, Aerkomm Inc. --
http://www.aerkomm.com/-- is a development stage innovative
satellite communication technology company providing
carrier-neutral and software-defined infrastructure to deliver
mission-critical, multi-orbit satellite broadband connectivity for
the public and private sectors. The Company offers a range of
next-generation technologies that bring high-throughput
performance, interoperability and virtualization to provide high
performance and resilient end-to-end broadband connectivity to our
customers in collaboration with satellite or constellation partners
and mobile network operators.
Aerkomm reported a net loss of $21.07 million in 2023, a net loss
of $11.88 million in 2022, a net loss of $9.38 million in 2021, a
net loss of $9.11 million in 2020, a net loss of $7.98 million in
2019, and a net loss of $8.15 million in 2018.
"The Company's ability to remain solvent and settle its obligations
when they come due is dependent on its ability to raise additional
capital in the form of permanent equity and to successfully gain
listing of its common stock on a national exchange such as the
NASDAQ capital markets, so that its current investors that have
invested in the form of convertible debt and convertible notes are
incentivized to convert their debt holdings into common stock that
could be traded in an orderly market. As result of the Company's
primary operations being in the area of research and development of
communication equipment in the aerospace industry that is still in
the testing phases, the Company has not yet been able to legally
market and to generate sustainable re-occurring revenue from the
sales of its products; however, the Company does believe that it
has made significant progress towards gaining approval from the FAA
and other regulatory agencies, but success is not guaranteed. As a
function of the Company's continued efforts to develop its products
the Company reported a net loss of $16,686,644 and net cash
outflows of $8,012,372 for the nine months ended September 30,
2024, and as of September 30, 2024, the Company had a working
capital deficit of approximately $56 Million because much of the
investment from investors were still in the form of convertible
debt instruments that are either at, or near their maturity dates.
These conditions give rise to substantial doubt and uncertainty
regarding the Company's ability to continue as a going concern. If
the Company is able to carry out its plans ... within one operating
period, the Company could alleviate this doubt," Aerkomm said in
its Quarterly Report for the period ending Sept. 30, 2024.
AKOUSTIS TECHNOLOGIES: Gets Court Okay to Pay Bankruptcy Bonuses
----------------------------------------------------------------
Steven Church of Bloomberg News reports that Akoustis Technologies,
Inc. secured court approval to grant bonuses to its top executives,
incentivizing them to maximize proceeds from the company's final
sale during bankruptcy.
U.S. Bankruptcy Judge Laurie Selber Silverstein rejected an
objection from Akoustis' largest unsecured creditor, stating the
bonuses aim to generate funds for debt repayment. However, rival
technology firm Qorvo, Inc. argued that the payments -- up to
$715,000 -- could reduce the amount available to creditors.
About Akoustis Technologies
Akoustis Technologies, Inc. -- http://www.akoustis.com/-- is a
high-tech BAW RF filter solutions company that is pioneering
next-generation materials science and MEMS wafer manufacturing to
address the market requirements for improved RF filters --
targeting higher bandwidth, higher operating frequencies and
higher
output power compared to legacy polycrystalline BAW technology. The
Company utilizes its proprietary and patented XBAW(R) manufacturing
process to produce bulk acoustic wave RF filters for mobile and
other wireless markets, which facilitate signal acquisition and
accelerate band performance between the antenna and digital back
end. Superior performance is driven by the significant advances of
poly-crystal, single-crystal, and other high purity piezoelectric
materials and the resonator-filter process technology which enables
optimal trade-offs between critical power, frequency and bandwidth
performance specifications.
Akoustis owns and operates a 125,000 sq. ft. ISO-9001:2015
registered commercial wafer-manufacturing facility located in
Canandaigua, NY, which includes a class 100 / class 1000 cleanroom
facility -- tooled for 150-mm diameter wafers -- for the design,
development, fabrication and packaging of RF filters, MEMS and
other semiconductor devices. Akoustis is headquartered in the
Piedmont technology corridor near Charlotte, North Carolina.
Akoustis and three affiliates sought Chapter 11 protection (Bankr.
D. Del. Lead Case No. 24-12796) on Dec. 16, 2024. Akoustis
disclosed $53,371,000 in total assets against $122,586,000 in total
debt as of Sept. 30, 2024.
The Hon. Laurie Selber Silverstein is the case judge.
The Debtors tapped K&L Gates, LLP as bankruptcy counsel; Landis
Rath & Cobb, LLP as local counsel. Raymond James & Associates, Inc.
as investment banker; Getzler Henrich & Associates, LLC as
financial advisor; and C Street Advisory Group as strategic
communications advisor. Stretto is the claims agent and has
launched the page https://cases.stretto.com/Akoustis.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
AMARILLO PLATINUM: Plan Exclusivity Period Extended to Feb. 14
--------------------------------------------------------------
Judge Charles M. Walker of the U.S. Bankruptcy Court for the Middle
District of Tennessee extended Amarillo Platinum, LLC, and
affiliates' exclusive periods to file a plan of reorganization and
obtain acceptance thereof to February 14 and April 25, 2025,
respectively.
As shared by Troubled Company Reporter, the Debtors explain that
the basis for the requested extension set forth in the First
Extension Order in their prior motion for an extension of the
120-Day Exclusivity Period and the 180-Day Period (the "First
Extension Motion"). That basis remains and further supports the
extensions requested herein.
Moreover, since entry of the First Extension Order, the Debtors, by
and through their employed restructuring advisors, have been
exploring all possible options for resolution of this case. The
Debtors remain optimistic that they can propose a confirmable plan,
and perhaps even a consensual plan, but they need additional time
to prepare the necessary financial forecasts needed to establish
the plan's compliance with Section 1129 of the Bankruptcy Code.
The Debtors assert that creditor, in general, will not be
prejudiced by the extension request, because the requested extended
deadlines fall within the extension limitation found in Section
1121(d)(2) of the Bankruptcy Code, and, specifically as to the
largest secured creditor, LBC2 Trust, because it has consented to
the requested extension dates.
Counsel to the Debtors:
Henry E. (Ned) Hildebrand, IV, Esq.
Gray Waldron, Esq.
DUNHAM HILDEBRAND PAYNE WALDRON, PLLC
9020 Overlook Boulevard, Suite 316
Brentwood, TN 37027
Phone: (615) 933-5851
Email: ned@dhnashville.com
Email: gray@dhnashville.com
About Amarillo Platinum
Amarillo Platinum, LLC d/b/a SpringHill Suites Amarillo filed its
voluntary petition for relief under Chapter 11 of the Bankruptcy
Code (Bankr. M.D. Tenn. Case No. 24-02447) on July 1, 2024, listing
up to $50,000 in assets and $10 million to $50 million in
liabilities. The petition was signed by Mitul Patel as manager.
Judge Charles M Walker presides over the case.
Henry E. ("Ned") Hildebrand, IV, Esq. at DUNHAM HILDEBRAND PAYNE
WALDRON, PLLC, is the Debtor's counsel.
AMERICAN TIRE: Judge Authorizes Sale to Lender Group
----------------------------------------------------
Dorothy Ma of Bloomberg Law reports that a judge ruled that she
would approve the sale of bankrupt American Tire Distributors to a
group of term loan lenders.
According to the report, court filings indicate that the sale
includes all new money DIP claims and $585 million in pre-petition
term loan claims. The buyers will also assume certain liabilities,
including the ABL loans.
The lender group, known as the ad-hoc group, includes Monarch
Alternative Capital LP, Silver Point Capital, Guggenheim Partners,
Sculptor Capital Management LP, and KKR Credit Advisors, according
to a November court filing.
About American Tire Distributors
Headquartered in Huntersville, N.C., American Tire Distributors
Inc. and its affiliates are the largest distributor of replacement
tires in North America based on dollar amount of wholesale sales.
With their network of over 115 distribution centers and 1,500
delivery vehicles, the Debtors service a geographic region covering
more than 90 percent of the replacement tire market for passenger
vehicles and light trucks in the United States. The Debtors carry
many of the nation's leading tire brands including Michelin,
Pirelli, and Continental. In addition, the Debtors' proprietary
Hercules brand is a leading private tire brand in North America.
American Tire Distributors and its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case
No. 24-12391) on October 22, 2024. In its petition, American Tire
Distributors reported $1 billion to $10 billion in both assets and
liabilities.
Judge Craig T. Goldblatt oversees the cases.
The Debtors tapped Kirkland & Ellis as bankruptcy counsel;
Pachulski Stang Ziehl & Jones, LLP as Delaware counsel; AP
Services, LLC as restructuring advisor; and Moelis & Company, LLC
as financial advisor. Donlin, Recano & Company, Inc. is the notice
and claims agent and administrative advisor.
AMSTED INDUSTRIES: S&P Affirms 'BB' Rating on Sr. Unsecured Notes
-----------------------------------------------------------------
S&P Global Ratings revised its recovery rating on Amsted Industries
Inc.'s senior unsecured debt, which comprises $400 million of
senior unsecured notes due 2027 and $400 million of senior
unsecured notes due 2030, to '4' from '3' and affirmed the 'BB'
issue-level rating. The '4' recovery rating indicates our
expectation for average recovery (30%-50%; rounded estimate: 45%)
in the event of a payment default.
Amsted recently upsized its senior secured revolving credit
facility to $1.4 billion ($300 million drawn at close), from $900
million, and used borrowings from the upsized facility to fully
repay its $270 million senior secured term loan.
S&P said, "The revision of our recovery rating on the company's
senior unsecured debt primarily reflects the upsizing of its
revolving credit facility (completed February 2025) and trade
receivables facility (to $225 million from $175 million; completed
November 2024). Under our hypothetical default scenario, we assume
Amsted would draw on these facilities on the path to a default,
thus the upsizing of the secured facilities leads to lower value
available for the unsecured creditors."
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- S&P's simulated default scenario contemplates a payment default
occurring in 2030 due to a contraction in the company’s
end-market demand, which would lead to a significant decline in its
operating performance and free cash flow generation.
-- S&P believes if Amsted were to default, a viable business model
would remain given its long-standing customer relationships and
global footprint. Therefore, S&P believes its debtholders would
achieve the greatest recovery value through a reorganization rather
than a liquidation.
-- S&P applied a 5.5x multiple to its estimate of the company's
EBITDA at emergence, which reflects its relatively good market
positions in its key railroad, heavy-duty truck, and light-vehicle
markets and its good relationships and share-of-wallet with its
customers.
Simulated default assumptions
-- Simulated year of default: 2030
-- EBITDA multiple: 5.5x
-- EBITDA at emergence: $369 million
-- Jurisdiction: U.S.
-- Debt amounts include six months of accrued interest that we
assume will be owed at default.
-- Collateral value includes asset pledges from obligors plus
equity pledges from nonobligors.
-- 85% draw on the cash flow revolver.
-- 100% draw on the trade receivables facility.
Simplified waterfall
-- Net enterprise value at default (after 5% administrative
costs): $1.93 billion
-- Valuation split (obligors/nonobligors): 71%/29%
-- Priority claims and claims at nonobligor entities (primarily
trade receivables facility): $292 million
-- Collateral value available to secured debt: $1.46 billion
-- Senior secured debt claims: $1.23 billion
- Value available to unsecured claims: $400 million ($230 million
collateral + $170 million non-collateral)
-- Total unsecured claims: $822 million
--Recovery expectations: 30%-50% (rounded estimate: 45%)
ANGELA'S BRIDALS: Seeks Cash Collateral Access
----------------------------------------------
Angela's Bridals, Inc. asked the U.S. Bankruptcy Court for the
Northern District of New York for authority to use cash
collateral.
The company needs to use cash collateral to pay employee wages and
other operating expenses as well as administrative expenses
incurred in its Chapter 11 case.
The pre-bankruptcy secured creditors which have a purported
interest in the cash collateral are Pursuit Lending; the U.S. Small
Business Administration; Gravity Payments, Inc.; CHTD Company;
Broadview Federal Credit Union; Corporation Service Representative;
Funding Metrics, LLC; CSC3; CSC4; and CSC5.
At the time of filing, Angela's Bridals has approximately $56,000
in cash and cash equivalents, including accounts receivable, cash
on hand, and cash in its various bank accounts.
Every creditor, other than Pursuit (which is fully secured) and the
SBA (which is partially secured) is completely undersecured as it
relates to Angela's Bridals' cash and cash equivalents.
Angela's Bridals proposed to pay Pursuit adequate protection
payments in the amount of $664, monthly. The said amount represents
the contractual monthly payment due to Pursuit and should be paid
off in 3.5 months based on contract terms.
Meanwhile, the company proposed to pay the SBA adequate protection
payments in the amount of $994, monthly. Said amount represents the
SBA's secured position on Angela's Bridals' cash and cash
equivalents (approximately $54,000) paid at 4% interest and
amortized over a 5-year term.
About Angela's Bridals Inc
Angela's Bridals, Inc. operates a brick-and-mortar bridal shop that
sells dresses and other accessories.
Angela's Bridals filed Chapter 11 petition (Bankr. N.D. N.Y. Case
No. 25-10119) on February 4, 2025, listing between $100,001 and
$500,000 in assets and between $500,001 and $1 million in
liabilities. Janet M. Cooper, president of Angela's Bridals, signed
the petition.
Michael Boyle, Esq., at Boyle Legal LLC, represents the Debtor as
legal counsel.
APPLE BIDCO: S&P Affirms 'B' Issuer Credit Rating, Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings affirmed its 'B' issuer credit rating and
assigned a 'B' issue level rating to the new term loan on Apple
Bidco LLC (Atlantic Aviation).
The stable outlook reflects S&P's expectation that Atlantic will
sustain S&P Global Ratings' adjusted EBITDA margins in the 35% area
with continued topline growth in the mid-single digits and ample
liquidity to fund increased capital investments for the next 12
months.
Atlantic Aviation, a provider of fuel, terminal, aircraft
hangaring, and other aviation services, will issue a new $3.29
billion first-lien term loan to repay its existing first-lien debt
and help fund a dividend to shareholders.
This is the company's second large debt-funded dividend in the past
two years, and S&P revised its assessment of the company's
financial policy as more in line with a financial sponsor-owned
company to reflect this trend of debt-financed dividends and our
view that ownership's investment holding period may be shorter than
we previously envisioned.
Pro forma for the transaction, S&P Global Ratings-adjusted gross
leverage will increase to about 6.8x from 5.8x as of Dec. 31, 2024,
below S&P's mid-7x downgrade threshold for the rating, and it
expects leverage will improve to about 6.3x over the next 12
months.
S&P said, "Atlantic's credit metrics remain commensurate with its
'B' rating despite the additional debt issuance. Following the
transaction, we expect 2024 pro forma gross leverage will increase
to 6.8x from 5.8x. We expect leverage will improve to about 6.3x in
2025 as a result of healthy organic growth amid favorable operating
conditions. While we expect leverage to improve below our 6.5x
rating upgrade threshold over the next 12 months, we believe the
company will periodically take additional debt-funded dividends
after periods of deleveraging. Additionally, elevated growth
investments will likely limit material improvement in the company's
free operating cash flow generation. We view these growth
expenditures to be flexible because they are not linked to
significant near-term lease renewals. Despite pressuring cash flow,
these investments for infrastructure and hangar rental capacity
continue to drive margin expansion, increasing S&P Global Ratings'
adjusted EBITDA margins by 190 basis points (bps) to 35% in 2024.
We forecast the company will continue to see topline growth in the
mid-single digit area. Though Atlantic is exposed to market
cyclicality and economic conditions given its focus on business
customers, our forecast is supported by increasing private aviation
fuel consumption, a growing number of high-net worth individuals,
and original equipment manufacturers' (OEMs) rising demand for
private planes.
"We revised our financial policy assessment to reflect our view
that Atlantic's ownership's actions are more like that of a
financial sponsor-owned company. Atlantic has been majority owned
by affiliates of investment management firm KKR since they
completed the leveraged buyout in September 2021. We initially
viewed the investment as an infrastructure fund with a long-term
investment horizon and focus on growth through mergers and
acquisitions (M&A). Given the proposed transaction is a portable
term loan and the company's recent dividend history, we reassessed
our view on KKR's time commitment to the company and determined it
better fits the consideration of a financial sponsor. None of our
ratings on the company were affected by the change in our financial
policy assessment; however, with the change, we no longer net the
company's cash balance in our leverage calculation, which increases
leverage by about 0.3x.
"The stable outlook reflects our expectation for S&P Global
Ratings' pro forma adjusted leverage assessment to increase to 6x
in 2025 with 3%-4% free operating cash flow (FOCF) to debt and
ample liquidity for Atlantic to fund increased capital investments.
We project a limited increase in interest expense because of rate
hedges already in place."
S&P could lower its ratings on Atlantic if adjusted leverage
exceeded the mid-7x area on a sustained basis or FOCF to debt
remained negligible. This could occur with:
-- A severe decline in general aviation activity due to a
recession;
-- High volatility in fuel prices that depresses business jet
utilization;
-- Government regulations that unexpectedly limit Atlantic's
operations, pricing policies, or industry economics; or
-- A more aggressive financial policy that includes large
debt-funded shareholder returns or leveraging acquisitions.
S&P could consider raising our ratings on Atlantic if it:
-- Sustained adjusted leverage of less than 6.5x with FOCF to debt
above 5%; or
-- Significantly expanded its airport network and increased market
share.
APPLE CENTRAL: $1.8M Sale to Apple Sun to Fund Plan Payments
------------------------------------------------------------
Apple Central KC, LLC filed with the U.S. Bankruptcy Court for the
District of Kansas a Subchapter V Plan of Reorganization dated
January 28, 2025.
The Debtor is a Kansas Limited Liability Company formed in 2015 for
the purpose of acquiring 23 Applebee's restaurants in the Kansas
City market area. The restaurants were originally owned by
Applebee's itself.
In 2020, the COVID-19 pandemic negatively impacted the entire
Applebee's system, including Debtor. For a short period of time
toward the end of 2021 and into 2022, sales and profitability
improved until rapid inflation pressures started impacting food and
labor costs and, ultimately, consumer spending habits.
The Debtor most recently operated ten remaining stores but closed
eight of those locations immediately prior to filing its voluntary
petition under Chapter 11, Subchapter V, of Title 11 of the United
States Code. One of the open locations is in Gladstone, Missouri
(Applebee's Restaurant Store No. 79028, 6069 Antioch, Gladstone, MO
64119) and the other location is in Blue Springs, Missouri
(Applebee's Restaurant Store No. 79031, 1100 North 7 Highway, Blue
Springs, MO 64014) (the "Open Locations").
The Court has approved the employment of Debtor's counsel, Brown &
Ruprecht, PC, Debtor's financial restructuring expert, Katie
Goodman of GGG Partners, LLC, and sales and marketing advisor, Amy
Forrestal of Brookwood Associates, LLC, to locate a Buyer for the
two remaining locations if possible. The Debtor has received an
offer from Apple Sun, LLC of $1,800,000 for its Open Locations.
This Plan assumes the successful conclusion of the sale and the
liquidation of the Debtor without discharge. The Plan proposes to
pay creditors of Apple Central KC, LLC from the proceeds of the
sale of the Open Locations.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately zero (0) cents on the dollar (as of the date of
this Plan.) However, the potential exists for recovery on the
claims described in this Plan which could result in distributions
to unsecured creditors. This Plan also provides for the payment of
administrative claims.
Class 4 consists of the claims of general unsecured creditors.
After payment in full of the allowed administrative and priority
claims, Debtor shall pay general unsecured creditors on a pro-rata
basis from any available proceeds of the sale of the Open
Locations, any proceeds of its claims against Applebee's
Franchisor, LLC, any recovery under its subrogation claim against
Apple Central, LLC (if Equity Bank receives the remaining sale
proceeds) and any recovery from possible avoidance actions. Any
avoidance actions will be investigated and brought within 90 days
of the confirmation date for this Plan (unless extended by Court
order.) The claims of the general unsecured creditors are
impaired.
Class 5 consists of the claims of Debtor's owner, American
Franchise Holdings, LLC. The claim of American Franchise Holdings,
LLC is impaired, in that there will not be any funds left to pay
Debtor's ownership.
Upon entry of an Order confirming this Plan, all real estate and
personal property of the Debtor shall vest in Debtor free and clear
of all liens and encumbrances except such liens and encumbrances as
are specifically provided for in this Plan or in the Confirmation
Order.
The Debtor, if Court approved, will assign the Assumed Agreements
to Apple Sun, LLC as part of the sale of the Open Locations. The
Debtor will use the proceeds from the sale of the Open Locations to
implement the plan.
A full-text copy of the Plan of Reorganization dated January 28,
2025 is available at https://urlcurt.com/u?l=Thjn8q from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Frank Wendt, Esq.
Seth M. Snyder, Esq.
Brown & Ruprecht, P.C.
2323 Grand Blvd., Suite 1100
Kansas City, MO 64108
Telephone: (816) 292-7000
Facsimile: (816) 292-7050
Email: fwendt@brlawkc.com
About Apple central KC
Apple Central KC LLC is a Kansas Limited Liability Company formed
in 2015 for the purpose of acquiring 23 Applebee's restaurants in
the Kansas City market area.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Kan. Case No. 24-21427) on October 30,
2024. In the petition signed by Michael Rummel, authorized
signatory, the Debtor disclosed up to $10 million in assets and up
to $50 million in liabilities.
Judge: Dale L Somers oversees the case.
Frank Wendt, Esq., at Brown & Ruprecht, PC represents the Debtor as
legal counsel.
ASHLEY SELMAN: Files Emergency Bid to Use Cash Collateral
---------------------------------------------------------
Ashley Selman Farms Partnership asked the U.S. Bankruptcy Court for
the Northern District of Mississippi for authority to use cash
collateral.
The company requires the use of cash collateral to continue
operations and pay other necessary business expenses.
Guaranty Bank and Trust Company, Ashley's principal secured lender,
asserts various interests in substantially all of the company's
personal and real property including farm products and accounts
receivable. The bank provided crop production financing for the
company's 2024 crops. Triangle Chemical Company also asserts a
security interest in crops and cash collateral.
As adequate protection, Guaranty Bank and Trust Company will be
granted replacement security interests in, and liens on, all
post-petition acquired property of the company.
Ashley will continue to maintain, and pay for, insurance on all of
its property and assets.
A court hearing is scheduled for Feb. 25.
Guaranty Bank can be reached through its counsel:
Ashley N. Lane, Esq.
Gore, Kilpatrick & Dambrino, PLLC
2000 Gateway, Suite 160 (38901)
Post Office Box 901
Grenada, MS 38902-0901
662.226.1891 (telephone)
662.226.2237 (facsimile)
Alane@gorekilpatrick.com
Triangle Chemical Company can be reached through its counsel:
Toni Campbell Parker, Esq.
45 North BB King Blvd., Ste. 201
Memphis, TN 38103
901-483-1020
tparker002@att.net
About Ashley Selman Farms Partnership
Ashley Selman Farms Partnership is a privately held company
operating in the oilseed and grain farming industry.
Ashley filed Chapter 11 petition (Bankr. N.D. Miss. Case No.
25-10118) on January 15, 2025, listing between $10 million and $50
million in both assets and liabilities. Ashley Selman, member and
president of Ashley, signed the petition.
Craig M. Geno, Esq., at the Law Offices of Craig M. Geno, PLLC,
represents the Debtor as bankruptcy counsel.
ATLANTIC HILLS: Unsecureds Will Get 10% of Claims in Plan
---------------------------------------------------------
Atlantic Hills, LLC, and its affiliates filed with the U.S.
Bankruptcy Court for the Southern District of Florida an Amended
Disclosure Statement describing Substantive Consolidation Plan of
Reorganization dated January 29, 2025.
In 2021 Sanchez Hughley, (referred to sometimes as "Hughley" or
"Funder"), approached Jamie Goldstein, to invest and help expand
Hughley's golf cart and motorcycle sales, customization and service
business. At the time, the business was operating out of 127 NW 13t
h#6 Street Boca Raton, FL 33432.
The goal of the business was to sell, repair, rent and customize
golf carts, motorcycles and LSV Electric Vehicles. Hughley had
prior knowledge and experience in the industry and approached
Goldstein to be the financial investor. Sanchez would be the
operating partner in charge of managing, operating and growing the
golf cart business. Goldstein contributed an initial $500,000 for
inventory, operations and to acquire/build out showroom and service
locations.
Over the approximate next 18 months Hughley operated but mismanaged
operations, operating funds and customer deposits requiring
Goldstein to contribute additional capital to the approximate total
amount of $1,400,000. Capital was utilized to acquire new
manufacturers, pay off American Express, operate the business,
refund disgruntled customers, salvage purchase made by customers
who put down deposits but were misused, try to salvage existing
agreements with manufacturers, etc.
In March 2023, Goldstein filed a Complaint against Hughley,
seeking, inter alia, damages caused by Hughley to Goldstein, in the
loss of Goldstein's investment due to the mismanagement of Hughley.
As the lawsuit continued, it was determined by Goldstein that the
Debtors' businesses were in trouble and needed protection from
their creditors, in order to provide Goldstein with time to
determine how to best protect what assets remained of the Debtors,
and to consider a path forward. As a result, on September 15, 2023
all of the Debtors filed for Chapter 11 protection.
Although the Debtors are separate business entities, the Debtors
recognize that under Hughley's management, it may not have been
clear to the public which Debtor the public was the operating
entity. As a result, and to avoid any damage caused by the
confusion when Hughley was in sole charge of the businesses, the
Plan presented to creditors substantively consolidates the debts.
By doing this, all creditors, regardless of the Debtor they may
have, or thought they may have done business with, will all be
treated equally and fairly.
Class 4 consists of all Unsecured Claims. Upon the Effective Date
of the Plan, the Debtors will cause a payment to the Class 3
creditors holding Allowed Class 3 claims, of a total distribution
of 10% of each holders Allowed General Unsecured Claims. This
distribution will be account of, and in full satisfaction of the
Class 3 claims. The source of funding for the distribution will be
derived from funds of the provided by Funder and/or the Debtors.
The Debtors have already begun filing objections to proofs of
claims that have been filed. While the Debtors continue to evaluate
claims filed, it is estimated that the total creditor body of this
Class should be around $50,000.00-$95,000.00. This Class is
impaired.
Class 5 consists of all Interests in the Debtors. Atlantic is the
holding company and currently the sole owner of Power Sports and
Golf Carts. Jamie Goldstein is the sole owner of Atlantic. The
Class 4 are insiders of the Debtors. Class 4 shall receive no
Distributions on account of their Interests. All pre-petition
interests in the Debtor shall be remain. Class 4 is impaired under
the Plan.
The Plan contemplates that funding the distributions set forth in
the Plan will be derived from personal monies of the Funder as well
as from the operations of the Debtors' businesses. The funds needed
to pay the allowed professional fees incurred by the Debtor in this
chapter 11 case are owed by the Debtor, but the Funder has agreed
to pay these fees and costs.
A full-text copy of the Amended Disclosure Statement dated January
29, 2025 is available at https://urlcurt.com/u?l=k95FqB from
PacerMonitor.com at no charge.
Attorneys for the Debtors:
Brian S. Behar, Esq.
BEHAR, GUTT & GLAZER, P.A.
DCOTA, Suite A-350
1855 Griffin Road
Ft. Lauderdale, FL 33180
Tel: (305) 931-3771
Fax: (305) 931-3774
About Atlantic Hills
Atlantic Hills, LLC filed a Chapter 11 petition (Bankr. S.D. Fla.
Case No. 23-17432) on Sept. 15, 2023, with up to $50,000 in assets
and $50,001 to $100,000 in liabilities.
Judge Erik P. Kimball oversees the case.
Brian S. Behar, Esq., at Behar, Gutt & Glazer, P.A., is the
Debtor's legal counsel.
ATLAS PACKAGING: Seeks to Tap Keck Legal as Bankruptcy Counsel
--------------------------------------------------------------
Atlas Packaging Corporation seeks approval from the U.S. Bankruptcy
Court for the Northern District of Georgia to employ Keck Legal,
LLC as counsel.
The firm will render these services:
(a) give the Debtor legal advice with respect to its powers
and duties;
(b) prepare on behalf of the Debtor necessary legal papers;
(c) assist examination of the claims of creditors;
(d) assist with formulation and preparation of the disclosure
statement and plan of reorganization and with the confirmation and
consummation thereof; and
(e) perform all other legal services for the Debtor that may
be necessary herein.
The firm will be paid at these hourly rates:
Benjamin Keck, Attorney $465
Maysen Moorehad, Attorney $265
Selah Owusu, Paraprofessional $125
Juan Montes, Paraprofessional $115
Miguel Quinonez, Paraprofessional $105
On January 24, 2025, the firm received a retainer of $22,172.76
from Fuad Bhatti, one of the Debtor's equity holders.
Mr. Keck disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Benjamin Keck, Esq.
Keck Legal, LLC
2801 Buford Highway NE, Suite 115
Atlanta, GA 30329
Telephone: (470) 826-6020
Email: bkeck@kecklegal.com
About Atlas Packaging Corporation
Atlas Packaging Corporation operates as a contract packaging
company based in Atlanta, Ga., specializing in filling liquids,
pastes, and other difficult-to-handle products in squeeze tubes and
rigid containers. The company primarily serves the automotive
aftermarket sector, handling products including adhesives, cream
hardeners, maintenance compounds, and specialty materials.
Atlas Packaging sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-50806) on January 25,
2025. In its petition, the Debtor reported between $500,000 and $1
million in both assets and liabilities.
The Debtor is represented by Benjamin Keck, Esq., at Keck Legal,
LLC, in Atlanta, Ga.
BELL CANADA: S&P Rates New USD-Denominated Subordinated Notes 'BB+'
-------------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' issue-level rating to Bell
Canada's (a wholly owned subsidiary of BCE Inc.; BBB/Stable/ A-2)
proposed US dollar-denominated fixed-to-fixed rate subordinated
notes (2055-A and 2055-B notes) due 2055. The company intends to
use the net proceeds from these notes to fund upcoming maturities
and for other general corporate purposes.
S&P said, "We classify these notes as hybrid securities with
intermediate equity content (50%). This reflects the offering's
permanence, subordination, and deferability features. In line with
our criteria, we will reclassify the notes as having minimal equity
content after 2035, because the remaining period until maturity
will be less than 20 years.
"We rate these securities two notches below our 'BBB' long-term
issuer credit rating on BCE to reflect their subordination and
management's ability to defer interest payments on the
instrument."
The long-term nature of the subordinated debentures, along with the
company's limited ability and lack of incentives to redeem the
issuance meets our standards for permanence. BCE has emphasized its
willingness to maintain the instrument as part of its permanent
capital structure. In the event BCE were to redeem either of the
instruments before the effective maturity date, they must be
replaced with an equivalent or stronger equity content instrument
issued up to or on the date the original hybrid is redeemed. The
instruments are subordinated to all BCE's existing and future
senior debt obligations, thereby satisfying the condition for
subordination. In addition, the interest payments are deferrable,
which fulfills the deferability element.
BELLEVUE HOSPITAL: Files Chapter 11 Bankruptcy in Ohio
------------------------------------------------------
On February 5, 2025, The Bellevue Hospital filed Chapter 11
protection in the U.S. Bankruptcy Court for the Northern District
of Ohio.
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 The Bellevue Hospital
The Bellevue Hospital is a healthcare provider offering a range of
services, including cancer care, cardiac and pulmonary rehab,
diagnostic imaging, emergency care, and surgery. It serves
residents of Bellevue, Clyde, Fremont, and surrounding areas,
providing care 24/7. The organization is governed by a board of
trustees and operates as a not-for-profit corporation. TBH was
founded in 1914 and has interests in several subsidiary entities,
including The Bellevue Hospital Foundation, Bellevue Professional
Services, Inc., Bellevue Hospital Pain Management, LLC, Prairie
Ridge, LLC, and Bellevue Hospital Medical Holdings, LLC.
The Bellevue Hospital sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ohio Case No. 25-30191) on February
5, 2025. In its petition, the Debtor reports estimated assets and
liabilities between $10 million and $50 million.
Honorable Bankruptcy Judge Mary Ann Whipple handles the case.
The Debtor is represented by:
Richard K. Stovall, Esq.
ALLEN STOVALL NEUMAN & ASHTON LLP
10 West Broad Street, Suite 2400
Columbus OH 43215
Tel: (614) 221-8500
E-mail: stovall@asnalaw.com
BIOLASE INC: Seeks to Extend Plan Exclusivity to April 29
---------------------------------------------------------
November 26, Inc. f/k/a Biolase, Inc., and its Debtor 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 29 and June 30, 2025,
respectively.
The Debtors claim that cause exists to extend the Exclusive
Periods. First, the Debtors have made significant progress in
moving these cases to successful completion, including: (a)
successfully completing and closing the Sale of substantially all
of their assets; (b) preparing and filing the schedules of assets
and liabilities and statements of financial affairs; (c) preparing
and filing the Debtors' monthly operating reports; (d) resolving
all contested matters to date and effectuating the Global
Settlement; (e) settling Sonendo's and PipStek's large general
unsecured claims; and (f) continuing negotiations with their key
stakeholders regarding an exit path from chapter 11.
The Debtors explain that they seek the extension to preserve the
status quo while the confirmation process runs its course, given
the significant progress made to date with respect to the Plan. If
a competing chapter 11 plan is filed during the Exclusive Periods
and before the effective date of the Combined Plan and Disclosure
Statement, there would be a disruptive and detrimental effect on
these cases and all interested parties.
In addition, the filing of any competing plan could greatly
complicate and increase the cost of administering these chapter 11
cases. Accordingly, the relief requested will not result in a delay
of the plan process and will simply permit the process to move
forward in an orderly fashion at significantly less cost to the
estates.
Lastly, creditors will not be harmed by extending exclusivity. This
is the Debtors' first motion to extend the Exclusive Periods. The
Debtors are not seeking the extension of the Exclusive Periods to
delay administration of these cases or to exert pressure on its
creditors rather, an extension would allow the Debtors to continue
with winding-down their operations.
The Debtors assert that they have worked diligently over the past
few months to preserve the value of their assets during the
pendency of these cases and require the extension sought by this
Motion to ensure that they are able to seek confirmation without
any unnecessary distractions that would be caused by competing
chapter 11 plans. Given the limited extension requested and the
circumstances described herein, the extension aligns with the
intent and purpose of section 1121 of the Bankruptcy Code and
should be granted.
Co-Counsel to the Debtors:
M. Blake Cleary, Esq.
Brett M. Haywood, Esq.
Maria Kotsiras, Esq.
Shannon A. Forshay, Esq.
POTTER ANDERSON & CORROON LLP
1313 N. Market Street, 6th Floor
Wilmington, Delaware 19801
Tel: (302) 984-6000
Fax: (302) 658-1192
Email: bcleary@potteranderson.com
bhaywood@potteranderson.com
mkotsiras@potteranderson.com
sforshay@potteranderson.com
Joshua D. Morse, Esq.
Claire K. Wu, Esq.
PILLSBURY WINTHROP SHAW PITTMAN LLP
Four Embarcadero Center, 22nd Floor
San Francisco, CA 94111-5998
Tel: (415) 983-1000
Fax: (415) 983-1200
Email: joshua.morse@pillsburylaw.com
claire.wu@pillsburylaw.com
- and -
Dania Slim, Esq.
Caroline Tart, Esq.
PILLSBURY WINTHROP SHAW PITTMAN LLP
31 West 52nd Street
New York, NY 10019-6131
Tel: (212) 858-1000
Fax: (212) 858-1500
Email: dania.slim@pillsburylaw.com
caroline.tart@pillsburylaw.com
About Biolase, Inc.
Biolase, Inc., a company in Foothill Ranch, Calif., and its
affiliates manufacture and market dental laser systems. The
Debtors' proprietary systems allow dentists, periodontists,
endodontists, pediatric dentists, oral surgeons, and other dental
specialists to perform a broad range of minimally invasive dental
procedures, including cosmetic, restorative, and complex surgical
applications.
Biolase and its affiliates filed Chapter 11 petitions (Bankr. D.
Del. Lead Case No. 24-12245) on Oct. 1, 2024. John Beaver,
president and chief executive officer, signed the petitions.
The Debtors reported total assets of $30,641,000 and total
liabilities of $32,767,000 as of June 30, 2024.
Judge Karen B. Owens oversees the cases.
The Debtors tapped Potter Anderson & Corroon, LLP and Pillsbury
Winthrop Shaw Pittman, LLP as legal counsel; SSG Capital Advisors
as investment banker; and B. Riley Financial, Inc., as financial
advisor. Epiq Corporate Restructuring, LLC, is the Debtors'
administrative advisor and claims and noticing agent.
BORDER PROPERTIES: Seeks to Tap James & Haugland as Legal Counsel
-----------------------------------------------------------------
Border Properties, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Texas to employ James & Haugland,
PC as counsel.
The firm will provide these services:
(a) analyze the Debtor's financial situation, and render
advise in determining whether to file a petition in bankruptcy;
(b) prepare and file the voluntary petition, schedules,
statement of financial affairs, plan of reorganization and
disclosure statement, as required;
(c) represent the Debtor at the initial debtor conference,
first meeting of creditors and confirmation hearing, and any
adjourned hearings thereof;
(d) represent the Debtor in adversary proceedings and other
contested bankruptcy matters;
(e) give the Debtor legal advice with respect to powers and
duties;
(f) prepare on behalf of the Debtor, the necessary legal
papers;
(g) help the Debtor with any necessary documents for obtaining
post-petition credit, offsets, etc.; and
(h) perform all of the legal services for the Debtor, which
may be necessary herein.
The firm's professionals will be paid at these hourly rates:
Corey Haugland, Attorney $400
Jamie Wall, Attorney $400
Paralegals $125
The firm received a retainer of $11,738 from Border Services, LLC,
an affiliate of the Debtor, on January 30, 2025.
In addition, the firm was paid $6,283.60 for pre-petition services
rendered out of the initial retainer, leaving $5,454.40 as the
retainer in the possession of the firm as of the date of the
Chapter 11 filing.
Ms. Haugland disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Corey W. Haugland, Esq.
James & Haugland, PC
609 Montana Avenue
El Paso, TX 79902
Telephone: (915) 532-3911
Facsimile: (915) 541-6440
Email: chaughland@ighpc.com
About Border Properties Group LLC
Border Properties Group LLC is the fee simple owner of six
properties located in Ruidoso, New Mexico, and El Paso, Texas, with
a total current value of $9.96 million.
Border Properties Group LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 25-30142) on
February 3, 2025. In its petition, the Debtor reports total assets
of $10,000,000 and total liabilities of $15,641,365.
Honorable Bankruptcy Judge Christopher G. Bradley handles the
case.
Corey W. Haugland, Esq., at James & Haugland, PC serves as the
Debtor's counsel.
BOVAN ENTERPRISES: Hires Simen Figura & Parker as Legal Counsel
---------------------------------------------------------------
Bovan Enterprises, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of Michigan to employ Simen, Figura
& Parker, PLC to handle its Chapter 11 case.
Peter Mooney, Esq., the primary attorney in this representation,
will be paid at his hourly rate of $295, plus expenses.
The firm also received a $10,000 retainer for pre-petition work.
Mr. Mooney disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Peter T. Mooney, Esq.
Simen, Figura & Parker, PLC
5206 Gateway Centre Ste. 200
Flint, MI 48507
Telephone: (810) 235-9000
Email: pmooney@sfplaw.com
About Bovan Enterprises
Bovan Enterprises, LLC, doing business as Bovan Floral Group, is a
unified floral business that brings together the legacy of three
renowned flower shops -- Bentley Florist, June's Floral Company,
and Ketzler Florist -- under one roof in Burton, Mich. The company
specializes in a range of floral services, including fresh, silk,
and dried flower arrangements, as well as wedding and sympathy
flowers. It also offers plants, gift baskets, gourmet fruit
baskets, and greeting cards.
Bovan Enterprises filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. E.D. Mich. Case No. 25-30084) on
January 17, 2025, with $113,685 in assets and $1,757,123 in
liabilities. Waneita Bovan, member, signed the petition.
Judge Joel D. Applebaum presides over the case.
Peter T. Mooney, Esq., at Simen, Figura & Parker, PLC represents
the Debtor as legal counsel.
BROWN FAMILY: Tamara Miles Ogier Named Subchapter V Trustee
-----------------------------------------------------------
The U.S. Trustee for Region 21 appointed Tamara Miles Ogier, Esq.,
at Ogier, Rothschild & Rosenfeld, PC as Subchapter V trustee for
Brown Family Network, LLC.
Ms. Ogier will be paid an hourly fee of $450 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Ogier declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Tamara Miles Ogier, Esq.
Ogier, Rothschild & Rosenfeld, PC
P.O. Box 1547
Decatur, GA 30031
Phone: (404) 525-4000
About Brown Family Network
Brown Family Network, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-51111) on
February 3, 2025, listing between $1 million and $10 million in
both assets and liabilities.
Benjamin R. Keck, Esq., at Keck Legal, LLC represents the Debtor as
bankruptcy counsel.
CALI MADE: Seeks to Hire Michael Jay Berger as Bankruptcy Counsel
-----------------------------------------------------------------
Cali Made Cold Planing, LLC seeks approval from the U.S. Bankruptcy
Court for the Central District of California to employ the Law
Offices of Michael Jay Berger as counsel.
The firm will render these services:
(a) communicate with creditors of the Debtor;
(b) review the Debtor's Chapter 11 bankruptcy petition and all
supporting schedules;
(c) advise the Debtor of its legal rights and obligations in a
bankruptcy petition;
(d) work to bring the Debtor into full compliance with
reporting requirements of the Office of the United states Trustee;
(e) prepare status reports as required by the court; and
(f) respond to any motions filed in the Debtor's bankruptcy
proceeding.
(g) respond to creditor inquiries;
(h) review proofs of claim filed in the Debtor's bankruptcy;
(i) object to inappropriate claims;
(j) prepare Notices of Automatic Stay in all state court
proceedings in which the Debtor is sued during the pendency of its
bankruptcy proceedings; and
(k) if appropriate, prepare a Chapter 11 Plan of
Reorganization for the Debtor.
The firm will be paid at these hourly rates:
Michael Berger, Partner $645
Sofya Davtyan, Partner $595
Robert Poteete, Associate Attorney $475
Senior Paralegals/Law Clerks $275
Paralegals $200
On January 7, 2025, the firm received an initial retainer of
$12,500 via wire transfer and on January 23, 2025, received a
second installment of $12,500 and the $1,738 filing fee.
Mr. Berger disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Michael Jay Berger, Esq.
Law Offices of Michael Jay Berger
9454 Wilshire Blvd, 6th Floor
Beverly Hills, CA 90212
Telephone: (310) 271-6223
Facsimile: (310) 271-9805
Email: Michael.Berger@bankruptcypower.com
About Cali Made Cold Planing LLC
Cali Made Cold Planing LLC is a services company based in Mentone,
California.
Cali Made Cold Planing LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10398) on
January 24, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Scott H. Yun handles the case.
The Law Offices of Michael Jay Berger serves as the Debtor's
counsel.
CANVAS SARASOTA: Case Summary & Eight Unsecured Creditors
---------------------------------------------------------
Debtor: Canvas Sarasota, LLC
4300 Biscayne Blvd., Suite 202
Miami, FL 33137
Chapter 11 Petition Date: February 10, 2025
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 25-11395
Debtor's Counsel: Ismael Jose Labrador, Esq.
GALLARDO LAW FIRM, P.A.
8492 SW 8 Street
Miami, FL 33144
Tel: 305-261-7000
Email: bankruptcy@gallardolawyers.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Pablo Arce, Manager of Canvas Sarasota,
LLC.
A full-text copy of the petition, which includes a list of the
Debtor's eight unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/DYG4ZIA/CANVAS_SARASOTA_LLC__flsbke-25-11395__0001.0.pdf?mcid=tGE4TAMA
CAREMAX INC: Dismisses PwC as Auditor
-------------------------------------
CareMax Inc. disclosed in a Form 8-K Report filed with the U.S.
Securities and Exchange Commission that effective February 3, 2025,
the Audit Committee of the Board of Directors of the Company
authorized the dismissal of PricewaterhouseCoopers LLP as the
Company's independent registered public accounting firm.
PwC's reports on the Company's consolidated financial statements as
of and for the fiscal years ended December 31, 2023 and 2022 did
not contain an adverse opinion or a disclaimer of opinion, nor were
they qualified or modified as to uncertainty, audit scope, or
accounting principles, except that PwC's report on the consolidated
financial statements of the Company as of and for the year ended
December 31, 2023 included an explanatory paragraph indicating that
there was substantial doubt as to the Company's ability to continue
as a going concern.
During the Company's fiscal years ended December 31, 2023 and 2024,
and the subsequent interim period through February 3, 2025, there
were no (i) disagreements (as described in Item 304(a)(1)(iv) of
Regulation S-K and the related instructions) with PwC on any matter
of accounting principles or practices, financial statement
disclosure, or auditing scope or procedures which, if not resolved
to the satisfaction of PwC, would have caused PwC to make reference
to the matter in their report or (ii) reportable events (as
described in Item 304(a)(1)(v) of Regulation S-K and the related
instructions), except for the material weaknesses in the Company's
internal control over financial reporting identified by
management.
The Company lacks a sufficient complement of professionals with the
appropriate level of knowledge, training and experience to
appropriately analyze, record and disclose accounting matters
commensurate with our accounting and reporting requirements as a
public company. This material weakness contributed to the following
material weaknesses:
* The Company did not design and maintain formal controls to
analyze, account for and disclose complex transactions, including
the accounting for financial instruments and contingent earnout
liabilities.
* The Company did not design and maintain effective controls
over the accounting for revenue and accounts receivable
transactions, including controls to validate the terms of the
underlying revenue and accounts receivable transactions were
appropriately recorded.
About CareMax Inc.
CareMax Inc. is a provider of medical centers for elderly
patients.
CareMax and its affiliates sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 24-80093) on
November 17, 2024. In its petition, CareMax reported estimated
liabilities between $500 million and $1 billion and estimated
assets between $100 million and $500 million.
Judge Michelle V. Larson oversees the cases.
The Debtors tapped Thomas Robert Califano, Esq., at Sidley Austin,
LLP as bankruptcy counsel; Alvarez & Marsal North America, LLC as
financial advisor; and Piper Sandler & Co. as investment banker.
Stretto, Inc. is the Debtors' claims, noticing and solicitation
agent.
On December 4, 2024, the Office of the U.S. Trustee appointed an
official committee of unsecured creditors in these Chapter 11
cases. The committee tapped Pachulski Stang Ziehl & Jones LLP and
Sills Cummis & Gross PC as counsels and M3 Advisory Partners, LP as
financial advisor.
On December 19, 2024, Suzanne Koenig was appointed as the patient
care ombudsman in the Chapter 11 cases. She tapped SAK Management
Services, LLC, doing business as SAK Healthcare, as medical
operations advisor and Ross, Smith & Binford, PC as counsel.
CAREMAX INC: Exits Chapter 11 Bankruptcy
----------------------------------------
As previously disclosed, on November 17, 2024, CareMax, Inc., a
Delaware corporation, and certain of its controlled affiliates
commenced filing voluntary petitions in the United States
Bankruptcy Court for the Northern District of Texas seeking relief
under chapter 11 of title 11 of the United States Code.
On January 31, 2025, the Bankruptcy Court entered the Findings of
Fact, Conclusions of Law, and Order (I) Approving the Debtors'
Disclosure Statement on a Final Basis; and (II) Confirming the
Third Amended Joint Chapter 11 Plan of CareMax, Inc. and Its Debtor
Affiliates [Docket No. 587], confirming the Third Amended Joint
Chapter 11 Plan of the Company and its Debtor Affiliates.
On February 3, 2025, the Plan became effective pursuant to its
terms.
The Plan contemplates, among other things, the following:
* The Claims and Interests in the Debtors (other than
Administrative Claims, the payment of bid protections, DIP Claims,
Professional Fee Claims, Priority Tax Claims and U.S. Trustee
Statutory Fees) have been classified into seven classes, the
treatment of which is set forth in Article III of the Plan.
* On the Effective Date, all Existing Equity Interests in the
Company will be discharged, cancelled, released, and extinguished
under the Plan. Each Holder of an Equity Interest in the Company
will not receive any recovery on account of their Existing Equity
Interests under the Plan.
* The Debtors will consummate the Restructuring Transactions,
including, but not limited to, the ACO Sale Transaction, the Core
Centers Sale Transaction, the Pharmacy Sale Transactions and the
Care Optical Sale Transaction.
As previously disclosed, on November 17, 2024, the Company, Sparta
Merger Sub I LLC, a Delaware limited liability company and a
subsidiary of the Company, and Sparta Merger Sub II LLC, a Delaware
limited liability company and a subsidiary of the Company, entered
into a securities purchase agreement with RHG Network, LLC pursuant
to which the ACO Buyer agreed to purchase, subject to the terms and
conditions contained therein, 100% of the outstanding equity
securities of CareMax Accountable Care Network, LLC and CareMax
National Care Network, LLC, each a subsidiary of the Company,
representing the Medicare Shared Savings Program portion of the
Company's management services organization. The acquisition of the
Acquired Companies by the ACO Buyer pursuant to the ACO SPA closed
on February 3, 2025. Under the terms of the ACO SPA, the ACO Buyer
acquired the Acquired Companies from the Sellers for (i) $10
million, as set forth in the ACO SPA, and (ii) certain 2023 and
2024 Medicare Shared Savings Program payments, as set forth in the
ACO SPA.
The Company intends to wind down the ACO REACH and Medicare
Advantage portions of its management services organization.
As previously disclosed, on November 24, 2024, the Company entered
into a binding "stalking horse" asset purchase agreement and
ClareMedica Parent Holdings, LP, pursuant to which the Buyer agreed
to purchase, subject to the terms and conditions contained therein,
the "Acquired Assets" of the Company and certain of its
subsidiaries, consisting of a vast majority of the Company's
operating clinic business, and to assume certain liabilities. The
acquisition of the Core Centers Assets by the Buyer closed on
February 3, 2025. On the closing date, under the terms of the
Stalking Horse APA, the Buyer acquired the Acquired Assets and
assumed the Acquired Liabilities from the Seller Group for (i) a
cash payment of $35 million and (ii) units of ClareMedica Health
Partners, LLC, a wholly-owned subsidiary of Buyer Parent, having an
aggregate value of $65 million.
* Following the Effective Date, the Plan Administrator will
wind down and dissolve the Post-Effective Date Debtors.
Capital Structure
There were 3,816,049 shares of the Company's Common Stock
outstanding as of January 31, 2025. On the Effective Date, the
Company's Common Stock was discharged, cancelled, released, and
extinguished, and the holders thereof will not receive a
distribution or compensation on account of their equity interests.
Equity Interests
On the Effective Date, by operation of the Plan and Confirmation
Order, all agreements, instruments and other documents evidencing
any Equity Interest of the Company, including outstanding shares of
existing equity interests, and any rights of any holders thereof
were deemed discharged, canceled, released and extinguished, and of
no further force or effect, whether surrendered for cancellation or
otherwise.
Certain Information Regarding
Assets and Liabilities of the Company
In the Company's most recent monthly operating reports filed with
the Bankruptcy Court on January 30, 2025, the Company reported
aggregated total assets of approximately $1.7 billion and total
liabilities of approximately $1.4 billion as of December 31, 2024.
This financial information has not been audited or reviewed by the
Company's independent registered public acc ounting firm and may be
subject to future reconciliation or adjustments. This information
should not be viewed as indicative of future results.
Prepetition Indebtedness
On the Effective Date, by operation of the Plan and Confirmation
Order, the obligations of the Debtors under the Credit Agreement,
dated May 10, 2022 (as amended, modified, or supplemented from time
to time in accordance with the terms thereof), by and between the
Company, as borrower, certain of the Company's subsidiaries as
guarantors, Acquiom Agency Services LLC, as successor
Administrative Agent and Collateral Agent, and the lenders from
time to time party thereto were cancelled or terminated by their
terms.
In line with the implementation of the Plan and the restructuring
efforts, changes in the Company's leadership were also executed.
Pursuant to the Plan, effective as of the close of business on the
Effective Date, Carlos A. de Solo, Kevin Berg, Edward J. Borkowski,
Bryan Cho, Ralph De La Torre, M.D., Dr. Vincent Omachonu, Ryan
O'Quinn and Jose R. Rodriguez ceased to be directors of the
Company. In addition, effective as of the close of business on the
Effective Date, Carlos de Solo, Chief Executive Officer of the
Company, Alberto de Solo, Chief Operating Officer of the Company,
Kevin Wirges, Chief Financial Officer of the Company and Paul
Rundell, Chief Restructuring Officer of the Company, ceased to be
officers of the Company. On the Effective Date, Robert N.
Michaelson of Advisory Trust Group, LLC, the Plan Administrator,
was appointed as the sole officer and director of the Company.
About CareMax Inc.
CareMax Inc. is a provider of medical centers for elderly
patients.
CareMax and its affiliates sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 24-80093) on
November 17, 2024. In its petition, CareMax reported estimated
liabilities between $500 million and $1 billion and estimated
assets between $100 million and $500 million.
Judge Michelle V. Larson oversees the cases.
The Debtors tapped Thomas Robert Califano, Esq., at Sidley Austin,
LLP as bankruptcy counsel; Alvarez & Marsal North America, LLC as
financial advisor; and Piper Sandler & Co. as investment banker.
Stretto, Inc. is the Debtors' claims, noticing and solicitation
agent.
On December 4, 2024, the Office of the U.S. Trustee appointed an
official committee of unsecured creditors in these Chapter 11
cases. The committee tapped Pachulski Stang Ziehl & Jones LLP and
Sills Cummis & Gross PC as counsels and M3 Advisory Partners, LP as
financial advisor.
On December 19, 2024, Suzanne Koenig was appointed as the patient
care ombudsman in the Chapter 11 cases. She tapped SAK Management
Services, LLC, doing business as SAK Healthcare, as medical
operations advisor and Ross, Smith & Binford, PC as counsel.
CHESTNUT MED: U.S. Trustee Unable to Appoint Committee
------------------------------------------------------
The U.S. Trustee for Region 3 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Chestnut Med, LP.
About Chestnut Med LP
Chestnut Med, LP is a healthcare business operating at 5600
Chestnut Street in Philadelphia, Pa.
Chestnut Med sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. E.D. Pa. Case No. 25-10176) on January 15, 2025. In
its petition, the Debtor reported up to $50,000 in assets and
between $500,000 and $1 million in liabilities.
Judge Patricia M. Mayer handles the case.
The Debtor is represented by John Everett Cook, Esq. at The Law
Offices of Everett Cook, P.C.
CLEMENTS ELECTRIC: Unsecureds to Get $5K per Month for 36 Months
----------------------------------------------------------------
Clements Electric Texas, LLC filed with the U.S. Bankruptcy Court
for the Northern District of Texas a Plan of Reorganization under
Subchapter V dated January 28, 2025.
The Debtor offers full-service electrical services for homes and
businesses in the D/FW area. The Debtor suffered a large loss of
income due to embezzlement by two employees. This led to the
Debtor's inability to fully service its debt and ultimately the
filing of this case.
Under the Plan the Debtor will pay all Secured Claims in full and
Unsecured Claims will receive a pro rata share of a pool of funds
to be contributed by the Debtor.
The Debtor scheduled total Unsecured Claims in the amount of
$532,338.93.
Class 7 consists of Allowed Unsecured Claims. These Claims shall be
satisfied by the monthly distribution of each Claimant's Pro Rata
share of a pool of $5,000.00 per month funded by the Debtor, for a
period of 36 months from the Effective Date. These Claims are
Impaired, and the holders of these Claims are entitled to vote to
accept or reject the Plan.
Class 8 consists of Equity Interest Holders of the Debtor. Equity
Interests shall be retained by the owners of said Interests.
The Debtor intends to make all payments required under the Plan
from the net profits earned from the operation of the Debtor's
business and, if necessary, the capital contributions of its
owner.
A full-text copy of the Plan of Reorganization dated January 28,
2025 is available at https://urlcurt.com/u?l=NISolB from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Joyce W. Lindauer, Esq.
Joyce W. Lindauer, PLLC
1412 Main Street, Suite 500
Dallas, TX 75202
Telephone: (972) 503-4033
Facsimile: (972) 503-4034
About Clements Electric Texas
Clements Electric Texas, LLC offers full-service electrical
services for homes and businesses in the D/FW area.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Texas Case No. 24-33418) on October
30, 2024, with $50,001 to $100,000 in assets and $100,001 to
$500,000 in liabilities.
Judge Michelle V. Larson presides over the case.
Joyce W. Lindauer, Esq., at Joyce W. Lindauer Attorney, PLLC
represents the Debtor as bankruptcy counsel.
CYTOPHIL INC: Sec. 341(a) Meeting of Creditors on March 11
----------------------------------------------------------
On February 4, 2025, Cytophil Inc. filed Chapter 11 protection in
the U.S. Bankruptcy Court for the Eastern District of Wisconsin.
According to court filing, the Debtor reports $3,520,398 in
debt owed to 1 and 49 creditors. The petition states funds will be
available to unsecured creditors.
A meeting of creditors under Section 341(a) to be held on March 11,
2025 at 10:00 AM in Telephone Hearing.
About Cytophil Inc.
Cytophil Inc., d/b/a RegenScientific, operates in the field of
manufacturing medical devices.
Cytophil Inc. sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. E.D. Wis. Case No. 25-20576) on February 4, 2025. In
its petition, the Debtor reports total assets as of September 30,
2024 amounting to $1,131,109 and total liabilities as of September
30, 2024 amounting to $3,520,398.
Honorable Bankruptcy Judge G. Michael Halfenger handles the
case.
The Debtor is represented by:
Evan P. Schmit, Esq.
KERKMAN & DUNN
839 N. Jefferson St., Ste. 400
Milwaukee, WI 53202-3744
Tel: 414-277-8200
E-mail: eschmit@kerkmandunn.com
DAJMO TRUCKING: Seeks to Extend Plan Filing Deadline to April 2
---------------------------------------------------------------
Dajmo Trucking, LLC, asked the U.S. Bankruptcy Court for the
Western District of Pennsylvania to extend its period to file a
Plan of Reorganization and Disclosure statement for additional 60
days through and including April 2, 2025.
The Debtor operates a small trucking company that exclusively hauls
frack sand for the oil and has industry.
The Debtor intends to fund a plan, in part, with a lump sum from
the Debtor's principle. The Debtor's principle believes that these
funds will be available within 30 days. The Debtor believes that it
will now be profitable going forward due to changes in operations
and to the industry.
The Debtor asserts that an extension of sixty days to file a
Chapter 11 Plan will allow the company to show profitability, to
allow the Debtor's principle to obtain a lump sum to be used for
Plan funding, and for counsel to prepare and file a Chapter 11 Plan
and Disclosure Statement.
The Debtor further asserts that no parties will be harmed or
prejudiced by the extension of the exclusivity period to file a
Chapter 11 Plan. There are no pending motions for relief, dismissal
requests, or any other litigation happening in the case at this
time.
Dajmo Trucking LLC is represented by:
Christopher M. Frye, Esq.
Steidl & Steinberg
2830 Gulf Tower
707 Grant Street
Pittsburgh, PA 15219
Tel: (412) 391-8000
Email: chris.frye@steidl-steinberg.com
About Dajmo Trucking LLC
Dajmo Trucking LLC, filed a Chapter 11 bankruptcy petition (Bankr.
W.D. Pa. Case No. 24-21923-GLT) on Aug. 6, 2024. The Debtor hires
Steidl and Steinberg, P.C. as counsel.
DEBBIE OUTLAW: Files Chapter 11 Bankruptcy in Texas
---------------------------------------------------
On February 5, 2025, Debbie Outlaw Properties LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the Western District
of Texas.
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 not be available to unsecured creditors.
About Debbie Outlaw Properties LLC
Debbie Outlaw Properties LLC operates in the real estate sector.
Debbie Outlaw Properties LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 25-10167) on
February 5, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $10 million and $50 million each.
Honorable Bankruptcy Judge Shad Robinson handles the case.
The Debtor is represented by:
Frank B Lyon, Esq.
FRANK B LYON
PO Box 50210
Austin TX 78763
Tel: (512) 345-8964
Email: frank@franklyon.com
DIAMOND ELITE: Seeks to Hire Guidant Law as Bankruptcy Counsel
--------------------------------------------------------------
Diamond Elite 6516, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Arizona to employ Guidant Law, PLC as
bankruptcy counsel.
The firm will render these services:
(a) advise the Debtor with respect to all legal matters in
connection with the continued operation of its business, rejecting
executory contracts, and making new contracts;
(b) prepare pleadings and applications and conduct
examinations incidental to administarion of the bankruptcy
proceeding;
(c) develop the relationship of the status of the Debtor to
the claims of creditors;
(d) advise the Debtor of its rights, duties and obligations;
(e) take any and all necessary action incident to the proper
preservation and administration of the bankruptcy estate; and
(f) advise the Debtor in the formulation and presentation of a
plan of reorganization pursuant to Chapter 11 of the Bankruptcy
Code and concerning matters relating thereto.
The hourly rates of the firm's counsel and staff are as follows:
D. Lamar Hawkins, Attorney $490
Gary Michael Smith, Attorney $450
Sam Saks, Attorney $450
Scott Jensen, Attorney $445
JoAnn Falgout, Associate Attorney $395
Karen Bentley, Associate Attorney $395
Paralegal $160 - $185
Clerk $80 - $150
In addition, the firm will seek reimbursement for expenses
incurred.
Mr. Hawkins disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
D. Lamar Hawkins, Esq.
Guidant Law, PLC
402 E. Southern Ave.
Tempe, AZ 85282
Telephone: (602) 888-9229
Facsimile: (480) 725-0087
Email: lamar@guidant.law
About Diamond Elite 6516 LLC
Diamond Elite 6516 LLC is a single asset real estate debtor, as
defined in 11 U.S.C. Section 101(51B).
Diamond Elite 6516 LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 25-00905) on February 3,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
D. Lamar Hawkins, Esq., at Guidant Law, PLC serves as the Debtor's
counsel.
DIAMOND SCAFFOLD: Panel Taps Michael Moecker as Plan Administrator
------------------------------------------------------------------
The official committee of unsecured creditors appointed in the
Chapter 11 case of Diamond Scaffold Services, LLC seeks approval
from the U.S. Bankruptcy Court for the Southern District of Alabama
to employ Michael Moecker & Associates, Inc. as plan
administrator.
The firm will assist the committee in the management of assignments
for the benefit of creditors, bankruptcy and receivership cases,
and expert witness and chief restructuring officer assignments.
The hourly rates of the firm's professionals are as follows:
Plan Administrator $375
Case Management Services $200 - $250
Administrative and Accounting Services $75
Mark Healy, executive vice president at Michael Moecker &
Associates, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Mark C. Healy
Michael Moecker & Associates, Inc.
1885 Marina Mile Boulevard, Suite 103
Fort Lauderdale, FL 33301
Telephone: (904) 210-7023
Email: MHealy@Moecker.com
About Diamond Scaffold Services
Diamond Scaffold Services LLC -- https://www.diamondscaffold.com/
-- is an authorized distributor of Ring-lock, Cup-lock, Shoring,
and Frame Scaffold. Diamond Scaffold Services, LLC, sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
S.D. Ala. Case No. 22-11208) on June 21, 2022. In the petition
filed by Jewell Wayne Sumrall, president, the Debtor estimated
assets between $1 million and $10 million and liabilities between
$10 million and $50 million.
Judge Jerry Oldshue oversees the case.
Alexandra K. Garrett, Esq., at Silver, Voit & Garrett, is the
Debtor's counsel. Jason R. Watkins is serving as special counsel,
representing the Debtor in various litigation.
On July 21, 2022, the court appointed an official committee of
unsecured creditors in this Chapter 11 case. The committee
appointed Michael Moecker & Associates, Inc. as its plan
administrator.
DMD FLORIDA: Seeks to Hire GGG Partners as Financial Advisor
------------------------------------------------------------
DMD Florida Development 2, LLC and its affiliates seek approval
from the U.S. Bankruptcy Court for the Southern District of Florida
to employ GGG Partners, LLC as financial advisor.
The firm will provide these services:
(a) advise the Debtors with respect to finances and guide them
in making sound financial decisions for their operations in order
to ensure that they reap the benefits of reorganization and will be
able to continue their operations and comply with the rules of the
court;
(b) prepare financial documents for the Debtors' edification
and use in making sound financial decisions, and other documents as
necessary for the success of their Chapter 11 cases; and
(c) provide financial advice to the Debtors in negotiation
with their creditors and in the preparation of a confirmable plan.
The hourly rates of the firm's professionals are as follows:
Katie Goodman, Managing Partner $450
Other Partners $375 – $400
In addition, the firm will seek reimbursement for expenses
incurred.
The firm will also require a postpetition retainer of $10,000.
Ms. Goodman disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Katie Goodman
GGG Partners LLC
2870 Peachtree Rd, Ste 502
Atlanta, GA 30305
Telephone: (404) 256-0003
Facsimile: (404) 256-4555
Email: Info@GGGPartners.com
About DMD Florida Development 2
DMD Florida Development 2, LLC and its affiliates, DMD Florida
Restaurant Group C LLC, and DMD Florida Restaurant Group D, LLC,
filed Chapter 11 petitions (Bankr. S.D. Fla. Lead Case No.
25-10088) on January 6, 2025. Jack Flechner, manager and co-chief
executive officer, signed the petitions.
At the time of the filing, each Debtor reported $500,001 to $1
million in assets and $10 million to $50 million in liabilities.
Judge Scott M. Grossman oversees the cases.
The Debtors tapped Wernick Law, PLLC as counsel and GGG Partners
LLC as financial advisor.
DW TRUMP: Unsecureds to be Paid in Full in Sale Plan
----------------------------------------------------
DW Trump, Inc. filed with the U.S. Bankruptcy Court for the
Southern District of New York a Disclosure Statement describing
Plan of Reorganization dated January 29, 2025.
The Debtor is a New York corporation. The Debtor owns real property
located at residential real estate, a single family home, located
at 26 Parker Boulevard, Monsey, New York 10952 ("Subject
Premises"). The Debtor is entitled to collect rental income from
Ephriam and Dina Weissmandl.
The bankruptcy filing was necessitated to stay a Foreclosure action
brought in New York State Supreme Court (Rockland County), said
action, entitled 1Sharpe Income Fund LP, v. DW Trump, Inc., et al,
Index No. 33946/2021. There has been no adjudication of the issues
by the Court in New York State Court. Notwithstanding same, the
Bankruptcy Court has determined that 1Sharpe ("Secured Lender") has
a valid Claim against the Debtor. The Loan secured the Subject
Premises.
The Debtor filed this Chapter 11 Case to (1) resolve the above
Foreclosure action; (2) restructure its operations; and (3) resolve
claims of all creditors in one forum.
The Plan will be funded by funds received via the sale of real
property owned by the Debtor. It is anticipated that said amount
will be sufficient to satisfy all Administrative Claims, Priority
Claims, Secured Claims and Unsecured Claims.
Class 2 consists of General Unsecured Claims. To the best of the
Debtor's knowledge, and based upon the treatment of claims as
contained in the within Disclosure statement, General Unsecured
Claims are represented as $18,398.72. It is anticipated that
allowed General Unsecured Claims will be paid in full, as it is
reasonably anticipated that there will be excess proceeds from the
sale of the Subject Premises (after the satisfaction of all other
Administrative Claims and Expenses, Priority Claims and Secured
Claims).
In the event that funds sufficient to satisfy all General Unsecured
Claims in full is not received, Unsecured Claims shall be paid
proportionately. This Class is unimpaired.
Class 3 consists of f equity interest holders. Debtor to receive
balance of Proceeds realized after sale Subject Premises and
payment of all allowed Claims.
Payments and distributions under the Plan will be funded by the
sale of the Subject Premises.
Post-confirmation, the Debtor will continue to be managed by
Ephraim Weissmandl.
As indicated at page 25, the estimated market value of the Real
Property is $1,500,000 to $2,500,000. It is more than reasonably
anticipated that the Debtor will possess sufficient funds to
satisfy in full all of the allowed Claims. Hence, there is minimal
risk that creditors will not be paid as proposed in the within
Plan.
A full-text copy of the Disclosure Statement dated January 29, 2025
is available at https://urlcurt.com/u?l=CiUZBK from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Barry D. Haberman, Esq.
The Law Office of Barry D. Haberman
254 South Main Street, #404
New City, NY 10956
Tel: (845) 638-4294
Email: bdhlaw@aol.com
About DW Trump
DW Trump is primarily engaged in renting and leasing real estate
properties.
DW Trump, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-22083) on Jan. 31,
2024, with $1 million to $10 million in both assets and
liabilities. Ephriam Weismandl, DW Trump treasurer, signed the
petition.
Judge Sean H. Lane oversees the case.
The Debtor is represented by Barry D. Haberman, Esq., at The Law
Office of Barry D. Haberman.
ELECTRIC LAST: Judge Recommends Dismissing PIPE Deal Investor Suit
------------------------------------------------------------------
Gillian R. Brassil of Bloomberg Law reports that a federal
magistrate judge has recommended dismissing investor claims against
executives of a bankrupt electric vehicle startup, SPAC leaders,
and an accounting firm related to a $130 million private investment
in a public entity deal.
In a February 7, 2025 recommendation, Judge Laura D. Hatcher ruled
that shareholders did not sufficiently demonstrate that three
executives of Electric Last Mile Inc. -- which became Electric Last
Mile Solutions after its 2021 SPAC merger -- were responsible for
the alleged misrepresentations. She advised granting five motions
to dismiss.
About Electric Last Mile Solutions
Electric Last Mile Solutions, Inc. (Nasdaq: ELMS) has been focused
on defining a new era in which commercial vehicles run clean as
connected and customized solutions that make businesses more
efficient and profitable. ELMS' first vehicle, the Urban Delivery,
was anticipated to be the first Class 1 commercial electric vehicle
in the U.S. market. On the Web: http://www.electriclastmile.com/
Troy, Michigan-based Electric Last Mile Solutions, Inc., wholly
owns Electric Last Mile, Inc., the operating subsidiary.
Electric Last Mile Solutions and Electric Last Mile Inc. filed for
Chapter 7 bankruptcy (Bankr. D. Del. Case No. 22-10537 and
22-10538) on June 14, 2022.
Electric Last Mile Inc. estimated $50 million to $100 million in
assets and liabilities as of the bankruptcy filing. Electric Last
Mile Solutions estimated less than $50,000 in assets and debt.
The Debtors' counsel is Kara Hammond Coyle, Esq., at Young Conaway
Stargatt & Taylor LLP.
EMERSON4411 LP: Arturo Cisneros Named Subchapter V Trustee
----------------------------------------------------------
The U.S. Trustee for Region 16 appointed Arturo Cisneros as
Subchapter V trustee for Emerson4411 LP.
Mr. Cisneros will be paid an hourly fee of $600 for his services as
Subchapter V trustee while the trustee administrator will be
compensated at $200 per hour. In addition, the Subchapter V trustee
will receive reimbursement for work-related expenses incurred.
Mr. Cisneros declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Arturo Cisneros
3403 Tenth Street, Suite 714
Riverside, CA 92501
Phone: (951) 682-9705/(951) 682-9707
Email: Arturo@mclaw.org
About Emerson4411 LP
Emerson4411, LP sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Calif. Case No. 25-10625) on February
3, 2025, with $100,001 to $500,000 in both assets and liabilities.
Judge Mark D. Houle presides over the case.
Bruce A. Wilson, Esq., at Bruce A. Wilson, Aplc represents the
Debtor as legal counsel.
EPIC COMPANIES: Hires Fremstad Law as Special Litigation Counsel
----------------------------------------------------------------
EPIC Companies Midwest, LLC and its affiliates seek approval from
the U.S. Bankruptcy Court for the District of North Dakota to
employ Fremstad Law as special litigation counsel.
The Debtors need a special counsel to negotiate with, and
potentially litigate against, the following EPIC-related projects,
which borrowed funds from the Debtors:
(a) Sheyenne 32 North, LLC;
(b) Sheyenne 32 South, LLC;
(c) Sheyenne 32 South Residential, LLC;
(d) EPIC Gateway East Real Estate Holdings, LLC;
(e) EPIC Gateway, LLC; and
(f) EPIC Gateway North Real Estate Holdings, LLC.
The hourly rates of the firm's counsel and staff are:
Joel Fremstand, Attorney $400
Mark Western, Attorney $375
Terri Bourcy Smith, Paralegal $165
In addition, the firm will seek reimbursement for expenses
incurred.
Mr. Fremstad disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Joel M. Fremstad, Esq.
Fremstad Law Firm
P.O. Box 3143
Fargo, ND 58108
Telephone: (701) 478-7620
Email: joel@fremstadlaw.com
About EPIC Companies Midwest
EPIC Companies Midwest, LLC is a real estate investing and
development firm in Minot, N.D.
EPIC and its affiliates filed voluntary Chapter 11 petitions
(Bankr. D.N.D. Lead Case No. 24-30281) on July 8, 2024. Patrick
Finn, chief restructuring officer, signed the petitions.
At the time of the filing, EPIC reported $10 million to $50 million
in both assets and liabilities.
Judge Shon Hastings oversees the cases.
The Debtors tapped Steven Kinsella, Esq., at Fredrikson & Byron, PA
as bankruptcy counsel and Fremstad Law as special litigation
counsel.
The U.S. Trustee for Region 12 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee is represented by the law firm of Stinson, LLP.
ESCAMBIA OPERATING: To Sell Gulfport Propety to Hau Nguyen
----------------------------------------------------------
Drew McManigle, the duly-appointed chapter 11 trustee of Escambia
Operating Company LLC and Blue Diamond Energy, Inc., seeks to sell
real properties, free and clear of liens, interests, and
encumbrances.
Blue Diamond holds record title to the parcels of real properties
2234 East Pass Road, Gulfport, MS, 39507 and 740 Oakleigh Ave,
Gulfport, MS, 39507.
The Trustee retains NAI Sawyer Commercial as its real estate broker
for the marketing and sale of the Properties, and will pay NAI a
real estate commission of 6percent of the gross amount of the sale
price of the Properties.
NAI's marketing efforts have generated an offer of $425,000.00 from
Hau Nguyen and or assigns. The Purchaser is a cash buyer with a
place of business at 4074 E. Wading Duck Ct., Tucson, AZ 39501.
The Purchaser has agreed to purchase the Properties on the
following terms:
Purchase Price: $425,000.00, subject to pro ration of taxes;
-- Deposit: $20,000.00;
-- Due Diligence Period: None; Purchaser accepts the property in
its current condition;
-- Closing Date: March 6, 2025;
-- Commission: A real estate commission equal to 6.00% of the
purchase price shall be due and payable to NAI by the Seller upon
Closing; and
-- Method of Conveyance: Trustee Deed.
NAI has opined that a sale to the Purchaser as contemplated by the
Purchase Agreement constitutes the highest and best value that can
be obtained for the Properties at this time.
The Purchaser is willing to purchase the Properties "as is, where
is" in its current condition. Therefore, the Escambia Trustee will
collect the proposed Purchase Price of $425,000.00 (less a 6.00%
commission to NAI, pro ration of taxes, and other closing costs).
The Trustee asserts that to preserve the value of the Properties
and limit the costs of administering and preserving such assets, it
is critical to close the Sale of the Properties as soon as possible
because the outside closing date is March 6, 2025.
About Escambia Operating Company LLC
Escambia Operating Company, LLC and its affiliates, Escambia Asset
Company, LLC and Blue Diamond Energy, Inc., filed Chapter 11
petitions (Bankr. S.D. Miss. Lead Case No.23-50491) on April 2,
2023, with $10 million to $50 million in both assets and
liabilities.
Judge Jamie A. Wilson oversees the cases.
The Debtors tapped Patrick A. Sheehan, Esq., and Steve Wright
Mullins, Esq., as bankruptcy attorneys.
Drew McManigle, the Chapter 11 trustee appointed in the Debtors'
cases, tapped Jones Walker, LLP as bankruptcy counsel; MACCO
Restructuring Group, LLC as financial advisor; M P Boots Petroleum
Engineering Services, LLC as valuation advisor; and Matthews,
Cutrer and Lindsay, PA as accountant.
ESSEX TECHNOLOGY: Gets Interim OK to Use Cash Collateral
--------------------------------------------------------
Essex Technology Group, LLC received interim approval from the U.S.
Bankruptcy Court for the Middle District of Tennessee, Nashville
Division, to use cash collateral.
The company needs to use cash collateral to finance its operations,
pay its employees, and protect asset value.
Pre-bankruptcy secured lenders will be provided with protection in
the form of payments and replacement liens on their pre-bankruptcy
collateral. As additional protection, the lenders will be granted
an allowed administrative claim against the company's estate to the
extent of any diminution in Value of their interests in the
pre-bankruptcy collateral.
As of the petition date, Essex and its affiliates owed
approximately $16.9 million to the pre-bankruptcy lenders and
Crystal Financial LLC, acting as the administrative agent under a
credit agreement signed on Aug. 18, 2023.
Essex must pay in full its secured debt by Feb. 28 and must obtain
final approval to use the secured lenders' cash collateral within
21 days after Feb. 3. Failure to comply with these milestones
constitutes an event of default under the interim order.
A final hearing is scheduled for Feb. 25.
Crystal Financial can be reached through its counsel:
Paul G. Jennings, Esq.
Bass, Berry & Sims PLC
21 Platform Way South, Suite 3500
Nashville, TN 37203
Tel: (615) 742-6200
Fax: (615)-742-6293
Email: pjennings@bassberry.com
About Essex Technology Group
Essex Technology Group, LLC is a retail chain operating 91 stores
across 10 states. The company is based in Antioch, Tenn., and
operates under the name Bargain Hunt.
Essex Technology Group filed Chapter 11 petition (Bankr. M.D. Tenn.
Case No. 25-00452) on February 3, 2025, listing between $10 million
and $50 million in assets and between $50 million and $100 million
in liabilities. Rob Hubbard, chief restructuring officer of Essex,
signed the petition.
Judge Nancy B. King oversees the case.
David W. Houston, IV, Esq., at Burr & Forman LLP, represents the
Debtor as legal counsel.
EXPRESS MOBILE: Seeks to Hire Thompson Law Group as Legal Counsel
-----------------------------------------------------------------
Express Mobile Diagnostic Services, LLC seeks approval from the
U.S. Bankruptcy Court for the Western District of Pennsylvania to
employ Thompson Law Group PC as legal counsel.
The firm will provide these services:
(a) give legal advice with respect to the Debtor's powers and
duties;
(b) take all necessary action to protect and preserve the
Debtor's estate;
(c) prepare all necessary legal papers in connection with the
administration of the Debtor's estate;
(d) perform any and all other legal services for the Debtor in
connection with its Chapter 11 case; and
(e) perform such legal services as the Debtor may request with
respect to any matter appropriate in assisting its effort to
reorganize.
The firm will be paid at these hourly rates:
Attorney $350
Paralegals $90
In addition, the firm will seek reimbursement for expenses
incurred.
Prior to the petition date, the firm received a retainer of $10,000
from the Debtor.
Brian Thompson, Esq., an attorney at Thompson Law Group, disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Brian C. Thompson, Esq.
Thompson Law Group, PC
301 Smith Drive, Suite 6
Cranberry Township, PA 16066
Telephone: (724) 799-8404
Facsimile: (724) 799-8409
Email: bthompson@thompsonattorney.com
About Express Mobile Diagnostic Services
Express Mobile Diagnostic Services LLC is a medical and diagnostic
laboratory that offers x-ray scanning services for all major areas
of the body.
Express Mobile Diagnostic Services LLC sought relief under Chapter
11 of the U.S. Bankruptcy Code (Bankr. W.D. Pa. Case No. 25-20255)
on January 31, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $1 million and $10 million each.
Brian C. Thompson, Esq., at Thompson Law Group PC serves as the
Debtor's counsel.
FIRST EMANUEL: Taps Heller Draper & Horn as Bankruptcy Counsel
--------------------------------------------------------------
First Emanuel Baptist Church seeks approval from the U.S.
Bankruptcy Court for the Eastern District of Louisiana to employ
Heller, Draper & Horn, LLC as bankruptcy counsel.
The firm will render these services:
(a) advise the Debtor with respect to its rights, powers and
duties;
(b) prepare and pursue confirmation of a plan of
reorganization as a Debtor that is proceeding under Subchapter V
and pursue approval of the disclosure statement and plan
confirmation should it continue as a traditional Chapter 11;
(c) prepare, on behalf of the Debtor, all necessary legal
documents, and review all financial and other reports to be filed;
(d) advise the Debtor concerning, and prepare responses to,
legal documents which may be filed by other parties herein;
(e) appear in court to protect the interests of the Debtor;
(f) represent the Debtor in connection with use of cash
collateral and/or obtain post-petition financing;
(g) advise the Debtor concerning and assist in the negotiation
and documentation of financing agreements, cash collateral orders
and related transactions;
(h) investigate the nature and validity of liens asserted
against the property of the Debtor, and advise concerning the
enforceability of said liens;
(i) investigate and advise the Debtor concerning and take such
action as may be necessary to collect income and assets in
accordance with applicable law, and the recovery of property for
the benefit of its estate;
(j) advise and assist the Debtor in connection with any
potential property dispositions;
(k) advise the Debtor concerning executory contract and
unexpired lease assumptions, assignments and rejections and lease
restructuring, and recharacterizations;
(l) assist the Debtor in reviewing, estimating and resolving
claims asserted against its estate;
(m) commence and conduct litigation necessary and appropriate
to assert rights held by the Debtor, protect assets of its Chapter
11 estate or otherwise further the goal of completing its
successful reorganization; and
(n) perform all other legal services for the Debtor which may
be necessary and proper in this case.
The firm will be paid at these hourly rates:
Attorney $450 - $500
Paralegal $250
In addition, the firm will seek reimbursement to expenses
incurred.
Douglas Draper, Esq., an attorney at Heller, Draper & Horn,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Douglas Draper, Esq.
Heller, Draper & Horn, LLC
650 Poydras St.
New Orleans, LA 70130
Telephone: (504) 299-3300
About First Emanuel Baptist Church
First Emanuel Baptist Church filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. La.
Case No. 24-12026) on Oct. 16, 2024, listing $1,000,001 to $10
million in both assets and liabilities.
Judge Meredith S. Grabill presides over the case.
Douglas Draper, Esq., at Heller, Draper & Horn, LLC represents the
Debtor as counsel.
FIRSTOX LABORATORIES: Taps Crocker & Crocker as Bankruptcy Counsel
------------------------------------------------------------------
Firstox Laboratories, LLC seeks approval from the U.S. Bankruptcy
Court for the Northern District of Texas to employ Crocker &
Crocker as its legal counsel.
Crocker & Crocker will provide these services:
(a) give bankruptcy-related legal advice to the Debtor;
(b) assist the Debtor in preparing legal papers;
(c) assist the Debtor in negotiating and formulating sale
and/or plan documents;
(d) assist the Debtor in preserving and protecting the value
of its estate; and
(e) perform all other legal services for the Debtor that may
be necessary or appropriate in administering this Chapter 11 case.
Patrick Crocker, Esq., the primary attorney in this representation,
will be paid at an hourly rate of $350 plus expenses.
Mr. Crocker disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Patrick D. Crocker, Esq.
Crocker & Crocker
107 W. Michigan Avenue, 4th Fl.
Kalamazoo, MI 49007
Telephone: (269) 382-8893
Email: patrick@crockerelawfirm.com
About Firstox Laboratories
Firstox Laboratories, LLC filed its Chapter 11 petition (Bankr.
N.D. Tex. Case No. 23-42095) on July 20, 2023. At the time of the
filing, the Debtor reported $50,000 to $100,000 in assets and $1
million to $10 million in liabilities.
The Debtor tapped Patrick D. Crocker, Esq., at Crocker & Crocker as
counsel.
FWR LLC: Christine Brimm Named Subchapter V Trustee
---------------------------------------------------
Gerard Vetter, Acting U.S. Trustee for Region 4, appointed
Christine Brimm, Esq., as Subchapter V trustee for FWR, LLC.
Ms. Brimm, a practicing attorney in Myrtle Beach, S.C., will be
paid an hourly fee of $350 for her services as Subchapter V trustee
and an hourly fee of $150 for paralegal services. In addition, the
Subchapter V trustee will receive reimbursement for work-related
expenses incurred.
Ms. Brimm declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Christine E. Brimm
P.O. Box 14805
Myrtle Beach, SC 29587
Telephone: 803-256-6582
Email: cbrimm@bartonbrimm.com
About FWR LLC
FWR, LLC sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. S.C. Case No. 25-00384) on February 1, 2025, with
$100,001 to $500,000 in both assets and liabilities.
Judge Helen E. Burris presides over the case.
Robert H. Cooper, Esq., at The Cooper Law Firm represents the
Debtor as bankruptcy counsel.
GEN DIGITAL: S&P Affirms 'BB' ICR Following Launch of MoneyLion
---------------------------------------------------------------
S&P Global Ratings assigned its 'BB' issue-level rating and '3'
recovery rating to Gen Digital Inc.'s proposed senior secured term
loan B and its 'BB-' issue-level rating and '5' recovery rating to
the proposed senior unsecured notes. At the same time, S&P affirmed
its 'BB' issuer credit rating on the company.
The stable outlook reflects S&P's expectation that Gen Digital's
cost discipline, organic growth, and ongoing debt repayment will
enable it to maintain leverage of below 4.0x despite the increase
in its debt balance.
Gen Digital is issuing a new $600 million senior secured term loan
B and $1,100 million of senior unsecured notes to partially finance
its previously announced acquisition of MoneyLion and refinance its
upcoming maturities.
S&P said, "MoneyLion will provide Gen Digital with cross-selling
opportunities and bolsters its revenue growth, though we anticipate
the business will only contribute modest incremental cash flow over
the near term. The company's acquisition of MoneyLion will provide
it with about $500 million of revenue and $90 million of EBITDA,
which will increase its pro forma revenue base by about 13%.
Additionally, MoneyLion's current revenue growth trajectory of over
20% should bolster Gen Digital's much slower organic growth rate of
about 2-3%, even if MoneyLIon's expansion gradually slows. While
the additional scale and more-rapid growth will benefit the
company, we view the greatest potential impact of this deal as
stemming from the cross-selling opportunities from the MoneyLion's
base of 18.7 million customers through its marketplace platforms.
We expect these opportunities may help accelerate Gen Digital's
expansion of its core cybersecurity offerings. Furthermore, we
anticipate the acquisition will increase the company's exposure to
a faster-growing end market that is less tied to PC shipments.
"MoneyLion's weaker profitability will somewhat dilute Gen
Digital's impressive (greater than 55%) EBITDA margins, though we
see a path for it to return to its current level of profitability
if it succeeds at cross-selling its higher-margin antivirus
software or expands MoneyLion's margins as it gains scale. We
expect the incremental interest expense and one-time costs
associated with the acquisition will consume most of the
incremental cash flow contribution from MoneyLion over the first
year following the close of the transaction, though we believe Gen
Digital has ample liquidity and we forecast it will improve its
cash flow in fiscal year 2027.
"This transaction will slow Gen Digital's consistent deleveraging
trajectory, though we expect its leverage will remain below 4.0x
and anticipate it will continue to work toward achieving
management's 3.0x target. The company has rapidly reduced its
leverage from a post-Avast peak of over 5.0x to about 3.9x as of
the December quarter, through a combination of accelerated debt
repayment and reduced shareholder returns. While the $600 million
of debt Gen Digital is issuing to partially fund the acquisition
will modestly slow its deleveraging--we expect its leverage will
rise to 4.0x as of the close of the deal--management has reiterated
its plan to achieve net leverage of under 3.0x. While we expect Gen
Digital will continue to consider additional acquisitions and
resume share repurchases at some point in fiscal year 2026, we
think the firm will continue to deleverage and reduce its debt to
EBITDA to target level in fiscal year 2027. Nevertheless, we
continue to view Gen Digital's leverage of between 3.0 and 4.ox as
supportive of the current 'BB' rating and do not believe that a
longer-than-expected period of maintaining leverage above 3.0x
would likely lead to a negative rating action."
Gen Digital benefits from its leading market share, highly
recurring revenue, and very strong profitability even though the
organic growth prospects for consumer antivirus software remain
weak and tied to the challenged PC market. S&P said, "The company
has the leading market position in consumer cybersecurity and
identity protection and we estimate its current share stands at
over 40%, which compares with about 25% for McAfee (the
second-largest provider by revenue). The acquisition of Avast
substantially improved Gen Digital's geographic diversity by
providing it with a greater exposure to Europe relative to the
legacy Norton business. We also note that the company's 77.5%
retention rates are quite strong for consumer software. We think
Gen Digital's ability to continue increasing its core direct
customer rolls even as PC sales have slowed speaks to the
effectiveness of its go-to-market ability. Notwithstanding these
strengths, we see some key risks to the business, including
continued challenges monetizing antivirus for non-PC devices like
smartphones and tablets, ongoing fierce competition from McAfee,
and the availability of increasingly effective lower-cost or free
offerings."
S&P said, "The stable outlook on Gen Digital reflects our
expectation that cost savings, organic growth, and debt repayment
will enable the firm to maintain leverage of below 4.0x despite its
increased debt balance. We expect the company will resume
deleveraging following the acquisition and forecast its leverage
will approach management's 3.0x target in fiscal year 2026."
S&P could lower its rating on Gen Digital if S&P believes it will
sustain leverage of more than 4x. This could occur if:
-- The company undertakes frequent or large debt-funded
acquisitions; or
-- Weakening PC sales trends reduce the demand for consumer
cybersecurity.
Although less likely in S&P's view, it could downgrade the company
if it materially changes its financial policies to undertake
leveraged share repurchases.
S&P said, "We would consider upgrading Gen Digital if we believe it
will maintain leverage of less than 3x, which it aims to achieve by
fiscal year 2027. We would also need to expect that the company
would continue to increase its annual revenue by at least the
mid-single-digit percent area over the long term before raising our
rating. Gen Digital's consumer security revenue declined for many
years, following the trend in PC sales, which reversed during the
pandemic. Therefore, we want to see how the company's sales perform
amid a more-normalized PC sales environment before revising our
view of its business."
GETTY IMAGES: Moody's Affirms B1 CFR & Rates New Sec. Term Loan Ba3
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Moody's Ratings affirmed Getty Images, Inc.'s ratings, including
its B1 Corporate Family Rating, B1-PD Probability of Default
Rating, Ba3 rating on the existing $150 million senior secured
first lien revolving credit facility due 2028, Ba3 ratings on
Getty's existing Euro- and USD-denominated senior secured first
lien term loans B due 2026 and the B3 rating on the senior
unsecured notes due 2027. The Speculative Grade Liquidity Rating
(SGL) remains unchanged at SGL-1, reflecting very good liquidity.
Moody's also assigned Ba3 ratings to Getty's proposed 5-year USD-
and Euro-denominated senior secured first lien term loans B. The
outlook remains stable.
The rating actions follow Getty's launch of a refinancing
transaction [1] yesterday and considers the company's previously
announced [2] merger plans with Shutterstock, Inc. (Shutterstock).
Getty plans to use the net proceeds from the new term loan issuance
to refinance its existing senior secured term loans due 2026.
Moody's expect to withdraw the existing term loans' ratings when
the transaction is completed and the outstanding debts are repaid
in full.
Both the proposed merger and refinancing benefit the company's
credit profile. Refinancing extends 2026 maturities to 2030 on a
leverage neutral basis. The merger is credit positive because it
would diversify the combined entity's revenue, strengthen its
market position, improve the balance sheet and create cost savings
and synergy opportunities. Getty hopes that the merger, which
remains subject to stockholders and regulatory approvals, will
close in the second half of 2025.
The affirmation of Getty's B1 CFR recognizes strategic benefits of
the proposed merger tempered by execution risks as the combined
entity turns around Shutterstock's declining organic revenue
trends. Shutterstock had struggled to grow over the past two years,
delivering estimated declines on an organic basis of roughly -5%
YTD 2024 (due in part to data licensing year on year declines given
the heavier upfront revenue recognition for these types of deals)
and -2% in 2023. It will likely take 12-24 months from the closing
for the cost-saving opportunities and synergies to be fully
realized, which could be as far out as the end of 2027.
Pursuant to the merger agreement, in addition to refinancing of its
existing term loans due 2026, Getty is required to amend or
otherwise refinance its existing $300 million senior unsecured
notes to extend the maturity past February 2028. Should the
refinancing result in elimination of all or material portion of
unsecured debt from Getty's capital structure, the company's senior
secured first lien debt, including the proposed senior secured term
loans, will likely be downgraded by one notch to a level consistent
with the CFR. This is because the unsecured notes are effectively
subordinate and provide support to the current first-lien credit
facilities under Moody's priority of claim waterfall.
RATINGS RATIONALE
Getty's B1 CFR reflects the company's moderately high leverage,
positive but limited free cash flow with Moody's adjusted FCF/Debt
in low- to mid-single percent range and intense industry
competition as market demand for lower-priced imagery continues to
grow. Getty's LTM 3Q 2024 Debt/EBITDA was 5.3x (Moody's adjusted,
including the fair value adjustments for swaps and foreign exchange
contracts) and Moody's expect it to be just under 5x by the end of
2025 on a standalone basis. While the company has the majority of
its revenue from enterprise customers, it does have some exposure
to small businesses which are typically more cyclical and likely to
experience greater pullback in spend compared to larger firms
during periods of weak economic growth. Its Editorial business can
be impacted by cancellations and postponements of major live
entertainment and sporting events. The rise of AI upended the
content-creation market and led to increased competition and
challenges — real and perceived — for visual content companies
like Getty and its peers, including Shutterstock.
Getty will continue to benefit from its global position as the
leading source of visual content with over one million customers
annually across more than 200 countries and sizable collection of
pictorial content, believed to be one of the largest and broadest
in the world under the Unsplash.com and iStock.com logos
(budget-conscious) as well as Getty's (premium) brands. Getty's
good geographic diversification, variable cost operating model with
imagery and video content from diversified sources, and long-term
relationships across a broad customer base comprising news,
entertainment and sports publishing organizations further support
its credit profile. The company's subscription revenue is now a
larger proportion of revenue (52% as of Q3 2024), which reduces
revenue volatility.
The proposed combination will improve the combined entity's balance
sheet as Shutterstock carries less debt (~$313 million debt at
9/30/2024) relative to Getty that has $1.3 billion debt and $300
million EBITDA at close. Cost savings from the combination are
substantial, estimated to reach $150 million — $200 million by
year three, roughly equivalent to Shutterstock's EBITDA for the 12
months ended September 2024. Approximately two thirds of estimated
cost synergies, are expected to be achieved within 12 to 24 months
of close. Cash costs of $75 million — $100 million, the majority
of which are expected to be incurred in the first year, before most
savings are generated, will slow leverage and free cash flow
improvements post-merger.
Moody's expect that Getty will continue to maintain very good
liquidity (SGL-1) over the next 12-18 months, supported by annual
free cash flow of around $80 million, unrestricted cash balances of
at least $100 million (unrestricted cash totaled approximately $110
million at Q3 2024) and access to the $150 million revolver
(currently undrawn). The revolver contains a quarterly leverage
maintenance covenant that enables access to the facility as long as
Consolidated Total Debt to Consolidated EBITDA (as defined in the
bank credit agreement) does not exceed 5.25x through March 31,
2025, stepping down to 5x from June 30, 2025 to maturity. Moody's
expect that Getty will have solid cushion under the requirement
over the next year. The term loans are not subject to maintenance
covenants.
Marketing terms for the new credit facilities (final terms may
differ materially) include the following: Incremental pari passu
debt capacity: (i) prior to the merger, up to $150 million; (ii)
after the merger, up to the greater of $150 million and 50% of
consolidated EBIDA, plus unlimited amounts subject to (i) prior to
the merger, 3.5x first lien net leverage ratio; (ii) after the
merger, 3.0x first lien net leverage ratio. It is expected that no
portion of the incremental may be incurred with an earlier maturity
than the initial term loans. The credit agreement is expected to
include "Chewy", "J. Crew" and "Serta" protective language.
The instrument ratings reflect the probability of default of the
company, as reflected in the B1-PD Probability of Default Rating,
an average expected family recovery rate of 50% at default given
the mix of secured and unsecured debt in the capital structure and
the particular instruments' ranking in the capital stack. The
existing senior secured revolver due 2028 and the proposed and
existing senior secured term loans are each rated Ba3, one notch
above the B1 CFR given the buffer provided by the $300 million
senior unsecured notes due March 2027. The senior unsecured notes
is rated B3, two notches below the CFR, because Moody's expect
these obligations to absorb most of the potential loss in a
distress scenario.
The stable outlook reflects Moody's view that Getty will focus on
reducing leverage, maintain very good liquidity and demonstrate
organic revenue growth in the low-single digit percentage range
over the next 12-18 months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
A ratings upgrade could occur if Getty demonstrates at least
mid-single-digit percentage organic revenue growth, maintains very
good liquidity, sustains free cash flow to debt in the mid-to-high
single-digit percentage range and total debt to EBITDA below 4x
(both metrics are Moody's adjusted).
The ratings could be downgraded if operating performance weakens or
if total debt to EBITDA is sustained above 5x (Moody's adjusted),
or liquidity deteriorates such that free cash flow to debt is
sustained below 5% (Moody's adjusted).
Headquartered in Seattle, WA, Getty Images, Inc. is a wholly-owned
subsidiary of Getty Images Holdings, Inc., a leading creator and
distributor of still imagery, vector, video and multimedia
products, as well as a recognized provider of other forms of
premium digital content, including music. The company provides
stock images, music, video and other digital content through
gettyimages.com, iStock.com and Unsplash.com. Getty expects
reporting 2024 revenue in the $936 to $942 million range.
The principal methodology used in these ratings was Media published
in June 2021.
GRITSTONE BIO: Seeks to Extend Plan Exclusivity to May 8
--------------------------------------------------------
Gritstone Bio, Inc., 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 May 8 and
July 7, 2025, respectively.
Pursuant to this Motion, the Debtor is seeking a further extension
of the Exclusive Periods. For the following reasons, cause exists
for such an extension:
* The Debtor Has Made Good-Faith Progress in conducting its
Chapter 11 Case. The Debtor has obtained first day relief to ensure
a smooth transition into chapter 11. The Debtor obtained final
approval of debtor in possession financing. The Debtor filed its
schedules of assets and liabilities and statements of financial
affairs, among other tasks and set a bar date for general unsecured
claims. The Debtor has also conducted a sale process that resulted
in the successful bids for the sale of certain of the Debtor's
assets.
* The Debtor has filed a Plan of Reorganization. The Debtor
filed a chapter 11 plan of reorganization which is the result of
successful negotiations with its key constituents. The Court has
scheduled a hearing to consider adequacy of the Disclosure
Statement on February 12, 2025 and the Debtor plans to request a
confirmation hearing date in March of 2025.
* Extending the Exclusivity Periods Will Not Prejudice
Creditors. Among other activities, the Debtor is requesting an
extension of the Exclusive Periods to preserve its exclusive right
to file a plan (if needed) and to seek confirmation of a plan.
Continued exclusivity will permit the Debtor to maintain
flexibility and focus its efforts on seeking confirmation of the
Plan and not be distracted by the possibility of a competing plan
by another third party. All stakeholders will benefit from such
continued stability and predictability.
* The Debtor Has Demonstrated Reasonable Prospects for Filing
a Viable Plan. The Debtor has negotiated with and reached an
agreement in principle with its DIP Lender, its prepetition lender,
and the Official Committee of Unsecured Creditors, and has filed
the Plan and Disclosure Statement which reflect that agreement. The
Debtor continues to work in good faith with other parties in an
effort to confirm the Plan. The Debtor will request that the Court
conduct a confirmation hearing date in March of 2025.
* The Debtor is Not Pressuring Creditors by Requesting an
Extension of the Exclusive Periods. The Debtor has no ulterior
motive in seeking an extension of the Exclusive Periods. The
requested relief is not being sought to pressure the Debtor's
creditors, and the Debtor submits that no pressure would result
from the requested extension of the Exclusive Periods.
* The Chapter 11 Case is Approximately Four Months Old. The
Debtor's request for an extension of the Exclusive Periods is the
Debtor's first such request and comes approximately four months
after the Petition Date. As discussed, during this short time, the
Debtor has accomplished a great deal: it concluded an auction for
the sale of certain of the Debtor's assets, obtained entry of the
Bar Date Orders and provided notice of the bar dates to creditors,
is continuing to explore the disposition of its other remaining
assets, and is moving forward to confirmation of the Plan.
Moreover, termination of the Exclusive Periods would adversely
impact the substantial progress made by the Debtor in the chapter
11 case to date.
Counsel to the Debtor:
PACHULSKI STANG ZIEHL & JONES LLP
Debra I. Grassgreen, Esq.
John W. Lucas, Esq.
Malhar S. Pagay, Esq.
James E. O’Neill, Esq.
919 North Market Street, 17th Floor
P.O. Box 8750
Wilmington, Delaware 19899-8705
Tel: 302-652-4100
Fax: 302-652-4400
Email: dgrassgreen@pszjlaw.com
jlucas@pszjlaw.com
mpagay@pszjlaw.com
joneill@pszjlaw.com
About Gritstone bio Inc.
Gritstone bio is developing next-generation vaccines for cancer and
infectious disease. Gritstone's approach seeks to generate potent
and durable immune responses by leveraging insights into the immune
system's ability to recognize and destroy diseased ells by
targeting select antigens.
Gritstone bio Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 24-12305) on October 10,
2024. In the petition filed by Celia Economides, chief financial
officer, the Debtor reports total assets as of August 31, 2024
amounting to $124,885,479 and total debts as of August 31, 2024
amounting to $40,000,000.
The Honorable Bankruptcy Judge Karen B. Owens handles the case.
The Debtor tapped Pachulski Stang Ziehl & Jones LLP as bankruptcy
counsel; Pricewaterhousecoopers LLP as financial advisor; and
Raymond James & Associates, Inc., as investment banker. Fenwick &
West LLP is the corporate counsel.
The U.S. Trustee appointed an official committee of unsecured
creditors appointed in this Chapter 11 case. The committee tapped
ArentFox Schiff LLP as counsel, Potter Anderson & Corroon LLP as
Delaware counsel, and FTI Consulting, Inc. as financial advisor.
HELIUS MEDICAL: To Seek OK of Inducement Warrants Offer at Meeting
------------------------------------------------------------------
Helius Medical Technologies, Inc. filed a Form 8-K with the
Securities and Exchange Commission to disclose that its 2025 Annual
Meeting of Stockholders will be held on Monday, April 21, 2025.
During the meeting, stockholder approval will be sought for the
exercise of certain inducement warrants related to Series A and B
warrants. The Company has set March 12, 2025, as the record date.
The Company had previously entered into warrant exercise inducement
offer letters with certain holders of its existing Series A
warrants and Series B warrants to purchase shares of the Company's
Class A common stock, pursuant to which the Holders agreed to
exercise for cash their Existing Warrants to purchase an aggregate
of 4,971,110 shares of the Company's common stock, in the
aggregate, at a reduced exercise price of $0.751 per share, in
exchange for the Company's agreement to issue new Series C Warrants
and Series D Warrants on substantially the same terms as the
Existing Warrants, to purchase up to 6,213,888 shares of the
Company's common stock.
The exercise of the Inducement Warrants and issuance of the
Inducement Warrant Shares is subject to stockholder approval in
accordance with Nasdaq Listing Rule 5635(d) of The Nasdaq Stock
Market LLC. The Company agreed to hold an annual or special
meeting of stockholders on or before the 90th calendar day
following the date of the Inducement Letters, for the purpose of
obtaining Stockholder Approval, with the recommendation of the
Company's board of directors that the proposal be approved.
Because the date of the Annual Meeting has been changed by more
than 30 days from the anniversary date of the 2024 Annual Meeting
of Stockholders, the Company has provided the due date for
submission of any qualified stockholder proposal.
Pursuant to applicable SEC rules and the Company's bylaws, the
deadline for the submission of proposals to be included in the
Company's proxy materials is the close of business on Feb. 17,
2025, and the deadline for the submission of director nominations
to be brought before the Annual Meeting by a stockholder is the
close of business on Feb. 17, 2025. Written notice for any such
proposals, nominations or other business must be received by the
Company at its principal executive office (Helius Medical
Technologies Corporation, Attention: Secretary, 642 Newtown Yardley
Road, Suite 100, Newtown, PA 18940) by the applicable deadline and
must comply with the procedures and requirements of applicable SEC
rules and the Company's bylaws.
About Helius Medical
Headquartered in Newtown, Pennsylvania, Helius Medical
Technologies, Inc. is a neurotechnology company focused on
neurological wellness. The Company's purpose is to develop,
license or acquire non-implantable technologies targeted at
reducing symptoms of neurological disease or trauma. The Company's
product, known as the Portable Neuromodulation Stimulator, or PoNS,
is an innovative non-implantable medical device, inclusive of a
controller and mouthpiece, which delivers mild electrical
stimulation to the surface of the tongue to provide treatment of
gait deficit and chronic balance deficit. PoNS Therapy is integral
to the overall PoNS solution and is the physical therapy applied by
patients during use of the PoNS device. PoNS has marketing
clearance in the U.S. for use as a short-term treatment of gait
deficit due to mild-to-moderate symptoms for multiple sclerosis and
is to be used as an adjunct to a supervised therapeutic exercise
program in patients 22 years of age and over by prescription only.
Minneapolis, Minnesota-based Baker Tilly US, LLP, the Company's
auditor since 2022, issued a "going concern" qualification in its
report dated March 28, 2024. The report highlighted that the
Company has recurring losses from operations, an accumulated
deficit, expects to incur losses for the foreseeable future and
requires additional working capital. These are the factors that
raise substantial doubt about the Company's ability to continue as
a going concern.
Helius incurred a net loss of $8.85 million in 2023, following a
net loss of $14.07 million in 2022. As of Sept. 30, 2024, the
Company had cash and cash equivalents of $3.5 million. The
Company's net loss was $7.8 million for each of the nine months
ended Sept. 30, 2024 and 2023. As of Sept. 30, 2024, the Company
had an accumulated deficit of $167.8 million. The Company expects
to continue to incur significant expenses and operating losses for
the foreseeable future.
"There is no assurance that the Company will achieve profitable
operations, and, if achieved, whether it will be sustained on a
continued basis. These factors indicate substantial doubt about
the Company's ability to continue as a going concern within one
year after the date the consolidated financial statements are
filed. The Company intends to fund ongoing activities by utilizing
its current cash and cash equivalents on hand, cash received from
the sale of its PoNS device in the U.S. and Canada and by raising
additional capital through equity or debt financings. There can be
no assurance that the Company will be successful in raising
additional capital or that such capital, if available, will be on
terms that are acceptable to the Company. If the Company is unable
to raise sufficient additional capital, the Company may be
compelled to reduce the scope of its operations," Helius stated in
its Quarterly Report for the period ended Sept. 30, 2024.
HIGHLINE AFTERMARKET: Moody's Rates New First Lien Loans 'B2'
-------------------------------------------------------------
Moody's Ratings assigned B2 ratings to Highline Aftermarket
Acquisition, LLC's new first lien revolving credit facility and
first lien term loan. The new $175 million revolver due 2028 will
refinance the existing $175 million revolver due 2027 and the new
$1,004 million term loan due 2030 will refinance the existing $801
million first lien term loan B due 2027 and the $205 million second
lien term loan due 2028. Highline's B2 Corporate Family Rating and
B2- PD Probability of Default Rating remain unchanged. The ratings
on the existing first lien revolving credit facility and term loan
will be withdrawn upon the closing of the refinancing transactions.
The outlook is stable.
RATINGS RATIONALE
Highline's corporate family rating remains unchanged because the
refinancings are leverage neutral and will improve its maturity
profile. The B2 ratings on the new first lien credit facilities
remains in line with the CFR, as it will be the only debt in
Highline's debt capital structure.
Highline generated solid business and financial performance in
2024, which was consistent with Moody's expectation. Benefiting
from increased volume, favorable product mix shift, and efficiency
gains, Highline improved profitability with its Moody's adjusted
EBITDA increasing to $193 million in the LTM September 2024, up 18%
from the same period a year ago. With stable debt, Highline's
leverage, as measured by Moody's adjusted debt/EBITDA, fell to 6.0x
during the period, down from 6.9x in 2023. Moody's expect the
earnings growth momentum will continue and its leverage will
improve toward mid-5.0x in 2025 driven by new business wins and
cost saving measures.
Highline's credit profile is supported by the recurring demand for
lubricants and other automotive aftermarket performance chemicals
and consumable accessories. The company has a well-established
market position in the private label lubricant manufacturing and
automotive aftermarket distribution. Primary drivers for the
business include miles driven, vehicles in operation and the
increasing average age of the vehicles in service. Its value-added
services such as packaging, filling, and distribution of private
label and branded products support its Moody's-adjusted EBITDA
margins in the low teens. The company's sound profit margin, low
fixed cost base and discretionary amount of capital expenditure
should support free cash flow generation.
Highline's credit profile is constrained by its moderate financial
profile and a track record of business acquisitions under the
ownership of its private equity firm. In addition, the mature
nature of the lubricant industry and the low profit margin of
private label lubricants leaves the company susceptible to
competition from other lubricant producers and variation in
manufacturing and distribution costs.
The stable outlook reflects Moody's expectation that company's
credit metrics will modestly improve and remain consistent with its
credit profile in the next 12-18 months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The rating could be upgraded if Highline's adjusted debt leverage
falls below 5.0x on a sustained basis, margin expands and annual
free cash flow exceeds $50 million.
The rating could be downgraded if its profitability deteriorates
with EBITDA margin falling below the low teens, adjusted debt
leverage stays above 6.5x on sustained basis, there is a lack of
free cash flow or a deterioration in liquidity.
Highline Aftermarket Acquisition, LLC is an automotive aftermarket
distributor and manufacturer of branded and private label packaged
lubricants, performance chemicals and other consumable accessories.
The company was formed in April 2016 through the combination of DYK
Automotive and AAHC, Inc. In November 2020, Pritzker Private
Capital acquired and strategically combined Highline from Sterling
Group and Warren Distribution LLC, a manufacturer of private label
automotive lubricants. End markets channels include automotive
retail, mass retail, automotive/jobber, specialty retail, and heavy
duty, among others. Highline recorded about $1.7 billion in
revenues in the LTM period ending in September 30, 2024.
The principal methodology used in these ratings was Chemicals
published in October 2023.
HOSPITAL FOR SPECIAL: Seeks to Extend Plan Exclusivity to May 6
---------------------------------------------------------------
Hospital for Special Surgery, LLC d/b/a OneCore Health asked the
U.S. Bankruptcy Court for the Western District of Oklahoma to
extend its exclusivity periods to file a plan of reorganization and
obtain acceptance thereof to May 6 and July 8, 2025, respectively.
The Debtor claims that the size and complexity of this Chapter 11
Case contributes to its need for an extension. Debtor and its
advisors have been actively engaged since the Petition Date with
ongoing diligence necessary for Debtor's reorganization. The Debtor
has coordinated with the Patient Care Ombudsman appointed by this
Court to ensure its operations continue at an exceptional level.
These (and other activities) increase the complexity of the
reorganization process while Debtor seeks to maintain its current
operations, provide exceptional care to its patients, maximize its
value for creditors, and work toward its proposal of a confirmable
plan.
The Debtor explains that it foresees needing additional time to
conclude its ongoing negotiations with stakeholders and to
negotiate and secure the necessary combination of cash and
financing to facilitate Debtor's ability to propose an approvable
plan and successfully exit this Chapter 11 Case. Thus, Debtor seeks
this extension in good faith, and not for the purpose of pressuring
its creditors, but to support its ability to present a plan that
will provide the greatest value.
The Debtor asserts that it has demonstrated reasonable prospects
for filing a viable plan, and in the meantime, Debtor has been
paying its bills as they become due. As demonstrated by Debtor's
Monthly Operating Reports, Debtor is timely paying its bills and
has also successfully maintained its ability to meet its future
obligations.
Moreover, the financial strength of Debtor during the course of
this Chapter 11 Case reveals its likely prospects of proposing a
viable plan because Debtor's positive cash flow is an attractive
sign to entities interested in investing in Debtor's future and
providing financial support to facilitate its reorganization. It
also assures that the requested extension will not jeopardize the
rights of any creditors or other parties doing business with
Debtor. Thus, these factors weigh in favor of granting the
extension.
The Debtor further asserts that in the short time that has passed
since the filing of this Chapter 11 Case, Debtor has made
significant progress in its negotiations with creditors. The
productivity of these efforts and discussions are bringing Debtor
closer to finalizing an approvable plan. With the additional time
requested to propose an approval plan, Debtor intends to finalize
its discussions and negotiations to arrive at a confirmable plan
that will provide maximal value to all its creditors.
Hospital for Special Surgery, LLC is represented by:
William H. Hoch, Esq.
Craig M. Regens, Esq.
Mark A. Craige, Esq.
Kaleigh Ewing, Esq.
Crowe & Dunlevy
324 N. Robinson Ave., Suite 100
Oklahoma City, OK 73102
Telephone: (405) 235-7700
Email: will.hoch@crowedunlevy.com
craig.regens@crowedunlevy.com
mark.craige@crowedunlevy.com
kaleigh.ewing@crowedunlevy.com
About Hospital for Special Surgery, LLC
Hospital for Special Surgery, LLC is a Medicare-certified surgical
specialty hospital in Oklahoma City that specializes in diagnostic,
surgical and rehabilitative services.
Hospital for Special Surgery sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. Okla. Case No. 24-12862) on
October 7, 2024, with total assets of $8,285,647 and total
liabilities of $21,797,844. Steve Hockert, chief executive officer,
signed the petition.
Judge Janice D. Loyd oversees the case.
The Debtor is represented by Mark A. Craige, Esq., at Crowe &
Dunlevy.
HYPERSCALE DATA: Issues $1.9M Convertible Note to Orchid Finance
----------------------------------------------------------------
Hyperscale Data, Inc., filed a Form 8-K with the Securities and
Exchange Commission to disclose that on Feb. 5, 2025, it entered
into an exchange agreement with Orchid Finance LLC, a Nevada
limited liability company, as an investor. Pursuant to the
Agreement, the Company issued a convertible promissory note to the
Investor with a principal face amount of $1,925,141.71, in exchange
for the cancellation of the outstanding term note originally issued
by the Company to the Investor on April 29, 2024. As of the
Closing Date, the outstanding principal and accrued but unpaid
interest on the Original Note totaled $1,925,141.71.
The Note accrues interest at the rate of 15% per annum, unless an
event of default (as defined in the Note) occurs, at which time the
Note would accrue interest at 18% per annum. The Note will mature
on May 5, 2025.
The Note is convertible into shares of the Company's class A common
stock, par value $0.001 per share, at any time after NYSE American
approval of the Supplemental Listing Application (the "SLAP") at a
fixed conversion price of $4.00 per share, which conversion price
represented a $0.05 premium to the closing price of the Common
Stock on the Closing Date. The Conversion Price is only subject to
adjustment in the event that the Company does a stock split or
similar transaction of the Common Stock.
The Note contains standard and customary events of default
including, but not limited to, failure to pay amounts due under the
Note when required, failure to deliver Conversion Shares when
required, default in covenants and bankruptcy events.
The Agreement contains customary representations, warranties and
agreements by the Company, obligations of the parties, termination
provisions and closing conditions. The representations, warranties
and covenants contained in the Agreement were made only for
purposes of such agreement and as of specific dates, were solely
for the benefit of the parties to such Agreement, and may be
subject to limitations agreed upon by the contracting parties.
About Hyperscale Data
Headquartered in Las Vegas, NV, Hyperscale Data, Inc., formerly
known as Ault Alliance, Inc., is transitioning from a diversified
holding company pursuing growth by acquiring undervalued businesses
and disruptive technologies with a global impact to becoming solely
an owner and operator of data centers to support high performance
computing services. Through its wholly and majority-owned
subsidiaries and strategic investments, Hyperscale Data owns and
operates a data center at which it mines digital assets and offers
colocation and hosting services for the emerging artificial
intelligence ecosystems and other industries. It also provides,
through its wholly owned subsidiary, Ault Capital Group, Inc.,
mission-critical products that support a diverse range of
industries, including an artificial intelligence software platform,
social gaming platform, equipment rental services,
defense/aerospace, industrial, automotive, medical/biopharma and
hotel operations. In addition, Hyperscale Data is actively engaged
in private credit and structured finance through a licensed lending
subsidiary.
New York, New York-based Marcum LLP, the Company's auditor since
2016, issued a "going concern" qualification in its report dated
April 16, 2024, citing that the Company has a working capital
deficiency, has incurred net losses, and needs to raise additional
funds to meet its obligations and sustain its operations. These
conditions raise substantial doubt about the Company's ability to
continue as a going concern.
The Company posted a net loss of $256.29 million in 2023 compared
to a net loss of $189.83 million in 2022.
As of Dec. 31, 2023, the Company had cash and cash equivalents of
$8.6 million (excluding cash of discontinued operations), negative
working capital of $66.3 million and a history of net operating
losses. The Company has financed its operations principally
through issuances of convertible debt, promissory notes and equity
securities.
IKON WEAPONS: Court OK's Gas Masks, Equipment Sale to Kenny Lewis
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of North
Carolina, Greensboro Division, has granted Ashley S. Rusher, duly
appointed Subchapter V Trustee of Ikon Weapons, LLC, to sell gas
masks and certain inoperable equipment to Kenny Lewis, free and
clear of all liens, claims, interests, and encumbrances.
The Court found that the Gas Masks and Equipment are not encumbered
by any known liens, claims or encumbrances and no party appeared at
the hearing and asserted any lien, claim or encumbrance in and to
the Gas Masks and Equipment.
The Court authorized the Trustee is authorized to sell the Gas
Masks and Equipment to Kenny Lewis and to execute all documents
necessary to accomplish the sale and transfer of the Gas Masks and
Equipment to Kenny Lewis.
About Ikon Weapons, LLC
Ikon Weapons, LLC operates as weapon manufacturer, purchaser, and
importer. The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D.N.C. Case No. 22-10507) on Sept. 2,
2022. In the petition signed by Suliban Deaza, member and manager,
the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge Benjamin A. Kahn oversees the case.
John C. Woodman, Esq., at Essex Richards, P.A. is the Debtor's
counsel.
IM3NY LLC: Hires Hilco Corporate Finance as Investment Banker
-------------------------------------------------------------
iM3NY, LLC and Imperium3 New York, Inc. seek approval from the U.S.
Bankruptcy Court for the District of Delaware to employ Hilco
Corporate Finance, LLC as investment banker.
Hilco Corporate Finance will render these services:
(a) familiarize itself to the extent that Hilco deems
appropriate with the commercial, financial, operational, and legal
circumstances of the Debtors;
(b) identify and recommend to the Debtors potential buyers and
plan sponsors in connection with a transaction;
(c) with the Debtors' assistance, create written materials to
be used in presenting the transaction opportunity to prospective
buyers;
(d) solicit and review proposals and make recommendations and
advise the Debtors in negotiating proposals concerning a
transaction;
(e) assist the Debtors in responding to the due diligence
review of interested parties with respect to a transaction;
(f) assist the Debtors in soliciting, evaluating, and
negotiating transaction proposals;
(g) assist the Debtors and their other professional advisors
in negotiating definitive documentation concerning a transaction
and otherwise assisting in the process of closing a transaction;
and
(h) as necessary, assist with the preparation of motions
related to a transaction; consult with other retained parties,
lenders, creditors' committee, and other parties-in-interest;
participate in hearings and provide testimony in connection with a
transaction; and perform such other tasks as appropriate and as may
reasonably be requested by the Debtors' management or counsel.
The firm will be paid at these following fees:
(a) the Debtors shall paid Hilco $75,000 for the services
provided in evaluation and preparing the Debtors for a transaction
during the first 30 days of the engagement;
(b) transaction fee of $650,000 plus 5 percent of the
transaction value in excess of $15,000,000 in net cash proceeds
received by the Debtors. For Bow Bridge only, any transaction fee
shall be capped at $650,000 plus 2.5 percent for any net cash
proceeds received by it in excess of $15,000,000, assuming Bow
Bridge is the party to submit the winning binding bid;
(c) 50 percent of the monthly fees paid to Hilco shall be
creditable against the transaction fee; and
(d) Hilco shall not be entitled to a fee for any financing
provided by HSBC.
In addition, the firm will seek reimbursement to expenses
incurred.
Richard Klein, a senior managing director of Hilco Corporate
Finance, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Richard Klein
Hilco Corporate Finance LLC
5 Revere Dr., Suite 206
Northbrook, IL 60062
About iM3NY LLC
IM3NY LLC -- https://im3ny.com/ -- is an independent lithium-ion
cell manufacturer that is commercializing cell chemistry developed
in the USA.
iM3NY LLC and Imperium3 New York, Inc. sought relief under Chapter
11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No.
25-10131) on January 27, 2025. In the petition, the Debtors
reported estimated assets between $50 million and $100 million and
estimated liabilities between $100 million and $500 million.
The Honorable Bankruptcy Brendan Linehan Shannon handles the
cases.
The Debtors tapped William E. Chipman, Jr., Esq., at Chipman Brown
Cicero & Cole, LLP as counsel; Novo Advisors as financial advisor;
and Hilco Corporate Finance, LLC as investment banker. Stretto,
Inc. is the Debtors' noticing claims management and reconciliation
consultant.
IM3NY LLC: Seeks to Hire Chipman Brown Cicero & Cole as Counsel
---------------------------------------------------------------
iM3NY, LLC and Imperium3 New York, Inc. seek approval from the U.S.
Bankruptcy Court for the District of Delaware to employ Chipman
Brown Cicero & Cole, LLP as counsel.
The firm will render these services:
(a) provide legal advice with respect to the Debtors' powers
and duties;
(b) negotiate, draft, and pursue all documentation necessary
in these Chapter 11 cases;
(c) prepare on behalf of the Debtors all legal papers
necessary to the administration of their estates;
(d) appear in court and protect the interests of the Debtors
before the court;
(e) assist with any disposition of the Debtors' assets, by
sale or otherwise;
(f) negotiate and take all necessary or appropriate actions in
connection with a plan or plans of reorganization and all related
documents thereunder and transactions contemplated therein;
(g) attend all meetings and negotiate with representatives of
creditors, the United States Trustee, and other
parties-in-interest;
(h) provide legal advice regarding bankruptcy law, corporate
law, corporate governance, transactional, litigation and other
issues to the Debtors in connection with their ongoing business
operations; and
(i) perform all other legal services for, and provide all
other necessary legal advice to, the Debtors, which may be
necessary and proper in these Chapter 11 cases.
The firm's counsel will be paid at these hourly rates:
William Chipman, Jr., Partner $950
David Carickhoff, Partner $795
Mark Olivere, Partner $600
Alan Root, Partner $600
Aaron Bach, Associate $400
Alison Maser, Associate $400
Michelle Dero, Paralegal $350
In addition, the firm will seek reimbursement to expenses
incurred.
Within 90 days of petition date, the firm received a total retainer
of $210,000 from the Debtors.
Mr. Chipman also provided the following in response to the request
for additional information set forth in Section D of the Revised
U.S. Trustee Guidelines:
Question: Did you agree to any variations from, or
alternatives to, your standard or customary billing arrangements
for this engagement?
Answer: The firm did not agree to any variations from, or
alternatives to, its standard or customary billing arrangements for
this engagement.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic location of the
bankruptcy case?
Answer: None of the firm's professionals included in this
engagement have varied their rate based on the geographic location
for these Chapter 11 cases.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments
during the 12 months prepetition. If your billing rates and
material financial terms have changed postpetition, explain the
difference and the reasons for the difference.
Answer: The firm has represented the Debtors since November
18, 2024, in connection with restructuring advice. The billing
rates and material financial terms of its engagement have not
changed postpetition from the prepetition arrangement.
Question: Has your client approved your prospective budget and
staffing plan, and, if so for what budget period?
Answer: The firm, in conjunction with the Debtors' advisors,
has worked closely with the Debtors to develop an estimated budget
and staffing plan for approximately the first 13 weeks of these
proceedings.
Mr. Chipman disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
William E. Chipman, Jr., Esq.
Chipman Brown Cicero & Cole LLP
1313 N. Market St., Ste. 5400
Wilmington, DE 19801
Telephone: (302) 295-0191
Email: chipman@chipmanbrown.com
About iM3NY LLC
IM3NY LLC -- https://im3ny.com/ -- is an independent lithium-ion
cell manufacturer that is commercializing cell chemistry developed
in the USA.
iM3NY LLC and Imperium3 New York, Inc. sought relief under Chapter
11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No.
25-10131) on January 27, 2025. In the petition, the Debtors
reported estimated assets between $50 million and $100 million and
estimated liabilities between $100 million and $500 million.
The Honorable Bankruptcy Brendan Linehan Shannon handles the
cases.
The Debtors tapped William E. Chipman, Jr., Esq., at Chipman Brown
Cicero & Cole, LLP as counsel; Novo Advisors as financial advisor;
and Hilco Corporate Finance, LLC as investment banker. Stretto,
Inc. is the Debtors' noticing claims management and reconciliation
consultant.
IM3NY LLC: Seeks to Hire Novo Advisors as Financial Advisor
-----------------------------------------------------------
iM3NY, LLC and Imperium3 New York, Inc. seek approval from the U.S.
Bankruptcy Court for the District of Delaware to employ Novo
Advisors, LLC as financial advisor.
The firm will render these services:
(a) review and validate the Debtors' 13-week cash flow
forecast;
(b) develop and monitor a budget-versus-actual (BVA) method to
report against the weekly budget;
(c) develop and summarize a strategic assessment of the
options available for the Debtors;
(d) work with counsel to determine Workers Adjustment and
Retraining (WARN) exposure and provide recommendations to mitigate
potential exposure in connection with a sale and/or orderly wind
down;
(e) provide additional assistance as directed by the Debtors
and their board such as testifying in court at, among other
hearings, the hearing to approve debtor-in-possession (DIP)
financing and a sale(s);
(f) work collaboratively with the Debtors' board and
management team to evaluate, hire, and terminate employment that
leads to improved and sustained business performance based on its
business judgment and/or that better positions for a sale;
(g) work with the management team and board to identify and
implement both short-term and long-term profit improvement,
liquidity generating and debt reduction initiatives in an effort to
improve the ongoing viability of it as described above and/or that
better position for a sale;
(h) Rob Vanderbeek, a partner at Novo Advisors, if requested
to do so, will participate in board meetings and meetings with the
Debtors' senior lender to negotiate, size (if not already done) and
then monitor any DIP financing as well as provide regular updates
and seek input/guidance to improve the performance of the Debtors
and/or in connection with a sale, and;
(i) with the assistance of an investment banker selected by
the Debtors, oversee and manage any and all sales' offers or
proposals or other financial restructuring initiatives.
The firm's services will paid at an hourly range of $350 to $975
plus out-of-pocket expenses.
Prior to the petition date, the firm received an initial retainer
of $60,000 and supplemental retainer of $10,000 from the Debtors.
Mr. Vanderbeek disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Rob Vanderbeek, Esq.
Novo Advisors LLC
200 W. Madison St., Suite 1000
Chicago, IL 60606
Email: info@novo-advisors.com
About iM3NY LLC
IM3NY LLC -- https://im3ny.com/ -- is an independent lithium-ion
cell manufacturer that is commercializing cell chemistry developed
in the USA.
iM3NY LLC and Imperium3 New York, Inc. sought relief under Chapter
11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No.
25-10131) on January 27, 2025. In the petition, the Debtors
reported estimated assets between $50 million and $100 million and
estimated liabilities between $100 million and $500 million.
The Honorable Bankruptcy Brendan Linehan Shannon handles the
cases.
The Debtors tapped William E. Chipman, Jr., Esq., at Chipman Brown
Cicero & Cole, LLP as counsel; Novo Advisors as financial advisor;
and Hilco Corporate Finance, LLC as investment banker. Stretto,
Inc. is the Debtors' noticing claims management and reconciliation
consultant.
INKWELL PRODUCTIONS: Seeks to Hire Anthony & Parters as Counsel
---------------------------------------------------------------
The Inkwell Productions, Inc. seeks approval from the U.S.
Bankruptcy Court for the Middle District of Florida to employ
Anthony & Partners, LLC to handle its Chapter 11 case.
The firm will be paid at these hourly rates:
Stephanie Biernacki Anthony, Senior Partner $480
Townsend Belt, Senior Partner $395
Julia Traina, Associate Attorney $215
Lori Wright, Paralegal $115
Catherine Gay, Paralegal $100
Lori Ortega, Paralegal $100
The firm received a pre-petition retainer of $16,738 from the
Debtor, which includes the filing fee of $1,738.
Mr. Belt disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Townsend Belt, Esq.
Anthony & Partners, LLC
100 South Ashley Drive, Suite 1600
Tampa, FL 33602
Telephone: (813) 273-5616
Email: tbelt@anthonyandpartners.com
About The Inkwell Productions
The Inkwell Productions, Inc. filed a Chapter 11 petition (Bankr.
M.D. Fla. Case No. 24-07199) on December 5, 2024, listing under $1
million in both assets and liabilities.
The Debtor tapped Anthony & Partners, LLC as counsel and Schwack,
Garbutt, & Associates, CPA's LLC as accountant.
INKWELL PRODUCTIONS: Taps Schwack Garbutt & Assoc. as Accountant
----------------------------------------------------------------
The Inkwell Productions, Inc. seeks approval from the U.S.
Bankruptcy Court for the Middle District of Florida to employ
Schwack, Garbutt, & Associates, CPA's LLC as accountant.
The firm will provide general accounting and financial services to
the Debtor, prepare federal income tax returns, state and local
returns, and otherwise assist with the monthly reporting
requirements herein.
The firm will be paid at these hourly rates:
Robert Garbutt, CPA $300
Other Professionals and Staff $165 - $250
In addition, the firm will seek reimbursement for expenses
incurred.
The firm will also receive a retainer of $2,500 from the Debtor.
Robert Garbutt, CPA, a member at Schwack, Garbutt, & Associates,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Robert Garbutt, CPA
Schwack, Garbutt, & Associates, CPA's LLC
160 Market St. #5
Saddle Brook, NJ 07663
Telephone: (201) 797-2222
About The Inkwell Productions
The Inkwell Productions, Inc. filed a Chapter 11 petition (Bankr.
M.D. Fla. Case No. 24-07199) on December 5, 2024, listing under $1
million in both assets and liabilities.
The Debtor tapped Anthony & Partners, LLC as counsel and Schwack,
Garbutt, & Associates, CPA's LLC as accountant.
JANE STREET: $300MM Notes Upsize No Impact on Moody's 'Ba1' Rating
------------------------------------------------------------------
Moody's Ratings said that the Ba1 rating to Jane Street Group,
LLC's (Jane Street) senior secured notes is unaffected following
the proposed upsize of around $300 million maturing November 2032.
The upsize also does not affect Jane Street's Ba1 issuer rating,
senior secured first lien term loan B rating and stable outlook.
The Baa3 long-term issuer ratings and stable outlooks of Jane
Street Capital, LLC, Jane Street Execution Services, LLC, Jane
Street Financial Limited and Jane Street Netherlands B.V. were also
unaffected.
Jane Street's Ba1 issuer rating and stable outlook reflects its
strong risk management and governance over its electronic trading
activities and surrounding its business growth. Jane Street has a
deliberative partnership culture that enables it to maintain and
strengthen credit positive cultural attributes with a focus on risk
awareness. Also, key executives maintain ownership stakes and a
high level of involvement in managing the firm. The rating also
incorporates Jane Street's resilient balance sheet - characterized
by a strong equity capital base, modest leverage, rapidly turning
positions, tactical use of crash protection and prudent liquidity.
These strengths help mitigate the credit, market, liquidity and
operational risks inherent to Jane Street's business model. These
include navigating rapid shifts in market sentiment - due either to
losses at Jane Street or elsewhere - that erode market liquidity
and counterparty confidence. Moreover, the intensely competitive
nature of technology driven market-making dictates that Jane Street
continually stay at the forefront in terms of trading technology,
risk controls and retaining intellectual capital, otherwise its
franchise may erode and it's creditworthiness could deteriorate.
The $300 million upsize brings the balance of Jane Street's
November 2032 senior secured notes to around $1.45 billion. Jane
Street plans to use the incremental proceeds to increase its
trading capital and for general corporate purposes. Jane Street's
senior secured term loan B due December 2031 continues to rank
pari-passu with the senior secured notes.
Jane Street's ratings could be upgraded should Moody's see
continued growth in market share across a broad set of asset
classes while diversifying revenue through the development of
lower-risk and profitable business activities; substantial
reduction of trading capital mix in less-liquid and higher-risk
assets; demonstration of the firm's ability to manage its expansion
in size and complexity while retaining its deliberative risk
management and partnership culture.
Jane Street's ratings could be downgraded should it increase its
risk appetite or suffer from a significant risk management or
operational failure; experience adverse changes in corporate
culture or management quality; experience a substantial and
sustained decline in profitability caused by changes in the market
or regulatory environment; increase its capital distributions in a
manner that is not commensurate with its historic trends; or change
its funding mix to a significantly heavier weighting towards
long-term debt and away from equity resulting in a substantial
increase in its balance sheet leverage.
JJ BADA: Gets Interim OK to Use Cash Collateral Until March 4
-------------------------------------------------------------
JJ Bada 464 Operating Corp. received interim approval from the U.S.
Bankruptcy Court for the District of New Jersey to use cash
collateral until March 4.
The interim order signed by Judge Stacey Meisel authorized the
company to use cash collateral to pay the expenses set forth in its
30-day budget, which shows total weekly operating expenses of
$46,187.
Il Yeon Kwon and the U.S. Small Business Administration assert an
interest in the cash collateral, including cash and cash
equivalents. These secured creditors will be granted a replacement
lien on the cash collateral as protection for any diminution in
value of their interest in the collateral.
As additional protection, Kwon and the SBA will receive monthly
payments of $5,157.31 and $189, respectively.
On January 13, 2020, JJ entered into a promissory note with Kwon in
the principal amount of $270,000, with a fixed interest rate of
5.5%, a monthly principal and interest payments of $5,157, and a
maturity date of February 1, 2025. In order to secure payment of
the note, JJ executed a security agreement which granted Kwon a
lien on the collateral. As of the petition date, approximately
$50,000 is due and owing on the note.
On May 26, 2020, JJ entered into an Economic Injury Disaster Loan
with the SBA in the principal amount of $38,600, with a fixed
interest rate of 3.75% and monthly principal and interest payments
of $189, commencing on May 1, 2021, and payable over 30 years from
the date of the note. The company executed a security agreement in
order to secure payment of the note, which granted the SBA a lien
on the collateral. As of the petition date, JJ owed approximately
$35,000 on the note.
A final hearing is set for March 4.
About JJ Bada 464 Operating Corp.
JJ Bada 464 Operating Corp. owns and operates Bada Story
Restaurant, a Korean and Japanese Sushi Restaurant located at 464
Sylvan Avenue, Englewood Cliffs, N.J.
JJ Bada 464 Operating sought protection under Chapter 11 of the
U.S. Bankruptcy Court (Bankr. D. N.J. Case No. 25-11078) on
February 1, 2025, listing between $500,001 and $1 million in both
assets and liabilities. Brandon Park, president of JJ Bada 464
Operating, signed the petition.
Judge Stacey L. Meisel oversees the case.
Rosemarie E. Matera, Esq., at Kirby Aisner & Curley, LLP,
represents the Debtor as legal counsel.
JM GROVE: Files Emergency Bid to Use Cash Collateral
----------------------------------------------------
JM Grove, LLC asked the U.S. Bankruptcy Court for the District of
Kansas for authority to use cash collateral through July 5 or until
a Chapter 11 plan of reorganization is confirmed.
The company's bar and grill business was closed by order of the
Kansas Department of Revenue on January 28, 2025. At the time of
filing, the company had negative bank account balances, no accounts
receivable, and minimal inventory.
JM Grove's secured creditors are the U.S. Small Business
Administration, Kansas Department of Revenue, and Web Bank.
There is no equity above and beyond the liens of the SBA and the
Kansas Department of Revenue for this lien to attach to.
JM Grove proposed, effective as of the petition date, that each of
the creditors is granted replacement security interests in, and
liens on, all post-petition date acquired property of the company
and its bankruptcy estate that is the same type of property that
the specific creditor holds a pre-bankruptcy interest, lien or
security interest to the extent of the validity and priority of
such interests, liens, or security interests, if any.
The amount of each of the replacement liens will be up to the
amount of any diminution of each of the creditors' respective
collateral positions from the petition date. The priority of the
replacement liens will be in the same priority as each of the
creditor's pre-bankruptcy interests, liens, and security interests
in similar property.
JM Grove further proposed paying the Kansas Department of Revenue a
monthly adequate protection payment beginning March 30, and on the
30th day of each month thereafter until further order of the court.
About JM Grove LLC
JM Grove, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Kan. Case No. 25-20111) on February 4,
2025, listing between $50,001 and $100,000 in assets and between
$100,001 and $500,000 in liabilities. Jordan Grove, a member of JM
Grove, signed the petition.
Judge Dale L. Somers oversees the case.
Colin Gotham, Esq., at Evans & Mullinix, P.A., represents the
Debtor as legal counsel.
KND HOSPITALITY: Seeks to Extend Plan Filing Deadline
-----------------------------------------------------
KND Hospitality Company, Inc. asked the U.S. Bankruptcy Court for
the Northern District of Texas to extend its exclusivity periods to
file a plan of reorganization and disclosure statement and obtain
acceptance thereof.
The Debtor explains that it is current on all of its administrative
obligations. Pursuant to Section 1121 of the Bankruptcy Code, the
initial 120-day time period for BWH to file a Plan and Disclosure
Statement will expire on January 29, 2025.
The Debtor claims that before filing a plan, Debtor is attempting
to cure certain deficiencies with the Comptroller of the State of
Texas. No harm would befall any parties in interest if the Court
grants this Motion.
KND Hospitality Company is represented by:
Gregory W. Mitchell, Esq.
Freeman Law, PLLC
1412 Main Street, Suite 500
Dallas TX 75202
Tel: (972) 463-8417
Email: gmitchell@freemanlaw.com
About KND Hospitality Company
KND Hospitality Company, Inc. operates primarily in the hospitality
sector, focusing on providing catering and consulting services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Texas Case No. 24-33108) on Oct. 1,
2024, with $100,001 to $500,000 in assets and $500,001 to $1
million in liabilities.
Judge Michelle V. Larson oversees the case.
The Debtor is represented by Gregory Wayne Mitchell, Esq., at
Freeman Law, PLLC.
KUT AUTO: Case Summary & 12 Unsecured Creditors
-----------------------------------------------
Debtor: Kut Auto Finance, LLC
d/b/a Kut Auto
2337 Center Point Pkwy
Birmingham, AL 35215
Business Description: KUT Auto is a used car dealership that
offers a wide selection of vehicles,
including cars, pickups, and SUVs, tailored
to fit various budgets. The Company focuses
on providing exceptional customer service,
including flexible financing options, free
warranties, and roadside assistance to
protect both the customer and their
investment. KUT Auto is dedicated to
building trust through transparency,
offering vehicle history reports and working
closely with customers to meet their
automotive needs.
Chapter 11 Petition Date: February 8, 2025
Court: United States Bankruptcy Court
Northern District of Alabama
Case No.: 25-00389
Judge: Hon. Tamara O Mitchell
Debtor's Counsel: Steven D. Altmann, Esq.
ALTMANN LAW FIRM, LLC
Nomberg Law Firm
3940 Montclair Rd, Ste 401
Birmingham, AL 35213
Tel: (205) 930-6900
Fax: (205) 855-4262
E-mail: steve@nomberglaw.com
Total Assets: $3,142,240
Total Liabilities: $2,730,169
The petition was signed by Nathan Syme as managing member.
A copy of the Debtor's list of 12 unsecured creditors is available
for free on PacerMonitor at:
https://www.pacermonitor.com/view/P6I6GHY/Kut_Auto_Finance_LLC__alnbke-25-00389__0002.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/PRCFOHY/Kut_Auto_Finance_LLC__alnbke-25-00389__0001.0.pdf?mcid=tGE4TAMA
LE CONTE: Gets Interim OK to Use Cash Collateral
------------------------------------------------
Le Conte Westwood Development, LLC received interim approval from
the U.S. Bankruptcy Court for the Central District of California,
Los Angeles Division, to use its secured creditors' cash
collateral.
The company needs to use cash collateral to maintain and operate
its properties in Los Angeles, Calif. The rents generated from the
properties constitute the secured creditors' cash collateral.
As protection for any diminution in the value of their collateral,
secured creditors will be granted replacement liens on the
properties, with the same extent, validity and priority as their
pre-bankruptcy liens.
Le Conte company's primary properties are its 42.46% tenancy in
common interests in real properties located at 10902 - 10906
Weyburn Avenue, 901- 951 Westwood Boulevard, and 10908 - 10916 Le
Conte Boulevard, Los Angeles, Calif. (Holmby property); and 10918
– 10928 Le Conte Boulevard, Los Angeles, Calif. (Parking Lot
property)
The Holmby property is an income generating property and encumbered
by the first priority lien of Citizens Business Bank, which is owed
approximately $21.4 million; and by the second priority lien of
George Gelsebach, individually and as trustee of the George
Gelsebach 2010 Trust, who is currently owed approximate $8
million.
Like the Holmby property, the Parking Lot property is also an
income producing property encumbered by the first priority lien of
Image Finance, LLC, which is owed approximately $13.5 million; and
by the second priority lien of Freedom REIT, which is owed
approximately $6.5 million.
Le Conte believes that the current fair market values of the Holmby
property and the Parking Lot property are no less than $35 million
and $34.5 million respectively, while the total asserted debt is
approximately $49.4 million.
A final hearing will be held on March 6.
About Le Conte Westwood Development
Le Conte Westwood Development, LLC sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No.
25-10261) on January 14, 2025, listing between $10 million and $50
million in both assets and liabilities. Logan Beitler, manager of
Le Conte, signed the petition.
Judge Vincent P. Zurzolo oversees the case.
Gary E. Klausner, Esq., at Levene, Neale, Bender, Yoo & Golubchik,
LLP, represents the Debtor as legal counsel.
LGGD PROPERTIES: Taps Pakis Giotes Burleson & Deaconson as Counsel
------------------------------------------------------------------
LGGD Properties, LLC seeks approval from the U.S. Bankruptcy Court
for the Western District of Texas to employ Pakis Giotes Burleson &
Deaconson, PC as its counsel.
The firm will render these services:
(a) assist the Debtor in preparation and filing of its
schedules, Chapter 11 plan, and all other pleadings in this case;
(b) attend 341 meeting and all other hearings held in this
case; and
(c) take all other action necessary to represent the Debtor in
all other matters in this case.
David Alford, Esq., the primary attorney in this representation,
will be paid at his hourly rate of $475 plus expenses.
The firm also received a retainer fee of $5,000 from George Dulany,
Jr., a principal of the Debtor.
Mr. Alford disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
David C. Alford, Esq.
Pakis Giotes Burleson & Deaconson, PC
400 Austin Ave.
Waco, TX 76701
Telephone: (254) 3799720
Facsimile: (254) 297-9720
About LGGD Properties LLC
LGGD Properties LLC is a single asset real estate company based in
Temple, Texas.
LGGD Properties LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Tex. Case No. 25-60007) on January 6,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $500,000 and $1 million each.
Honorable Bankruptcy Judge Michael M. Parker handles the case.
David C. Alford, Esq., at Pakis, Giotes, Page & Burleson represents
the Debtor as counsel.
LIBERATED BRANDS: Seeks to Tap Stretto as Claims and Noticing Agent
-------------------------------------------------------------------
Liberated Brands, LLC and its affiliates seek approval from the
U.S. Bankruptcy Court for the District of Delaware to employ
Stretto, Inc. as claims and noticing agent.
Stretto will oversee the distribution of notices and will assist in
the maintenance, processing, and docketing of proofs of claim filed
in the Chapter 11 cases of the Debtors.
Prior to the petition date, the Debtors provided advance payment to
Stretto in the amount of $25,000.
Sheryl Betance, a senior managing director at Stretto, disclosed in
a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Sheryl Betance
Stretto, Inc.
410 Exchange, Ste. 100
Irvine, CA 92602
Telephone: (714) 716-1872
Email: sheryl.betance@stretto.com
About Liberated Brands
Liberated is in the sport, outdoor, and lifestyle apparel industry.
Liberated offers its customers access to products under
high-quality brands such as Volcom, Billabong, Quiksilver, Spyder,
RVCA, Roxy, and Honolua, in its 124 retail locations across the
United States and through other channels. As an omnichannel apparel
licensee with deep-rooted and unique expertise in trend forecasting
and brand development, Liberated has attracted loyal customers in
more than 100 countries. Liberated operates regional headquarters
in North America, Europe, Japan, and Australia.
On Feb. 2, 2025, Liberated Brands LLC and eight affiliated debtors
filed voluntary petitions for relief under Chapter 11 of the United
States Bankruptcy Code (Bankr. D. Del. Lead Case No. 25-10168). The
cases are pending before Honorable Judge J. Kate Stickles.
Liberated has tapped Kirkland & Ellis, LLP and Klehr Harrison
Branzburg LLP to facilitate the Chapter 11 restructuring process.
AlixPartners LLC is the Debtors' financial advisor. Stretto is the
claims agent.
JP Morgan has retained Morgan, Lewis & Bockius LLP and Berkeley
Research Group, LLC.
LILLY INDUSTRIES: Seeks to Hire Parsons Behle & Latimer as Counsel
------------------------------------------------------------------
Lilly Industries, Inc., doing business as The Slab Studio, LM,
seeks approval from the U.S. Bankruptcy Court for the Central
District of California to employ Parsons Behle & Latimer as
counsel.
The firm will provide these services:
(a) advise the Debtor with respect to its powers and duties;
(b) advise and consult on the conduct of the Chapter 11 case;
(c) advise the Debtor in connection with corporate
transactions and corporate governance, negotiations, consent
solicitations, credit agreements, financing agreements, and other
agreements with creditors, equity holders, prospective acquirers
and investors, review and prepare documents and agreements, and
such other actions;
(d) review and prepare pleadings in connection with the
Chapter 11 case;
(e) attend meetings and negotiate with representatives of
creditors and other parties in interest;
(f) advise the Debtor with legal issues related to its
financial circumstances;
(g) perform all other ancillary and necessary legal services
for the Debtor in connection with the prosecution of the Chapter 11
case;
(h) take all necessary legal actions to protect and preserve
the Debtor's estate as it requests; and
(i) take any necessary action on behalf of the Debtor as it
requests to obtain approval of a disclosure statement and
confirmation of a Chapter 11 plan and all documents related
thereto.
The firm's professionals will be paid at these hourly rates of:
Brian Rothschild, Shareholder $595
Darren Neilson, Shareholder $575
Samantha Davidson, Associate $490
Elliott McGill, Associate $475
Alexander Chang, Associate $455
In addition, the firm will seek reimbursement for expenses
incurred.
On September 4, 2024, the firm also received a retainer of $25,000
from the Debtor.
Mr. Rothschild disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Brian Rothschild, Esq.
Parsons Behle & Latimer
201 S. Main Street, Suite 1800
Salt Lake City, UT 84111
Telephone: (801) 532-1234
Facsimile: (801) 536-6111
Email: Rothschild@parsonsbehle.com
About Lilly Industries Inc.
Lilly Industries Inc., doing business as The Slab Studio, LM,
Lilly Industries Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10301) on February 3,
2025. In its petition, the Debtor reports total assets of $698,536
and total liabilities of $2,583,516.
Honorable Bankruptcy Judge Theodor Albert handles the case.
Brian Rothschild, Esq., at Parsons Behle & Latimer serves as the
Debtor's counsel.
LITTLE DOLLAR: Todd Hennings Named Subchapter V Trustee
-------------------------------------------------------
The U.S. Trustee for Region 21 appointed Todd Hennings, Esq., at
Macey, Wilensky & Hennings, LLP as Subchapter V trustee for Little
Dollar Inc.
Mr. Hennings will be paid an hourly fee of $450 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Hennings declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Todd E. Hennings, Esq.
Macey, Wilensky & Hennings, LLP
5500 Interstate North Parkway, Suite 435
Sandy Springs, GA 30328
Phone: (404) 584-1222
Email: info@joneswalden.com
About Little Dollar Inc.
Little Dollar Inc. operates in the real estate sector.
Little Dollar sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. N.D. Ga. Case No. 25-51064) on February 1, 2025. In
its petition, the Debtor reported between $1 million and $10
million in both assets and liabilities.
The Debtor is represented by:
Brad Fallon, Esq.
Fallon Law, PC
1201 W. Peachtree St. NW, Suite 2625
Atlanta, GA 30309
Tel: (404) 849-2199
Email: brad@fallonbusinesslaw.com
LITTLE MINT: Hires Country Boys Auction & Realty as Auctioneer
--------------------------------------------------------------
The Little Mint, Inc. seeks approval from the U.S. Bankruptcy Court
for the Eastern District of North Carolina to employ Country Boys
Auction & Realty, Inc. as auctioneer.
The firm will render these services:
(a) prepare and conduct an inventory of the property to be
sold and reporting the results to the Debtor;
(b) advise the Debtor of the security of the location of the
assets and of any need for special handling;
(c) assist the Debtor in establishing a location for the sale
and any presale storage;
(d) assemble assets to be sold, and group and set up of assets
to be sold;
(e) provide and post signs;
(f) create and distribute sale brochures;
(g) provide all advertising text;
(h) provide for a registrar/cashier at sale;
(i) register bidders by name, address, and bidder number;
(j) conduct sale and collect auction proceeds, and provide for
security and site restoration;
(k) provide the Debtor with a sale report; and
(l) any other liquidation services for the Debtor as may be
necessary for an orderly and complete liquidation.
The firm will be compensated at these rates:
(a) 20 percent of first 20,000;
(b) 10 percent of next 50,000; and
(c) 8 percent of balance.
Mike Gurkins, an auctioneer at Country Boys Auction & Realty,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Mike Gurkins
Country Boys Auction & Realty, Inc.
1211 W. 5th St.
Washinton, NC 277889
Telephone: (252) 946-6007
About The Little Mint Inc.
The Little Mint, Inc. owns multiple Hwy 55 Burgers, Shakes & Fries
restaurants. It conducts business under the name Hwy 55 Burgers
Shakes & Fries and is based in Mount Olive, N.C.
Little Mint sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. E.D.N.C. Case No. 24-04510) on Dec. 31, 2024. In its
petition, the Debtor reported assets between $1 million and $10
million and liabilities between $10 million and $50 million.
Judge Joseph N. Callaway presides over the case.
Rebecca F. Redwine, Esq., at Hendren, Redwine & Malone, PLLC is the
Debtor's legal counsel.
LOGAN VILLAGE: Seeks to Hire KC Cohen as Bankruptcy Counsel
-----------------------------------------------------------
Logan Village Mall, LLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of Indiana to employ KC Cohen,
Lawyer, PC as its counsel.
The firm will render these services:
(a) advise the Debtor with respect to its duties, powers, and
responsibilities in this case;
(b) investigate and pursue any actions on behalf of the estate
in order to recover assets for or best enable this estate to
reorganize fairly;
(c) represent the Debtor in these proceedings in an effort to
maximize the value of the assets available herein, and to pursue
confirmation of a successful Plan of Reorganization; and
(d) perform such other legal services as may be required and
in the interest of the estate herein.
The firm will be paid at these hourly rates:
Christopher McElwee, Attorney $300
Nicholas Wildeman, Attorney $200
Michele Jennings, Paralegal $100
The firm received a retainer of $5,000 from the Debtor.
KC Cohen, Esq., disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
KC Cohen, Esq.
KC Cohen, Lawyer, PC
1915 Broad Ripple Ave.
Indianapolis, IN 46220
Telephone: (317) 715-1845
Facsimile: (317) 636-8686
Email: kc@smallbusiness11.com
About Logan Village Mall LLC
Logan Village Mall LLC operates retail businesses under the names
Three Rusty Nails Shoppe and The Gathering Place from its location
at 977 Logan Street in Noblesville, Indiana.
Logan Village Mall LLC sought relief under Subchapter V of Chapter
11 of the U.S. Bankruptcy Code (Bankr. S.D. Ind. Case No. 25-00252)
on January 17, 2025. In its petition, the Debtor reports estimated
assets up to $50,000 and estimated liabilities between $100,000 and
$500,000.
Honorable Bankruptcy Judge James M. Carr handles the case.
KC Cohen, Lawyer, PC serves as the Debtor's counsel.
LOGIX HOLDING: Moody's Withdraws 'Caa3' Corporate Family Rating
---------------------------------------------------------------
Moody's Ratings has withdrawn the ratings of Logix Holding Company,
LLC due to lack of sufficient information. The ratings withdrawn
include the Caa3 corporate family rating, the Caa3-PD probability
of default rating, and the Caa2 rating on the senior secured first
lien bank credit facility. The December 2024 maturity date has
passed on its senior secured first lien term loan, and the company
has not publicly announced whether or not the loan was repaid. The
negative outlook was withdrawn as well. Logix is a fiber-based
network infrastructure operator.
RATINGS RATIONALE
Moody's have decided to withdraw the rating(s) because Moody's
believe Moody's have insufficient or otherwise inadequate
information to support the maintenance of the rating(s).
MAJESTIC OAK: Court OK's Development Property Sale in Brevard
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida,
Orlando Division, has approved Majestic Oak Estates Ltd. to sell
real property, free and clear of liens, claims, and encumbrances.
The Debtor is authorized to sell the development property located
in Brevard County, Florida.
The Court found that Central Bank is deemed a Qualified Bidder and
does not have a pay to a bidder deposit, and have the right to
credit bid its claim amount of $2,110,000.
The Court also held that Anderson Place Construction is deemed a
Qualified Bidder and does not have to pay a Bidder Deposit and have
the right to credit bid its second position claim amount of
$1,759,284.66.
If Anderson Place Construction is the successful bidder by way of
its second position credit bid, then Anderson Place Construction
must satisfy the claim amount of $2,110,000.00 owed to Central Bank
at the closing of the sale.
The Debtor is authorized to take all actions necessary or
appropriate to implement the Bid Procedures.
The Court ordered that Fisher Auctions shall market the Property
for sale and conduct an on-line
auction of the Property beginning on March 12, 2025, at 11:00 a.m.
Eastern Standard Time and ending at 1:00 p.m., subject to
extensions. The Auction shall be conducted in accordance with the
Bid Procedures.
The Court will conduct a further hearing in this case on March 14,
2025 at 11:00 a.m., before the Honorable Tiffany P. Geyer, United
States Bankruptcy Court, 400 W. Washington Street, 6th Floor,
Courtroom A, Orlando, Florida to approve the sale of the Property
to the Successful Bidder.
The Court further directed that subject to the approval of the
Successful Bid and the Back-Up Bid by the Court at the Sale
Hearing, the Debtor's Property will be sold free and clear of all
liens, claims, encumbrances, and interests.
About Majestic Oak Estates Ltd.
Majestic Oak Estates G.P. LLC is a limited liability company.
Majestic Oak Estates G.P. LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-06488) on
November 27, 2024. In the petition filed by Gene A. Liguori, Jr.
as
member, the Debtor reports estimated assets up to $50,000 and
estimated liabilities between $1 million and $10 million.
Honorable Bankruptcy Judge Tiffany P. Geyer oversees the case.
The Debtor is represented by Jeffrey S. Ainsworth, Esq., at
BRANSONLAW, PLLC, in Orlando, Florida.
MARATHON DEVELOPMENT: Seeks to Hire LSS Law as Bankruptcy Counsel
-----------------------------------------------------------------
Marathon Development Partners, LLC seeks approval from the U.S.
Bankruptcy Court for the Southern District of Florida to employ
Leiderman Shelomith + Somodevilla, PLLC, doing business as LSS Law,
as counsel.
The firm will render these services:
(a) give advise to the Debtor with respect to its powers and
duties;
(b) advise the Debtor with respect to its responsibilities in
complying with the U.S. Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the court;
(c) prepare legal documents necessary in the administration of
the case;
(d) protect the interests of the Debtor in all matters pending
before the court;
(e) represent the Debtor in negotiation with its creditors in
the preparation of a plan; and
(f) perform all other legal services for the Debtor, which may
be necessary herein.
The firm will be paid at these hourly rates:
Attorneys $520 - $560
Paraprofessionals $125 - $215
In addition, LSS Law will seek reimbursement for expenses
incurred.
Prior to filing of this case, the firm received a total fee and
cost retainer in the amount of $17,505.
Christian Somodevilla, Esq., an attorney at LSS Law, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Christian Somodevilla, Esq.
LSS Law
2 South Biscayne Boulevard, Suite 2200
Miami, FL 33131
Telephone: (305) 894-6163
Facsimile: (305) 503-9447
Email: cs@lss.law
About Marathon Development Partners LLC
Marathon Development Partners LLC operates as a real estate
development company based in Marathon, Florida.
Marathon Development Partners LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-10467) on
January 17, 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 Corali Lopez-Castro handles the case.
Christian Somodevilla, Esq., at LSS Law serves as the Debtor's
counsel.
MARIANAS PROPERTIES: Plan Exclusivity Period Extended to April 10
-----------------------------------------------------------------
Judge Frances M. Tydingco-Gatewood of the U.S. Bankruptcy Court for
the District of Guam extended Marianas Properties, LLC's exclusive
periods to file a plan of reorganization and obtain acceptance
thereof to April 10 and June 9, 2025, respectively.
As shared by Troubled Company Reporter, the Debtor explains that it
owns and historically operated a large hotel and resort with
numerous amenities. Based on the size of the claim held by Bank of
Guam ("BOG"), the existence of nondebtor affiliates, the number of
first day motions, the contested debtor-in-possession financing,
and active pending disputes with BOG, this case is both large and
sophisticated.
As such, the Debtor requires more than the initial Exclusivity
Periods to prepare, propose, and seek confirmation of a chapter 11
plan, and more time is likely to benefit the Debtor, its estate,
and all of its creditors by enhancing the likelihood of recoveries
for creditors other than alleged secured creditors.
The Debtor claims that it is engaged in informal marketing of its
assets and is actively negotiating with certain parties. The Debtor
has also resolved various contested matters. Given the time and
attention that has been expended on these matters especially a
complex marketing and sales negotiation, the Debtor requires
additional time to propose a plan.
The Debtor explains that it seeks to maintain exclusivity so
parties with competing interests do not derail the Debtor's efforts
to formulate a consensual restructuring that maximizes value for
all of its creditors. Maintaining exclusivity will afford the
Debtor the opportunity to continue with the negotiations of a sale,
and negotiations with BOG in order to maximize the value to the
bankruptcy estate and the Debtor's creditors.
Marianas Properties, LLC is represented by:
Minakshi V. Hemlani, Esq.
Law Offices Of Minakshi V. Hemlani, P.C.
285 Farenholt Ave., Suite C-312
Tamuning, Guam 96913
Tel: (671) 588-2030
Email: mvhemlani@mvhlaw.net
Andrew C. Helman, Esq.
Dentons Bingham Greenebaum LLP
One City Center, Suite 11100
Portland, ME 04101
Tel: (207) 619-0919
Email: andrew.helman@dentons.com
About Marianas Properties
Marianas Properties, LLC in Tumon, GU, sought relief under Chapter
11 of the Bankruptcy Code filed its voluntary petition for Chapter
11 protection (Bankr. D. Guam Case No. 24-00013) on Sept. 12, 2024,
listing as much as $10 million to $50 million in both assets and
liabilities. Ajay Pothen as president, signed the petition.
Judge Frances M Tydingco-Gatewood oversees the case.
DENTONS BINGHAM GREENEBAUM LLP serves as the Debtor's legal
counsel. LAW OFFICES OF MINAKSHI V. HEMLANI, P.C., is the local
counsel. GIBBINS ADVISORS, LLC is the Debtor's financial advisor.
MARK'S POOL: Leona Mogavero Named Subchapter V Trustee
------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Leona Mogavero,
Esq., at Zarwin Baum as Subchapter V trustee for Mark's Pool
Service, LLC.
Ms. Mogavero will be paid an hourly fee of $425 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Mogavero declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Leona Mogavero, Esq.
Zarwin Baum
One Commerce Square
2005 Market Street, 16th Floor
Philadelphia, PA 19103
Phone: (267) 765-9630
Email: lmogavero@zarwin.com
About Mark's Pool Service
Mark's Pool Service, LLC, doing bsuiness as MPS Custom Pools, is a
pool contractor serving the Lehigh Valley area. It specializes in a
variety of services, from custom pool design and construction to
regular maintenance. Its offerings include concrete pools, custom
above-ground pools, custom inground pools, semi-inground pools,
fiberglass pools, pool renovations, tile work, upgrades, vinyl
pools, and weekly cleaning services.
Mark's Pool Service sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Pa. Case No. 25-10348) on January 28,
2025, with $100,000 to $500,000 in assets and $1 million to $10
million in liabilities. Mark D. Reynard, president of Mark's Pool
Service, signed the petition.
Judge Patricia M. Mayer presides over the case.
Frank S. Marinas, Esq. at Maschmeyer Marinas, P.C. represents the
Debtor as legal counsel.
MOGA TRANSPORT: Unsecured Creditors Will Get 100% over 60 Months
----------------------------------------------------------------
Moga Transport, Inc. filed with the U.S. Bankruptcy Court for the
Northern District of California a Combined Plan of Reorganization
and Disclosure Statement.
The Debtor is a fairly large trucking company organized in 2013 by
two childhood friends. The business transports dairy products
throughout California.
On September 9, 2024, the Debtor filed the instant case to stop
several lawsuits that are pending against it. The lawsuits have
made it very difficult for the business to continue operations.
Although the Debtor's business faces much competition, it has
stayed afloat. It can continue to do so if it can focus on business
and propose a payment plan to all bona fide creditors.
Class 2(a) consists of Small Claims General Unsecured Creditors.
The allowed unsecured claims total $278,921.05. Creditors will
receive 100% of their allowed claim in 60 equal monthly
installments, due on the 10th day of the month, starting on the
Plan's Effective Date. This class is impaired and is entitled to
vote on confirmation of the Plan.
Class 2(b) consists of Special Category Claims. The amount of claim
in this Class total $515,000.00. The Debtor will pay the special
category claims as offered with no interest from the Effective Date
of the Plan through 60 equal monthly payments. Payments will be due
on the 10th day of the month, starting on the Effective Date. This
class is impaired and is entitled to vote on confirmation of the
Plan.
On the Effective Date, all property of the estate and interests of
the Debtor will vest in the reorganized Debtor pursuant to Section
1141(b) of the Bankruptcy Code free and clear of all claims and
interests except as provided in this Plan.
Except as provided in Part 6(d) and (e), the obligations to
creditors that Debtor undertakes in the confirmed Plan replace
those obligations to creditors that existed prior to the Effective
Date of the Plan. Debtor's obligations under the confirmed Plan
constitute binding contractual promises that, if not satisfied
through performance of the Plan, create a basis for an action for
breach of contract under California law. To the extent a creditor
retains a lien under the Plan, that creditor retains all rights
provided by such lien under applicable non-Bankruptcy law.
A full-text copy of the Combined Plan and Disclosure Statement
dated January 29, 2025 is available at
https://urlcurt.com/u?l=9LXoWq from PacerMonitor.com at no charge.
About Moga Transport
Moga Transport Inc. is part of the general freight trucking
industry.
Moga Transport Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy (Bankr. N.D. Cal. Case No. 24-10478) on September 9,
2024. In the petition filed by Prabhjeet Gil, as VP HR and legal,
the Debtor reports estimated assets between $500,000 and $1 million
and $1 million and $10 million.
The Honorable Bankruptcy Judge William J .Lafferty handles the
case.
The Debtor is represented by:
Arasto Farsad, Esq.
FARSAD LAW OFFICE, P.C.
1625 The Alameda, Suite 525
San Jose, CA 95126
Tel: (408) 641-9966
E-mail: Farsadlaw1@gmail.com
MONTGOMERY TREE: Plan Exclusivity Period Extended to Feb. 26
------------------------------------------------------------
Judge Brenda T. Rhoades of the U.S. Bankruptcy Court for the
Eastern District of Texas extended Montgomery Tree Farms Of Texas
Ltd.'s exclusive periods to file a plan of reorganization and
obtain acceptance thereof to February 26, 2025 and April 27, 2025,
respectively.
As shared by Troubled Company Reporter, the Debtor owns and
operates a tree farm on 122 acres of land in Collin County located
at SWQ West Bethany and Alma Drive in Allen, Texas. The Debtor has
filed a Motion for Authority to Sell Real Property Free and Clear
of All Liens, Claims and Encumbrances Located at SWQ West Bethany
and Alma Drive in Allen, Texas (the "Sale Motion").
The Sale Motion discloses that the Debtor is entering into a Joint
Venture Agreement with the Buyer to retain twenty-five percent of
the net profits from the future sale of trees and development of
the Real Property to ensure satisfaction of all allowed claims of
the estate.
The Debtor explains that once the property is sold, the Debtor
believes that it will be able to confirm a feasible chapter 11 plan
of reorganization within the second extended Exclusivity Periods
sought by this Motion. Accordingly, the Debtor's efforts during the
short time since the Petition Date establish that "cause" exists
for the Court to grant the relief requested herein.
Montgomery Tree Farms of Texas Ltd. is represented by:
John Paul Stanford, Esq.
Quilling, Selander, Lownds, Winslett & Moser, P.C.
2001 Bryan Street, Suite 1800
Dallas, TX 75201
Tel: (214) 880-1851
Fax: (214) 871-2111 (Fax)
Email: jstanford@qslwm.com
About Montgomery Tree Farms Of Texas Ltd.
Montgomery Tree Farms of Texas Ltd. operates in the agriculture
industry.
Montgomery Tree Farms of Texas sought relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. E.D. Tex. Case No.
24-41560) on July 1, 2024. In the petition filed by Philip
Williams, managing member of General Partner of Montgomery Tree
Farms, the Debtor estimated assets and liabilities between $1
million and $10 million.
The Debtor is represented by John Paul Stanford, Esq. at QUILLING,
SELANDER, LOWNDS, WINSLETT & MOSER, P.C.
MORANS AUTO: Gets Interim OK to Use Cash Collateral
---------------------------------------------------
Morans Auto Connection, LLC received interim approval from the U.S.
Bankruptcy Court for the Middle District of Florida, Jacksonville
Division, to use cash collateral.
The company requires the use of cash collateral to pay normal
business expenses and maintain its property.
The U.S. Small Business Administration and Mid Atlantic Finance
Company Inc. assert an interest in the company's cash collateral.
As adequate protection, the lenders will be granted a replacement
lien on the company's receivables.
The next hearing is set for March 4.
About Morans Auto Connection
Morans Auto Connection, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
25-00151) on January 17, 2025, listing up to $500,000 in both
assets and liabilities. Aaron Cohen, Esq., a practicing attorney in
Jacksonville, Fla., serves as Subchapter V trustee.
Judge Jacob A. Brown oversees the case.
Thomas Adam, Esq., at Adam Law Group, PA, represents the Debtor as
bankruptcy counsel.
MOUNTAIN SPORTS: Plan Exclusivity Period Extended to April 18
-------------------------------------------------------------
Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District
of Delaware extended Mountain Sports, LLC and its affiliates'
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 Debtors claim that
extension of the Exclusive Periods is justified by the good faith
progress the Debtors are making toward liquidating their remaining
assets, reviewing filed and scheduled claims, and formulating the
basis of a viable plan in these cases. The Debtor asserts that
there is sufficient "cause" for an extension of the Exclusive
Periods.
The Debtors explain that the extension of the Exclusive Periods
will afford them and all other parties in interest an opportunity
to fully develop the grounds upon which a plan can be based
following the payment in full of PNC. Terminating the Exclusive
Periods prematurely would defeat the very purpose of section 1121
of the Bankruptcy Code, to afford the Debtors a meaningful and
reasonable opportunity to negotiate with creditors and propose and
confirm a consensual plan.
Accordingly, the Debtors should be afforded a full and fair
opportunity to propose, negotiate, and seek acceptances of a
chapter 11 plan. The Debtors believe that the requested extension
of the Exclusive Periods is warranted and appropriate under the
circumstances. The Debtors submit that the requested extension is
realistic and necessary, will not prejudice the legitimate
interests of creditors and other parties in interest, and will
afford it a meaningful opportunity to pursue a consensual plan, all
as contemplated by chapter 11 of the Bankruptcy Code.
Counsel for the Debtors:
GOLDSTEIN & MCCLINTOCK LLLP
Maria Aprile Sawczuk, Esq.
501 Silverside Road, Suite 65
Wilmington, DE 19809
Telephone: (302) 444-6710
Email: marias@goldmclaw.com
-and-
Matthew E. McClintock, Esq.
William Thomas, Esq.
111 W. Washington Street, Suite 1221
Chicago, IL 60602
Telephone: (312) 337-7700
Email: mattm@goldmclaw.com
willt@goldmclaw.com
About Mountain Sports
Mountain Sports LLC, doing business as Bob's Stores, Eastern
Mountain Sports, EMS, and Sport Chalet, is a sporting goods, hobby
and musical instrument retailer.
Mountain Sports LLC and its affiliates sought relief under Chapter
11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No.
24-11385) on June 18, 2024. In the petitions filed by David Barton,
authorized representative, Mountain Sports disclosed between $10
million and $50 million in both assets and liabilities.
Judge Mary F. Walrath oversees the cases.
The Debtors tapped Goldstein & McClintock LLLP as counsel and
Silverman Consulting as financial advisor.
The Office of the United States Trustee for the District of
Delaware appointed an official committee of unsecured creditors.
The committee tapped Lowenstein Sandler, LLP as bankruptcy counsel
and Morris James LLP as Delaware counsel.
MP PPH: Liquidating Trustee Hires Arthur Lander as Accountant
-------------------------------------------------------------
Marc Albert, the liquidating trustee in the Chapter 11 case of MP
PPH, LLC, seeks approval from the U.S. Bankruptcy Court for the
District of Columbia to employ Arthur Lander, CPA, PC as his
accountant.
The firm will provide these services:
(a) compile books and records;
(b) prepare and file all necessary tax returns on behalf of
the trust;
(c) advise the liquidating trustee of his duties and
responsibilities under the Internal Revenue Code;
(d) work with the liquidating trustee in assessing the
estate's financial condition; and
(e) other matters that arise in the administration of this
estate in bankruptcy relating to accounting matters.
The firm's professionals will be paid at these hourly rates:
Arthur Lander, CPA $560
Chris Mueller $240
Scott Johnson $170
Bookkeeper $85
Mr. Lander disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The professional can be reached at:
Arthur Lander, Esq.
Arthur Lander, C.P.A., P.C.
300 N. Washington St., #104
Alexandria, VA 222314
Telephone: (703) 486-0700
Facsimile: (703) 527-7207
Email: law@businesslegalservicesinc.com
About MP PPH LLC
MP PPH, LLC is a single asset real estate entity organized under
the laws of the state of Delaware.
The Debtor filed a Chapter 11 petition (Bankr. D.D.C. Case No.
23-00246) on Aug. 31, 2023, with $100 million to $500 million in
assets and $50 million to $100 million in liabilities. Michael A.
Abreu, vice president of operations, signed the petition.
Judge Elizabeth L. Gunn oversees the case.
The Debtor tapped Marc E. Albert, Esq., at Stinson LLP as
bankruptcy counsel; Lewis Brisbois Bisgaard & Smith, LLP and
NixonPeabody, LLP as special counsels; and Noble Realty Advisors,
LLC as property manager.
Marc Albert is appointed as the liquidating trustee in this Chapter
11 case. The trustee tapped Arthur Lander, CPA, PC as his
accountant.
MS FREIGHT: Seeks to Use Cash Collateral
----------------------------------------
MS Freight Co., Inc. asked the U.S. Bankruptcy Court for the
Northern District of Mississippi for authority to use cash
collateral and provide adequate protection.
Pre-petition, MS Freight Co. obtained secured financing from Red
Iron Acceptance, LLC for certain inventory pursuant to an Inventory
Security Agreement dated August 21, 2023. Red Iron's security
interest in the Collateral is perfected by the filing of a UCC-1
financing statement. As of the Petition Date, Red Iron is a secured
creditor of the company in the current principal amount of
$104,703.
As adequate protection, Red Iron will be granted a perfected
post-petition lien against the property of the company to the same
extent and with the same validity and priority as its prepetition
Hens, if any, to the extent the company's operating and use of its
property results in a decrease in Red Iron's interest in its
collateral, without the need to file or execute any documents as
may otherwise be required under applicable non-bankruptcy law.
MS Freight Co. will maintain insurance coverage for the Red Iron
Inventory in accordance with the obligations under the loan and
security documents with Red Iron.
A hearing is set for March 19.
About MS Freight Co., Inc.
MS Freight Co., Inc. filed Chapter 11 petition (Bankr. N.D. Miss.
Case No. 24-13745) on November 25, 2024, listing up to $10 million
in both assets and liabilities. Will White, president of MS Freight
Co., signed the petition.
Judge Jason D. Woodard oversees the case.
Craig M. Geno, Esq., at the Law Offices of Craig M. Geno, PLLC,
represents the Debtor as bankruptcy counsel.
Red Iron, as lender, is represented by:
P. Garner Vance, Esq.
Bradley Arant Boult Cummings, LLP
One Jackson Place
188 E. Capitol Street, Suite 1000
P.O. Box 1789 Jackson, MS 39215-1789
Telephone: 601-948-8000
Facsimile: 601-948-3000
Email: gvance@bradley.com
NATUS MEDICAL: S&P Alters Outlook to Stable, Affirms 'B' ICR
------------------------------------------------------------
S&P Global Ratings revised its outlook to stable from negative and
affirmed all its ratings on Natus Medical Inc. (now doing business
as Natus Neuro), including its 'B' issuer credit rating.
The stable outlook reflects its expectation that Natus' operating
performance will benefit from an improving demand environment and
recent cost actions. It also reflects its expectation for S&P
Global Ratings-adjusted leverage of 4.5x-5.5x over the next year.
Natus Neuro has completed the sale of its Sensory business to
certain affiliates of Archimed SAS.
The subordinated convertible note issued by its parent company,
which S&P previously included in its calculation of adjusted debt,
was converted to equity as part of the transaction.
Following the transaction, Natus' S&P Global Ratings-adjusted
leverage declined to about 5.5x and S&P anticipates that debt
repayment, using proceeds from the Sensory sale, will further
reduce its leverage.
S&P said, "We forecast S&P Global Ratings-adjusted leverage
declining to the mid-4x area in 2025. Pro forma for the
transaction, we expect Natus' adjusted leverage will be about 5.5x,
down from 8.9x as of Sept. 30, 2024, and 5.8x as of Dec. 31, 2024.
The conversion of the parent company's convertible notes in January
contributed about two turns of deleveraging, fully offsetting lost
EBITDA from the Sensory sale. Still, improved operating performance
also contributed, and we expect modest EBITDA growth to contribute
about 0.3x to deleveraging in 2025 as the company realizes benefits
from recent cost actions and more focused post-sale operations."
At the same time, management has communicated its intention to
repay senior secured debt (a combination of the outstanding
revolving credit facility balance and term loan principal) in the
first quarter of 2025 using the proceeds from the Sensory sale.
Although S&P's base case scenario assumes this discretionary debt
repayment is completed, it believes the company would still sustain
credit metrics appropriate for the 'B' issuer-level rating absent
its completion.
The sale of the Sensory business improves Natus' margin profile but
reduces its scale and product diversity. The remaining business,
Natus Neuro, will focus on the design, manufacturing, and
distribution of neurodiagnostic devices. The segment delivered
improved EBITDA margins in 2024, which are also stronger than the
previous consolidated business. S&P said, "Although we view the
higher margins as a relative strength, the company's reduced scope
and product diversity increases its revenue concentration in
neurodiagnostic devices, leaving the company more exposed to
idiosyncratic risk. In 2024, Natus contended with softening demand
for its EEG equipment as medical providers reigned in capital
expenditures in the wake of higher financing costs. Although
purchasing patterns have improved modestly in recent quarters, we
believe elevated base rates will continue to weigh on demand. We
forecast modest revenue growth between 2%-3% in 2025, primarily
driven by new product launches."
S&P said, "We expect Natus will improve its free operating cash
flow (FOCF) and maintain adequate liquidity over the next 12-18
months. The company generated modest FOCF in 2024, in line with our
expectations, and had about $40 million of cash and $10 million of
availability under its $50 million revolver as of Dec. 31. While we
forecast break-even reported FOCF in 2025, which is burdened by
non-recurring costs related to the sale of Sensory, we expect a
material improvement to about $15 million-$20 million of FOCF in
2026, primarily due to lower interest expense and the roll-off of
non-recurring costs.
"Given our forecast for modestly improving EBITDA and cash flow, we
expect the company will maintain sufficient liquidity to cover its
fixed costs by 2x, including $40 million-$45 million in interest
expense, $4 million in term loan amortization, and between $10
million and $15 million of capital expenditures (capex). We expect
the company will generally maintain a minimum cash balance of $20
million and sufficient revolver capacity as it navigates a still
recovering macroeconomic environment for medical device demand and
risk associated with new product launches. With the revolver
maturing in 2027 and the term loan in 2029, we believe the company
has ample maturity runway to pursue its growth strategy, which we
expect will include bolt-on acquisitions to augment the growth of
its existing portfolio that use the revolver for funding.
"The stable outlook reflects our expectation that Natus' operating
performance will benefit from an improving demand environment and
recent cost actions. It also reflects our expectation for S&P
Global Ratings-adjusted leverage of 4.5x-5.5x over the next year."
S&P could lower the rating if it believed the company would sustain
adjusted leverage above 6x or reported FOCF to debt below 5%. This
could likely occur if the company experienced:
-- Extended periods of weaker demand for its neurology equipment
-- Execution missteps associated with new product launches, or
-- An aggressive acquisition strategy that constrained margin
expansion and cash flow generation.
S&P said, "Although unlikely over the next 12 months, we could
raise the rating if we believed the company would sustain adjusted
leverage below 4.5x and reported FOCF to debt above 7%. Given the
company's financial sponsor ownership, we believe it would likely
prioritize shareholder-friendly activities over further
deleveraging."
NB STRANDS: Unsecured Creditors to be Paid in Full in Plan
----------------------------------------------------------
NB Strands, LLC filed with the U.S. Bankruptcy Court for the
Central District of California filed with the U.S. Bankruptcy Court
for the Central District of California an Amended Disclosure
Statement describing Chapter 11 Plan.
The is a Delaware limited liability company formed to develop
Debtor's Property located in the exclusive, ocean-view coastal
community known as The Strand.
The Debtor's sole business is the construction of a 6-bedroom, 8
bath single family residence on the Property ("Project"). Debtor is
managed by Brian Nelson and its only member is the Delaware limited
liability company Versity Investments, LLC. Mr. Nelson, Mr. Blake
Wettengel, and Ms. Tanya Muro all claim a membership interest in
Versity, and, like Debtor, Versity is managed by Mr. Nelson.
The Debtor estimates that on the Petition Date, the Property had an
"as is" value of approximately $14,898,450, leaving an equity
cushion of at least $7,597,480.46 after the payment of non-insider
creditors. It is important to note, however, that Debtor believes
that the current $14.9 million "as is" value for the Property and
the estimated $23.9 to $24.7 million completed value for the
Property can only be achieved with the resources available to
Debtor as part of the Versity/Crew Investment Portfolio.
The Debtor's access to these resources will allow Debtor to
mitigate risk factors normally associated with the sale of property
under construction, and in the event of a liquidation, the maximum
value that could be achieved for the Property would be much lower.
Under the Plan, the Debtor has until June 30, 2025 (the "Financing
Deadline") to obtain third-party financing in an amount sufficient
to pay Class 1 creditors and complete the Project. If that fails,
Debtor must pursue an "as is" sale of the property that closes
within 12 months of the Effective Date.
If financing is secured, the Plan contemplates a sale of Debtor's
real property located at 11 Beach View Avenue, Dana Point,
California 92626 ("Property") after Debtor completes its
"Project"— construction of a 6-bedroom, 8-bath single family
residence on Debtor's Property. This "Completed Project Sale" must
occur no later than December 30, 2026.
Class 3 consists of general unsecured claims (claims that are not
entitled to priority payment under the Bankruptcy Code and that
tare not secured by the Property). Class 3 is divided into two
subclasses: Class 3A and Class 3B. Class 3A consists of general
unsecured claims that do not qualify for treatment as Class 3B
claims. Class 3B consists of non-priority, general unsecured claims
allowed in an amount equal to or less than $2,000. Under the Plan,
general unsecured claims will be paid in full with interest. Class
3A claims will be paid from either an As Is Sale of the Property or
from a sale after Debtor's Project is complete. Class 3B claims are
be paid on the Effective Date first from the Post-Confirmation
Operating Facility.
Class 4 consists of Subordinated Insider Claims. Class 4 contains
claims held by entities with whom Debtor has a special relationship
with and are insiders of Debtor as defined by the Bankruptcy Code.
Class 4 creditors will be paid at Debtor's discretion in full with
interest after all other creditors have been paid all amounts due
under the Plan.
Class 5 consists of Interest Holders. Interests means ownership
interests in Debtor, in this case, Versity's membership interest.
This class remains unchanged under the plan unless otherwise stated
in the Plan or Disclosure Statement.
Payments due on the Effective Date will be funded from the Post
Confirmation Operating Facility. Future payments will come from
either a third-party refinancing or proceeds from the sale of the
Property. Debtor will act as the Disbursing Agent under the Plan,
making all required distributions, which must occur within 15 days
of the due date provided for in the Plan.
A full-text copy of the Amended Disclosure Statement dated January
29, 2025 is available at https://urlcurt.com/u?l=EMRDAc from
PacerMonitor.com at no charge.
Proposed Attorneys for the Debtor:
Paul J. Leeds, Esq.
Meredith King, Esq.
Franklin Soto Leeds, LLP
444 West C Street, Suite 300
San Diego, CA 92101
Telephone: (619) 872-2520
Facsimile: (619) 566-0221
Email: pleeds@fsl.law
mking@fsl.law
About NB Strands
NB Strands, LLC is a Delaware limited liability company formed to
develop a Property located in the exclusive, ocean-view coastal
community known as The Strand.
The Debtor filed Chapter 11 petition (Bankr. C.D. Cal. Case No.
24-12640) on October 16, 2024, with $10 million to $50 million in
both assets and liabilities.
Judge Scott C. Clarkson oversees the case.
Franklin Soto Leeds, LLP is the Debtor's legal counsel.
NEW JERSEY ORTHOPAEDIC: Case Summary & 20 Top Unsecured Creditors
-----------------------------------------------------------------
Debtor: New Jersey Orthopaedic Institute LLC
504 Valley Road
Suite 200
Wayne, NJ 07470
Business Description: New Jersey Orthopaedic Institute (NJOI),
provides specialized care in orthopaedics
and sports medicine, offering cutting-edge
treatments to patients of all ages. The
institute serves a diverse range of
patients, including athletes and community
members, and is the team physician for
several local high schools and universities.
NJOI specializes in a wide range of
orthopedic procedures, including joint
replacements for the shoulder, hip, and
knee, as well as the treatment of complex
orthopedic trauma and sports medicine
conditions affecting the shoulder, elbow,
wrist, hand, hip, knee, ankle, and foot.
With six locations and a multilingual staff,
NJOI focuses on education and patient-
centered care to improve quality of life and
help patients return to daily activities.
Chapter 11 Petition Date: February 10, 2025
Court: United States Bankruptcy Court
District of New Jersey
Case No.: 25-11370
Judge: Hon. John K Sherwood
Debtor's Counsel: Stephen B. Ravin, Esq.
SAUL EWING LLP
1037 Raymond Blvd.
Suite 1520
Newark, NJ 07102
Tel: (973) 286-6714
Email: stephen.ravin@saul.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Vincent McInerney as sole member.
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/K3JMONY/New_Jersey_Orthopaedic_Institute__njbke-25-11370__0001.0.pdf?mcid=tGE4TAMA
NORTHERN HOSPITAL: S&P Cuts 2017 Bond Rating to 'B', On Watch Neg.
------------------------------------------------------------------
S&P Global Ratings lowered its long-term rating on Northern
Hospital District of Surry County (NHDSC), N.C.'s (d/b/a Northern
Regional Hospital) series 2017 revenue bonds three notches to 'B'
from 'BB', and placed the rating on CreditWatch with negative
implications.
"The lower rating is the result of continued deterioration in
NHDSC's financial profile resulting in an expected violation of its
debt service coverage (DSC) and days' cash on hand (DCOH) covenants
in fiscal 2024 (ended Sept. 30)," said S&P Global Ratings credit
analyst John Kennedy. However, the hospital is currently in the
process of securing a waiver from the majority bondholder.
"The CreditWatch placement reflects uncertainty regarding the
waiver process and potential for further liquidity pressures,"
added Mr. Kennedy, "and reflects our view that there is a
one-in-two chance the rating could be lowered over the next 90
days. We could lower the rating, potentially by multiple notches,
if covenant issues prompt severe liquidity pressures via
acceleration or additional restrictions on reserves. Even if a
waiver is secured, further decline in unrestricted reserves could
also warrant a lower rating."
Pledged revenue of the hospital secures the bonds.
NORTHLANDS ORTHOPAEDIC: Case Summary & Four Unsecured Creditors
---------------------------------------------------------------
Debtor: Northlands Orthopaedic Institute LLC
504 Valley Road
Suite 200
Wayne, NJ 07470
Business Description: The Debtor, through its affiliate New Jersey
Orthopaedic Institute (NJOI), provides
specialized care in orthopaedics and sports
medicine, offering cutting-edge treatments
to patients of all ages. The institute
serves a diverse range of patients,
including athletes and community members,
and is the team physician for several local
high schools and universities. NJOI
specializes in a wide range of orthopedic
procedures, including joint replacements for
the shoulder, hip, and knee, as well as the
treatment of complex orthopedic trauma and
sports medicine conditions affecting the
shoulder, elbow, wrist, hand, hip, knee,
ankle, and foot. With six locations and a
multilingual staff, NJOI focuses on
education and patient-centered care to
improve quality of life and help patients
return to daily activities.
Chapter 11 Petition Date: February 10, 2025
Court: United States Bankruptcy Court
District of New Jersey
Case No.: 25-11372
Judge: Hon. John K Sherwood
Debtor's Counsel: Stephen B. Ravin, Esq.
SAUL EWING LLP
1037 Raymond Blvd.
Suite 1520
Newark, NJ 07102
Tel: (973) 286-6714
E-mail: stephen.ravin@saul.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Vincent McInerney as sole member.
A full-text copy of the petition, which includes a list of the
Debtor's four unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/LCEK7LI/Northlands_Orthopaedic_Institute__njbke-25-11372__0001.0.pdf?mcid=tGE4TAMA
NUTRACAP HOLDINGS: Hires Interactive Accountants as Accountant
--------------------------------------------------------------
Nutracap Holdings, LLC seeks approval from the U.S. Bankruptcy
Court for the Northern District of Georgia to employ Interactive
Accountants, LLC as its accountant.
Interactive will provide these services:
(a) provide ordinary course bookkeeping services;
(b) assist the Debtor in preparing and filing its tax
returns;
(c) analyze financial data and prepare financial reports as
necessary to comply with orders of the court and requests from the
U.S. Trustee and other parties-in-interest; and
(d) provide other essential accounting duties necessary to
ensure the accuracy of information presented to the court and
parties-in-interest in this case.
The firm will be paid at a flat fee of $6,000 per month.
Matthew Shiebler, CPA, president of Interactive Accountants,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Matthew Shiebler, CPA
Interactive Accountants LLC
88180 NW 36th Street, Suite 327
Doral, FL 33166
About Nutracap Holdings
Nutracap Holdings, LLC is a manufacturer of nutraceuticals and
dietary supplements in Norcross, Ga.
Nutracap Holdings sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-50430) on January 14,
2025, with up to $50 million in both assets and liabilities. Marcos
Fabio Lopes e Lima, chief executive officer of Nutracap Holdings,
signed the petition.
Judge Lisa Ritchey Craig oversees the case.
The Debtor tapped William Rountree, Esq., at Rountree, Leitman,
Klein & Geer, LLC as counsel and Interactive Accountants, LLC as
accountant.
ORTLEY BEACH: Hires Broege Nueman Fischer & Shaver as Counsel
-------------------------------------------------------------
Ortley Beach House LLC seeks approval from the U.S. Bankruptcy
Court for the District of New Jersey to employ Broege, Nuemann,
Fischer & Shaver, LLC as its counsel.
The firm will render these services:
(a) advise the Debtor with respect to its powers and duties;
(b) negotiate with creditors of the Debtor in working out an
arrangement and take the necessary legal steps in order to confirm
said arrangement;
(c) prepare on behalf of the Debtor necessary legal paers;
(d) appear before bankruptcy court and protect the interest of
the Debtor before said court and represent it in all matters
pending before the court; and
(e) perform all other legal services for the Debtor which may
be necessary herein.
The firm will be paid at these hourly rates:
Timothy Neumann, Attorney $790
Peter Broege, Attorney $450
Frank Fischer, Attorney $325
David Shaver, Attorey $450
Geoffrey Neumann, Attorney $450
Paralegals $105
Prior to petition date, the firm received a retainer of $5,000 from
the Debtor and another $5,000 shall be paid on or before March 1,
2025.
Mr. Broege disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Peter J. Broege, Esq.
Broege, Nuemann, Fischer & Shaver, LLC
25 Abe Voorhees Drive
Manasquan, NJ 09736
Telephone: (732) 223-8484
Email: pbroege@bnfsbankruptcy.com
About Ortley Beach House LLC
Ortley Beach House LLC is the fee simple owner of the property
located at 4 7th Avenue, Seaside Heights, NJ 08751, with an
estimated current value of $1.85 million, based on a market
analysis.
Ortley Beach House LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Case No. 25-11156) on February 3,
2025. In its petition, the Debtor reports total assets of
$1,850,060 and total liabilities of $1,106,808.
Honorable Bankruptcy Judge Mark Edward Hall handles the case.
Peter J. Broege, Esq., at Broege, Nuemann, Fischer & Shaver, LLC
serves as the Debtor's counsel.
PETROQUEST ENERGY: Seeks to Extend Plan Exclusivity to June 11
--------------------------------------------------------------
PetroQuest Energy, Inc., and its affiliates asked the U.S.
Bankruptcy Court for the District of Delaware to extend their
exclusivity periods to file a plan of reorganization and obtain
acceptance thereof to June 11 and August 10, 2025, respectively.
The Debtors explain that these Chapter 11 Cases involve four
different debtor-affiliated entities. The Debtors are in the midst
of multiple sales processes consisting of, among other things, oil
and gas leasehold interests, producing properties, and related
assets located across multiple states. Given the size and
complexity of these Chapter 11 Cases, terminating exclusivity would
be detrimental to an efficient resolution of these cases.
The Debtors claim that they have been primarily focused on easing
into chapter 11 and selling a large percentage of their assets to
maximize value for all stakeholders during the first several months
of these Chapter 11 Cases. Nonetheless, the Debtors, in
consultation with other relevant stakeholders, also have worked
together to determine the best path forward for resolving these
cases. The prospect of competing plans would only lead to disorder
and waste scarce estate resources, thereby ultimately diminishing
the remaining pool of value available for distribution to
creditors.
Accordingly, the requested extension is reasonable and consistent
with the efficient prosecution of these Chapter 11 Cases because it
will allow the Debtors to focus on completing the Sale Process and
also provide them with the additional time needed to develop, with
key stakeholders, a meaningful exit from these cases. Allowing the
Exclusive Periods to lapse now would defeat the purpose of section
1121 and deprive the Debtors and their creditors of an opportunity
to negotiate such exit on a consensual basis.
The Debtors assert that creditors will not be prejudiced or
pressured by the requested extension because they are in the
process of maximizing the value of their assets, for the benefit of
all creditors, and are current on all post-petition debts. Instead,
the Debtors have used the first several months of these Chapter 11
Cases to enhance the value of the estates through the Sale Process
for the benefit of all creditors, which is precisely what courts
look to determine whether creditors will be prejudiced by an
extension.
The Debtors further assert that they have reasonable prospects for
filing a viable plan. The Debtors are on the cusp monetizing the
value of a large portion of their assets for the benefit of
creditors. Subsequently, the Debtors will continue to work
constructively with key stakeholders with the goal of gaining
consensus on an exit for these cases, which may result in a chapter
11 plan. Here, as the Debtors have been focused on transitioning
into chapter 11 and the Sale Process, the extension would provide
the Debtors with precious additional time to negotiate a consensual
exit with their creditors.
Counsel for the Debtors:
COLE SCHOTZ P.C.
Patrick J. Reilley, Esq.
Melissa M. Hartlipp, Esq.
500 Delaware Avenue, Suite 1410
Wilmington, DE 19801
Telephone: (302) 652-3131
Facsimile: (302) 652-3117
Email: preilley@coleschotz.com
mhartlipp@coleschotz.com
-and-
Daniel F.X. Geoghan, Esq.
Jacob S. Frumkin, Esq.
Daniel J. Harris, Esq.
1325 Avenue of the Americas, 19th Floor
New York, NY 10019
Telephone: (212) 752-8000
Facsimile: (212) 752-8393
Email: dgeoghan@coleschotz.com
jfrumkin@coleschotz.com
dharris@coleschotz.com
About PetroQuest Energy
PetroQuest Energy Inc. is an oil and gas exploration company in
Lafayette, La.
PetroQuest Energy sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 24-12609) on November 13,
2024. In its petition, the Debtor reported assets between $100,000
and $500,000 and liabilities of $115.5 million.
Judge Craig T. Goldblatt presides over the case.
The Debtor is represented by Patrick J. Reilley, Esq., at Cole
Schotz P.C.
PHRG INTERMEDIATE: Moody's Assigns 'B2' CFR, Outlook Stable
-----------------------------------------------------------
Moody's Ratings assigned a B2 corporate family rating and B2-PD
probability of default rating to PHRG Intermediate, LLC ("Power
Home Remodeling" or "Power Home"), an exterior remodeling company
serving 23 markets across the US. Concurrently, Moody's have
assigned B2 instrument ratings to the proposed $1 billion senior
secured term loan B due 2032 and to the $125 million senior secured
revolving credit facility (RCF) due 2030, to be borrowed by HP PHRG
Borrower, LLC, a wholly owned subsidiary of PHRG Intermediate, LLC.
The outlook is stable.
Proceeds from the transaction will be used to refinance the
company's existing $965 million seller financing and to pay related
fees and expenses.
Power Home's B2 CFR reflects Moody's expectation that the company's
operating performance will remain solid in 2025 despite Moody's
view that demand in the US residential repair and remodel market
will remain soft and only improve slightly from 2024. The rating
also reflects Moody's expectation for credit metrics to improve in
Moody's forecasted period, with both debt to EBITDA and EBITA to
interest expense near 3.5x by the end of 2025.
Governance considerations are material to the rating action. While
Moody's expect financial leverage to improve gradually over the
next two years, there is a risk of debt-funded shareholder returns
in the form of dividends, which would limit available free cash
flow.
RATINGS RATIONALE
Power Home Remodeling's B2 CFR reflects the company's position in
the repair and remodel segment, which is supported by solid
underlying long-term demand for housing improvements in the US and
which tends to be less volatile through market cycles as compared
with new housing construction. The rating benefits also from the
company's asset-lite business model, which requires minimal capital
expenditures or overhead and supports the ability to generate free
cash flow and robust EBITDA margins (close to 20% in 2023 and
2024).
Moody's expect leverage to improve to 3.6x debt to EBITDA and
interest coverage to 3.6x by year-end 2025 as a result of continued
modest revenue growth and EBITDA margins sustained around 20%.
Moody's forecast considers the company's current order backlog and
maturation of recently opened territories.
Constraining rating factors include the relatively high pro-forma
leverage and high historical earnings volatility, partially as a
result of supply chain disruptions during the COVID-19 pandemic.
Moody's note that earnings during the pandemic were also impacted
by the company shutting down operations for 100 days. Power Home's
supplier concentration is high, with about 70% of product purchases
coming from two suppliers. Power Home is one of the largest
customers for most of its suppliers which provides efficiencies of
scale and helps counterbalance some of these risks. In addition,
the rating is constrained by some regional concentration in the
Northeast and Midwest, which can cause earnings volatility due to
inclement weather. The company has continued to grow its presence
in southern and western markets, including in Texas and Florida.
Moody's expect Power Home's liquidity to be good over the next 12
to 18 months. Liquidity is supported by $97 million of cash on the
balance sheet as of September 30, 2024 and the expectation of full
availability under the new $125 million revolver. The revolver is
subject to a springing first lien net leverage ratio covenant set
at 6.5x, and will only be tested when borrowings under the revolver
exceeds 40% of the total commitment. Moody's does not expect the
company to trigger the covenant over the next 12 to 18 months.
Alternative liquidity sources are limited as the majority of the
company's assets are encumbered by secured debt.
The B2 rating on the company's term loan and revolver is at the
same level as the CFR and Power Home's capital structure does not
include any other debt instruments.
Marketing terms for the new credit facilities (final terms may
differ materially) include the following: Incremental pari passu
debt capacity up to the greater of $310 million or 100% of
consolidated EBITDA, plus unlimited amounts subject to a 3.25x
first lien debt incurrence ratio. There is an inside maturity
sublimit up to the greater of $310 million and 100% consolidated
EBITDA. There are no "blocker" provisions which prohibit the
transfer of specified assets to unrestricted subsidiaries. There
are no express protective provisions prohibiting an up-tiering
transaction. Amounts up to 200% of unused capacity from the builder
basket and certain RP carve-outs may be reallocated to incur debt.
The stable outlook reflects Moody's expectation that Power Home can
sustain current margins in a modest growth environment, which
should support debt to EBITDA below 4.0x and interest coverage
around 3.5x. Moody's also expect that Power Home will maintain good
liquidity.
ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
Governance considerations are material to Power Home's rating.
Governance factors Moody's consider for Power Home include
relatively high closing financial leverage, risk of shareholder
returns in the form of dividends, with the company expected to pay
out a regular but modest distribution to its shareholders to cover
tax liabilities, which will be funded with free cash flow. The
company has funded discretionary one-time shareholder dividends
with debt in the past, and has a track record of repaying this
debt, and Moody's expects this trend to continue. Governance
considerations also reflect Power Home's board structure that does
not include any independent members.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could upgrade Power Home's rating if the company
demonstrates greater earnings stability, which would also be
reflected in debt to EBITDA being sustained below 4.5x and EBITA to
interest expense near 3.0x. An upgrade would also require
maintenance of a conservative financial policy, including a
disciplined approach to shareholder returns, and good liquidity
profile.
Moody's could downgrade the rating in case of an erosion in
operating performance, if debt to EBITDA trends above 6.0x, EBITA
to interest expense falls below 2.0x or if the company experiences
a weakening in its liquidity profile. The ratings could also be
downgraded if the company engages in aggressive financial policies
including debt-funded acquisitions or material shareholder
returns.
Power Home Remodeling, headquartered in Philadelphia, PA, is an
exterior remodeling company serving 23 markets across the US
Harvest Partners LP is the company's financial sponsor. Revenue for
the fiscal year ending December 2024 was about $1.4 billion.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
PHUNWARE INC: Appoints Jeremy Krol to Chief Operating Officer Role
------------------------------------------------------------------
Phunware Inc. filed a Form 8-K with the Securities and Exchange
Commission to announce the appointment of Mr. Jeremy Krol, 47, as
its Chief Operating Officer, effective Jan. 31, 2025.
In connection with this, the Company entered into a Confidential
Executive Employment Agreement with Mr. Krol, dated Jan. 31, 2025,
under which he will serve as executive vice president and chief
operating officer of the Company. The Employment Agreement
provides that Mr. Krol's employer of record for purposes of
administering his salary and employment benefits is Oyster HR. Inc,
a Canadian Company. The Employment Agreement has an indefinite
term, subject to termination by either party. The Company or Mr.
Krol may terminate the Employment Agreement at any time with or
without cause, provided that Mr. Krol shall provide at least 30
calendar days' written notice to the Company if for good reason.
The Employment Agreement includes non-competition and
non-solicitation covenants applicable during and for up to one year
following Mr. Krol's employment; provided however, the
non-competition covenant is shortened to three months in the event
that Mr. Krol's employment is terminated without cause.
The Employment Agreement provides for an annual base salary of
C$429,270, a sign-on bonus of C$8,943.13, and a target annual cash
discretionary bonus to be between 20% and 150% of the annual base
salary, with the actual award to be determined by the Company or
the Board of Directors in its sole discretion based on factors
including the strength of Mr. Krol's performance and the
performance of the Company.
Furthermore, as inducement for Mr. Krol to accept employment with
the Company and enter into the Employment Agreement, within 60
calendar days of the date of the Employment Agreement, the Company
will provide Mr. Krol a one-time grant of restricted stock units in
the Company. The restricted stock units granted to Mr. Krol will
be subject to a separate award agreement, which will outline the
specifics of such grant, including but not limited to, the vesting
schedule, forfeiture for cause provisions, the Company's buyback
rights and other restrictions and terms. In the discretion of the
Company's Board or compensation committee, such restricted stock
unit award may either be granted under the Company's 2018 Equity
Incentive Plan or may be issued as a non-plan inducement award, as
described in Nasdaq Listing Rule 5635(c)(4).
The Employment Agreement further provides that, if Mr. Krol's
employment is terminated by the Company without "cause" or by Mr.
Krol for "good reason," in connection with a change of control,
subject to his execution of a release of claims in favor of the
Company, he will receive certain accrued benefits and immediate
vesting of 100% of the restricted stock unit award. If Mr. Krol's
employment is terminated for "cause" at any time or if Mr. Krol
resigns or otherwise terminates or leaves his employment with the
Company at any time for any reason (other than for "good reason"),
Mr. Krol is only entitled to certain accrued benefits.
Mr. Krol, age 47, has served as a sub-contractor to Switch Advisory
Group since June 2024, in which he provided consulting services to
the Company, including but not limited to fractional chief
operating officer services. From 2019 to 2024, Mr. Krol served as
a startup advisor for Platform Calgary, which is a technology
accelerator hub for technology startups. Mr. Krol earned a
Bachelor of Engineering (Aerospace) degree from Carleton University
and a Master of Business Administration degree from the University
of Calgary.
About Phunware
Headquartered in Austin, Texas, Phunware, Inc. --
http://www.phunware.com-- offers a fully integrated software
platform that equips companies with the products, solutions, and
services necessary to engage, manage, and monetize their mobile
application portfolios globally at scale. The Company's platform
provides the entire mobile lifecycle of applications, media and
data in one login through one procurement relationship.
Phunware reported a net loss of $52.78 in 2023, a net loss of
$50.89 million in 2022, a net loss of $53.52 million in 2021, and a
net loss of $22.20 million in 2020, a net loss of $12.87 million in
2019. The Company posted a net loss of $7.68 million for the nine
months ended Sept. 30, 2024.
"Our future capital requirements will depend on many factors,
including our pace of growth, subscription renewal activity, the
timing and extent of spend to support development efforts, the
expansion of sales and marketing activities and the market
acceptance of our products and services. We believe that it is
likely we will in the future enter into arrangements to acquire or
invest in complementary businesses, technologies and intellectual
property rights. We may be required to seek additional equity or
debt financing, or issue securities under our effective
registration statement...If additional financing is required from
outside sources, we may not be able to raise it on terms acceptable
to us, or at all. If we are unable to raise additional capital
when desired and/or on acceptable terms, our business, operating
results and financial condition could be adversely affected," said
Phunware in its Quarterly Report on Form 10-Q for the period ended
Sept. 30, 2024.
POET TECHNOLOGIES: Signs Deal to Develop Optical Engine for HFT
---------------------------------------------------------------
POET Technologies Inc. announced that it has signed an agreement to
develop a novel optical engine for use in a high-frequency
securities trading operation for a global capital markets firm.
High-frequency trading is a type of automated trading that uses
powerful computers to execute a large number of trades in fractions
of a second.
The multi-phase project is a pioneering effort to increase the
speed and decrease the latency inherent in current transceiver
solutions utilized by securities trading operations. The first
phase of the project will begin immediately with POET designing
prototypes of POET Optical Interposer–based transceiver engines
built to meet the customer's specification. Subsequent phases
include building additional prototypes and, if successful,
production optical engines customized for this application.
"We are delighted to have embarked on this ambitious project with a
global leader in HFT," commented Raju Kankipati, Chief Revenue
Officer of POET. "This project generates revenue for POET this year
and demonstrates the versatility of the POET Optical Interposer and
the entry into a new, related market space by the Company."
About POET Technologies Inc.
POET Technologies Inc. -- www.poet-technologies.com -- is a design
and development company offering high-speed optical modules,
optical engines, and light source products to the artificial
intelligence systems market and hyperscale data centers. POET's
photonic integration solutions are based on the POET Optical
Interposer, a novel, patented platform that allows the seamless
integration of electronic and photonic devices into a single chip
using advanced wafer-level semiconductor manufacturing techniques.
POET's Optical Interposer-based products are lower cost, consume
less power than comparable products, are smaller in size, and are
readily scalable to high production volumes. In addition to
providing high-speed (800G, 1.6T, and above) optical engines and
optical modules for AI clusters and hyperscale data centers, POET
has designed and produced novel light source products for
chip-to-chip data communication within and between AI servers, the
next frontier for solving bandwidth and latency problems in AI
systems. POET's Optical Interposer platform also solves device
integration challenges in 5G networks, machine-to-machine
communication, self-contained "Edge" computing applications, and
sensing applications, such as LIDAR systems for autonomous
vehicles. POET is headquartered in Toronto, Canada, with operations
in Allentown, PA, Shenzhen, China, and Singapore.
Hartford, Conn.-based Marcum LLP, the Company's auditor since 2009,
issued a "going concern" qualification in its report dated March
15, 2024, citing that the Company has incurred significant losses
over the past few years and needs to raise additional funds to meet
its future obligations and sustain its operations. These conditions
raise substantial doubt about the Company's ability to continue as
a going concern.
PRESSURE BIOSCIENCES: Reports $7.75 Million Net Loss for Q2 2024
----------------------------------------------------------------
Pressure Biosciences, Inc. submitted its Quarterly Report on Form
10-Q to the Securities and Exchange Commission, showing a net loss
attributable to common shareholders of $7.75 million, with total
revenue of $421,792 for the three months ending June 30, 2024.
This was an improvement compared to the net loss attributable to
common shareholders of $11.11 million and total revenue of $511,803
for the same period in 2023.
For the six months ending June 30, 2024, the Company reported a net
loss attributable to common shareholders of $16.46 million on total
revenue of $771,049, compared to a net loss attributable to common
shareholders of $18.40 million on total revenue of $1.25 million
for the six months ended June 30, 2023.
As of June 30, 2024, the Company had total assets of $6.88 million,
total liabilities of $44.11 million, and a stockholders' deficit of
$37.23 million.
The Company has incurred losses and experienced negative cash flows
from operations. As of June 30, 2024, it lacks sufficient working
capital to meet its current liabilities, which raises significant
doubt about its ability to continue as a going concern. However,
the Company has successfully raised debt and equity capital in the
past and secured further debt and equity capital after June 30,
2024. The Company continues its financing efforts to raise
additional cash through future debt and equity offerings. While it
has previously succeeded in completing financings and reducing
expenses, the Company cannot provide assurance that its future
plans to address these matters will be successful.
The full text of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/830656/000149315225005468/form10-q.htm
About Pressure Biosciences
Headquartered in Canton, Massachusetts, Pressure BioSciences, Inc.
-- http://www.pressurebiosciences.com-- develops and sells
innovative, enabling, high pressure technology-based instruments,
consumables, and services for the life sciences and other
industries worldwide. The Company's products/services are based on
three patented, high-pressure platforms: (i) Ultra Shear
Technology, (ii) BaroFold Technology, and (iii) Pressure Cycling
Technology.
Houston, Texas-based MaloneBailey, LLP, the Company's auditor since
2015, issued a "going concern" qualification in its report June 7,
2024. The report cited that the Company has suffered recurring
losses from operations and has a working capital deficit that
raises substantial doubt about its ability to continue as a going
concern.
During the year ended Dec. 31, 2023, the Company recorded a net
loss available to common shareholders of $35,202,434, as compared
with $17,803,953 for the corresponding period in 2022. The Company
said it expects to continue to incur operating losses until sales
increase substantially.
PRIME HARVEST: Seeks to Sell Red River Farm
-------------------------------------------
Jim L. Parrack, appointed Chapter 11 Trustee of Prime Harvest Inc.,
seeks permission from the U.S. Bankruptcy Court for the Western
District of Oklahoma, to sell its personal property, free and clear
of liens, interests, and encumbrances.
The Debtor owns certain rural farm/ranch land in Detroit, Red River
County, Texas on which the Debtor was constructing a slaughterhouse
and meat processing facility, along with other improvements. The
Debtor proceeded with construction, using certain parolee labor
provided by a non-Debtor non-profit affiliate (but paid by the
Debtor) until the appointment of Trustee.
The Debtor also owns certain personal property and equipment.
The Trustee indicates that the Assets may prove attractive to
potential buyers in the area where the Assets are located and
elsewhere. To ensure that the Assets are sold for the highest or
otherwise best bid, the Trustee, in consultation with other
professionals, has developed sale procedures to govern the sale of
the Assets.
The Trustee proposes a timeline for the sale process of the
Property and to serve the Sale Notice within five business days
after entry of this Sale Procedures Order, or as soon as reasonably
practicable.
The facilities located on the Real Property are incomplete and the
Trustee asserts that the Estate lacks sufficient funds or access to
funds to complete construction. The Assets are not being used in
production or the operation of the business, and the Estate is
without sufficient resources to bring the Estate into a going
concern business.
The Trustee intends to engage in a coordinated marketing effort of
the Real Property of the Debtor and an online and live auction of
the Personal Property culminating in the sale of the Assets.
The Trustee commissions Price Edwards and Phillip Dodd of Arrowhead
Land Company as brokers for the Real Property, and Nutt
Auctioneering as auctioneer of the Personal Property.
Legacy Bank has filed first and prior mortgages, liens, and
security interests in all of the Assets.
The Trustee seeks to engage in a marketing process culminating in
the private sale of the Real Property of the Debtor and culminating
in the Auction of the Personal Property of the Debtor.
The Sale of the Assets shall be on an "as is, where is" basis and
without representations or warranties of any kind, nature, or
description.
The Trustee believes that the Sale Procedures will provide for an
orderly, uniform, and appropriately competitive process through
which interested parties may submit offers to purchase the Assets.
About Prime Harvest Inc.
Prime Harvest, Inc., sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Okla. Case No. 24-10841) on April 1,
2024. In the petition signed by Calvin Burgess, president, the
Debtor disclosed up to $100 million in assets and up to $50 million
in liabilities.
Judge Sarah A Hall presides over the case.
Stephen J. Moriarty, Esq., at Fellers, Snider, Blankenship, Bailey
& Tippens, PC, serves as the Debtor's legal counsel.
PROMENADE NORTH: Court Extends Cash Collateral Access to Feb. 28
----------------------------------------------------------------
Promenade North, LLC received interim approval from the U.S.
Bankruptcy Court for the Northern District of Georgia, Atlanta
Division, to use cash collateral until Feb. 28.
The company requires the use of cash collateral to manage and pay
the expenses necessary for the continued operation of its
commercial building located in Roswell, Ga.
iBorrow Credit, LP asserts an interest in the company's cash
collateral. The creditor alleges that Promenade North is indebted
to it in the original face amount of $15.6 million, exclusive of
any payments on the indebtedness and any post-lending accrual of
interest, advances, and fees. It alleges that the indebtedness is
secured by real and personal property owned by the company.
As protection, iBorrow Credit was granted replacement liens on all
assets (other than Chapter 5 avoidance action claims) acquired by
Promenade North after the petition date.
A final hearing will be held on Feb. 25.
iBorrow Credit can be reached through its counsel:
Sean Kulka, Esq.
Arnall Golden Gregory, LLP
171 17th Street, N.W., Suite 2100
Atlanta, GA 30363-1031
(404) 873-7004
Email: Sean.Kulka@agg.com
About Promenade North
Promenade North, LLC, a company in Cumming, Ga., filed Chapter 11
petition (Bankr. N.D. Ga. Case No. 25-51152) on February 3, 2025,
listing between $10 million and $50 million in both assets and
liabilities. Hamidou Sacko, managing member of Promenade North,
signed the petition.
Judge Paul Baisier oversees the case.
David L. Bury, Jr., Esq., at Stone & Baxter, LLP, represents the
Debtor as legal counsel.
R2O GROUP: Voluntary Chapter 11 Case Summary
--------------------------------------------
Debtor: The R2O Group LLC
1815 Lakewood Rd.
Toms River, NJ 08755
Chapter 11 Petition Date: February 9, 2025
Court: United States Bankruptcy Court
District of New Jersey
Case No.: 25-11337
Judge: Hon. Michael B Kaplan
Debtor's
Bankruptcy
Counsel: Rocco A. Cavaliere, Esq.
TARTER KRINSKY & DROGIN LLP
1350 Broadway
11th Floor
New York, NY 10018
Tel: (212) 216-8000
E-mail: rcavaliere@tarterkrinsky.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Yisroel Tabi as president of TRG Group
Inc., sole member of the Debtor.
The Debtor did not provide 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/SPR2HYI/The_R2O_Group_LLC__njbke-25-11337__0001.0.pdf?mcid=tGE4TAMA
RE WEALTH: Seeks Cash Collateral Access
---------------------------------------
RE Wealth Advisors, LLC asked the U.S. Bankruptcy Court for the
Southern District of Florida, Fort Lauderdale Division, for
authority to use cash collateral.
The company requires the use of cash in order to fund its
operations and continue to insure and maintain the property located
at 37280 Okeechobee Avenue, Canal Point, Fla.; and 12215 Lakeshore
Drive, Canal Point, Fla.
Previously, the company became unable to service the note held by
creditors Benfam Holdings PR LLC, Carlos M. Benitez, ACSF Holding
LLC, Mesa Redonda Investments LLC, and H Mooney Investments Ltd.
that is secured by a mortgage on the property, and that is
potentially secured by an assignment of rents recorded in the
Official Records of Palm Beach County.
Benham initiated a foreclosure proceeding in the Circuit Court of
the Fifteenth Judicial Circuit in and for Palm Beach County, Fla.,
Case No. 50-2023-016662-XXXA-MB. The foreclosure case proceeded
through judgment, which was entered by the State Court on October
29, 2024, in the amount of $2.3 million.
A foreclosure sale was held on the morning of December 11, 2024, at
which Benfam submitted the winning bid. However, prior to the State
Court Clerk's issuance of the Certificate of Sale, RE Wealth
Advisors filed its bankruptcy petition.
As adequate protection, RE Wealth Advisors will grant Benfam
replacement liens of the same extent, validity, and priority as its
pre-bankruptcy security interests.
RE Wealth Advisors projects $29,005 in income and $22,607 in total
expenses for one month.
About RE Wealth Advisors
RE Wealth Advisors, LLC filed Chapter 11 petition (Bankr. S.D. Fla.
Case No. 24-22910) on December 11, 2024, listing between $1 million
and $10 million in both assets and liabilities. Patrick Dean,
manager of RE Wealth Advisors, signed the petition.
Judge Scott M. Grossman oversees the case.
Bradley S. Shraiberg, Esq., at Shraiberg Page PA, represents the
Debtor as legal counsel.
RED CLOAK: Seeks to Extend Plan Filing Deadline to May 1
--------------------------------------------------------
Red Cloak Wood Designs, Inc., asked the U.S. Bankruptcy Court for
the Western District of Pennsylvania to extend its period to file a
chapter 11 plan of reorganization and disclosure statement, and
obtain acceptance thereof to May 1 and August 1, 2025,
respectively.
The Debtor's business has a cyclical nature. Custom orders tend to
follow the weather. As the external temperature supports outdoor
activities, the orders increase until the fall season, when outdoor
activities decrease.
The Debtor explains that the time it spent in this bankruptcy has
been in its slower season. The Debtor does not have a sufficient
historical record in this bankruptcy to support necessary
projections and to support a plan of reorganization at this point.
Additionally, the Debtor is working on revising previous Monthly
Operating Reports with the Court that are due on January 31, 2025.
Red Cloak Wood Designs, Inc., is represented by:
Donald R. Calaiaro, Esq.
938 Penn Avenue, Suite 501
Pittsburgh, PA 15222-3708
Tel: (412) 232-0930
Fax: (412) 232-3858
Email: dcalaiaro@c-vlaw.com
About Red Cloak Wood Designs, Inc.
Red Cloak Wood Designs, Inc., filed a Chapter 11 bankruptcy
petition (Bankr. W.D. Pa. Case No. 24-21905-GLT) on August 2, 2024.
The Debtor hires Calaiaro Valencik as counsel.
SAFE & GREEN: Inks Deal With NAHD to Merge With Olenox, Machfu
--------------------------------------------------------------
Safe & Green Holdings Corp. announced that it has entered into a
definitive Agreement and Plan of Merger with New Asia Holdings,
Inc., which owns Olenox Corp. and Machfu.com, which are both
innovative leaders in the energy and industrial IoT sectors.
Under the terms of the agreement, Safe & Green will acquire 100% of
the outstanding securities of NAHD in exchange for the issuance of
non-voting convertible preferred shares of the Company. This
transaction marks a significant step forward in Safe & Green's
commitment to expanding its capabilities in sustainable energy and
smart industrial automation.
As merger consideration, the Company will issue 4,000,000 Series A
non-voting convertible preferred shares of the Company, par value
$1.00, to the NAHD shareholders. Each Preferred Share has the right
to convert into shares of common stock of the Company at a ratio of
1 to 15 (each Preferred Share will convert into 15 shares of common
stock of the Company), provided, however, that such conversion is
subject to the approval of a majority of the Company's common
shareholders.
The Merger Agreement contain customary representations, warranties,
and covenants. The Merger Agreement also contains conditions to the
completion of the Merger including the filing of the articles of
incorporation and/or organization for the merger subsidiaries, and
the adoption of board resolutions and/or sole member resolutions by
the merger subsidiaries approving the Merger. There are no
assurances that the parties will satisfy all of the conditions to
the merger.
The parties expect to complete these transactions as soon as
practicable following the satisfaction or waiver of the condition
to the Merger.
Required NAHD Approvals
The affirmative vote of the holders of a majority of NAHD
outstanding shares of common stock. Following the entry into the
Merger Agreement, all required approvals of the NAHD shareholders
described above has been obtained.
Olenox is an advanced energy company with three vertically
integrated business units: Oil & Gas Production, Energy Services,
and Energy Technologies. The company specializes in acquiring and
revitalizing underdeveloped energy assets, leveraging proprietary
plasma pulse and ultrasonic cleaning tools to enhance production
efficiency while reducing environmental impact. Olenox's strategic
focus on distressed oil and gas fields in Texas, Oklahoma, and
Kansas has resulted in significant production growth, positioning
the Company for long-term success in the energy sector.
Machfu is a leader in industrial IoT, with its flagship
MachGateway® and Edge-to-Enterprise software solutions enabling
seamless connectivity between legacy systems and modern digital
infrastructure. With over 20,000 gateways deployed worldwide,
Machfu's technology enhances operational efficiency, predictive
maintenance, and real-time analytics for industries including oil &
gas, utilities, and manufacturing.
Following the merger, Safe & Green plans to integrate Olenox's
energy assets and Machfu's IoT capabilities with its existing
operations. The Company will leverage its modular fabrication
expertise and existing infrastructure, including its Waldron
facility in Durant, Oklahoma, to support new initiatives in
sustainable energy and industrial automation. Management
anticipates that these synergies will drive revenue growth, improve
operational efficiencies, and create new opportunities for value
creation.
"We believe that the combination of Olenox and Machfu with Safe &
Green will create a diversified, high-growth company at the
intersection of energy and technology," said Michael McLaren, CEO
of Safe & Green and founder of Olenox. "Olenox's growing oil and
gas portfolio, combined with Machfu's cutting-edge IoT solutions,
will provide a robust foundation for expansion into sustainable
energy, automation, and digital transformation."
The merger is structured as a two-step sign-and-close transaction.
The conversion of the shares of preferred stock issued to NAHD
shareholders into shares of common stock of the Company is subject
to the approval of a majority of the Company's common shareholders,
approval by Nasdaq, and regulatory approvals. Further details
regarding the transaction are available in the Company's Form 8-K
available at:
https://tinyurl.com/3ap2jrpy
About Safe & Green
Safe & Green Holdings Corp. is a modular solutions company
headquartered in Miami, Florida. The company specializes in the
development, design, and fabrication of modular structures,
focusing on safe and green solutions across various industries.
The Woodlands, Texas-based M&K CPAS, PLLC, the Company's auditor
since 2024, issued a "going concern" qualification in its report
dated May 7, 2024, citing that the Company experienced net losses
since inception, negative working capital, and negative cash flows
from operations, which raise substantial doubt about the Company's
ability to continue as a going concern.
Safe & Green Holdings reported net losses of $26,757,906 and
$7,089,242 for the fiscal years ended December 31, 2023, and 2022,
respectively. As of June 30, 2024, Safe & Green Holdings had
$20,928,509 in total assets, $25,717,784 in total liabilities, and
$4,789,275 in total stockholders' deficit.
SAFE & GREEN: Merger With New Asia Holdings Boosts Equity by $60MM
------------------------------------------------------------------
Safe & Green Holdings Corp. disclosed in a Form 8-K Report filed
with the U.S. Securities and Exchange Commission that on February
3, 2025, it announced that it had entered into an Agreement and
Plan of Merger between the Company and New Asia Holdings Inc., a
Nevada corporation, pursuant to which NAHD will be merged into a
subsidiary of the Company. Following the Merger, NAHD and its
subsidiaries Olenox Corp., a Nevada corporation, and Machfu Inc., a
Delaware corporation, will be indirect, wholly owned subsidiaries
of the Company.
As a result of the transaction, which positively impacts
stockholders' equity by approximately $60 million, as of the date
of this filing the Company believes it has stockholders' equity of
at least $2.5 million as required by Nasdaq Listing Rule
5550(b)(1). The Company is awaiting Nasdaq's confirmation that it
has evidenced compliance with the Rule.
About Safe & Green
Safe & Green Holdings Corp. is a modular solutions company
headquartered in Miami, Florida. The company specializes in the
development, design, and fabrication of modular structures,
focusing on safe and green solutions across various industries.
The Woodlands, Texas-based M&K CPAS, PLLC, the Company's auditor
since 2024, issued a "going concern" qualification in its report
dated May 7, 2024, citing that the Company experienced net losses
since inception, negative working capital, and negative cash flows
from operations, which raise substantial doubt about the Company's
ability to continue as a going concern.
Safe & Green Holdings reported net losses of $26,757,906 and
$7,089,242 for the fiscal years ended December 31, 2023, and 2022,
respectively. As of June 30, 2024, Safe & Green Holdings had
$20,928,509 in total assets, $25,717,784 in total liabilities, and
$4,789,275 in total stockholders' deficit.
SALT GROUP: Voluntary Chapter 11 Case Summary
---------------------------------------------
Debtor: Salt Group Las Olas LLC
Salt Seven
500 East Las Olas Blvd.
Fort Lauderdale, FL 33301
Business Description: Salt Group, operating as Salt Seven, is an
upscale restaurant in Fort Lauderdale,
Florida, featuring a trendy riverside
terrace. The venue serves modern American
cuisine and signature cocktails in a chic,
sophisticated setting.
Chapter 11 Petition Date: February 10, 2025
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 25-11397
Judge: Hon. Scott M Grossman
Debtor's Counsel: Ivan Reich, Esq.
NASON YEAGER GERSON HARRIS & FUMERO, P.A.
3001 PGA Boulevard, Ste 305
Palm Beach Gardens, FL 33410
Tel: 561-227-4562
E-mail: ireich@nasonyeager.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by John Kostoglou as authorized
representative of the Debtor.
The Debtor did not provide 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/RS7FNSI/Salt_Group_Las_Olas_LLC__flsbke-25-11397__0001.0.pdf?mcid=tGE4TAMA
SHARKY'S LLC: Jarrod Martin Named Subchapter V Trustee
------------------------------------------------------
The U.S. Trustee for Region 7 appointed Jarrod Martin, Esq., a
practicing attorney in Houston, as Subchapter V trustee for
Sharky's LLC.
Mr. Martin will be paid an hourly fee of $650 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Martin declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Jarrod B. Martin, Esq.
1200 Smith Street, Suite 1400
Houston, TX 77002
Phone: 713-356-1280
Email: JBM.Trustee@chamberlainlaw.com
About Sharky's LLC
Sharky's LLC, doing business as Sharky's Tavern, sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas
Case No. 25-80044) on January 30, 2025, with up to $50,000 in
assets and between $100,001 and $500,000 in liabilities.
Judge Alfredo R. Perez presides over the case.
Brandon John Tittle, Esq., at Tittle Law Group, PLLC represents the
Debtor as bankruptcy counsel.
SILVERBILLS INC: Unsecureds Will Get 0.77% of Claims in Plan
------------------------------------------------------------
Silverbills Inc. filed with the U.S. Bankruptcy Court for the
Southern District of New York a Disclosure Statement describing
Chapter 11 Plan dated January 29, 2025.
The Debtor provides concierge bill management services to its
customers. The Debtor's financial distress stems from its
relationship with creditor FIS Corp. ("FIS").
In November 2022, the Debtor entered into a contract with FIS
whereby FIS provided bill payment software, mail management and
customer service to the Debtor. Later, in June 2023, the Debtor
entered into an agreement with an FIS Subsidiary, RealNet Payments
LLC to purchase its direct-to-consumer bill pay service brand
"PayTrust".
In this chapter 11 case, including with respect to the instant
motion, the Debtor and FIS have been cooperating in an attempt to
avoid any unnecessary costs, while at the same time maintaining
their respective positions with respect to disputes involving
certain contracts involving both parties and/or the parties'
affiliates.
Class 2 consists of the holders of Allowed General Unsecured
Claims. The Debtor shall pay to holders of Class 2 General
Unsecured Claims, a distribution on a Pro Rata basis on their
Allowed Claim, on the Effective Date from the Plan Distribution
Fund, after distribution to all Unclassified Claims. The Debtor
estimates these Claims to total approximately $3,853,502.48 and the
Debtor estimates that such holders will receive approximately 0.77%
on account of their Allowed Claims.
This is an estimation which makes certain assumptions about the
resolution of the post-closing sale adjustment, claim objections
yet to be prosecuted and the amount of legal fees to be accrued to
resolve the Chapter 11 case. As such, this is not a guaranty of
recovery but only an estimation. Class 2 Claims are Impaired under
the Plan and are allowed to vote to accept or reject the Plan.
Class 3 consists of the Holder of Interests in the Debtor. Class 3
Holder of Interests shall retain his/her interests in the Debtor
and are not expected to receive any monetary distributions under
the Plan. Class 3 Interests are unimpaired and deemed to accept the
Plan.
The Plan shall be funded by the Distribution Fund. Such assets
shall constitute the Plan Distribution Fund, which shall be
distributed by the Debtor in accordance with the terms of the
Plan.
The hearing at which the Court will consider final approval of this
Disclosure Statement and determine whether to confirm the Plan,
will take place on March 25th, 2025 at 10:00 a.m., before the
Honorable Philip Bentley, U.S. Bankruptcy Judge at the United
States Bankruptcy Court, Southern District of New York (Manhattan
Division) at Courtroom No. 601.
Ballots must be received by March 11, 2025 by 5:00 p.m. or it will
not be counted. Objections to final approval of the Disclosure
Statement and confirmation of the Plan must be filed by March 11,
2025 at 5:00 p.m.
A full-text copy of the Disclosure Statement dated January 29, 2025
is available at https://urlcurt.com/u?l=DIlCsK from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
Dawn Kirby, Esq.
Kirby Aisner & Curley, LLP
700 White Plains Road, Suite 237
Scarsdale, NY 10583
Telephone: (914) 401-9500
Email: Dkirby@kacllp.com
About Silverbills Inc.
Silverbills Inc. is revolutionizing household bills using secure
proprietary software and personal support. SilverBills manages the
entire bill paying process: receiving, analyzing, storing, and
paying.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-11323) on July 30,
2024, with $3,343 in assets and $1,380,812 in liabilities.
Nathaniel Eberhart, CEO and director, signed the petition.
Judge Philip Bentley presides over the case.
Dawn Kirby, at KIRBY AISNER & CURLEY LLP, is the Debtor's legal
counsel.
SIYATA MOBILE: Updates on Upcoming Press Conference
---------------------------------------------------
Siyata Mobile Inc. announced that the online press conference to
showcase significant developments will take place as soon as
practicable.
"We apologize for the delay in our press conference and want to
thank our shareholders for their patience and continued support,"
said Marc Seelenfreund, CEO of Siyata Mobile. "When hosting a press
conference, it's critical that we ensure all communications are
accurate, compliant, and reflective of the company's progress.
Transparency is a priority for us and we are committed to
delivering updates as soon as possible."
Shareholders are encouraged to stay engaged with Siyata's press
releases and notifications to ensure they receive real time
information about the press conference.
About Siyata Mobile
British Columbia, Canada-based Siyata Mobile Inc. is a B2B global
developer and vendor of next-generation Push-To-Talk over Cellular
handsets and accessories. Its portfolio of rugged PTT handsets and
accessories enables first responders and enterprise workers to
instantly communicate over a nationwide cellular network of choice,
to increase situational awareness and save lives. Police, fire,
and ambulance organizations as well as schools, utilities, security
companies, hospitals, waste management companies, resorts and many
other organizations use Siyata PTT handsets and accessories.
Jerusalem, Israel-based Barzily and Co., CPA's, the Company's
auditor since 2023, issued a "going concern" qualification in its
report dated April 3, 2024, citing that the Company has suffered
recurring losses from operations, high accumulated losses,
outstanding bank loan and an outstanding balance in respect of the
sale of future receipts, that raise substantial doubt about its
ability to continue as a going concern.
The Company incurred a net loss for the year ended Dec. 31, 2023 of
$12,931,794 as compared to a net loss of $15,299,251 in the prior
year.
SKY GARDENS: Seeks Approval to Hire Seese PA as Bankruptcy Counsel
------------------------------------------------------------------
Sky Gardens Residence, LLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of Florida to employ Seese, PA as
counsel.
The firm will render these services:
(a) advise the Debtor generally regarding matters of
bankruptcy law in connection with this Chapter 11 case;
(b) advise the Debtor of the requirements of the Bankruptcy
Code, the Federal Rules of Bankruptcy Procedure, applicable
bankruptcy rules pertaining to the administration of the case and
U.S. Trustee Guidelines related to the daily operation of its
business and administration of this estate.
(c) prepare legal papers necessary in connection with the
administration of the estate;
(d) negotiate with creditors, prepare and seek confirmation of
a plan of reorganization and related documents, and assist the
Debtor with implementation of any plan;
(e) review executory contracts and unexpired leases;
(f) render such other advice and services as the Debtor may
require in this case.
Michael Seese, Esq., the primary attorney in this representation
will be paid at his hourly rate of $600 plus expenses.
The firm received a general retainer of $50,000 from the Debtor.
Mr. Seese disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Michael D. Seese, Esq.
Seese, PA
101 N.E. 3rd Avenue, Suite 1500
Ft. Lauderdale, FL 33301
Telephone: (954) 745-5897
Email: mseese@seeselaw.com
About Sky Gardens Residences LLC
Sky Gardens Residences LLC is a single asset real estate debtor, as
defined in 11 U.S.C. Section 101(51B).
Sky Gardens Residences LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-11136) on
January 31, 2025. In its petition, the Debtor reports estimated
assets between $10 million and $50 million and estimated
liabilities between $1 million and $10 million.
Honorable Bankruptcy Judge Laurel M. Isicoff handles the case.
Michael D. Seese, Esq., at Seese, PA represents the Debtor as
counsel.
SNAP INC: S&P Assigns 'B+' Issuer Credit Rating, Outlook Stable
---------------------------------------------------------------
S&P Global Ratings assigned its 'B+' issuer credit rating to
U.S.-based technology, media and communications company Snap Inc.
S&P said, "We also assigned a 'B+' issue-level rating and '3'
recovery rating to the company's proposed $700 million senior
unsecured notes.
"The stable outlook reflects our expectation Snap will continue to
grow revenue and EBITDA through a combination of user growth and
improved user monetization such that we expect S&P Global
Ratings-adjusted gross leverage and free operating cash flow (FOCF)
to debt to improve toward mid-5x and 9% by the end of 2025."
The 'B+' issuer credit rating reflects significant competition
within the media and communications industry in which Snap
operates, (with relatively low barriers to entry), lagging
monetization of its user base relative to peers (particularly in
the U.S.), limited targeted audience of users primarily between the
ages of 18 and 34, currently low S&P Global Ratings-adjusted EBITDA
margins below 10%, and elevated gross leverage above 5x. This is
partially offset by Snap's strong brand recognition, large active
user base, and exposure to secular industry tailwinds in digital
advertising. The rating is also underpinned by its strong liquidity
with elevated cash and marketable securities of about $3.4
billion.
Snap faces strong competition for users' time and is exposed to
risk from evolving user preferences. Snap is continuously competing
for both advertising dollars as well as users' screen time, against
peers such as Meta, TikTok, X, Reddit, Pinterest, among others. S&P
said, "Some of these peers, particularly Meta, have significantly
greater financial resources than Snap, that in our view, allow them
to adapt to changing trends quicker and given them greater ability
to invest resources into emerging technology such as generative AI
and machine learning capabilities. There are limited- to
no-switching costs for users to change the platforms on which they
spend their time. Barriers to entry in the media and communications
industry are modest and user preferences continue to evolve. Snap's
monetization per user and advertising growth has lagged some of its
peers. Snap's U.S. user base (its most valuable in terms of average
revenue per user [ARPU]) has remained flat over the past three
years at about 100 million daily active users (DAUs), with DAU
growth primarily coming from outside the U.S. We believe this is
due to users above the age of 34 ageing out of the platform and
seeking alternative forms of communication and content. Although
Snap has been able to replace declining user cohorts with new
younger cohorts, changes in consumer trends could limit its future
ability to do so, as younger users tend to be less brand loyal to
any one particular platform."
Snap's digital advertising is highly cyclical but more flexible
than traditional advertising media. Snap derives 90%-95% of its
revenue from cyclical digital advertising. Digital advertising
offers greater capabilities to target customers and induce behavior
as digital campaigns are more data-driven, which S&P thinks
indicates they will more likely lead to a customer response.
However, advertising is highly cyclical because advertisers use
expectations for consumer spending to determine their advertising
budgets. Digital advertising, especially auction-based programmatic
advertising is sold in real time and tends to react more quickly to
changes in consumer sentiment. This makes it very easy for
advertisers to scale back or halt their ad campaigns, whereas it
takes much longer to cancel traditional campaigns such as a TV
campaign. Across the digital ad industry brand advertising
continues to lag growth in performance-based advertising as higher
value is placed on trackable actions such as sales. Snap has
historically had greater exposure to brand advertising, although
this has since reversed, as Snap has made a concentrated effort to
grow its performance driven direct-response advertising over the
last few years.
S&P said, "We expect leverage to improve toward mid-5x and free
operating cash flow (FOCF) to debt to 9% by the end of 2025. We
expect Snap will generate around $750 million in adjusted EBITDA
and $290 million of reported FOCF in 2025, significantly improved
from 2024 levels of $513 million and $219 million, respectively. We
expect growth will be driven by increased market penetration
outside the U.S. as well as increased monetization opportunities
following the retooling of its ad platform and concentrated effort
on changing its advertising mix to more high-value
performance-based advertising. Earnings improvement will also be
driven by workforce reductions enacted in 2024, resulting in a 10%
headcount reduction, as well as the associated roll off of about
$70 million in expenses tied to the workforce restructuring. We
expect leverage to further improve toward 4x in 2026 as the company
continues to improve monetization rates and grow its international
user base. We view it unlikely management would engage in any large
debt-funded acquisitions, shareholder returns, or other leveraged
transactions given its past history." Additionally, the company
will have more than sufficient liquidity to meet its financial
obligations and any near-term volatility in the business given its
cash and marketable securities balance of about $3.4 billion as of
Dec. 31, 2024.
Snap has strong brand equity with strong growth opportunities. Snap
is one of the largest media and communications companies globally
with a strong focus on reaching users between the ages of 18 and
34, a valuable demographic to advertisers given their purchasing
power and general lack of brand loyalty. It is the second-largest
media and communications company in the U.S. after Meta in terms of
the size of its user base, but significantly larger than peers such
as Reddit, X, and Pinterest. Despite user growth being flat in the
U.S. over the past three years, its international user base has
grown nearly 60% over the same period and we believe Snap's
relatively low market penetration in markets outside the U.S.
provides additional runway for growth. S&P said, "We also expect
the company's subscription product Snapchat+, that provides
subscribers access to exclusive, experimental, and pre-release
features, will support growth. Although it is only a small
percentage of revenue (5%-10%), it has steadily grown subscribers
and revenue over the past few years. The company's augmented
reality hardware, such as its spectacles eyewear, also has growth
potential, although we do not expect it to be profitable over the
next several years."
Changes to data privacy and technology remain a key risk for Snap.
Snap operates in an industry that is continuously evolving where
changes to data and technology remains a key risk. For example, in
2022 and 2023, Snap's S&P Global Ratings-adjusted EBITDA fell about
50% and 36%, respectively, when Apple's app tracking transparency
(ATT) update in 2021 imposed heightened restrictions on Snap's
access and use of user data by allowing users to more easily
opt-out of tracking of activity across devices. Snap did not have
large enough cohorts of first party or contextual data to
counteract the changes. Over the past three years, it retooled its
ad platform and invested significantly in machine learning and
generative AI capabilities, which helped to reaccelerate growth and
increase S&P Global Ratings-adjusted EBITDA in 2024 toward 2021
levels. While difficult to predict, future changes in data privacy
or technology could pressure the company's operations or
profitability.
S&P said, "The stable outlook reflects our expectation Snap will
continue to grow revenue and EBITDA through a combination of user
growth and improved user monetization such that we expect S&P
Global Ratings-adjusted gross leverage and FOCF to debt to improve
toward mid-5x and 9% by the end of 2025.
"We could lower our rating on Snap if we expect its FOCF to debt
coverage to decline below 5% on a sustained basis or it
significantly depletes its cash and marketable securities position
below $3 billion eroding its strong liquidity position." This could
occur if:
-- Its competition intensified thereby leading to a loss of users
and/or advertisers leading to declining revenue and negative cash
flow; or
-- Macroeconomic conditions deteriorate, resulting in sustained
revenue and EBITDA losses; or
-- Changes in data privacy or regulation limit the company's
ability to effectively target consumers for its advertising
partners; or
-- Management adopted a more aggressive financial policy enacting
large debt financed acquisitions or shareholder returns.
Although unlikely within the next 12 months, S&P could raise its
-- It established a track record of maintaining leverage below
4.5x and FOCF to debt above 10%; and
-- The company continues to expand its EBITDA margins through
growing its userbase and improving user monetization.
SOUTH REGENCY: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: South Regency Shops, LLC
9296 Metcalf Avenue
Overland Park, KS 66212
Business Description: South Regency Shops, LLC owns a shopping
center situated at 9296 Metcalf Avenue in
Overland Park, Kansas, with an estimated
current value of $810,000.
Chapter 11 Petition Date: February 10, 2025
Court: United States Bankruptcy Court
District of Kansas
Case No.: 25-20140
Judge: Hon. Dale L Somers
Debtor's Counsel: Colin Gotham, Esq.
EVANS & MULLINIX, P.A.
7225 Renner Road, Suite 200
Shawnee, KS 66217
Tel: (913) 962-8700
Fax: (913) 962-8701
E-mail: cgotham@emlawkc.com
Total Assets: $817,347
Total Liabilities: $2,578,359
The petition was signed by Veeral Bhoot as managing member.
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/DEHMIKQ/South_Regency_Shops_LLC__ksbke-25-20140__0001.0.pdf?mcid=tGE4TAMA
SPHERE 3D: CEO Patricia Trompeter Takes Leave; CFO Named Acting CEO
-------------------------------------------------------------------
Sphere 3D Corp. announced that President and CEO Patricia Trompeter
will be taking a temporary medical leave of absence to address an
existing health condition. She is expected to be on leave for
approximately four months.
During this time, Ms. Trompeter expects to remain engaged in key
strategic decision-making as she continues serving on the Board of
Directors, ensuring that her vision and leadership continue to
guide the Company. Chief Financial Officer Kurt Kalbfleisch will
assume the role of acting CEO, overseeing daily operations and
maintaining business continuity.
"I have full confidence that our team will continue executing our
strategy seamlessly while I am on leave. Their dedication,
expertise, and commitment to our shared vision ensure we remain on
track for success," said Ms. Trompeter. "I am dedicated to
assisting with business matters during this period as my health
permits and look forward to resuming my full duties in due
course."
Mr. Kalbfleisch has served as Senior Vice President, Chief
Financial Officer, and Secretary of the Company since December 1,
2014, and is well-versed in all aspects of the business. The Board
of Directors has expressed full confidence in the management team's
ability to execute the Company's strategic initiatives and maintain
momentum during this period.
"We remain committed to executing our strategy and driving
continued progress," said Duncan McEwan, Chairman of the Board.
About Sphere 3D
Sphere 3D Corp. (NASDAQ: ANY) -- http://www.Sphere3D.com/-- is a
cryptocurrency miner growing its industrial-scale Bitcoin mining
operation through the capital-efficient procurement of
next-generation mining equipment and partnering with best-in-class
data center operators. Headquartered in Stamford, CT, Sphere 3D is
dedicated to growing shareholder value while honoring its
commitment to strict environmental, social, and governance
standards.
Houston, Texas-based MaloneBailey, LLP, the Company's auditor since
2022, issued a "going concern" qualification in its report dated
March 13, 2024. The report emphasizes that the Company has
suffered recurring losses from operations and does not expect to
have sufficient working capital to fund its operations, which
raises substantial doubt about its ability to continue as a going
concern.
STONEYBROOK FAMILY: Jerrett McConnell Named Subchapter V Trustee
----------------------------------------------------------------
The U.S. Trustee for Region 21 appointed Jerrett McConnell, Esq.,
at McConnell Law Group, P.A. as Subchapter V trustee for
Stoneybrook Family Dentistry.
Mr. McConnell will be paid an hourly fee of $350 for his services
as Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. McConnell declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Jerrett M. McConnell, Esq.
McConnell Law Group, P.A.
6100 Greenland Rd., Unit 603
Jacksonville, FL 32258
Phone: (904) 570-9180
Email: info@mcconnelllawgroup.com
About Stoneybrook Family Dentistry
Stoneybrook Family Dentistry is a dental services provider,
offering everything from general and cosmetic dentistry to
specialized treatments like sleep apnea care and wholistic
wellness. With advanced technology such as digital X-rays and CEREC
same-day crowns, they prioritize patient comfort and education.
Stoneybrook operates under the names Stoneybrook Dental and
Wholistic Dental.
Stoneybrook sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-00604) on January 31,
2025, with $2,573,305 in assets and $2,911,682 in liabilities. Dr.
Wendi K. Wardlaw, president, signed the petition.
Judge Tiffany P. Geyer presides over the case.
Paul N. Mascia, Esq., at Nardella & Nardella, PLLC represents the
Debtor as legal counsel.
TBB COPPELL: Seeks Chapter 11 Bankruptcy Protection in Texas
------------------------------------------------------------
On February 6, 2025, TBB Coppell LLC filed Chapter 11 protection
in the U.S. Bankruptcy Court for the Northern District of Texas.
According to court filing, the Debtor reports between $1 million
and $10 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About TBB Coppell LLC
TBB Coppell LLC doing business as The Biscuit Bar, is a fast casual
restaurant offering made-to-order biscuit sandwiches, tots, salads,
and desserts, with a focus on Southern-inspired flavors. Their menu
offers a mix of savory and sweet dishes, all made from scratch
daily. It caters to breakfast, lunch, dinner, and late-night
cravings, with a variety of toppings and craft drinks on tap. The
Biscuit Bar launched its first location in Spring 2018 at The
Boardwalk @ Granite Park in Plano, TX. Today, the brand has
expanded to six locations: Plano, Deep Ellum, Coppell, North
Arlington, the Stockyards in Fort Worth, and Abilene.
TBB Coppell LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-30472) on February
6, 2025. In its petition, the Debtor reports estimated assets
between $50,000 and $100,000 and estimated liabilities between $1
million and $10 million.
The Debtor is represented by:
Thomas D. Berghman, Esq.
MUNSCH HARDT KOPF & HARR, P.C.
500 N. Akard St., Ste. 4000
Dallas, TX 75201
Tel: 214-855-7500
E-mail: tberghman@munsch.com
TEMPLETON REAGAN: Seeks to Hire McBryan as Bankruptcy Counsel
-------------------------------------------------------------
Templeton Reagan Puritan Mill, LLC seeks approval from the U.S.
Bankruptcy Court for the Northern District of Georgia to employ
McBryan, LLC as counsel.
The firm will provide these services:
(a) prepare necessary legal papers;
(b) assist in examination of the claims of creditors;
(c) advise the Debtor of its rights, duties and obligations;
(d) consult with the Debtor and represent with respect to a
Chapter 11 plan;
(e) perform legal services incidental and necessary to the
day-to-day operations of the Debtor's business; and
(f) take any and all other action incident to the proper
preservation and administration of the Debtor's estate and
business.
The firm's counsel and staff will be paid at these hourly rate:
Attorneys $250 - $505
Paralegals $185
Louis McBryan, Esq., attorney at McBryan LLC, disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Louis G. McBryan, Esq.
McBryan LLC
6849 Peachtree Dunwoody Rd
Building B-3, Suite 100
Atlanta, GA 30328
Telephone: (678) 733-9322
Facsimile: (678) 498-2709
Email: lmcbryan@mcbryanlaw.com
About Templeton Reagan Puritan Mill
Templeton Reagan Puritan Mill LLC is involved in the real estate
sector. The Debtor is the sole owner of the property at 810 Bay
Point Drive, Madeira Beach, Florida, which is currently valued at
approximately $1.38 million.
Templeton Reagan Puritan Mill LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-51015) on
January 31, 2025. In its petition, the Debtor reports total assets
of $1,940,662 and total liabilities of $1,213,123.
Louis G. McBryan, Esq., at McBryan LLC serves as the Debtor's
counsel.
TEMPLETON REAGAN: Taps Premier Sotheby's International as Broker
----------------------------------------------------------------
Templeton Reagan Puritan Mill, LLC seeks approval from the U.S.
Bankruptcy Court for the Northern District of Georgia to employ
Premier Sotheby's International Realty as real estate broker.
The Debtor needs a broker to market and sell its property located
at 810 Bay Point Drive, Madeira Beach, Florida.
The firm will receive a commission of 4 percent of the property's
gross sale price.
Sarah Wood, a real estate agent at Premier Sotheby's International
Realty, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Sarah Wood
Premier Sotheby's International Realty
19139 Gulf Blvd.
Indian Shores, FL 33785
Telephone: (727) 595-1604
Email: sarah.wood@sothebysrealty.com
About Templeton Reagan Puritan Mill
Templeton Reagan Puritan Mill LLC is involved in the real estate
sector. The Debtor is the sole owner of the property at 810 Bay
Point Drive, Madeira Beach, Florida, which is currently valued at
approximately $1.38 million.
Templeton Reagan Puritan Mill LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-51015) on
January 31, 2025. In its petition, the Debtor reports total assets
of $1,940,662 and total liabilities of $1,213,123.
Louis G. McBryan, Esq., at McBryan LLC serves as the Debtor's
counsel.
TEXAS WHEEL: Seeks to Hire The Lane Law Firm as Bankruptcy Counsel
------------------------------------------------------------------
Texas Wheel Repair Express 360 LLC seeks approval from the U.S.
Bankruptcy Court for the Northern District of Texas to employ The
Lane Law Firm, PLLC as counsel.
The firm will render these services:
(a) assist, advise and represent the Debtor relative to the
administration of the Chapter 11 case;
(b) assist, advise and represent the Debtor in analyzing its
assets and liabilities, investigate the extent and validity of lien
and claims, and participate in and review any proposed asset sales
or dispositions;
(c) attend meetings and negotiate with the representatives of
the secured creditors;
(d) assist the Debtor in the preparation, analysis and
negotiation of any plan of reorganization and disclosure statement
accompanying any plan of reorganization;
(e) take all necessary action to protect and preserve the
interests of the Debtor;
(f) appear, as appropriate, before this court, the appellate
courts, and other courts in which matters may be heard and protect
the interests of Debtor before said courts and the United States
Trustee; and
(g) perform all other necessary legal services in this case.
The firm's counsel will be paid at these hourly rates:
Robert Lane, Partner $595
Joshua Gordon, Managing Associate $550
Associate Attorney $500
Paralegals $250
In addition, the firm will seek reimbursement for expenses
incurred.
From October 9, 2024, to January 7, 2025, the firm received a total
retainer of $35,000 from the Debtor.
Mr. Lane disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Robert C. Lane, Esq.
The Lane Law Firm, PLLC
6200 Savoy, Suite 1150
Houston, TX 77036
Telephone: (713) 595-8200
Facsimile: (713) 595-8201
Email: notifications@lanelaw.com
About Texas Wheel Repair Express 360
Texas Wheel Repair Express 360 LLC specializes in the
straightening, repair, replacement, and refinishing of aluminum and
alloy wheels. The company provides services to fix common wheel
damage such as curb scrapes, scratches, chips, and potholes,
restoring wheels to near-new condition. By offering specialized
solutions like powder coating, machining, welding, and
straightening, Wheel Repair 360 helps businesses like new and used
car dealerships, body shops, tire stores, and mechanic shops save
both time and money.
Texas Wheel Repair Express 360 LLC sought relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-30409) on
February 3, 2025. In its petition, the Debtor reports total assets
of $338,188 and total debts of $1,101,411.
Honorable Bankruptcy Judge Scott W. Everett handles the case.
Robert C. Lane, Esq., at The Lane Law Firm, PLLC serves as the
Debtor's counsel.
TONIX PHARMACEUTICALS: Posts $126.6M Loss in Prelim 2024 Results
----------------------------------------------------------------
Tonix Pharmaceuticals Holding Corp. disclosed in a Form 8-K Report
filed with the U.S. Securities and Exchange Commission, selected
preliminary operating results for the year ended December 31, 2024,
and certain preliminary financial condition information as of
December 31, 2024, as set forth below:
The Company had approximately $98.8 million in cash and cash
equivalents as of December 31, 2024, and there were approximately
559,044,486 shares of common stock outstanding as of January 31,
2025.
* The Company's net cash used in operating activities for the
year ended December 31, 2024 was approximately $60.9 million,
compared to $102.0 million for the year ended December 31, 2023.
* The Company's capital expenditures for the year ended
December 31, 2024 was approximately $0.1, compared to $29.1 million
for the year ended December 31, 2023.
* The Company's net operating loss for the year ended December
31, 2024 was approximately $126.6 million, which includes non-cash
impairment charges of approximately $59.0 million, compared to
$116.7 million for the year ended December 31, 2023.
* The Company's net revenue from the sale of its marketed
products for the year ended December 31, 2024 was approximately
$10.1 million, compared to $7.8 million for the year ended December
31, 2023.
The Company believes that its cash resources at December 31, 2024,
and the gross proceeds of approximately $30.4 million that it
raised from sales under its at-the-market facility in the first
quarter of 2025, will meet its operating and capital expenditure
requirements into the first quarter of 2026.
About Tonix Pharmaceuticals
Chatham, N.J.-based Tonix Pharmaceuticals Holding Corp., through
its wholly owned subsidiary Tonix Pharmaceuticals, Inc., is a fully
integrated biopharmaceutical company focused on developing and
commercializing therapeutics to treat and prevent human disease and
alleviate suffering.
As of September 30, 2024, Tonix had $95 million in total assets,
$20.8 million in total liabilities, and $74.2 million in total
equity.
Going Concern
The Company cautioned in its Form 10-Q report for the quarter ended
March 31, 2024, that there is substantial doubt about its ability
to continue as a going concern. The Company has suffered recurring
losses from operations and negative cash flows from operating
activities. As of March 31, 2024, the Company had working capital
of approximately $9.6 million and an accumulated deficit of
approximately $615.6 million. The Company held cash and cash
equivalents of approximately $7 million as of March 31, 2024.
During the fourth quarter of 2023, the Company engaged CBRE, an
international real estate brokerage firm, to potentially find a
strategic partner for or buyer of its Advanced Development Center
in North Dartmouth, Massachusetts, to align with its current
business objectives and priorities. As of March 31, 2024, the
Company does not have a commitment in place to sell the building.
The Company believes that its cash resources at March 31, 2024, and
the gross proceeds of $4.4 million raised from an equity offering
in the second quarter of 2024, will not meet its operating and
capital expenditure requirements through the second quarter of
2025.
TONIX PHARMACEUTICALS: Terminates Loan Agreement With $9.6M Payoff
------------------------------------------------------------------
Tonix Pharmaceuticals Holding Corp. disclosed in a Form 8-K Report
filed with the U.S. Securities and Exchange Commission that on
February 3, 2025, the Loan and Guaranty Agreement, dated as of
December 8, 2023, by and among the Company, Tonix Pharmaceuticals,
Inc., a wholly-owned subsidiary of the Company, Krele LLC, a
wholly-owned subsidiary of Tonix, Jenner Institute, LLC, a
wholly-owned subsidiary of Tonix, Tonix R&D Center, LLC, a
wholly-owned subsidiary of Tonix (collectively, the "Loan
Parties"), JGB Capital, LP, JGB Partners, LP, JGB (Cayman) Cornish
Rock Ltd., and JGB Collateral LLC, as administrative agent and
collateral agent for the Lenders, and each of the other Loan
Documents, was terminated upon receipt by the Loan Parties of a
payoff amount of $9.6 million from the Company.
The Loan Agreement provided for a term loan in the original
aggregate principal amount of $11.0 million in accordance with the
terms of the Loan Agreement. The pay-off amount paid by the Company
in connection with the termination of the Loan Agreement was
pursuant to a pay-off letter with the Lenders and Agent and
includes a prepayment fee of $1 million in accordance with the
terms and provisions of the Loan Agreement.
About Tonix Pharmaceuticals
Chatham, N.J.-based Tonix Pharmaceuticals Holding Corp., through
its wholly owned subsidiary Tonix Pharmaceuticals, Inc., is a fully
integrated biopharmaceutical company focused on developing and
commercializing therapeutics to treat and prevent human disease and
alleviate suffering.
As of September 30, 2024, Tonix had $95 million in total assets,
$20.8 million in total liabilities, and $74.2 million in total
equity.
Going Concern
The Company cautioned in its Form 10-Q report for the quarter ended
March 31, 2024, that there is substantial doubt about its ability
to continue as a going concern. The Company has suffered recurring
losses from operations and negative cash flows from operating
activities. As of March 31, 2024, the Company had working capital
of approximately $9.6 million and an accumulated deficit of
approximately $615.6 million. The Company held cash and cash
equivalents of approximately $7 million as of March 31, 2024.
During the fourth quarter of 2023, the Company engaged CBRE, an
international real estate brokerage firm, to potentially find a
strategic partner for or buyer of its Advanced Development Center
in North Dartmouth, Massachusetts, to align with its current
business objectives and priorities. As of March 31, 2024, the
Company does not have a commitment in place to sell the building.
The Company believes that its cash resources at March 31, 2024, and
the gross proceeds of $4.4 million raised from an equity offering
in the second quarter of 2024, will not meet its operating and
capital expenditure requirements through the second quarter of
2025.
TPT GLOBAL: Reports Improvement to $1.94M Net Income in Q3 2024
---------------------------------------------------------------
TPT Global Tech, Inc., submitted its Quarterly Report on Form 10-Q
to the Securities and Exchange Commission, reporting a net income
attributable to its shareholders of $1.94 million on total revenues
of $136,701 for the three months ending Sept. 30, 2024. This
represents a significant improvement compared to the same period in
2023, when the Company posted a net loss attributable to its
shareholders of $1.17 million on total revenues of $923,251.
For the nine months ending Sept. 30, 2024, the Company reported a
net income attributable to its shareholders of $3.50 million on
total revenues of $982,103, compared to a net loss attributable to
its shareholders of $3.96 million on total revenues of $3.01
million for the nine months ending Sept. 30, 2023.
As of Sept. 30, 2024, the Company had $1.16 million in total
assets, $37.43 million in total liabilities, $59.95 million in
total mezzanine equity, and a total stockholders' deficit of $96.22
million.
"Based on our financial history since inception, our auditor has
expressed substantial doubt as to our ability to continue as a
going concern. As reflected in the accompanying financial
statements, as of September 30, 2024, we had an accumulated deficit
totaling $113,785,972. This raises substantial doubts about our
ability to continue as a going concern," TPT stated in the Report.
The full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1661039/000165495425001243/tptw_10q.htm
About TPT Global Tech
TPT Global Tech, Inc., headquartered in San Diego, California,
operates as a technology-based company with divisions providing
telecommunications, medical technology and product distribution,
media content for domestic and international syndication as well as
technology solutions. The Company operates on its own proprietary
Global Digital Media TV and Telecommunications infrastructure
platform and also provide technology solutions to businesses
domestically and worldwide. The Company offers Software as a
Service (SaaS), Technology Platform as a Service (PAAS),
Cloud-based Unified Communication as a Service (UCaaS) and
carrier-grade performance and support for businesses over its
private IP MPLS fiber and wireless network in the United States.
The Company's cloud-based UCaaS services allow businesses of any
size to enjoy all the latest voice, data, media and collaboration
features in today's global technology markets. The Company also
operates as a Master Distributor for Nationwide Mobile Virtual
Network Operators (MVNO) and Independent Sales Organization (ISO)
as a Master Distributor for Pre-Paid Cellphone services, Mobile
phones, Cellphone Accessories and Global Roaming Cellphones. Visit
www.tptglobaltech.com for more information.
Draper, Utah-based Sadler, Gibb & Associates, LLC, the Company's
auditor since 2016, issued a "going concern" qualification in its
report dated May 10, 2024, citing that the Company has suffered
recurring losses from operations and has a net capital deficiency
that raise substantial doubt about its ability to continue as a
going concern.
During the year ended Dec. 31, 2023, the Company recognized a net
loss of $11,164,221 compared to $21,749,920 for the prior period.
TREES CORP: Promotes Mikayla Gilbert to Chief Financial Officer
---------------------------------------------------------------
Trees Corporation filed a Form 8-K with the Securities and Exchange
Commission, announcing the promotion of 32-year-old Mikayla Gilbert
to Chief Financial Officer, taking over from Edward Myers. The
Board also designated Ms. Gilbert as the Company's principal
financial officer and principal accounting officer. Previously,
Ms. Gilbert served as the Company's Controller. She will receive a
base salary of $120,000, with the opportunity for a discretionary
annual bonus.
Ms. Gilbert served as the Company's Controller from Oct. 6, 2023 to
Feb. 1, 2025, where she oversaw all accounting-related matters,
including cash, accounts receivable, inventory, fixed assets,
accounts payable and payroll. From July 2022 to October 2023, Ms.
Gilbert served as accounting manager for Desibl LLC, where Ms.
Gilbert oversaw all financial and accounting tasks, including
implementation of new processes and systems around billing and
invoicing for construction and design clients. Prior to that, Ms.
Gilbert served in multiple roles in the Company between July 2020
and July 2022 including staff accountant and senior accountant.
Additionally, Ms. Gilbert served as an accounting consultant for
the Company from October 2021 to October 2023, when Ms. Gilbert
returned to the Company full time as the Controller. Ms. Gilbert
holds a B.S. in Accounting from Capella University where she
graduated in 2023.
There are no family relationships between Ms. Gilbert and any
director, executive officer, or any person nominated or chosen by
the Company to become a director or executive officer.
On Feb. 1, 2025, Edward Myers resigned from his positions as chief
operating officer and interim chief financial officer of the
Company.
About Trees Corp
TREES Corporation is a cannabis retailer and cultivator in the
States of Colorado and Oregon. The Company presently operates six
cannabis dispensaries. The Company's principal business model is
to acquire, integrate and optimize cannabis companies in the retail
and cultivation segments utilizing the combined experience of
entrepreneurs and synergistic operations of its vertically
integrated network.
Salt Lake City, Utah-based Haynie & Company, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated April 10, 2024, citing 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.
The Company incurred net losses of $7.1 million and $9.5 million in
the years ended Dec. 31, 2023 and 2022, respectively, and had an
accumulated deficit of $100.5 million as of Dec. 31, 2023. The
Company had cash and cash equivalents of $1.0 million as of Dec.
31, 2023.
The Company believes that its cash and cash equivalents as of Dec.
31, 2023 will not be sufficient to fund its operating expenses and
capital expenditure requirements for at least twelve months from
the date of filing this Annual Report on Form 10-K. The Company
stated it will need additional funding to support its planned
investing activities. If the Company is unable to obtain
additional funding, it would be forced to delay, reduce, or
eliminate some or all of its planned operations and acquisition
efforts, which could adversely affect its business prospects.
TREES CORP: Signs $1.75 Million Deal to Acquire Chronic Therapy
---------------------------------------------------------------
Trees Corporation, through its subsidiary, Trees Colorado LLC,
entered into a Membership Interest Purchase Agreement with Beddor
Claude LLC, doing business as Chronic Therapy, and the equity
owners of Chronic on Jan. 31, 2025, as disclosed in a Form 8-K
filed with the Securities and Exchange Commission. Under the
Agreement, the Company decided to acquire all of the membership
interests of Chronic, principally consisting of a licensed
dispensary located in Wheat Ridge, Colorado. The purchase price
for the acquisition of Chronic is $1,750,000, of which $1,487,500
will be paid at closing, with the remaining $262,500 held back for
up to two years to satisfy indemnification obligations of Chronic
and its equity owners.
Additionally, on Jan. 31, 2025, as part of the transaction, the
Company and an affiliate of Chronic entered into a new lease for an
initial term of five years, with two additional five-year renewal
options. Base rent for the lease is $8,600 per month for the first
year, with yearly increases to $9,679 in the fifth year of the
term. The Lease provides for standard 'triple net' costs to be
borne by the Company. The commencement of the Lease will not occur
until, and is fully contingent upon, the closing of the
acquisition, and the Lease will become null and void if the closing
does not occur by June 30, 2025.
The acquisition is subject to certain conditions, including
regulatory approval of the Colorado Marijuana Enforcement
Division.
About Trees Corp
TREES Corporation is a cannabis retailer and cultivator in the
States of Colorado and Oregon. The Company presently operates six
cannabis dispensaries. The Company's principal business model is
to acquire, integrate and optimize cannabis companies in the retail
and cultivation segments utilizing the combined experience of
entrepreneurs and synergistic operations of its vertically
integrated network.
Salt Lake City, Utah-based Haynie & Company, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated April 10, 2024, citing 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.
The Company incurred net losses of $7.1 million and $9.5 million in
the years ended Dec. 31, 2023 and 2022, respectively, and had an
accumulated deficit of $100.5 million as of Dec. 31, 2023. The
Company had cash and cash equivalents of $1.0 million as of Dec.
31, 2023.
The Company believes that its cash and cash equivalents as of Dec.
31, 2023 will not be sufficient to fund its operating expenses and
capital expenditure requirements for at least twelve months from
the date of filing this Annual Report on Form 10-K. The Company
stated it will need additional funding to support its planned
investing activities. If the Company is unable to obtain
additional funding, it would be forced to delay, reduce, or
eliminate some or all of its planned operations and acquisition
efforts, which could adversely affect its business prospects.
TREVENA INC: Board Reshuffles, Katrine Sutton Becomes Consultant
----------------------------------------------------------------
Trevena, Inc. disclosed in a Form 8-K Report filed with the U.S.
Securities and Exchange Commission that in connection with ongoing
cost-cutting measures, Scott Braunstein, M.D. resigned from the
Board of Directors of the Company and the Audit Committee thereof,
effective as of January 31, 2025. The voluntary resignation of Dr.
Braunstein was not the result of any disagreement with the Company
on any matter relating to the Company's operations, policies or
practices.
In connection with the resignations, the Board decreased the size
of the Board to two members, effective upon the effectiveness of
the resignations. Following the effectiveness of the resignation,
Carrie Bourdow continues to serve as Chairman of the Board, and
Barbara Yanni continues to serve as a director on the Board.
On the same date, the Board of Directors approved the termination
of employment, without cause, of Katrine Sutton, the Company's Vice
President, Finance Planning and Analysis, effective as of January
31, 2025. The termination was in connection with cost-cutting
measures and does not involve any disagreement concerning the
Company's operations, policies or practices. Ms. Sutton will
continue to serve as the principal financial officer and principal
accounting officer following her termination of employment.
Consulting Arrangement
On February 1, 2025, the Company entered into a consulting
agreement with Ms. Sutton, pursuant to which Ms. Sutton will
provide assistance, advice and expertise on corporate finance
planning and other business topics as directed by the Company.
Pursuant to the terms of the Consulting Agreement, Ms. Sutton will
receive cash compensation at an hourly rate generally consistent
with her respective prior compensation level for services to the
Company.
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.
TURNING POINT: S&P Affirms 'B+' Rating on $300MM Sr. Secured Notes
------------------------------------------------------------------
S&P Global Ratings affirmed its 'B+' issuer credit rating on
Louisville, Ky.-based other tobacco products manufacturer,
marketer, and distributor Turning Point Brands Inc. (TPB) and
assigned its 'BB-' issue-level rating to the proposed $300 million
senior secured notes. The recovery rating is '2' which reflects
substantial recovery (70%-90%; rounded estimate 70%) in the event
of a payment default. S&P's ratings assume the transaction closes
on terms similar to what was presented to us.
S&P said, "We will withdraw our 'BB-' issue-level rating on the
$250 million senior secured notes once the transaction closes.
The stable outlook reflects our expectation for leverage of 3.1x in
2025, FOCF of at least $50 million, and modest shareholder
returns.
"We forecast S&P Global Ratings-adjusted leverage of 3.1x in 2025
compared with our previous forecast of 2.7x due to incremental debt
with the proposed transaction. Upon transaction close, TPB's
capital structure will consist of an undrawn $75 million
asset-based lending (ABL)facility and $300 million of senior
secured notes after it repaid $119 million of convertible notes
with cash on hand in July 2024. In addition, we believe the company
will finish 2024 in line with our expectations as we forecast S&P
Global Ratings-adjusted EBITDA of about $95 million in 2024. We
expect revenue growth of about 2% in 2024 following two years of
revenue declines, which is better than our expectations by about
$10 million, due to the launch of FRE oral nicotine pouches and
consumer trade-down to value brands in moist-snuff tobacco (MST)
benefiting Stoker's, as well as solid growth in Zig Zag Papers &
Wraps. These factors outweigh continued declines in loose leaf
chewing tobacco given weak secular trends and a declining Creative
Distributions Solutions (CDS) segment due to increased competition
and the proliferation of illicit vapor products. Substantially all
of the CDS segment has been contributed to a joint venture and will
be accounted for as an equity investment in 2025.
"We anticipate revenue declines about 7% in 2025 due to
contributing 100% of its interest in South Beach Brands LLC (the
subsidiary that owns and operates CDS) to General Wireless
Operations (GWO) in exchange for 49% of the issued and outstanding
GWO common stock. Excluding CDS, we forecast revenue grows 9% in
2025--outpacing category growth of 1%-2%--largely driven by
continued expansion of FRE. There is virtually no impact to EBITDA
from the CDS joint venture contribution since it contributed less
than $1 million EBITDA in 2024. As a result, we believe S&P Global
Ratings-adjusted EBITDA will grow to $101 million in 2025, or about
5%, primarily driven by continued gross margin expansion on
improved product mix through its launch of FRE, which is a premium
offering. Euromonitor projects U.S. oral nicotine pouch sales to
rise to $9 billion in 2024 from $6 billion in 2023 and reaching
$19.5 billion by 2028. This presents growth potential for TPB if it
can capture market share with FRE's higher nicotine content
offering compared with other offerings in the marketplace. We
believe the white pouch category has been successful with younger
consumers and core nicotine users looking to supplement or replace
other nicotine products (such as combustible cigarettes,
traditional oral tobacco, and e-vapor). The white pouch category
has solid growth prospects in our view given lower perceived health
risks and potentially lower regulatory threats. However, Zyn, On!,
and Velo dominate the white pouch market, and we believe it will be
difficult for TPB to gain share and distribution against these
large entrenched players, which have already established shelf
space for their leading brands in the growing oral nicotine
space."
TPB's small scale in the highly regulated tobacco industry limits
the potential for an upgrade. The company has a narrow focus in
roll-your-own and oral tobacco products, a high concentration of
niche brands, and is exposed to evolving regulatory changes by the
U.S. Food and Drug Administration (FDA) that could negatively
affect profitability and demand for its products. In addition, the
traditional oral tobacco category has experienced recent volume
declines because of shifting consumer preferences (including to
e-vaper and now nicotine pouches), increased health awareness, and
greater regulation of tobacco products. While S&P recognizes the
company's efforts to expand the business to benefit from emerging
trends, TPB remains a small player in the broader tobacco category
as it competes against well-established brands from major tobacco
companies with extensive resources, distribution networks, and
shelf space. Finally, the reduced risk profile of the oral nicotine
pouch category as well as desire for convenience among consumers
may attract traditional oral tobacco users in mass, which could
cannibalize Stoker's products.
Financial policy has become less aggressive. S&P said, "The company
paused share repurchases through 2023 and the first part of 2024 to
focus on cash generation for debt repayment, which we view as
positive for credit quality. In addition, the company publicly
communicated a leverage target of 2x-3x, which roughly equates to
S&P Global Ratings leverage between 3x and 4x (we do not net cash
against debt). Therefore, we expect the company will operate under
a more prudent financial policy to maintain S&P Global
Ratings-adjusted leverage below 4x. We continue to believe the
company will use a portion of its cash flow for share repurchases
and dividends, as it has historically done, but our base case
assumes total dividends and share repurchases will be limited to
about $15 million in 2025 and thereafter. Ultimately, we believe
the potential for large debt-financed mergers and acquisitions
(M&A) or shareholder returns has lessened for now because of
elevated prices, and the company will focus on reinvesting in the
business and continue to maintain leverage within its target."
S&P said, "We believe the weakness in the company's internal
accounting controls is being remediated. In the company's 2023 10-K
filing, management disclosed that internal control over financial
reporting was not effective as of Dec. 31, 2023, due to a material
weakness in information technology general controls (ITGCs) related
to user access and program change-management. This weakness
resulted in an adverse opinion from the independent auditor on the
effectiveness of internal controls. The deficiencies were
attributed to insufficient documentation of IT control processes
and over-reliance on certain individuals with IT expertise. To
address these issues, TPB has been working to implement a new
enterprise resource planning (ERP) system. The company has engaged
in internal testing over the past year and believes material
defects are less of a risk to operations.
"We expect stable FOCF due to the company's asset-light model.
Approximately 75% of the company's net sales are derived from
outsourced production operations, and capex historically has been
between $5 million and $8 million. As a result, the company has
consistently generated positive FOCF, and we expect it will
generate at least $50 million over the next 12 months. It is our
understanding the company sources certain items from overseas,
including cigarette papers, tubes, and injector machines from
France, as well as cigar wraps from the Dominican Republic. Swedish
Match manufactures its loose-leaf chewing tobacco, but we believe
this occurs in the U.S. Notably, the company does not outsource MST
production and manufacturing occurs in the U.S. We do not yet have
information regarding sourcing for FRE. Amid an uncertain political
landscape regarding tariffs on international imports, there is a
risk that profitability could decline if costs increase.
"The stable outlook reflects our expectation for leverage of 3.1x
in 2025, FOCF of at least $50 million, and modest shareholder
returns."
S&P could lower its rating on TPB if S&P Global Ratings-adjusted
leverage reached 5x. This could occur if:
-- TPB adopted a more aggressive financial policy, including
substantial debt-financed share repurchases or acquisitions.
-- Separately, S&P could lower its rating on TPB if S&P Global
Ratings-adjusted EBITDA significantly declined. This could occur
due to increased regulatory constraints associated with tobacco
products or greater competition from big tobacco rivals, leading to
lost market share or a limited ability to win distribution in the
traditional and alternative channels.
While unlikely over at least the next year, S&P could raise its
rating if TPB increased its scale, including revenue and EBITDA and
diversification of products and brands while maintaining S&P Global
Ratings-adjusted leverage below 4x. This could occur if TPB:
-- Captured market share and won new distribution through further
expansion into oral nicotine pouches with FRE;
-- Continued to win business in its Zig Zag segment in traditional
and alternative channels, perhaps due to tailwinds from widespread
cannabis legalization trends; and
-- Continued to expand its product and brand offering through
bolt-on, margin accretive M&A to benefit from emerging growth
opportunities.
To consider an upgrade S&P must also believe the regulatory and
competitive environment will remain at least benign.
TWENTY EIGHT: Jeffrey Piampiano Named Subchapter V Trustee
----------------------------------------------------------
The U.S. Trustee for Region 2 appointed Jeffrey Piampiano, Esq. as
Subchapter V trustee for Twenty Eight Hundred Lafayette, Inc.
Mr. Piampiano will be paid an hourly fee of $470 for his services
as Subchapter V trustee while paraprofessionals will be compensated
at $160 per hour. In addition, the Subchapter V trustee will
receive reimbursement for work-related expenses incurred.
Mr. Piampiano declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Jeffrey T. Piampiano, Esq.
Drummond Woodsum
84 Marginal Way, Suite 600
Portland, ME 04101-2480
(207) 253-0522
Email: JPiampiano@dwmlaw.com
About Twenty Eight Hundred Lafayette
Established in 1992, Twenty Eight Hundred Lafayette, Inc. is a
seafood restaurant with locations in Epping, Portsmouth, Salem, and
North Hampton (seasonal) in New Hampshire. It conducts business
under the names The Beach Plum 2 Portsmouth and The Beach Plum 3
Epping.
Twenty Eight Hundred Lafayette filed Chapter 11 petition (Bankr.
D.N.H. Case No. 25-10046) on January 27, 2025. In its petition, the
Debtor reported assets between $50,000 and $100,000 and liabilities
between $1 million and $10 million.
Judge Kimberly Bacher handles the case.
The Debtor is represented by:
Eleanor Wm. Dahar, Esq.
Victor W. Dahar Professional Association
20 Merrimack Street
Manchester, NH 03101
Tel: (603) 622-6595
Fax: (603) 647-8054
Email: vdaharpa@att.net
UNLIMITED ENTERPRISES: Gary Murphey Named Subchapter V Trustee
--------------------------------------------------------------
The U.S. Trustee for Region 21 appointed Gary Murphey of Resurgence
Financial Services, LLC as Subchapter V trustee for Unlimited
Enterprises Realty, LLC.
Mr. Murphey will be paid an hourly fee of $400 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Murphey declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Gary Murphey
Resurgence Financial Services, LLC
3330 Cumberland Blvd., Suite 500
Atlanta, GA 30330
Tel: (770) 933-6855
Email: Murphey@RFSLimited.com
About Unlimited Enterprises Realty
Unlimited Enterprises Realty, LLC operates in the residential
building construction industry.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-51194) on February 4,
2025, with $1 million to $10 million in assets and $500,000 to $1
million in liabilities. Daron Clark, manager, signed the petition.
Judge Paul Baisier presides over the case.
Theodore N. Stapleton, Esq. represents the Debtor as legal counsel.
VIEWBIX INC: Cancels Reincorporation From Delaware to Nevada
------------------------------------------------------------
Viewbix Inc. filed a Form 8-K with the Securities and Exchange
Commission to disclose that on Feb. 2, 2025, the Board of Directors
of the Company resolved to cancel all processes related to the
reincorporation of Viewbix from Delaware to Nevada, including the
withdrawal of its corporate-related action request pending with
FINRA.
About Viewbix
Headquartered in Ramat Gan, Israel, Viewbix and its subsidiaries,
Gix Media and Cortex Media Group Ltd., operate in the field of
digital advertising. The Group has two main activities that are
reported as separate operating segments: the search segment and the
digital content segment. The search segment develops a variety of
technological software solutions, which perform automation,
optimization, and monetization of internet campaigns, for the
purposes of obtaining and routing internet user traffic to its
customers. The search segment activity is conducted by Gix Media.
The digital content segment is engaged in the creation and editing
of content, in different languages, for different target audiences,
for the purposes of generating revenues from leading advertising
platforms, including Google, Facebook, Yahoo and Apple, by
utilizing such content to obtain and route internet user traffic
for its customers. The digital content segment activity is
conducted by Cortex.
Tel Aviv, Israel-based Brightman Almagor Zohar & Co., A Firm in the
Deloitte Global Network, the Company's auditor since 2012, issued a
"going concern" qualification in its report dated March 25, 2024,
citing that the Company's non-compliance with its debt covenants as
of Dec. 31, 2023 and the decrease in revenues and positive cash
flows from operations may result in the Company's inability to
repay its debt obligations during the 12-month period following the
issuance date of these financial statements. These conditions
raise a substantial doubt about the Company's ability to continue
as a going concern.
The Company recorded a net loss of $10,069,000 during the nine
months ended Sept. 30, 2024, compared to $2,209,000 in the nine
months ended Sept. 30, 2023. As of Sept. 30, 2024, the Company had
cash and cash equivalents of $1,405,000, bank loans of $5,828,000
and accumulated deficit of $19,427,000.
WCG INTERMEDIATE: S&P Alters Outlook to Positive, Affirms 'B-' ICR
------------------------------------------------------------------
S&P Global Ratings revised its outlook on clinical trials
efficiency services provider WCG Intermediate Corp to positive from
stable and affirmed its 'B-' issuer credit rating.
S&P said, "At the same time, we assigned a 'B-' issue-level rating
and '3' recovery rating to the company's new first-lien term loan
and revolving credit facility, due in 2032 and 2030, respectively.
The '3' recovery rating indicates our expectation for meaningful
(50%-70%; rounded estimate: 50%) recovery for lenders in the event
of a payment default.
"The positive outlook reflects our view that WCG could sustain its
FOCF to debt above 3% in 2026 and thereafter if trial activity
normalizes, organic revenue grows, and the company continues to
maintain its competitive position."
WCG is expected to complete a transaction to extend the maturity on
its first-lien term loan to 2032 from 2027 and revolving credit
facility to 2030 from 2026. S&P also expects the company to divest
its electronic Clinical Outcomes Assessment (eCOA) platform and use
the proceeds of the sale to repay its $345 million second-lien term
loan.
The transaction extends WCG's maturities and reduces cash interest
expense. The company extended the maturities on its revolving
credit facility to 2030 and the first-lien term loan to 2032. It
also upsized its revolver to $300 million from $250 million. The
eCOA divestiture is expected to close in April. It will use the net
proceeds from the divestiture of about $429 million to repay its
second-lien term loan of $345 million, with the remainder amount
going toward reducing its first-lien term loan. S&P said, "We
expect the applicable margin on the new first-lien term loan
improve by 75 basis points. We forecast that at current interest
rates, the company's cash interest expense will reduce by $30
million-$35 million from the repayment of high-interest-incurring
second-lien debt and an improvement in applicable margin on the new
debt. We believe the cash flow from the improved cash interest will
be offset by the lost EBITDA due to the eCOA divestiture. We assume
the company's overall cash flows will improve due to organic
revenue and EBITDA growth."
S&P said, "We expect WCG's revenue, profitability, and cash flow
will significantly improve in 2025 and onward. While we project
revenue will decline over 7% in 2025 primarily due to the
divestiture of the eCOA business, we expect the divestiture to
benefit the company's overall profitability. Further, WCG undertook
several cost saving and efficiency measures, such as reduced
staffing and corporate footprint, consolidation of technology and
data assets, reduced reliance on external technology providers, and
renegotiation of contracts with external vendors. We expect these
will significantly improve its EBITDA going forward.
"Additionally, we expect the company's revenue to return to growth
in 2026 and onwards due to an anticipated increase in clinical
trial activity, in addition to WCG's renewed focus on sales and
marketing with enhancements in its sales enablement strategy,
improved sales leadership, and incentive plans. Thus, we expect
growing revenue and profitability to significantly improve its cash
flows. In 2025, we expect S&P Global Ratings-adjusted FOCF to debt
of about 2.4%. We forecast 2026 cash flows will be over 4.5% due to
overall improved profitability.
"We expect WCG to continue to pursue growth through acquisitions
over the coming years. From 2016-2021, WCG spent an average of over
$170 million annually on acquisitions. The company continued to
make smaller tuck-in acquisitions through 2022-2024. Given its
involvement in nearly all clinical trials in some capacity,
continued opportunities to increase acquired revenues by
cross-selling across its client base, and its financial-sponsor
ownership, we project the company will pursue more strategic
acquisitions to fuel growth.
"The positive outlook reflects our view that WCG could sustain its
FOCF to debt above 3% in 2026 and thereafter if trial activity
normalizes, organic revenue grows, and the company continues to
maintain its competitive position."
S&P could revise its outlook on WCG to stable if it does not
believe it will sustain FOCF to debt of more than 3%. This could
occur if:
-- The company cannot complete the proposed debt refinancing
transaction;
-- It adopts a more aggressive financial policy and becomes more
acquisitive;
-- It undertakes excessive shareholder-rewarding activities that
increase its leverage; or
-- It faces adverse macroeconomic headwinds.
S&P could raise its rating on WCG if it believes it will sustain
FOCF to debt above 3%. This could occur if:
-- The company successfully executes its asset sale;
-- There is an overall improvement in clinical trial activity
resulting in organic revenue growth of at least 5% over the next 12
months; and
-- WCG maintains a generally prudent financial policy.
WELLPATH HOLDINGS: Creditors Object to Executive Bonuses
--------------------------------------------------------
Randi Love of Bloomberg Law reports that the junior creditors of
bankrupt prison healthcare provider Wellpath Holdings Inc. objected
to a proposal to grant up to $4.6 million in incentive bonuses to
12 executives for meeting certain performance targets.
In a February 7, 2025 filing in the U.S. Bankruptcy Court for the
Southern District of Texas, a committee of unsecured claimholders
argued that the plan sets overly easy benchmarks that senior
management has already achieved. The committee criticized the
proposal as a "disguised retention plan" rather than a legitimate
incentive program.
About Wellpath Holdings, Inc.
Wellpath Holdings, Inc. f/k/a CCS-CMGC Holdings, Inc., is a
provider of medical and mental healthcare in jails, prisons, and
inpatient and residential treatment facilities.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 24-90533) on
November 11, 2024, with $1 billion to $10 billion in assets and
liabilities. Timothy Dragelin, chief restructuring officer and
chief financial officer, signed the petitions.
The Debtor tapped Marcus A. Helt, Esq. at McDERMOTT WILL & EMERY
LLP as bankruptcy counsel; FTI CONSULTING, INC. as financial
advisor; and LAZARD FRERES & CO. LLC and MTS PARTNERS, LP as
investment bankers.
WHICH WHICH: Asset Auction Set to Close on February 11
------------------------------------------------------
Iron Horse Auction Company is currently conducting an online
auction of Which Wich Subs' assets.
Items include: Food preps, Conveyor Ovens, meat slicer, counters,
stainless steel tables, furniture and much more.
The auction is set to close at 10:00 a.m. on Feb. 11.
The property is located at:
9623 Red Stone Dr.
Indian Land, SC 29707
Property Description
Former Which Wich Subs. The business has been operating for seven
years and recently closed.
The auction manager can be reached at:
Sonny Weeks
Tel: 704-200-3201
E-mail: Sonny@ironhorseauction.com
For more information visit:
https://www.ironhorseauction.com/auction/sub-shop-liquidation-indian-land-sc-75025/details
WHITESTONE UPTOWN: To Sell Office Property to Bradford Property
---------------------------------------------------------------
Whitestone Uptown Tower, LLC, a/k/a Pillarstone Capital REIT
Operating Partnership, will seek permission from the U.S.
Bankruptcy Court for the Northern District of Texas, Dallas
Division, at a hearing on March 3, 2025 to sell real property, free
and clear of liens, claims, and encumbrances.
The Debtor wants to sell its primary asset, a 12-story, 253,000
square-foot office tower located at 4144 North Central Expressway
in Dallas, Texas and has received a contract of sale and
reinstatement of contract of sale for the purchase of $20,500,000
from Bradford Property Company, Inc.
The Debtor has thoroughly marketed the Property for sale by hiring
a real estate broker, advertising, placing a sign on the property,
and negotiating with prospective buyers. Weitzman Management
Corporation will receive a commission of 2% of the gross sales
price if the sale closes.
About Whitestone Uptown Tower, LLC
Whitestone Uptown Tower, LLC is a Single Asset Real Estate debtor
(as defined in 11 U.S.C. Section 101(51B)).
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tex. Case No. 23-32832) on December 1,
2023. In the petition signed by Bradford Johnson, authorized
representative, the Debtor disclosed up to $50 million in both
assets and liabilities.
Judge Michelle V Larson oversees the case.
Joyce Lindauer, Esq., at Joyce W. Lindauer Attorney, PLLC,
represents the Debtor as legal counsel.
WW INTERNATIONAL: Borrows $121.3MM Under Revolving Credit Facility
------------------------------------------------------------------
WW International, Inc. disclosed in a Form 8-K Report filed with
the U.S. Securities and Exchange Commission that it borrowed
approximately $121.3 million under the senior secured revolving
credit facility pursuant to its credit agreement, dated April 13,
2021, as amended from time to time, among the Company, as borrower,
the lenders party thereto, and Bank of America, N.A., as
administrative agent and an issuing bank, which represents all of
the remaining available amount under the Revolving Credit
Facility.
As of January 31, 2025, following the funding of this borrowing,
the aggregate principal amount of borrowings under the Revolving
Credit Facility was $175 million, including approximately $3.7
million of undrawn letters of credit under the Revolving Credit
Facility. The borrowings under the Revolving Credit Facility were
incurred to provide financial flexibility and not to address near
term liquidity requirements.
WW International continues to actively evaluate its capital
structure and intend to explore transactions to strengthen its
balance sheet and increase our financial flexibility. The Company
looks forward to engaging with its lenders and bondholders in the
coming months.
About WW International
Headquartered in New York, WW International Inc. is a technology
company at the forefront of weight health, grounded in nutritional
and behavior change science. The Company is powered by its weight
loss and weight management programs, its award-winning app and its
commitment to tailoring solutions for its members to improve their
weight health, including providing medical weight management
treatment via access to clinician-prescribed weight management
medications and related support through the WeightWatchers Clinic
affiliated practices.
WW International reported a net loss of $112.25 million in 2023
following a net loss of $256.87 million in 2022. As of March 30,
2024, WW International had $654.25 million in total assets, $1.76
billion in total liabilities, and a total deficit of $1.11
million.
* * *
As reported by the TCR on Nov. 20, 2024, S&P Global Ratings lowered
the issuer credit rating on WW International Inc. to 'CCC' from
'CCC+'. The outlook is negative.
At the same time, S&P lowered the ratings on the company's senior
secured debt to 'CCC' from 'B-'. S&P also revised downward its
recovery rating on the debt to '4' from '2', indicating its
expectation for average recovery (30%-50%; rounded estimate 30%) in
the event of a payment default. This reflects the secular decline
in the traditional weight loss category as evidenced by continued
subscriber losses due to increased competition, as well as an aging
demographic with weaker demand from younger consumers and an
overall weaker brand name.
The negative outlook reflects the potential for a debt
restructuring, including potentially a bankruptcy filing, over the
subsequent 12 months.
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
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Nothing in the TCR constitutes an offer or solicitation to buy or
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Each Tuesday edition of the TCR contains a list of companies with
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liabilities delivered to nation's bankruptcy courts. The list
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then-ending.
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